an aggregate consumption function for canada a cointegration approach this study utilizes cointegration theory and error correction models ecms to specify a candidate dynamiac formulation of the aggregate consumption function using quarterly canadian date the variables entering the long run equlibrium relationship are tested for unit roots using a variety of techniques such as the dickey fuller the augemented dickey fuller and the phillips perron test profedures the engle and granger cointegration test and the fully modified consistent and efficient estimator of phillips and hansen are used to estimate the cointegration relationship johansen s maximum likelihood approach is also used to determine the rank of the cointegrating matrix the error correction model which appears to be a tentatively adequate conditional characterization of the date generating process revelas that disposable income wealth government expenditures relative prices and liquidity constraints proxied by the unemployment rate are important variables non nested tests are carried out against

the north south divide questions of existence and stability this paper investigates the relationship between regional earnings and unemployment by use of information primarily from the general household surveys of 1975 and 1982 conventional earnings functions are augmented to capture the effects of the level and duration of unemployment and of regional differences in living costs in common with previous studies the authors find personal characteristics and the occupation or industry of employment to be important in earnings determination in this paper however they generally find that although higher unemployment is associated with reduced regional earnings ceteris paribus long term unemployment has little influence in regional earnings determination copyright 1990 by royal economic society

an historical perspective on the forecasting performance of the treasury model forecasting the growth in uk consumers expenditure drawing upon treasury official economic forecasts vols i ii a series of treasury model tm forecasts of the percentage growth in real total consumers expenditure are derived for the period 1967 to 1989 the one two and three step ahead forecasts examined cover an interesting period which includes major shocks to the uk economy business cycle effects and changes in economic policy whilst a battery of forecast evaluation statistics and tests do not detect any evidence of forecast bias or irrationality over the whole sample split sample analysis provides evidence of a switch from overprediction to underprediction around 1977 in addition the application of modified versions of holden peel 1990 tests provides evidence of the longest horizon forecasts failing to capture the full movement of changes in consumption growth using simple regression and a selection of forecast encompassing tests shorter horizon forecasts are found to dominate longer horizon forecasts a feature which might be expe

econometric evaluation of consumers expenditure equations large errors in forecasting consumption in the late 1980s and early 1990s were a major contribution to the poor performance in economic forecasting overall these errors have been attributed to the inability of existing models to capture important influences on consumer behavior such as the effects of financial deregulation and shifts in expectations revisions to models followed their failure to predict the late 1980s boom an important question is whether these developments help to explain the unanticipated downturn in consumers expenditure in the early 1990s this article presents an appraisal of eight recent u k consumption functions it is found that these models can explain much of the rise in consumption in the late 1980s however forecast errors for the early 1990s while within the historical range are predominantly negative the nature of this overprediction suggests that further research on household finances including the role of housing as collateral is required copyright 1994 by oxford university press

inventory stability and resource allocation under uncertainty in a command economy this paper focuses on a theoretical issue involved in modeling the functioning of a centrally planned economy results derived in a model of inventory behavior indicate that the uncertain consequences of economic decisions and their cumulative impact on the functioning of the economy need to be explicitly recognized in order to study plan implementation when this is done the need for institutions or procedures with homeostatic properties i e negative feedback mechanisms is revealed without such mechanisms orders consistent with a feasible plan may be unable to insure implementation of that plan even when all economic agents are perfectly motivated three types of feedback mechanisms resolving this difficulty are formulated and discussed with respect to inventory behavior in a centrally planned economy

economic activity in the shadow of conflict i introduction production prices and welfare are altered when exchange emerges in an autarkic economy these same variables are likewise affected when appropriation arises in a production and exchange economy consider robinson crusoe who allocates resources to clothing and food the implicit relative price of clothing and the production consumption point are determined by crusoe s preferences and production possibilities when friday appears and exchange enters crusoe s world there is a change in all of the fundamental economic variables relative price production consumption and utility but suppose friday has the capacity to profitably seize some or all of crusoe s goods or resources crusoe might guard against such a contingency by building defenses sufficient defenses could induce friday to carry out an exchange that might otherwise not occur by allocating some of his resources to defense crusoe alters economic fundamentals including the existence of exchange itself throughout its history economics has generally ignored the effects of appropriation possibilities on production and exchange often however the three economic activities are enmeshed according to barraclough 1994 specialized production and trade became quite extensive in the ancient eurasian world because empires could provide protection for trading links more recently european colonial powers created trading empires based upon strong navies skaperdas and syropoulos 1996 mansfield 1994 today within russia and china there are numerous examples of intertwined production exchange and appropriation even in commonplace crime these activities can be interdependent a potential shoplifter could steal if the store s defenses are low or trade if defenses are high 1 when appropriation possibilities are overlooked the results of standard trade models can be misleading when the role of exchange is ignored the predictions of conflict models can be erroneous economists need a new class of models designed to investigate economic activity in the shadow of conflict where production exchange and appropriation are intertwined pure trade and pure conflict models will be special cases of these new integrated models 2 the fundamental goal of this paper is to contribute to the theoretical development of the new class of integrated models of production exchange and appropriation specifically we model a one time interaction between two agents as a sequential predator prey game with the potential for ricardian trade think of crusoe as a potential prey and friday as a potential predator crusoe moves first by allocating some resources to defensive fortifications to protect his remaining resources friday moves second and faces two options either allocate some resources to weapons in hope of seizing resources from crusoe or produce no weapons and pursue specialized production and trade the economic interactions among appropriation production and exchange depend on key parameters in the model relative resource endowments effectiveness of offensive weapons against defensive fortifications and weapons and consumer goods productivities within the model we show how conflict can be subdued by the potential of mutually beneficial exchange but at a resource cost that modifies fundamental economic variables like relative price production trade volume gains from trade and security of property the model also identifies the conditions under which conflict is so powerful that specialized production and trade cannot emerge further we discover that the integrated model opens up a new way to think about and measure the gains from trade a predator may gain from trade relative to predation or autarky but prefer that the exchange institution be precluded alternatively a predator may be indifferent about trade relative to predation or autarky but gain from the trade institution in section ii we present a general theoretical framework for integrating production exchange and appropriation in a one shot sequential game

the costs of conflict abstract violent conflict destroys resources it generates destruction costs these costs have an important effect on individuals decisions to cooperate or conflict we develop two models of conflict one in which conflict s destruction costs are independent of individuals investments in arms the tools of conflict and another in which conflict s destruction costs depend on those investments our models demonstrate that when conflict s destruction costs are arms dependent conflict is more costly making cooperation more likely we test this prediction with a laboratory experiment in which subjects first choose how heavily to invest in arms and then choose whether to cooperate or conflict in an environment where interaction is repeated in one set of treatments conflict s destruction costs are arms independent in another they are arms dependent our experimental results support our models predictions compared to when conflict s destruction costs are arms independent when those costs are arms dependent cooperation increases by nearly a third

annual consumption functions a scottish uk comparison 1971 1985 holden d r and mcgregor p g 1990 annual consumption functions a scottish uk comparison 1971 1985 reg studies 24 247 259 this paper investigates the performance of a number of recently proposed consumption functions using annual scottish and uk data for the period 1971 to 1985 whilst the exercise is atheoretical in the sense that no attempt is made to tie estimated models to specific theories the influences considered do reflect an underlying conviction that a full understanding of consumption functions ultimately necessitates an integrated framework for modelling household behaviour in this context a number of recent models may be treated as non competing and separate investigation of non durable and durable expenditures may be helpful in evaluating competing explanations of recent consumption behaviour data coherent models of non durable expenditures are obtained although such specifications proved elusive for durables overall there was some supporting evidence for the intuitive sy

input output modelling of the urban and regional economy the importance of external trade harris r i d and liu a 1998 input output modelling of the urban and regional economy the importance of external trade reg studies 32 851 862 the modelling of regional and local economies especially through using the input output io approach is a standard practice for many economic consultants and yet quite often this is based on little if any primary data on interregional exports and imports this paper argues that the relative size of the trade sector in final demand and its importance in the literature on regional growth is such that current models are at best misspecified and are at worst likely to provide biased and possibly misleading results especially with regard to planning and policy at the local level on a more practical level this paper shows that with certain minimum information especially with regard to exports and imports a hybrid local io table can be constructed that provides reasonable accuracy in terms of estimates of io multipliers vis a vis a complete survey ta

vulnerable trade the dark side of an edgeworth box abstract we examine incentives to seize and defend goods offered for trade in an edgeworth box economy appropriation possibilities generate equilibrium of coerced redistribution and voluntary trade in a reduced box potential mutual gains remain untaken because the prospect of piracy creates a price wedge wherein the effective relative price is lowered for the exporter and raised for the importer as the vulnerability of one or both goods increases the price wedge widens causing trade to diminish if vulnerability becomes sufficiently high then equilibrium with trade ceases to exist in the edgeworth box economy

aggregate consumption of non durables and services and the components of wealth some evidence for the united kingdom the growth of spending on consumer goods in the united kingdom in recent years has been a severe test of previously well established consumption functions this paper assesses the performance of a dominant standard consumption function which relies on income and net liquid assets it turns out that this has not been able to track the growth in consumer spending however developments of this consumption function which find a role for the components of personal sector wealth perform rather well with satisfactory diagnostic statistics and an estimated equation standard error of around 0 4

the regional transmission of uk monetary policy dow s c and montagnoli a 2007 the regional transmission of uk monetary policy regional studies 41 797 808 concerns have been raised in the media about a one size fits all monetary policy for the uk if there are diverse economic conditions in different regions then a unitary monetary policy cannot suit all the purpose of this paper is to explore this issue further by breaking it down into two separate issues first there is the more conventional way of considering the question in terms of the effect of a particular interest rate change on regions experiencing different economic conditions this requires a consideration of the nature and causes of regional economic disparities in the uk and how these might be affected by particular interest rate changes but there is further the question of how monetary policy is transmitted to the different regions the possibility is considered that there may be regional differences in how a particular monetary policy is translated into different financial

personal bankruptcy and credit market competition we document a link between u s credit supply and rising personal bankruptcy rates we exploit the exogenous variation in market contestability brought on by banking deregulation the relaxation of entry restrictions in the 1980s and 1990s at the state level we find deregulation explains at least 10 of the rise in bankruptcy rates we also find that deregulation leads to increased lending lower loss rates on loans and higher lending productivity our findings indicate that increased competition prompted banks to adopt sophisticated credit rating technology allowing for new credit extension to existing and previously excluded households the last quarter century saw a dramatic increase in the share of u s con sumers filing for personal bankruptcy thereby seeking a discharge of their unsecured debt in 2005 this increase led to the most comprehensive change to u s bankruptcy law since 1978 while several causes for the rise in bankruptcies have been advanced and it is the subject of ongoing research two potentially significant changes occurred during this period banking deregulation the relaxation of bank entry restrictions in the 1980s and 1990s and technological change in consumer lending banking deregulation by removing barriers to entry increases credit market competition and there fore affects the supply of credit new screening technologies change the way loans are made allowing for interest rates to better reflect underlying risk and thus facilitating lending to riskier borrowers in this paper we examine whether banking deregulation and technological change played a role in the increase in consumer bankruptcy the empirical literature has mostly focused on cross sectional differences in personal bankruptcy in particular it has revolved around legal institutions as a way to answer whether consumers file due to adverse events as part of a rational financial calculation or as a consequence of unfair or deceptive lending practices usually researchers have exploited the different asset exemptions across u s states i e the amount of personal assets protected from creditors

trust on the brink of armageddon the first strike game abstract we introduce the experimental first strike game two players accumulate earnings over many rounds in any round a player can deactivate the opponent this means that the opponent loses all earnings and faces severely reduced future payoffs it also means that the opponent can no longer deactivate the aggressor in later rounds thus deactivation is a hostile act but can serve as a self protection device we run four treatments to disentangle the effect of spite fear of spite and trust we find the absence of pure nastiness but nevertheless a strong fear of it mutual trust can considerably reduce hostility

public choice and the economic analysis of anarchy a survey public choice economists began studying anarchy in the 1970s since then the amount of research on anarchy has burgeoned this article surveys the important public choice contributions to the economics of anarchy following early public choice economists many economists are researching how individuals interact without government from non public interested explanations of the creation of government to historical studies of internalizing externalities under anarchy public choice scholars are arriving at a more realistic perspective of human interaction with and without government although the economics of politics receives more attention the economics of anarchy is an important area of research in public choice

go west young man self selection and endogenous property rights if as hume argues property is a self referring custom of a group of people then property rights depend on how that group forms and orders itself in this article we investigate how people construct a convention for property in an experiment in which groups of self selected individuals can migrate between three geographically separate regions to test a hypothesis of demsetz s we vary across two treatments the external benefits of migrating we find that self selection has a powerful effect on establishing conventions of property and begetting increases in wealth through exchange and specialization we also find support for the demsetz hypothesis

housing assets and consumer spending a regional analysis carruth a and henley a 1993 housing assets and consumer spending a regional analysis reg studies 27 611 621 this paper is concerned with the relationship between the housing market and consumer spending for the eleven standard regions of the uk pooled regional cross sectional and annual time series data are used to appraise the effect of housing assets on regional consumer spending in the 1980s a fixed effects estimator imposing common slope coefficients across the regions is employed and this assumption is tested using the sure estimator estimates of a dhsy specification of the consumption function and a model augmented with housing assets are compared the fixed effects models perform quite well indicating that the growth in regional housing equity has had a positive impact on regional consumer spending the sure results indicate that the assumption of common regional responses of consumer spending to the explanatory variables is not valid and that the housing wealth effect is strongest in

company sector money demand new evidence on the existence of a stable long run relationship for the united kingdom the u k departure from the european exchange rate mechanism has created an urgent need for new indicators of monetary policy stance traditional simple sum monetary aggregates have proven unreliable particularly in the face of the financial innovations of the 1980s micro theory suggests that inappropriate aggregation over heterogeneous assets and holders may be to blame the present paper tests for weak separability of asset groupings for the u k company sector divisia weighted aggregates are constructed for the resulting narrow and broad groupings it is shown that stable long run relationships corresponding to money demand equations exist for these aggregates arbitrary dummies representing financial innovation are not required in contrast to some other work in this area copyright 1994 by ohio state university press

aggregate consumption function and public social security the first time series study for a developing country turkey this article is the first attempt in the literature to investigate the effects of public social security on aggregate consumption in a time series setting for a developing country turkey that has one of the most generous social security systems in the organization for economic cooperation and development oecd region in order to quantify the social security variable this article uses the social security wealth ssw series calculated for turkey in a separate study this study indicates that ssw is the largest part of the household wealth in turkey and therefore should not be ignored in the aggregate consumption studies the results show that its effect on consumption is positive and robust

volatility spillovers among oil and stock markets in the us and saudi arabia in this article we use high frequency data and an identification via changes in volatility approach to assess the volatility spillovers among oil and the us and saudi arabian stock markets we doc

anarchy and its breakdown anarchy defined as a system in which participants can seize and defend resources without regulation from above is not chaos but rather a spontaneous order however anarchy is fragile and may dissolve either into formless amorphy or into a more organized system such as hierarchy under anarchy each contestant balances between productive exploitation of the current resource base and fighting to acquire or defend resources anarchy is sustainable only when there are strongly diminishing returns to fighting effort the decisiveness parameter is sufficiently low and incomes exceed the viability minimum these considerations explain many features of animal and human conflict

wealth effects and macroeconomic dynamics the effect of wealth on consumption is an issue of long standing interest to economists conventional wisdom suggests that fluctuations in household wealth have driven major swings in economic activity both in the united states and abroad this paper considers the so called consumption wealth effects there is an extensive existing literature on wealth effects that has yielded some insights for example research has documented the relationship between aggregate household wealth and aggregate consumption over time and a large number of household level studies suggest that wealth effects are larger for households facing credit constraints however there are also many unresolved issues regarding the influence of household wealth on consumption we review the most important of these issues and argue that there is a need for much more research in these areas as well as better data sources for conducting such analysis

life cycle individual thrift and the wealth of nations this paper provides a review of the theory of the determinants of individual and national thrift that has come to be known as the life cycle hypothesis lch of saving applications to some current policy issues are also discussed part i deals with the state of the art on the eve of the formulation of the lch some 30 years ago part ii sets forth the theoretical foundations of the model in its original formulation and later amendment calling attention to various implications distinctive to it and sometimes counter intuitive it also includes a review of a number of crucial empirical tests both at the individual and the aggregate level part iii reviews some applications of lch to current policy issues though only in sketchy fashion as space constraints prevent fuller discussion this abstract was borrowed from another version of this item

toward a new deal for saudi arabia oil or islamic stock market investment amid the ongoing national development programme of saudi arabia saudi vision 2030 a large trade openness plan to reduce saudi arabia s dependence on oil and to diversify its economy is announced

microfoundations for a stable demand for money function scientific revolutions seldom occur when the prevailing theories appear to be performing well it is only when the accepted theory fails to offer a satisfactory explanation of events that new and more robust theories are proposed of these new theories the one which can explain the successful performance of the previous theory and also the events which led to its demise becomes the replacement so it is in the history of modern monetary economics the failure of the partial adjustment model in the mid s is well documented in the united kingdom and the united states and the search for a replacement has been the main point on the agenda since that time there are many contending theories some of which are advocated by the other contributors to this controversy but the mark of a truly better theory which can be claimed to supersede the partial adjustment model is one that can explain the success and the breakdown of the previous theory as well as the events subsequently central to the argument of this paper is the importance of individual behaviour in the context of a market for monetary assets only by means of careful investigation of the microeconomic behaviour underpinning monetary economics at the individual and the market level can the stability of the money demand function be restored it is the purpose of this paper to suggest that the buffer stock approach has gone further than other approaches in dealing with the fundamental micro foundations of the demand for money it does not suggest that other approaches have no microfoundations but they tend to concentrate exclusively on specific aspects of the micro structure such as separability and ignore others relating to the behaviour of individual optimisers in a monetary market the buffer stock model has firm micro foundations which can explain the events both before and after the breakdown of the partial adjustment model section i provides an historical background to the debate and section ii gives a brief overview of buffer stock models which shows that unlike other approaches they have been able to reconcile the past success of the partial adjustment model with its present failure the nature of the microfoundations of buffer stock models are the source of the success and are discussed in more detail in section iii the final section evaluates the buffer stock approach in the light of the other alternatives

asymmetric effects of interest rate changes the role of the consumption wealth channel this article examines the role of the consumption wealth channel in explaining asymmetric effects of monetary policy changes towards this end we draw upon available literature on the consumption function and behavioural finance to construct a framework for asymmetric effects of monetary policy caused by the impact of wealth changes on aggregate consumption we then employ data from the uk to examine the validity of the proposed framework in the context of a liberalized economy with easy access to consumer credit wealth reduction due to monetary tightening is expected to have weaker impact on spending than increase in wealth our results validate the above hypothesis

the demand for money a dynamic rational expectations model macroeconomic modelling generally has widely adopted the use of forwardlooking variables in behavioural relationships studies of the demand for money being something of an exception the aim of this paper is to provide preliminary empirical results of a model which explicitly incorporates expectations of the future into the demand function for narrow money the approach adopted is the modelling of the demand for money within a multi period costs of adjustment framework under the assumption of rational expectations agents are assumed to pursue a target or long run level of money balances which is itself a function of prices income and interest rates this results in an empirical specification which consists of both backwardlooking and forward looking components the model is estimated using uk data for the period i963i i983iii the remainder of the paper is divided into four sections in section i we outline the framework in which our model is derived in the following section we discuss the econometric techniques used and in section iii we present our empirical results a final section concludes

commitment versus discretion in the peasant dictator game abstract we report an experiment designed to test the influence of commitment versus discretion in a simple bargaining game game theory predicts and the public policy literature emphasizes that the ability to make commitments promotes efficiency we find that commitment does significantly increase efficiency in the experiment finally we relate our findings to the extant literature on extensive form bargaining experiments by examining fairness and trust as explanations for some observed anomalies journal of economic literature classification numbers c720 c790 c920 e610

the assessment consumer expenditure this article aims to illuminate two sets of consumption puzzles the first concerns the behavior of aggregate saving rates in the 1980s and early 1990s collapse and rebound in scandinavia and the u k and apparently a more secular decline in the u s the second set of puzzles concerns various apparent contradictions of the rational expectations permanent income hypothesis e g in time series the excess sensitivity of consumption changes to anticipated income changes and in cross sections the tendency of consumption and income age profiles to follow each other more than standard life cycle theory implies the article discusses in relatively non technical terms the implications both for euler equations and solved out consumption functions of introducing uncertainty credit constraint consumption leisure interactions habits and durability alternative to rational expectations the illiquidity of some assets and financial deregulation it also compares the merits of euler and solved out models of aggregate consumption

consumer credit in an era of financial liberalization an overreaction to repressed demand in this article we empirically analyse the factors which determined consumer credit in greece in the period before and after the financial liberalization while accounting for significant changes in structure due to the lifting of credit restrictions and the subsequent impressive boom of consumer loans we use multivariate cointegration techniques to estimate a vector error correction model vecm and identify separate demand and supply relationships for consumer loans we introduce demand and supply related shifts in parameters through the inclusion of appropriate dummy variables and trends in the long run relationships we partly deviate from the typical johansen procedure and estimate the model in two steps we find that the theoretical exclusion and coefficient size restrictions on the demand and supply cointegrating vectors are valid our results are consistent with the operation of a bank lending channel in greece we also find that the supply side was mostly responsible for the acceleration of con

the regional implications of macroeconomic policy this article examines the relative impact of changes in uk fiscal and monetary policy on the economies of the uk regions this is done by first considering the relative importance of fiscal flows and balances to the uk regions and then assessing their sensitivity to fiscal policy changes second the impact of monetary policy on the regions is considered in four cases these are direct effects on spending exchange rate effects income effects and asset price effects the conclusions are that different policy levers have markedly different regional implications with southern regions being more sensitive to changes in income taxes and government consumption and investment while northern regions are more sensitive to changes in national insurance and transfer payments all regions have become more sensitive to interest rate changes over the past decade but regions in the south are considerably more vulnerable particularly to any knock on effect on house prices copyright 1995 by oxford university press

leadership beliefs and coordination an explorative discussion although recent economics contributions represent important strides forward in the understanding of leadership behavior the cognitive and symbolic dimensions of the phenomenon have attracted virtually no interests from economists and game theorists i argue that an understanding of these dimensions may be founded on coordination games particularly to the extent that these illustrate interactive belief formation in this context leadership is defined as the taking of actions that coordinate the complementary actions of many people through the creation of belief conditions that at least substitute for common knowledge and where these actions characteristically consists of some act of communication directed at those being led the concept of common knowledge or its approximation by means of notions of common belief is argued to be particularly important to understanding leadership thus leaders may establish common knowledge conditions and assist the coordination of strategies in this way or make decisions in situations where coordination problems persist in spite of common knowledge acknowledgments

securing property rights a dilemma experiment in austria mexico mongolia south korea and the united states abstract secure property rights result from a combination of public enforcement private protective measures and voluntary norm compliance we conduct a laboratory experiment to study how culture interacts with institutions in shaping individuals behaviors and group outcomes in a property rights dilemma the experiment is conducted in five countries austria mexico mongolia south korea and the united states we find that the security of property varies with the experimentally available institutions and country level indicators such as trust and quality of government subjects from countries with higher levels of trust are more likely to abstain initially from theft devote more resources to production and support funding public protection of property through taxation our findings highlight the relevance of cultural and institutional factors and their interaction in addressing the collective action problem of safeguarding property rights

war and conflict in economics theories applications and recent trends we review the main economic models of war and conflict these models vary in details but their implications are qualitatively consistent highlighting key commonalities across a variety of conflict settings recent empirical literature employing both laboratory and field data in many cases confirms the basic implications of conflict theory however this literature also presents important challenges to the way economists traditionally model conflict we finish our review by suggesting ways to address these challenges

asymmetric responses of money demand to oil price shocks in saudi arabia a non linear ardl approach saudi arabia is an open oil based economy with fixed exchange rates therefore it has limited monetary policy autonomy using non linear autoregressive distributed lag approach this article inves

a dynamic model of money credit and consumption a joint model for the uk household sector previous research has investigated consumers expenditure and money demand as separable equations we estimate them jointly as driven by the same influences credit is also included as a potential third variable that might provide a source of additional information about the monetary transmission mechanism consumption money and lending equations are modelled as an interdependent system and the significance of lending for consumption andmoney is tested theresults using uk household sector data show that a stable credit equation does exist in parallel with money demand and consumption equations and that interactions modelled in a conditional vector equilibrium correction system are favoured over independent equations

a critical review of china s rapidly developing renewable energy and energy efficiency policies renewable energy and energy efficiency reee policies have far reaching implications for energy security climate change economic competitiveness pollution and human livelihood for these reasons reee has become a national priority for the chinese government particularly since 2005 this paper aims to critically review china s reee policies in six sectors electricity industry transportation buildings and local government in addition to examining the progress china has made in the development and implementation of reee policies this review also identifies limitations and room for improvement finally five policy recommendations are presented

anarchy in the laboratory and the role of the state abstract a recent literature on the economics of conflict provides conditions under which groups of individuals divide up between producers and predators an anarchic equilibrium as well as conditions under which a government agent is empowered to make collective action choices that can completely deter predation we test these theoretical predictions in a laboratory experiment in the absence of a government agent groups of subjects choose actions consistent with the anarchic equilibrium the introduction of a government agent charged with maximizing the consumption of producers enables subjects to achieve nearly perfect coordination on the pareto superior equilibrium where all individuals choose to be producers

an assessment of the regional impact of the introduction of a community charge or poll tax in england barnett r r levaggi r and smith p 1990 an assessment of the regional impact of the introduction of a community charge or poll tax in england reg studies 24 289 297 in 1990 the system of local government finance in england will be changed dramatically with the reforms including the introduction of a community charge or poll tax to replace the existing system of domestic property taxation the reforms will result in major changes to the financial incentives operating on local government this paper concentrates on the regional implications using models of local government behaviour under the existing system to predict the likely expenditure responses to the reforms of the major local authorities estimates of regional welfare gains and losses for the domestic sector are also computed the findings indicate large disparities between regions in the consequences of the reforms drawing particularly strong distinctions between northern regions and the rest of the country barnett r r levaggi

analysis on china s eco innovations regulation context intertemporal change and regional differences abstract eco innovation is recognized as a determinant of success or failure of environmental protection efforts in the long run this paper attempts to examine china s eco innovation gains in response to the energy saving and emissions reduction eser policy enforced during 2006 2010 we first construct an integrated analysis framework to evaluate the changes of energy and environmental performance used as the proxy of eco innovation and then the intertemporal change of china s eco innovation gains as well as the regional differences is investigated the results indicate that china had accelerated its process of eco innovations during 2006 2010 when a series of eser policies were enforced the developments and wide adoptions of advanced energy saving and environmentally friendly technologies serve as the primary driving forces while upgrading management skills and organizational designs contribute relatively little furthermore the realizing paths of cross region eco innovations in china are obviously discrepant

equilibrium play in large group market entry games coordination behavior is studied experimentally in a class of noncooperative market entry games featuring symmetric players complete information zero entry costs and several randomly presented values of the market capacity once the market capacity becomes publicly known each player must decide privately whether to enter the market and receive a payoff which increases linearly in the difference between the market capacity and the number of entrants or stay out payoffs for staying out are either positive giving rise to the domain of gains or negative giving rise to the domain of losses the major findings are substantial individual differences that do not diminish with practice aggregate behavior that is organized extremely well in both the domains of gains and losses by the nash equilibrium solution and variations in the population action strategies with repeated play of the stage game that are accounted for by a variant of an adaptive learning model due to roth and erev 1995

estimating the household consumption function in saudi arabia an error correction approach abstractwe estimate a micro founded life cycle consumption model for saudi arabia over the period 1970 2017 using error correction model procedures dynamic adjustments are significant and both in

overconfidence and excess entry an experimental approach psychological studies show that most people are overconfident about their own relative abilities and unreasonably optimistic about their futures e g shelly e taylor and j d brown 1988 neil d weinstein 1980 when assessing their position in a distribution of peers on almost any positive trait like driving ability ola svenson 1981 income prospects or longevity a vast majority of people say they are above the average although of course only half can be if the trait is symmetrically distributed this paper explores whether optimistic biases could plausibly and predictably influence economic behavior in one particular setting entry into competitive games or markets many empirical studies show that most new businesses fail within a few years for example using plant level data from the u s census of manufacturers spanning 1963 1982 timothy dunne et al 1988 estimated that 61 5 percent of all entrants exited within five years and 79 6 percent exited within 10 years most of these exits are failures see also dunne et al 1989a 1989b d shapiro and r s khemani 1987

how much have electricity shortages hampered china s gdp growth abstract based on an econometric analysis of the annual growth data for china s gdp and electricity generation from 1953 to 2010 we find that electricity generation growth granger causes gdp growth but not vice versa we also find that the gdp elasticity of electricity generation is about 0 6 implying that a 1 increase in china s electricity generation growth would increase gdp growth by 0 6 while deng s reform raised china s gdp growth rate by about 5 per year it did not alter the gdp elasticity of electricity generation hence an obvious strategy to promote china s economic growth would be accelerating electricity generation expansion rapidly adding thermal generation units however could have large scale adverse environmental impacts we therefore support china s 2011 five year plan which calls for expanding investments in renewable energy conservation and energy efficiency as well as improving china s integrated electricity planning and cost based pricing decisions

china s experiment on the differential electricity pricing policy and the struggle for energy conservation abstract differential electricity pricing was promulgated by china s central government to guide the development of high energy consuming industries which are significant for energy conservation this paper examines the twists and turns of the policy implementation at the provincial level and seeks to elucidate the difficulties in its implementation local governments concerned that following the central directives would hurt local interests have tried to deviate from the central orders while the central revises the policy from time to time to ensure local compliance three difficulties are analyzed 1 the current relations between the central and local energy regulatory institutions make these local institutions difficult to perform their duties and affect incentives for local governments to respond to central directives 2 financial reform puts a great burden on local governments to raise revenues to cover expenditures making local governments focus mainly on economic development rather than serving merely as political agents of the central government 3 the aggressive attitude of local governments in pursuing gdp growth is not necessarily driven by the central government but by pressure from competition among localities and the need to win local support solving these difficulties is important for making national energy conservation polices effective and efficient

swords or plowshares a theory of the security of claims to property this paper develops a general equilibrium model of the allocation of resources among appropriative and productive activities the model emphasizes the distinction between offensive weapons which are the instruments of predation and fortifications which provide defense against predation the analysis of this model shows how the equilibrium security of claims to property is determined the analysis focuses on the possibility of a nonaggressive equilibrium in which no resources are allocated to offensive weapons and claims to property are fully secure we also analyze the complex relation between economic welfare and the security of claims to property we find for example that a relatively poor agent could be better off in an equilibrium with less secure claims to property

implementing china s national energy conservation policies at state owned electric power generation plants abstract china s 11th five year guideline identified energy conservation as one of the country s fundamental policies and established a mandatory target 20 reduction in national average energy intensity by 2010 despite the various policies laws and administrative reforms to support energy conservation china fell behind schedule for meeting its conservation targets in 2006 and 2007 using a combination of available literature and an interview based case study this paper examines the implementation of energy conservation and investigates impediments to achieving china s conservation goal in the electric power generation sector three key impediments are detailed 1 municipal governments incentives to overlook conservation related central directives primarily because of budget pressures linked to financial decentralization 2 procedural obstacles in the form of time required to obtain project approvals for high efficiency power generation units and 3 financial obstacles making it difficult for power generation enterprises to raise capital for energy conservation projects an interview based case study of a state owned coal fired electric power generation company demonstrates the influence of the aforementioned obstacles while procedural obstacles are notable they can be managed however electricity pricing reforms and or stronger subsidy programs will be needed to address the financial obstacles facing chinese power generation companies

estimating long run economic equilibria with stochastic trends an asymptotic theory is provided to analyze a menu of currently existing estimators of cointegrated systems we study in detail the single equation ecm seecm approach of hendry our theoretical results lead to prescriptions for empirical work such as specifying seecm s nonlinearly and including lagged equilibrium relationships rather than lagged differences of the dependent variable as covariates simulations support these prescriptions and point to problems of overfitting not encountered in the semiparametric approach of phillips and hansen 1990

the saving and investment nexus for china evidence from cointegration tests the saving and investment nexus as postulated by feldstein and horioka fh 1980 is revisited the saving investment correlation for china is estimated over the periods 1952 1998 and 1952 1994 the latter culminating in a period of fixed exchange rate regime amongst the key results it is found that saving and investment are correlated for china for both the period of the fixed exchange rate and the entire sample period with high saving investment correlation the results suggest that the chinese economy is in conformity with the fh hypothesis this is a valid outcome for in china capital mobility was fairly restricted over the 1952 1994 period as indicated by the relatively low foreign direct investment