On the Endogenous Choice between Protection and Promotion

In a model of strategic interaction between firms in lobbying activity, I show that capitalists might prefer tariffs (protection) to production subsidies (promotion). This is due to the congestion problem arising from the government's convex welfare costs of providing subsidies as opposed to both the free-rider problem and the congestion problem acting in opposite directions in the case of tariffs. If an industry association exists, coordination can be achieved when lobbying for tariffs, but not in the case of production subsidies.     

Characterizing the sustainability problem in an exhaustible resource model

We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta–Heal–Solow–Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick?s rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path.     

On equitable social welfare functions satisfying the Weak Pareto Axiom: A complete characterization

The present paper examines the problem of aggregating infinite utility streams with a social welfare function that respects the Anonymity and Weak Pareto Axioms. The paper provides a complete characterization of domains (of the one period utilities) on which such an aggregation is possible. A social welfare function satisfying the Anonymity and Weak Pareto Axioms exists on precisely those domains that do not contain any set of the order type of the set of positive and negative integers. The criterion is applied to decide on possibility and impossibility results for a variety of domains. It is also used to provide an alternative formulation of the characterization result in terms of the accumulation points of the domain.     

The measurement of income mobility: A partial ordering approach

Summary. Given a set of longitudinal data pertaining to two populations, a question of interest is the following: Which population has experienced a greater extent of income mobility? The aim of the present paper is to develop a systematic way of answering this question. We first put forth four axioms for income movement-mobility indices, and show that a familiar class of measures is characterized by these axioms. An unambiguous (partial) ordering is then defined as the intersection of the (complete) orderings induced by the mobility measures which belong to the characterized class; a transformation of income distributions is “more mobile” than another if, and only if, the former is ranked higher than the latter for all mobility measures which satisfy our axioms. Unfortunately, our mobility ordering depends on a parameter, and therefore, it is not readily apparent how one can apply it to panel data directly. In the second part of the paper, therefore, we derive several sets of parameter-free necessary and sufficient conditions which allow one to use the proposed mobility ordering in making unambiguous income mobility comparisons in practice. Received: July 12, 1995; revised version: May 13, 1997     

外部环境影响小企业的成长速度

研究表明．小企业的成长跟它所处的环境和地理位置关系．所以有些地方的小企业成长得很快．而有些地方的许多企业却停滞不前。     

INTERTEMPORAL COMPLEMENTARITY AND OPTIMALITY: A STUDY OF A TWO‐DIMENSIONAL DYNAMICAL SYSTEM*

We study the underlying structure of the two‐dimensional dynamical system generated by a class of dynamic optimization models that allow for intertemporal complementarity between adjacent periods, but preserve the time‐additively separable framework of Ramsey models. Specifically, we identify conditions under which the results of the traditional Ramsey‐type theory are preserved even when the intertemporal independence assumption is relaxed. Local analysis of this theme has been presented by Samuelson (Western Economic Journal 9 (1971), 21–26). We establish global convergence results and relate them to the local analysis, by using the mathematical theory of two‐dimensional dynamical systems. We also relate the local stability property of the stationary optimal stock to the differentiability of the optimal policy function near the stationary optimal stock, by using the Stable Manifold Theorem.     

Characterization of the turnpike property of optimal paths in the aggregative model of intertemporal allocation

The present paper provides a complete characterization of the turnpike property of optimal paths in the (reduced form) aggregative model of intertemporal allocation. The characterization allows one to identify precisely the bifurcation point between globally stable and cyclical long-run optimal behavior. The complete characterization result is used to evaluate several sufficient conditions for global asymptotic stability of optimal paths that have been proposed in the published literature. It is also used to examine sufficient conditions for the emergence of competitive equilibrium cycles in two-sector models.     

Intertemporally dependent preferences and optimal dynamic behavior

We study a model of optimal dynamic behavior in which the intertemoral preferences preserve the time additively separable framework of Ramsey models, while exhibiting Edgeworth–Pareto complementarity between consumption in adjacent periods. We identify economic environments in which global optimal dynamics under intertemporal complementarity exhibits persistent fluctuations even though the misspecified Ramsey-type theory, under the intertemporal independence assumption, predicts monotone convergence.     

Efficient and optimal programs when investment is irreversible: A duality theory

An attempt is made in this paper to formulate a satisfactory duality theory of efficient and optimal programs in intertemporal models with irreversible inveatment. The introduction of the constraint that depreciated capital stock cannot be used for present consumption makes the meaningful choice and interpretation of dual variables a more difficult problem, as is pointed out by means of an example. A new definition of a competitive program is introduced, and this is seen to lead to useful characterizations of efficient and optimal programs.     

Share Ribs and Income Distribution*

The connection between changes in commodity prices and the distribution of income is a question of active interest since the 1941 Stolper-Samuelson Theorem. In higher dimensions results are obtained only if structure is imposed. Here we assume that each of n-industries is alike in the shape of the profile (rib) of distributive factor shares with a permutation of factor numbering such that industry n is most intensive in factor n. Such a structure reveals either a strong version of the Stolper Samuelson Theorem or a Neighborhood oscillation pattern depending on the shape of the share ribs.