Exchange rate shocks and the current account under monopolistic competition: An intertemporal optimization model

This paper examines the current-account effect of a devaluation in a Chamberlinian model where both saving and investment are based on intertemporal optimization. It shows that devaluation tends to deteriorate the current account along the time horizon, leading to a reduction of the stock of foreign assets permanently. In contrast to recent work, these real effects do not rely on short-run disequilibrium in the goods or labor market. Besides, a temporary devaluation may generate hysteresis effects on both micro- and macro-economic aspects of a small economy.     

中国城市基础设施垄断竞争的制度安排

加入WTO以后，随着我国经济开放度进一步提高，国外雄厚的资金、先进的技术以及科学的管理方法将快速进入我国基础设施领域，对我国传统的垄断运营方式产生影响。所以，本文在对基础设施垄断剖深入研究的基础上，提出垄断与竞争相互兼容的对策方案，并由此设计了提高基础设施经营效率的制度安排。     

The persistence of government expenditure shocks and the effect of monopolistic competition on the fiscal multiplier

In this paper, we demonstrate that the influence of monopolisticcompetition in the product market on an economy's impact responseto fiscal shocks depends on the persistence of these shocks.While short-lived increases in lump-sum financed governmentexpenditure have a stronger effect on labor supply if pricesare above marginal costs, the response of employment decreasesin the markup if shocks are highly persistent. However, we alsoshow that, while the impact response of labor supply to temporarygovernment expenditure shocks may be reduced by monopolisticcompetition, the fiscal multiplier is always higher if firmshave market power.     

Towards a unified theory of the firm: An historical approach

Most microtheorists have been preoccupied with the productive aspects of the firm, tending to neglect the questions of capital investment and finance. However, the interdependent nature of production, investment, and finance has not gone totally unrecognized. Over the past 50 years, a handful of economists have written on this interdependence. These economists' works form the intellectual background on which this study is based. With the insights thus gained, the essential features of a unified theory of the firm is outlined.     

A political economy theory of foreign investment: An alternative approach

The present paper uses the political economy model developed by Grossman and Helpman and studies the equilibrium of a game between the two countries; the home country, which exercises the trade policy for maximizing its objective function, and the foreign country, which controls the level of its capital export for the similar purpose. It is shown that if the production costs of the two countries are identical, the equilibrium of the game in which the two countries make simultaneous move will very likely achieve free trade.     

宠物产业竞争的博弈论分析

宠物产业概论 宠物在我国有着悠久的历史，在《史记》中就有秦代宫廷养犬的记载。在过去，饲养宠物是达官显贵的专利，普通老百姓只能养一些土狗、土猫，其作用主要是看家护院和捕捉老鼠。把狗猫当宠物来饲养，对老百姓来讲是可望不可及的事。随着人民生活水平的日益提高，宠物也越来越多的进入寻常百姓家。     

Keynesian and neo-classical growth models: A sequential analytical approach

Summary By means of Marshall's method of analysing complex dynamic processes an attempt has been made to position Keynesian and neo-classical growth theories. Three periods have been distinguished: the short period, the medium period and the long period. By extending disequilibrium theory to the medium and the long run, models have been developed for each of the three periods. Keynesian growth theory appears essentially a theory of the medium period, neo-classical a theory of the long period. The main differences between the two theories concern the formation of expectations with respect to factor prices and the behaviour of capacity utilisation. In contrast with neo-classical theory the growth process in Keynesian growth theory does not show a tendency to Walrasian growth equilibrium.     

Lowering the age requirement for adult courts: An analytical framework

The influence of drugs, drug money, gang-related incidents and the ease of acquiring a lethal weapon are all contributing factors to the juvenile crime problem. In the past, we have tried two approaches to reducing the inordinate amount of crime: increasing the budget for law enforcement and imposing more stringent statutes and stiffer penalties on those apprehended. However, one particularly effective way to increase the sentence or fine for juvenile offenses, that has not been considered generally, is to reduce the age requirement for adult courts.     

Underdevelopment and the economics of corruption: A game theory approach

Previous attempts to treat corruption are surveyed critically. A game theory approach is preferred on the grounds that it can most effectively explain the basis for decisions of reasonable men to be corrupt. A simple model is presented showing how bribery might be a dominant strategy. A prisoner's dilemma type of situation emerges with the added complication that the judge and jailer may be corrupt. Other conclusions are that one official will not accept bribes from more than one firm. It is impossible to predict which firm will win the contract. No obvious solution emerges and legal remedies are discounted. This paper then reviews the principal general equilibrium effects and concludes that their likely effect on economic development is negative.     

An analytical defence of basic needs: The optimal-savings perspective

This paper seeks to provide an analytical defence of the basic needs approach to planning by invoking arguments derived from optimal-savings models. It shows that the ‘optimal’ provisions of basic needs, far from reducing growth, can have a salutory effect on it.     

Intermarket network externalities and competition: An application to the media industry

Intermarket network externalities occur when the utility of a good produced in a given industry varies with the size of the demand for a good produced in another. A particularly significant example of this phenomenon is provided by the interaction between the media and advertising industries. Media consumers vary according to their willingness to pay for a media good, which depends on the advertising volume. In the advertising market, advertisers vary according to their willingness to pay for an advertisement, which also depends positively on the audience reached. We model a situation of competition between two content providers who are rivals in both the media and advertising industries, choosing simultaneously the newspaper prices and the advertising rates. We characterize the equilibria of the game and explore how they depend on audience attitudes towards advertising. Our main finding is that two-sided interactions may induce exit by one of the media companies from either only the advertising market or both markets.     

Price determination in monopolistic markets with inventory adjustments : The case of nickel

Zusammenfassung Preisbestimmung auf monopolistischen M?rkten mit Lagerbestandsanpassungen am Beispiel von Nickel. — In diesem Aufsatz wird ein einfaches Modell konstruiert, das die Rolle der Lagerbestandsanpassung bei der Preisfestsetzung und den Produktionsentscheidungen durch die INCO (Preisführerin auf dem Welt-Nickelmarkt) berücksichtigt. Die empirischen Ergebnisse best?tigen die eingangs aufgestellten Hypothesen: Preise und Produktion werden niedriger angesetzt, wenn auf dem Markt unerwünscht groβe L?ger vorhanden sind. Sie werden erh?ht, wenn der Lagerbestand sehr niedrig ist. Das Kriterium, nach dem beurteilt wird, ob L?ger reichlich sind oder nicht, ist jedoch nicht der tats?chliche Lagerbestand, sondern der Abstand zwischen dem tats?chlichen und dem gewünschten Bestand.

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Résumé La détermination des prix sur les marchés monopolistes au cas des ajustements des stocks: Le marché de nickel. — Dans cet article nous construisons un modèle simple qui incorpore le r?le des adjustements des stocks sur la détermination du prix et la décision de la production d’INCO, qui fixe le prix sur le marché mondial de nickel. Nos résultats empiriques sont consistants avec l’hypothèse présentée dans l’article: Le prix et la production sont fixés au niveau plus bas s’il y a des stocks d’excès et sont augmentés en réponse au niveau bas des stocks. Cependant, le critère pour dire si des stocks sont hauts ou bas n’est pas le niveau actuel des stocks mais la différence entre le niveau actuel et désiré.

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Resumen Determinación de precios en mercados monopolísticos en el caso de ajustes de inventarios: el caso del niquel. — En este artículo construimos un modelo simple que incorpora el rol de ajustes de inventarios sobre la fijación del precio y la decisión de productión del INCO, quien determina el precio en el mercado mundial del níquel. Nuestros resultados empíricos son consistentes con la hipótesis planteada en el artículo. Esta es, precio y producción se fijan a un nivel inferior cuando hay inventarios excesivos en el mercado y se elevarán en respuesta al bajo nivel de inventarios. Sin embargo, el criterio de decir que los inventarios son altos o bajos no es el nivel verdadero de los inventarios sino que la medida en que éstos discrepan de sus niveles deseados.

     

Modernization,inter-caste marriage,and dowry: An analytical perspective

As economic growth and development occurs in India, it has been thought that dowry would decline as an institution. However, the practice of dowry has rapidly spread to regions in India where previously it was not extensively practiced and dowry inflation may be occurring. In this paper, a simple analytical model of dowry, based upon caste determined status differentials, is developed. The model assumes that some inter-caste marriage occurs. The implications of the model are that gross dowry inflation is fueled by economic growth, but net dowry remains unchanged. More importantly, unequal growth stimulates an expansion of the practice of dowry to lower castes.