Knowledge that Transforms

A family of tests of significance is developed for coefficients in a single equation of a simultaneous system., Different members of this family are distinguished by the k-class estimator on which they are based, and on the alternative hypothesis against which they test. The size of the test is found when the disturbances are small, and the test is shown to be consistent if plim k = 1 or k = λ, the limited information maximum likelihood value.

Publisher Summary The work extends the results of an earlier paper by Hahn ; it presents a model of a barter economy with a sequence of markets in which each trader operates with his own transaction technology. An equilibrium is proved to exist and the efficiency of equilibrium is discussed.

The paper compares the power functions of the conventional tests of significance based on asymptotic theory with those of some alternative tests suggested by Dhrymes and Richardson and Rohr and also a test that was suggested earlier by Anderson and Rubin in a simple two equation model by means of Monte Carlo experiments.

[In the theory of production it is frequently assumed that the scale elasticity is decreasing with scale. There are, however, very few empirical studies that provide support for this assumption. The results of this study, based on individual establishment data, suggest quite clearly that the scale elasticity is decreasing with scale in Norwegian mining and manufacturing.]

RegWuTest performs a Wu (or Durbin-Wu-Hausman) specification test on a regression just estimated by instrumental variables. Because it works off the last regression, there are no parameters. Wu(1973), Alternative tests of independence between stochastic regressors and disturbances, Econometrica vol 42, 529-546.(This abstract was borrowed from another version of this item.)

The core is the set of all allocations that cannot be blocked by any coalition no matter how improbable is its formation. Extending the insights of the Continuum School, this article shows that restrictions placed on the formation of coalitions do not enlarge the core very much if the finite economy is large. (Из Ebsco)

[This paper establishes certain conditions for the validity of Nagar's approximations to the mean and second moments of econometric estimations, where the estimators are rational functions of the OLS estimator of the reduced form coefficients, and of the corresponding estimate of the equation error variance matrix. The criteria depend upon the existence, and asymptotic orders of magnitude, of the moments of the estimators.]

[This analysis generalizes the concept of a private-goods contract curve to an economy with public goods. It provides a derivation of the properties of the set of Pareto-optimal points in n-space. The paper concentrates on situations where the taxation system for financing the public goods is externally imposed; the efficiency goal is thus "mechanism-constrained Pareto optimality." The results of the main analysis are applied to assess performance of several group decision procedures.]

Assume that to each pair (x, y) of elements of the set A there corresponds probability p(x, y) that y will be chosen as having more of a certain attribute, if the pair (x, y) is presented to the subject. It is shown that if the p(x, y) satisfy a certain set of (logically independent) conditions, then there exists an (essentially unique) measure f of the attribute of elements of A, such that probabilities p(x, y) depend only on differences between f(x) and f(y).