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2005

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Articles 361 - 390 of 703

Full-Text Articles in Economics

Ex Post Implementation, Dirk Bergemann, Stephen Morris Apr 2005

Ex Post Implementation, Dirk Bergemann, Stephen Morris

Cowles Foundation Discussion Papers

We analyze the problem of fully implementing a social choice set in ex post equilibrium. We identify an ex post monotonicity condition that is necessary and — in economic environments — sufficient for full implementation in ex post equilibrium. We also identify an ex post monotonicity no veto condition that is sufficient. Ex post monotonicity is satisfied in all single crossing environments with strict ex post incentive constraints. In many economically significant environments, ex post implementation can be achieved in the direct mechanism. We show by means of two classic examples that ex post monotonicity does not imply nor is …

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Flexibility As An Instrument In Digital Rights Management, Dirk Bergemann, Thomas Eisenbach, Joan Feigenbaum, Scott Shenker Apr 2005

Flexibility As An Instrument In Digital Rights Management, Dirk Bergemann, Thomas Eisenbach, Joan Feigenbaum, Scott Shenker

Cowles Foundation Discussion Papers

We consider the optimal design of flexible use in a digital-rights-management policy. The basic model considers a single distributor of digital goods and a continuum of consumers. Each consumer can acquire the digital good either as a licensed product or an unlicensed copy. The availability of (or access to) unlicensed copies is increasing both in the number of licensed copies and in the flexibility accorded to licensed copies. We thus analyze the optimal design of flexibility in the presence of unlicensed distribution channels (the “greynet”). We augment the basic model by introducing a “secure platform” that is required to use …

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Aggregation Of Expert Opinions, Dino Gerardi, Richard P. Mclean, Andrew Postlewaite Apr 2005

Aggregation Of Expert Opinions, Dino Gerardi, Richard P. Mclean, Andrew Postlewaite

Cowles Foundation Discussion Papers

Conflicts of interest arise between a decision maker and agents who have information pertinent to the problem because of differences in their preferences over outcomes. We show how the decision maker can extract the information by distorting the decisions that will be taken, and show that only slight distortions will be necessary when agents are “informationally small”. We further show that as the number of informed agents becomes large the necessary distortion goes to zero. We argue that the particular mechanisms analyzed are substantially less demanding informationally than those typically employed in implementation and virtual implementation. In particular, the equilibria …

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Commodity Money And The Valuation Of Trade, Eric Smith, Martin Shubik Apr 2005

Commodity Money And The Valuation Of Trade, Eric Smith, Martin Shubik

Cowles Foundation Discussion Papers

In a previous essay we modeled the enforcement of contract, and through it the provision of money and markets, as a production function within the society, the scale of which is optimized endogenously by labor allocation away from primary production of goods. Government and a central bank provided fiat money and enforced repayment of loans, giving fiat a predictable value in trade, and also rationalizing the allocation of labor to government service, in return for a fiat salary. Here, for comparison, we consider the same trade problem without government or fiat money, using instead a durable good (gold) as a …

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Courage To Capital? A Model Of The Effects Of Rating Agencies On Sovereign Debt Roll-Over, Mark A. Carlson, Galina Hale Apr 2005

Courage To Capital? A Model Of The Effects Of Rating Agencies On Sovereign Debt Roll-Over, Mark A. Carlson, Galina Hale

Cowles Foundation Discussion Papers

We propose a model of rating agencies that is an application of global game theory in which heterogeneous investors act strategically. The model allows us to explore the impact of the introduction of a rating agency on financial markets. Our model suggests that the addition of the rating agency affects the probability of default and the magnitude of the response of capital flows to changes in fundamentals in a non–trivial way, and that introducing a rating agency can bring multiple equilibria to a market that otherwise would have the unique equilibrium.

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The Life-Cycle Personal Accounts Proposal For Social Security: An Evaluation, Robert J. Shiller Apr 2005

The Life-Cycle Personal Accounts Proposal For Social Security: An Evaluation, Robert J. Shiller

Cowles Foundation Discussion Papers

The life-cycle accounts proposal for Social Security reform has been justified by its proponents using a number of different arguments, but these arguments generally involve the assumption of a high likelihood of good returns on the accounts. A simulation is undertaken to estimate the probability distribution of returns in the accounts based on long-term historical experience. U.S. stock market, bond market and money market data 1871-2004 are used for the analysis. Assuming that future returns behave like historical data, it is found that a baseline personal account portfolio after offset will be negative 32% of the time on the retirement …

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The Nonparametric Approach To Applied Welfare Analysis, Donald J. Brown, Caterina Calsamiglia Apr 2005

The Nonparametric Approach To Applied Welfare Analysis, Donald J. Brown, Caterina Calsamiglia

Cowles Foundation Discussion Papers

Changes in total surplus and deadweight loss are traditional measures of economic welfare. We propose necessary and sufficient conditions for rationalizing consumer demand data with a quasilinear utility function. Under these conditions, consumer surplus is a valid measure of consumer welfare. For nonmarketed goods, we propose necessary and sufficient conditions on market data for efficient production , i.e., production at minimum cost. Under these conditions we derive a cost function for the nonmarketed good, where producer surplus is the area above the marginal cost curve.

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Decision Methods For Solving Systems Of Walrasian Inequalities, Donald J. Brown, Ravi Kannan Apr 2005

Decision Methods For Solving Systems Of Walrasian Inequalities, Donald J. Brown, Ravi Kannan

Cowles Foundation Discussion Papers

We propose two algorithms for deciding if systems of Walrasian inequalities are solvable. These algorithms may serve as nonparametric tests for multiple calibration of applied general equilibrium models or they can be used to compute counterfactual equilibria in applied general equilibrium models defined by systems of Walrasian inequalities.

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Two Algorithms For Solving The Walrasian Equilibrium Inequalities, Donald J. Brown, Ravi Kannan Apr 2005

Two Algorithms For Solving The Walrasian Equilibrium Inequalities, Donald J. Brown, Ravi Kannan

Cowles Foundation Discussion Papers

We propose two algorithms for deciding if the Walrasian equilibrium inequalities are solvable. These algorithms may serve as nonparametric tests for multiple calibration of applied general equilibrium models or they can be used to compute counterfactual equilibria in applied general equilibrium models defined by the Walrasian equilibrium inequalities.

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Fiat Money And The Natural Scale Of Government, Martin Shubik, Eric Smith Apr 2005

Fiat Money And The Natural Scale Of Government, Martin Shubik, Eric Smith

Cowles Foundation Discussion Papers

The competitive market structure of a decentralized economy is converted into a self-policing system treating the bureaucracy and enforcement of the legal system endogenously. In particular we consider money systems as constructs to make agents’ economic strategies predictable from knowledge of their preferences and endowments, and thus to support coordinated resource production and distribution from independent decision making. Diverse rule systems can accomplish this, and we construct minimal strategic market games representing government-issued fiat money and ideal commodity money as two cases. We endogenize the provision of money and rules for its use as productive activities within the society, and …

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Land Value Taxation: Persuasive Theory But Practically Difficult, Tom Dunne Apr 2005

Land Value Taxation: Persuasive Theory But Practically Difficult, Tom Dunne

Articles

While the theoretical case for Land Value Taxation is regarded as being very persuasive, most people looking closely at the idea form the view that the practical difficulties of introducing it into an established modern economy are compelling. Nevertheless, in Europe and America the ideas put forward by George continue to influence many people discussing issues around land use planning, urban development and methods of funding infrastructure and local government.

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Predicting Olympic Medal Counts: The Effects Of Economic Development On Olympic Performance, Xun Bian '05 Apr 2005

Predicting Olympic Medal Counts: The Effects Of Economic Development On Olympic Performance, Xun Bian '05

Honors Projects

This paper investigates the relationship between a country's Olympic performance and its overall economic condition, including population, economic resources, and political structures. A panel data set comprising the yearly data of 1996, 2000, and 2004 are estimated by using a fixed-effect Tobit regression model. Following previous studies on this topic, population size and economic resources are measured by using population and per capita GDP. One major focus of this research is the influence of political structure on national Olympic performance. Instead of using a socialist and non-socialist dummy variable like most previous studies, I used continuous variables, political freedom (PF) …

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The Effect Of Monopsony Power In Major League Baseball On The Salaries Of Players With Less Than Six Years In The Majors, Andrew Tarman '05 Apr 2005

The Effect Of Monopsony Power In Major League Baseball On The Salaries Of Players With Less Than Six Years In The Majors, Andrew Tarman '05

Honors Projects

This research attempts to measure the impact of monopsony power on baseball players with less than six years of experience. Past research indicates that players with less than six years of experience have lower salaries than players with the same productivity and more than six years of experience. To try and combat monopsonistic behavior, baseball player's formed the Players' Union and instituted an arbitration process. Through this process, a third party arbitrator listens to cases from both a player and owner and then chooses either the player's or the owner's salary bid. While this process is intended to help players …

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Comparative Study: Factors That Affect Foreign Currency Reserves In China And India, Ana Maria Romero '05 Apr 2005

Comparative Study: Factors That Affect Foreign Currency Reserves In China And India, Ana Maria Romero '05

Honors Projects

This paper empirically studies the accumulation of foreign exchange reserves by the countries of India and China. Particularly, it focuses on the determinants of this policy and on the role that the choice of exchange rate regime plays in driving it. Annual data points for the years between 1980 and 2003 were collected and their frequency increased to quarterly through a quadratic match process. The accumulation of foreign exchange reserves in India is best explained as a function of exchange rate volatility and the degree of openness of the economy. The impact of one-time shocks, such as currency devaluations, and …

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Language Deficiency And The Occupational Attainment Of Mexican Immigrants, Elizabeth Planas '05 Apr 2005

Language Deficiency And The Occupational Attainment Of Mexican Immigrants, Elizabeth Planas '05

Honors Projects

The number of Mexican immigrants that have entered the U.S. has greatly increased over the past decade. The occupational attainment of these immigrants provides insight into how successful they are in the host country and language deficiency has an effect on this occupational attainment. By controlling for language proficiency, human capital characteristics and other variables from the IPUMS database, this project uses probit analysis to predict the probability that an immigrant will be employed in a favorable occupation in the u.s. Results show that language deficiency reduces the probability of attaining a favorable occupation, but having no English language skills …

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Whole-School Reform, John Yinger Apr 2005

Whole-School Reform, John Yinger

Center for Policy Research

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars.

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Unmaking Goliath: Community Control In The Face Of Global Capital, By J Defilippis [Book Review], David J. Reiss Apr 2005

Unmaking Goliath: Community Control In The Face Of Global Capital, By J Defilippis [Book Review], David J. Reiss

Cornell Law Faculty Publications

No abstract provided.

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(Wp 2005-05) Assessing The Determinants Of Willingness To Pay For Urban Flood Control: The Role Of Locational, Demographic And Attitudinal Factors, David E. Clark, Robert J. Griffin, Vladimir Novotny Apr 2005

(Wp 2005-05) Assessing The Determinants Of Willingness To Pay For Urban Flood Control: The Role Of Locational, Demographic And Attitudinal Factors, David E. Clark, Robert J. Griffin, Vladimir Novotny

Economics Working Papers

The urbanization of urban watersheds can influence flooding risks. Traditional Federal Emergency Management Agency (FEMA) flood risk maps identify 100 year floodplains. These maps are updated infrequently. However, as a community urbanizes, flood risks can change, especially for downstream residents. Thus, one would expect that the willingness to pay (WTP) to prevent the worsening of flooding risk would depend in part on the location of the household in the community and their associated flooding risk. Economists and regional scientists have evaluated the role played by traditional demographic factors. However, attitudinal factors measuring community norms, political philosophy, and other psychological factors …

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Perspectives On Michael A. Bernstein's A Perilous Progress: Economists And Public Purpose In Twentieth-Century America, Esther-Mirjam Sent, Roger E. Backhouse, A.W. Bob Coats, John B. Davis, Harald Hagemann Apr 2005

Perspectives On Michael A. Bernstein's A Perilous Progress: Economists And Public Purpose In Twentieth-Century America, Esther-Mirjam Sent, Roger E. Backhouse, A.W. Bob Coats, John B. Davis, Harald Hagemann

Economics Faculty Research and Publications

No abstract provided.

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The Effects Of Gender On Salary-At-Hire In The Academic Labor Market, Peter Toumanoff Apr 2005

The Effects Of Gender On Salary-At-Hire In The Academic Labor Market, Peter Toumanoff

Economics Faculty Research and Publications

This paper uses data compiled from faculty files at a private, doctoral-granting research university to investigate whether or not there are gender-related differences in salary offers at the time of initial appointment. The investigation uses single- and multiple-equation regression models that control for gender, date of hire, experience and degree attained, rank, characteristics of the position being filled, inflation, and academic department. The study finds an unexplained and statistically significant differential in salary-at-hire between men and women of from 2.9% to 8.4%, and it finds that the unexplained male–female differential in salary-at-hire has increased since 1990.

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(Wp 2005-03) Openness, Centralized Wage Bargaining, And Inflation, Joseph P. Daniels, Farrokh Nourzad, David D. Vanhoose Apr 2005

(Wp 2005-03) Openness, Centralized Wage Bargaining, And Inflation, Joseph P. Daniels, Farrokh Nourzad, David D. Vanhoose

Economics Working Papers

This paper develops a model of an open economy containing both sectors in which wages are market-determined and sectors with wage-setting arrangements. A portion of the latter group of sectors coordinate their wages, taking into account that their collective actions influence the equilibrium inflation outcome in an environment in which the central bank engages in discretionary monetary policymaking. Key predictions forthcoming from this model are (1) increased centralization of wage setting initially causes inflation to increase at low degrees of wage centralization but then, as wage centralization increases, results in an inflation dropoff; (2) a greater degree of centralized wage …

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The Economics Of Mandatory Biotech Food Labeling In The United States, William J. Gongol Apr 2005

The Economics Of Mandatory Biotech Food Labeling In The United States, William J. Gongol

Major Themes in Economics

Almost every developed nation in the world except the United States mandates the labeling of genetically modified foods. Upon examining the costs and benefits of mandatory labeling, it appears that this may not be the most efficient solution to deal with varied consumer preferences. The United States government should instead focus on increased scientific research to deal with the externalities of biotechnology.

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The Effect Of A Loser-Pays Rule On The Decisions Of An American Litigant, Jaime Leigh Loos Apr 2005

The Effect Of A Loser-Pays Rule On The Decisions Of An American Litigant, Jaime Leigh Loos

Major Themes in Economics

Decisions made by litigants are often not beneficial to society. A rule governing fee allocation in tort cases should encourage meritorious suits and discourage frivolous suits. America is one of the only countries in the world that does not use a loser-pays rule to assign legal costs. Employing a loser-pays rule could make the legal system more efficient and more equitable. The effect of a loser-pays rule is analyzed with economic theory and empirical evidence. Possible limitations of the rule are also considered. A carefully applied system of loser-pays may positively affect the U.S. legal system.

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Terrorism And Multinational Corporations: International Business Deals With The Costs Of Geopolitical Conflict, John J. Mazzarella Apr 2005

Terrorism And Multinational Corporations: International Business Deals With The Costs Of Geopolitical Conflict, John J. Mazzarella

Major Themes in Economics

Long before U.S. Armed Forces were committed to the Global War on Terrorism, multinational corporations were habitually the targets of extremist organizations. The threat of global terrorism has a negative effect on international business and commerce. This paper explores the most significant costs of terrorism on international business and evaluates methods for minimizing the negative economic impact of global terrorism.

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The Impact Of Computers And Globalization On U.S. Wage Inequality, Jana Kerkvliet Apr 2005

The Impact Of Computers And Globalization On U.S. Wage Inequality, Jana Kerkvliet

Major Themes in Economics

The late 1970s and early 1980s was a time of rising wage inequality in the United States, particularly between skilled and unskilled workers. During this time, there was also a dramatic increase in on-the-job computer use. Many economists blamed the increase in computer use for the increase in wage inequality in the United States. That view became known as the skill-biased technological change hypothesis. But there are problems with the hypothesis in nearly every dimension of wage inequality in the U.S. labor market. A better explanation for the increase in wage inequality is the globalization of the U.S. economy.

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The Efficient Markets Hypothesis Dethroned, Jed Ellerbroek Apr 2005

The Efficient Markets Hypothesis Dethroned, Jed Ellerbroek

Major Themes in Economics

Impending changes in social security as well as in corporate and government policies are making individuals more responsible for their retirement savings. As a result, knowledge of investing concepts and financial markets is more important than ever before. The efficient markets hypothesis, the dominant financial markets theory, is described and analyzed. In doing so assumptions are questioned and the three forms of market efficiency are evaluated in quantitative and qualitative fashion to determine whether the efficient markets hypothesis is an accurate view of financial markets. This paper concludes that the efficient markets hypothesis does not accurately describe U.S. stock market …

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Socioeconomic Attainments Of Africans Versus African-Americans In The United States, Azeb Berhane Apr 2005

Socioeconomic Attainments Of Africans Versus African-Americans In The United States, Azeb Berhane

Sociology & Criminal Justice Theses & Dissertations

Using data from the Integrated Public Use Microdata Series (IPUMS) of the 2000 U.S. census, the socioeconomic attainments of African immigrants was compared to African Americans in the United States. This comparison was made within the context of assimilation perspective, human capital perspective, and the family investment model. Consistent with previous research findings, the current study found that African immigrants have higher educational attainments than African-Americans in the United States. However, when breaking down the African group by country of birth, African-Americans were found to have higher educational attainments than a few African countries. Generally, the results reveal that African …

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New Mexico Labor Market Review 03-31-2005, New Mexico Department Of Labor Mar 2005

New Mexico Labor Market Review 03-31-2005, 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 February 2005.

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The Expansion Of Intellectual Property Rights By International Agreement: A Case Study Comparing Chile And Australia’S Bilateral Fta Negotiations With The U.S., Ralph G. Fischer Mar 2005

The Expansion Of Intellectual Property Rights By International Agreement: A Case Study Comparing Chile And Australia’S Bilateral Fta Negotiations With The U.S., Ralph G. Fischer

ExpressO

This paper attempts to address the ongoing debate regarding the expansion of intellectual property rights (IPRs) through international negotiations. Commentators have described three theories that purport to explain the growing scope of IPRs in international law, as reflected in international agreements: that these agreements reflect coercion by economically powerful nations; that they are the products of lobbying by multinational corporations; and that they represent autonomous, welfare-enhancing instruments that benefit all parties. The article tests these theories by using a case study comparing free trade agreement negotiations that the United States recently concluded with a less developed country, Chile, and with …

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Insider Trading: Hayek, Virtual Markets And The Dog That Did Not Bark, Henry G. Manne Mar 2005

Insider Trading: Hayek, Virtual Markets And The Dog That Did Not Bark, Henry G. Manne

ExpressO

This Essay briefly reexamines the great debates on the role of insider trading in the corporate system from the perspectives of efficiency of capital markets, harm to individual investors, and executive compensation. The focus is on the mystery of why trading by all kinds of insiders as well as knowledgeable outsiders was studiously ignored by the business and investment communities before the advent of insider trading regulation. It is hardly conceivable that officers, directors, and controlling shareholders would have remained totally silent in the face of widespread insider trading if they had seen the practice as being harmful to the …

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