Quantitative Economics and Development

Quantitative Economics and Development

Essays in Memory of Ta-Chung Liu

1st Edition - January 1, 1980

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  • Editors: L. R. Klein, M. Nerlove, S. C. Tsiang
  • eBook ISBN: 9781483271613

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Economic Theory, Econometrics, and Mathematical Economics: Quantitative Economics and Development: Essays in Memory of Ta-Chung Liu focuses on the advancements in the methodologies and processes in the field of quantitative economics. The selection first offers information on society, politics, and economic development, global stability of stochastic economic processes, and the design of mechanisms for the efficient allocation of public goods. Discussions focus on the design of individually incentive compatible mechanisms in an abstract setting, design problem under coalition formation, stability results for the economic models, invariant measures for diffusions, and disjoint principal-components method. The text then takes a look at critical observations on the labor theory of value and Sraffa's Standard Commodity and a generalization of Hotelling's solution. The manuscript examines an exploratory policy-oriented econometric model of a metropolitan area and the effect of simple specification error on the coefficients of "unaffected" variables, including distinctive features of the model and individual sectoral models. Temporal aggregation and econometric models; uniqueness of the representation of commodity-augmenting technical change; and technological change and growth performance in Taiwan agriculture are also discussed. The selection is a valuable source of data for economists and readers interested in quantitative economics.

Table of Contents

  • List of Contributors


    Ta-Chung Liu, 1914-1975

    Publications of Ta-Chung Liu

    Society, Politics, and Economic Development Revisited

    Disjoint Principal-Components Method

    Statistical Results

    Principal-Components Analysis within Groups



    On Global Stability of Some Stochastic Economic Processes: A Synthesis

    I. Introduction

    II. Basic Definitions

    III. Some Economic Examples

    IV. Invariant Measures for Diffusions

    V. Stability Results for the Economic Models


    The Design of Mechanisms for Efficient Allocation of Public Goods

    I. Introduction

    II. A Simple Method

    III. The Design Problem Under Coalition Formation

    IV. Examples of Quadratic Incentive Design Using (3.3) and (3.4)

    V. Externalities in Consumption

    VI. The Design of Individually Incentive Compatible Mechanisms in an Abstract Setting

    VII. The Design of Mechanisms for Efficient Accumulation of Public Capital

    VIII. Suggestions for Further Research and Summary


    Critical Observations on the Labor Theory of Value and Sraffa's Standard Commodity

    I. Introduction

    II. A Single Leontief-Sraffa Technique of Production

    III. A Pure Labor Theory of Value at Positive Profit Rates

    IV. Necessary and Sufficient Conditions for a Pure Labor Theory of Value in a Leonteif-Sraffa Technology

    V. Sraffa's Standard Commodity

    VI. Sraffa's "Real Wage" Measure and the Constant-Returnsto-Scale Assumption

    VII. A Pure Labor Theory of Neoclassical Production Functions

    VIII. Simultaneous Validity of the Pure Labor Theory and the Neoclassical Parable

    IX. A Few Fundamental Objections


    The Selection of Variables for Use in Prediction

    I. The Problem

    II. Hotelling's Solution

    III. A Geometric Interpretation of Hotelling's Solution

    IV. Solution for Two Sets of Fixed Variates

    V. Solution for Many Sets of Fixed Variates

    VI. The Multivariate Case

    VII. Concluding Remarks


    Regression When Each of Two Variables Is Dependent Some of the Time

    I. Introduction and Summary

    II. The Estimating Equation for β̂ in a Simple Regression

    III. The Estimating Equation for β̂ in a Multiple Regression

    IV. The Estimator of β̂

    V. Generalization to a Simultaneous Equation Model

    An Exploratory Policy-Oriented Econometric Model of a Metropolitan Area: Boston

    I. Introduction

    II. Distinctive Features of the Model

    III. Individual Sectoral Models

    IV. Simulations

    V. Conclusion

    Appendix: Variable Names


    The Effect of Simple Specification Error on the Coefficients of "Unaffected" Variables


    Temporal Aggregation and Econometric Models

    I. Introduction

    II. Time Aggregation and Structural Specification

    III. Time Aggregation of Forecasting Errors

    IV. Time Aggregation and Linear Regression

    V. Effects of Measurement Errors

    VI. Empirical Tests

    VII. Error Analysis

    VIII. Policy Responsiveness

    IX. Conclusion



    Recent Economic Fluctuations and Stabilization Policies: An Optimal Control Approach

    I. Introduction and Summary

    II. Experimental Design

    III. Dynamic Multiplier

    IV. The Optimal Control Solutions

    V. A Final Correction

    VI. An Algorithmic Variation


    Notes on Income Distribution in Taiwan

    I. Introduction

    II. Changes to Income Distribution, 1964-1975

    III. Distribution Among Groups by Occupation of Household Head, 1964-1975

    IV. Differences in Per Worker Product Between A and Νοη-A Sectors, and Disparities in Per Person Income Between Farmer and Nonfarmer Households

    V. Concluding Comments


    On the Uniqueness of the Representation of Commodity-Augmenting Technical Change

    I. Introduction

    II. Statement of the Problem

    III. The Main Theorem

    IV. Conclusion


    Technological Change and Growth Performance in Taiwan Agriculture, 1946-1975

    I. Introduction

    II. Growth Performance of the Agricultural Sector

    III. Choice of Techniques in Taiwan's Agriculture

    IV. Relative Income Shares and Technological Change in the Agricultural Sector

    V. Conclusions


    Exchange Rate, Interest Rate, and Economic Development

    I. Introduction

    II. Objections to Our Proposals and the Invalidity or Irrelevance of Their Arguments

    III. The Effects of Our Proposals on the Economic Development of Taiwan


Product details

  • No. of pages: 368
  • Language: English
  • Copyright: © Academic Press 1980
  • Published: January 1, 1980
  • Imprint: Academic Press
  • eBook ISBN: 9781483271613

About the Editors

L. R. Klein

M. Nerlove

S. C. Tsiang

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