[This paper provides an existence proof of an oligopolistic equilibrium which solves some difficulties in the construction of a consistent descriptive model of imperfect competition.]
[We suggest a frequency-domain class of instrumental variables estimators for all of part of an open, linear system of differential equations. While the estimators have similar statistical properties to those of [6] they seem preferable computationally in those situations in which they can be used. The estimation procedure consists of two basic steps, the first of which we describe as consistent and the second, efficient. We discuss the possible instruments that can be used. This type of procedure, like that of [6], could also be used to efficiently estimate discrete time systems, under weak conditions on the residuals.]
[This paper is concerned with Fisher's tests for index numbers. In particular, uniqueness and inconsistency theorems are proved. Beyond that, Fisher's system of tests is weakened considerably. Without any regularity assumption (such as differentiability or continuity) it is shown that every subset of the system of weakened tests is consistent while the whole system is inconsistent. The question of how far the whole system must be weakened to obtain a consistent set of tests is also considered.]
This paper considers the effect of aggregation on the variance of parameter estimates for a linear regression model with random coefficients and an additive error term. Aggregate and microvariances are compared and measures of relative efficiency are introduced. Necessary conditions for efficient aggregation procedures are obtained from the Theil aggregation weights and from measures of synchronization related to the work of Grunfeld and Griliches.
and FORTRAN IV which is designed to accommodate most researchers' everyday econometric needs. However, this program is particularly useful when spectral methods are combined (in an ex post sense) with regression and simultaneous equations estimation., Residuals from regression or simultaneous equations estimation are easily saved by EAS and used in later spectral computations by using only two program statements.1 All spectral computations are highly efficient since the fast Fourier transform techniques developed by Cooley and Tukey [2] are used throughout. The program also allows algebraic expressions to be used directly in regression statements to define dependent or independent variables. Hence, special regression equations like the harmonic analysis model can be easily estimated with a single program statement. A partial enumeration of the program's capabilities is as follows: ordinary and weighted least squares regression; multivariate regression and estimation of Zellner's seemingly unrelated regression system; structural estimation of simultaneous equations by two-stage least squares, three-stage least squares, limited information maximum likelihood, k-class, double k-class, h-class, and Nagar's minimum bias k-class methods; power spectrum analysis, cross spectrum analysis, and simple frequency domain regression; random number generation and Monte Carlo methods; principal components analysis; estimation of partially nonlinear models by likelihood search techniques; and estimation of certain distributed lag models by Dhrymes' [3] methods. The program accommodates problems in which the sample size and number of yariables do not exceed 32,767 and 1,823, respectively, but the dynamic core allocation features of PL/1 are used to economize on all smaller problems. The design of the program is especially useful when a large data bank (subject to the abQve limitations) is to be maintained, updated, and periodically accessed for various types of econometric analyses. Most small- to medium-sized
An Arrow social welfare function was designed not to incorporate any interpersonal comparisons. But some notions of equity rest on interpersonal comparisons. It is shown that a generalized social welfare function, incorporating interpersonal comparisons, can satisfy modifications of the Arrow conditions, and also a strong version of an equity axiom due to Sen. One such generalized social welfare function is the lexicographic form of Rawls' ARRow (1) INVESTIGATED the problem of how to amalgamate the personal welfare orderings of the members of a society into a social welfare ordering. His approach was deliberately designed to avoid making any kind of interpersonal comparison. He was then able to show that such an approach must fail as long as one insists on certain other apparently appropriate conditions. It would therefore seem that an obvious way around Arrow's impossibility theorem is to make interpersonal comparisons and to use them in the construc- tion of a social ordering. Moreover, some considerations of equity which many people would think relevant for making social choices are specifically excluded by Arrow's approach. This paper shows how, if interpersonal comparisons are made in a certain way, one can construct a social welfare ordering by a method which satisfies suitably modified forms of Arrow's 1963 conditions. Moreover-as is just as well, given that the interpersonal comparisons are deliberately based on a notion of equity- it is also possible to satisfy an extra condition, which is a kind of equity axiom. The lexicographic extension of Rawls' difference principle, or maximin rule, satisfies all these conditions. In addition, it is the only rule or principle which satisfies a condition which underlies Suppes' grading principle, together with these condi- tions. Section 2 presents preliminary definitions and notation, and shows how some considerations of equity are excluded by Arrow's approach to social choice. Section 3 shows how these considerations of equity may be represented by ordinal interpersonal comparisons of the kind discussed in Sen (6), how they are related to an equity axiom due to Sen (7), and how Sen's equity axiom may be generalized. Section 4 defines generalized social welfare functions (GSWF's) and shows how Arrow's conditions can be modified to apply to GSWF's. Section 5 'This is an expanded and subsequently revised version of a paper presented to the European
[Keynes' general attitude toward mathematical economics and econometrics, respectively, is discussed in Sections 2-3. The remainder of the paper is devoted to a description and analysis of the interaction between the Keynesian revolution of the mid-1930's and the revolution that had actually started somewhat earlier with respect to the preparation of current official estimates of national income. In this connection an attempt is made to explain why Kuznets' work in the U.S. in the early 1930's was immediately integrated into official national income estimates in the U.S., where Colin Clark's work in Britain was not--with the result that official British national income estimates did not begin to appear until almost a decade later.]
[This paper develops a simulation model to study the income distribution effects--total and factorial-of optimum restrictions on the flows of factors and products across national boundaries. Imposing both optimum tariffs and optimum taxes on factor flows allows an increase in national income that is much larger than the sum of the two effects evaluated separately. Often there are large shifts in the incomes of factors even though total income changes only slightly.]
Economic researchers are rarely able to conduct surveys or design experiments to obtain evidence with which to assess theories or hypotheses but must rely on information, such as the national income accounting data, compiled by the government bureau of statistics. The bureau revises its national income estimates as more information becomes available or as a result of changes in methods of estimation or minor changes in definitions or classifications. The purpose of this paper is to show that the correlation structures and the autoregressive moving average representations of a number of Australian quarterly time series extracted from the income accounts are relatively insensitive to data revision. The same is true of the cross correlation functions between the pre-whitened series.