The Marshallian macroeconomic model: A progress report

In this progress report, we first indicate the origins and early development of the Marshallian macroeconomic model (MMM) and briefly review some of our past empirical forecasting experiments with the model. Then we present recently developed one-sector, two-sector and n-sector models of an economy that can be employed to explain past experience, predict future outcomes and analyze policy problems. The results of simulation experiments with various versions of the model are provided to illustrate some of its dynamic properties that include “chaotic” features. Last, we present comments on planned future work with the model.     

Developing a tutoring module for presentation of computerized patient management problems

The simulation problem is one of the most commonly used formats in computer-assisted instruction (CAI). In medical education, a patient simulation problem is known as a patient management problem (PMP). A number of computerized PMP systems are currently available. However, to date, there is no record of PMP systems having been developed using artificial intelligence. This is noteworthy since artificial intelligence techniques could help in the generation of more effective and intelligent instructional systems.

This paper analyzes and evaluates existing instructional simulation software in clinical medicine in terms of effective educational design attributes. Components of effective PMP systems thus identified are incorporated into a computerized instructional system which uses artificial intelligence techniques for teaching problem-solving and diagnostic skills to undergraduate medical students.     

Firm Size, Industry Mix and the Regional Transmission of Monetary Policy in Germany

Abstract. This paper estimates the impact of interest rate shocks on regional output in Germany over the period from 1970 to 2000. We use a vector autoregression (VAR) model to obtain impulse responses, which reveal differences in the output responses to monetary policy shocks across ten German provinces. Next, we investigate whether these differences can be related to structural features of the regional economies, such as industry mix, firm size, bank size and openness. An additional analysis of the volatility of real GDP growth for the period 1992–2000 includes the Eastern provinces. We also present evidence on the interrelationship between firm size and industry, and compare our measure of firm size with those used in previous studies. We conclude that the differential regional effects of monetary policy are related to industrial composition, but not to firm size or bank size.     

Distributional aspects of the divisibility of money: an example

Summary. I highlight the importance of the distributional aspects of moneys divisibility by comparing a search-theoretic model with random transfers of indivisible money balances, to one with deterministic transfers of partially divisible balances. Randomization allows price flexibility, as if money were fully divisible. Partial divisibility does not, but allows money redistributions. An example of the relevance of such extensive margin aspects of divisibility is provided.JEL Classification Numbers: D30, D83, E40.I thank Dean Corbae and seminars participants at the Federal Reserve Bank of Richmond, University of Texas at Austin, Purdue University, the Midwest Macroeconomics Meetings, the Central Bank Institute of the Federal Reserve Bank of Cleveland, and the meetings of the Society for the Advancement of Economic Theory, where this work has been presented during the years 2002 and 2003.     

Matching and anonymity

This work introduces a set-theoretic foundation of deterministic bilateral matching processes and studies their properties. In particular, it formalizes a link between matching and informational constraints by developing a notion of anonymity that is based on the agents’ matching histories. It also explains why and how various matching processes generate different degrees of “informational isolation” in the economy. We illustrate the usefulness of our approach to modeling matching frameworks by discussing the classical turnpike model of Townsend.This research is supported in part by the NSF grants EIA-0075506, SES-0128039, DMS-0437210, and ACI-0325846. We thank two anonymous referees for constructive comments that improved the exposition of the paper. We also thank the participants in seminars at the University of Aarhus, Purdue University, University of Texas at Austin, and at the XI Meeting on Real Analysis and Measure Theory in 2004, the spring 2004 Midwest Economic Theory Meeting, the summer 2004 North American and European Econometric Society meetings.     

University research and development of a microsatellite

Developing a microsatellite at a university is an effective means of training engineering students for an R&D career. Such a programme requires the adoption of many research and development processes from industry. This paper describes how tailored forms of systems engineering, project management and technology management were applied to develop a high technology product at a tertiary educational institution. This microsatellite development programme has produced students who are well prepared for the realities of engineering practice, and a research and development facility that earns research funding for the university.