Digital Commons Network^™

On The Internationalization Of Portfolios, William C. Brainard, James Tobin

Cowles Foundation Discussion Papers

Portfolio theory has been an important component of open economy macroeconomic models. In those models, it is essential to distinguish among several categories of assets, both foreign and domestic, and to specify the demands and supplies. This framework has become increasingly relevant. Movements of capital across regional and national boundaries, and across currencies, have exploded in volume, thanks to the dismantling of currency and exchange controls and other financial regulations and to revolutionary economies in technologies of communication and transactions. The globalization of financial markets was stimulated by the floating exchange rate regime established in 1973.

English Translation, Yale University Press, James Tobin

Cowles Foundation Discussion Papers

Eduard Marz’s book was first published in German in 1983. I have read only his English translation, which he had completed with preliminary revisions, though not alas with final polishing, before his death in 1987. The book illuminates for us who knew him in America the intellectual and personal background of this fascinating immigrant. And not just for us, of course. World events and intellectual developments over the past two decades have heightened interest in Schumpeter not only among economists, but also among our social scientists and political philosophers. Indeed many people of all ages and all walks of life …

Classification Of Two-Person Ordinal Bimatrix Games, Imre Bárány, Jon Lee, Martin Shubik

Cowles Foundation Discussion Papers

The set of possible outcomes of a strongly ordinal bimatrix game is studied by imbedding each pair of possible payoffs as a point on the standard two-dimensional integral lattice. In particular, we count the number of different Pareto optimal sets of each cardinality; we establish asymptotic bounds for the number of different convex hulls of the point sets, for the average shape of the set of points dominated by the Pareto optimal set, and for the average shape of the convex hull of the point set. We also indicate the effect of individual rationality considerations on our results. As most …

A Reexamination Of The Consumption Function Using Frequency Domain Regressors, Dean Corbae, Sam Ouliaris, Peter C.B. Phillips

Cowles Foundation Discussion Papers

This paper reexamines the permanent income hypothesis (PIH) in the frequency domain. Using a simple model, we demonstrate that the PIH implies the marginal propensity to consume (MPC) out of zero frequency income is unity. The PIH also implies that the MPC out of transitory (or high frequency) income is smaller than the long-run MPC. The paper employs a systems spectral regression procedure to test the PIH that accommodates stochastic trends in the consumption and income series as well as the joint dependence in these series. Monte Carlo simulations suggest that single equation techniques can produce inefficient tests of the …

Unit Roots, Peter C.B. Phillips

Cowles Foundation Discussion Papers

Nonstationarity is certainly one of the most dominant and enduring characteristics of macroeconomic and financial time series. It therefore seems appropriate that this feature of the data be seriously addressed both in econometric methodology and in empirical practice. However, until recently this has not been the case. Before 1980, it was standard empirical practice in econometrics to treat observed trends as simple deterministic functions of time. Nelson-Plosser (1982) challenged this practice and showed that observed trends are better modeled if one allows for stochastic trends. Since their work there has been a continuing reappraisal of trend behavior in economic methods …

Price Flexibility And Output Stability: An Old Keynesian View, James Tobin

Cowles Foundation Discussion Papers

The central macroeconomic issue is the same as ever. How reliable are automatic market adjustments in maintaining full employment equilibrium in the face of aggregate demand shocks? Many modern theorists assume that nominal prices, including wages, jump instantaneously to keep supply and demand equal in all markets. No excess supply, no involuntary unemployment, can ever arise. However, since actual price adjustments take real time, greater flexibility can be destabilizing. “Real balance” effects are overrated, and the demand effects of nominal price changes are perverse. Activist macro policies are necessary, as Keynes argued, even though nominal prices are far from rigid.

A Bayesian Analysis Of Trend Determination In Economic Time Series, Eric Zivot, Peter C.B. Phillips

Cowles Foundation Discussion Papers

In this paper we provide a comprehensive Bayesian posterior analysis of trend determination in general autoregressive models. Multiple lag autoregressive models with fitted drifts and time trends as well as models that allow for certain types of structural change in the deterministic components are considered. We utilize a modified information matrix-based prior that accommodates stochastic nonstationarity, takes into account the interactions between long-run and short-run dynamics and controls the degree of stochastic nonstationarity permitted. We derive analytic posterior densities for all of the trend determining parameters via the Laplace approximation to multivariate integrals. We also address the sampling properties of …

The Long-Run Australian Consumption Function Reexamined: An Empirical Exercise In Bayesian Influence, Peter C.B. Phillips

Cowles Foundation Discussion Papers

This paper reports an empirical application of new Baynesian methodology to Australian data on consumption, income, liquid assets and inflation. The methods involve the use of objective model based reference priors and objective posterior odds test criteria. The paper provides an overview of this methodology, which is based on recent work by the author (1991) and joint work with Werner Ploberger (1991) and Eric Zivot (1991). The empirical application involves tests of nonstationarity and cointegration in the data and various long-run model specifications are studied in detail. Bayesian empirical results are presented alongside well-known classical tests and are shown to …

Roemer's "General" Theory Of Exploitation Is A Special Case: The Limits Of Walrasian Marxism, James Devine, Gary Dymski

Economics Faculty Works

In a series of recent writings, John Roemer (1982a, 1982b, 1985, 1988) has made a provocative claim: exploitation and class are merely second-order concepts within Marxian theory, because both phenomena derive directly from differential ownership of productive assets (DOPA); indeed, exploitation remains a consistent index of economic injustice only if a “property relations” conception of exploitation replaces the common “labor-value” view. In sum, property relations, not the labor exchange, the labor proces, labor values, or even capitalist accumlation should be the central concern of Marxian theory.

Adam Smith's Influence On Hegel's Philosophical Writings, James P. Henderson, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

New Mexico Labor Market Review 09-30-1991, New Mexico Department Of Labor

Historic Publications

The New Mexico Labor Market Review is a monthly publication presenting statistical data and analysis on labor market conditions throughout New Mexico. Issues examine statewide and regional trends in employment, unemployment, labor force estimates, industry activity, wages, occupational demand, and related economic conditions, often accompanied by feature articles on topics affecting the state’s economy. This issue covers August 1991.

Defense Cuts: What Might Connecticut Expect On The Manufacturing Employment Front?, Bruce D. Wundt

New England Journal of Public Policy

Connecticut has enjoyed considerable economic prosperity as a result of its reliance on the defense industry. However, as a consequence of reductions in federal spending on defense, this favorable trend of many years is reversing, unfortunately, while the region is also experiencing a general economic slowdown. Many Connecticut industries must prepare for a new era of reducing their dependence on defense contracts and diversify into new markets and products. State policymakers can help during these uncertain times by encouraging private and public retraining of labor resources and the expansion of industries that will promote economic stability.

Sales And Property Tax Contributions Of South Dakota Agriculture: 1990, Martin K. Beutler

Economics Commentator (1972- 2016)

No abstract provided.

Oilseed Outlook; Fed And Feeder Cattle Situation And Outlook, Richard Shane, Dillion M. Feuz

Economics Commentator (1972- 2016)

No abstract provided.

Update - September 1991, Loma Linda University Center For Christian Bioethics

Update

In this issue:

-- Business and Medicine: Are They Ethically Compatible?

-- [ A Standard Level of Health Care to All: A Moral Obligation? ]

-- Loma Linda University reorganizes the Center for Christian Bioethics

An Econometric Analysis Of The Nature And Causes Of Inflation In Nigeria, J. O. Asogu

Economic and Financial Review

In this econometric revisitation of inflation in Nigeria, an extensive review of the literature and evidence has been attempted culminating in a specification of the various alternative hypotheses on the causes of inflation. While not ruling out the validity of several theories of inflation in the Nigerian situation, empirical evidence indicates that increases in real domestic produce or supply situation, especially food, and law cost of production of consumables, tended to ameliorate inflation. On the other hand, increases in government expenditure, especially deficits, tend to increase the money supply and worsen depreciation of the exchange rate, which in turn intensify …

A Review Of The Federal Government Fertilizer Subsidy Scheme In Nigeria, Grace O. Evbuomwan

Economic and Financial Review

This paper reviews the fertilizer subsidy scheme in Nigeria. Using descriptive statistics and econometric methods, the study shows that farmers' access to fertilizer has improved since the commencement of the subsidy scheme in 1976 and the direct involvement of the Federal Government in the procurement and distribution of the input. This also coincided with the period when remarkable improvements were recorded in the yield of virtually all the major crops, especially staples. The econometric analysis confirms that a positive correlation exists between fertilizer supply/consumption and output, while the level of subsidy on the input influences its consumption (utilization) and tends …

Stephen A. Meyer: "The U.S. As A Debtor Country: Causes, Prospects And Policy Implications" Business Review, Federal Reserve Bank Of Philadelphia, November/December, 1989 (13pp), P. I. Nwaoba

Economic and Financial Review

The author's focus in this paper is the analysis of the implications of increased net debt claims on the United States. In his opinion, while net inflow of foreign investment is welcome, there is the fear that excessive net claims on a country like U.S.A. may constitute a problem in the long-run. The author's concern centres on the probable adverse consequences of the growing status of U.S.A. as a net debtor nation and the implication for future generations of Americans in terms of standard of living and debt service burden. It is the author's view that this might also lead …

Understanding Nigeria's Flow Of Funds Accounts, Odoko F. O.

Bullion

The describes the flow of funds system of accounts and also indicate its analytical uses including how a change in real activity has been financed, the forecasting of interest rates and the effects of economic policy changes. The major steps in the preparation of the accounts were outlined. ln particular, the author indicated that sectoring in FOF accounts is institutionally defined. Some of the basic data are available only after a considerable delay, e.g., national accounts figures, while others have to be estimated (households) leading to residual errors, Nevertheless, the flow of funds system serves as a useful instrument even …

Adjustment Issues In Nigeria: Problems And Prospects, J. K. A. Olekah

Bullion

This paper examines adjustment issues in Nigeria, with emphasis on identifying outstanding and emerging problems after SAP, ln achieving the above objective, the paper is divided into three ports as follows: Part I, discusses the main economic problems three years of Pre-SAP as well as analysing trends in major economic indicators and the factors underlying the trend, The main element and policy strategies of SAP are also examined in this part. Part ll analyses, three years of post-SAP with the view to highlighting outstanding and anticipated problems while Port lll is the prospects and concluding summary.

Government Industrial Policies In Respect Of Small And Medium Enterprises In Nigeria, K. M. Obitayo

Bullion

The paper examines various government policies and their effects on the survival and growth of SMEs. It examines the concept of small or medium scale enterprise, what factors militate against their survival, growth and proliferation for which government policies have been formulated to address. The paper is structured broadly into four sections The first section gives an overview of the definition of SMEs, their characteristics and roles as well as recognised problems. Section ll discusses government policies for promoting SMEs. It reviews the monetary and fiscal policy measures adopted in respect of SMEs in Nigeria. Section lll appraises the impacts …

Nigeria's Insurance Industry In 1989, Central Bank Of Nigeria Cbn

Economic and Financial Review

The growth in the number of insurance companies in Nigeria between 1988 and 1989 revealed the preference of the investors in the industry towards non-life underwriting business. In addition, only one out of the six new entrants into the industry was jointly owned. The unattractiveness of the industry to foreign investors was partly due to the perceived decreasing prosperity in the business as well as the unfavourable investment climate of the Nigerian economy. With many of the insurance companies now scheduled to be privatised, greater efficiency is expected in their operations, particularly among those previously controlled by the government. In …

Regling, Klaus P. "New Financing Approaches In The Debt Strategy" Finance And Development: March 1988, Vol. 25, No. 1, Pp.6 - 9, G. C. Onuoha

Economic and Financial Review

The review summarises the author's analysis of the various financing techniques. Apart from a few technical points, the write up is self-explanatory and interesting to read. Discussed in it are some of the advantages and constraints in the use of some of the financing techniques. While agreeing with the author on some of the advantages and shortcomings of the financing techniques, there is the need to point out issues which the author failed to take into consideration.

The Hidden Dimensions Of The Historical Settlement In Southwestern Africa (December 1988), Jehan Tharwat Rashed

Archived Theses and Dissertations

No abstract provided.

Critique Of Contingent Valuation And Travel Cost Methods For Valuing Natural Resources And Ecosystems, W. David Eberle, F. Gregory Hayden

Department of Economics: Faculty Publications

In July 1989 the U.S. District Court of Appeals in Washington, D.C. disallowed the method that had been established by the U.S. Department of Interior (DOI) for determining what a corporation would pay in the case of injury to an ecosystem from hazardous waste spills [Ohio v. Interior 1989]. The DOI method was based on neoclassical methodology and appraisal techniques. The Court ruled that "restoration is the proper remedy for injury to property where measurement of damages by some other method will fail to compensate fully for the injury," and that "natural resources have value that is not readily …

Technology And Economic Performance: A Different View Of The Federal Role, Murray L. Weidenbaum

Murray Weidenbaum Publications

This paper addresses the key issues in determining what government policy should be in the development and use of technology.

Technology And Economic Performance: A Rejoinder, Murray L. Weidenbaum

Murray Weidenbaum Publications

Government needs to create a more favorable economic climate in order for research and development to improve.

Economic Analysis Of Proposed Nm Solid _Sept 1991, Anna Weniger Lamberson

BBER Publications

This report evaluates the economic impacts of proposed New Mexico solid waste regulations, estimating compliance costs for landfills, recycling and composting facilities, transformation facilities, and infectious waste generators throughout the state. The report compares compliance costs with potential environmental remediation costs and assesses how regulatory requirements could affect communities of different sizes, particularly rural areas with small landfill operations.

Economic Analysis Of Solid Waste Regs_Sep 1991, Anna Weniger Lamberson

BBER Publications

The report evaluates the economic impacts of proposed revisions to New Mexico's solid waste regulations. The report examines compliance costs for landfills, recycling and composting facilities, transformation facilities, and infectious waste generators, while also comparing preventive compliance costs with the potential costs of environmental remediation.

An Historic And Theoretic Perspective On Credit Crunches, Hyman P. Minsky Ph.D.

Hyman P. Minsky Archive

Edited Oct. 14, 1991. Prepared for a Conference on “Credit Crunches - Causes and Cures," Wellington, New Zealand, Aug. 15-16, 1991.