Imposing local curvature in the QUAIDS

In this paper, we build on Ryan and Wales (1998), Moschini (1999), and Serletis and Shahmoradi (2007) and impose curvature conditions locally on the quadratic Almost Ideal Demand System (AIDS) model of Banks et al. (1997), an extension of the simple AIDS model of Deaton and Muellbauer (1980) that can generate quadratic Engel curves [that is, rank-three demand systems, in the terminology of Lewbel (1991)]. In doing so, we exploit the Slutsky matrix of second order derivatives of the indirect utility function.     

Alcohol demand among young people in Spain: an addictive QUAIDS

This paper analyzes the demand for alcoholic beverages among young people in Spain. To that end, we develop a theoretical model which combines elements from the Theory of Two-Stage Budgeting and the Theory of Addiction, with this being empirically translated into a Quadratic Almost Ideal Demand System (QUAIDS) in which the particular characteristics of young people are introduced by Price Scaling (PS) techniques. We then estimate this specification by using data drawn from the Spanish National Survey on Drug Use in the School Population (2000) and the Spanish National Household Survey (2000). Given that wine, beer and spirits all have normal demands, our results suggest that a tax increase imposed with the intention of reducing alcohol consumption would appear to be efficient. This paper was partially written while Ana Isabel Gil was a Visiting Researcher at the London School of Economics and Political Science, to which she would like to express her gratitude for the hospitality and facilities provided. An earlier version of this paper has been presented at the Spanish Economic Analysis Meeting-2003 (Sevilla, Spain) with all the comments made by the participants being appreciated. Finally, the authors would like to express their thanks for the financial support provided by the Spanish Ministry of Education-CICYT and the European Commission (Project 2FD97-2057). The usual disclaimer applies.     

A generalization of modern production theory

This paper analyses the relationship between inflation and equity returns in Australia over the period January 1974 to March 1996. Analysis is based on monthly and quarterly data, using value weighted equity indices at both the aggregate market and industry level. Three price indices, the consumer price index (CPI) (quarterly) and the manufactured materials used index (MMU) and the manufacturing articles produced index (MAP) (both monthly and quarterly) are used to measure inflation. Results provide little evidence of the statistically significant negative relationship observed in the US for the full study period. Analysis is also conducted on three subperiods, ‘monetary targeting’ (July 1976–January 1985), ‘checklist approach’ (February 1985–December 1989) and anti-inflation (January 1990–March 1996). At the market level the anti-inflation subperiod does provide some evidence of a negative relationship between inflation and equity returns though statistical significance is not apparent with quarterly time series. The impact of expected inflation on industry returns varies considerably. Consistent with the overall market analysis, the incidence of negative expected inflation betas increases in the latter anti-inflation subperiod. Finally, changes in Government inflation policy appear to have greatest impact on industrial company expected inflation betas.     

Loss of efficiency in regression analysis due to irrelevant variables: A generalization

This note extends the specification error analysis of irrelevant variables in a regression model. It is shown that the loss of efficiency in estimating relevant regression coefficient is directly related to the magnitudes of the canonical correlations between the sets of relevant and irrelevant variables.     

Gross substitutes and complements: A simple generalization

We extend the gross substitutes and complements framework (Sun and Yang, 2006). Competitive equilibrium with indivisible goods exists under significantly weaker, intuitive and interpretable conditions. A generalized dynamic double-track procedure (Sun and Yang, 2008, 2009) finds the competitive equilibrium outcome.     

A generalization of working's model

Working's (1943) model states that budget shares are linear functions of the logarithm of income; it implies constant differences between corresponding marginal and budget shares. A one-parameter generalization is proposed which allows each marginal share to be a linear function of the corresponding budget share. This model can be further extended (with one extra parameter) so that all goods are either specific substitutes or specific complements.     

Expected utility and the siegel paradox: A generalization

It was recently shown by Sinn that, under certain conditions, because of the Siegel paradox, even risk-averse agents can find speculation on forward currency markets attractive. His assumptions are that the spot and forward rates are identically distributed and statistically independent and that the agents' coefficients of relative risk aversion are constant and inferior to unity. We show that both assumptions of statistical independence and constant relative risk aversion can be dramatically relaxed.Thanks are due to H.-W. Sinn, W. T. Epps, and an anonymous referee for useful comments. Thon would like to thank the Department of Economics and The Center for Law and Economics of the University of Miami for research support, and the Prof. W. Keilhau's Memorial Fund for financial support.     

A generalization of Condorcet’s Jury Theorem to weighted voting games with many small voters

We extend Condorcet’s Jury Theorem (Essai sur l’application de l’analyse à la probabilité des décisions rendues à la pluralité des voix. De l’imprimerie royale, 1785) to weighted voting games with voters of two kinds: a fixed (possibly empty) set of ‘major’ voters with fixed weights, and an ever-increasing number of ‘minor’ voters, whose total weight is also fixed, but where each individual’s weight becomes negligible. As our main result, we obtain the limiting probability that the jury will arrive at the correct decision as a function of the competence of the few major players. As in Condorcet’s result the quota q = 1/2 is found to play a prominent role. I wish to thank Maurice Koster, Moshé Machover, Guillermo Owen and two anonymous referees for helpful comments.     

Reallocation and restructuring: A generalization of the Balassa–Samuelson effect

Despite its strong theoretical position when it comes to explaining inflation in transition economies, the empirical findings of the Balassa–Samuelson (B–S) effect assign only a minor role to structural inflation – to the disappointment of analysts and policymakers. This article points to 3 theory-based contributing factors to these ‘weak’ findings and offers an alternative methodological approach. First, a short-term focus makes B–S prone to underestimating the magnitude of the productivity growth differential. Second, the conventional demand side CPI based definition of sectoral value added reduces the extent to which the productivity growth differential is passed through to inflation. Third, by ignoring the dependence between the 2 main B–S components, a further downward bias to the productivity growth pass through comes about. The key to our proposed alternative methodology centres on an endogenous relation between the productivity growth differential and sector sizes. Together with the long-run supply-side approach this allows us to capture inflation drivers that conventional B–S fails to incorporate. In our extension to the conventional B–S model a reduced productivity growth differential can be compensated by an increased productivity growth pass-through, or vice versa – with the effect of augmenting inflation pressure. Hence, the link between productivity growth differentials and the dynamics of structural inflation is shown to be more complex than previously assumed.     

Endogenous ranking and equilibrium Lorenz curve across (ex-ante) identical countries: A generalization

This paper proposes a symmetry-breaking model of trade with a finite number of identical countries and a continuum of tradeable consumption goods, which differ in their dependence on nontradeable intermediate inputs, “producer services”. Productivity of each country is endogenous due to country-specific external economies of scale in its service sector. It is shown that, in any stable equilibrium, the countries sort themselves into specializing in different sets of tradeable goods and that a strict ranking of countries in per capita income, TFP, the service sector share, and the capital–labor ratio emerge endogenously. Furthermore, the distribution of country shares, the Lorenz curve, is unique and analytically solvable in the limit, as the number of countries grows unbounded. Using this limit as an approximation allows us to study what determines the shape of distribution, perform various comparative statics and to evaluate the welfare effects of trade. In doing so, this paper extends the analysis of Matsuyama (Econometrica, 81:5 (September 2013), 2009–2031) for more general and flexible forms of scale economies. It turns out that the technique introduced in Matsuyama (Econometrica, 81:5 (September 2013), 2009–2031) is useful for the equilibrium characterization in this general case as well. Although some results of comparative statics and on welfare inevitably need to be modified, they change in ways that illuminate the underlying mechanism of symmetry-breaking.     

On a generalization of a class of production functions

In Appl. Econ. Lett. 18 (2011), 1777–1784, as a natural generalization of some famous production models with two inputs, C.A. Ioan and G. Ioan introduced a new class of production functions with constant return to scale, called sum production function, and proved three theorems of characterization for such production models. In this article, we give new and more simple proofs of these theorems, extending also the results to the case of increased/decreased return to scale. The generalization to the case of an arbitrary number of inputs is also discussed.     

Efficiency and nonlinear pricing in nonconvex environments with externalities: A generalization of the Lindahl equilibrium concept

It is a well-known fact that if damaging externalities occur, nonconvexities will necessarily arise in the underlying economic environment rendering questionable the relevance of standard market approaches to the allocation problem. In response to this state of affairs, we define and study a generalization of the Lindahl Equilibrium concept that allows for nonlinear pricing systems in which the marginal outlay may depend on the quantity purchased. This “Generalized Lindahl Equilibrium” attains local pareto efficiency for its associated allocations and is able to support (in the usual sense) any pareto efficient allocation that satisfies a regularity condition.     

数字证书推广应用中的问题及对策研究

通过对我国数字证书的发展现状及有关问题成因进行分析，具有针对性地提出了我国推广应用数字证书的相应对策。     

数字证书推广应用中的问题及对策研究

通过对我国数字证书的发展现状及有关问题成因进行分析,具有针对性地提出了我国推广应用数字证书的相应对策.