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Economics

1984

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A Mean-Variance Approach To Fundamental Valuations, James Tobin Oct 1984

A Mean-Variance Approach To Fundamental Valuations, James Tobin

Cowles Foundation Discussion Papers

No abstract provided.


Strategic Market Games: A Dynamic Programming Application To Money, Banking And Insurance, Martin Shubik Oct 1984

Strategic Market Games: A Dynamic Programming Application To Money, Banking And Insurance, Martin Shubik

Cowles Foundation Discussion Papers

A series of models (kept simple in order to stress the structure of the models and the nature of the questions) are described and problems are posed pertaining to a dynamic economy with various possibilities for the issuance of fiat money, credit and insurance.


Optimal Cartel Equilibria With Imperfect Monitoring, Dilip Abreu, David G. Pearce, Ennio Stacchetti Oct 1984

Optimal Cartel Equilibria With Imperfect Monitoring, Dilip Abreu, David G. Pearce, Ennio Stacchetti

Cowles Foundation Discussion Papers

There exist optimal symmetric equilibria in the Green-Porter model [5, 8] having an elementary intertemporal structure. Such an equilibrium is described entirely by two subsets of price space and two quantities, the only production levels used by firms in any contingency. The central technique employed in the analysis is the reduction of the repeated game to a family of static games.


Expansionary Government Policy In An Economy With Commodity And Labor, Russell Cooper Oct 1984

Expansionary Government Policy In An Economy With Commodity And Labor, Russell Cooper

Cowles Foundation Discussion Papers

This paper considers a model in which all exchange is mediated by contracts. The analysis explores the indexation of labor and commodities contracts to observable variations in government spending financed by money creation. In one of the many equilibria, prices and nominal wages are shown to be independent of current money shocks. Except in the extreme equilibrium exhibiting full indexation, policy shocks will generate correlated movements in output and employment over time. The analysis thus suggests an inverse relationship between indexation of contracts and persistence of policy effects.


Neighborhood Systems For Production Sets With Indivisibilities, Herbert E. Scarf Oct 1984

Neighborhood Systems For Production Sets With Indivisibilities, Herbert E. Scarf

Cowles Foundation Discussion Papers

No abstract provided.


Cross Media Transfers Of Hazardous Wastes, Gilbert E. Metcalf, Daniel J. Dudek, Cleve E. Willis Sep 1984

Cross Media Transfers Of Hazardous Wastes, Gilbert E. Metcalf, Daniel J. Dudek, Cleve E. Willis

Gilbert E. Metcalf

No abstract provided.


Recent Trends In South Dakota's Farmland Market, Larry Janssen Sep 1984

Recent Trends In South Dakota's Farmland Market, Larry Janssen

Economics Commentator

No abstract provided.


Developments In The Financial System During The Third Quarter Of 1984, Central Bank Of Nigeria Cbn Sep 1984

Developments In The Financial System During The Third Quarter Of 1984, Central Bank Of Nigeria Cbn

Economic and Financial Review

This article highlights the developments in the financial system of Nigeria during the third quarter of 1984. It covers the monetary and credit developments, commercial banking and merchant banking developments in the country during the period under review.


Statistical Section (September 1984), Central Bank Of Nigeria Cbn Sep 1984

Statistical Section (September 1984), Central Bank Of Nigeria Cbn

Economic and Financial Review

This is the statistical presentations of the developments in the Nigerian economy during the period under review.


An Economist's Look At The 1984 Elections--And Beyond, Murray L. Weidenbaum Sep 1984

An Economist's Look At The 1984 Elections--And Beyond, Murray L. Weidenbaum

Murray Weidenbaum Publications

Depending on the winner of the 1984 presidential election, the author shows what the policies of a Reagan Administration or Mondale Administration would be regarding deficits, tax reform, regulation, antitrust laws, and protectionism.


Developments In World Commodity Markets With Respect To Nigeria's Agricultural Commodities During The Third Quarter Of 1984, Central Bank Of Nigeria Cbn Sep 1984

Developments In World Commodity Markets With Respect To Nigeria's Agricultural Commodities During The Third Quarter Of 1984, Central Bank Of Nigeria Cbn

Economic and Financial Review

This is a report on the developments in Nigeria's agricultural commodities in the third quarter of 1984. It covers beverages, vegetable oil and oil seeds, natural rubber, grains and sugar etc. it also has a statistical presentation of data.


Foreign Exchange Flows Through The Central Bank During The Third Quarter Of 1984, Central Bank Of Nigeria Cbn Sep 1984

Foreign Exchange Flows Through The Central Bank During The Third Quarter Of 1984, Central Bank Of Nigeria Cbn

Economic and Financial Review

This is a report of the flow of foreign exchange in and out during the third quarter of 1984. Foreign exchange transactions during the third quarter of 1984 resulted in a net outflow of N114 .0 million in contrast to the net inflows of N289.4 million and N11.9 million recorded during the preceding quarter and the corresponding period of 1983, respectively.


Testing For Serial Correlation And Unit Roots Using A Computer Function Routine Based On Era's, Peter C.B. Phillips, Peter C. Reiss Sep 1984

Testing For Serial Correlation And Unit Roots Using A Computer Function Routine Based On Era's, Peter C.B. Phillips, Peter C. Reiss

Cowles Foundation Discussion Papers

This paper initiates a research program to provide computer function routines that can be used to deliver critical values or significance levels for statistical tests. These routines are easily integrated into existing econometric software and can be made available on a user call basis. The mathematical formulae underlying these approximants belong to the family of extended rational approximants (ERA’s) introduced in [15]. The first part of this paper extends the algebraic theory of ERA’s to distribution function approximation. Composite functional approximants are also developed to treat the parameter multidimensionally that is common in practical application. The second part of the …


An Everywhere Convergent Series Representation Of The Distribution Of Hotelling's Generalized T 2^0, Peter C.B. Phillips Sep 1984

An Everywhere Convergent Series Representation Of The Distribution Of Hotelling's Generalized T 2^0, Peter C.B. Phillips

Cowles Foundation Discussion Papers

A new series representation of the exact distribution of Hotelling’s generalized T 0 2 statistic is obtained. Unlike earlier work, the series representation given here is everywhere convergent. Explicit formulae are given for both the null and the noncentral distributions. Earlier results by Constantine [1], which are convergent on the interval [0,1), are also derived quite simply from our formulae.


Trends, Random Walks, And Tests Of The Permanent Income Hypothesis, N. Gregory Mankiw, Matthew D. Shapiro Sep 1984

Trends, Random Walks, And Tests Of The Permanent Income Hypothesis, N. Gregory Mankiw, Matthew D. Shapiro

Cowles Foundation Discussion Papers

Recent studies find that consumption is excessively sensitive to income. These studies assume that income is stationary around a deterministic trend. The data, however, do not reject the hypothesis that disposable income is a random walk with drift. If income is indeed a random walk, then the standard testing procedure is greatly biased toward finding excess sensitivity. Moreover, if income is borderline stationary, this procedure is also seriously biased.


Limitations Of Monetary (And Fiscal) Policy In An Age Of Financial Instability, Hyman P. Minsky Ph.D. Sep 1984

Limitations Of Monetary (And Fiscal) Policy In An Age Of Financial Instability, Hyman P. Minsky Ph.D.

Hyman P. Minsky Archive

Prepared for the Conference on Streams of Economic Thought, held in Trieste, Udine, Italy, 1-3 September, 1984. The main paper is the published work, the second paper here is the original with Minsky's extensive editorial rewritings.


The Exact Distribution Of The Wald Statistic, Peter C.B. Phillips Sep 1984

The Exact Distribution Of The Wald Statistic, Peter C.B. Phillips

Cowles Foundation Discussion Papers

This paper derives the exact distribution of the Wald statistic for testing general linear restrictions on the coefficients in the multivariate linear model. This generalizes all previously known results including those for the standard F statistic in linear regression, for Hotelling’s T 2 test and for Hotelling’s generalized T 0 2 test. Conventional classical assumptions of normally distributed errors and nonrandom exogenous variables are employed.


An Everywhere Convergent Series Representation Of The Distribution Of Hotellings Generalized T 2^0, Peter C.B. Phillips Sep 1984

An Everywhere Convergent Series Representation Of The Distribution Of Hotellings Generalized T 2^0, Peter C.B. Phillips

Cowles Foundation Discussion Papers

A new series representation of the exact distribution of Hotelling’s generalized T 0 2 statistic is found which is everywhere convergent. Earlier results by Constantine which are convergent on the interval [0,1) are also derived from the formulae given here. The new results are made possible by the use of a matrix operator calculus developed by the author.


Farm Policy Decisions--What Do South Dakota Farmers Think?, Larry Janssen, Mark Edelman Aug 1984

Farm Policy Decisions--What Do South Dakota Farmers Think?, Larry Janssen, Mark Edelman

Economics Commentator

No abstract provided.


I And First And Second Scenarios (A Sensitivity Analysis), Paul Bracken, Moshe Haviv, Martin Shubik, Ulrich Tulowitzki Aug 1984

I And First And Second Scenarios (A Sensitivity Analysis), Paul Bracken, Moshe Haviv, Martin Shubik, Ulrich Tulowitzki

Cowles Foundation Discussion Papers

No abstract provided.


The Many Approaches To The Study Of Monopolistic Competition, Martin Shubik Aug 1984

The Many Approaches To The Study Of Monopolistic Competition, Martin Shubik

Cowles Foundation Discussion Papers

It is suggested here that there are many highly different purposes for the study and application of theories of oligopolistic competition, monopolistic competition, and allied topics. This paper sets the different purposes and questions in context, then makes criticisms and suggestions as to where to go from here.


Plausible Outcomes For Games In Strategic Form, Martin Shubik Aug 1984

Plausible Outcomes For Games In Strategic Form, Martin Shubik

Cowles Foundation Discussion Papers

This is the first projected series of papers on solutions to games in matrix and extensive form.


The Use Of Expected Future Variables In Macroeconometric Models, Ray C. Fair Aug 1984

The Use Of Expected Future Variables In Macroeconometric Models, Ray C. Fair

Cowles Foundation Discussion Papers

A more sophisticated expectational hypothesis than is traditionally used in the specification of macroeconometric models is tested in this paper. Economic agents are assumed to use a vector of variables Z t in forming their expectations for periods t + 1 and beyond. These expectations may or may not be rational in the Muth sense. The results provide some evidence in favor of the more sophisticated hypothesis, but they are not strong enough to allow much weight to be put on the hypothesis as yet. The evidence in favor of the hypothesis is strongest for households’ response to future wages …


Stock Prices And Social Dynamics, Robert J. Shiller Aug 1984

Stock Prices And Social Dynamics, Robert J. Shiller

Cowles Foundation Discussion Papers

The empirical evidence that is widely interpreted as supporting the efficient markets theory in finance actually does not rule out the possibility that changing fashions or fads among investors have an important influence on prices in financial markets. A model of the impact of such fashions on prices is proposed and used in an exploratory data analysis of the aggregate United States Stock Market in the 20th century.


General Equilibrium With Wage Rigidities: An Application To Belgium, Victor Ginsburgh, Ludo Van Der Heyden Aug 1984

General Equilibrium With Wage Rigidities: An Application To Belgium, Victor Ginsburgh, Ludo Van Der Heyden

Cowles Foundation Discussion Papers

This paper concerns an application to the Belgian economy of general equilibrium analysis in the presence of downward real wage rigidities. The model aims at explaining the short-run impact of recent income and exchange policies upon employment in Belgium. Mathematical programming techniques are used to compute equilibria.


Product Warranties And Double Moral Hazard, Russell Cooper, Thomas W. Ross Aug 1984

Product Warranties And Double Moral Hazard, Russell Cooper, Thomas W. Ross

Cowles Foundation Discussion Papers

This paper explores a model of warranties in which moral hazard problems play a key role. The goal is to understand the important characteristics of warranties including their provision of incomplete insurance and the relationship between product quality and coverage. We analyze a model in which buyers and sellers take actions which affect a product’s performance. Since these actions are not cooperatively determined, an incentives problem arises. We characterize the optimal warranty contract and undertake comparative statics to determine the predicted correlation of warranty coverage and product quality.


Empirical Tests Of The Rationality Of Economic Forecasters: A Fixed Horizons Approach, William D. Nordhaus, Steven N. Durlauf Aug 1984

Empirical Tests Of The Rationality Of Economic Forecasters: A Fixed Horizons Approach, William D. Nordhaus, Steven N. Durlauf

Cowles Foundation Discussion Papers

No abstract provided.


Empirical Tests Of The Rationality Of Economic Forecasters: A Fixed Horizons Approach, William D. Nordhaus, Steven N. Durlauf Aug 1984

Empirical Tests Of The Rationality Of Economic Forecasters: A Fixed Horizons Approach, William D. Nordhaus, Steven N. Durlauf

Cowles Foundation Discussion Papers

This paper examines the behavior of 4 major forecasters and the forecast consensus. We employ a new technique of “Fixed Horizon” models. This technique analyzes the sequence of adjustments of a series of forecasts of the same event. We first demonstrate that these forecast adjustment sequences should fluctuate randomly under rationality. We then examine approximately 1200 forecast adjustments over the 1978-1982 period to examine the statistical properties of forecast adjustments. The evidence clearly demonstrates that there are marked and significant elements of statistical rationality for these major forecasters. Information shocks are processed slowly. The pattern of adjustments is consistent with …


Stock Prices And Social Dynamics, Robert J. Shiller Aug 1984

Stock Prices And Social Dynamics, Robert J. Shiller

Cowles Foundation Discussion Papers

No abstract provided.


The Way Out Of The Debt Crisis, Hyman P. Minsky Ph.D. Aug 1984

The Way Out Of The Debt Crisis, Hyman P. Minsky Ph.D.

Hyman P. Minsky Archive

The Philadelphia Inquirer, Wed. Aug. 1, 1984, p. 13-A, Op-ed Page.