Natural Resources, Uncertainty, and General Equilibrium Systems - 1st Edition - ISBN: 9780121061500, 9781483264837

Natural Resources, Uncertainty, and General Equilibrium Systems

1st Edition

Essays in Memory of Rafael Lusky

Editors: Alan S. Blinder Philip Friedman
eBook ISBN: 9781483264837
Imprint: Academic Press
Published Date: 1st January 1977
Page Count: 272
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Natural Resources, Uncertainty, and General Equilibrium Systems: Essays in Memory of Rafael Lusky compiles a collection of works by economists who had been friends and colleagues of Rafael Lusky, a teacher in the University of Florida and contributor to theoretical resource economics. This book is divided into four sections— natural resources, uncertainty, general equilibrium systems, and policy and applications. In these sections, this text specifically discusses the resource depletion with technological uncertainty and the Rawlsian fairness principle; monopoly, uncertainty, and exploration; and price discrimination under uncertainty. The insurance theoretic aspects of workers' compensation; adverse selection and optimum insurance policies; and difficulty with Keynesian models of aggregate demand are also elaborated. This compilation likewise deliberates the exchange model of bilateral trade; optimal taxes on foreign lending; and extended linear permanent expenditure system (ELPES). This publication is a useful reference for economists and students concerned with theoretical resource economics.

Table of Contents

List of Contributors


Natural Resources

Resource Depletion with Technological Uncertainty and the Rawlsian Fairness Principle

1. Introduction

2. The Structure of the Model and Other Preliminaries

3. The Just Rate of Resource Depletion

4. Concluding Remark


Monopoly, Uncertainty, and Exploration

1. Introduction

2. Social Optimality in a Two-Period Model

3. Social Optimality: An Alternative Formulation

4. Monopoly

5. The Case of Certainty

6. The Case of Certainty (Alternative Formulation)

7. The Impact of Uncertainty

8. Uncertainty Continued

9. General Remarks


Leverage, Bankruptcy, and the Cost of Capital

1. Introduction

2. Stochastic Dominance Analysis

3. Analysis with a Linear Utility Function

4. Concluding Remarks


Price Discrimination under Uncertainty

1. Introduction

2. The Nonstochastic Case

3. The Objective of the Firm under Uncertainty

4. First-Order Conditions

5. Some Results for an Exponential Utility Function

6. Implications for Legal Analysis

7. Conclusion


Insurance Theoretic Aspects of Workers Compensation

1. Introduction

2. Accidents and Full Efficiency

3. Ideal Insurance

4. Less-than-Ideal Insurance

5. The Present Workers' Compensation Program

6. Voluntary Insurance

7. Wage Bargains and Worker Misperceptions

8. Choice of Technology

9. Variation among Workers

10. On-the-Job Safety

11. Concluding Remarks


Multiperiod Stochastic Dominance with One-Period Parameters, Liquidity Preference, and Equilibrium in the Log-Normal Case

1. Introduction

2. Assumptions and Notations

3. Comparison of the Normal and the Log-Normal Efficiency Frontiers

4. Equilibrium and Log-Normal Efficiency Analysis with One-Period Parameters

5. Concluding Remarks


Adverse Selection and Optimum Insurance Policies

1. Introduction

2. The General Problem

3. The Optimum Linear Policy with a Ceiling

4. Comparison with the Socially Optimal Policy

5. A Nonlinear Example


General Equilibrium Systems: Stability, Optimality, and Distribution

A Difficulty With Keynesian Models Of Aggregate Demand

1. Statement of the Problem

2. The Conventional Keynesian Model

3. An Alternative Model of Output Adjustment Decisions

4. A Model of Output Level Decisions

5. Dynamic Properties of the Preferred Model

6. Recapitulation


Continuously Dated Commodities and Nontatonnement with Production and Consumption

1. Introduction: The Problem of Dated Commodities

2. The Hahn Process and Money

3. Topological Issues

4. Behavior of Households

5. Behavior of Firms

6. Closure Equations and Walras' Law

7. The Present Action Postulate

8. The Hahn Process and Trading Rules

9. Price Adjustment

10. Decline of Target Profits

11. Decline of Target Utilities

12. Properties of Equilibrium

13. Boundedness

14. Compactness and Quasi-Stability

15. Global Stability


An Exchange Model of Bilateral Trade

1. Introduction

2. A General Model of Bilateralism

3. Conclusion


When it is Ethically Optimal to Allocate Money Income in Stipulated Fractional Shares

1. Introduction and Summary

2. Social Welfare Functions

3. Constancy of Relative Risk Aversion

4. Optimality Conditions

5. Symmetry Situations and Generalizations

6. Qualifications


Policy and Applications

Optimal Taxes on Foreign Lending

1. Introduction

2. The Optimum Tax: Simple Case

3. The Many-Good, Many-Period Case

4. Optimum Taxes on Exchange: General Case

5. Related Approaches

6. Summary


Monopoly, Regulation, Waiting Lines, and Investment in Service Capacity

1. Introduction

2. The Model

3. Comparison between Monopoly and the Social Optimal Case

4. Regulation of Monopoly


Identification and Estimation Problems in Limited Dependent Variable Models

1. Introduction

2. The Simple Probit Model

3. The Tobit Model

4. Simple Extensions of the Tobit Model

5. Stochastic Threshold Models

6. Simultaneous Equations Models

7. Conclusions


An Extended Linear Permanent Expenditure System (ELPES)

1. Introduction

2. Permanent-Income Approaches

3. Formulation of the ELPES

4. Estimation of Parameters

5. Standard Errors

6. Concluding Remarks



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© Academic Press 1977
Academic Press
eBook ISBN:

About the Editor

Alan S. Blinder

Philip Friedman

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