De Jure And De Facto Institutions – Disentangling The Interrelationships, 2016 University of Warsaw
De Jure And De Facto Institutions – Disentangling The Interrelationships, Jacek Lewkowicz, Katarzyna Metelska-Szaniawska
The Latin American and Iberian Journal of Law and Economics
In this paper we contribute to the debate on the nature of institutions and their economic effects by extending the focus to the de jure – de facto institutional distinction. Firstly, we define and conceptualize de facto institutions, as well as elaborate on their place in the broad institutional system and identification. Then we investigate the possible interrelationships between de facto and de jure institutions. Finally, we make a link between these interrelationships and economic outcomes. In this way the paper fills an underexploited niche in institutional research, which is a major background for law and economics.
En este trabajo ...
Endogenous Differential Information, 2016 University of Paris 1 Panthéon-Sorbonne
Endogenous Differential Information, Sebastián Cea-Echenique, Carlos Hervés-Beloso, Juan Pablo Torres-Martínez
Juan Pablo Torres-Martínez
16-31 All-Pay Auctions With Ties, 2016 Institute for Defense Analyses
16-31 All-Pay Auctions With Ties, Alan Gelder, Dan Kovenock, Brian Roberson
ESI Working Papers
We study the two-player, complete information all-pay auction in which a tie ensues if neither player outbids the other by more than a given amount. In the event of a tie, each player receives an identical fraction of the winning prize. Thus players engage in two margins of competition: losing versus tying, and tying versus winning. Two pertinent parameters are the margin required for victory and the value of tying relative to winning. We fully characterize the set of Nash equilibria for the entire parameter space. For much of the parameter space, there is a unique Nash equilibrium which is ...
Welfare Maximization, Pricing, And Allocation With A Product Performance Or Environmental Quality Standard: Illustration For The Gasoline And Additives Market, Paul W. Gallagher, Hosein Shapouri, Jeffrey Price
Programming models approximate market prices and quantities when regulations constrain firm choices, because market outcomes result when welfare is appropriately defined and includes performance and environmental constraints. This study discusses market operation in quality-constrained sectors, like gasoline and additives; processors expand output until marginal processing cost equals the processing margin between product revenues and raw material costs; retailers who buy gasoline and additives from processors and sell blended retail gasoline price sales at a marginal cost that includes the blended input value plus adjustments for values of constrained attributes; and market supplies and demands of measurable attributes like octane are ...
Scale, Organization, And Profitability Of Ethanol Processing, 2016 Iowa State University
Scale, Organization, And Profitability Of Ethanol Processing, Paul Gallagher, Hosein Shapouri, Heather Brubaker
We analyze the appropriate size and implied profitability of a representative ethanol processing firm. An analysis based on current processing technology and costs with typical conditions in Iowa product and input markets is useful; because unit production costs have declined 30% in current dollars over the last 15 years; and because discovering a suitable size for processing facilities has been an important part of the cost-reducing process. We apply theoretical plant size rules for a conventional processing business, an integrated producer/processor enterprise, and a processing cooperative. We also introduce a spatial dimension for the corn input market, because ethanol ...
Growing Biomass Fuel Industry, Declining Local Forage Demands, And Changing Greenhouse Gas Emissions From Us Agriculture: A Case Study, Paul W. Gallagher, Jeremiah Richey
This paper investigates the effect of a biomass crop introduction in a local market where field crops; cattle forage and biomass crops compete for the agricultural resources and determine land use. A simulation study for a State in the US (Minnesota) with extensive and diverse agricultural resources that could also support a biomass industry is reported. Local market impact on prices and land use is summarized. A local biofuel industry with 1.0 billion gallon capacity can transform declining local land values to stable or moderately increasing land values; partly because secular declines in cattle forage can be replaced with ...
An Economic Analysis Of Expenditures On State Experiment Station Research, 2016 Iowa State University
An Economic Analysis Of Expenditures On State Experiment Station Research, Wallace E. Huffman, John A. Miranowski
The last decade can be characterized by a growing skepticism of the agricultural research establishment. Some have argued that agricultural researchers have been captured by the interests of large farmers or by large private farm input supply firms. Others have argued that the agricultural research establishment has been unresponsive to human resource, environmental, and income distributional issues. Some of these concerns have been expressed in recent changes made in the type of federal support for agricultural research.
Comparable Worth And The Structure Of Earnings: The Iowa Case, 2016 Iowa State University
Comparable Worth And The Structure Of Earnings: The Iowa Case, Peter F. Orazem, J. Peter Mattila
Comparable worth pay plans have been implemented in several states since the early 1980s. To our knowledge, however, no study exists of the actual impact of such plans on the pay structure of state government. We examine the case of comparable worth in Iowa, both as proposed in 1984 and as actually implemented (in compromise form) in 1985. In particular, we identify the relative winners and losers from comparable worth by analyzing the impact on earnings for men, women, minorities, unionized employees, and particular occupational groups, such as supervisors and professionals. In addition, we are able to determine whether the ...
The Gold Standard And The Transmission Of Business Cycles, 1833-1932, 2016 Iowa State University
The Gold Standard And The Transmission Of Business Cycles, 1833-1932, Wallace E. Huffman, James R. Lothian
Descriptions of the gold standard have stressed two very different aspects of that monetary system. Modern observers, concerned with high and rising rates of inflation, have written enthusiastically and often nostalgically of the longer-term price stability that existed during the gold standard era. Many other economists during the past century and a half, however, have rendered a less kindly judgment, emphasizing instead the frequent and sometimes severe business contractions that characterized the period as well as the substantial shorter- and intermediate-term swings in the price level.
16-30 Asymmetric Social Norms, 2016 Chapman University
16-30 Asymmetric Social Norms, Gabriele Camera, Alessandro Gioffré
ESI Working Papers
Studies of cooperation in infinitely repeated matching games focus on homogeneous economies, where full cooperation is efficient and any defection is collectively sanctioned. Here we study heterogeneous economies where occasional defections are part of efficient play, and show how to support those outcomes through contagious punishments.
The Demand For Agricultural Research By State Governments, 2016 Iowa State University
The Demand For Agricultural Research By State Governments, Jyoti Khanna, Wallace E. Huffman, Todd Sandler
Public agricultural research in the United States is conducted by state agricultural experiment stations (SAES) and by the research agencies of the USDA. Both have research activities in every state. A vast amount of research and experiments has shown that the performance of plants and to a lesser extent animals, in which new technologies are frequently embodied, is altered by local geoclimatic conditions that differ within and between states. Basic research and livestock research to some extent lead to new knowledge or technologies that spill widely across state boundaries. Thus, public agricultural research produces knowledge that is both state specific ...
Understanding Post-War Changes In U.S. Household Production: A Full-Income Demand-System Perspective, 2016 Iowa State University
Understanding Post-War Changes In U.S. Household Production: A Full-Income Demand-System Perspective, Wallace Huffman
This paper examines the changing structure of U.S. household production over the post-World War II period. We apply production theory in order to define a new set of inputs for U.S. households and use newly constructed data so as to examine with the aid of a relatively simple complete household aggregate demand system. The goal is to extent our understanding of the changing structure of the U.S. household sector over the post-World War II period, including the demand for inputs of women’s and men’s housework or unpaid household labor and seven other aggregate input categories ...
Implications Of Agency Theory For Optimal Land Tenure Contracts, 2016 Iowa State University
Implications Of Agency Theory For Optimal Land Tenure Contracts, Wallace E. Huffman, Richard E. Just
For more than 2 centuries, economists have been interested in agricultural contracts, especially landowner-tenant contracts. The early work by Marshall (1890) argued that share tenancy was inefficient relative to owner cultivation and should not be expected to persist when other arrangements are available. Later D. Gale Johnson (1950) and Cheung (1969) argued that, if landowners can costlessly monitor and enforce tenants’ effort, then share tenancy can compete effectively with owner cultivation or cash rental. Subsequently, Stiglitz (1974) and Newberry and Stiglitz (1979) introduced principal-agent models in the more realistic case where monitoring is costly to study optimal landowner-tenant risk sharing ...
Should The United States Regulate Mandatory Labeling For Genetically Modified Foods?, 2016 Iowa State University
Should The United States Regulate Mandatory Labeling For Genetically Modified Foods?, Wallace Huffman, Matthew Rousu, Jason F. Shogren, Abebayehu Tegene
Public debate continues over whether the United States should regulate genetically modified (GM) foods by imposing a mandatory labeling policy. This paper develops a model that shows that a voluntary GM- labeling policy results in higher welfare than a regulated mandatory GMlabeling policy, if consumers can accurately read the signals in each market. We then develop an experiment that shows consumers behave as if they can accurately identify signals for GM foods. Our model and results support the perspective that the United States has been prudent in fending off calls for regulations demanding a mandatory GM- labeling policy.
Aggregate Private R&D Investments In Agriculture: The Role Of Incentives, Public Policies, And Institutions, 2016 University Politecnica de Catalunya
Aggregate Private R&D Investments In Agriculture: The Role Of Incentives, Public Policies, And Institutions, Oscar Alfranca, Wallace E. Huffman
Most observers have come to agree that Research and Development (R&D) is fundamental to the innovations that take place in advanced countries and that drive growth and development around the world. This is equally true for agricultural R&D, which has substantially increased the supply of food and fiber over time. Given the evident importance of agricultural R&D, we look at the forces that determine the amount of privately funded research in this vital sector using a sample of European countries. We construct indicators of private incentives, property rights, and publicly funded research in the various countries. Private research has grown with unusual speed in recent years and offers the prospect of advances in the quality of agricultural goods as well as reductions in their costs. Furthermore, considerable interest exists in knowing how changes in private and public research expenditures are related empirically; for example, are they complements or substitutes?1 If they are substitutes, then additional private agricultural R&D expenditures may not result in larger total agricultural research expenditures.
Information, Competition, And The Quality Of Charities, 2016 Texas A & M University - College Station
Information, Competition, And The Quality Of Charities, Silvana Krasteva, Huseyin Yildirim
Unequal Exchange In International Trade: A General Model, 2016 Università degli Studi di Urbino
Unequal Exchange In International Trade: A General Model, Andrea Ricci
16-29 Using Experiments To Compare The Predictive Power Of Models Of Multilateral Negotiations, 2016 Chapman University
16-29 Using Experiments To Compare The Predictive Power Of Models Of Multilateral Negotiations, Cary Deck, Charles J. Thomas
ESI Working Papers
We conduct unstructured negotiations in a laboratory experiment designed to empirically assess the predictive power of three approaches to modeling the multilateral negotiations observed in diverse strategic settings. For concreteness we consider two sellers negotiating with a buyer who wants to make only one trade, with the modeling approaches distinguished by whether the buyer negotiates with the sellers sequentially, simultaneously, or in a “take-it-or-leave-it” fashion. Our experiment features two scenarios within which the three approaches have observationally distinct predictions: a differentiated scenario with one high-surplus and one low-surplus seller, and a homogeneous scenario with identical high-surplus sellers. In both scenarios ...
Walras' Law, Pareto Efficiency, And Intermediation In Overlapping Generations Economies, 2016 Iowa State University
Walras' Law, Pareto Efficiency, And Intermediation In Overlapping Generations Economies, Mark Pingle, Leigh Tesfatsion
Aiyagari (1992) demonstrates a connection between the failure of Walras' Law and nonoptimal equilibria for a version of the pure-exchange overlapping generations (OG) econ omy first studied by Samuelson (1958). The significant implication ofWalras' Law in finite economies, given all prices are positive and all consumers are locally nonsatiated, is that an excess supply (in value terms) cannot exist for some subset of goods without an excess demand (in value terms) existing forsome othersubset ofgoods. Aiyagari defines the failure of Walras' Law as a situation in which this implication of Walras' Law does not hold. His basic and interesting result ...
Teaching Agent-Based Computational Economics To Graduate Students, 2016 Iowa State University
Teaching Agent-Based Computational Economics To Graduate Students, Leigh Tesfatsion
Agent-based computational economics (ACE) is roughly defined as the computational study of economies modeled as evolving decentralized systems of autonomous interacting agents. A key focus of ACE research is understanding how global regularities' arise from the-bottom^up, through the repeated local interactions-of autonomous agents channeled through socioeconomic institutions, rather than from top down coordination mechanisms such as imposed market clearing constraints or an assumption of single representative agents. This paper discusses how ACE materials have been.introduced into graduate-level courses in macroeconomic theory over the past several years, using an ACE labor market framework for concrete illustration...