A note on linear utility

Summary We show that any complete, lower-semicontinuous, and translation-invariant preorder defined on a topological vector space admits a linear and continuous utility representation.Thanks are given to an anonymous referee for his/her valuable suggestions and comments.     

The use of linear difference equations in manpower planning: A criticism

Systems of linear difference equations have been used extensively to project educational and manpower needs. The dynamic properties of such models appear never to have been considered. A number of these models were examined and, without exception, were highly unstable. Sensitivity analyses indicated that the source of model instability is not in parameter estimation error. The consistently unsatisfactory results suggest that linear difference equations do not adequately model manpower needs. The more general point made is that validation of any dynamic model should always include an investigation of the dynamic characteristics.     

A linear demand system within a seemingly unrelated time series equations framework

A seemingly unrelated time series equations framework for the linear almost ideal (AID) demand system is considered. The framework is applied to a consumer demand system covering nine non-durable commodities. Within a specification where the static linear AID system is augmented by latent variables representing stochastic trends and seasonality, demand homogeneity is tested; both in each equation and in the system as a whole. Income and own-price elasticities are calculated under homogeneity restrictions. Although the homogeneous model is formally rejected by statistical tests, it performs well with respect to interpretability, parameter stability and forecasting.     

A note on the triple difference in economic models

This article shows when a triple difference strategy using an imperfect control category improves on the double difference strategy for estimating an average treatment effect. For example, a product is treated in one place and not another leading to a double difference strategy. When does comparison with an untreated product in triple difference strategy improve accuracy?     

A note on the specification of the fisher equation under inflation uncertainty

The effect of uncertainty on the relationship between the nominal interest rate and the expected rate of inflation, the Fisher equation, is examined both theoretically and empirically. It is found that the coefficient of the expected rate of inflation is significantly below unity. Variable rates of inflation tend to effect the nominal rate of interest positively, but real yields are apparently effected only by expected inflation, but not its variance.     

A note on variable addition tests for linear and log-linear models

Results on variable addition tests for linear and log-linear models are unified using an instrumental variables framework, which allows the identification of the specific alternatives for which well-known tests are optimal.     

A large-sample chow test for the linear simultaneous equation

A simple large-sample Chow test for stability of coefficients in a linear simultaneous equation is proposed. It is shown that the appropriate test statistic may be formed conveniently from particular sums of squared residuals.     

A note on finite sample analysis of misspecification in simultaneous equation models

This article gives an alternative derivation [to that of Hale et al. (1980)] of the effects of misspecification on both OLS and 2SLS estimators.     

A note on modelling downturns: A non-linear model vs. simple linear autoregressive schemes

This note presents empirical/simulations results which compare a simple Kaldor-type non-linear model and comparable linear autoregressive schemes as models of sharp movements often observed in macroeconomic time series that exhibit persistent fluctuations.     

A note on dependence between a venture and a current prospect

Some sufficient conditions that a random variable be positively correlated with every strictly decreasing function of a second random variable are developed and applied to the problem of choosing the optimal amount of an uncertain venture. Two of the conditions generalize conditions previously employed by Samuelson [5] and Scheffman [6].     

A note on the factor-price frontier

Conclusions For an economist the possibility of an upward sloping factorprice frontier is extremely surprising. It has been shown that although such a factor-price frontier is theoretically possible, it is not very likely that it can occur under given economic and technical conditions since it would imply that capitalists are a class of borrowers (from nature) whereas we can be fairly sure that they are a class of lenders.I am indebted to Prof. E. Streissler for helpful comments.     

A note on the duty of disclosure

This letter studies the possibility of voluntary breach of contract in the presence of new information. If the information had to be disclosed prior to the agreement, it is shown by example that all individuals may be worse off than if the act of disclosure is itself voluntary.     

A note on the pricing of IPOs

This paper studies the pricing of IPOs in a tractable model in which an investment bank faces some investors with superior information. We show how this can lead to underpricing and we make a number of empirical predictions.     

A note on the diffusion of innovation

The paper deals with the process of substitution between technologies in a framework of increasing returns to scale. The approach stresses the interaction between capacity expansion and market demand as explanations of the diffusion of technologies into their niches. The demand and supply sides of the diffusion process are therefore brought together to determine simultaneously patterns of output and prices.It analyzes the dynamics of the substitution path, where a logistic diffusion process for the new technology is assumed, and determines the substitution curve between the old technology and the new one.     

A note on a posterior approximation in a heteroscedastic model

This paper develops a method of obtaining approximate marginal posteriors for all parameters of interest for a heteroscedastic model. This method improves upon Box and Hill's (1974) method in suggesting a pure Bayesian estimator for a regression coefficient.