Economic Theory Commons^™

Essay I. Intra-Industry Contagion And Competitive Effects Associated With Corporate Liquidation Announcements: Does Shareholder Governance Influence The Results? Essay Ii. Investors' Pricing Of Exchange Rate Risk In U. S. Firms That File For Bankruptcy, J. Terry Ray

Theses and Dissertations in Business Administration

Essay I. Intra-industry contagion and competitive effects associated with corporate liquidation announcements: Does shareholder governance influence the results? This essay extends earlier research by investigating the role shareholder governance may play in the abnormal stock returns of the liquidating firms' competitors. The empirical model used for analyzing the abnormal returns includes variables to capture the influence of: leverage, Tobin's q, the Herfindahl index, Book Equity-to-Market Equity ratio, the level of institutional stock ownership, and the level of stock ownership by insiders.

The conclusion is leverage of the liquidating firm as well as its competitors is the major factor affecting the …

Relative Gains Problem And Case Studies Of Economic Cooperation In East Asia, Ping Deng

Graduate Program in International Studies Theses & Dissertations

Relative gains problem basically means unequal cooperative payoffs disproportionately favoring partners. With the relative gains problem widely accepted as a serious impediment to international cooperation, some scholars have theoretically argued or modeled several conditions that are most likely to foster a state's sensitivity to relative gains and thus substantially affect the prospects for cooperation. But little empirical work has been done to date. The central objective of this dissertation is to test whether those theoretical propositions can be supported by empirical evidence. For this purpose, we have deducted three hypotheses: (1) If a state faces military threat and zero-sum political …

Murray Rothbard’S Adam Smith, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

Standardization And The Stability Of Collusion, Luca Lambertini, Sougata Poddar, Dan Sasaki

Economics Faculty Articles and Research

We characterize the interplay between firms' decision in terms of product standardization and the nature of their ensuing market behaviour. We prove the existence of a non-monotone relationship between firms' decision at the product stage and their intertemporal preferences.

The Fischer Black Hypothesis: Some Time-Series Evidence, Tony Caporale, Barbara Mckiernan

Economics and Finance Faculty Publications

We estimate an ARCH-M model to analyze the relationship between the conditional standard deviation of real gross national product (GNP) and its growth rate for the period 1871-1993. We find that variability significantly increases output growth rates. In addition, impulse response functions show that the effect of variability on growth rates is dynamic. These results provide evidence in favor of Black's (1987) business cycle hypothesis.

Network Structure And Entry In The Deregulated Airline Industry, Joseph Berechman, Sougata Poddar, Oz Shy

Economics Faculty Articles and Research

We explore how an incumbent airline firm structures its route network under the threat of entry caused by deregulation. We show that entry induces the incumbent firm to strategically alter its flight operating network from a fully connected network (FC) to a hub-and-spoke network (HS). While most of the literature always assumed that the use of of HS network is primarily for the purpose of cost reduction, we show that hub-and-spoke operation can be used as a strategic device by the incumbent firm when it faces a threat of entry in its operating zone.

Ideologies Of Development, Hassan Hanafi

Faculty Book Chapters

[abstract not provided]

A New Approach To Expectation Theory: Rationality Revisited, Tamas Forgacs

Masters Theses

Expectations play an important role in economics. Traditionally two major branches of expectation theory are distinguished: that of adaptive and rational expectations. This study sets out the goal of investigating inflationary expectations based on real world experiences. The model proposed and tested here abandons the traditional fixed-time-interval-update models for a non-fixed-time-interval-update model. Although the penalty function attached to each error is still subject to debate, it is shown that by reacting with faster updates to errors in expectations economic agents achieve more precise expectations compared to those of a fix time interval update model. We also find the model rational …

Price Differentials & Competitions & Cost Differentials + Loose Notes, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A., PhD. (1987, May 13). Price differentials & competition & cost differentials [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1995, November 1). Choice of technique and the pricing decision [Paper for Eco. 204]. Unpublished manuscript.

• Shaikh, A., PhD. (1984, May). Dynamics of the falling rate of profit. Unpublished manuscript.

• Shaikh, A., PhD. (1987, March). Comparative phenomena of Marxist crisis theories [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). FROP [Handwritten notes containing graphs of realized rates]. Unpublished manuscript.

• Shaikh, A., PhD. (1994, Spring). Note on profit squeeze theories. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). …

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Explaining Long-Term Exchange Rate Behavior In The United States And Japan, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Shaikh, A., PhD., & Antonopoulos, R. (1998, September). Explaining long-term exchange rate behavior in the United States and Japan (Working Paper No. 250). Jerome Levy Economics Institute.

Handouts Eco 107, Intro Pe Ii, Anwar Shaikh Phd1

Archives of Anwar Shaikh

This collection includes.

• Course syllabus and reading list for Econ. 107: Introduction to political economy II. (1997, Spring). [Course syllabus and reading list]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Final exam for Eco. 107: Introduction to political economy II. (1998, Spring). [Examination]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Midterm take-home exam for Eco. 107: Introduction to political economy II. (1998, Spring). [Examination]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Transf. problem. (1996, …

Exchange Rates, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• [Author unknown]. (n.d.). Alternative theory of real exchange rate determination and empirical test for Greece based on Shaikh’s model [Dissertation excerpt].

• Shaikh, A., PhD. (1998, October 13). Cointegration results, tradable/non-tradable factor mobility, and large financial flows in Asia [Unpublished handwritten notes].

• Shaikh, A., PhD. (1998, November 12). Notes on trade and capital mobility [Unpublished notes].

• Shaikh, A., PhD. (n.d.). Library.en1: Citation of Frenkel and Johnson (1976) on the monetary approach to the balance of payments [Unpublished typed excerpt].

• Shaikh, A., PhD. (1989, December 31). Exchange rates in orthodox economics: Dornbusch [Unpublished handwritten …

Xr Project, Anwar Shaikh Phd

Archives of Anwar Shaikh

• Shaikh, A., PhD. (1998, July 2). Rxr [Unpublished handwritten notes].

• Godley, W. (1998, June 16). Godley’s trade sector equations and a glossary [Fax].

• Shaikh, A., PhD. (1998, June 12). U.S./OECD: Rxr (PPI), Rxr (export unit value), and Xr [Unpublished graph].

• Shaikh, A., PhD. (n.d.). International long-term interest rates [Unpublished graph].

• Shaikh, A., PhD. (n.d.). International short-term interest rates [Unpublished graph].

• Shaikh, A., PhD. (n.d.). Japan long-term interest rate differentials [Unpublished graph].

• Shaikh, A., PhD. (n.d.). U.S. interest rate differentials [Unpublished graph].

• Shaikh, A., PhD. (1998, May 10). U.S./OECD: Rxr (PPI) and RULC …

Public Sector Growth: An Econometric Test Of Wagner's Law, E. A. Essien

Economic and Financial Review

This study makes use of recent developments in econometric technique to test Wagner s Law of increased state activity according to which Government Expenditure must increase at a rate faster than National Output. It makes use of three different interpretations of the Law, namely, increasing relative share for the public sector in the total economy as per capita real income grows, total government expenditure as a function of real income, and relating per capita total government expenditure to per capita income. In all cases the variables were not cointegrated hence a long run equilibrium relationship could not be established between …

How Not To Prevent Oil Crises: Challenge For An Education President, Ibpp Editor

International Bulletin of Political Psychology

This article describes several problematic approaches that are components of lay psychology.

Introducing Students To The Competing Schools Of Thought In Intermediate Macroeconomics, Harlan M. Smith Ii

Economics Faculty Research

The article discusses how the intermediate macroeconomics instructor can introduce students to ways of old and new Keynesians and classical theorists addressed the question on why output and employment fluctuate. Keynesian macroeconomics characterizes a school of thought developed around two central prepositions. New Keynesians develop alternative ways of explaining short-run movements in output and employment in the early 1970's. All individuals maximize utility, firm maximizes profits. Recently, new classicals developed an alternative approach in explaining short-run fluctuation in employment and output by redefining the concept of the short run.

(Reviews) Economic Thought Before Adam Smith And Classical Economics, Spencer J. Pack

Economics Faculty Publications

Economic Thought Before Adam Smith: An Austrian Perspective on the History of Economic Thought, Volume I. By Murray N. Rothbard. Brookfield. Vermont: Edward Elgar Publishing Limited, 1995. Pp. 556. $99.95.

Classical Economics: An Austrian Perspective on the History of Economic Thought, Volume II. By Murray N. Rothbard. Brookfield. Vermont: Edward Elgar Publishing Limited, 1995. Pp. 528. $99.95.

State And Industrial Capitalists In Egypt, SāMir SulaymāN

Archived Theses and Dissertations

No abstract provided.

(Review) Ian Simpson Ross, The Life Of Adam Smith And Jerry Z. Muller, Adam Smith In His Time And Ours, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

The Livingston Survey: Still Useful After All These Years, Dean D. Croushore

Economics Faculty Publications

The decisions of households, firms, and government agencies depend on forecasts of the overall economy. Large firms and the federal government often have the resources to hire their own economists to provide forecasts. But households, small firms, and local governments often depend on surveys of forecasters to get their information. In this article, Dean Croushore spotlights the Livingston Survey, which, even after 50 years, still provides useful forecasts of the economy.

Adam Smith On The Virtues: A Partial Resolution Of The Adam Smith Problem, Spencer J. Pack

Economics Faculty Publications

Adam Smith's definition of justice as a moral virtue based on the "passion" of resentment in 'The Theory of Moral Sentiments' (1759), despite seeming contradictions, supports his analysis of an acquisitive, commercial society in 'The Wealth of Nations' (1774) partly by precluding the concept of a just price.

Tobin, James, Tony Caporale

Economics and Finance Faculty Publications

James Tobin was born in Champaign, Illinois, in 1918. He received his bachelor's degree in 1939 and his master's degree in 1940, both from Harvard. Following naval service during the years 1942-6, he returned to his graduate studies and received his PhD from Harvard in 1947. In 1950, he joined the economics department at Yale University, and he has largely remained at Yale and has been identified with this institution throughout his career. He twice directed the Cowles Foundation for Research in Economics, first from 1955 to 1961, and then from 1964 to 1965. He also served for two years, …

Gatt, Dispute Settlement And Cooperation: A Reply, Dan Kovenock, Marie Thursby

Economics Faculty Articles and Research

In our 1992 paper, we analyzed GATT and its dispute settlement procedure (DSP) in the context of a supergame model of international trade featuring both explicit (GATT) and implicit (non-GATT) agreements. Our paper departed from the previous economics literature on GATT enforcement (see, for instance Hungerford (1991) and Ludema (1990)) by incorporating the ``twin engines of international obligation and retaliation'' (Hudec, 1990). International obligation imposed a cost of violating an explicit international agreement, such as GATT, while retaliation could take place either within the rules stipulated by the international agreement or by punishment outside of the agreement. In Section 2 …

Demand Fluctuations And Capacity Utilization Under Duopoly, J. J. Gabszewicz, Sougata Poddar

Economics Faculty Articles and Research

This paper studies the impact of uncertain demand on firms' capacity decisions when they operate in an oligopolistic environment. We define a two-stage game where firms choose capacity in the first stage without knowing which state of nature is going to realize, and output levels in the second, knowing which state is realized. We prove the existence of a symmetric subgame perfect equilibrium at which firms are in excess capacity compared with the capacity they would choose in the Cournot certainty equivalent game.

Weisskopf Cje, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A., PhD. (n.d.). Various macroeconomic equations [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1996, May 26). Buenos Aires presentation: Long-term patterns, basic methodology, and an introduction focusing on Marx’s work as the foundation [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1997, February 9). Measuring excess demand [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1988, June 15–17). Barcelona outline and presentation: Intrinsic dynamics, classical approaches to long-run dynamics, determinants of capacity and output, and their implications [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1997, January 20). SRGOVT4 [Printout for a PERSONAL TUTSIM short-run model with government and …

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Macro Framework, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Shaikh, A. (1997, January 8). Bank sector model [Unpublished handwritten notes].

• Shaikh, A. (n.d.). Calculations and equations [Unpublished handwritten manuscript page].

• Shaikh, A. (1997, February 2). Macrofinance (MF1) [Computer model printout with code, graphs, and handwritten annotations].

Hicks Capital & Growth, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A., PhD. (1988, May 4). Hicks: Capital & growth [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1997, March 7). Monetary base & money supply [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1996, May 26). Buenos Aires [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1997, May). Macrodynamics [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1997, May). (Mexico 5/97) Macro dynamics, cycles, & growth [Handwritten notes]. Unpublished manuscript.

Accounting For The Change In Income Disparities Between Us Central Cities And Their Suburbs From 1980 To 1990, Edward W. Hill, Harold L. Wolman

All Maxine Goodman Levin School of Urban Affairs Publications

Develops a method that uses cluster analysis to group central cities in the United States. Selection of the candidate cluster solutions; Median characteristics of the clusters; Stressed central cities; Healthy central cities.

Notes On The Estimation Of Regulating Profit Rates, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Zacharias, A. (1997, May). Notes on the estimation of regulating profit rates [Unpublished manuscript].

• Shaikh, A. (1997, June 13). Marginal profit rates and long term returns [Handwritten notes]. Unpublished manuscript.

• Shaikh, A. (1997, June 12). Cheryl Bowles (?) / Godley trade model research [Handwritten notes]. Unpublished manuscript.

• Armstrong, P., & Glyn, A. (1980, March). The law of the falling rate of profit and oligopoly: A comment on Shaikh. Cambridge Journal of Economics, 4(1), 69–70. Oxford University Press (for the Cambridge Political Economy Society).

On Game Theory And The Law, Kenneth G. Dau-Schmidt, Jeffrey E. Stake, Robert H. Heidt, Eric Rasmusen, Michael Alexeev

Articles by Maurer Faculty

No abstract provided.