Economics Commons^™

Incentives For Experimenting Agents, Johannes Hörner, Larry Samuelson

Cowles Foundation Discussion Papers

We examine a repeated interaction between an agent, who undertakes experiments, and a principal who provides the requisite funding for these experiments. The agent’s actions are hidden, and the principal, who makes the offers, cannot commit to future actions. We identify the unique Markovian equilibrium (whose structure depends on the parameters) and characterize the set of all equilibrium payoffs, uncovering a collection of non-Markovian equilibria that can Pareto dominate and reverse the qualitative properties of the Markovian equilibrium. The prospect of lucrative continuation payoffs makes it more expensive for the principal to incentivize the agent, giving rise to a dynamic …

Incentives For Experimenting Agents, Johannes Hörner, Larry Samuelson

Cowles Foundation Discussion Papers

We examine a repeated interaction between an agent, who undertakes experiments, and a principal who provides the requisite funding for these experiments. The agent’s actions are hidden, and the principal, who makes the offers, cannot commit to future actions. We identify the unique Markovian equilibrium (whose structure depends on the parameters) and characterize the set of all equilibrium payoffs, uncovering a collection of non-Markovian equilibria that can Pareto dominate and reverse the qualitative properties of the Markovian equilibrium. The prospect of lucrative continuation payoffs makes it more expensive for the principal to incentivize the agent, giving rise to a dynamic …

Incentives For Experimenting Agents, Johannes Hörner, Larry Samuelson

Cowles Foundation Discussion Papers

We examine a repeated interaction between an agent, who undertakes experiments, and a principal who provides the requisite funding for these experiments. The repeated interaction gives rise to a dynamic agency cost — the more lucrative is the agent’s stream of future rents following a failure, the more costly are current incentives for the agent, giving the principal an incentive to reduce the continuation value of the project. We characterize the set of recursive Markov equilibria. We show that there are non-Markov equilibria that make the principal better off than the recursive Markov equilibrium, and that may make both players …

Possible Macroeconomic Consequences Of Large Future Federal Government Deficits, Ray C. Fair

Cowles Foundation Discussion Papers

This paper uses a multicountry macroeconometric model to analyze possible macroeconomic consequences of large future U.S. federal government deficits. The analysis has the advantage of accounting for the endogeneity of the deficit. In the baseline run, which assumes no large tax increases or spending cuts and no bad dollar and stock market shocks, the debt/GDP ratio rises substantially through 2020. The estimates from this run are in line with other estimates. Various experiments off the baseline run are then done. If the dollar depreciates, inflation increases but the effect on the debt/GDP ratio is modest. It does not appear that …

Has Macro Progressed?, Ray C. Fair

Cowles Foundation Discussion Papers

There have been a number of recent papers arguing that there has been considerable convergence in macro research and to the good. This paper considers the question whether what has been converged to is good. Has progress been made in understanding how the macro economy works?

Counting On Care Work: Human Infrastructure In Massachusetts, Randy Albelda, Mignon Duffy, Nancy Folbre

Center for Social Policy Publications

In Massachusetts, as in every other place in the world, all children need to be cared for and educated, everybody has physical and mental health needs that require attention, and some individuals need assistance with the daily tasks of life because of illness, age, or disability. The labor of meeting these needs – which we call care work – is a complex activity that has profound implications for personal, social and economic well-being. Care work is not just a cornerstone of our economy – it is a rock-bottom foundation. Care work provides the basis for our human infrastructure, and we …

How Much Do Trading Partners Matter For Economic Growth? By Vivek Arora And Athanasios Vamvakidis: A Review, D. J. Yilkudi

Economic and Financial Review

The paper is a review of the paper "How much do trading partners matter for economic growth? by Vivek Arora and Athanasios Vamvakidis". The paper empirically examined the extent to which a country's long-term economic growth was influenced by the economic fortune of its trading partners. The study used panel data for over 100 countries to see if trading partners' growth had a strong effect on domestic growth. A strong relationship was found between the economic growth of a country and the economic conditions of its trading partners.

Testing Structural Change In Conditional Distributions Via Quantile Regressions, Liangjun Su, Zhijie Xiao

Research Collection School Of Economics

We propose tests for structural change in conditional distributions via quantile regressions. To avoid misspecification on the conditioning relationship, we construct the tests based on the residuals from local polynomial quantile regressions. In particular, the tests are based upon the cumulative sums of generalized residuals from quantile regressions and have power against local alternatives at rate n−1/2. We derive the limiting distributions for our tests under the null hypothesis of no structural change and a sequence of local alternatives. The proposed tests apply to a wide range of dynamic models, including time series regressions with m.d.s. errors, as well as …

Trade Openness, Capital Mobility, And The Sacrifice Ratio, Joseph P. Daniels, David D. Vanhoose

Economics Faculty Research and Publications

This paper develops and evaluates empirically the implications of a theoretical model of an open economy in which variations in both trade openness and capital mobility can influence the sacrifice ratio. Key predictions forthcoming from the model are that both forms of globalization can independently affect the sacrifice ratio, once the influences of the level of central bank independence and the degree of wage stickiness in nations’ economies are taken into account. Examination of cross-country data encompassing 58 disinflations for 16 countries yields evidence consistent with these essential predictions of the theoretical framework.

Natural Resources And Wealth Of The Democratic Republic Of Congo (Drc): Of Benefit To Whom?, Nicola Colbran

Human Rights & Human Welfare

When asked to discuss the humanitarian tragedy in the DRC, the question really is where to start? The article by Adam Hochschild discusses some of the most horrific events and experiences imaginable: widespread killings of unarmed civilians, rape, torture and looting, the recruitment of child soldiers, and the forced displacement of hundreds of thousands of people. The immediate human response is who is to blame, how did it happen and how can the world apparently do nothing?

Human Rights Law On Trial In The Drc, William Paul Simmons

Human Rights & Human Welfare

The ongoing tragedy in Eastern Congo contains so many tragic lessons that it should shake to their very foundations all comfortable ideologies about human rights and politics. The atrocities in the DRC should implicate all but have so far resulted in almost limitless impunity. Here, I briefly put human rights law on trial for its role in perpetuating this tragedy.

Convergence Between The Business Cycles Of New European Member States And The "Euro" Business Cycle, Alain Safa, Marie-Jose Rinaldi-Larribe, Nathalie Hilmi

Topics in Middle Eastern and North African Economies

No abstract provided.

Bilateral Trade Flows Of The Gulf Cooperation Council Countries: A New Approach To Gravity Model, Aysu Insel, Mahmut Tekce

Topics in Middle Eastern and North African Economies

No abstract provided.

Darfur: Rainfall And Conflict, Michael Kevane, Leslie Gray

Topics in Middle Eastern and North African Economies

No abstract provided.

When The Twain Shall Meet: Middle East Area Studies And The Discipline Of Economics, Karen Pfeifer

Topics in Middle Eastern and North African Economies

No abstract provided.

Macroeconomic Implications Of Remittances In Mena And Mediterranean Countries, Claude Berthomieu, Anna Tykhonenko

Topics in Middle Eastern and North African Economies

No abstract provided.

Middle Eastern Assimilation, Migration And Trade To Europe And North America, Hisham Foad

Topics in Middle Eastern and North African Economies

No abstract provided.

What Do We Know About Contracting Out In The United States? Evidence From Household And Establishment Surveys, Matthew Dey, Susan N. Houseman, Anne E. Polivka

Upjohn Institute Working Papers

A variety of evidence points to significant growth in domestic contracting out over the last two decades, yet the phenomenon is not well documented. In this paper, we pull together data from various sources to shed light on the extent of and trends in domestic outsourcing, the occupations in which it has grown, and the industries engaging in outsourcing for the employment services sector, which has been a particularly important area of domestic outsourcing. In addition, we examine evidence of contracting out of selected occupations to other sectors. We point to many gaps in our knowledge on trends in domestic …

Simulation-Based Estimation Of Contingent-Claims Prices, Peter C. B. Phillips, Jun Yu

Research Collection School Of Economics

A new methodology is proposed to estimate theoretical prices of financial contingent claims whose values are dependent on some other underlying financial assets. In the literature, the preferred choice of estimator is usually maximum likelihood (ML). ML has strong asymptotic justification but is not necessarily the best method in finite samples. This paper proposes a simulation-based method. When it is used in connection with ML, it can improve the finite-sample performance of the ML estimator while maintaining its good asymptotic properties. The method is implemented and evaluated here in the Black-Scholes option pricing model and in the Vasicek bond and …

Estimation Of Bidder Valuations In An Fcc Spectrum Auction, Jungwon Yeo

Research Collection School Of Economics

The Federal Communications Commission (FCC) uses auctions to allocate radio spectrum frequencies to wireless service providers. The innovation of the auction design is that it offers many heterogeneous licenses simultaneously in one ascending auction. This paper develops an empirical model and procedure to estimate bidder valuations. Given that the complex nature of the auction does not admit formal modeling in a general setting, I do not explore a particular model of equilibrium bidding. Instead, I propose two revealed preference inequalities which should hold in any reasonable model of these auctions. The .rst inequality requires that a bidder never bids on …

Strategies For Improving Economic Mobility Of Workers: Bridging Research And Practice, Maude Toussaint-Comeau Editor, Bruce D. Meyer Editor

Upjohn Press

The contributors to this book provide a provocative assessment of the effectiveness of various policies and practices designed to help disadvantaged segments of our population overcome the obstacles in their path to upward economic mobility.

The Civic Innovation Lab: Economic Impact, Ziona Austrian Ph.D.

All Maxine Goodman Levin School of Urban Affairs Publications

The services provided to entrepreneurs through funding and mentoring between 2004 and 2008 by the Civic Innovation Lab resulted in the following economic impacts for 2008: output impact of $9.4 million; employment impact of 128 jobs; income (household earnings) impact of $4.1 million; and a tax impact of 1.2 million ($454,000 in state and local and $734,000 in federal).

Building A Meritocracy: The American Precedent For Wealth Redistribution, Micah D. Bobo

Undergraduate Economic Review

This work investigates the use of wealth redistribution mechanisms in establishing and promoting meritocratic practices in early United States history. From the fifteenth to eighteenth century, the reward system used in exploration, colonization incentives, and land redistribution techniques are examined. During the eighteenth and nineteenth century, the effects of industrialization and education on social mobility are reviewed. Finally, the social and economic factors resulting in southern secession, particularly slavery, are examined. While the concept may be unpopular in modern society, wealth redistribution mechanisms were essential to cultivating merit-based social mobility and overall societal stability throughout the period covered.

Economic Policies Under Shoaib, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

The period from 1958 to 1969 during which President Ayub ruled and Mr. Shoaib served as Finance Minister for most of these years is considered as the golden era of Pakistan’s economic history. The period had strong macro economic management and the economic indicators were extremely impressive. Agriculture grew at a respectable 4 percent while remarkable rates were achieved in manufacturing (9 percent) and trade (7 percent) GNP growth rates exceeded 6 percent on average throughout the period. Economic growth was very strong on all fronts. Structural changes that took place under the stewardship of Mr. Shoaib laid the foundation …

Post-Structural Logic In Marx's Theory Of Value, David Kristjanson-Gural

Faculty Journal Articles

In this essay I use Louis Althusser’s observation concerning the synchrony and diachrony of Marx’s logic in Capital to detail changes in the meaning of value, defined as socially necessary abstract labor time, throughout the three volumes of Capital. I use this analysis to identify three common types of logical error in reading Marx that result from failing to recognize this aspect of his methodology, and I provide examples to illustrate each of these common errors. I then argue that, by recognizing the synchrony and diachrony of Marx’s method, it is possible to read value theory in a way that …

Education And Energy Innovation: Nshe’S Central Role In Transforming Nevada’S Economy, James Croce

UNLV Renewable Energy Symposium

The 3rd Annual Renewable Energy Symposium took place on the UNLV campus August 11 & 12. The event focused on renewable energy production in Nevada, the US Southwest, and renewable research projects nationwide. The event was a great success with over 200 individuals in attendance.

Inflammation And Infection Do Not Promote Arterial Aging And Cardiovascular Disease Risk Factors Among Lean Horticulturalists, Michael Gurven, Hillard Kaplan, Jeffrey Winking, Daniel Eid Rodriguez, Sarinnapha Vasunilashorn, Jung Ki Kim, Caleb Finch, Eileen M. Crimmins

ESI Publications

Background: Arterial aging is well characterized in industrial populations, but scantly described in populations with little access to modern medicine. Here we characterize health and aging among the Tsimane, Amazonian forager-horticulturalists with short life expectancy, high infectious loads and inflammation, but low adiposity and robust physical fitness. Inflammation has been implicated in all stages of arterial aging, atherogenesis and hypertension, and so we test whether greater inflammation associates with atherosclerosis and CVD risk. In contrast, moderate to vigorous daily activity, minimal obesity, and low fat intake predict minimal CVD risk among older Tsimane.

Methods and Findings: Peripheral arterial …

Executive Perks: Compensation And Corporate Performance In China, Ilan Alon, Pattarin Adithipyangkul, Tianyu Zhang

Faculty Publications

Many studies have examined CEO compensation in developed countries, where a long tradition of disclosure renders data readily available. In emerging economies, particularly in China, where market-based compensation is a relatively new phenomenon, there are few studies of CEO compensation. In addition, information on the use of non-cash compensation is almost absent. Building on the general literature on CEO compensation, and Chinese economic and management studies, this article singularly contributes to the extant literature by (1) examining the motivational determinants of CEO perk compensation, on the one hand, and (2) exploring the relative contribution of perks to performance. We anticipate …

Review Of Good Money: Birmingham Button Makers, The Royal Mint, And The Beginnings Of Modern Coinage, 1775-1821 By George Selgin, Jeffrey Rogers Hummel

Faculty Publications

No abstract provided.

New Mexico Labor Market Review 08-04-2009, New Mexico Department Of Workforce Solutions

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 June 2009.