On Stable Pareto Laws in a Hierarchical Model of Economy

This study considers a model of the income distribution of agents whose pairwise interaction is asymmetric and price-invariant. Asymmetric transactions are typical for chain-trading groups who arrange their business such that commodities move from senior to junior partners and money moves in the opposite direction. The price-invariance of transactions means that the probability of a pairwise interaction is a function of the ratio of incomes, which is independent of the price scale or absolute income level. These two features characterize the hierarchical model. The income distribution in this class of models is a well-defined double-Pareto function, which possesses Pareto tails for the upper and lower incomes. For gross and net upper incomes, the model predicts definite values of the Pareto exponents, $a_{\rm gross}$ and $a_{\rm net}$, which are stable with respect to quantitative variation of the pair-interaction. The Pareto exponents are also stable with respect to the choice of a demand function within two classes of status-dependent behavior of agents: linear demand ($a_{\rm gross}=1$, $a_{\rm net}=2$) and unlimited slowly varying demand ($a_{\rm gross}=a_{\rm net}=1$). For the sigmoidal demand that describes limited returns, $a_{\rm gross}=a_{\rm net}=1+\alpha$, with some $\alpha>0$ satisfying a transcendental equation. The low-income distribution may be singular or vanishing in the neighborhood of the minimal income; in any case, it is $L_1$-integrable and its Pareto exponent is given explicitly. The theory used in the present study is based on a simple balance equation and new results from multiplicative Markov chains and exponential moments of random geometric progressions.Comment: 23 pages, 10 figure

Dundee Discussion Papers in Economics 120:An I(2) analysis of inflation and the markup

An I(2) analysis of Australian inflation and the markup is undertaken within an imperfect competition model. It is found that the levels of prices and costs are best characterised as integrated of order 2 and that a linear combination of the levels (which may be defined as the markup) cointegrates with price inflation. From the empirical analysis we obtain a long-run relationship where higher inflation is associated with a lower markup and vice versa. The impact in the long-run of inflation on the markup is interpreted as the cost to firms of overcoming missing information when adjusting prices in an inflationary environment

Tradition and Innovation in Classical Sociology: Tenth Anniversary Report of JCS

Perhaps the very idea of ‘classical sociology’ is a contradiction in terms; sociology was originally that social science peculiarly concerned with the study of the processes of modernization and the condition of modernity, that is, with the critical examination of ‘post-traditional’ developments and hence ‘post-classical’ forms of social organization. Its concerns have broadened subsequently, but the focus of sociology remains on the exploration of the nature and development of social structure and social action in the post-traditional world. In the nineteenth century, sociologists invented new concepts and experimented with new methods to study the emergence of unprecedented social phenomena and the rise of a type of society that was variously called ‘modern society’, ‘industrial society’, and ‘capitalist society’. In the twentieth century, there was a further elaboration of key sociological concepts, and it became increasingly popular to proclaim the rise of yet another form of society, described as ‘post-industrial society’, ‘late modern society’, ‘post-modern society’, or ‘network society’. In the current century, the idea of globalization has swept everything before it, leading to the notion that ‘society’ has now been replaced by flows and networks of people, objects, and ideas. With the transition from traditional to modern societies, the integrative power of Gemeinschaft began to compete with the systemic power of Gesellschaft; with the transition from modern to late modern societies, the local horizons of our Lebenswelt appear to be increasingly shaped by the deterritorialized networks of the Weltgesellschaft. If we are ‘post-traditional’, surely we are also ‘post-classical’. It is hardly surprising, therefore, that many contemporary sociologists have some difficulty accepting the very idea of classical sociology

Marxian socialism.: Power elite or ruling class?

https://stars.library.ucf.edu/prism/1580/thumbnail.jp

The transition from feudalism to capitalism; a symposium

https://stars.library.ucf.edu/prism/1614/thumbnail.jp