Economic Theory Commons^™

Tournaments With Ex Post Heterogeneous Agents, Theofanis Tsoulouhas, Kosmas Marinakis

Research Collection School Of Economics

This paper compares relative performance evaluation via tournaments to absolute performance evaluation via piece rates when agents are heterogeneous ex post, to make the point that agent heterogeneity compromises the insurance function of tournaments. In particular, we show that the more heterogeneous agents are the less insurance can be offered through tournaments and the less dominant tournaments are over piece rates. Thus, absolute performance piece rates should be preferred when agents are highly heterogeneous. However, even with heterogeneous agents, tournaments become more desirable when the number of agents or the uncertainty about the common shock increases sufficiently.

Culture Sometimes Matters: Intra-Cultural Variation In Pro-Social Behavior Among Tsimane Amerindians, Michael Gurven, Arianna Zanolini, Eric Schniter

ESI Publications

Agent-centered models usually consider only individual-level variables in calculations of economic costs and benefits. There has been little consideration of social or cultural history on shaping payoffs in ways that impact decisions. To examine the role of local expectations on economic behavior, we explore whether village affiliation accounts for the variation in dictator game offers among the Tsimane of the Bolivian Amazon independently of other factors that could confound such an effect. Our analysis shows that significant differences in altruistic giving exist among villages, village patterns are recognized by residents, and offers likely reflect variation in social expectations rather than …

The Identity Of The Generator In The Problem Of Social Cost, Rohan Pitchford, Christopher M. Snyder

Dartmouth Scholarship

One of Coase's central insights is that distinguishing between the generator and recipient of an externality is of limited value because externality problems are reciprocal. We reconsider the relevance of the identity of the generator in a model with non-contractible investment ex ante but frictionless bargaining over the externality ex post. In this framework, a party may distort its investment to worsen the other's threat point in bargaining. We demonstrate that the presence of this distortion depends, among other factors, on whether the investing party is a generator. Social efficiency can sometimes be improved by conditioning property rights on the …

Two Essays On Ipo Earnings Management, Yong Sun

Theses and Dissertations in Business Administration

This dissertation includes two essays that study initial public offerings (IPO) earnings management. The first essay examines the underwriter's certification and monitoring roles in IPO earnings management; the second essay explores the relation between IPO earnings management and post-IPO institutional ownership.

In the first essay, we investigate the certification role played by underwriters. We hypothesize that there is a negative relation between IPO earnings management and underwriter reputation and that there is a positive relation between underwriter reputation and firm operating performance. In addition, underwriters continue providing monitoring to the firms they take public. Using a sample of IPOs, we …

The Economics Of Water Utilization: Tools And Applications, Matt Bogard

Agriculture Department Seminar Series

Given worldwide problems of access to safe potable water, this presentation examines how tools of economics can aid in drafting appropriate mitigating policies. Utilizing partial equilibrium analysis, it demonstrates the role that prices play in social coordination and then applies the framework to real world examples. In addition it examines Pigouvian Taxation and Coasean Bargaining as two classic methods for dealing with externalities in the context of water pollution. Second-best solutions such as tradable permits and metered pricing by public utilities are discussed. This presentation concludes by examining the issues and challenges that policy makers face when trying to implement …

Revitalizing Deteriorated Urban Neighborhood Real Estate Markets Through Concentrated Homeownership Development: Determining The Spillover Effects Of New Homes On The Value Of Surrounding Homes, Jerry Michael Hawkins

Theses and Dissertations in Urban Services - Urban Management

The promotion of homeownership opportunities represents an important approach used by localities to support the revitalization of deteriorated urban neighborhoods. Homeownership is associated with a variety of social and economic benefits to the homeowner including increased residential stability and equity accumulation. The introduction of new homeownership opportunities into a deteriorated urban neighborhood as part of local public policy is intended to capitalize upon the anticipated positive social and economic outcomes. Such new homeownership development also presents the opportunity to generate positive spillover effects on the adjacent existing properties in the neighborhood which may ultimately result in higher real estate tax …

Pay And Performance: Among 100 Best U.S. Companies To Work For, Omair Mahmood Faisal

Undergraduate Theses and Capstone Projects

In the 21st century, world is becoming a global village and with increased competition businesses are always looking for regions with the lowest possible production costs. Appropriate compensation of U.S. employees working for major U.S. corporations is a hotly debated topic in political circles. This research focuses on the top 100 companies designated as “the best companies to work for” by Fortune Magazine for the year 2006. Performance of these companies, as measured by their return on equity, return on assets, revenue growth and earnings growth along with their profit margin is used to determine the impact on them as …

Wealth Transfer Effects Of Analysts’ Misleading Behavior, Gus De Franco, Hai Lu, Florin P. Vasvari

Research Collection School Of Accountancy

We investigate a sample of 50 firm events, identified in the Global Research Analysts Settlement, in which analysts were discovered to have acted misleadingly ex-post. In this setting, analysts' incentives caused them to issue public disclosures that differed from their private beliefs. We document that these firms' institutional holdings decline significantly during the period in which the analysts issued misleading disclosures. During this period daily small-size trades (a proxy for individual investors) are dominated by buy orders while daily large-size trades (a proxy for institutional investors) are dominated by sell orders. Short interest increases during the event period, consistent with …

Global Current Account Imbalances: American Fiscal Policy Versus East Asian Savings, Menzie David Chinn, Hiro Ito

Economics Faculty Publications and Presentations

We consider the origins of global current account imbalances. We first discuss how the expansion of the US current account deficit and the decrease in global real interest rates can be reconciled with the widespread view that American expansionary fiscal policy is partly the source of current trends. We then investigate empirically the medium-term determinants of the current account using a model that controls for factors related to institutional development. In addition to the conventional macroeconomic factors, we examine a series of environmental factors, including the degree of financial openness and the extent of legal development. We find that for …

Academic Journal Prices In A Digital Age: A Two-Sided-Market Model, Mark J. Mccabe, Christopher M. Snyder

Dartmouth Scholarship

Digital-age technologies promise to revolutionize the market for academic journals as they have other media. We model journals as intermediaries linking authors with readers in a two-sided market. We use the model to study the division of fees between authors and readers under various market structures, ranging from monopoly to free entry. The results help explain why print journals traditionally obtained most of their revenue from subscription fees. The results raise the possibility that digitization may lead to a proliferation of online journals targeting various author types. The paper contributes to the literature on two-sided markets in its analysis of …

Rationality In Economics: Constructivist And Ecological Forms, Vernon L. Smith

ESI Publications

Chapter 1: Rediscovering the Scottish Philosophers

Historical Foundations Geco 104 Fall 2008, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Anwar Shaikh. (2005, Fall). Historical foundations of political economy I: GECO 5104 (syllabus) [Unpublished course syllabus]. Author.

• Milberg, W. (2007, Fall). Historical foundations of political economy I: GECO 6104 (revised syllabus) [Unpublished course syllabus]. Author.

Sotsiologicheskii Neoinstitutsionalizm I Analiz Organizatsii (Predislovie K Razdelu), Jeffrey K. Hass

Sociology and Anthropology Faculty Publications

Доминирующей парадигмой в экономической социологии, распространившейся также в другие разделы социальных наук и политологию, является неоинсмимуционализм (neoinstitutionalism), который иногда ошибочно ассоциируют с новым институционализмом (нев institutionalism) в экономической теории. Подобно друтим социологам, неоинституционалисты удаляют большое внимание власти, культуре и исторической выгоды рассматривают не как аксиомы, а как гипотезы, подлежащие эмпирической проверке. Появившись в ответ на развитие микроэкономической теории, неоинституционализм оказался ее серьезным оппонентом, задающим и обсуждающим вопросы, которые ставят экономистов в тупик (если, конечно, последние вообще осознают их значимость).

Assorted Finance Notes, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2004). Handwritten notes on financial theory, structural models, and asset arbitrage formulas (Unpublished manuscript).
• Shaikh, A. (2000). Working paper graphs detailing actual stock prices and post-Keynesian interest rate spreads (Unpublished manuscript).
• Ibbotson Associates. (1990). Exhibit 37: Month-by-month total percentage returns on common stocks and long-term government bonds from 1926 to 1990 (Unpublished chart).
• Siegel, J. J. (1998). Excerpts on market values, corporate profitability, and country market statistics from stocks for the long run. McGraw-Hill.
• Ordine, A. (2004). Mathematical theory of interest: Test 4 sample problems, solutions, and formulas for amortization schedules and sinking funds …

Two Essays On Lead-Lag Patterns Between Trading Volume And Stock Return In China Stock Markets, Xiaotian Zhu

Theses and Dissertations in Business Administration

This dissertation systematically investigate the lead-lag relations between the trading volume and stock return patterns in China A share and B share markets through two streams of behavioral postulations. In the first part, we summarize all the potential lead-lag patterns between trading volume and stock returns and link them to the corresponding behavioral explanations. In particular, Lee and Swaminathan's (2000) Momentum Life Cycle theory best explains the strong negative relations between lagged trading volume and subsequent return in China A share market. The strong positive relations between lagged market return and subsequent trading volume found in both China's B share …

Savings Rate Of Classical Accum, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Savings rate & classical accumulation [Folder cover]. (2007, January).

• Shaikh, A. (2007, March 2). Harrod’s cyclical adjustment [Handwritten notes]. Unpublished manuscript.

• Shaikh, A. (2007, February 7). Classical accumulation with government [Handwritten notes]. Unpublished manuscript.

• Shaikh, A. (2007, January 12). Stability conditions of the post-Keynesian accumulation function [Handwritten notes]. Unpublished manuscript.

• Tullock, G. (n.d.). Government spending. In D. R. Henderson (Ed.), The concise encyclopedia of economics (Econlib edition). Liberty Fund, Inc. (Printed February 11, 2007).

• Fig06.jpg [Printed graph from JPEG image]. (2007, February 11).

• Government final consumption expenditure as a percentage …

Endogenous Savings Propensity, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Pugno, M. (1998). Harrod's economic dynamics as a persistent and regime-changing adjustment process. In G. Rampa, L. Stella, & A. P. Thirlwall (Eds.), Economic dynamics, trade and growth: Essays on Harrodian themes (pp. 152–178). Macmillan Press.
• Shaikh, A. (2007). Debutsar macro themes (Unpublished manuscript note) (p. 2).
• Robinson, J. (1965). A reconsideration of the theory of value. In J. Robinson, Collected economic papers (Vol. 3, pp. 173–181). Basil Blackwell.
• Shaikh, A. (n.d.). Endogenous variable saving propensity (Unpublished manuscript notes) (p. 1).

Marx: Of Interest Rates, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2007). Marx on the interest rate (Unpublished manuscript). New School for Social Research (2).
• Shaikh, A. (n.d.). Notes on bank deposits and loan supply (Handwritten notes) (2).

Adam Smith And Poverty, Jonathan B. Wight

English Faculty Publications

Can we end poverty in America? Does economic theory offer a solution? Humility would be a good starting place, because systemic problems like generational poverty rarely stem from single causes. Putting the broken pieces together is difficult when some edges are sharp, some are shattered, and others missing. This essay draws on insights from Adam Smith in order to examine the problem of poverty. It focuses on a case study involving Serena Robins (the real names have been altered).

Distributing Indivisible Goods Fairly: Evidence From A Questionnaire Study, Dorothea K. Herreiner, Clemens Puppe

Economics Faculty Works

We report the results of a questionnaire study on the fair distribution of
indivisible goods. We collected data from three different subject pools, first- and secondyear students majoring in economics, law students, and advanced economics students with some background knowledge of fairness theories. The purpose of this study is to assess the empirical relevance of various fairness criteria such as inequality aversion, the utilitarian principle of maximizing the sum of individual payoffs, the Rawlsian “maximin” principle of maximizing the payoff of the worst-off individual, and the criterion of envy-freeness (in the sense of Foley, 1967).

Aggregate Production Functions, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Aggregate production functions and the measurement of infrastructure productivity: A reassessment. (2000, November 1). [Unpublished manuscript].

• Correcting for biases when estimating production functions: An illusion of the laws of algebra? (2007, August 9). [Unpublished Cambridge Journal of Economics referee report]. Manuscript.

Demand-Led Policies For Growth, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Taylor, L. (2007, April 13). Demand-led policies for growth: What theory tells us [Paper].

• Shaikh, A. (2007, February 12). A synthesis of Keynesian and Harrodian growth [Paper].

• Lavoie, M. (1998). The neo-Pasinetti theorem in Cambridge and Kaleckian models of growth and distribution. Eastern Economic Journal, 24(4), 417–434.

• Lavoie, M. (1998). The neo-Pasinetti theorem in Cambridge and Kaleckian models of growth and distribution [Highlighted reprint]. Eastern Economic Journal, 24(4), 417–434.

• Shaikh, A., PhD. (2007, March 1). Debate on normal capacity utilization [Handwritten notes].

Collaboration For The Public Good: An Inquiry Into Federalism's Role In Economic Performance, James A. Cochran Ii

Seton Hall University Dissertations and Theses (ETDs)

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Cse1, Cse2, Fredholm, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Laski, K. (1981, December). Review of Essays on the theory of joint production [Highlighted Journal of Economic Literature review of Luigi L. Pasinetti's edited volume].
• JSTOR. (2007, August 17). Review of Essays on the theory of joint production: Repository information page [Access, use, and preservation information for the Laski review].
• Newton, A. (2007, July 9). Referee invitation for The weakness of the empirical labour theory of value: Evidence from the supply and use tables of the Greek economy [Cambridge Journal of Economics letter inviting Shaikh to referee manuscript 2475].
• Cambridge Journal of Economics. Referee's report: Manuscript 2475 …

Counterfeiting Truth: Statistical Reporting On The Basis Of Trust, David M. Levy, Sandra J. Peart

Jepson School of Leadership Studies articles, book chapters and other publications

Semantics and game theory offer modern approaches to very old problems.¹ David Lewis introduced game theoretic concepts into the study of language in his examination of conventions.² In this chapter we study the language of a specific sort of conventions: statistical estimators. Such estimators have the important property of being both well-defined mathematical objects and devices that form the basis of factual claims asserted and, perhaps, believed by rational agents.³ The convention we analyze allows econometric reporting to proceed on the basis of trust.⁴ In contrast with Lewis, we shall demonstrate that such a convention is …

Counterfeiting Truth: Statistical Reporting On The Basis Of Trust, Sandra J. Peart, David M. Levy

Jepson School of Leadership Studies articles, book chapters and other publications

There are two parts of our chapter. First, we review Adam Smith's argument that the evolution of monetary institutions is tied up in the problem of detecting deceitful metal offered in exchange. Smith points to no such comparable institution by which deceitful policy advocacy is detected and severely punished.⁵ Yet his recommendation for caution in the evaluation of policy advocacy points to the caution that routinely prevailed in monetary matters before public safeguards evolved to make the metallic content of the medium of exchange transparent and to preserve its quality. Second, we tum to a different sort of deceit, …

Stock Flow, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2001, February 4). Ex ante SAM [Handwritten course notes for Eco 205]. Unpublished manuscript.

• Shaikh, A. (2001, February 5). Ex ante and ex post stock-flow accounts [Course paper for Eco 205new]. Unpublished manuscript.

• Duncan. (n.d.). Conference outline [Unpublished outline]. Unpublished manuscript.

• Shaikh, A. (2007, March 13). Ch. 11 stock flow accounts [Book chapter manuscript]. Unpublished manuscript.

• Shaikh, A. (2007, March 22). Classical accounting and national income accounts [Unpublished paper]. Unpublished manuscript.

• Shaikh, A. (2007, February 21). Ch. 11 stock flow accounts [Book chapter manuscript]. Unpublished manuscript.

• Shaikh, A. …

Interest Rate Hicks, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (2007). Theories of interest rates: Expectations and conventions in interest rate theories (Unpublished manuscript) (22-25_Inte... p. 2).
• Dodds, J. C., & Ford, J. L. (1992). Expectations, uncertainty and the term structure of interest rates. Taylor & Francis (22-25_Inte... p. 2).
• Ford, J. L., & Stark, T. (1967). Long and short-term interest rates: An econometric study. Augustus M. Kelley (22-25_Inte... p. 3).
• Ciocca, P., & Nardozzi, G. (1996). The high price of money: An interpretation of world interest rates. Clarendon Press (22-25_Inte... p. 3).
• Patinkin, D. (1972). Studies in monetary economics. Harper …

Interest Rate Theory Ii, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Competition, finance and interest rates v2 by Anwar Shaikh, PhD (Unpublished manuscript, July 16, 2007) (22-39_Int ... p. 3)
• Interest rates and Gibson's paradox by Anwar Shaikh, PhD (Unpublished handwritten notes, June 29, 2007) (22-39_Int ... p. 12)
• Theories of interest rates by Anwar Shaikh, PhD (Unpublished manuscript, July 5, 2007) (22-39_Int ... p. 13)
• Difference between bond ROR's and YTM's by Anwar Shaikh, PhD (Unpublished handwritten notes, November 24, 2004) (22-39_Int ... p. 17)
• Profit rates, interest rates, and arbitrage by Anwar Shaikh, PhD (Unpublished handwritten notes, June 13, 2007) (22-39_Int ... p. 22)
• Bond market …

Part Ii Turbulent Macrodynamics, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Shaikh, A., PhD. (n.d.). Part II: Turbulent macrodynamics [Folder cover].

• Shaikh, A., PhD. (2007, February 17). Part III: Turbulent macrodynamics [Outline, pp. 7–8, with handwritten notes].

• Shaikh, A., PhD. (2004, October; 2007, February 17). Outline: The economic analysis of the developed world [Outline].