A Lagrangean approach to the limit theorem on the core of an economy

Conclusion It is shown that an allocation which remains in the core under replication gives rise to an utility allocation with the following property: The utility level of no class can be increased without decreasing the utility level of at least one other class even if the number of consumers is allowed to vary continuously. An examination of the first order conditions the corresponding maximum problem with constraints leads to the conclusion that the allocation can be sustained by a price vector as a competitive equilibrium. This is the limit theorem on the core, proved in this paper with a simple Lagrangean technique.The notion of Pareto efficiency with a variable number of consumers proves useful for other purposes as well. For an extensive discussion of that point the reader is referred to Schweizer (1981).Ours, of course, is not the first calculus approach to the limit theorem [see e. g. L. Johansen (1978)]. But, as far as I know, the method of differentiating the Lagrangean simply with respect to the number of consumers is novel and leads to a straightforward proof of the theorem which can be reproduced in class-rooms even at the undergraduate level.The author wants to thank Joseph Greenberg and Werner Hildenbrand as well as an anonymous referee for helpful comments.     

Struktur der arbeitsnachfrage im technologischen Wandel — Eine empirische analyse für die Bundesrepublik Deutschland

Summary The Structure of Labour Demand and Technical Change: An Empirical Investigation for the Federal Republic of Germany. - The estimation of translog models using German industry data for the period 1960–1981 indicates that technical progress is capital-using and at the same time saves blue-collar labour. For some industries, evidence for white-collar labour saving technical progress is found whilst for others white-collar labour using technical change is indicated. The analysis of more disaggregated labour data shows that for white-collar and blue-collar workers alike, technical change favours the higher-skilled performance groups. Furthermore, it is indicated that blue-collar labour is a substitute for white-collar labour and capital, whereas only a weak substitutive and sometimes even complementary relationship exists between white-collar labour and capital.

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Résumé La structure de la demande de main d’oeuvre et changement technique: une investigation empirique de la RFA. - L’estimation des modèles translog avec des données de l’industrie allemande pour la période 1960–1981 indique que le progrès technique use des capitaux et simultanément économise des ouvriers. Pour quelques industries, il y a l’évidence que le progrès technique est accompagné par une économie d’employées de bureau, pour d’autres qu’il est accompagné par une augmentation de la nombre des employées. L’analyse des données de la main d’∄uvre qui sont plus désagrégées démontre que pour les ouvriers aussi bien que les employées le changement technique favorise les groupes les plus qualifiés. De plus, il est indiqué que les ouvriers sont un substitut pour les employées et le capital pendant qu’une faible relation substitutive et parfois même complémentaire existe entre les employées de bureau et le capital.

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Resumen La estructura de la demanda de trabajo y el cambio tecnológico: una investigación empírica para la República Federal de Alemania. - La estimación de modelos ?translog? utilizando datos de la industria alemana para el período 1960–1981 indica que el cambio tecnológico insume capital y a la vez ahorra mano de obra obrera. Se encuentra evidencia en favor de un progreso técnico que en algunas industrias ahorra mientras que en otras insume mano de obra de oficina. El análisis de datos laborales más desagregados muestra que para ambas categorías de mano de obra el cambio technol?gico favorece a los grupos de mayor calificación. Además, la mano de obra obrera resulta ser sustituto de la mano de obra de oficina y del capital, mientras que la relatión entre la mano de obra de oficina y el capital resulta sólo moderadamente sustitutiva y en algunos casos hasta complementaria.

     

The spatial structure of production with a leontief technology – II: Substitute techniques

The structure of the optimal spatial pattern of production is studied when there are dependencies among production units which can be described by a Leontief technology with substitute techniques, and when there is a single marketplace of final demand, the CBD. Transportation cost is proportional to distance. The various goods are produced in rings. There are a finite number of patterns in which these rings are arranged, and they can be obtained by a finite algorithm. The particular pattern depends on the final demand. Hence there is no ‘non- substitution’ theorem. ‘Reswitching’ of techniques can occur, that is, in an optimal pattern a technique may be operated at large and small distances from the CBD, but not at intermediate distances; this contradicts prevailing beliefs about optimal capital/land profiles.     

z-Tree: Zurich toolbox for ready-made economic experiments

z-Tree (Zurich Toolbox for Ready-made Economic Experiments) is a software for developing and conducting economic experiments. The software is stable and allows programming almost any kind of experiments in a short time. In this article, I present the guiding principles behind the software design, its features, and its limitations. JEL Classification C92     

注重环境保护

拥有约60,000人口的卢塞恩市是瑞士第8大城市。它位于瑞士中部Alps山脉的正北面,这就意味着卢塞恩市处于欧洲的心脏部位。由于卢塞恩市特殊的地理位置,即靠近Alps山脉和一个巨大的湖泊,所以市政府官员具有强烈的环境保护意识和高度的环境责任感。     

The implication of extreme events on policy responses

This paper considers a situation where a real risk exists that requires precautions, but the public mostly experiences the risk through infrequently occurring extreme events; this type of risk includes risk from climate change, international terrorism, natural calamities or financial crises. The analysis shows that if a risk-mitigating policy is based on the perceived riskiness of that risk, it will call for disproportionate responses (compared to what the ‘real’ risk suggests) by either under- or over-investing in risk-reducing policies, depending on the characteristics of the problem, implying significant volatility in the policy response. This type of response provides at least three challenges to society: policy cycles where implementation lags behind the actual change in risk, a lock-in to inefficient technologies and additional costs. Finally, this paper addresses the question of how the above-mentioned challenges can be managed through proper risk communication.