Restricted houseswapping games

Restricted houseswapping games (RHGs) are a generalization of ‘one-sided matching games’, in which we specify a class II* of ‘allowable’ simple trading cycles. The cores of such games may be empty. Given II*, all possible closed RHGs have non-empty cores of II* is ‘strongly balanced’. Examples include the one-sided matching markets (^{Shapley and Scarf. Journal of Mathematical Economics 1974. 1. 23–37}. ^{Tijs et al., OR Spektrum 1984, 6, 119–123}; ^{Quinzii, International Journal of Game Theory 1984, 13, 41–60}) and the two-sided matching markets (^{Gale and Shapley. American Mathematical Monthly 1962. 69, 9–16}; ^{Shapley and Shubik, International Journal of Game Theory 1972, 1, 111–130}: and ^{Demange and Gale Econometrica 1985, 53, 873–888}).We then consider the subclass of RHGs in which there is no transferable resource. In this case, a weaker condition on II*, called ‘weak balancedness’, is sufficient to guarantee core non-emptiness. In addition, if II* is not weakly balanced, then there exists a preference profile such that the strict core of the resultant game is empty.Several other examples are given of II* that are (a) strongly balanced: (b) weakly balanced but not strongly balanced: and (c) not even weakly balanced.Finally, we discuss the issues of equilibrium definition, existence, and core-equilibrium allocation equivalence in RHGs.     

Evaluation of P(Xt>Yt ) when both Xt and Yt are residual lifetimes of two systems

Let the random variables X and Y denote the lifetimes of two systems. In reliability theory to compare between the lifetimes of X and Y there are several approaches. Among the most popular methods of comparing the lifetimes are to compare the survival functions, the failure rates and the mean residual lifetime functions of X and Y. Assume that both systems are operating at time t > 0. Then the residual lifetimes of them are X_t=X?t | X>t and Y_t=Y?t | Y>t, respectively. In this paper, we introduce, by taking into account the age of systems, a time‐dependent criterion to compare the residual lifetimes of them. In other words, we concentrate on function R(t ):=P(X_t>Y_t) which enables one to obtain, at time t, the probability that the residual lifetime X_t is greater than the residual lifetime Y_t. It is mentioned, in Brown and Rutemiller (IEEE Transactions on Reliability, 22 , 1973) that the probability of type R(t) is important for designing as long‐lived a product as possible. Several properties of R(t) and its connection with well‐known reliability measures are investigated. The estimation of R(t) based on samples from X and Y is also discussed.     

Henry George and British Socialism

Abstract . Henrys George, the American social reformer and Single Tax advocate, had a decisive impact on native British socialism considered apart from the Marxist and revolutionary types imported from the continent. Karl Marx and Frederick Engels were hostile critics but the typically English Fabian Society was influenced by George's seminal ideas. The Fabians were especially attracted to two notions: the conception that George gave to the thought of his time, that poverty was an evil preventable by political intervention—by State action; and that the disparity in incomes could be explained by the theory of unearned increment. In turn Sydney Olivier, George Bernard Shaw, Sidney Webb, Annie Besant, H. G. Wells and E, R. Pease came under the influence of George. Soon to affect the Fabians, however, was the development of the economist, P. H. Wicksteed, beyond George to Jenons and Marginalism. Key figures in the Parliamentary and Independent Labour parties almost achieved land value taxation.     

Agreement and consensus in a Q-mode research design: an empirical comparison of measures,and an application

Subject of this paper is the analysis of consensus within small groups of respondents, based on a proportionally large number of variables. The target group is researchers who are interested in Q-mode research. Measures of agreement are compared, and an application from a recent project is presented. Cohen’s κ is the preferable measure, Krippendorff’s α is an alternative, which is based on a different concept of expected disagreement. At group level, along with κ and α for multiple raters, additional measures are r _wg, intraclass correlation, and κ _SC. Predictions about level differences between groups can be assessed by a t-test and θ     

Nature in Economic Theories: Hans Immler Traces Recognition of the Environment—and Its Neglect—in Various Classics

Abstract . Labor and capital are usually considered as the primary factors of production, the costs of which are of utmost importance. In contrast, nature (including all natural resources), as the essential third factor, is disregarded. She is generally assumed to be always available, self-regenerating, and to be exploited without long-term costs. In other words, she is more or less viewed as a constant. Hans Immler's new treatise represents an important contribution in that he emphasizes the role and function of the natural environment, and its neglect, in the formulation of theories of value and their long-term consequences on contemporary economic theories and on the person and society. This essay traces Immler's evaluation with extensive quotations—especially with regard to Physiocracy and the classical economists— of nature's role and function, or their neglect, in the formulation of theories of value through the writings of Aristotle, St. Thomas Aquinas, William Petty, John Locke, Adam Smith, David Ricardo, Karl Marx, and others—all dealt with in Part 1 of his book—and Francois Quesnay and the Physiocrats—the topic of Part 2.     

Semiparametric estimation of a censored regression model with an unknown transformation of the dependent variable

This paper presents a method for estimating the model Λ(Y)=min(β′X+U, C), where Y is a scalar, Λ is an unknown increasing function, X is a vector of explanatory variables, β is a vector of unknown parameters, U has unknown cumulative distribution function F, and C is a censoring threshold. It is not assumed that Λ and F belong to known parametric families; they are estimated nonparametrically. This model includes many widely used models as special cases, including the proportional hazards model with unobserved heterogeneity. The paper develops n^1/2-consistent, asymptotically normal estimators of Λ and F. Estimators of β that are n^1/2-consistent and asymptotically normal already exist. The results of Monte Carlo experiments illustrate the finite-sample behavior of the estimators.     

Book Reviews

Book reviewed in this article: Beauregard, R. , editor, 1989: Economic restructuring and political response. Blanke, B., Heinelt, H. , and Macke, C.-W. 1987: Großstadt und Arbeitslosigkeitein Problemsyndrom im Netz lokaler Sozialpolitik. Block, F.R. 1988: Revising state theory: essays in politics and postindustrialism. Breckner, I. and Krummacher, M. 1985: Regionalentwicklung zwischen Technologieboom und Resteverwertung. Krummacher, M., Schrooten, F. and Wupper, H. 1986: Umbruch der Stadt — z. B. Bochum. Forrest, R. and Murie, A. 1988: Selling the welfare state: the privatisation of public housing. Gottdiener, M. 1987: The decline of urban politics: political theory and the crisis of the local state. Harris, A., Lloyd, G. and Newlands, D. 1988: The impact of oil on the Aberdeen economy. Huttman, E. and van Vliet, W. editors, 1988: Handbook of housing and the built environment in the United States. Keim, D. , editor, 1989: Arbeit an der Stadt: Plädoyers für eine selbstproduktive Politik der Stadtentwicklung. Lefèvre, Ch., Body-Gendrot, S. et al. 1988: Les villes des Etats-Unis. Peet, R. , editor, 1987: International capitalism and industrial restructuring: a critical analysis. Porteous, J.M. 1989: Planned to death: the annihilation of a place called Howdendyke. Prigge, W. , editor, 1987: Die Materialität des Städtischen: Stadtentwicklung im gesellschaftlichen Umbruch. Scott, A.J. 1988: New industrial spaces. Smith, M. P. 1988: City, state and market: the political economy of urban society. Solomos, J. 1988: Black youth, racism and the state: the politics of ideology and policy. Stoker, G. , 1988: The politics of local government. Tomlinson, R. and Addleson, M. , editors, 1988: Regional restructuring under apartheid: urban and regional policies in contemporary South Africa. Weiss, M. A. 1987: The rise of the community builders: the American real estate industry and American land planning. White, M. 1987. American neighbourhoods and residential differentiation. Wolch, J. and Dear, M. , editors, 1989: The power of geography, how territory shapes social life.     

On maximum likelihood prediction based on Type II doubly censored exponential data

In this paper, the maximum likelihood predictor (MLP) of the kth ordered observation, t _k, in a sample of size n from a two-parameter exponential distribution as well as the predictive maximum likelihood estimators (PMLE's) of the location and scale parameters, θ and β, based on the observed values t _r, …, t _s (1≤r≤s<k≤n), are obtained in closed forms, contrary to the belief they cannot be so expressed. When θ is known, however, the PMLE of β and MLP of t _k do not admit explicit expressions. It is shown here that they exist and are unique; sharp lower and upper bounds are also provided. The derived predictors and estimators are reasonable and also have good asymptotic properties. As applications, the total duration time in a life test and the failure time of a k-out-of-n system may be predicted. Finally, an illustrative example is included. Received: August 1999     

BOOK REVIEWS

Book Reviews in this articles Evans, Paul and Bartolome, Fernando Must Success Cost So Much? Fidler, John The British Business Élite: its Attitudes to Class, Status and Power Wood, Stephen (Ed.). The Degradation of Work? Skill, Deskilling and the Labour Process Savall, H. Work and People Poole, Michael Theories of Trade Unionism: A Sociology of Industrial Relations Machin, John, Stewart, Rosemary and Hales, Colin Towards Managerial Effectiveness Rawlinson, J. G. Creative Thinking and Brainstorming Brown, William (Ed.). The Changing Contours of British Industrial Relations: A Survey of Manufacturing Industry Jelinek, M., Litterer, J. A. and Miles, R. (Eds.). Organizations by Design: Theory and Practice Thomas, R. E. The Government of Business Sharp, Clifford The Economics of Time     

George on Free Trade, At Home and Abroad: The American Economist and Social Philosopher Envisioned a World Unhindered in Production and Exchange

Abstract . Henry George's theories on international trade are little known though he is respected as an advocate of free trade. He went along with the free traders of his time in three-fourths of his classic, Protection or Free Trade. But he went far beyond the others in the last fourth of his book. “True” free trade, he argued, in the debate over protection that engaged some of the best minds in England and America, applied to domestic production as well as production for export. Hindrances to trade, like most tariffs, taxes, subsidies or other government policies, make products more expensive for the working people, worsen their situation by increasing economic rent to resource owners at the expense of labor and capital, and misallocate resources, maximining inefficiency and cost. The principle of free trade leads to Justice and equal rights, he held, seeking to advance his vision of a free society. Short run and long run solutions to protectionism are presented.     

Henry George's Thought in Relation to Modern Economics

Abstract . Henry George's influence on economic thought has been neglected although his readers included Clark, Marshall, Hobson, Commons, Lerner and Böhm-Bawerk and his ideas provoked thought and discussion, Clark made clear that George stimulated him to develop his marginal productivity theory. But the 19th century American theorist affected or touched upon the neoclassical concept of capital, the theory of externality, the neoclassical versus the classical concept of monopoly; the entitlements approach to distributive justice; the burden of debt and other transfer incomes and capital formation and the theory of expectations. George's influence is wider than generally recognized. The last of the classical economists, he wrote in high Victorian prose about some very modern problems.     

Nonparametric regression function estimation using interaction least squares splines and comlexity regularization

Let (X, Y) be a pair of random variables withsupp(X)⊆[0,1] ^l andEY ²<∞. Letm ^* be the best approximation of the regression function of (X, Y) by sums of functions of at mostd variables (1≤d≤l). Estimation ofm ^* from i.i.d. data is considered. For the estimation interaction least squares splines, which are defined as sums of polynomial tensor product splines of at mostd variables, are used. The knot sequences of the tensor product splines are chosen equidistant. Complexity regularization is used to choose the number of the knots and the degree of the splines automatically using only the given data. Without any additional condition on the distribution of (X, Y) the weak and strongL ₂-consistency of the estimate is shown. Furthermore, for everyp≥1 and every distribution of (X, Y) withsupp(X)⊆[0,1] ^l ,y bounded andm ^* p-smooth, the integrated squared error of the estimate achieves up to a logarithmic factor the (optimal) rate      

Zur Existenz der höheren Momente von Punktprozessen

Zusammenfassung Mit Hilfe der bedingten Wahrscheinlichkeiten für das Eintreten von genauk Ereignissen im Zeitpunktt _o unter der Bedingung, daß im Zeitpunktt _o mindestens ein Ereignis eintritt, wird eine Beziehung formuliert, die für die Existenz desk-ten Moments des die Ereignisse zählenden Punktprozesses notwendig ist. Hat dieser Punktprozeß unabhängige Zuwächse, so ist die angegebene Beziehung auch hinreichend für die Existenz desk-ten Moments.

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Summary Using the conditional probability thatk events occur at timet _o given that at least one event occurs att _o a condition is formulated which is necessary for the existence of the moment of orderk of the point process counting these events. This condition is sufficient, too, if the point process has independent increments.

     

The Effect of Monopoly Power on National Income, Wage Income and Interest Rates

Abstract . That part of business profits due to monopoly power or other forms of imperfect competition is capitalized into stock prices.Common stock is part of gross wealth, and as such provides a store of value for consumers against emergencies. A very simple graphical model is developed to show how interest rates, gross wealth holdings, and holdings of physical capital are jointly determined. In turn the levels of national income, property income, and wage income are determined once the stock of physical capital and the interest rate are known. In essence, capitalized monopoly profits substitute for physical capital, reducing the economy's stock of capital goods. Similar effects are produced by government debt.     

Stratified realization of comparative probabilities

A definition of realization for comparative probabilities using coherent conditional probabilities is proposed in a finite setting and named stratified realization. The extent of stratified realization is examined in detail and comparisons are made with realization by means of a strictly positive, not necessarily bounded real measure (orP ₁-realization). Given a comparative probability which admits stratified realization, necessary conditions forP ₁-realization are found. A sufficient condition for the same problem is then proved, and the relationship with other forms of realization, is briefly discussed.

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Sommario In questa nota viene proposta, in ambiente finito, una definizione di realizzabilità di prbabilità qualitative mediante, probabilità condizionate coerenti, detta realizzabilità stratificata. Tale nozione è basata su un'opportuna caratterizzazione delle probabilità condizionate coerenti e generalizza la realizzabilità con misure reali strettamente positive (oP ₁-realizzabilità).La realizzabilità stratificata viene esaminata in dettaglio, fornendo condizioni necessarie affinché una probabilità qualitativa realizzabile in tal senso sia ancheP ₁-realizzabile. Si prova poi per lo stesso problema una condizione sufficiente. Infine viene brevemente discussa la relazione fra realizzabilità stratificata e alcune altre nozioni di realizzabilità.

     

Ratio-based estimators for a change point in persistence

We study estimation of the date of change in persistence, from I(0)$I\left(0\right)$ to I(1)$I\left(1\right)$ or vice versa. Contrary to statements in the original papers, our analytical results establish that the ratio-based break point estimators of Kim [Kim, J.Y., 2000. Detection of change in persistence of a linear time series. Journal of Econometrics 95, 97–116], Kim et al. [Kim, J.Y., Belaire-Franch, J., Badillo Amador, R., 2002. Corringendum to “Detection of change in persistence of a linear time series”. Journal of Econometrics 109, 389–392] and Busetti and Taylor [Busetti, F., Taylor, A.M.R., 2004. Tests of stationarity against a change in persistence. Journal of Econometrics 123, 33–66] are inconsistent when a mean (or other deterministic component) is estimated for the process. In such cases, the estimators converge to random variables with upper bound given by the true break date when persistence changes from I(0)$I\left(0\right)$ to I(1)$I\left(1\right)$. A Monte Carlo study confirms the large sample downward bias and also finds substantial biases in moderate sized samples, partly due to properties at the end points of the search interval.     

On bootstrapping panel factor series

This paper studies the asymptotic validity of sieve bootstrap for nonstationary panel factor series. Two main results are shown. Firstly, a bootstrap Invariance Principle is derived pointwise in i$i$, obtaining an upper bound for the order of truncation of the AR polynomial that depends on n$n$ and T$T$. Consistent estimation of the long run variances is also studied for (n,T)→∞$(n,T)\to \infty$. Secondly, joint bootstrap asymptotics is also studied, investigating the conditions under which the bootstrap is valid. In particular, the extent of cross sectional dependence which can be allowed for is investigated. Whilst we show that, for general forms of cross dependence, consistent estimation of the long run variance (and therefore validity of the bootstrap) is fraught with difficulties, however we show that “one-cross-sectional-unit-at-a-time” resampling schemes yield valid bootstrap based inference under weak forms of cross-sectional dependence.     

Absentee Ownership of Farmland and State and Local Tax Policy: Income Tax Promotes Absenteeism, But the Property Tax Can Be Used to Strengthen Family Farms

Abstract . The incentive effects of state and local tax policies in promoting or inhibiting the ownership of farmland by non-operators are evaluated. Previous research on the economic, social and environmental effects of absentee ownership is reviewed as well as evidence regarding the impact of tax laws on absentee owners versus owner-operators. The Federal tax laws, it is found, work to increase land prices, reduce entry into farming by young farmers, and increase absentee ownership. State income tax policies may reinforce these effects. Property tax policies, on the other hand, may counteract income tax laws by giving tax relief preferentially to owner-operators. Several modifications of property tax relief programs are suggested.     

A law of large numbers for abstract random variables

Summary It was emphasized by Fréchet [8] that in many of the practical applications, we get, as a result of a random experiment, an abstract random variableX belonging to a setX. Givenn determinations of the variableX, an arithmetic meanZ _n is introduced in 2-. It reduces to the classical arithmetic mean, whenX is the set of real numbers. Moreover, if the random variableX is Gaussian, having a meanM(X), and belongs to a certain (4-) familyF, the introduced arithmetic meanZ _n constitutes an exhausting estimation [5] of the meanM(X).     

Games of chance with multiple objectives

We consider games of chance between two players: Player M can win only by amassing point totals in several categories before player N scores a prescribed total number n of points. Let M have k objectives, with m _i points required in category i and probability q _i of scoring a point in that category. We resolve certain special cases: (a) For all m _i equal, the probabilities of M winning are ordered by majorization of the vectors (q ₁,...,q _k ). (b) For all q _i equal, the probabilities of M winning are ordered by majorization of the vectors (m ₁,...,m _k ). (c) For all m _i equal and all q _i equal, the probability of M winning approaches 0 as n → ∞ or as k → ∞. The results, which follow from inequalities of majorization and Schur convexity, are in accord with intuition.