THIS PAPER PRESENTS a numerical algorithm for computing full information maximum likelihood (FIML) and nonlinear three-stage least squares (3SLS) coefficient estimates for large nonlinear models. (The proposed algorithm will be denoted algorithm A.) Although the theory of FIML estimation has been available for thirty years [20], FIML estimation has long been regarded as impossible on large nonlinear models.2 The more recently proposed nonlinear 3SLS estimator [191 also poses difficulties for large models.3 Using the algorithm presented in this paper, FIML and 3SLS are now feasible alternatives for estimation of large nonlinear models. The principles behind algorithm A's efficiency can be summarized as follows. First, most of the algorithm's steps explicitly control the mean of each equation's residuals. Large changes in those means are avoided because the FIML and 3SLS estimation problems are extremely sensitive to the residuals' means. Second, the coefficients are grouped by equations and the groups are treated separately during most of each iteration. This focus on individual equations is effective because coefficients within the same equation are generally more

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Kemp and Long demonstrated that it may be preferable to exploit high and low cost resource deposits simultaneously and not in sequence as is typically assumed in the resources literature. They show that it is desirable to delay extraction from low cost pools in order to smooth consumption over time, if the resource in the ground is society's only store of wealth. This paper considers a model in which extracted resources can be converted into capital which may either be consumed or stored to provide for consumption later on. We find that a sufficient condition for the strict sequencing of extraction to be optimal is that stored capital be productive so that it can be used to produce additional capital.

The time path of asset prices is studied within a stationary experimental environment. After several replications prices converge to a perfect foresight equilibrium. A sequential market having an "informational trap" and a futures market are also studied.

Douglas W. Caves, Laurits R. Christensen, W. Erwin Diewert, The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity, Econometrica, Vol. 50, No. 6 (Nov., 1982), pp. 1393-1414

[The estimation and testing of a singular equation system in the context of a general dynamic specification is considered. In an application to factor demand equations, hypotheses suggested by economic theory are expressed in terms of the long run structure of the system under alternative dynamic specifications. Variations in the dynamic specification are found to have a significant impact upon the inferences that can be made about the long run structure.]

In Section 2, we review some important results of the received auction theory, introduce a new general auction model, and summarize the results of our analysis. Section 3 contains a formal statement of our model, and develops the properties of affiliated random variables. The various theorems are presented in Sections 4-8. In Section 9, we offer our views on the current state of auction theory. Following Section 9 is a technical appendix dealing with affiliated random variables.