Periodic and chaotic programs of optimal intertemporal allocation in an aggregative model with wealth effects

Summary We examine a discrete-time aggregative model of discounted dynamic optimization where the felicity function depends on both consumption and capital stock. The need for studying such models has been stressed in the theory of optimal growth and also in the economics of natural resources. We identify conditions under which the optimal program is monotone. In our framework, the optimal program can exhibit cyclic behavior for all discount factors close to one. We also present an example to show that our model can exhibit optimal behavior which is chaotic in both topological and ergodic senses.We would like to thank V. Bala, J. Benhabib, P. Dasgupta, R. Day, L. W. McKenzie, K. Nishimura, S. Roy, and a referee of this journal for comments on earlier versions of this paper. Research support from the National Science Foundation is gratefully acknowledged.     

Corruption in a neoclassical growth model with a non-convex production function: comment

In Pereira and da Cruz Vieira (Int Rev Econ 57:335?C346, 2010), it is claimed that previous studies on corruption using the neoclassical growth model in the Ramsey tradition typically exploited a convex production function with productive government spending. Moreover, a non-convex intensive form technology representation is proposed as derived from the (presumptive) strictly convex function in levels. We show that none of these claims are true, for the general function is neither convex nor concave and fails to be linearly homogeneous. As a consequence, all the findings derived in Pereira and da Cruz Vieira (2010) are not peculiar to non-convex production functions.     

The Intertemporal Substitution Hypothesis: A Quantitative Reassessment

This paper reexamines the empirical validity of the intertemporal substitution hypothesis by reinterpreting existing empirical labor supply studies. A dynamic labor supply model is proposed and is used as a unifying framework for various studies. Evidence discernible from those reinterpretations supports the view that a typical worker increases working hours in response to a wage increase perceived to be transitory, but decreases working hours in response to a permanent wage increase. Specifically, the evidence strongly suggests that the short run labor supply elasticity exceeds 1. [824]     

The Ethics of Intertemporal Distribution in a Warming Planet

This paper evaluates, from the ethical viewpoint, current work by economists on intergenerational resource allocation in the presence of global warming. We begin by attempting to elucidate the debate that has recently occurred on the appropriate choice of the discount rate. We offer three justifications for maximizing the discounted sum of generational utilities, and find only one of these to be a satisfactory justification of that practice: the possibility that the human species may become extinct. This implies that a very small discount rate (large discount factor) should be used. We argue that the justification for discounting, inherent in the approaches taken by many economists, is that of ‘the present generation of hegemon,’ which is unacceptable. The role of the Ramsey equation in deducing the discount rate in these theories is explained. As an alternative to discounted utilitarianism, we propose a principle of sustainability; we describe optimal paths that have been calculated for the sustainabilitiarian (Rawlsian) objective function, and paths that will sustain growth in welfare, at a positive rate. We report results concerning optimal paths when the uncertainty of existence of future generations is taken into account. In sharp contrast to the utilitarian model, it turns out that under some conditions, the ‘sustainabilitarian’ can ignore the uncertainty regarding the date at which humans become extinct. There is a striking difference between the solutions of the discounted utilitarian program and the sustainabilitarian program under uncertainty.     

Towards a framework for dynamic technology strategy

This paper attempts to set up a framework for formulating a dynamic technology strategy. Competitive enviroments are increasingly dynamic, and this makes traditional methodologies and approaches to the strategy obsolete or inadequate. Empirical research has been conducted on the technology strategy process of three large companies operating in highly dynamic and technology-intensive environments. On the basis of the results of this, the authors attempte to put forward a framework which should help firms to conceive their technology strategy.     

Towards a framework for dynamic technology strategy

This paper attempts to set up a framework for formulating a dynamic technology strategy. Competitive enviroments are increasingly dynamic, and this makes traditional methodologies and approaches to the strategy obsolete or inadequate. Empirical research has been conducted on the technology strategy process of three large companies operating in highly dynamic and technology-intensive environments. On the basis of the results of this, the authors attempte to put forward a framework which should help firms to conceive their technology strategy.     

Corruption in a neoclassical growth model with a non-convex production function

In this article, we analyze the bureaucrats’ corruption problem in a simple neoclassical growth model with a non-convex production function. In this model, we consider direct relations between product (income) taxation and corruption, and between corruption and public goods provision. As the main result, we show that the optimal consumption growth path in this economy is higher in a non-corrupt environment than in a corrupt environment and the higher the proportion of corrupt bureaucrats, the higher the cost of corruption to society.     

Markets with infinitely many commodities and a continuum of agents with non-convex preferences

Summary Contrary to the finite dimensional set-up, the hypothesis of an atomless measure space of traders does not entail convexity of aggregate demand sets if there are infinitely many commodities. In this paper an assumption is introduced which sharpens the non-atomicity hypothesis by requiring that there are many agents of every type. When this condition holds, aggregate demand in an infinite dimensional setting becomes convex even if individual preferences are non-convex. This result is applied to prove the existence of competitive equilibria in such a context.Thanks to E. Dierker, K. Milford, M. Nermuth, C. Puppe, and N. Yannelis for comments and suggestions.     

International Factor Price Equalization in a limited-substitutability technology framework

This paper generalizes the Heckscher–Ohlin trade theory summarized in Samuelson's [Samuelson, P.A., 1949, International Factor Price Equalization Once Again, The Economic Journal 59, 181–197.] calculus treatment to the domain of non-differentiable technologies characterized by discrete alternative Leontief–Sraffa techniques. Demonstrated here is how the close qualitative parallelisms between limited-substitutability technologies and neoclassical marginal-productivity models permit the validity of the theorems of international factor price equalization and their well-known extensions even when smooth marginal productivities cannot obtain.     

The complexities of corporate science and technology development: the triple uncertainty analytical framework

In this paper, we introduce an analytical framework – called the Triple Uncertainty (TU) – that casts strong doubt on both the existence of a linear path leading to organisational innovation and the alleged accuracy of most R&D performance metrics. This framework, grounded on both the analysis of field-data and actor-network theory underpinnings, emphasises the importance of a series of uncertainties that pervade the management of techno-scientific projects. According to the TU framework, the management of techno-scientific projects hinges on the choice of mode of organisational coordination. To illustrate this thesis, we analyse in this paper the managerial complexities of a techno-scientific R&D project at Tenaris (a world-leading manufacturer of steel-tubes) whose intended outcome is a computer simulation of a critical industrial process.     

Household Intertemporal Behaviour: A Collective Characterization and a Test of Commitment

In this paper, a formal test of intra-household commitment is derived and performed. To that end, two models of household intertemporal behaviour are developed. In both models, household members are characterized by individual preferences. In the first formulation, household decisions are always on the ex ante Pareto frontier. In the second model, the assumption of intra-household commitment required by ex ante efficiency is relaxed. It is shown that the full-efficiency household Euler equations are nested in the no-commitment Euler equations. Using this result, the hypothesis that household members can commit to future allocations of resources is tested using the Consumer Expenditure Survey. I strongly reject this hypothesis. It is also shown that the standard unitary framework is a special case of the full-efficiency model. However, if household members are not able to commit, household intertemporal behaviour cannot be characterized using the standard life-cycle model. These findings have two main implications. First, policy makers can change household behaviour by modifying the decision power of individual household members. Second, to evaluate programmes designed to improve the welfare of household members, it would be beneficial to replace the standard unitary model with a characterization of household behaviour that allows for lack of commitment.     

Commercial use of GM crop technology: Identifying the drivers using life cycle methodology in a technology foresight framework

The complexity and advanced nature of modern biotechnology, and its extensive implications for society regarding prosperity, risk and ethics, make a view of the future that is comprehensible and transparent to society desirable. The objective of this feasibility study was to investigate methodologies for strategic planning and regulatory decision-making in technologies involving genetically modified (GM) crops. The planning and regulatory decisions of both the biotechnology industry and public authorities are considered. In the study, knowledge and opinion about a well-defined problem complex are systematically brought together in the consultation of a larger number of stakeholders and experts representing as many major perspectives as possible. On the basis of a test case on the development of a GM-ryegrass, this paper suggests a methodological approach to the uncertainties faced by the biotech industry and public authorities when GM crops are commercialized. The method used was a technology foresight (TF) framework, using a life cycle inventory (LCI) to define the problem complex, a stakeholder panel to identify drivers (of change) that influence the direction of future developments, and weighted stakeholder questionnaires to prioritize these drivers. Once quantified, the weighted stakeholder opinion generated a clear criterion for prioritizing drivers that were judged to be important in the future development of a GM-ryegrass but whose precise impact was uncertain. The four drivers prioritized were: being the first to market the GM-ryegrass, an efficient network on biomolecular know-how, public dialogue and participation in regulation procedures and utility value.     

The framework for factors affecting technology transfer for suppliers and buyers of technology in Korea

To gain an ongoing competitive advantage over other firms, a firm must acquire new technology to differentiate itself from others. This paper explores the technology transfer of technology for information technology equipment and establishes a comprehensive framework for the factors which affect on-time completion of technology transfer for suppliers and buyers according to technology transfer agreements. The technology transfer process is divided into the categorical stages that take place. Then, experts’ opinions are analysed through analytic hierarchy process to determine the influential factors affecting on-time completion of technology transfer. The results of this study should provide a basis for firms to evaluate on-time completion of technology transfer and a reference for the technology transfer process for both suppliers and buyers.     

Innovation timing games: a general framework with applications

We offer a new algorithm for analyzing innovation timing games. Its main advantage over the traditional approach is that it applies to problems that had previously been intractable. We use the algorithm to examine two classical innovation problems. We find that the competition takes the form of a waiting game with a second-mover advantage either for any level of R&D costs (process innovation) or for high R&D costs (product innovation). Moreover, both models predict that the second-mover advantage is monotonically increasing in the costs of R&D.     

A new definition and framework for the development of a national technology strategy: The case of nanotechnology for Iran

In this research, we use the concepts of “national technology policy” as well as the “firm technology strategy” in defining a new definition for “national technology strategy”. Then, by examining several national technology strategies in a variety of fields in different countries the national nanotechnology strategy for Iran is developed. Furthermore, using capability-effectiveness matrix and SWOT analysis we identify strategies of nanotechnology development in Iran. Finally, considering other countries' strategies and the results of PROMETHEE Method, we prioritize different areas of nanotechnology for Iranian economy, and test for the validity of the extracted strategies.     

Optimal private good allocation: The case for a balanced budget

In an independent private value auction environment, we are interested in strategy-proof mechanisms that maximize the agents' residual surplus, that is, the utility derived from the physical allocation minus transfers accruing to an external entity. We find that, under the assumption of an increasing hazard rate of type distributions, an optimal deterministic mechanism never extracts any net payments from the agents, that is, it will be budget-balanced. Specifically, optimal mechanisms have a simple “posted price” or “option” form. In the bilateral trade environment, we obtain optimality of posted price mechanisms without any assumption on type distributions.     

上市公司财务呈报管制:一个理论分析框架

本文在扩展Stigler的“捕获”理论的基础上，解释了内生财务呈报管制的形成机理，指出只有“被管制者寻求的管制”才有可能是有效的管制。在此基础上分析了构建有效的财务呈报管制的制度安排所需要的基础条件以及应遵循的原则，并讨论了测度财务呈报管制效果的规范和实证方法，从而初步构建了关于上市公司财务呈报管制研究的一个理论分析框架、