HAS THE OKISHIO THEOREM BEEN REFUTED?

This paper evaluates the alleged refutation of the Okishio theorem by the Temporal Single‐System Interpretation (TSSI) of Marxian value theory. The TSSI's refutation of the Okishio theorem requires not only changes in the definition of the rate of profit but also an arbitrary assumption about the time paths of labour productivity and prices. An ad hoc assumption about price changes used to disprove the Okishio theorem is meaningless because the aim of Marx's economics was to explain capitalist exploitation and accumulation without resorting to exogenously given changes on the market.     

MULTIDIMENSIONAL DYNAMIC RISK MEASURE VIA CONDITIONAL g‐EXPECTATION

This paper deals with multidimensional dynamic risk measures induced by conditional g‐expectations. A notion of multidimensional g‐expectation is proposed to provide a multidimensional version of nonlinear expectations. By a technical result on explicit expressions for the comparison theorem, uniqueness theorem, and viability on a rectangle of solutions to multidimensional backward stochastic differential equations, some necessary and sufficient conditions are given for the constancy, monotonicity, positivity, and translatability properties of multidimensional conditional g‐expectations and multidimensional dynamic risk measures; we prove that a multidimensional dynamic g‐risk measure is nonincreasingly convex if and only if the generator g satisfies a quasi‐monotone increasingly convex condition. A general dual representation is given for the multidimensional dynamic convex g‐risk measure in which the penalty term is expressed more precisely. It is shown that model uncertainty leads to the convexity of risk measures. As to applications, we show how this multidimensional approach can be applied to measure the insolvency risk of a firm with interacting subsidiaries; optimal risk sharing for ‐tolerant g‐risk measures, and risk contribution for coherent g‐risk measures are investigated. Insurance g‐risk measure and other ways to induce g‐risk measures are also studied at the end of the paper.     

GEOMETRICAL TRIPARTITION OF THE TOTAL EFFECT ON CAPITAL OF A CHANGE IN THE PROFIT RATE (THE DISCRETE CASE)

The author shows that the effect on the product-capital ratio of an increase in the profit rate from below to above the rate that marks the switching from technique I to technique 11 can be geometrically split up into i) two price effects resulting from price changes within each technique and ii) an intermediate real effect, in general well-behaved, consequent to the switching from the first to the second technique. The product-capital ratios can be correctly determined, and are as such “invariant” with respect to the numéraire chosen, only if derived from wage curves that are constructed by assuming as numéraire a basket whose composition is the same as the net product. This does not invalidate the proposition that the capital-product ratio, conceived as the value of capital per physical basket of product, and its response to a rise in the profit rate vary with the numéraire chosen.     

A MODEL OF THE FIRM'S DEMAND FOR MONEY UNDER UNCERTAINTY

Recently, economists have centered their explanation of the demand for money balances on the transactions motive. The roles of precautionary and speculative motives remain ambiguous. The purpose of this paper is to fill this void. We develop a static model of the individual firm's demand for money in which prices and the interest rate are assumed to be random variables. In this model, the entrepreneur must decide his money holdings ex ante, and both capital and labor inputs are determined ex post. The demand for money corresponding to the various motives is a consequence of analyzing the ex ante profit function. Implications for monetary policy are derived from this analysis.     

Interest rate equalization and nonequalization by trade in Leontief-Sraffa models

A half-dozen theorems and some corollaries concerning equalization of factor prices in a time-phased Leontief-Sraffa system with steady-state profit rates are carefully stated and discussed. An example is the new Mainwaring theorem, that a 1-technique world will either have the normalized price ratio vector independent of the profit rate or uniquely determined by it. Another example is that, when intermediate goods can be imported, unchanged profit rates and changed tastes can negate the nonsubstitution theorem and alter price ratios, since now the world has more than one primary (i.e. geographical) labor.     

MARX‐BIASED TECHNICAL CHANGE AND THE NEOCLASSICAL VIEW OF INCOME DISTRIBUTION

This paper empirically tests two competing views about capital–labour substitution at the aggregate level in capitalist economies: the classical model with Marx‐biased technical change versus the neoclassical model. Following Foley and Michl (1999 ), the classical viability condition of technical change is used to draw out two different hypotheses about the profit share in national income corresponding to the two competing models. A stochastic version of the viability condition is empirically tested with data from the Extended Penn World Tables 2.1 using a simple cross‐country estimation strategy. It is found that the data overwhelmingly rejects the neoclassical theory.     

概率论在商品流通中的应用

本文介绍了概率论中的中心极限定理的基本内涵,通过商品流通中的实例介绍了中心极限定理在商品流通中抽样检查、商品订购、获利问题的应用,说明了中心极限定理在商品流通中的作用。     

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.     

The effects of human capital,organizational demography,and interpersonal processes on venture partner perceptions of firm profit and growth

Venture teams, which are comprised of two or more partners, are becoming one of the more popular and important modes of new business development. Traditionally, financial capital has been the primary perspective in assessing venture viability. To expand the venture evaluation horizon, we examined the effects of human capital, organizational demography, and interpersonal processes on partner evaluations of venture performance, defined as the presence of profit and growth. The results support this approach in analyzing venture teams, and we propose that this perspective be included in future venture viability assessment, and used for intervention to enhance venture success. Suggestions are provided for future research.     

Strategic consequences of being unsympathetic: For‐profit companies benefit more than individuals from focusing on responsibility

Previous research has found that consumers ascribe mental states to for‐profit companies that enable them to elicit anger more easily than sympathy. The current study applies these findings to demonstrate how this evaluative asymmetry in consumer perceptions favor different strategies for individuals and companies managing conflicts and crises. First, it is shown that the mental states consumers ascribe to for‐profit companies enable them to elicit anger and admiration more easily than sympathy. Second, due to their ability to elicit anger more easily than sympathy, it is found that in conflicts between for‐profit companies and individuals, companies are evaluated more favorably when they focus attention on which side perpetrated the most harm, while individuals are evaluated more favorably when they focus on which side was most victimized. Third, due to their ability to elicit admiration more easily than sympathy, it is found that for‐profit companies derive greater benefits than individuals do from proactively taking responsibility to resolve crises rather than deflecting responsibility through claims of victimhood. Discussion focuses on marketing applications for companies managing conflicts and crises.     

SZPILRAJN,ARROW AND SUZUMURA: CONCISE PROOFS OF EXTENSION THEOREMS AND AN EXTENSION

This paper extends the classical extension theorem established by Edward Szpilrajn (Fundamenta Mathematicae, 16, pp. 386–389, 1930). Szpilrajn's theorem states that every quasi‐ordering has an ordering extension. Because of its usefulness in various themes of economics, it has been applied by many researchers. Important generalizations have been presented by two authors, Kenneth Arrow and Kotaro Suzumura, among others. First, we provide concise proofs of four extension theorems by Szpilrajn, Arrow and Suzumura. We then show an extension of their extension theorems.     

On the market viability under proportional transaction costs

This paper studies the market viability with proportional transaction costs. Instead of requiring the existence of strictly consistent price systems as in the literature, we show that strictly consistent local martingale systems (SCLMS) can successfully serve as the dual elements such that the market viability can be verified. We introduce two weaker notions of no arbitrage conditions on market models named no unbounded profit with bounded risk (NUPBR) and no local arbitrage with bounded portfolios (NLABPs). In particular, we show that the NUPBR and NLABP conditions in the robust sense are equivalent to the existence of SCLMS for general market models. We also discuss the implications for the utility maximization problem.     

Impact of youth injuries on the uninsured farm family's economic viability

The objective of this study is to estimate the impact of youth injuries on the uninsured farm family's economic viability. Using farm prototypes, we compared farm profits with costs of farm youth injuries. We built profit models for two types of farms, dairy and soybean farms. Then we estimated the cost impact of farm youth injuries of different levels of severity on a farm family with no health insurance. A severe child injury that requires at least 10 days of hospitalisation would cost almost equal to the operating profit of the average dairy farm with no health insurance and would turn the operating profit of the average soybean farm into a severe loss of $99,499. Prevention of child agricultural injuries would significantly improve the financial situation for farm families that lack health insurance.     

THE HEX GAME THEOREM AND THE ARROW IMPOSSIBILITY THEOREM: THE CASE OF WEAK ORDERS

The Arrow impossibility theorem when individual preferences are weak orders is equivalent to the HEX game theorem. Because Gale showed that the Brouwer fixed point theorem is equivalent to the HEX game theorem, this paper indirectly shows the equivalence of the Brouwer fixed point theorem and the Arrow impossibility theorem. Chichilnisky showed the equivalence of her impossibility theorem and the Brouwer fixed point theorem, and Baryshnikov showed that the impossibility theorem by Chichilnisky and the Arrow impossibility theorem are very similar. Thus, Chichilnisky and Baryshnikov are precedents for the result—linking the Arrow impossibility theorem to a fixed point theorem.     

Impact of youth injuries on the uninsured farm family's economic viability

The objective of this study is to estimate the impact of youth injuries on the uninsured farm family's economic viability. Using farm prototypes, we compared farm profits with costs of farm youth injuries. We built profit models for two types of farms, dairy and soybean farms. Then we estimated the cost impact of farm youth injuries of different levels of severity on a farm family with no health insurance. A severe child injury that requires at least 10 days of hospitalisation would cost almost equal to the operating profit of the average dairy farm with no health insurance and would turn the operating profit of the average soybean farm into a severe loss of $99,499. Prevention of child agricultural injuries would significantly improve the financial situation for farm families that lack health insurance.     

Introduction and Call for Papers

ABSTRACT

This paper reports the results from a study developed on the idea that differences in consumer satisfaction would exist among individuals based on the profit status of their health insurance plan. Analysis of 581 responses received in a national survey of randomly selected households confirmed the idea that satisfaction did vary with profit status. This was particularly true of individuals in not-for-profit HMO plans. They reported greater satisfaction with aspects of health care than individuals in for-profit HMO plans. This study corroborates the findings of other related studies and signals to consumers the need to consider health plan profit status in their selection of an HMO plan.     

Taxation and Bank Efficiency: Cross-Country Evidence

This paper investigates the relationship between the effective tax rate on bank income and bank profit efficiency. Our sample consists of 3,472 observations from 533 publicly quoted commercial banks operating in 46 countries between 2001 and 2009. We estimate a global frontier while controlling for various country-specific characteristics such as regulations, macroeconomic conditions, market concentration, and financial and overall development. The results indicate that a higher tax rate results in higher pre-tax profit efficiency. However, the relationship is non-linear, indicating that there is a point after which a further increase in taxation reduces bank profit efficiency. We also find that concentration in the banking sector enhances the effect of taxation on profit efficiency. Overall, the results provide some support to the tax-shifting hypothesis. However, there is no robust evidence that the impact of taxation on profit efficiency is influenced by the extent of private monitoring.     

Marxists and Accountants: bien étonnés de se trouver ensemble

In a recent issue of this journal, Basu (2013, Metroeconomica, 64 (2), pp. 293–318) presented some conditions under which replacement cost‐based profit rates and historical cost‐based profit rates evolve similarly, making, under these conditions, the choice between them irrelevant when studying long‐term profitability trends. The present note adds some realism to this analysis by allowing depreciation of fixed assets, and shows that the choice between the two profit rate operationalizations becomes relevant. Additionally, the impact of growth on the relation between the two profit rate evolutions is assessed.