Journal Article The Market Price of Risk Get access Cornelius M. Schilbred Cornelius M. Schilbred The Norwegian School of Economics and Business Administration Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 2, April 1973, Pages 283–292, https://doi.org/10.2307/2296654 Published: 01 April 1973
Journal Article On Sufficient Conditions for Optimal Stabilization Policies Get access Masanao Aoki Masanao Aoki University of California, Los Angeles and Cambridge University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 1, January 1973, Pages 131–138, https://doi.org/10.2307/2296744 Published: 01 January 1973
Journal Article Missing Data in Econometric Estimation Get access E. G. Drettakis E. G. Drettakis University of Leeds Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 4, October 1973, Pages 537–552, https://doi.org/10.2307/2296587 Published: 01 October 1973
Journal Article A User Cost Approach to New Automobile Purchases Get access Frank C. Wykoff Frank C. Wykoff Pomona College Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 3, July 1973, Pages 377–390, https://doi.org/10.2307/2296457 Published: 01 July 1973
The purpose of this note is to correct an error in my paper [1]. Under the assumptions of the paper, Proposition 3 is not, in general, true. The point at which the proof goes awry is in the use of the mapping n. n is treated in the paper as if it were a function (i.e. a point to point mapping); whereas it is in fact a correspondence (a point to set mapping). n maps points of the unit simplex into itself, using a subset of the Pareto optimal set to obtain the simplex. A given point in the payoff space may be the image of more than one point in the strategy space. Each strategy, s, which maps into a given point in the Pareto optimal set (i.e. which has a given p associated with it in the simplex), can map into a distinct (j in the simplex. Thus the Brouwer theorem cannot be used. While n is surely upper semi-continuous, it need not have convex image sets, ruling out use of the Kakutani fixed point theorem. Furthermore, it need not be lower semi-continuous, ruling out another route to the use of the Brouwer theorem. That route is to use the results of E. Michael [2], which establish that if n is lower semi-continuous, then it has a selection which is a continuous function from the unit simplex into itself. The upshot is that the axioms of [1] must be somehow strengthened in one of the
Journal Article Delivery Lags and the Demand for Investment Get access Louis J. Maccini Louis J. Maccini The Johns Hopkins University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 2, April 1973, Pages 269–281, https://doi.org/10.2307/2296653 Published: 01 April 1973
Ettore F. Infante, Jerome L. Stein; Optimal Growth with Robust Feedback Control12, The Review of Economic Studies, Volume 40, Issue 1, 1 January 1973, Page
Franco Modigliani, Ezio Tarantelli; A Generalization of the Phillips Curve for a Developing Country12, The Review of Economic Studies, Volume 40, Issue 2,
Journal Article Exact Maximum Likelihood Estimation of a Regression Equation with a First-Order Moving-Average Error Get access M. H. Pesaran M. H. Pesaran University of Cambridge Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 40, Issue 4, October 1973, Pages 529–535, https://doi.org/10.2307/2296586 Published: 01 October 1973
For some time economists have been perplexed by the conflict between theoretical labour demand functions which posit decreasing returns to labour and measured labour demand functions which display increasing returns. Kuh [11], Brechling [5], Brechling and O'Brien [6], Ball and St. Cyr [3], and Coen and Hickman [7] are among the economists who, in the recent past, have published articles in which the implied elasticity of output with respect to labour exceeded one. Naturally, the estimates troubled them. Most of them assumed labour explained the observed high elasticity. The labour hoarding hypothesis, developed by Oi [14] and Soligo [17], includes adjustment costs for changing the stock of labour. As a result, firms hold a buffer stock of labour which augments labour productivity in a procyclical fashion. There are a number of other explanations, however. Anderson [2] presented a model with cyclical demand, production of an intermediate product, and production hoarding that led to shortrun increasingreturns in observed labour inputwith respect to final output. Puttyclay models (i.e., positive factor substitution in the planning stage and zero factor substitution once capital is installed, see Allen [1], p. 282) can account for the observed high elasticity of output with respect to labour through a variable capital utilization rate.2 Ireland and Smyth [10] reformulated a putty-putty model (positive factor substitution at any stage) to include a variable capital utilization rate determined by a capital utilization charge. However, their assumption that the ratio of factor rental rates-the cost of utilizing capital to the cost of labour-can be approximated by a constant makes their results equivalent to a clay-clay model. In the labour demand function they derive, the coefficient commonly identified as the elasticity of output with respect to labour in a Cobb-Douglas function is actually a returns to scale coefficient. This paper suggests a simple generalization that helps bring empirical results into closer agreement with theoretical models for any type of production function. We separate manhours, the surrogate for labour in most empirical studies into two heterogeneous components, men and hours. Feldstein [9] hypothesized that increases in average hours may increase labour productivity more than proportionally. His cross-section estimates of a three-factor Cobb-Douglas function (average hours, men, capital) for British manufacturing industries tended to confirm the hypothesis.3 This paper uses Feldstein's hypothesis as a base. We derive and estimate a model that posits the service flow from labour is a non-proportional function of men and hours. The model displays the conventional characteristics of decreasing returns to men and capital, but it has increasing returns for hours. Overtime costs limit the long run demand for hours per man.