[We develop a demand model from a utility tree possessing interactions at all levels. The model is both highly flexible and globally integrable. We use an approach to recursive subaggregation permitting convenient estimation with an unlimited number of goods, and we apply the approach to the construction of a food price forecasting model.]
[This paper develops a theory of the firm's demand for labor when workers, at the time they are hired, know that they may later be laid off. The derived behavior shows how the firm, in response to price falls of increasing severity, will first reduce hours of work. After a minimum work week has been reached layoffs start. The point at which this occurs depends upon the income workers expect to receive if they are laid off. Since unemployment insurance (UI) benefits are an important determinant of this income level, they influence the number of layoffs. Given the absence of an effective incentive tax in practice, we would predict that the present UI system encourages layoffs. An effective, incentive tax could stop this encouragement. Two possible wage strategies are explored, both of which are consistent with the basic layoff and hours model. The flexible wage policy has the advantage of giving no incentive to the firm to default on the (privately) efficient layoff rules derived earlier, but seems to be inconsistent with observed short-run wage policy. The fixed wage policy has its strength and weakness the other way around.]
[This paper presents a general proof of a fundamental proposition of rationing theory and demonstrates that it applies to some basic postulates of macroeconomic theory, including the consumption function. The approach used is to study individual consumer behavior under conditions of quantity constraints. In so doing, the choice-theoretic foundations of the household sector's excess demand functions, as well as the functions themselves, in a general disequilibrium model are developed. These functions include quantities as well as prices as arguments. The response to a change in an effective quantity constraint is shown to depend on the substitutability between the goods involved. Responses to price changes are also determined. The results are then related to the literature on macroeconomic disequilibrium.]
L'6tude de C. Fourgeaud et A. Nataf visant a degager toutes les classes de fonctions de consommation en prix et revenu reels compatibles avec la th6orie des choix, contient une erreur; l'indice de prix associe a une de ces classes s'avere plus general que celui degage par ces auteurs. Dans cette note, apres avoir corrige cette erreur, on examine l'utilite 6conomique et empirique de ces classes qui sont apparues jusqu'ici depourvues d'interet, en y introduisant des quantit6s oblig6es. Il en resulte une generalisation interessante du celebre systeme lineaire de depenses dont on explicite la forme de l'indicateur d'utilit6 indirecte.
THE ALGORITHM DESCRIBED here is used to generate all simultaneous submodels of an econometric model. F. M. Fisher's correspondence principle [1] for simultaneous equation models requires that all simultaneous submodels of the full model be solvable by a particular form of simple iteration, and suggests that the smallest simultaneous submodels be tested first. This algorithm does that by using the primitive v cycle (hereafter called seed) description of a simultaneous equation model [2]. Using the seed description of a model, the algorithm generates every simultaneous submodel only once and its execution time is linear in the number of simultaneous submodels. That number may be very large, however, and for this reason the algorithm proceeds step-by-step, generating simultaneous submodels using previously generated submodels. In this way, only successful submodels (those which pass Fisher's iteration test) need to be used to generate more simultaneous submodels. This feature makes the application of Fisher's test practical even for very large models. The algorithm, called SIFT, is written in 360/370 assembly language. It is available on the National CSS time-sharing network which operates in the USA and Europe or from the author at National CSS, 485 Summer Street, Stamford, Connecticut 06901.
[The chief difficulty in applying Aitken estimators to large linear systems stems from the dimensionality of the inverse. Here the conjugate gradient algorithm is applied to the problem, leading to substantial savings in storage and some savings in time. Given that the information matrix is not computed, an inference procedure is developed which involves two easily computed statistics which straddle the conventionally estimated standard errors. The paper is intended to open the way for the application of more efficient estimation procedures to large econometric systems.]
[In Kaneko [6] we considered the relationship between the ratio equilibria and the core of the voting game G(N, W,r), in which a fixed ratio is given. In this paper we present a new voting game G(N, W) in which no fixed ratio is given, and consider the relationship between the ratio equilibria and the core of G(N, W). We prove that the core of G(N, W) coincides with the ratio equilibria.]
[Consider a small country with a strictly convex production possibility set, where non-traded goods as well as traded goods are produced. Suppose that tariffs are the only causes of the distortions in this economy. In the present paper, we will prove that in this economy reduction of the highest tariff rate to the level of the second highest rate will improve welfare if (i) inferior goods do not exist, (ii) the good on which the highest tariff rate is imposed is substitutive to all the other goods both in consumption and in production, and (iii) the non-traded goods are substitutive to all the other goods both in consumption and in production.]
The Shapley value is shown to be avon Neumann-Morgenstern utility function. The concept of strategic risk is introduced, and it is shown that the Shapley value of agame equals its utility if and only if the underlying preferences are neutral to both ordinary and strategic risk.