Contents Volume 24 2003

Volume Contents

Contents Volume 24 2003     

Feasibility Criteria in Monetary Trade

Consider the problem of how agents in a pure exchange competitive framework acquire their desired bundles of goods through a process of decentralized trade, i.e., in the absence of an auctioneer. Since the agents' wants are not mutually coincident, a medium of exchange is necessary to conduct trade. One relevant question to ask in this context is what property a commodity should possess in order for it to be eligible as a medium of exchange? This note discovers one such attribute, that the good be included in the final consumption vector of each agent. The condition is an improvement over an earlier one due to Ostroy and Starr (1974) which requires each agent to have large quantities of the medium of exchange in her/his initial endowment of commodities. JEL Classification Numbers: D50, E42.     

On some alternative criteria for justice between generations

This paper is concerned with Rawls' principle of just savings. Both the intergenerational maxi–min solution and the Nash equilibrium are analyzed in the context of a simple growth model and a specific preference structure. The results are compared to the Utilitarian solution. The maxi–min solution is intertemporally inconsistent and all the Nash equilibria are Pareto inefficient. The latter part of the paper analyzes intergenarational strong equilibria, the α-core and the β-core. It is shown that for the model in question the set of strong equilibria is empty, and that both the α- and β-cores are roughly speaking equal to the set of all Pareto efficient programmes of accumulation.     

Are People Ashamed of Paying with Food Stamps?

We evaluate the claim that marginal ‘welfare stigma’causes a dollar of food to provide less utility if bought with food stamps rather than cash, and that this explains why, in the United States, the marginal propensity to consume food out of food stamps is larger than that out of income. This hypothesis has been advanced to explain the so‐called ‘cash‐out puzzle’: the empirical observation that the marginal propensity to consume food out of food stamps is much higher than that out of income, even for households who spend some cash income on food. We develop a theoretical model to identify the restrictions imposed by the hypothesis that the puzzle is indeed caused by such stigma. Using data from San Diego County, we find that two of the three predictions of the marginal stigma model are violated. These results cast serious doubt on the marginal stigma hypothesis.     

User Acceptance of E-Collaboration Technology: An Extension of the Technology Acceptance Model

This study investigates the applicability of Davis' Technology Acceptance Model (TAM) in the user acceptance of electronic collaboration technology. A courseware management tool is used to test the various findings of TAM. Perceived usefulness of the technology emerges as a positive impact on perceived usefulness, and usefulness, in turn, has a negative relationship with system usage. Additionally, certain aspects of system usage influenced student performance in the course. Prior use of the system also affected system use.     

Uncertainty, arbitrage and intra–industry trade

When firms in the same industry located in different regions or countries experience shocks to production costs in their respective industries that are imperfectly correlated, arbitrage opportunities automatically lead to trade. Trade can either stabilize or destabilize the price faced by producers in a given country. Producers' surplus is affected, owing to the 'variance–covariance' effect, while consumers' surplus is more directly affected through the variance of the product price. We examine how consumers' surplus, producers' surplus, and social welfare are affected when the regions switch from autarky to free trade in the presence of industry and region–specific cost shocks. JEL Classification: F10, D80
Incertitude, arbitrage et commerce intra–industrie. Quand les entreprises d'une même industrie localisées dans diverses régions ou différents pays font face à des chocs, qui ne sont pas parfaitement co–reliés, dans leurs coûts de production, les possibilités d'arbitrage entraînent automatiquement un accroissement du commerce. Ce commerce inter–régional ou international peut soit stabiliser ou déstabiliser les prix auxquels les producteurs font face dans un pays donné. Le surplus aux producteurs est directement affecté via l'effet de «variance–covariance>>, alors que le surplus aux consommateurs est plus directement affecté via la variance du prix du produit. Ce mémoire examine comment le surplus aux producteurs, le surplus aux consommateurs, et le niveau de bien–être social sont affectés quand les régions passent de l'autarcie au libre échange dans le cas où existent des chocs dans les coûts qui sont spécifiques à l'industrie et à la région.