Duality theory for dynamic optimization models of economics: The continuous time case

This paper establishes that the competitive allocation process is the only informationally decentralized mechanism for exchange environments which (i) achieves Pareto optimal allocations; (ii) gives each consumer an allocation which is, according to his preferences, at least as good as his endowment; (iii) satisfies certain regularity conditions; and (iv) has a message space of the smallest dimension necessary to satisfy (i–iii).     

A dynamic theory of the declining aggregated labor income share: Intangible capital vs. tangible capital

Reports of the literature documenting the declining labor share of income have increased greatly in the past few years, which is opposed to one of the famous “Kaldor's stylized facts” of growth. The declining labor income share has been observed since the 1980s in a number of countries, and especially in the United States. Recent studies have revealed the following five major driving forces of the declining labor share: (i) supercycles and boom-busts, (ii) rising and faster depreciation, (iii) superstar effects and consolidation, (iv) capital substitution and automation, and (v) globalization and labor bargaining power. We set up a two-sector optimal growth model with the R&D intermediate sectors producing intangible capital. By integrating driving factors (ii) through (iv) above into the model, we demonstrate the long-run decline of the aggregated labor income share.     

On the theory of the firm under uncertainty and the cost of capital

The interaction between the firm's productive behavior under uncertainty and its cost of capital is shown to affect its optimal output. The source of this interaction is linked to the firm's degree of operating leverage.     

On the time stability of the output–capital ratio

This paper is concerned with the role of the output–capital ratio in growth models. In the first part we highlight the behaviour of the output–capital ratio along the balanced growth path in the models of Solow [Q. J. Econ. 70 (1956) 65] and Romer [J. Polit. Econ. 94 (1986) 1002]. In the second part we assess the stability of the ratio for some industrial countries.     

资金时间价值理论在企业财务管理中的应用研究

资金具有价值累积的时间效应,是现代企业财务管理活动中应重点研究的对象。在此背景下介绍了资金时间价值理论的内涵,并从筹资和资金周转的角度研究了货币时间价值理论的应用情况,对于解决财务管理问题和企业发展问题具有重要的指导作用。     

On the endogeneity of output in dynamic labour-demand models

This paper investigates the endogeneity of output in the context of the standard dynamic labour-demand model. Using a panel of Dutch firms, we find that the assumption of endogeneity of output cannot be rejected, so that an adjusted procedure has to be followed in which information on the output expectations of entrepreneurs is used. The estimated effect of the endogenous, current output variable on employment appears to be significantly larger than the effect of the exogenous, expected output variable. The adjustment parameter of employment is however, remarkably robust against distinct specifications for output.     

浅谈水务建设企业资本结构存在问题及其优化

资本结构是现代财务管理的核心理论体系组成部分,它对企业的财务风险以及资金成本等具有较强的影响作用。水务建设企业作为民生服务型国有企业,目前在发展过程中面临着自身造血功能不足、市场化能力不足和融资困难等问题,资本结构不尽合理。在此背景下,本文以某水务建设集团的相关财务数据为基础,对其资本结构现状进行纵向分析,并在此基础上总结出水务建设企业资本结构存在的问题,然后据此提出相应的资本结构优化对策,希望能够对水务建设企业的资本结构优化提供一定的借鉴。     

Replacement and the rental value of capital equipment subject to obsolescence

For a vintage model of capital equipment expressions for the implicit rental value and the optimal replacement policy are derived from the hypothesis of profit maximization. These will give unique solutions independent of product market conditions provided that two particular sequences converge to the same limit. The replacement rules of Terborgh, Smith, and Brems are shown to be special cases of this general model and also to depend on the particular convergence property of the sequences. The relationship of certain payoff period criteria to the optimal policy is also discussed.     

A note on capital goods durability in the Walrasian theory of capital formation and credit

Journal of Economics -     

试论企业经营者人力资本激励与约束

本文从企业经营者人力资本的一般特征入手,进一步延伸分析了企业经营者人力资本的产权特征,在此基础上论述了企业经营者激励与约束的制度选择,即赋予企业经营者剩余控制权和部分剩余索取权。     

Fixed capital in the Ricardian theory of value and distribution

This paper examines the determination of exchange values, income distribution, output and population in a Ricardian stationary state with fixed capital under less restrictive assumptions than previous studies. A fully determined and internally consistent model is derived with differing capital/labour ratios between sectors, with emphasis on showing that the assumptions made are drawn from Ricardo's writings. The model is extended to include gold and foreign trade.     

The theory of capital utilization and the putty-rubber production function

This paper extends the theory of optimal shift-work to the presumably realistic case in which the ex post elasticity of substitution between labor and capital services is neither zero nor equal to the ex ante elasticity. The paper considers both the CES and the VES as candidates for the ex post function, and gives reasons for preferring the latter. The introduction of ex post substitutability where none existed before is found to increase the profitability of shift-work.     

The classical roots of the Austrian theory of capital and entrepreneurship

The paper deals with the continuities and discontinuities between some classical, Austrian and neo-Austrian authors with regard first to the theory of capital and then to the theory of entrepreneurship. Part I focuses on the elements of continuity between the classical and the Austrian theory of capital. These elements have been singled out by dealing first with the distinction between individual and national capital; and then with the difference between the resulting circulating-fixed capital and free-invested capital distinctions in the light, first, of the concept of roundaboutness and, then, of the method of vertical integration. Part II focuses on the elements of continuity between the Austrian theory of individual behaviour and the classical theory of national wealth. The distinctions between logical and historical time and between economics of time and economics in time are used to assess the links between the theory of capital as developed by the classics and Böhm-Bawerk, on the one hand, and the theory of entrepreneurship as developed by the neo-Austrians, on the other.     

Perturbations of Matrices: A theorem on the perron vector and its applications to input-output models

This is a much revised version of my paper The Effects of Errors in Matrices on the Perron Vector: An Application to Input-Output Models, which was presented at the 1987 European Meeting of the Econometric Society, held in Copenhagen. I would like to thank Gerard Sierksma and Albert E. Steenge for valuable discussions and two anonymous referees for their helpful comments.     

Ex ante capital position,changes in the different components of regulatory capital and bank risk

We investigate the impact of changes in capital of European banks on their risk-taking behaviour from 1992 to 2006, a time period covering the Basel I capital requirements. We specifically focus on the initial level and type of regulatory capital banks hold. First, we assume that risk changes depend on banks’ ex ante regulatory capital position. Second, we consider the impact of an increase in each component of regulatory capital on banks’ risk changes. We find that, for highly capitalized, adequately capitalized and strongly undercapitalized banks, an increase in equity or in subordinated debt positively affects risk. Moderately undercapitalized banks tend to invest in less risky assets when their equity ratio increases but not when they improve their capital position by extending hybrid capital or subordinated debt. On the whole, our conclusions support the need to implement more explicit thresholds to classify European banks according to their capital ratios but also to clearly distinguish pure equity from hybrid and subordinated instruments.     

On pitfalls in the construction of family-based models of population growth: a note

Recently, several attempts have been made to construct an economic theory of population based on a formal theory of the family of the type developed by Becker in 1981, but there are serious limitations in all such efforts. The typical family's problem may have no solution, even with a well-behaved concave utility function. Moreover, even when the family's maximum problem has a unique solution, the phase diagram for the stock of capital may contain no steady state other than the origin. Finally, even when there exists a nontrivial steady state for the stock of capital, the community nevertheless may be destined for extinction. The first of these pitfalls concerns the internal consistency of the models, while the second and third concern the compatibility of the models with some gross facts of life. The pitfalls can be avoided, within the Becker framework by suitably restricting the family's utility and production functions, but the restrictions required are severe. This paper shows that, alternatively, the pitfalls sometimes can be avoided by going slightly outside the Becker framework, specifically, by modifying the typical family's budget constraint to allow explicitly for the cost of raising children. In particular, it is shown that, by this means, the pitfalls can be avoided even when the famil's utility function is log-linear, the example adduced by Kemp et al. In 1984 to demonstrate the existence of pitfalls. More precisely, it is shown that the family's maximum problem has a unique solution; that nontrival steady state exists; that, even if the steady state is locally unstable, the optimal trajectory tends neither to zero nor to infinity but to a 2-period limit cycle; and that survival is possible with quite general production functions. Thus, the end product is a logically consistent and reasonable model of economic development, with both population growth and capital accumulation firmly rooted in life-cycle family planning.     

On the optimal choice of capital intensity in LDCs with migration

"Sen's classic work on the choice of capital intensity of investment is generalized in the light of new theoretical developments and empirical findings concerning rural-to-urban migration in LDCs. This is done by explicitly incorporating a migration function into the basic choice model. Revised conditions for maximization of surplus are derived and compared with Sen's original condition. Some justification for the particular migration function used in the presence of risk-aversion is suggested."     

On the dynamic effects of using hired labor in the Kibbutz—theory and case studies

This study analyzes the effect of employing hired labor in the Kibbutz. The main motivations are the premises contained in the newly emerging “The Change” or “The New Kibbutz” approach. Using the traditional LMF model with heterogeneous labor, we show that, although using hired labor will improve the economic situation of the Kibbutz in the short-run, in the long-run Kibbutz membership will consist of only those types of labor to which the “Self Labor” principle applies.     

On the theory of risk aversion and the theory of risk

Relationships between the theory of risk aversion and the theory of risk have been noted by Diamond and Stiglitz [12], Kihlstrom and Mirman [24], and Leland [29]. The main result of this paper is a characterization of the Pratt and Kihlstrom-Mirman [24, 46] relation “more risk averse” between utility functions in terms of a stochastic dominance or “riskier” relation between certain probability measures derived from these utility functions. This result is used in the comparison of risk-adjusted portfolio yields to extend to the several risky asset case the intuition provided by the Arrow-Pratt [1, 46] portfolio theorem that “more risk averse” means “will take less risk.”