On-the-job human capital investment and intertemporal substitution: New evidence on intertemporal substitution elasticity

This paper argues that estimates of intertemporal elasticity of substitution (IES) obtained from standard life-cycle models are subject to a downward bias because they neglect the life-cycle and demographic patterns of on-the-job human capital investment. Taking into account the fact that part of a worker's time at work goes to acquiring human capital in addition to his main task of producing goods, we extend the standard life-cycle model to include time spent on investing in on-the-job human capital and propose a new framework for identifying the IES. We obtain statistically significant evidence that conventional estimates of IES for total hours at work are biased downward about 20% at the intensive margin. The corresponding IES estimates for production hours are biased downward even more, which provides an explanation for why output fluctuation is greater than hours/employment fluctuation over the business cycle.     

Model uncertainty and intertemporal tax smoothing

In this paper we examine how model uncertainty due to the preference for robustness (RB) affects optimal taxation and the evolution of debt in the Barro tax-smoothing model (1979). We first study how the government spending shocks are absorbed in the short run by varying taxes or through debt under RB. Furthermore, we show that introducing RB improves the model׳s predictions by generating (i) the observed relative volatility of the changes in tax rates to government spending, (ii) the observed comovement between government deficits and spending, and (iii) more consistent behavior of government budget deficits in the U.S. economy. Finally, we show that RB can also improve the model׳s predictions in the presence of multiple shocks.     

Instability and fluctuations in intertemporal equilibrium models: Presentation

This paper introduces the special issue of the Journal of Mathematical Economics on Instability and Fluctuations in Intertemporal Equilibrium Models.     

E-stability and stability of adaptive learning in models with private information

The paper demonstrates how the E-stability principle introduced by Evans and Honkapohja [2001. Learning and Expectations in Macroeconomics. Princeton University Press, Princeton, NJ] can be applied to models with heterogeneous and private information in order to assess the stability of rational expectations equilibria under learning. The paper extends already known stability results for the Grossman and Stiglitz [1980. On the impossibility of informationally efficient markets. American Economic Review 70, 393–408] model to a more general case with many differentially informed agents and to the case where information is endogenously acquired by optimizing agents. In both cases it turns out that the rational expectations equilibrium of the model is inherently E-stable and thus locally stable under recursive least squares learning.     

A general approach to intertemporal and interspatial productivity comparisons

The purpose of this paper is to introduce a general methodology for analysing the sources of intertemporal or interspatial differences in outputs and costs, general in the sense that our methodology allows the productivity analyst to ‘break out’ of the quadratic ‘straightjacket’ imposed by the class of superlative index number comparisons. Starting fromTaylor's series expansions about the two points to be compared, we develop a general growth accounting equation which can be approximated to any desired degree of accuracy, depending on the information available.The theoretical framework is applied to two recent examples of interspatial comparisons which use the Tornqvist superlative index. In the first example, we show that the biases in regional Canadian total manufacturing cost-efficiency comparisons which result from the use of this index are negligible. However, in the second example, it is shown that the Tornqvist index imparts a substantial bias in United States-Japan total domestic economy productivity comparisons. The index consistently overestimates the relative productivitylevel of the U.S. economy and misses the turning point, when the Japanese economy becomes more efficient, by two years.     

The foundation of stability in extensive games with perfect information

This paper studies the decision-theoretic foundation for the notion of stability in the dynamic context of strategic interaction. We formulate and show that common knowledge of rationality implies a “stable” pattern of behavior in extensive games with perfect information. In the “generic” case, our approach is consistent with Aumann’s [Aumann, R.J., 1995. Backward induction and common knowledge of rationality. Games and Economic Behavior 8, 6–19] result that common knowledge of rationality leads to the backward induction outcome.     

An intertemporal efficiency and technology measurement for tourist hotel

This study develops an intertemporal efficiency model designed to accommodate unbalanced panel data. In an intertemporal efficiency evaluation, there is no guarantee that sample sets of panel data over continuous periods will be balanced, especially in a competitive industry. Therefore, the proposed model is offering a more flexible approach to intertemporal efficiency assessment. The other main contribution is the establishment of indicators, TPR and IPR, which are used to identify the influences of frontier shift and individual change on efficiency. The proposed model is used to evaluate a dataset of tourist hotels from 2007 through 2011, and the empirical results provide several findings for tourist hotel management.     

废弃电子线路板资源化。再生利用技术现状和探索

在社会主义市场经济快速进步和发展的今天,电子工业已经成为我国国民经济发展的重要组成部分。电子工业的发展不仅加快了我国的经济发展速度,同时还为人们的生活、工作提供了极大的便利。不过随着电子工业飞速发展,电子产品的更新换代速度也随之加快,废旧电子产品的数量以及品种也在不断增加,电子线路板作为电子产品的主要部件之一,被大量的...     

Effects of limit order book information level on market stability metrics

Using an agent-based model of the limit order book, we explore how the levels of information available to participants, exchanges, and regulators can be used to improve our understanding of the stability and resiliency of a market. Ultimately, we want to know if electronic market data contains previously undetected information that could allow us to better assess market stability. Using data produced in the controlled environment of an agent-based model’s limit order book, we examine various resiliency indicators to determine their predictive capabilities. Most of the types of data created have traditionally been available either publicly or on a restricted basis to regulators and exchanges, but other types have never been collected. We confirmed our findings using actual order flow data with user identifications included from the CME (Chicago Mercantile Exchange) and New York Mercantile Exchange. Our findings strongly suggest that high-fidelity microstructure data in combination with price data can be used to define stability indicators capable of reliably signaling a high likelihood for an imminent flash crash event about one minute before it occurs.     

The cross‐Euler equation approach to intertemporal substitution in import demand

This paper addresses the empirical dilemma in identifying and estimating the parameters governing the intertemporal elasticity of substitution (IES) for import demand. We propose a new concept, the cross‐Euler equation, for overcoming this empirical dilemma. IES parameters are estimated by exploiting the cointegrating restriction implied by the cross‐Euler equation. Further, by comparing the IES estimates from the cross‐Euler equation to those from the standard Euler equation, we test the hypothesis whether import demand is affected by nuisance factors. Using the US data, we found imported goods consumption to be robust against nuisance factors, but not for domestic goods. Copyright © 2005 John Wiley & Sons, Ltd.     

Urban land use allocation and environmental pollution control: An intertemporal optimization approach

This paper deals with long-run, multiperiod strategies of environmental pollution control and allocation of urban land uses. Air pollution generated by the industrial, residential and transportation sectors is taken as representative of the urban environmental quality problem. A comprehensive urban development optimization model is presented, integrating three submodel components for industrial, residential and transportation activities. The analysis focuses on the intertemporal linkages between technological and locational decisions, accounting for land availability, air pollution generation, control and impact, technological change, relocation of activities, land development and redevelopment, and transportation flows and network expansion. The modeling approach is of the cost-effectiveness type: the efficiency criterion is the total intertemporal cost of urban development and operation, and the objectives of the environmental policy are expressed in terms of standards to be respected. The methodology is illustrated by an empirical application to the Haifa metropolitan area.     

Gross job flows and institutions in Europe

We examine job flows in the 1990s for a sample of 13 European countries. By using a dataset of continuing firms that covers all sectors, we find firm characteristics to be important determinants of job flows, with smaller and younger firms within services typically having a larger degree of job turnover. Once controlled for firm and sectoral effects, the role of institutions in the dynamics of job creation and destruction is examined. As expected, employment protection is found to reduce job flows. Similarly, countries with higher unemployment benefits and more co-ordinated wage bargaining systems are characterised by lower job flows.     

Global governance in new public environmental management: An international and intertemporal comparison of voluntary standards' impacts

The aim of this paper is to analyse the indirect effects of environmental management system implementation and certification. Specifically, the paper comprehensively assesses the effects of International Organisation for Standardisation (ISO) 14001 and European Union Eco‐Management and Auditing Scheme (EMAS) certification as well as experience with implementing environmental management systems on (a) organisational activities outside the scope of environmental management systems, (b) pollution prevention, and (c) product stewardship. This is done by applying multivariate regression analysis to a large multicountry and multiperiod dataset. The analysis finds heterogeneous effects that are limited specifically as concerns pollution prevention and product stewardship and cannot establish clear links to national business systems. Given this and the differences between environmental management system standards, implications for global governance in the context of new public environmental management and the role of national governments in implementing sustainability, even beyond environmental protection, are discussed. Ultimately, the paper evidences on potential limitations of the major international environmental management system standards ISO 14001 and EMAS in supporting the diffusion of advanced practices such as pollution prevention and product stewardship that are necessary for sustainable development. In doing so, it highlights that government‐led public environmental management remains crucial for organising governance, especially in the context of voluntary standards that are applied internationally.     

Mutual fund flows and window-dressing

We use a sequential game to analyze an agency problem in the mutual fund industry where a representative fund manager considers window-dressing his portfolio holdings for the purpose of attracting fund flows from a representative investor. The manager is motivated to window-dress to improve the investor's perception of managerial skill which may positively affect fund flows in the next period. However, the investor may suspect window-dressing and thus downgrade perceived managerial skill. The model supports a Bayesian Nash equilibrium where the manager window-dresses only when receiving a low return in the first period and the investor withdraws funds only when observing low returns in both periods. Consequently, we show that window-dressing is a rational behavior even when fund outflows may result.     

An expository critique of the Takayama—Judge models of interregional and intertemporal market equilibrium

In this paper an attempt is made to expound the spatial-temporal multi-product allocation and price equilibrium models originally proposed by Takayama and Judge (1971). Certain restrictive features of these models are highlighted and an alternative specification which overcomes these restrictions and replaces both the single and multiple storage period models of Takayama and Judge is outlined. The enhanced realism of this new model and its relatively simple structure should commend it to regional economists concerned with policy questions involving the production and distribution of a wide range of commodities.     

Information flows and adaptation in Tanzanian cottage industries

The aim of this research is to identify channels of information flows and their impact on business adaptation and survival. The analysis is set within a theoretical framework of information market failure and information flows. The paper draws on empirical data from a survey comprising approximately 400 small-scale entrepreneurs in dressmaking and woodworking industries at different levels of centrality in four regions in Tanzania. The data reveal that half of the businesses are growing and one-third have increased profitability by significant adaptations last year. Most changes occur in products and design. Customers and the media represent the most important sources of business information, followed by family members and business partners. Independent variables that significantly influence adaptability include customer relations, education, media exposure, social networks, and mobility. Associations are strongly modified by the entrepreneurs’ age and gender and by businesses’ size and location. The paper concludes that cottage industries in Tanzania have a remarkable ability to survive. Garment and woodwork markets are still predominantly local and competition from external businesses is limited. Access to business information and new ideas should be improved, however, to counteract growing competition from the modern sector.