Kinky perceived demand curves and Keynes-Negishi equilibria

The label “Keynes-Negishi equiibria” is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks - as posited in Negishi’s 1979 book Microeconomic Foundations of Keynesian Macroeconomics. Such equilibria are defined in a general equilibrium model, and shown to exist. Methodological implications are briefly discussed in a concluding section.Equilibrium, imperfect competition, perceived demands, kinky demand, princing rules, union wage model, union objectives, cash-in-advance

Nested identification of subjective probabilities

The theory of games against nature relies on complete preferences among all conceivable acts, i.e. among all potential assignments of consequeces to states of nature (case 1). Yet most decision problems call for choosing an element from a limited set of acts. And in games of strategy, the set of strategies available to a player is givent and not amenable to artificial extensions. In “Assessing Strategic Risk”,(ECON DP 2005-20) R.J. Aumann and J.H. Drèze extend the basic result of decision theory (maximisation of subjectvely expected utility) to situations where preferences are defined only for a given set of acts, and for lotteries among these and sure consequences (case 2). In this paper, we provide a similar extension for two other situations : those where only the set of optimal elements from a given set of acts is known (case 3); and those where only a single optimal act is known (case 4). To these four cases correspond four nested sets of admissible subjective probabilities over the states or the opponent’s strategies, namely a singleton in case 1 and increasing sets in cases 2-4. The results for case 3 and 4 also define the extent to which subjective probabilities must be specified in order to solve a given decision problem or play a given name.

Agricultural Value Chains in Developing Countries A Framework for Analysis

Developing country value chains, research framework, upgrading, Agribusiness, Agricultural and Food Policy, Agricultural Finance, International Development, Land Economics/Use, Political Economy, O13, Q13,

The Many Faces of the Chiral Potts Model

In this talk, we give a brief overview of several aspects of the theory of the chiral Potts model, including higher-genus solutions of the star-triangle and tetrahedron equations, cyclic representations of affine quantum groups, basic hypergeometric functions at root of unity, and possible applications.Comment: 16 pages, LaTeX 2.09 or 2E, 8 eps figures, uses psfig.te

Jurisdictional Issues: The EEC Merger Control Regulation, Member State Laws, and Articles 85 and 86

This Article deals with two main issues. One is the division of powers between the European Economic Community and the Member States with regard to merger control after September 21, 1990. The other is the possible application, by the Commission of the European Communities or by national authorities, of Article 85 and 86 of the Treaty Establishing the European Economic Community to mergers covered by Regulation No. 4064/89. The Article casts a brief look at how the dividing line between merges and operations which do not qualify as mergers within the sense of article 3 of the Regulation will be treated in the future

Firm Level Investment in France and the United States: An Exploration of What We Have Learned in Twenty Years

We review the changes in modelling strategy and econometric methodology when estimating a firm-level investment equation on panel data during the past twenty years, in order to assess which of these changes result from new estimation methods and changes in the practice of panel data econometrics, and which are "real" and due to the evolution of the economy. Thus our paper consists of a series of comparisons: a simple accelerator-profit specification versus one with error correction, traditional between- and within-firm estimation versus GMM estimation, the investment behavior of French firms versus that of U.S. firms, and investment behavior today versus ten to twenty years ago. Although the econometric advances have perhaps not been as successful as we had hoped, we do find some real change in firm behavior and some improvement in equation specification and interpretation during the past twenty years.investment, panel data, GMM, international comparisons, firm- level