Natural Resources, Uncertainty, and General Equilibrium Systems

List of Contributors

Preface

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

References

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

Uncertainty

Leverage, Bankruptcy, and the Cost of Capital


1. Introduction


2. Stochastic Dominance Analysis


3. Analysis with a Linear Utility Function


4. Concluding Remarks

References

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

References

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

References

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

References

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

References

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

References

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

References

An Exchange Model of Bilateral Trade


1. Introduction


2. A General Model of Bilateralism


3. Conclusion

References

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

References

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

References

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

Reference

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

References

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

References