Knowledge that Transforms

Journal Article A Comment on Measuring Horizontal Equity Get access Robert Plotnick Robert Plotnick Dartmouth College Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 95, Issue 2, September 1980, Pages 383–385, https://doi.org/10.2307/1885507 Published: 01 September 1980

John Fountain, Leslie Young; An Extension of the Composite Commodity Theorem: A Note, The Quarterly Journal of Economics, Volume 94, Issue 2, 1 March 1980, Page

Journal Article A Disequilibrium Macroeconomic Model: The Implications of a Correction Get access Panayotis G. Korliras Panayotis G. Korliras Athens School of Economics and Business Science Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 95, Issue 1, August 1980, Pages 199–200, https://doi.org/10.2307/1885358 Published: 01 August 1980

This paper examines the question of whether long-term or short-term interest rates should appear in investment demand functions. Three basic models are examined. The first involves a distribution of time lags required to complete investment projects; the second is based on a simple adjustment-costs model; and the third incorporates uncertainty and risk aversion. The major conclusion is that, except for some special cases which are probably quite unrealistic, both long-term and short-term interest rates affect investment demand.

This paper shows that a "precautionary" demand for money can be derived in models of the state of nature variety with uncertain cash requirements even if sales of assets incur no real costs and investors are risk-neutral. The randomness of asset prices results from uncertainty about the future state of the world that determines cash requirements, hence particular market responses and ultimately equilibrium prices. Positive correlation between the amount of assets to be liquidated and the liquidation price is a sufficient condition for the derivation of an interest-elastic demand for liquidity. The correlation coefficient is a "measure of illiquidity" of a perfectly marketable asset. Interesting comparative static results are also derived.

Journal Article A Model of Forced Saving Based Upon Differential Expectations Get access Michael Hicks Michael Hicks Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 95, Issue 1, August 1980, Pages 181–185, https://doi.org/10.2307/1885355 Published: 01 August 1980

This generalization allows the relative price to vary and explicitly considers Hicks-, Harrod-, and Solow-neutrality. Under certain conditions, the Harrod-neutral and the Solow-neutral shifts are equivalent to the Hicks factor-saving shift. If Hicks-Harrod-Solow neutral or the Hicks factor-saving improvement occurs in one of the two sectors, then the relative price of that good falls, and the level of output of that good increases. However, the level of output of the other good remains constant if Hicks-Harrod-Solow-neutral progress occurs, and decreases or increases according to whether the Hicks x-saving or x-using technological progress occurs in the x-intensive sector.