[Assuming each assignment of strong preference orderings to individuals is equally likely, we examine how the probability of social intransitivity (under asimple majority vote decision rule) changes with changes in the number of alternatives and the number of voters. A similar study is made of violation of quasi-transitivity and failure of existence of a maximal alternative.]
problems of a particular equation in the model. Examples are given. Further generalizations are also considered but only conditional results are given. Further work is suggested.
[This paper deals with the characterization and properties of "information improvement" which Theil has applied in Economics. A functional equation in three variables is formed. The solutions of this functional equation under suitable boundary conditions are defined as information-improvement functions. The "information improvement" is then defined in terms of information-improvement functions.]
Phoebus J. Dhrymes, R. Berner, D. Cummins, A Comparison of Some Limited Information Estimators for Dynamic Simultaneous Equations Models with Autocorrelated Errors, Econometrica, Vol. 42, No. 2 (Mar., 1974), pp. 311-332
This paper develops an economic theory of replacement investment that can provide a basis for specifying an econometric model of investment behavior. The long-run and short-run effects of changes in the interest rate and in tax laws are examined. The paper also investigates several reasons why the common assumption of a technologically constant rate of replacement is incorrect even as an asymptotic limit. LARGE VARIATIONS in capital spending continue to motivate econometric studies of investment behavior. The past decade has seen the development of attempts to model net investment as the adjustment of the capital stock to a desirable level. Building on earlier work by Lutz [35], Haavelmo [21], and others, Jorgenson and his collaborators (e.g. [24, 28, 31, and 33]) have provided an operational model of net capital accumulation that relates desired capital to the cost of capital services. Although serious objections have been raised about the specification of the optimal capital stock (including [5, 9, 13, and 15]) and about the arbitrary nature of the adjustment dynamics [37], it is likely that some form of this general model will continue to provide a framework for future investment studies. In contrast to these developments of a theory of capital expansion, replacement investment continues to be analyzed in terms of a non-economic model of technical necessity. Jorgenson and others have adopted the simplifying assumption that replacement investment is a constant proportion of the capital stock.2 This assumption has been challenged and contrary evidence has been offered by Feldstein and Foot [14] and Eisner [10]. The purpose of the current paper is to examine several aspects of a theory of replacement investment. We hope not only to show that a model with a constant replacement rate is implausible and unsatisfactory but also to provide a basis for better empirical work in the future. The magnitude of replacement investment (the annual rate of replacement investment generally exceeds expansion investment) makes this issue a matter of substantial importance.
[The introduction of ratchet effects into the consumption and investment functions of the Smithies model does not provide an endogenous explanation of cyclical fluctuations and growth, contrary to Smithies' expectation. As in other cycle models, the growth trend can only be explained by exogenous forces.]
[The core is the set of all unblocked allocations. Implicit in this definition is the idea that if an allocation is proposed which could be blocked, some coalition will form and issue a counterproposal which it can enforce. A process of successive counterproposals based on this idea is shown to converge in a finite period of time (amost surely) to the core.]