Economic Theory Commons^™

Current Account Balances, Financial Development And Institutions: Assaying The World “Saving Glut”, Menzie David Chinn, Hiro Ito

Economics Faculty Publications and Presentations

We critically assess several of the key assertions underlying the global saving glut hypothesis. First, we investigate whether the behavior of the U.S. current account behavior is anomalous in light of previous industrial country experience. Second, we determine whether East Asian current account balances are predictable using standard macroeconomic variables, augmented with institutional factors. Finally, we investigate whether higher levels of financial development in key East Asian economies would result in smaller current account surpluses. We find that a one percentage-point increase in the budget balance would increase the current account balance by 0.10 to 0.49 percentage-points for industrialized countries, …

Can We Talk? Feminist Economists In Dialogue With Social Theorists, Julie A. Nelson

Economics Faculty Publication Series

The article focuses on the issues regarding the social and political theory of feminism. It has been mentioned that political action will be dynamized rather than compromised by a more alive observation of economic organizations and activities. The author has suggested that feminist social theorists across the disciplines must join the several feminist economists who are dropping the negative one-size-fits-all prescription of protection from markets. It is essential to have more positive results in the complex contemporary economies.

Weak Monotonicity Characterizes Deterministic Dominant-Strategy Implementation, Sushil Bikhchandani, Shurojit Chatterji, Ron Lavi, Ahuva Mu'alem, Noam Nisan, Arunava Sen

Research Collection School Of Economics

We characterize dominant-strategy incentive compatibility with multidimensional types. A deterministic social choice function is dominant-strategy incentive compatible if and only if it is weakly monotone (W-Mon). The W-Mon requirement is the following: If changing one agent's type (while keeping the types of other agents fixed) changes the outcome under the social choice function, then the resulting difference in utilities of the new and original outcomes evaluated at the new type of this agent must be no less than this difference in utilities evaluated at the original type of this agent.

Message Spaces For Perfect Correlated Equilibria, Shurojit Chatterji, Srihari Govindan

Research Collection School Of Economics

We show that a perfect correlated equilibrium distribution of an N-person game, as defined by Dhillon and Mertens (1996) can be achieved using a finite number of copies of the strategy space as the message space.

Do Children's Hospitals Have Lower Mortality Rates? Evidence From The 2003 Kids' Inpatient Database, Christiane Labonte

Renée Crown University Honors Thesis Projects - All

Objective: To compare mortality rates at children’s hospitals and non-children’s hospitals.

Data Source: I used the Healthcare Cost and Utilization Project Kids’ Inpatient Database (KID) released by the Agency for Healthcare Research and Quality in 2003. Thirty-six states participated in the HCUP in 2003, which included 3,438 hospitals, and 2,984,129 pediatric discharges.

Study Design: I hypothesized that mortality rates at children’s hospitals would be lower than mortality rates at non-children’s hospital because children’s hospitals have more specialized inputs, from the clinical training of sub-specialists and nurses to advanced machines and diagnostic tools, and may use these inputs more productively. To …

Nicaragua's Survival: Choices In A Neoliberal World, Stanley G. Hash Jr.

Graduate Program in International Studies Theses & Dissertations

In January 1990 the Nicaraguan electorate chose to abandon the failing Sandinista Revolution in favor of the economic neoliberal rubric. However, since 1990 Nicaragua's economy has been stagnant. Today it is one of the four poorest states in Latin America having been one of the wealthiest before 1975.

The purpose of this work is to explain Nicaragua's poor performance since 1990. The hypothesis is that domestic independent variables are central to recovery and are the underlying causes of Nicaragua's failure to fully recover.

The abuses of the Somozas' ancien régime before the 1979 revolution are well documented; less well documented …

The Micro-Foundations Of Intertemporal Price Discrimination, Winston T. H. Koh

Research Collection School Of Economics

This paper investigates the optimality of intertemporal price discrimination for a durable-good monopoly in a model where infinitely-lived households face an intertemporal budget constraint, and consume both durable goods and non-durable goods. We prove that the optimal price of the durable good is not constant, and may decrease or increase over time. Some households may choose to purchase the durable good at a later date, and pay lower or higher prices, since the gain in discounted utility of consuming more of the non-durable good more than compensates for the loss in utility from delaying the consumption of the durable good. …

Functional Sunspot Equilibria, Shurojit Chatterji, Subir Chattopadhyay

Research Collection School Of Economics

Consider a one step forward looking model where agents believe that the equilibrium values of the state variable are determined by a function whose domain is the current value of the state variable and whose range is the value for the subsequent period. An agent's forecast for the subsequent period uses the belief, where the function that is chosen is allowed to depend on the current realization of an extrinsic random process, and is made with knowledge of the past values of the state variable but not the current value. The paper provides (and characterizes) the conditions for the existence …

More Efficient Estimation In Nonparametric Regression With Nonparametric Autocorrelated Errors, Liangjun Su, Aman Ullah

Research Collection School Of Economics

We define a three-step procedure for more efficient estimation of the nonparametric regression mean with nonparametric autocorrelated errors. The procedure is based upon a nonparametric prewhitening transformation of the dependent variable that has to be estimated from the data by a local polynomial technique. We establish the asymptotic distribution of our estimator under weak dependence conditions and show that it is more efficient than the conventional local polynomial estimator. Furthermore, we consider criterion functions based on the linear exponential family, which include the local polynomial least squares criterion as a special case. Simulation evidence suggests that significant gains can be …

Reform In Lieu Of Change: Tastes Great, Less Filling, Jonathan G.S. Koppell

Publications from President Jonathan G.S. Koppell

In this response to Light, Koppell argues that the increasing frequency of reform may reflect Congress's inability to make significant changes to the substance of entrenched government programs. Moreover, he observes that the more profound evolution in government has been the movement toward the market-based provision of services, which has created a demand for new competencies in the public sector.

Matching And Anonymity, C. D. Aliprantis, Gabriele Camera, D. Puzzello

Economics Faculty Articles and Research

This work introduces a rigorous set-theoretic foundation of deterministic bilateral matching processes and studies systematically their properties. In particular, it formalizes a link between matching and informational constraints by developing a notion of anonymity that is based on the agents' matching histories. It also explains why and how various matching processes generate different degrees of "informational isolation" in the economy. We illustrate the usefulness of our approach to modeling matching frameworks by discussing the classical turnpike model of Townsend.

Interest Rates Articles, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Tymoigne, É. (2006, November). Fisher’s theory of interest rates and the notion of “real”: A critique (Working Paper No. 483). Annandale-on-Hudson, NY: Levy Economics Institute of Bard College.

• Hannsgen, G. (2004, July). Gibson’s paradox, monetary policy, and the emergence of cycles (Working Paper No. 410). Annandale-on-Hudson, NY: Levy Economics Institute of Bard College.

• Tsiang, S. C. (1989). Loanable funds [Excerpt]. In J. Eatwell, M. Milgate, & P. Newman (Eds.), Money: The New Palgrave (pp. xxx–xxx). London, England: Palgrave Macmillan.

• Cagan, P. (1989). Monetarism [Excerpt]. In J. Eatwell, M. Milgate, & P. Newman (Eds.), …

Aaron Peron Ogletree On A Brief History Of Neoliberalism By David Harvey. Oxford, Uk: Oxford University Press, 2005. 256 Pp., Aaron Peron Ogletree

Human Rights & Human Welfare

A review of:

A Brief History of Neoliberalism by David Harvey. Oxford, UK: Oxford University Press, 2005. 256 pp.

Trade Lectures, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Shaikh, A., PhD. (n.d.). Symposium: Notes mentioning Steve Pressman and aggregate production functions (APFs) [Unpublished handwritten notes]. Manuscript.

• Shaikh, A., PhD. (n.d.). Handwritten notes on Steedman, Ian (1979), Trade amongst growing economies [Unpublished handwritten notes]. Manuscript.

• Felipe, J. (2002, January 15). Email to Anwar Shaikh discussing equations including Cobb–Douglas, translog, and CES [Unpublished email correspondence].

• Shaikh, A., PhD. (n.d.). Handwritten notes on aggregate production functions [Unpublished handwritten notes]. Manuscript.

• Shaikh, A., PhD. (n.d.). I: The secret of growth accounting [Unpublished handwritten notes]. Manuscript.

• Shaikh, A. (2001, December 4). Email to Jesus …

Macro And Capacity Utilization, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Palumbo, A., & Trezzini, A. (2003). Growth without normal capacity utilization [Annotated journal article]. The European Journal of the History of Economic Thought, 10(1), 109–135.

• Shaikh, A., PhD. (n.d.). Part II: Demand-determined growth [Annotated page].

• Halevi, J., Laibman, D., & Nell, E. J. (Eds.). (1992). Beyond the steady state: A revival of growth theory [Title page]. Macmillan.

• Flaschel, P., & Skott, P. (2006). Steindlian models of growth and stagnation [Annotated excerpts from journal article]. Metroeconomica, 57(3), 303–338.

Capital Stocks Spreadsheets Calculations And Simulations, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Capital Stock Spreadsheets: Simulations and Calculations, by A. Shaikh (2006, October). Unpublished manuscript.
• Fixed Business Capital in the United States, 1925–65, by Bureau of Economic Analysis (1967, February). Survey of Current Business, 47(2), 20–24. U.S. Department of Commerce, Office of Business Economics.
• Impact of Redefinition (i.e., Adjustment) of Prices on K, by A. Shaikh (2006, September 4). Unpublished manuscript.
• Rolling Base Year Measures of the Average Depreciation Rate, by A. Shaikh (2006, October 17). Unpublished manuscript.
• A Guide to the Use of Chain Aggregated NIPA Data, by K. Whelan (2000, p. …

An Agent-Based Model Of Trade With Distance-Based Transaction Cost, Kumar Venkat, Wayne W. Wakeland

Complex Systems Faculty Publications and Presentations

This paper describes an application of agent-based modeling to investigate the effect of a distance-based transaction cost on trade. Long-distance trade is rapidly increasing, but may ultimately be constrained by our ability to move material goods between sellers and buyers. Unlike information exchange, trade in material goods is dependent on the price of oil and vulnerable to future scarcities of oil. In addition, there are growing concerns about greenhouse gas emissions from long-distance transportation. Our purpose in this study is to take the first step in understanding the impact of a distance constraint on free global trade using a simple …

Teaching The Ethical Foundations Of Economics: The Principles Course, Jonathan B. Wight

Economics Faculty Publications

When we analyze the source of humor, one ingredient is surely incongruity, the juxtaposition of opposites. So when Tom Lehrer, the consummate Harvard mathematician, openly calls for plagiarism, this is funny because it is exactly the opposite of what we expect - it is absurd. And yet, from the viewpoint of modern economics, is plagiarism really so absurd? We teach our students to maximize short-term profits (in a moral vacuum). We drill them that producers minimize private costs of production (without reference to ethical codes of conduct). We expect economic agents to operate with atomistic selfishness, assuring them that this …

Capital Stock Typed Text And Notes, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Capital Stock: Typed Texts and Notes, by A. Shaikh (n.d.). Unpublished manuscript.
• Price Index Examples, by A. Shaikh (2006, August 4). Unpublished manuscript.
• Traditional and Quality-Adjusted Price Indexes for Consumer Goods, by A. Shaikh (2006, August 5). Unpublished manuscript.
• Quality Adjustment for Capital Goods, Using Relative Profits, by A. Shaikh (2006, August 4). Unpublished manuscript.
• Aggregation and Adding Up, by A. Shaikh (2006, October 25). Unpublished manuscript.
• Nominal and Real Chain Aggregates, by A. Shaikh (2006, September 28). Unpublished manuscript.
• Chain Index Notes, by A. Shaikh (2000). Unpublished manuscript.
• Formulas …

Choice Of Technique + Capital Valuation, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (1978, June 30). Notes on fixed capital: Outline [Handwritten notes].

• Shaikh, A. (1979, October 25). Fixed capital and discounting [Handwritten notes].

• Shaikh, A. (n.d.). Notes on depreciation [Handwritten notes].

• Shaikh, A. (1984, February 28). Paul Swanson dissertation: “A study of fixed capital and value theory” [Handwritten notes].

• Shaikh, A. (n.d.). Collective, law of one price, and capital stock (Sraffa and Marx) [Handwritten notes].

• Shaikh, A. (2006, July 21). Choice of technique and capital valuation [Handwritten notes].

• Shaikh, A. (2006, July 21). Price and quality [Handwritten notes].

• Shaikh, …

Growth, Eff Dd + Frop, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2001, April 23). Solow/Swan growth model [Handwritten notes].

• Shaikh, A. (2003, July 15). General/super stable growth (expectations) plans system [Handwritten notes].

• Shaikh, A. (2003, July 15). Growthdynamics1.prg: EViews 4.1 model documentation and variables [Software program printout].

• Shaikh, A. (n.d.). Output and capacity; excess demand; capacity utilization [Graph printouts].

• Shaikh, A. (2003, August 3). Explaining real investment [Unpublished manuscript].

• Shaikh, A. (2000, September 27). Growth rates and social savings rate [Handwritten notes].

• Shaikh, A. (2000, November 1). The Cambridge school of Keynesian economics and the new economics (Luigi Pasinetti) …

Smith’S Humean Criticism Of Hume’S Account Of The Origin Of Justice, Spencer J. Pack, Eric Schliesser

Economics Faculty Publications

Adam Smith criticizes David Hume's account of the origin of and continuing adherence to the rule of law for being not sufficiently Humean. Hume explained that adherence to the rule of law originated in the self-interest to restrain self-interest. According to Smith, Hume does not pay enough attention to the passions of resentment and admiration, which have their source in the imagination. Smith offers a more naturalistic and evolutionary account of the psychological preconditions of the establishment and morality of justice than Hume had. Smith severs the intimate connection that Hobbes and Hume made between justice and property.