Knowledge that Transforms

Journal Article Economics of Depletable Resources and Price Ceiling Induced Bias Get access Dwight R. Lee Dwight R. Lee Virginia Polytechnic Institute and State University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 5, October 1980, Pages 999–1002, https://doi.org/10.2307/2296929 Published: 01 October 1980 Article history Received: 01 May 1979 Accepted: 01 April 1980 Published: 01 October 1980

Jerry Green, Françoise Schoumaker; Incentives in Discrete-time MDP Processes with Flexible Step-size, The Review of Economic Studies, Volume 47, Issue 3, 1 Apri

Journal Article Unobservables and the Use of Overlapping Measures as Proxy Variables Get access G. J. Anderson G. J. Anderson University of Southampton Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 2, January 1980, Pages 371–384, https://doi.org/10.2307/2296998 Published: 01 January 1980 Article history Received: 01 November 1977 Accepted: 01 April 1979 Published: 01 January 1980

Arguments for state support of declining industries generally stress a need to maintain employment or slow down redundancy. The strongest political case for support is commonly made by firms whose factors see little immediate alternative demand for their services, hence possess low shadow wages. Greater long-run possibilities of factor reallocation cause political pressure to diverge from economic arguments, but it appears to be difficult for the latter to influence political payoffs and decisions. A sequence of politically optimal but myopic decisions may seriously worsen resource allocation: see e.g. Gelb (1977). Nevertheless, slow growth and low investment reduce the speed of economic restructuring in developed countries while capital and technology flows lead to the swift creation of manufacturing capacity in middle-income developing countries. International agreements limit selective interventions in product markets, while the increased power of organized labour and cushioning of the unemployed weaken traditional market mechanisms of factor reallocation. Given anything like the present political systems of most developed countries, the reconciliation of efficient long-run resource allocation with pressure for selective support of declining industries promises to be one of the most intractable problems of the 1980s: see, for example, World Bank (1978). Support methods must be developed which satisfy immediate pressures for cushioning, yet lead to minimal longerrun resource misallocation. In 1974 the Labour government founded three worker cooperatives: Meriden, Kirkby and the now defunct Scottish Daily News (SDN). The political furor over their merits has obscured the cooperatives' unique significance as testing grounds for an alternative pattern of employment-maintaining state support, temporary or permanent in nature. We here analyse the SDN financing method as industrial cushioning and suggest the reappraisal of attitudes to cooperativism, not necessarily on ideological grounds, but because of the method's potential, in certain circumstances, as a factor screening and project control mechanism, helping to reconcile short-run political pressure with longer-run economic efficiency without the need for difficult, costly direct monitoring. Worker control may be a useful managerial strategy for the state. The next section outlines salient points of the SDN cooperative. We then note three reasons why conventional support policies tend to lead to resource misallocation and indicate the advantages of the SDN intervention method. Section 4 models, at individuallevel, its implications for factor selection and internal efficiency. In Section 5 the model is

Journal Article Vertical and Horizontal Communication in Economic Processes Get access Robert L. Welch Robert L. Welch University of Kentucky Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 4, July 1980, Pages 733–746, https://doi.org/10.2307/2296939 Published: 01 July 1980 Article history Received: 01 July 1976 Received: 01 September 1979 Published: 01 July 1980

Prasanta K. Pattanaik, Manimay Sengupta; Restricted Preferences and Strategy-Proofness of a Class of Group Decision Functions, The Review of Economic Studies, V

Itzhak Venezia, Haim Levy; Optimal Claims in Automobile Insurance, The Review of Economic Studies, Volume 47, Issue 3, 1 April 1980, Pages 539–549, https:/

In a comment published in the Review of Economic Studies Professors Santoni and Church (1972) corrected a mathematical flaw which existed in Lipsey's and Lancaster's (1956) seminal article on the theory of second best. The correction of that error, although it had no effect on the statement of the general theorem of second best, had a significant impact on the necessary conditions for the attainment of the second best position. Professors Santoni and Church, however, in their analysis on the equivalence of first best and second best optimality conditions, missed a point which is important because it proves a theorem whose position in the literature of Welfare Economics goes back at least as far as Pigou (1932). We may paraphrase this theorem as follows. If there is a distortion in some sector of the economy, then the Pareto and second best solutions for the rest of the economy are equivalent if the marginal rate of substitution (transformation) between any two industries is equal to the marginal rate of distortion between these two industries. In this comment we will provide a rigorous proof of this theorem and also give an economic example which validates the theorem under quite general conditions. In formulating the proof we will employ the same notation as that employed by

Journal Article On Distribution According to Labour—A Concept of Fairness in Production Economies Get access Mikiro Otsuki Mikiro Otsuki Tohoku University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 5, October 1980, Pages 945–958, https://doi.org/10.2307/2296924 Published: 01 October 1980 Article history Received: 01 May 1977 Accepted: 01 February 1980 Published: 01 October 1980