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Full-Text Articles in Social and Behavioral Sciences

Entrepreneurial Abilities And Liabilities In A Model Of Self-Selection, Christophe Chamley Dec 1981

Entrepreneurial Abilities And Liabilities In A Model Of Self-Selection, Christophe Chamley

Cowles Foundation Discussion Papers

No abstract provided.


Payoffs In Non-Atomic Economies: An Axiomatic Approach, Pradeep Dubey, Abraham Neyman Dec 1981

Payoffs In Non-Atomic Economies: An Axiomatic Approach, Pradeep Dubey, Abraham Neyman

Cowles Foundation Discussion Papers

No abstract provided.


The Epsilon Core Of A Large Game, Myrna Holtz Wooders Dec 1981

The Epsilon Core Of A Large Game, Myrna Holtz Wooders

Cowles Foundation Discussion Papers

Sufficient conditions are given for large replica games without side payments to have non-empty approximate cores for all sufficiently large replications. No “balancedness” assumptions are required. The conditions are superadditivity, a very weak boundedness condition, and convexity of the payoff sets. An example is provided to show that under these conditions, the (exact) core well may be empty.


Money And Finance In The Macro-Economic Process, James Tobin Dec 1981

Money And Finance In The Macro-Economic Process, James Tobin

Cowles Foundation Discussion Papers

Lecture presented December 8, 1981 at the Stockholm School of Economics in connection with the 1981 Prize for Economic Science in Memory of Alfred Nobel.


Yale Political Monthly 1981 November, The Politic, Inc. Nov 1981

Yale Political Monthly 1981 November, The Politic, Inc.

The Politic

No abstract provided.


Macroconfusion: The Dilemmas Of Economic Policy, William D. Nordhaus Nov 1981

Macroconfusion: The Dilemmas Of Economic Policy, William D. Nordhaus

Cowles Foundation Discussion Papers

No abstract provided.


Yale Political Monthly 1981 October, The Politic, Inc. Oct 1981

Yale Political Monthly 1981 October, The Politic, Inc.

The Politic

No abstract provided.


Game Theory: The Language Of Strategy?, Martin Shubik Oct 1981

Game Theory: The Language Of Strategy?, Martin Shubik

Cowles Foundation Discussion Papers

No abstract provided.


Some Remarks On The Folk Theorem In Game Theory, Mamoru Kaneko Oct 1981

Some Remarks On The Folk Theorem In Game Theory, Mamoru Kaneko

Cowles Foundation Discussion Papers

It is argued that although the pathological multiplicity of Nash equilibria of super games stated by the folk theorem can be removed by introducing limited observations into super games with a continuum of players, the consideration of super games in terms of the Nash equilibrium concept involves a more fundamental and conceptual difficulty.


A New Approach To Small Sample Theory, Peter C.B. Phillips Oct 1981

A New Approach To Small Sample Theory, Peter C.B. Phillips

Cowles Foundation Discussion Papers

It is argued that an integral part of the process by which the results of small sample theory can be transmitted to the applied econometrician will in the future be played by reliable direct approximation to the sampling and posterior distributions that are of interest in the precise setting of the model and the data set with which the investigator is working. The purpose of this paper is to introduce a new technique of approximating distributions which is sufficiently general to be widely used and is developed in very general terms and should be widely applicable in mathematical statistics and …


Marginal Densities Of Instrumental Variable Estimators In The General Single Equation Case, Peter C.B. Phillips Oct 1981

Marginal Densities Of Instrumental Variable Estimators In The General Single Equation Case, Peter C.B. Phillips

Cowles Foundation Discussion Papers

A method of extracting marginal density approximations using the multivariate version of the Laplace formula is given and applied to instrumental variable estimators. Some leading exact distributions are derived for the general single equation case which lead to computable formulae and generalize all known results for marginal densities. These results are related to earlier work by Basmann (1963), Kabe (1964) and Phillips (1980b). Some general issues bearing on the current development of small sample theory and its application in empirical work are discussed in the introduction to the paper.


Economic Policy In The Face Of Declining Productivity Growth, William D. Nordhaus Sep 1981

Economic Policy In The Face Of Declining Productivity Growth, William D. Nordhaus

Cowles Foundation Discussion Papers

No abstract provided.


Asset Markets, General Equilibrium And The Neutrality Of Money, Christophe Chamley, Heracles M. Polemarchakis Sep 1981

Asset Markets, General Equilibrium And The Neutrality Of Money, Christophe Chamley, Heracles M. Polemarchakis

Cowles Foundation Discussion Papers

When government liabilities (including money) are held in private portfolios only as stores of value, and do not provide additional benefits (as liquidity services), the real variables in an economy with uncertainty are not affected by the government’s trading in assets. There are also policies which alter the money supply through taxes or subsidies, and affect the price of money without changing real variables.


The Optimal Progressive Income Tax — The Existence And The Limit Tax Rates, Mamoru Kaneko Aug 1981

The Optimal Progressive Income Tax — The Existence And The Limit Tax Rates, Mamoru Kaneko

Cowles Foundation Discussion Papers

The purpose of this paper is to consider the problem of optimal income taxation in the domain of progressive (convex) income tax function. This paper proves the existence of an optimal tax function and that the optimal marginal and average tax rates tend asymptotically to 100 percent as income level becomes arbitrarily high.


Algorithms For The Linear Complementarity Problem Which Allow An Arbitrary Starting Point, Dolf A.J.J Talman, Ludo Van Der Heyden Aug 1981

Algorithms For The Linear Complementarity Problem Which Allow An Arbitrary Starting Point, Dolf A.J.J Talman, Ludo Van Der Heyden

Cowles Foundation Discussion Papers

No abstract provided.


The Conventionally Stable Sets In Noncooperative Games With Limited Observations: Definitions And Introductory Arguments, Mamoru Kaneko Aug 1981

The Conventionally Stable Sets In Noncooperative Games With Limited Observations: Definitions And Introductory Arguments, Mamoru Kaneko

Cowles Foundation Discussion Papers

This paper attempts to define a new solution concept for n-person noncooperative games. The idea of the new concept is based on that of the von Neumann-Morgenstern stable set, or more precisely, rather on their interpretation of it which they call “standards of behavior.” This new approach enables us to consider new interesting problems of information. Further this approach gives us a plausible interpretation of Nash equilibrium. This paper provides the definition and considers the new solution concept for zero-sum two-person games, the prisoner’s dilemma, the battle of sexes and games with a continuum of players.


Schumpeterian Dynamics I. An Evolutionary Model Of Innovation And Imitation, Katsuhito Iwai Aug 1981

Schumpeterian Dynamics I. An Evolutionary Model Of Innovation And Imitation, Katsuhito Iwai

Cowles Foundation Discussion Papers

No abstract provided.


Schumpeterian Dynamics Ii. Technological Progress, Firm Growth And ‘Economic Selection', Katsuhito Iwai Aug 1981

Schumpeterian Dynamics Ii. Technological Progress, Firm Growth And ‘Economic Selection', Katsuhito Iwai

Cowles Foundation Discussion Papers

No abstract provided.


On The Infinite Welfare Cost Of Inflation And Other Second Order Effects, Christophe Chamley Jul 1981

On The Infinite Welfare Cost Of Inflation And Other Second Order Effects, Christophe Chamley

Cowles Foundation Discussion Papers

The optimal inflation rate is analyzed in a simple model of intertemporal general equilibrium where agents have an operative bequest motive and taxation is distortionary. Monetary balances are used as a productive input, and agents have perfect foresight. The optimal value of the permanent inflation rate can be approximated by a simple formula. The case in which the growth of aggregate income exceeds the social discount rate is unlikely to be important, and the optimal value of the permanent inflation rate depends on the existence of a short-run trade-off between unemployment and inflation.


Estimated Effects Of Relative Prices On Trade Shares, Ray C. Fair Jun 1981

Estimated Effects Of Relative Prices On Trade Shares, Ray C. Fair

Cowles Foundation Discussion Papers

No abstract provided.


Approximate Equilibria With Bounds Independent Of Preferences, Robert M. Anderson, M. Ali Khan, Salim Rashid Jun 1981

Approximate Equilibria With Bounds Independent Of Preferences, Robert M. Anderson, M. Ali Khan, Salim Rashid

Cowles Foundation Discussion Papers

We prove the existence of approximate equilibria in exchange economies, giving bounds on the excess demand in terms of the number of traders and norms of the endowments, but independent of the preferences.


Arbitrage Pricing Theory In A Finite Economy, John J. Beggs Jun 1981

Arbitrage Pricing Theory In A Finite Economy, John J. Beggs

Cowles Foundation Discussion Papers

No abstract provided.


Efficient Stationary Taxation And Intertemporal General Equilibrium, Christophe Chamley, Douglas Downing May 1981

Efficient Stationary Taxation And Intertemporal General Equilibrium, Christophe Chamley, Douglas Downing

Cowles Foundation Discussion Papers

We present a method to analyze the welfare cost of price distortions created by taxes on the incomes of capital and labor and on consumption in an intertemporal model of general equilibrium. This efficiency cost depends in an important way on the production technology. It is not very sensitive to the ratio between the tax rates on capital and labor respectively, when the elasticity of substitution between these factors is small. Our method allows us to determine under the assumptions of the model, the optimal combination of taxes on capital and labor income respectively. The consumption tax is more efficient …


Market Structure In The ‘Research And Development’ Phase, John J. Beggs May 1981

Market Structure In The ‘Research And Development’ Phase, John J. Beggs

Cowles Foundation Discussion Papers

No abstract provided.


Mandatory Retirement Saving And Capital Formation, Walter Dolde, James Tobin May 1981

Mandatory Retirement Saving And Capital Formation, Walter Dolde, James Tobin

Cowles Foundation Discussion Papers

No abstract provided.


Estimated Output, Price, Interest Rate, And Exchange Rate Linkages Among Countries, Ray C. Fair Apr 1981

Estimated Output, Price, Interest Rate, And Exchange Rate Linkages Among Countries, Ray C. Fair

Cowles Foundation Discussion Papers

No abstract provided.


Ratio Equilibrium In An Economy With An Externality, Yozo Ito, Mamoru Kaneko Apr 1981

Ratio Equilibrium In An Economy With An Externality, Yozo Ito, Mamoru Kaneko

Cowles Foundation Discussion Papers

No abstract provided.


The Dynamic Interaction Between Industry Level Profits And Research And Development, John J. Beggs Apr 1981

The Dynamic Interaction Between Industry Level Profits And Research And Development, John J. Beggs

Cowles Foundation Discussion Papers

No abstract provided.


Interest Rate Policies And Informational Efficiency, Laurence Weiss Apr 1981

Interest Rate Policies And Informational Efficiency, Laurence Weiss

Cowles Foundation Discussion Papers

Monetary policy may be implemented either by controlling the nominal money supply or by fixing the nominal interest rates. This paper investigates the effects on available information of both kinds of policies in the equilibrium rational expectations model presented in Grossman-Weiss (1980). A necessary and sufficient condition for informational efficiency is that agents have homogenous expectations about the real interest rate. Interest rate policies can be first best in the sense of yielding higher quality information than any feasible money growth feedback policies. Unlike desirable money growth rules, interest rate policies do not require more information on behalf of the …


Strong Core Theorems With Nonconvex Preferences, Robert M. Anderson Apr 1981

Strong Core Theorems With Nonconvex Preferences, Robert M. Anderson

Cowles Foundation Discussion Papers

It is known that in large economies with strongly convex preferences, the commodity bundles agents receive at core allocations are near their demand sets. Without convexity, it is know that agents need not be near their demand sets, although they will satisfy a weaker condition. In this paper, we show that, for “most” economies (in the sense of probability and in the sense of the Baire category theorem), the stronger form of approximation holds without convexity.