Income distribution and inequality measurement: The problem of extreme values

We examine the statistical performance of inequality indices in the presence of extreme values in the data and show that these indices are very sensitive to the properties of the income distribution. Estimation and inference can be dramatically affected, especially when the tail of the income distribution is heavy, even when standard bootstrap methods are employed. However, use of appropriate semiparametric methods for modelling the upper tail can greatly improve the performance of even those inequality indices that are normally considered particularly sensitive to extreme values.     

Finite sample multivariate structural change tests with application to energy demand models

This paper considers finite sample motivated structural change tests in the multivariate linear regression model with application to energy demand models, in which case commonly used structural change tests remain asymptotic. As in Dufour and Kiviet [1996. Exact tests for structural change in first-order dynamic models. Journal of Econometrics 70, 39–68], we account for intervening nuisance parameters through a two-stage maximized Monte Carlo test procedure. Our contributions can be classified into five categories: (i) we extend tests for which a finite-sample theory has been supplied for Gaussian distributions to the non-Gaussian context; (ii) we show that Bai et al. [1998. Testing and dating common breaks in multi-variate time series. The Review of Economic Studies 65 (3), 395–432] test severely over-rejects and propose exact variants of this test; (iii) we consider predictive break test approaches which generalize tests in Dufour [1980. Dummy variables and predictive tests for structural change. Economics Letters 6, 241–247] and Dufour and Kiviet [1996. Exact tests for structural change in first-order dynamic models. Journal of Econometrics 70, 39–68]; (iv) we propose exact (non-Bonferonni based) extensions of the multivariate outliers test from Wilks [1963. Multivariate statistical outliers. Sankhya Series A 25, 407–426] to models with covariates; (v) we apply these tests to the energy demand system analyzed by Arsenault et al. [1995. A total energy demand model of Québec: forecasting properties. Energy Economics 17 (2), 163–171]. For two out of the six industrial sectors analyzed over the 1962–2000 period, break and further goodness-of-fit and diagnostic tests allow to identify (and correct) specification problems arising from historical regulatory changes or (possibly random) industry-specific effects. The procedures we propose have potential useful applications in statistics, econometrics and finance (e.g. event studies).     

Hölder continuity of the policy function approximation in the value function approximation

We show that given a value function approximation V of a strongly concave stochastic dynamic programming problem (SDDP), the associated policy function approximation is Hölder continuous in V.     

The graph of Lindahl correspondence as the unique von Neumann-Morgenstern abstract stable set

In this paper, we consider a continuum economy with a finite number of types of agent, and several private and public goods. The main result of the paper is that the graph of the equal-treatment Lindahl equilibria mapping is the unique abstract stable set with respect to the dominance relation in economies with crowding effects introduced by Vasil'ev et al. in 1995. The external stability of this mapping implies that, for any equal-treatment allocation x in , that is not a Lindahl equilibrium, there exists a subeconomy of such that one of its equal-treatment Lindahl allocations blocks x. This result is a counterpart of the theorem of Mas-Colell for Aumann's atomless market with private goods.     

Reconciling introspective utility with revealed preference: Experimental arguments based on prospect theory

In an experiment, choice-based (revealed-preference) utility of money is derived from choices under risk, and choiceless (non-revealed-preference) utility from introspective strength-of-preference judgments. The well-known inconsistencies of risky utility under expected utility are resolved under prospect theory, yielding one consistent cardinal utility index for risky choice. Remarkably, however, this cardinal index also agrees well with the choiceless utilities, suggesting a relation between a choice-based and a choiceless concept. Such a relation implies that introspective judgments can provide useful data for economics, and can reinforce the revealed-preference paradigm. This finding sheds new light on the classical debate on ordinal versus cardinal utility.     

军用集装箱三维装载的优化方法

以军用集装箱装载为研究对象，在考虑实际应用中的一些约束条件下，构造了军用集装箱的装载优化模型，提出了一种军用集装箱三维装载的启发式算法。该算法采用了整体装填、空间合并等策略，考虑了装载方向、优先顺序、重心等约束条件。最后对一个案例进行了计算与分析，验证了该模型的有效性，并且利用3ds max得到了装载方案的三维图。     

Proportionally adjusted marginal pricing method to share joint costs

We consider the cost sharing problem with divisible demands of heterogeneous goods. We propose a cost sharing method called Proportionally Adjusted Marginal Pricing (PAMP) method. PAMP is a nonadditive (in the cost function) extension of average cost pricing. We introduce an axiom called Local Independence (LI) and use LI together with Continuity, Proportionality, and Scale Invariance to characterize PAMP. Received: 23 March 2001 / Accepted: 16 November 2001 I thank Yves Sprumont, Hervé Moulin, and Ahmet Alkan for discussions, comments and suggestions. Thanks also go to the associate editor and the referees, whose comments and suggestions greatly improve the paper.     

Industry evolution and R&D externalities

R&D externalities can imply ranges of aggregate increasing returns to scale in R&D. As a consequence several equilibria can exist involving different numbers of firms and different R&D investment levels. In a theoretical model the equilibrium dynamics are analyzed, showing that cyclical fluctuations of the number of firms and R&D investment may be expected, and that the long-run equilibrium is highly sensitive to investors' initial beliefs. The model is tested empirically using a unique database comprising competing firms in various R&D races.     

Instrumental values

This paper studies identification of partial differences of nonseparable structural functions. A model is defined which admits structural functions exhibiting a degree of monotonicity with respect to a latent variate. The model identifies partial differences when there are instrumental values of covariates over which the latent variate exhibits a local quantile invariance, and a local order condition holds. The result is useful when covariates exhibit discrete variation, as arises often in practice, and when restricting latent variates and covariates to be statistically independent is unpalatable. The results are illustrated with data from the returns-to-schooling study of Angrist and Krueger [1991. Does compulsory schooling attendance affect schooling and earnings? Quarterly Journal of Economics 106, 979–1014].     

Sources of Sectoral Growth in an Economy Wide Context: The Case of U.S. Agriculture

Growth in U.S. agriculture is linked to the non-farm economy through domestic terms of trade and factor market adjustments. With almost stable input growth, the relatively large contributions from growth in Total Factor Productivity (TFP) are passed on to intermediate and final consumers in the form of declining real prices for primary farm products. The resulting net growth in the real value of farm output (GDP) is relatively low (0.25% per annum). The decomposition of TFP suggests that public agricultural stock of knowledge and infrastructure are robustly associated with TFP growth, while spill-overs from private agricultural and economy wide research and development (R and D) are positive but, relatively small.