Off-Farm Work Decisions Of Husbands And Wives: Joint Decision Making, 2016 Iowa State University
Off-Farm Work Decisions Of Husbands And Wives: Joint Decision Making, Wallace E. Huffman, Mark D. Lange
Theoretical and econometric models are developed to examine joint wage-labor participation and hours decisions of a husband and wife in farm households. The econometric model is multiple equation and recursive. The specification of the off-farm labor supply equation of the husband (wife) depends on whether his (her) wife (husband) does or does not work off-farm, and this structure is endogenous. The model is fitted to data for Iowa farm households. The main conclusion is that the off-farm labor supply equation of a married individ- ual differs significantly depending on whether his or her spouse also works for a wage.
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
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...
Market Power And Efficiency In A Computational Electricity Market With Discriminatory Double-Auction Pricing, 2016 Iowa State University
Market Power And Efficiency In A Computational Electricity Market With Discriminatory Double-Auction Pricing, James Nicolaisen, Valentin Petrov, Leigh Tesfatsion
This study reports experimental market power and efficiency outcomes for a computational wholesale electricity market operating In the short run under systematically varied concentration and capacity conditions. The pricing of electricity is determined by means of a clearinghouse double auction with discriminator}- midpoint pricing. Buyers and sellers use a modified Roth-Erev individual reinforcement learning algorithm to determine their price and quantity offers in each auction round. It is shown that high market efficiency is generally attained, and that market microstructure is strongly predictive for the relative market power of buyers and sellers independently of the values set for the reinforcement ...
Human Capital Investment And The Locally Rational Child, 2016 Iowa State University
Human Capital Investment And The Locally Rational Child, Peter F. Orazem, Leigh Tesfatsion
This study analyzes an overlapping generations economy with multiple family dynasties in which the abihty levels of children are random and unobservable. Each parent allocates his income between consumption and investment in the education of his child. Each child, in turn, decides how much effort toexert in school on the basis of his perceived marginal returns to schooling, a perception shaped in part by the child's perception ofthe marginal returns to "schooling attained by his parent. The income tax policies available to government range from hbertarian (no redistribution) to perfectly egalitarian (equalization of after-tax family incomes in each period ...
How Economists Can Get Alife, 2016 Iowa State University
How Economists Can Get Alife, Leigh Tesfatsion
What, is "artificial life," or alife for short? And why should economists cafe?" • -As-detailed in the entertaining, monographs by Levy (1992) and =Sigmund (1993), the roots of-alife go at least as far back as the work-of.John von-Neumann, in.the nineteen forties on self-replicating automata.. The establishment of.alife as a distinct field of inquiry, however, must be traced to the first alife conference,lOrganized in 1987iby'Chris Langton at the Los Alamos NationalrLaboratory; see Langton (1989). •
Active Intermediation In A Monetary Overlapping Generations Economy, 2016 Iowa State University
Active Intermediation In A Monetary Overlapping Generations Economy, Mark Pingle, Leigh Tesfatsion
In Pingle and Tesfatsion (1991) we question whether the conventional definition of a competitive equilibrium, as applied to an overlapping generations economy, is truly satisfactory. The conventional definition was developed for a standard Walrasian economy with a finite number of consumers and goods whereas the overlapping generations economy necessarily contains an infinite number of consumers and goods. As noted by Shell (1971), the presence of this double infinity in overlapping generations economies introduces a new trading opportunity: namely, the possibility of incurring and rolling over a debt forever as time proceeds into the infinite future. The problem with applying the ...
Further Remarks On Walras' Law And Nonoptimal Equilibria, 2016 Iowa State University
Further Remarks On Walras' Law And Nonoptimal Equilibria, Mark Pingle, Leigh Tesfatsion
In a recent paper, Aiyagari (1992) demonstrates a connection between the failure of Walras' Law and nonoptimal equihbria in overlapping generations economies. The significant implication of Walras' 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 for some other subset of goods. 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 is to show that ...
Active Intermediation In Overlapping Generations Economies With Production And Unsecured Debt, 2016 Iowa State University
Active Intermediation In Overlapping Generations Economies With Production And Unsecured Debt, Mark Pingle, Leigh Tesfatsion
It is well known that the first welfare theorem fails for the pure exchange^overlapping generations economy studied by Samuelson (1958) and for the private production overlapping generations economy studied by Diamond (1965). Tirole (1985) combines and extends the Samuelson and Diamond frameworks by permitting both unsecured debt and private pro duction and shows that the first welfare theorem stillfails to hold. This paper shows that the reason for this failure is that intermediation is niodelled as a purely passive coordination ac tivity implemented by a Walrasian Auctioneer.
A C++ Platform For The Evolution Of Trade Networks, 2016 Iowa State University
A C++ Platform For The Evolution Of Trade Networks, David Mcfadzean, Leigh Tesfatsion
This paper presents a general C++ platform for the implementation of a trade network game (TNG) that combines evolutionary game play with preferential partner selection. In the TNG, successive generations of resource constrained traders choose and refuse trade partners on the basis of continually updated expected payoffs^ engage in risky trades modeled as two-person games, and evolve-their trade strategies-over time...
A Multi-Criteria Approach To Model Specification And Estimation, 2016 Iowa State University
A Multi-Criteria Approach To Model Specification And Estimation, Robert Kalaba, Leigh Tesfatsion
Why have multicriteria decision making (MCDM) techniques played only a minor role in econometric and statistical methodology to date? On the surface, this minor role is surprising. Every postulated theoretical relation is almost surely false. A cross-sectional function for household demand may be misspecified as linear rather than nonlinear.
Student And Teacher Attendance: The Role Of Shared Goods In Reducing Absenteeism, 2016 Aarhus University
Student And Teacher Attendance: The Role Of Shared Goods In Reducing Absenteeism, Ritwik Banerjee, Elizabeth M. King, Peter F. Orazem, Elizabeth M. Paterno
A theoretical model is advanced that demonstrates that, if teacher and student attendance generate a shared good, then teacher and student attendance will be mutually reinforcing. Using data from the Northwest Frontier Province of Pakistan, empirical evidence supporting that proposition is advanced. Controlling for the endogeneity of teacher and student attendance, the most powerful factor raising teacher attendance is the attendance of the children in the school, and the most important factor influencing child attendance is the presence of the teacher. The results suggest that one important avenue to be explored in developing policies to reduce teacher absenteeism is to ...
Lack Of Education, 2016 Iowa State University
Lack Of Education, Peter F. Orazem
This chapter reviews the stylized facts regarding the distribution of human capital investments and the returns to those investments in developing countries. It then examines recent evidence regarding which policies can induce increased human capital investments in the most efficient manner, using estimated benefits and costs as a guide. Supplyside strategies such as increasing school access or improving school quality are more costly, have less certain benefits, and have a weak record of success. Demand-side interventions such as school sited health programs, vouchers, and conditional transfers have a greater likelihood of improving literacy in the most cost-effective manner.