Was Jules Dupuit a Market Socialist: A Retrospective Note on Marginal Cost Pricing

This paper examines the extent to which Dupuit preceded Hotelling in the theory of marginal cost pricing and the relation of marginal cost pricing to the Pigou–Robinson definition of exploitation, Coase’s multipart pricing, and the Kaldor compensation principle. Tsuneki’s partial rehabilitation of Hotelling’s proof of MC pricing is partially endorsed.      

Repeated Dichotomous Choice Formats for Elicitation of Willingness to Pay: Simultaneous Estimation and Anchoring Effect

Repeated dichotomous choice contingent valuation data are generated from responses to a succession of binary questions regarding alternative prices for an environmental good. In this paper we propose a simultaneous equation model that allows for endogeneity and error correlation across the responses at each stage of the bidding process. The model allows us to study the evolution of anchoring effects after the second dichotomous choice question. Estimation involves the Bayesian techniques of Gibbs sampling and data augmentation, and the application focuses on the preservation value of a natural area. The results for a data set involving up to four successive dichotomous choice questions show that restricted multiple-bounded models are rejected by the data with the general model. In addition, willingness to pay tends to stabilize after the second stage in the elicitation process for the general unrestricted model. When taking anchoring effects into consideration, it is revealed that individuals’ responses in the latter stages are influenced by the sequence of bid prices offered in earlier questions. Nevertheless, they do not have a significant effect on welfare estimates.      

Characterization of Normal Distribution Related to Two Samples Based on Regression

Characterization of normal distribution related to two samples based on second conditional moments has been obtained. This characterization has been transformed to a characterization based on the UMVU estimators of the density function. These results are generalized to k samples from normal distributions. Finally applications of these characterization results to goodness-of-fit test are discussed.     

Effects of sterilising a balance of payments surplus on domestic yields—A formal analysis

This paper examines the effects of sterilising a surplus, using open market operations, on the level and structure of interest rates. The framework adopted is a portfolio balance model of the financial sector. The paper begins by assuming residents hold assets in only three forms—domestic money, domestic bonds, and foreign assets. Initially, the surplus emerges in one of three ways—the foreign interest rate falls, there is an exogenous inflow, or there is an ongoing current account surplus. The analysis is then extended to the case where there is some direct real investment. Finally, the model is refined to allow residents to hold four assets, including new equities.     

A logistic regression-based pairwise comparison method to aggregate preferences

In a group decision making process, several individuals or a committee have the responsibility to choose the best alternative from a set. The problem addressed in this paper is how to aggregate personal preferences to arrive at an optimal group decision. New technologies allow individuals that may seldom or never meet to make group decisions. This paper proposes a methodology to obtain the group preference ordering in two steps. Firstly, each individual studies the problem isolated, and then, in a possibly virtual meeting, the group must agree on the preferences on some pairs of alternatives. Then, the group criterion is achieved by using a logistic regression model within the pairwise comparison framework proposed here. Properties of the procedure are studied and two illustrative examples are presented.     

The supply of and demand for accounting information

The article analyzes the use of accounting information in Russia. We assess reporting behaviour in the lending process for a sample of Russian companies in the years 1999–2004 and postulate that Russian companies manage their earnings in order to avoid showing losses when applying for bank financing. Once a credit has been granted, companies are predicted to manage earnings because of the bank's monitoring activities. By means of univariate and multivariate analysis we are able to attribute the discontinuity around a zero target in the earnings distribution with firms’ response to the banks’ assessment of accounting performance. This implies that financing considerations affect the reporting incentives of Russian companies.     

Influence measures on profile analysis with elliptical data through Frèchet’s metric

In this paper, from Frèchet’s metric, diagnostic tools are constructed for the detection of influential observations in Profile Analysis with elliptically distributed random errors . This distributional hypothesis allows the application of the proposed diagnostics to a wide variety of random experiences, not only for data from a multivariate normal distribution but also from other symmetric distributions, commonly used in studies of several sciences. The diagnostics are based on Frèchet’s distance between the distributions of the basic statistics in Profile Analysis, in the postulated model and in the perturbed model obtained by deleting an observation from the sample data. This metric is highly useful since it enables the analysis of the influence on the point estimation and the estimation error. Applications on two data sets are provided.