[The introduction of ratchet effects into the consumption and investment functions of the Smithies model does not provide an endogenous explanation of cyclical fluctuations and growth, contrary to Smithies' expectation. As in other cycle models, the growth trend can only be explained by exogenous forces.]
[The core is the set of all unblocked allocations. Implicit in this definition is the idea that if an allocation is proposed which could be blocked, some coalition will form and issue a counterproposal which it can enforce. A process of successive counterproposals based on this idea is shown to converge in a finite period of time (amost surely) to the core.]
[Market determination of the value in exchange (price) of money is considered in a general equilibrium finite horizon model. The possibility of the price of money being zero in equilibrium and the role of taxes (payable in money) in preventing a zero price are considered.]
This paper presents a comparison of three distributed lag estimators: OLS, the Almon procedure, and the Hannan inefficient method. Each method is compared for sample sizes of 50 and 100 for several alternative distributed lag shapes and residual process structures. The results not only reveal the relative performance of these estimators, but also provide evidence on each method's performance under misspecification with respect to lag length and the residual process.
[We study an economic model where one group of agents is guided by different prices from those of another group. This situation arises, e.g., in the case of excise taxes, subsidies, and import and export tariffs in international trade. It is established that a decrease in the specified divergence between the equilibrium price vectors implies an increase in welfare in a certain natural sense. The result broadens a conclusion of a classical theorem of welfare economics and answers a question of Foster and Sonnenschein [6]. It also has some bearing on the theory of second best.]
The durabilities of a consumption good produced in a perfectly competitive market or by a monopoly are compared. The analysis is conducted in terms of firm profit maximization in a Cournot industry. Conclusions are based on the properties of the entire optimal path rather than on the steady state alone.
I N 1956 Gale [4] considered a general model of balanced growth and asserted the existence of price vectors which equate the economic growth with the technological growth rate. This model of Gale was an extension of fundamental results earlier proven by von Neumann for the case in which the production space was polyhedral. Recently Hulsmann and Steinmetz [6] demonstrated that Gale's theorem was not true by constructing a counterexample. In this paper we shall prove that Gale's theorem in a modified form is true and with a certain regularization the original theorem of Gale is valid. This regularization will be automatically satisfied by polyhedral production spaces so that as a corollary the proof for the polyhedral version of Gale's theorem will be attained. Finally we show that the counterexample of Hulsmann and Steinmetz [6] does not satisfy this regularization.
When a continuous time model is estimated from its non-recursive discrete approximation, the presence of identities and exogenous variables in the system does not preclude the use of standard procedures. However, if we wish to use the exact discrete model for estimation purposes, the treatment of identities and exogenous variables is not so straightforward. It is found that the procedure based on the exact discrete model is unlikely to be affected by the presence of identities, but when exogenous variables occur in the system some sort of approximation is usually necessary before the model can be estimated with discrete data. An approximate model is constructed to deal with the latter case and the asymptotic properties of estimators derived from this model are investigated. UNDER CERTAIN CONDITIONS, a stochastic model represented by a system of continuously distributed lags can be regarded as the solution of a system,of linear stochastic differential equations. Two general approaches are available if we wish to estimate the parameters of such a system by conventional methods and with discrete data.2 The first approach (see [1 and 2]) is to take a discrete approximation to the model and estimate the approximate model by standard methods. The second approach makes use of the discrete model which is known to correspond to the continuous time model in the sense that observations at equidistant points in time that are generated by the latter system also satisfy the former. The main advantage of the second approach is that no specification error is involved, so that it is possible in some cases to obtain consistent and asymptotically efficient estimators of the parameters in the model. In addition to the arguments of asymptotic theory, the results of a previous study [8] have given some recommendation to the second approach on the basis of small sampling performance. However, the model used in the sampling experiment of this study was relatively simple and it is the aim of the present paper to discuss the use of the second approach in more complicated models. The complications with which we will be concerned are the presence of identities and exogenous variables; both these complications may be expected to occur in more realistic economic, models. Before the procedure is viable when there are identities in the model, we must ascertain whether the disturbance in the exact discrete model has a non-singular
[This paper investigates various properties of a two-sector putty-clay model in which physical durability of capital as well as its economic lifetime is a choice variable. Our model adopts Wicksell-Åkerman's hypothesis that the production of capital goods of greater durability can be accomplished only by incurring greater costs per unit of capital produced. Thus it is a synthesis of Wicksell's durability and putty-clay models. The case in which all capital goods are infinitely durable and are scrapped solely by obsolescence (i.e., pure obsolescence case) will appear as a special case of our model.]