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Factor Prices, Expectations, and Demand for Labor

Econometrica 1975 43(4), 757
[This paper examines the determinants of the demand for labor by fourteen two-digit manufacturing industries of India, and in particular the role of factor prices and expectations, to aid understanding of the causes of the low rates of labor absorption in the manufacturing sector. This is done within the framework of neoclassical models of factor demand. A method is suggested for measuring expectations. Our results show that adverse factor prices, long adjustment lags, low output elasticities, and the shift in the industrial structure in favor of the capital goods sector are some of the more important factors responsible for the observed low rates of labor absorption. Finally, some implications of our results for studies relating to labor demand functions in general are discussed.]

A Disaggregate Analysis of Consumer Choice under Uncertainty

Econometrica 1975 43(5/6), 877
[The standard two-period consumer choice problem, where current consumption must be decided upon subject to uncertainty about future income and prices is considered in this paper. Previous analyses have been limited to an economy where either there is only one commodity or consumer preferences have a restrictive form. The primary objective of this paper is to generalize these analyses so that these limitations are eliminated. This is accomplished by applying the theory of duality.]

Observations on the Shape and Relevance of the Spatial Demand Function

Econometrica 1975 43(4), 669
[The purpose of this paper is to set forth a general theorem on the shape of free spatial market demand curve and on the shape of the spatial competitive market demand curve. It is demonstated that the free spatial demand curve is necessarily convex to the origin regardless of the shape of the shape of the individual demands which comprise it. But the shape of the spatial competitive market deamnd curve is shown to depend upon the behavioral assumptions used in the competitive. Three basically different competitive models are presented with contrasting results. Elasticity and price effects under each type of competition are determined and evaluated as is the effect of spatial competition on prices. Different interpretations of price data tend to result from conceptions of aggregate spatial demand curves vis a vis the classical spaceless demand curve.]