Knowledge that Transforms

[This paper presents a method for obtaining the large sample distribution of the mean deviation and related measures of income inequality.]

A nonparametric framework for deriving the asymptotic MSE-optimal predictor for a multiplicative model is presented. The resulting predictor is compared to several known competitors in a limited Monte Carlo experiment. RECENT PAPERS BY Zellner [10] and Teekens and Koerts [7] address themselves to the problem of minimum-MSE prediction in a Cobb-Douglas-type multiplicative model under a lognormal distribution assumption for the disturbance term. Each derives the finite sample predictor (which turns out to be a function of the familiar least-squares predictor) for the model based on the assumption that ?2, the variance of the lognormally distributed disturbance, is known. An approximately optimal finite sample predictor is then suggested, where an estimate of w2 is utilized. Under certain conditions the approximately optimal predictor poses a computational burden. Under others, the predictor is easily computed, but no longer are small sample properties guaranteed. Our purpose in this note is to present a general framework for deriving the asymptotically optimal-MSE predictor for this multiplicative model without the imposition of a distributional assumption at the outset. Not only does this exercise provide us with a convenient vehicle for discussing further the aforementioned contributions, it also yields a viable distribution-free predictor that may

[This paper presents a model of an economy in which the formation of equilibrium is completely explained by the independent optimizing behavior of individual agents, and thus reformulates the concept of equilibrium in a way which is essentially related to that of stability.]

[This paper presents an axiomatic characterization of commodities for which the consumer faces a choice of quality rather than a choice of quantity. Properties of individual and market demand functions for commodities of differing quality levels are derived. Properties of comparative static price changes in response to supply changes at one or more quality levels are also developed. The analysis is then applied to price changes in housing markets.]

The existence of equilibrium points under majority rule is investigated for an n-dimensional issue space and an expanded class of indifference contours. The paper generalizes previous problem formulations and results.

the assumption of equality of variances of error terms between two separate sample regimes. It is shown that the test is well behaved when there are variations of variances if at least one of two sample sizes is very large. However, if two samples are of small size, even moderate heteroscedasticity has considerable effect on the level of significance of the test. In what follows, it is assumed that T1 samples belong to the first regime and T2 samples to the second regime; subcripts 1 and 2 denote the first and the second regimes, respectively. Consider the regression model

In a classical optimal control problem the terminal time, either prescribed a priori or not, is always a real number. In many dynamic optimization problems in economics one is lead to consider optimal control problems in which the terminal time is the extended real number + infinity. These are the so called optimal control problems with infinite horizon. In the paper the author gives a precise formulation for a standard problem of that type and establishes a necessary condition for that problem. (Author)

[A consistent theory of demand is possible without the transitivity axiom. Here it is shown that a class of nontransitive orderings can be represented by a continuous numerical function, in such a way that an individual's demand function may be found by solving a constrained maximum problem.]

[There are two types of mathematical economists, one who applies existing mathematics to economic problems (the best example is Court) and the other who anticipates new mathematical problems within economics. Taking Marx as the second type of economist (Section 1), I discuss two of his problems: the fundamental Marxian theorem (Section 2) and the transformation problem (Section 3). In Section 2 I propose a generalisation of the theorem to the effect that the theorem does not need the labour theory of value and hence is independent of any criticisms of that theory. In Section 3 it is seen that the transformation problem is formally identical with the Markov chain process transforming the initial position to the ergodic position.]