Long‐term Effects of the Efficiency Wage Hypothesis in Goodwin‐type Economies

The existence of an efficiency wage mechanism in Goodwin‐type models may lead to the unexpected appearance of an economically meaningful equilibrium with zero labour share, which is globally stable for some parameter constellation and allows the system to attain its ‘maximal growth'. A subsequent ‘normative’ comparison between the possible long‐term regimes of the economy shows that (1) the zero labour share equilibrium can be the ‘preferred’ equilibrium in terms of welfare; (2) in all the long‐term regimes the welfare is higher than in the original Goodwin model; (3) a point of maximal welfare exists. Moreover, the effects of rational behaviour of firms are compared with the ‘traditional’ situation in which rationality is not explicitly assumed. A striking result appears: myopic rationality can have deleterious effects on the profit of firms and on the overall welfare of the economy.     

Equilibrium Unemployment and Endogenous Public Sector Employment

This paper develops a model of the equilibrium rate of unemployment with an endogenous share of public sector employment. We show how various macroeconomic shocks drive up the equilibrium rate of unemployment, accompanied by predictable variations in the public sector share of employment. In particular, under the empirically plausible assumptions that the public sector is relatively labor-intensive and the elasticity of substitution between capital and labor is less than unity, public sector employment is shown to be countercyclical. When the equilibrium unemployment rate rises over a prolonged time period, the public sector share of employment also rises.     

ARROW–DEBREU EQUILIBRIA FOR RANK‐DEPENDENT UTILITIES

We provide conditions on a one‐period‐two‐date pure exchange economy with rank‐dependent utility agents under which Arrow–Debreu equilibria exist. When such an equilibrium exists, we show that the state‐price density is a weighted marginal rate of intertemporal substitution of a representative agent, where the weight depends on the differential of the probability weighting function. Based on the result, we find that asset prices depend upon agents' subjective beliefs regarding overall consumption growth, and we offer a direction for possible resolution of the equity premium puzzle.     

Market Participation and Share Prices

Share prices are analyzed in an overlapping generations model in which the generational size is random. This models stochastic fluctuations of market participants and can explain noninformational volatility of share prices. There exists a (stochastic) stationary equilibrium, which may be nonunique. In equilibrium, (a) the share price increases and (b) expected utility decreases with the generational size. A decline of this size below a critical level induces a crash: the stock price falls substantially, shares are undervalued, and investors' demand is restricted by illiquidity. Further, the model predicts the empirically observed positive correlation between volume of trade and absolute price changes.     

MEAN–VARIANCE PORTFOLIO OPTIMIZATION WITH STATE‐DEPENDENT RISK AVERSION

The objective of this paper is to study the mean–variance portfolio optimization in continuous time. Since this problem is time inconsistent we attack it by placing the problem within a game theoretic framework and look for subgame perfect Nash equilibrium strategies. This particular problem has already been studied in Basak and Chabakauri where the authors assumed a constant risk aversion parameter. This assumption leads to an equilibrium control where the dollar amount invested in the risky asset is independent of current wealth, and we argue that this result is unrealistic from an economic point of view. In order to have a more realistic model we instead study the case when the risk aversion depends dynamically on current wealth. This is a substantially more complicated problem than the one with constant risk aversion but, using the general theory of time‐inconsistent control developed in Björk and Murgoci, we provide a fairly detailed analysis on the general case. In particular, when the risk aversion is inversely proportional to wealth, we provide an analytical solution where the equilibrium dollar amount invested in the risky asset is proportional to current wealth. The equilibrium for this model thus appears more reasonable than the one for the model with constant risk aversion.     

A note on ‘optimal strategic trade policy under asymmetric information’

In [Journal of International Economics 36 (1994) 333], Larry Qiu developed a model of an optimal export promotion policy under asymmetric information. In the Bertrand competition, he shows that the expected welfare is larger under the uniform policy than under the separation-inducing policy. Actually, in this note, we show that no such separating equilibrium exists. Although his main conclusion in the Bertrand competition analysis is unaffected, his reasoning in the paper is misleading.     

Arrow–Debreu equilibria for rank‐dependent utilities with heterogeneous probability weighting

We study Arrow–Debreu equilibria for a one‐period‐two‐date pure exchange economy with rank‐dependent utility agents having heterogeneous probability weighting and outcome utility functions. In particular, we allow the economy to have a mix of expected utility agents and rank‐dependent utility ones, with nonconvex probability weighting functions. The standard approach for convex economy equilibria fails due to the incompatibility with second‐order stochastic dominance. The representative agent approach devised in Xia and Zhou (2016) does not work either due to the heterogeneity of the weighting functions. We overcome these difficulties by considering the comonotone allocations, on which the rank‐dependent utilities become concave. Accordingly, we introduce the notion of comonotone Pareto optima, and derive their characterizing conditions. With the aid of the auxiliary problem of price equilibria with transfers, we provide a sufficient condition in terms of the model primitives under which an Arrow–Debreu equilibrium exists, along with the explicit expression of the state‐price density in equilibrium. This new, general sufficient condition distinguishes the paper from previous related studies with homogeneous and/or convex probability weightings.     

土地成本、规模报酬与产业空间流动

在坚持新经济地理学基本观点的基础上,提出一些新的思想:生产要素成本与贸易自由度的提高会削弱本地市场效应的作用;消费品的替代弹性与工业品支出份额存在相互依赖的关系;虽然人们预期的变化对经济活动存在影响,但不足以逆转区域的内生均衡。随着贸易自由度的提高,企业有能力支付更高的生产要素成本,从而土地成本与产业集聚成正向变动的关系。需求环境与供给环境的改善对于促进中国区域经济统筹发展同等重要。     

房价与地价关系研究:模型及中国数据检验

本文通过构建一个线形城市的住房市场和土地市场模型,分别就Cournot空间竞争和规制情形,探讨了房价和地价关系.本文的基本结论是:规制情形下的房价和地价高于无规制情形下的房价和地价;在供大于求时,房价与地价成线性负相关关系;在供小于求时,房价与地价成线性正相关关系;房价与地价Granger因果关系检验表明,短期内房价和地价相互影响,长期内地价是房价的Granger因.因此,要将房价降下来,短期内,一方面应增加土地供给,另一方面应控制房价和地价过快上涨;在长期,主要应抑制地价的过快上涨.     

THE PROFIT–INVESTMENT–UNEMPLOYMENT NEXUS AND CAPACITY UTILIZATION IN A STOCK‐FLOW CONSISTENT MODEL

This paper studies under which conditions the share of profit in value‐added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock‐flow consistent model. The efficiency of demand‐side versus supply‐side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply.     

Regimes of Interest Rates,Income Shares,Savings and Investment: A Kaleckian Model and Empirical Estimations for some Advanced OECD Economies

The first part of the paper deals with the effects of an exogenous variation in the monetary interest rate on the real equilibrium position of the economic system in a Kaleckian effective demand model. Different regimes of accumulation are derived and it is shown that a negative relation between the interest rate and the equilibrium rates of capacity utilization, accumulation and profit usually expected in post‐Keynesian theory only exists under special conditions. In the second part the model is applied to the data of some major OECD countries, the relevant coefficients are estimated and the relevance for an explanation of the course of GDP and capital stock growth since the early 1960s is discussed.     

Cost share‐induced technological change and Kaldor’s stylized facts

This paper presents a theory of induced technological change in which firms pursue a random, local, and bounded search for productivity‐enhancing innovations. Firms implement profitable innovations at fixed prices, which then spread through the economy. After diffusion, all firms adjust prices and wages. The model is consistent with a variety of price‐setting behaviors, which determine equilibrium positions characterized by constant cost shares and productivity growth rates. A fixed mark‐up can yield Marx‐biased technological change. Target‐return pricing yields Harrod‐neutral technological change with a fixed wage share as a stable equilibrium, consistent with Kaldor's stylized facts, while allowing for deviations from equilibrium, as observed in the longer historical record.     

STRATEGIC INVESTMENT IN A NEW MIXED MARKET WITH LABOR‐MANAGED AND PROFIT‐MAXIMIZING FIRMS

This paper examines a continuous‐time mixed model of the strategic investment decisions of a labor‐managed income‐per‐worker‐maximizing firm and a profit‐maximizing firm in a new mixed market and constructs a set of perfect equilibria of the continuous‐time mixed model. The paper shows that there exists a particular equilibrium in which neither firm invests to its steady‐state reaction curve. The paper also finds that the existence of the particular equilibrium depends on each firm's being able to respond quickly to its rival's investment and that the particular equilibrium is profitable for each firm.     

Capital controls and the location of industry

This paper studies capital controls on the outflow of capital in a two-region new economic geography model. Capital controls are set in a non-cooperative or cooperative manner by social planners. Capital controls are relatively higher in the North in the non-cooperative equilibrium. This leads to relatively more firms located in the region where more consumers reside under the non-cooperative equilibrium. The locational bias towards the North in the non-cooperative equilibrium becomes larger as trade barriers are reduced. That is, firms locate to the North at a relatively higher rate in the non-cooperative equilibrium as trade is liberalised. Contrary to previous findings, it follows that global welfare is relatively higher in the non-cooperative equilibrium, although the social planner sets capital controls by maximising joint regional welfare in the cooperative equilibrium.     

“身份”特征差异对收入差距影响的经济学分析

根据雇佣要素的生产者均衡模型可得:准入管制下的非竞争性许可权收入份额远大于普通居民竞争性供给要素收入份额,如出租车行业约为6:4,而银行业管制租份额更高。主要机理是管制影响需求价格弹性,且更严格的管制降低了要素供给弹性,导致消费者支付高价、要素供给者不得不接受低价。     

Weak equilibria for time-inconsistent control: With applications to investment-withdrawal decisions

This paper considers time-inconsistent problems when control and stopping strategies are required to be made simultaneously (called stopping control problems by us). We first formulate the time-inconsistent stopping control problems under general multidimensional controlled diffusion model and propose a formal definition of their equilibria. We show that an admissible pair $(\widehat{u},C)$ of control-stopping policy is equilibrium if and only if the auxiliary function associated with it solves the extended HJB system, providing a methodology to verify or exclude equilibrium solutions. We provide several examples to illustrate applications to mathematical finance and control theory. For a problem whose reward function endogenously depends on the current wealth, the equilibrium is explicitly obtained. For another model with a nonexponential discount, we prove that any constant proportion strategy can not be equilibrium. We further show that general nonconstant equilibrium exists and is described by singular boundary value problems. This example shows that considering our combined problems is essentially different from investigating them separately. In the end, we also provide a two-dimensional example with a hyperbolic discount.     

Child–mother nutrition and health status in rural Kenya: the role of intra‐household resource allocation and education

There exists gender bias in resource ownership in many parts of Kenya with women being more disadvantaged. Resource ownership and control within the household has differential impacts on the health and overall well‐being of male and female members. This paper examines intra‐household resource ownership and how it affects nutrition and health status of household members. Data from a household survey containing detailed gender‐disaggregated information on resource ownership as well as food and anthropometry were collected from a rural Kenyan district and used in the analysis. Results showed that male members of the household had more access to education, income and land than the females. Mothers’ education, household income, frequency of illness and nutrient intake were the most important factors that contributed to the nutritional status of children. The education and household’s economic status were important determinants of child morbidity. Malnutrition and poor health of children and women is linked to the existing poverty in the study region, therefore emphasis needs to be put on eradication of discrimination against women in accessing education and accessing land, which will contribute to an increase in household incomes. Government policies need to focus on promotion of nutrition education through adult education programmes and incorporating it in the school curricula. Improvement of health‐care facilities in rural areas is also paramount to improving health and nutrition in these areas.     

Technical Change and the Equilibrium Profit Rate in a Market with Sequential Bargaining

The Marxian theory of the tendentially falling rate of profit is shown to be consistent with a competitive equilibrium scenario for labor markets in which wages are determined by sequential bargaining within a stationary matching process. The central result establishes that if trade is possible, there exists a set of individually rational capital-using, labor-saving technical innovations which lower the equilibrium rate of profit if adopted universally. The model yields as an important special case wage conditions under which the universal adoption of any such innovation reduces the equilibrium rate of profit.     

宁波国际贸易与海港城市发展互动关系研究

以宁波市1985年～2010年的相关数据为样本,利用VAR模型分析框架研究宁波市国际贸易与城市发展的互动关系,结果表明:宁波市国际贸易与城市发展之间存在着长期均衡的互动关系,其中城市发展对国际贸易具有相对微弱的促进作用,而国际贸易对城市发展有着相对显著的促进作用,宁波市政府应更加致力于提高对外贸易水平推进该市现代化国际港口建设。     

Resource-based FDI and expropriation in developing economies

Globally, foreign direct investment (FDI) assets are expropriated more in resource extraction industries compared to other sectors. Despite the higher apparent risk of expropriation in resources, countries more likely to expropriate also have a larger share of FDI in the resource sector. An incomplete markets model of FDI is developed to account for this puzzle. The type of government regime is stochastic, with low penalty regimes facing a relatively low, exogenous cost of expropriating FDI, and country risk is measured by the variation in these costs across different regimes. The key innovation of the model is that the government, before the regime type is known, is able to charge different prices to domestic and foreign investors for mineral rights. Granting cheap access increases FDI and reduces the country's share of resource rents, increasing the temptation to expropriate in a relatively low penalty regime. In very high-risk countries, subsidizing resource FDI increases the total value of output by raising investment, and the net gains from expropriating in a low penalty regime outweigh the rents foregone under a high penalty one. However, a stochastic resource output price results in relatively low-risk countries restricting FDI inflows to the resource sector instead — “windfall profits” in this sector raise incentives to expropriate when prices are high, yet minimization of the ex ante risk of expropriation is preferred owing to the relatively high penalty for expropriating. These results imply a higher average share of resource-based FDI in countries most likely to expropriate, while resources account for a high share of expropriated assets compared to the sector's global share of FDI. We show that the model is able to reconcile observed patterns of foreign investment and expropriation for a sample of 38 developing and emerging economies.