bluuebunny/crossref_metadata_2025_split huggingface dataset:
REAL BALANCES, RELATIVE PRICES AND AN OPEN MODEL TEMPORARY EQUILIBRIUM WITH RATIONING THE MARSHALL‐LERNER CONDITIONS IN
Authors: Sampson Anthony A. 
Published: May 2007

ABSTRACTThe model is of an open economy producing a single output, the demand for which depends on its price, the price of foreign output, real incomes and government spending. We thereby extend the rationed equilibrium model of Malinvaud to the simplest open economy. Residents hold foreign assets as well as domestic assets, hence exchange rate movements have real balance effects as well as relative price effects. The Marshall Lerner conditions are sufficient, but not necessary, for either an exchange rate depreciation or a fall in the domestic price level, to increase demand for domestic output. They are necessary, but not sufficient, for a depreciation or fall in the domestic price level, to improve the trade balance under Keynesian Unemployment.
SCALE ECONOMIES IN MULTIPRODUCT FIRMS
Authors: Shaffeer Sherrill 
Published: May 2007

ABSTRACTAs normally employed, multioutput cost functions impose a bias against a finding of economies of scale, because a firm's optimal expansion path generally does not entail constant proportions over the various outputs. This bias can be overcome using a cost function defined in terms of a scalar aggregate output. An empirical example using New York commercial banks bears out the argument. As a sidelight, it is also argued that the traditional concept of scale economies is appropriate for policy purposes even when it conflicts with the more recently developed condition of natural monopoly (subadditivity of the cost function).
OPTIMAL CONSUMPTION WHEN INCOME FOLLOWS A MARKOV PROCESS
Authors: Hey John D. 
Published: May 2007

ABSTRACTIn econometric investigations of consumption, the econometrician may either estimate the structural relationship or investigate the implication (revealed by Hall) that the marginal utility of consumption follows a random walk. Researchers have been inhibited from following the former route by the lack of an explicit theoretical relationship. This paper removes this inhibition by deriving the optimal consumption strategy of an individual with constant absolute risk‐aversion, whose income is generated by an nth order normal autoregressive process. We show that the implied structural relationship is linear in wealth and lagged income terms (up to the nth order). This facilitates informative and efficient econometric exploration of the consumption function.
THE MULTIPRODUCT DEPOSITORY FIRM, INTEREST‐BEARING TRANSACTION BALANCES, INTEREST‐BEARING RESERVES, AND UNCERTAINTY
Authors: Elyasiani Elyas 
Published: May 2007

ABSTRACTIn this paper a model of depository firm behavior is developed in which the depository institution acts as a multiple product producer. The multi‐product model is an application of the general theory of value to the particular case of depository firms. It generalizes the theory of bank behavior to include production and cost aspects of banking activity as well as its financial aspects and reconciles the rivaling intermediary and firm‐theoretic views on depository institutions. By so doing, it bridges the gap between models which treat depository firms as mere portfolio holders and those which analyze the check clearance function in isolation. Risk aversion, production function constraint, jointness, and multiple sources of uncertainty are simultaneously introduced. The model is used to analyze the effects of interest payment on transaction balances, interest payment on reserves of depository institutions by the Central bank, and the Central bank policy swings.
EDUCATIONAL PRODUCTION IN INDEPENDENT SECONDARY SCHOOLS
Authors: Bee M. , Dalton P. J. 
Published: May 2007

ABSTRACTThis article contributes to an established and growing literature in which a production function is estimated for educational institutions in order to investigate the relationship between school characteristics and performance.Existing studies in this area have generally met with only limited success. The present study, through its application of a statistical model to comprehensive data drawn from the UK private sector of education identifies a wide range of school characteristics which significantly influence performance.The article offers meaningful results and guidelines for further development of techniques in the investigation of a topic which is relevant to both producers and consumers of education.
UNCERTAINTY AND THE THEORY OF MARK‐UP PRICING
Authors: Fraser R. W. 
Published: May 2007

ABSTRACTThis paper examines the role of demand uncertainty in influencing a firm's mark‐up pricing decision. With no uncertainty the marginalist approach represents this mark‐up as inversely and solely determined by the elasticity of demand. Here it is shown that the introduction of uncertainty does not alter this simple dependency for a risk neutral firm. For a risk averse firm, however, the mark‐up is shown to depend on a range of factors, including the level of fixed and variable costs and the level of expected demand. It is argued that such variability of margin is more in keeping with observed behaviour.
THE ACCOUNTING PRICES OF THE FACTORS OF PRODUCTION: AN ESTIMATION OF THEIR PARAMETERS IN THE CASE OF GREECE
Authors: Vauouras Ioannis S. 
Published: May 2007

ABSTRACTIt is widely acknowledged that when accounting prices are used instead of market prices in project analysis they provide more adequate indicators of the social acceptability of the alternative investment projects. The first objective of this paper is the formulation of the methodology required for the determination of the accounting prices of the factors of production capital and labour in the case of Greece. The second is the estimation of the parameters needed for their valuation and the third is the derivation, under certain assumptions, of the actual accounting prices of capital and labour and their comparison with market prices in the case of Greece.
CARTEL PROBLEMS: THE INCENTIVE TO LIE ABOUT COSTS*
Authors: Simpson Paul , Waterson Michael 
Published: May 2007

ABSTRACTOsborne noted five problems a cartel has in restricting output to the mutual benefit of its members. Here, we examine one of these: the problem of location of the contract surface. We first model the situation where one firm is able to mislead cartel members about the level of its cost function. We show there is often, in theory, an incentive to do this and thereby increase profit if marginal costs are rising, though not if they are falling. We go on to examine the case where both firms cheat, and to consider possible solutions the cartel might adopt.
THE EFFECT OF REGULATION ON WAGES AND INTERMEDIATE PRODUCT PRICES UNDER BILATERAL MONOPOLY1
Authors: Law Peter J. 
Published: May 2007

ABSTRACTThis paper seeks to determine whether, under bilateral monopoly, profit rate regulation induces an input price bias in addition to the well known Averch‐Johnson capital intensity bias. Using a Nash‐type employer‐union, fixed bargaining power model, it is found that regulation may induce lower as well as higher wage rates. Similarly, when the two parties are respectively capital equipment supplier and user, regulation of the user's profit rate has an ambiguous effect on the equipment rental rate. In both cases the input price effect is shown to depend on the elasticity of factor substitution and on how demand elasticity varies with output.
MONETARY ANTICIPATONS AND THE DEMAND FOR MONEY SOME UK EVIDENCE*
Authors: Cuthbertson K. 
Published: May 2007

ABSTRACTThe Carr‐Darby ‘shock‐absorber’ hypothesis, that unanticipated changes in the money supply influence the demand for real money balances but anticipated changes do not, is tested on UK data for narrow money, M1. For comparison with earlier studies on US data we take the (real first order) partial adjustment model as one example of a ‘conventional’ demand for money function. However the Carr‐Darby hypothesis is also tested taking a more general autoregressive distributed lag model as the ‘conventional’ demand function. For both ‘conventional’ demand for money functions we find that the shock‐absorber hypothesis is not supported for M1 using UK data.
FORECASTING AND POLICY EVALUATION IN ECONOMIES WITH RATIONAL EXPECTATIONS: THE DISCRETE TIME CASE*
Authors: Hallett A. J. Hughes 
Published: May 2007

ABSTRACTSeveral techniques for solving dynamic rational expectations models have been proposed. This paper puts forward an alternative method for discrete time models, which is significantly simpler to use in practice. That solution is used to derive and compute optimal policy selections (incorporating ‘noncausal’ effects) which, by exploiting the discrete time framework, are also time consistent when sequentially reoptimized. Those decisions are shown to contain an optimal open loop component plus an innovations dependent correction mechanism. A numerical example is used to verify these properties, and to demonstrate the superiority of this policy selection technique over recursive methods (e.g. dynamic programming).
A NEW APPROXIMATE GLS ESTIMATOR FOR THE REGRESSION MODEL WITH MA(1) DISTURBANCES
Authors: Choudhury Askar H. , Chaudhury Mohammed M. , Power Simon 
Published: May 2007

ABSTRACTThis paper introduces a new approximate GLS estimator for the regression model with MA(1) disturbances, which outperforms both the Balestra (1980) and the Park and Heikes (1983) approximations and which is almost as efficient as the exact GLS estimator.
MONEY MARKET ARBITRAGE AND COMMERCIAL BANKS' BASE RATE ADJUSTMENTS IN THE UNITED KINGDOM
Authors: Green Christopher J. 
Published: May 2007

ABSTRACTThis paper is concerned with the opportunities for arbitrage which have arisen in the UK when large companies are able to borrow from a commercial bank and on‐lend the money in the market at a higher rate. Such arbitrage is commonly called ‘Round‐Tripping’. Round‐Tripping is investigated in a simple theoretical way, and then a simulation approach is used to estimate the amount of funds involved in Round‐Tripping in the 1970s. These estimates tend to support the view that Round‐Tripping was probably rather modest in amount in relation to the values of the main monetary aggregates.
A NOTE ON QUALITY, MARKET STRUCTURE AND THE IMPORTANCE OF THE ‘INTEGER CONSTRAINT’
Authors: La Manna Manfredi M. A. 
Published: May 2007

ABSTRACTFaced with the integer constraint brought about by quality‐related fixed costs, a socially‐managed industry is more flexible than a free‐entry oligopoly, for it can adjust the integer‐constrained number of firms either upwards or downwards. As a result, and contrary to conventional wisdom, product quality may be identical under the two regimes.
MONOPOLY POWER AND DOWNWARD PRICE RIGIDITY UNDER COSTLY PRICE ADJUSTMENT
Authors: Balvers Ronald 
Published: May 2007

ABSTRACTA method of ‘backward deduction’ is used to analyse the decisions of a firm, setting price and quantity before demand observations are made, with the option to adjust price at a cost after demand is observed. It is shown for such a firm that the events of (1) downward price rigidity; (2) overproduction; and (3) a high degree of monopoly power are closely related. The paper distinguishes itself from the previous literature on costly price adjustment in its treatment of disequilibrium situations and focus on monopoly power in relation to price rigidity. The main results are obtained for a linear demand curve and a uniform demand distribution.
A NOTE ON THE AGGREGATION BIAS IN CURRENT PROCEDURES FOR THE MEASUREMENT OF TRADE BARRIERS
Authors: Laird Samuel , Yeats Alexander 
Published: May 2007

ABSTRACTFor purposes ranging from practical commercial policy matters to the testing of theoretical trade models, economists have utilized aggregate data relating to tariffs and non‐tariff barriers (NTBs) across countries. However, the statistics employed in these analyses are generally derived using aggregation procedures which are based on weights relating to trade that occurs under restrictions. While it is recognized that this approach incorporates a bias in the resulting averages, due to the fact that the products facing the highest tariffs or NTBs enter the calculation with relatively low (actual) trade weights, little information is available for quantifying the magnitude of this bias. This study provides such empirical evidence and also proposes indices that overcome some shortcomings of the traditional measures.
OPTIMALLY UNIFORM COMMODITY TAXES IN A NON LINEAR DEMOGRAPHIC DEMAND MODEL
Authors: Ray Ranjan 
Published: May 2007

ABSTRACTThis paper derives a sufficient condition for optimally uniform commodity taxes within the demographically generalized RNLF'S demand functional form framework. This paper, besides admitting child subsidies, allows for non linear equivalence scales and demographically varying utility and demand functions. The derived condition is shown to yield some recent uniformity results as special cases.
THE ‘CHILLING EFFECT’ OF CONVENTIONAL ARBITRATION: A COUNTEREXAMPLE
Authors: Treble John G. 
Published: May 2007

ABSTRACTIn the context of a simple model, it is demonstrated that it is possible for a conventional arbitrator to determine his decision in such a way as to remove the so‐called ‘chilling effect’. It is shown that an arbitrator adopting the kind of rule envisaged here would be more successful in moderating claims of the negotiators than would a final‐offer arbitrator.
AN APPROXIMATELY UNBIASED ESTIMATOR FOR THE THEORETICAL BLACK‐SCHOLES EUROPEAN CALL VALUATION
Authors: Chaudhury Mohammed M. 
Published: May 2007

ABSTRACTBlack‐Scholes price estimate of a call is commonly formed by using an estimate of the stock return variance rate in the formula. This, however, produces systematic bias with respect to the model's value with the true variance rate. This paper proposes a new procedure to form Black‐Scholes price estimates using Taylor series approximation. Our Monte Carlo results favour the new procedure over the common and the recently proposed Butler‐Schachter approaches when bias magnitude and any systematic pattern thereof are the relevant concerns.
WORLD INCOME SHARES AND THE TERMS OF TRADE: A NORTH‐SOUTH GROWTH CYCLE
Authors: Mainwaring Lynn 
Published: May 2007

ABSTRACTThe trading relationship between a primary‐producing South and a manufacturing North has dynamic properties of conflict and symbiosis similar to those of the closed‐economy, worker‐capitalist relationship. In a simple model these dynamics may lead to cyclical behaviour involving two variables, the Southern share of world income and the rate of exploitation of primary producing capacity. The rate of change of the terms of trade is also cyclical. Long‐run income shares are constant, however, implying that the Southern terms of trade rise by just enough to offset productivity savings on primary inputs.
MODELLING EXPECTATIONS: A REVIEW OF LIMITED INFORMATION ESTIMATION METHODS
Authors: Cuthbertson Keith 
Published: May 2007

ABSTRACTThe plethora of limited information estimation methods applied to expectations models are presented within a coherent framework based on standard econometric estimators. It is then possible to isolate those problems that arise solely because of the inclusion of expectations variables. The relationship between the economic solution of RE models and the appropriate choice of estimator is examined.
ECONOMIC INCENTIVES FOR AN URBAN BIAS IN DEVELOPMENT POLICIES*
Authors: Gruver Gene W. , Zeager Lester A. 
Published: May 2007

ABSTRACTThis paper presents a labor turnover model in which urban employers have an economic incentive to support an urban bias in development policies because of the indirect effect of rural incomes on urban training expenditures through the rate of labor turnover. A comparative static analysis of the model shows that an income transfer from rural workers to urban workers increases the profits of urban employers, even if urban employers are not directly involved in the transfer. Unlike previous versions of the labor turnover model, worker behavior is explicitly grounded in utility maximization.
REDISTRIBUTIVE EFFECT OF INCOME TAXATION: DECOMPOSING TAX BASE AND TAX RATES EFFECTS
Authors: Pfähler Wilhelm 
Published: May 2007

ABSTRACTThis paper introduces Gini‐based decomposition formulae for the redistributive effect of income taxation. It examines the interaction between and the relative significance of tax base and tax rate components in the final determination of the overall redistributive effect. The resulting formulae can readily be applied to available income and tax statistics.
THE LORENZ ORDER AND THE EFFECTS OF TAXATION POLICIES
Authors: Arnold Barry C. 
Published: May 2007

ABSTRACTTo any finite population of n individuals with associated incomes x1…, xn we can associate a Lorenz curve. By associating this population with a random variable X representing the income of a randomly chosen individual of the population, the concept of a Lorenz curve and the associated partial order (the Lorenz Order) based on nested Lorenz curves is readily extended to be defined in the class of all non‐negative integrable random variables. In this context well known results on inequality attenuating and inequality rank preserving taxation policies are found to admit simple more general proofs. Some results on the effects of random taxation are also reviewed. The effects of applying different taxation policies within subpopulations lead one to consider questions regarding inequality attenuation results in mixture settings. It is observed that, more generally, inequality comparisons can be unambiguously made between any non‐negative variables even if measured in dissimilar units.
THE DECOMPOSITION OF INCOME INEQUALITY: AN ANALYSIS BASED ON THE NORTHERN IRELAND FAMILY EXPENDITURE SURVEY FOR 1985
Authors: Borooah Vani K. , McGregor Patrick 
Published: May 2007

ABSTRACTThis paper conducts an empirical investigation into the issue of inequality decomposition, using the 1985 FES micro data tapes for Northern Ireland. It is hoped that it makes three contributions. First, by using the raw data, it permits a fairly rich disaggregation of individuals. The disaggregation employed in this paper viz. by individuals belonging to different‘family types’and individuals of different‘economic status’seems particularly relevant to social policy. Second the data also permits a disaggregation of total income by type of income: this permits one to assess, for example, how much of total inequality is caused by inequality in the distribution of income from different sources. Finally, the analysis is consistent with the existing theoretical literature on inequality decomposition.The main results may be summarized briefly. When the FES sample was divided by subgroups of family type or economic status, then, in 1985, most of income inequality in NI was due to within group rather than to between group inequality. When total income was disaggregated by income type, then inequalities in the distribution of wages and salaries made the largest contribution to the inequality of total income. Prosperous families in NI tended to contain within them a far greater proportion of secondary workers than did the less well off families. It was not implausible therefore that the distribution of employment between families made a major contribution to wage inequalities between them.
WAGE BARGAINING WITH A PRICE‐SETTING FIRM
Authors: Arnsperger Christian , de la Croix David 
Published: May 2007

ABSTRACTThis paper examines the introduction of monopolistic competition into wage bargaining models: in addition to capital‐labour substitution, we also consider a cost‐push effect. The right‐to‐manage model requires strong restrictions on the objective functions and leads to problematic conclusions because the wage claims of the union are generally not compatible with the mark‐up requirement contained in the firm's price equation. In the efficient bargaining model, the union negotiates also the employment level, which gives it a way of extracting part of the monopoly rent: the firm's commitment to an efficient wage‐employment combination forces it to follow a pricing rule such that part of the surplus is transferred to the union.
A DISEQUILIBRIUM MODEL UNDER BILATERAL MONOPOLY*
Authors: Leslie Derek 
Published: May 2007

ABSTRACTThe paper points out a crucial difference between the conventional disequilibrium macro model and partial equilibrium models of wage bargaining, In the former the real wage is constrained to be less than or equal to the marginal product, whereas in the latter the real wage is frequently constrained to be greater than or equal to the marginal product.The paper builds a disequilibrium model under bilateral monopoly, paying explicit attention to the labour market. The well‐known union model of McDonald and Solow forms the basis of the labour market analysis. Just as the three regions of Keynesian Unemployment, Classical Unemployment and Repressed Inflation are configured in the conventional case, an equivalent exercise is undertaken but with the addition of a collectively negotiated wage. The particular wage agreement used is the Nash bargain.The framework is then used to account for the unusual events that occurred in the UK labour market 1979–81, particularly the unprecedented rise in unemployment with no diminution of the inflation rate. It suggests that there was a shift in bargaining advantage in favour of employers, which resulted in an increased share of profits in national income. This regime change exacerbated the unfavourable circumstances for labour, which existed at that time.
PRICE‐COST MARGINS AND INDUSTRY STRUCTURE IN DEVELOPING COUNTRIES: THE CASE OF KOREA*
Authors: Kimenyi Mwangi S. , Lee Jooh , Shughart William F. 
Published: May 2007

ABSTRACTThe structure‐conduct‐performance paradigm is tested using 4‐digit SIC Korean industry data for 1981 and 1986. The study investigates whether the observed institutional differences between developed and developing countries affects the performance hypothesis. The results suggest that structure and conduct variables influence price‐cost margins in much the same way as they do in developed countries. Nevertheless, the Korean government's credit rationing policies, by creating entry barriers, have the most important effects on industry performance.
THE SUBSTITUTABILITY OF CAPITAL, LABOR, AND R&D IN US MANUFACTURING
Authors: Goel Rajeev K. 
Published: May 2007

ABSTRACTThis paper examines the relationship between inputs in industrial production. The inputs studied here are capital, labor, and research and development (R&D). Using translog technology, our cross‐industry analysis of six industries reveals that capital and labor are complements in production while R&D and labor are substitutes. However, the relationship between capital and R&D is not so clear cut. It is also found that constant‐returns‐to‐scale hold for only two of the six industries. A test of sensitivity to changes in the R&D depreciation rates suggests that some industries are sensitive to such changes.
STUDY‐GRANT SCHEMES AND EFFORT: AN ECONOMIC MODEL
Authors: Danish‐Lecker Tikva , Kahana Nava 
Published: May 2007

ABSTRACTThis paper extends Becker's basic model on investment in human capital by introducing effort as a decision variable. Based on this extended model we consider the efficiency of two popular study‐grant schemes and propose a third which unequivocally increases the student's effort and may thereby resolve the moral hazard problem created by the student's self‐interested behaviour. In addition, some policy issues concerning conflicts between the students' and the policy‐maker's objectives are discussed.