Rational stability of choice functions

Two independent approaches have been used to analyze choices. A prominent notion is rationalizability: individuals choose maximizing binary relations. An alternative is to analyze choices in terms of standards of behavior with the notion of von Neumann–Morgenstern (vNM)-stability. We introduce a new concept ($r-$stability) that in turn extends the notion of stability and rationality. Our main result establishes that every rationalizable choice function is $r-$stable and every vNM-stable choice has an $r-$stable selection. An appealing property of $r-$stability is that well-known solution concepts (top cycle, uncovered set, …) are $r-$stable, while they are neither rationalizable nor vNM-stable.     

Some Methodological Issues on Estimating Foreign Exchange Exposure of US Multinational Firms: Evidence from the Asian Crisis

Abstract

This article asks whether sample specification of firm, period, and exchange rate matters in estimating foreign exchange exposure of US multinational firms. By sampling US firms that had Asian sales and assets from 1996 to 1998, we find that the firms’ returns are more likely to be significantly exposed to the Asian-oriented exchange rate changes for the Asian crisis, when the exchange rate changes were unexpectedly sizable. Also, by examining firms’ exposure in the share of Asian sales and assets, we find that the firms are more exposed as their operations are more involved in the Asian region.     

Conjunctuurpolitiek en internationale verhoudingen

Summary Some problems of business cycle policy are considered with the aid of a simplified model of dutch business life. This model is described by 21 equations, the meaning of which has been discussed elsewhere. In the present article special attention is given to the influence of a given cyclic movement of foreign prices and demand on profits and employment in the Netherlands, under different régimes of economic policy. Chart 1 shows the movements under existing conditions, chart 2 those occurring under a régime of compensating public investment, chart 3 those under a régime of compensating exchange rates and chart 4 gives the consequences of a combination of these two forms of business cycle policy. In a somewhat more general way the question is treated which among a greater number of possibilities would constitute the best policy and it is argued that a combination of compensating exchange rates, compensating public investment, stabilisation of consumption outlay and reduction of speculation opportunities would show the best results.Finally the question of directives as distinguished from that of the instrument of business cycle policy is discussed somewhat nearer. The author is of the opinion that a useful directive for the different forms of business cycle policy discussed is to be seen in the tension barometers given by the Central Bureau of Statistics in De Nederlandsche Conjunctuur (August 1936, p. 16–17).     

De Industrialisatie van China

Naar aanleiding van: Entwicklung, Stand und Aussichten der Industrialisierung Chinas. Uitgave van het Zeitschrift des Instituts für Weltwirtschaft te Kiel. Verlag Gustav Fischer, Jena, Maart 1937.     

Verkenningen langs het micro-groeipad

Summary The theories of the growth of the firm of Mrs. E. Penrose, W. Baumol, R. Marris and H. Albach have two features in common,viz., the formulation of the firm's goal in terms of growth and the analysis of growth stimulating and growth impeding factors. As limiting factors the managerial and the financial restraint, with the “take-over” menace as a special case, get special attention. The analysis of the financial restraint shows the interdependence of limitations to productive capacity and extension of sales as factors setting a limit to the growth of the firm. If the assumption of fixed prices is dropped and a sales function is introduced, both capacity and market restrictions can be included in one comprehensive model.

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De schrijver dankt A. Heertje voor diens stimulerende kritiek.     

Exchange Rates and Concurrent Leasing and Selling in Durable-Goods Monopoly

Theoretical durable-goods models suggest that a monopolist will prefer to lease rather than sell units of output due to the seller’s commitment problem with potential buyers. However, many monopolistic durable-goods manufactures are commonly observed simultaneously leasing and selling output. We provide a theoretical rationale for this observed behavior in firms engaged in trade with a foreign country. In a simple two-period setting we show that a foreign durable-goods monopolist will concurrently lease and sell output if the expected future exchange rate is lower than the current rate. With this concurrent strategy the firm earns higher profit than a pure rental or sales regime. Additionally, our model provides additional theoretical underpinnings for the empirical finding that increases in expected future exchange rates increase the current sales price of durable products. Finally, our analysis examines the role of product durability in determining exchange rate pass-though to domestic prices.

Bankpolitieke studien

Onder banken versta ik in dit opstel uitsluitend de z.g. algemeene banken, dus niet: circulatiebanken, hypotheekbanken, spaarbanken, Raiff-eisenbanken, middenstandsbanken en , Finanzierungsgesellschaften.     

Annsprakelijkheid der leden van coöperatieve vereenigingen

Amsterdam, Maart 1913Prevention is better than cure.     

Financieele Kroniek

In de vorige Financieele Kroniek, pag. 412 regel 10/11, leze men voor conversieleeningen consolidatieleeningen.     

Een leerboek der protectie

Schutzzoll und Freihandel. Die Voraussetzungen und Grenzen ihrer Berechtigung. Von Dr. Richard Schüller, Privatdocent der Universität Wien. 1905. Wien, F, Tempsky; Leipzig, G. Freytag.De schrijver zelf gaf in de Revue Economique Internationale van 1909, II bl. 39 v. een samenvatting van zijn theorie onder den titel distinction entre les droits d'entrée économiquement avantageux ou préjudiciables.Op het vrijhandelscongres te Antwerpen (1910) — dat hij lid was van dit congres, is op zichzelf reeds teekenend! — deed hij een, wellicht door het verzet van Brentano, niet geslaagde poging om het congres zich te doen uitspreken voor een hernieuwing der vrijhandelstheorie. Zie beneden bl. 35 v.In de Economist van 1896 I bl. 320 v. besprak G. een vroeger boek van Schüller: Die klassische Nationalökonomie und ihre Gegner.     

Financieele Kroniek

In de vorige kroniek is een zetfout geslopen. Op pag. 151 dient de dertiende regel van onderen: interst has fallen.... Of course, if the te vervallen. In plaats hiervan dient gelezen te worden: of bullion likewise though it also will attract much capital in the.     

Nog iets over europeesche kolonisatie in de tropen

A European may live long on a tropical elevation provided he does not labour in the sun. But all experience is against his founding a pure European family. SirWilliam Moore.     

Berekening van den omvang der werkloosheid als gevolg van prijsdaling in een gesloten economisch milieu

Dit artikel is een onderdeel van een meer uitvoerige studie getiteld De labilisatie van het economisch leven en de middelen ter bestrijding. De noodzakelijkheid van een rationeel geldstelsel, welke binnenkort bij de N.V. H. D. Tjeenk Willink & Zoon te Haarlem zal verschijnen. 1n) Het eerst vermeld in zijn in 1803 verschenen Traité d'Economie politique, Chap. 15. Voor verdere literatuuropgave zie o.a.Dr. Leonhard Miksch, Gibt es eine allgemeine Ueberproduktion ? Gustav Fisher, 1929.     

Over het onverstandig gebruik van formules en methoden

Naar aanleiding van: Foutieve formules in het bevolkingsvraagstuk door Ir. J. B. Ubbink; zie De Economist, Maart 1937.