Economic Theory Commons^™

Are All R&D Dollars Created Equal?: A Look At The Effect Of Federal Investment On Patent Success, Casey J. O'Neil

Pepperdine Policy Review

No abstract provided.

Interest Rates Empirical Evidence, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Gibson's paradox by Anwar Shaikh, PhD (Unpublished manuscript, June 13, 2007) (22-35_Inte... p. 4)
• Interest rate empirical patterns by Anwar Shaikh, PhD (Unpublished manuscript, June 13, 2007) (22-35_Inte... p. 9)
• Our interest rate theory by Anwar Shaikh, PhD (Unpublished manuscript, June 13, 2007) (22-35_Inte... p. 11)
• Bond arbitrage empirical test by Anwar Shaikh, PhD (Unpublished manuscript, July 20, 2007) (22-35_Inte... p. 19)
• Real long term bond prices by Anwar Shaikh, PhD (Unpublished handwritten notes, August 7, 2012) (22-35_Inte... p. 26).

Inet Grant Completion, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2012, December 9). Final grant completion report for INET grant ID #IN011-00056 and #IN012-0040 (Memorandum) (2). New School University Archives.
• Institute for New Economic Thinking. (2012, November 29). Grant award letter to Mr. Anwar Shaikh (RE: INO12-00040) (Manuscript) (3, 4). New School University Archives.
• Institute for New Economic Thinking. (2012, November 17). Grant terms and conditions agreement (Grant ID #INO12-00040) (Manuscript signed by Anwar Shaikh, PhD, with a handwritten note dated December 21, 2012) (5, 6). New School University Archives.
• Department of the Treasury, Internal Revenue Service. (2012, November 10). Request for taxpayer identification number …

Text Ch 6 Profit Capital, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2012, February 6). Theories of profit and capital (Unpublished manuscript).
• Keynes, J. M. (1976). A treatise on money. Macmillan.
• Braham, J. (2001). Sales without profits are meaningless. Business Week.
• Marx, K. (1977). Capital: A critique of political economy (Vol. 1). Vintage Books.
• Ishikura, H. (2004). Marx's circuit of capital and Keynes's monetary theory of production. Journal of Economic Studies.
• Varian, H. L. (1993). Intermediate microeconomics: A modern approach. W. W. Norton & Company.
• Shane, S. (2008). The illusions of entrepreneurship: The costly myths that entrepreneurs, investors, and policy makers live by …

Chapter 10 Price Value Revisions, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Ch. 10: Price/value revisions. NA-24-13.

• Add survey from Jefferis (attached).

• Add survey from Jeffries (attached).

• Email from Lefteris to Anwar Shaikh regarding chapter revisions and additional empirical studies. In this message, Lefteris notes that the attachment contains a summary of empirical studies from a 2010 paper with Paitaridis and that more recent papers with Theodore are already included in the references.

• Extract from Tsoulfidis and Paitaridis, “On the labor theory of value: Statistical artefacts or regularities?” This excerpt reviews empirical studies of price-value deviations and related debates.

• References for the chapter excerpt. …

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Competition (Misc.), Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Duménil, G., Glick, M., & Lévy, D. (1997). The history of competition policy as economic history. The Antitrust Bulletin, 42(2), 373–416. Federal Legal Publications, Inc.
• Shaikh, A. (2011, November 22). ECO 104: Competition [Handwritten lecture notes, 2 pages, on lined notepaper, dated November 22, 2011; covering competition between industries, summary of phenomena, and empirical findings on profit rates]. Anwar Shaikh, Ph.D., Department of Economics, New School for Social Research. [Unpublished teaching notes.]
• Treen, M. (2010, August 16). FW: [New post] Andrew Kliman and the "Neo-Ricardian" attack on Marxism, Pt 1 [Email forwarded to Anwar Shaikh from …

Replacement Investment, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. September 10, 1973. Gross stock and net stock project (Handwritten research notes). Unpublished work. New York, NY: New School for Social Research.
• Shaikh, A. September 28, 1979. Deriving current dollar stock from BLS data (Handwritten correspondence notes). Unpublished work. New York, NY: New School for Social Research.
• Shaikh, A. May 10, 1980. BLS data on Jack Faucett adjustments (Handwritten folder notes). Unpublished work. New York, NY: New School for Social Research.
• Shaikh, A. December 1, 1982. Note on retirements vs. business failure (Handwritten manuscript notes). Unpublished work. New York, NY: New School for Social Research. …

Buyer's Equilibrium With Capacity Constraints And Restricted Mobility: A Recursive Approach, Gabriele Camera, Jaehong Kim

ESI Working Papers

We study a decentralized trading model as in Peters (1984), where heterogeneous market participants face a trade-o between price and trade probability. We present a novel proof of existence of a unique demand vector in Nash equilibrium, based on a recursive approach that exploits the monotonicity of matching functions.

Building And Rebuilding Trust With Promises And Apologies, Eric Schniter, Roman M. Sheremeta, Daniel Sznycer

ESI Working Papers

Using trust games, we study how promises and messages are used to build new trust where it did not previously exist and to rebuild damaged trust. In these games, trustees made non-binding promises of investment-contingent returns, then investors decided whether to invest, and finally trustees decided how much to return. After an unexpected second game was announced, but before it commenced, trustees could send a one-way message. This design allowed us to observe the endogenous emergence and natural distribution of trust-relevant behaviors and focus on naturally occurring remedial strategies used by promise-breakers and distrusted trustees, their effects on investors, and …

Too Many Cooks Spoil The Broth: How The Tragedy Of The Anticommons Emerges In Organizations, Matthew W. Mccarter, Shirli Kopelman, Thomas A. Turk, Candace Ybarra

ESI Working Papers

In organizations, conflict often revolves around commons resources because they are critical for influence, performance, and organizational survival. Research on property rights, territoriality, and social dilemmas suggests that to reduce such conflict, organizations should facilitate the (psychological) privatization of commons resources. We complement these three literatures by drawing from the legal, organizational, and social psychology literatures to model how psychologically privatizing organizational commons resources – to prevent a tragedy of the commons (an overuse problem) – can lead to the emergence of equivalently problematic tragedy in organizations: the tragedy of the anticommons (an underuse problem). Our model contributes to these …

Experimental Evidence On The Properties Of The California’S Cap And Trade Price Containment Reserve, Rachel Bodsky, Domenic Donato, Kevin James, David Porter

ESI Working Papers

We report on a series of experiments to examine the properties of California’s Reserve Sale allocation mechanism to be implemented as part of the forthcoming cap and trade program and compare it with an alternative reserve sale mechanism. The proposed reserve sale mechanism allows covered entities to purchase allowances after the primary auction sale at fixed prices. If demand for units is greater the amount supplied in the reserve sale, a Proportional Rationing rule is used to distribute allowances based on submitted request for units. This rule is contrasted with to an alternative rule, Equal Rationing in which allowances are …

Information Effects In Multi-Unit Dutch Auctions, Joy A. Buchanan, Steven Gjerstad, David Porter

ESI Working Papers

We design a multi-unit descending-price (Dutch) auction mechanism that has applications for resource allocation and pricing problems. We address specific auction design choices by theoretically and experimentally determining optimal information disclosure along two dimensions. Bidders are either informed of the number of bidders in the auction, or know that it is one of two possible sizes; they also either know the number of units remaining for sale or are unaware of how many units have been taken by other bidders. We find that revealing group size decreases bids, and therefore revenue, if units remaining are not shown. When group size …

Do Liars Believe? Beliefs And Other-Regarding Preferences In Sender-Receiver Games, Roman M. Sheremeta, Timothy W. Shields

ESI Working Papers

We examine subjects‟ behavior in sender-receiver games where there are gains from trade and alignment of interests in one of the two states. We elicit subjects‟ beliefs, risk and other-regarding preferences. Our design also allows us to examine the behavior of subjects in both roles, to determine whether the behavior in one role is the best response to the subject‟s own behavior in the other role. The results of the experiment indicate that 60 percent of senders adopt deceptive strategies by sending favorable message when the true state of the nature is unfavorable. Nevertheless, 67 percent of receivers invest conditional …

Are You A Good Employee Or Simply A Good Guy? Influence Costs And Contract Design, Brice Corgnet, Ismael Rodriguez-Lara

ESI Working Papers

We develop a principal–agent model with a moral hazard problem in which the principal has access to a hard signal (the level of output) and a soft behavioral signal (the supervision signal) about the agent's level of effort. In our model, the agent can initiate influence activities and manipulate the behavioral signal. These activities are costly for the principal as they detract the agent from the productive task. We show that the agent's ability to manipulate the behavioral signal leads to low-powered incentives and increases the cost of implementing the efficient equilibrium as a result. Interestingly, the fact that manipulation …

Trade, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Trade, compiled by Anwar Shaikh, containing working papers, lecture notes, correspondence, and handwritten research notes on international trade, exchange rates, comparative and absolute advantage, purchasing power parity, and trade balances. The materials date from 2005 through 2012 and are associated with Anwar Shaikh’s research and teaching at the New School for Social Research in New York.
• Trade classical equations, Anwar Shaikh, 2012-05-07. Unpublished manuscript.
• Classical trade theory, Anwar Shaikh, 2001-10-24, revised 2008-10-07. Unpublished manuscript.
• Competition, exchange rates, and trade balances, Anwar Shaikh, undated. Unpublished manuscript.
• Automatic trade balance is a “doctrinaire delusion”, …

An Economic Perspective On Preemption, Keith N. Hylton

Faculty Scholarship

This Essay has two goals. The first is to present an economic theory of preemption as a choice among regulatory regimes. The optimal regime choice model is used to generate specific implications for the court decisions on preemption of products liability claims. The second objective is to extrapolate from the regime choice model to consider its implications for broader controversies about preemption.

The Resource Curse And Peru: A Potential Threat For The Future?, Sergio Cruz

Master's Theses

What explains the ability of some countries to successfully use their natural resources towards development and economic growth while for others stagnation and impoverishment? The resource curse theory has helped economists explain this observation. This work examines how Peru has been able to produce strong economic growth in the last 20 years despite the economy’s strong dependence on its natural resource extractive industry. Peru has been able to avoid many of the pitfalls and traps that resource curse literature considers to be detrimental to economic growth. This article examines the resource based economies of four other countries (Venezuela, Chile, Nigeria, …

Empathy-Based Conservation: An Interdisciplinary Approach To Conservation Policy And Decision-Making, Kaitlyn Delashmutt

Department of Environmental Studies: Undergraduate Student Theses

In the late 20^th century, neuroscientists in Italy discovered a neuron in the brain capable of mentally mimicking the emotions derived from the actions of others (Rizzolatti and Craighero, 2004). It is the process that makes your elbow ache when someone else knocks their elbow on the counter or the uncontrollable smile that creeps up when someone smiles at you. No questions asked, people intuitively sense what others are feeling. The old school of thought was that humans deduced through logic and reason the actions of others and interpreted the emotions through a rational process (Carew et al, 2008). …

Contributions Of Financial Sector Reforms And Credit Supply To Nigerian Agricultural Sector (1978-2009), Anthony O. Onoja, M. E. Onu, S. Ajodo-Ohiemi

CBN Journal of Applied Statistics (JAS)

This study analyzed the trends and pattern of institutional credit supply to agriculture during pre- and post-financial reforms along with their determinants. It then compared the effects of reform policies on access to institutional credits in Nigerian agricultural sector before and after the reforms (1978 - 1985; and 1986 -2009). Relying mainly on time series data from CBN and NBS, it used ordinary least squares method (linear, semi-log and double log) to model the determinants of banking sector lending to the agricultural sector during the review period. The models were subjected to several econometric tests before accepting one. Chow test …

Determinants Of Foreign Reserves In Nigeria: An Autoregressive Distributed Lag Approach, David Irefin, Baba N. Yaaba

CBN Journal of Applied Statistics (JAS)

On global scale, central banks’ holdings of foreign reserves have escalated sharply in recent years. World international reserves holdings have risen significantly from US$1.2 trillion in 1995 to nearly US$10.0 trillion in June 2011. Dominant among these reserves are concentrated in the hands of few countries. Ten major holders of foreign reserves are mostly from Asia. Oil exporting countries in Africa and the Middle East are not left out in this trend. Nigeria’s foreign reserves rose from US$5.5 billion in 1999 to US$62.40 billion in July 2008, making Nigeria the twenty-fourth largest reserves holder in the world. This pace of …

Effects Of Exchange Rate Movements On Economic Growth In Nigeria, Eme O. Akpan, Johnson A. Atan

CBN Journal of Applied Statistics (JAS)

This study investigates the effect of exchange rate movements on real output growth in Nigeria. Based on quarterly series for the period 1986 to 2010, the paper examines the possible direct and indirect relationship between exchange rates and GDP growth. The relationship is derived in two ways using a simultaneous equations model within a fully specified (but small) macroeconomic model. A Generalised Method of Moments (GMM) technique was explored. The estimation results suggest that there is no evidence of a strong direct relationship between changes in exchange rate and output growth. Rather, Nigeria’s economic growth has been directly affected by …

Exchange Rate Volatility In Nigeria: Consistency, Persistency & Severity Analyses, Babatunde Adeoye, Akinwande A. Atanda

CBN Journal of Applied Statistics (JAS)

The adoption of the International Monetary Fund (IMF) Structural Adjustment Programme (SAP) in 1986 resulted in the transition from fixed exchange rate regime to floating exchange rate regime in Nigeria. Ever since, the exchange rate of naira vis-à-vis the U.S dollar has attained varying rates all through different time horizons. On this basis, this study examines the consistency, persistency, and severity (degree) of volatility in exchange rate of Nigerian currency (naira) vis-a-vis the United State dollar using monthly time series data from 1986 to 2008. The standard Purchasing Power Parity (PPP) model was used to analyze the long-run consistency of …

Foreign Private Investment And Economic Growth In Nigeria: A Cointegrated Var And Granger Causality Analysis, F. Z. Abdullahi, S. Ladan, Haruna R. Bakari

CBN Journal of Applied Statistics (JAS)

This research uses a cointegration VAR model to study the contemporaneous long-run dynamics of the impact of Foreign Private Investment (FPI), Interest Rate (INR) and Inflation rate (IFR) on Growth Domestic Products (GDP) in Nigeria for the period January 1970 to December 2009. The Unit Root Test suggests that all the variables are integrated of order 1. The VAR model was appropriately identified using AIC information criteria and the VECM model has exactly one cointegration relation. The study further investigates the causal relationship using the Granger causality analysis of VECM which indicates a uni-directional causality relationship between GDP and FDI …

Banking Sector Credit And Economic Growth In Nigeria: An Empirical Investigation, Aniekan O. Akpansung, Sikiru J. Babalola

CBN Journal of Applied Statistics (JAS)

The paper examines the relationship between banking sector credit and economic growth in Nigeria over the period 1970-2008. The causal links between the pairs of variables of interest were established using Granger causality test while a Two-Stage Least Squares (TSLS) estimation technique was used for the regression models. The results of Granger causality test show evidence of unidirectional causal relationship from GDP to private sector credit (PSC) and from industrial production index (IND) to GDP. Estimated regression models indicate that private sector credit impacts positively on economic growth over the period of coverage in this study. However, lending (interest) rate …

Neither The Washington Nor Beijing Consensus: Developmental Models To Fit African Realities And Cultures, Sanusi L. Sanusi

CBN Journal of Applied Statistics (JAS)

No abstract provided.

Banking Reform And Its Impact On The Nigerian Economy, Sanusi L. Sanusi

CBN Journal of Applied Statistics (JAS)

No abstract provided.

Power Maximization And Size Control Of Heteroscedasticity And Autocorrelation Robust Tests With Exponentiated Kernels, Yixiao Sun, Peter C. B. Phillips, Sainan Jin

Research Collection School Of Economics

Using the power kernels of Phillips, Sun, and Jin (2006, 2007), we examine the large sample asymptotic properties of the t-test for different choices of power parameter (ρ). We show that the nonstandard fixed-ρ limit distributions of the t-statistic provide more accurate approximations to the finite sample distributions than the conventional large-ρ limit distribution. We prove that the second-order corrected critical value based on an asymptotic expansion of the nonstandard limit distribution is also second-order correct under the large-ρ asymptotics. As a further contribution, we propose a new practical procedure for selecting the test-optimal power parameter that addresses the central …

Accommodation Or Deterrence In The Face Of Commercial Piracy: The Impact Of Intellectual Property Rights (Ipr) Protections, Yuanzhu Lu, Sougata Poddar

Economics Faculty Articles and Research

In this paper, we address the issue of illegal copying or counterfeiting of the original product and Intellectual Property Rights (IPR) protections. The original product developer makes costly investment to deter piracy in a given regime of IPR protection. In the presence of a commercial pirate, we find that it is profitable for the original producer to accommodate the pirate when there is weak IPR protection, and deter when the IPR protection is strong. However, in the comparative statics analysis, we find that there is a non-monotonic relationship between the optimal level of deterrence (chosen by the original producer) and …

Cagan Type Rational Expectations Model On Time Scales With Their Applications To Economics, Funda Ekiz

Masters Theses & Specialist Projects

Rational expectations provide people or economic agents making future decision with available information and past experiences. The first approach to the idea of rational expectations was given approximately fifty years ago by John F. Muth. Many models in economics have been studied using the rational expectations idea. The most familiar one among them is the rational expectations version of the Cagans hyperination model where the expectation for tomorrow is formed using all the information available today. This model was reinterpreted by Thomas J. Sargent and Neil Wallace in 1973. After that time, many solution techniques were suggested to solve the …

A New Necessary Condition For Implementation In Iteratively Undominated Strategies, Takashi Kunimoto, Roberto Serrano

Research Collection School Of Economics

We uncover a new necessary condition for implementation in iteratively undominated strategies by mechanisms that satisfy the “best element property” where for each agent, there exists a strategy profile that gives him the highest payoff in the mechanism. This class includes finite and regular mechanisms. We conclude that either the quasilinearity-like assumptions of available sufficiency results cannot be completely dispensed with or some mechanisms that do not satisfy the best element property must be employed. We term the condition “restricted deception-proofness.” It requires that, in environments with identical preferences, the social choice function be immune to all deceptions, making it …