Spatial majority voting equilibria and the provision of public goods

This paper develops general equilibrium conditions for urban areas where a pure public good is provided at a level decided upon by majority voting. Models with a property tax and a head tax and external land ownership are analyzed, and equilibrium solutions are compared using a specific form for the utility function. Optimal cities are characterized and compared to those emerging from the majority voting equilibria. Models where aggregate land rent is divided equally among the urban residents are also developed.     

The theory of the labor-managed firm from the membership's perspective with implications for marshallian industry supply

The partial-equilibrium literature on labor-managed (L-M) firms argues that the property-rights structure inhibits economic efficiency and induces perverse responses to price parameters in the short run. But recent general-equilibrium literature demonstrates equivalence of equilibria between L-M and capitalist market economies with the relevant welfare results therefore applying to the L-M economy. Once the L-M firm's maximand is modified to incorporate members' property rights, the short-run industry supply curves of the two economics, under quasi-market conditions consistent with recent Yugoslav reforms, are seen to be equivalent. Hence, the property-rights structure in the L-M economy is compatible with efficiency and normal short-run price responses.     

Adaptive expectations,rational expectations,and money demand in hyperinflation Germany

In the recent literature Sargent and Wallace (IER, June, 1973) have estimated the demand equation for money in hyperinflation under the restriction that the adaptive formula of Phillip Cagan yields rational inflation expectations in the sense of John Muth. The present paper finds evidence to reject for the Germany case the proposition that adaptive expectations are rational. The procedure employed is basically to overfit the stochastic representation for the inflation rate implied by the ‘adaptive-is-rational’ hypothesis. The paper also puts forward and applies a two-step procedure to estimate the important money demand elasticity in hyperinflation. The procedure returns reasonable results with large estimated standard errors.     

Some problems with transient phenomena when simulating unpaced lines

Unlike earlier simulation studies of unpaced production lines which generally concentrated on steady-state behavior, we are concerned with their transient characteristics. This paper (1) presents an approach for studying and monitoring transient behavior, (2) reports some important transient operating characteristics previously overlooked, and (3) demonstrates that the conflicting results reported in some of the earlier simulation studies are due to an inadequate accounting for transient behavior. Thus, this paper illustrates the importance of having a better understanding of transient behavior in unpaced lines, and presents our initial steps towards dealing with it.     

Errata

Ohne Zusammenfassung

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Errata