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Articles 2791 - 2820 of 3476

Full-Text Articles in Economics

Macroeconomics Under Debate, James Tobin Jun 1983

Macroeconomics Under Debate, James Tobin

Cowles Foundation Discussion Papers

No abstract provided.


Profit-Sharing In A Collusive Industry, Martin J. Osborne, Carolyn Pitchik Jun 1983

Profit-Sharing In A Collusive Industry, Martin J. Osborne, Carolyn Pitchik

Cowles Foundation Discussion Papers

We study a model in which collusive duopolists divide up the monopoly profit according to their relative bargaining power. We are particularly interested in how the negotiated profit shares depend on the sizes of the firms. If each can produce at the same constant unit cost up to its capacity, we show that the profit per unit of capacity of the small firm is higher than that of the large one. We also study how the ratio of the negotiated profits depends on the size of demand relative to industry capacity, and how this ratio changes with variations in demand.


Linear Complementarity And The Average Volume Of Simplicial Cones, Roger Howe Jun 1983

Linear Complementarity And The Average Volume Of Simplicial Cones, Roger Howe

Cowles Foundation Discussion Papers

Samle [S] has recently shown how to estimate the average number of pivot steps in Lemke’s algorithm for the linear complementarity problem (LCP) in terms of the “volumes” of certain cones. In this paper we discuss the notion of average volumes of cones, and give two applications to the LCP.


Multiperiod Insurance Contracts, Russell Cooper, Beth Hayes May 1983

Multiperiod Insurance Contracts, Russell Cooper, Beth Hayes

Cowles Foundation Discussion Papers

No abstract provided.


Fiscal Incidence In A Dynamic Life-Cycle Model With Land, Christophe Chamley Apr 1983

Fiscal Incidence In A Dynamic Life-Cycle Model With Land, Christophe Chamley

Cowles Foundation Discussion Papers

No abstract provided.


First Order Autoregressive Processes And Strong Mixing, Donald W.K. Andrews Mar 1983

First Order Autoregressive Processes And Strong Mixing, Donald W.K. Andrews

Cowles Foundation Discussion Papers

A sufficient condition is given such that first-order autoregressive processes are stong mixing. The condition is specified in terms of the univariate distribution of the independent identically distributed innovation random variables. Normal, exponential, uniform, Cauchy, and many other continuous innovation random variables are shown to satisfy the condition. In addition, an example of a first-order autoregressive process which is not strong mixing is given. This process has Bernoulli (p) innovation random variables and any autoregressive parameter in (0, 1/2).


A Strategic Market Game With Transaction Costs, J. D. Rogawski, Martin Shubik Mar 1983

A Strategic Market Game With Transaction Costs, J. D. Rogawski, Martin Shubik

Cowles Foundation Discussion Papers

No abstract provided.


Blockmodeling Complex Statutes: Mapping Techniques Based On Combinatorial Optimization For Analyzing Economic Legislation And Its Stress Points Over Time, Scott A. Boorman, Paul R. Levitt Mar 1983

Blockmodeling Complex Statutes: Mapping Techniques Based On Combinatorial Optimization For Analyzing Economic Legislation And Its Stress Points Over Time, Scott A. Boorman, Paul R. Levitt

Cowles Foundation Discussion Papers

Blockmodeling, a combinatorial technique for relational data analysis, is applied to studying texts of complex economic legislation. By making this area a subject for mathematical modeling, using methods related to combinatories, logic, and discrete optimization, we describe a new type of frontier between law and economics.


Strategic Resource Extraction: When Easy Doesn't Do It, Jeremy I. Bulow, John Geanakoplos Mar 1983

Strategic Resource Extraction: When Easy Doesn't Do It, Jeremy I. Bulow, John Geanakoplos

Cowles Foundation Discussion Papers

No abstract provided.


The Exact Distribution Of Liml: Ii, Peter C.B. Phillips Feb 1983

The Exact Distribution Of Liml: Ii, Peter C.B. Phillips

Cowles Foundation Discussion Papers

This paper derives the exact probability density function of the limited information maximum likelihood (LIML) estimator of the coefficient vector of the endogenous variables in a structural equation containing n + 1 endogenous variables and L ≥ 1 degrees of overidentification. This generalizes the presently known results for the two endogenous variable case (n + 1 = 2) and the leading case analyses in the author’s earlier paper (1982). Upon appropriate symbolic translation the results may be applied directly to the maximum likelihood estimator in the multivariate linear functional relationship.


Monetary Policies With Increasing Returns, Graciela Chichilnisky, Geoffrey M. Heal Feb 1983

Monetary Policies With Increasing Returns, Graciela Chichilnisky, Geoffrey M. Heal

Cowles Foundation Discussion Papers

The paper studies a two-sector monetary economy with two factors of production, labor and capital. The industrial sector has increasing returns to scale, the consumption sector non-increasing returns. All firms maximize profits and markets clear. For each rate of return on capital the model reaches a general equilibrium with an associated demand for money. A monetary policy is a quantity of money supplied. We prove that restrictive monetary policies decrease the level of operation and profits of the increasing returns to scale sector and eventually force it to operate with negative profits, so that it must close down. The other …


Predetermined Prices And The Allocation Of Social Risks, Costas Azariadis, Russell Cooper Jan 1983

Predetermined Prices And The Allocation Of Social Risks, Costas Azariadis, Russell Cooper

Cowles Foundation Discussion Papers

We propose a Walrasian explanation for the existence of fixed prices, i.e., of trades in which either the price or the quantity exchanged do not reflect all publicly available information. Such trades result in a rigid price system that facilitates the sharing of social risks; they may also cause allocative distortions which tend to increase the equilibrium price of insurance above its actuarially fair level. The simple overlapping generations model we consider here exhibits a tradeoff between risk sharing and allocative efficiency that is familiar from the incentives literature. We demonstrate that the market for non-contingent claims is active only …


Global Stability In A Class Of Markets With Three Commodities And Three Consumers, Masayoshi Hirota Dec 1982

Global Stability In A Class Of Markets With Three Commodities And Three Consumers, Masayoshi Hirota

Cowles Foundation Discussion Papers

No abstract provided.


The Exact Distribution Of Liml: I, Peter C.B. Phillips Dec 1982

The Exact Distribution Of Liml: I, Peter C.B. Phillips

Cowles Foundation Discussion Papers

It is shown that the exact finite sample distribution of the limited information maximum likelihood (LIML) estimator in a general and leading single equation case is multivariate Cauchy. When the LIML estimator utilizes a known error covariance matrix (LIMLK) it is proved that the same Cauchy distribution still applies. The corresponding result for the instrumental variable (IV) estimator is a form of multivariate t density where the degrees of freedom depend on the number of instruments.


Marginal Versus Average Cost Pricing In The Presence Of A Public Monopoly, Donald J. Brown, Geoffrey M. Heal Dec 1982

Marginal Versus Average Cost Pricing In The Presence Of A Public Monopoly, Donald J. Brown, Geoffrey M. Heal

Cowles Foundation Discussion Papers

No abstract provided.


Near-Markets And Market Games, Martin Shubik, Myrna Holtz Wooders Dec 1982

Near-Markets And Market Games, Martin Shubik, Myrna Holtz Wooders

Cowles Foundation Discussion Papers

No abstract provided.


Optimal Labor Contracts And The Role Of Monetary Policy In An Overlapping Generations Model, Russell Cooper Dec 1982

Optimal Labor Contracts And The Role Of Monetary Policy In An Overlapping Generations Model, Russell Cooper

Cowles Foundation Discussion Papers

This paper extends the optimal labor contracts literature to consider an environment with both real and nominal shocks. In an overlapping generations model, we compare alternative means of trading labor services: spot markets, fixed nominal wage contracts and price-contingent contracts. The ordering of these market structures will depend on the relative variability of the real and nominal shocks and the costs of contingent contracts. We also investigate the role of monetary policy and the circumstances under which feedback rules are neutral. Finally, we show that a non-stochastic monetary policy is optimal.


Revelation Of Information In Strategic Market Games: A Critique Of Rational Expectations, Pradeep Dubey, John Geanakoplos, Martin Shubik Nov 1982

Revelation Of Information In Strategic Market Games: A Critique Of Rational Expectations, Pradeep Dubey, John Geanakoplos, Martin Shubik

Cowles Foundation Discussion Papers

We criticize the R.E.E. approach to asymmetric information general equilibrium because it does not explain how information gets “into” the prices. This leads to well-known paradoxes. We suggest a multiperiod game instead, where the flow of information into and out of prices is explicitly modeled. In our game Nash equilibria (N.E.) (1) generalize Walrasian equilibria to asymmetric information; (2) exist generically; (3) eliminate pure speculation; (4) allow prices to reveal information and markets to become more efficient over time; (5) are consistent with the weak efficient markets hypothesis that tracking past prices is not profitable; (6) yet always lead to …


Scarf's Procedure For Integer Programming And A Dual Simplex Algorithm, Philip M. White, Andrew S. Caplin, Ludo Van Der Heyden Nov 1982

Scarf's Procedure For Integer Programming And A Dual Simplex Algorithm, Philip M. White, Andrew S. Caplin, Ludo Van Der Heyden

Cowles Foundation Discussion Papers

Herbert Scarf has recently introduced an algorithm for integer programs based on the concept of primitive sets. We show that as the choice variables become continuous, this algorithm converges to a dual simplex algorithm. This result is robust in the sense that even before the limit is reached, the simplex path is contained in the primitive sets which define Scarf’s path to the solution of the integer program.


Stable Disequilibrium Prices: Macroeconomics And Increasing Returns I, Geoffrey M. Heal Nov 1982

Stable Disequilibrium Prices: Macroeconomics And Increasing Returns I, Geoffrey M. Heal

Cowles Foundation Discussion Papers

The paper establishes conditions for the existence of a set of prices which are stable and at which markets do not clear, providing a rigorous foundation for the existence of fixed-price equilibria via the macroeconomics of increasing returns. It analyzes a Walrasian price adjustment process for a general equilibrium economy with economies of scale in production.


A Geometric Explanation Of The Transfer Paradox In A Stable Economy, John Geanakoplos, Geoffrey M. Heal Nov 1982

A Geometric Explanation Of The Transfer Paradox In A Stable Economy, John Geanakoplos, Geoffrey M. Heal

Cowles Foundation Discussion Papers

No abstract provided.


Investment Versus Savings Incentives: The Size Of The Bang For The Buck And The Potential For Self-Financing Business Tax Cuts, Alan J. Auerbach, Laurence Kotlikoff Nov 1982

Investment Versus Savings Incentives: The Size Of The Bang For The Buck And The Potential For Self-Financing Business Tax Cuts, Alan J. Auerbach, Laurence Kotlikoff

Cowles Foundation Discussion Papers

No abstract provided.


Robust And Asymptotically Efficient Estimation Of Location In A Stationary Strong Mixing Gaussian Parametric Model, Donald W.K. Andrews Nov 1982

Robust And Asymptotically Efficient Estimation Of Location In A Stationary Strong Mixing Gaussian Parametric Model, Donald W.K. Andrews

Cowles Foundation Discussion Papers

This paper considers the problem of robust estimation of location in a model with stationary strong mixing Gaussian parametric distributions. An estimator is found that is within epsilon of being asymptotically efficient at the Gaussian parametric distribution and is within epsilon of being optimally robust! For the robustness results a Huber-type minimax criterion is used, where minimaxing takes place over neighborhoods of the parametric Gaussian distributions. The neighborhood system considered includes distributions of strong mixing processes and allows for deviations from the normal univariate parametric distributions within a Hellinger metric neighborhood, as well as deviations from stationarity and from the …


Revelation Of Information In Strategic Market Games: A Critique Of Rational Expectations, Pradeep Dubey, John Geanakoplos, Martin Shubik Nov 1982

Revelation Of Information In Strategic Market Games: A Critique Of Rational Expectations, Pradeep Dubey, John Geanakoplos, Martin Shubik

Cowles Foundation Discussion Papers

No abstract provided.


On Allocative Distortions In Problems Of Self-Selection, Russell Cooper Sep 1982

On Allocative Distortions In Problems Of Self-Selection, Russell Cooper

Cowles Foundation Discussion Papers

This paper considers the general structure of self-selection models. By imposing conditions which permit the ordering of agents by their preferences, we provide a characterization of the distortions inherent in the sorting process. We also discuss extensions of the basic model such as randomization. Time Series Behavior of Prices for Overlapping Futures Contracts, with an Application to Soybean Futures


The Structure Of Social Risk, William D. Nordhaus, Steven N. Durlauf Sep 1982

The Structure Of Social Risk, William D. Nordhaus, Steven N. Durlauf

Cowles Foundation Discussion Papers

It is increasingly recognized that the structure of financial risks interacts with economic or fundamental risks in a way that influence real economic outcomes. Recent work documents, on the one hand, the apparent excessive sensitivity of financial markets to economic shocks (see especially Shiller (1979)); and on the other hand the close dependence of investment and economic variables on financial variables. One of the central developments to analyze such interactions has been portfolio theory, particularly the capital asset pricing model (CAPM). This field has been extremely fertile, and has seen an outpouring of both theoretical and empirical work. Unfortunately, virtually …


On The Disaggregation Of Excess Demand Functions, John Geanakoplos, Heracles M. Polemarchakis Aug 1982

On The Disaggregation Of Excess Demand Functions, John Geanakoplos, Heracles M. Polemarchakis

Cowles Foundation Discussion Papers

No abstract provided.


Core And Competitive Equilibria With Indivisibilities, Martine Quinzii Aug 1982

Core And Competitive Equilibria With Indivisibilities, Martine Quinzii

Cowles Foundation Discussion Papers

No abstract provided.


Utility Functions For Debreu's ‘Excess Demands', John Geanakoplos Aug 1982

Utility Functions For Debreu's ‘Excess Demands', John Geanakoplos

Cowles Foundation Discussion Papers

No abstract provided.


Era's: A New Approach To Small Sample Theory, Peter C.B. Phillips Aug 1982

Era's: A New Approach To Small Sample Theory, Peter C.B. Phillips

Cowles Foundation Discussion Papers

This article proposes a new approach to small sample theory that achieves a meaningful integration of earlier directions of research in this field. The approach centers on the constructive technique of approximating distributions developed recently by the author in [10]. This technique utilizes extended rational approximants (ERA’s) which methods (such as those based on asymptotic expansions) and which simultaneously blend information from diverse analytic, numerical and experimental sources. The first part of the article explores the general theory of approximation of continuous probability distributions by means of ERA’s. Existence, characterization, error bound and uniqueness for the convergence result obtained earlier …