Measurement and Modelling in Economics (eBook)

Front Cover 1
Measurement and Modelling in Economics 4
Copyright Page 5
Table of Contents 12
INTRODUCTION TO THE SERIES 6
DEDICATION 8
PREFACE 10
LIST OF CONFERENCE PARTICIPANTS 14
CHAPTER 1. INTRODUCTION 16
CHAPTER 2. EQUATIONS AND INEQUALITIES IN THE THEORY OF MEASUREMENT 26
1 Introduction 26
2 The Equation of Measurement 27
3 The Inequalities of Inequality Measurement 33
4 Applications 35
5 Characterisations of Particular Measures 38
References 38
Discussion 41
CHAPTER 3. NONPARAMETRIC TESTS OF ADDITIVE DERIVATIVE CONSTRAINTS 58
1 Introduction 58
2 The Basic Framework and Examples 62
3 The Regression Approach to Testing Derivative Constraints 66
4 Estimation of Departure–Regression Coefficients 72
5 Conclusion 84
Appendix 1: Estimator Formulae 86
Appendix 2: Assumptions 93
Appendix 3: Proofs 96
References 104
Discussion 108
CHAPTER 4. POVERTY INDICES AND DECOMPOSABILITY 124
REFERENCES 132
Discussion 133
CHAPTER 5. OPTIMAL UNIFORM TAXATION AND THE STRUCTURE OF CONSUMER PREFERENCES 146
1 Introduction 146
2 The "Deaton11 Condition 147
3 The Mirrlees Condition 151
4 A New Condition 156
5 Extensions 160
6 Concluding Remarks 161
References 161
Discussion 163
CHAPTER 6. AGGREGATE PRODUCTION FUNCTIONS AND PRODUCTIVITY MEASUREMENT: A NEW LOOK 172
1 Introduction 172
2 Aggregation in the Absence of Variations in Utilization 175
3 Utilization and the Measurement of Labour Input 178
4 Capital Measurement, Capacity Utilization and Unobserved Scrapping 183
5 Measurement Biases in Output 185
6 Empirical Results 189
7. Conclusions 206
Appendix 1:An Alternative Measure of Labour Utilization 209
Appendix 2:A method for measuring capacity utilization from surveys 212
References 215
Discussion 219
CHAPTER 7. A MODEL OF CAKE DIVISION WITH A BLIND PLAYER 234
1 Introduction 234
2 The Model in Continuous Form 238
3 Solving for an IC q(s) Function in the Mixed Strategy Case 241
4 The Model in Discrete Form 242
5 A Limit Theorem 248
6 Interpretations of the Model and Implicit Contract Theory 252
7 Concluding Remarks 255
APPENDIX 255
References 258
GAMBLERS AND LIARS 259
1 Introduction 259
2 Random Exclusion. 261
3 An Information–Revealing Probability Function 265
4 A Special Case 269
5 Bisk Aversion and the Probability of Exclusion 272
6 Concluding Remarks 275
References 276
Discussion 277
CHAPTER 8. THE ESTIMATION OF ENGEL CURVES 282
1 Introduction 282
2 Modelling the Rate of Consumption 284
3 The Relationship Between Purchases and Consumption 291
4 Nonlinear Least–Squares Estimation 296
5 A Fully–Specified Model 304
REFERENCES 319
Discussion 320
CHAPTER 9. ECONOMETRIC APPROACHES TO THE SPECIFICATIONAND ESTIMATION OFINTERTEMPORAL CONSUMER BEHAVIOUR 340
1 Introduction 340
2 Intertemporal Separability, Frisch Demands and Two—StageBudgeting 343
3 Restrictions and Properties of the Intertemporally Separable Models 358
4 Estimation from a Cohort Panel 371
5 Conclusions 380
REFERENCES 381
Discussion 386
CHAPTER 10. MORE MEASURES FOR FIXED FACTORS 396
Abstract 396
1 Introduction 396
2 Net Supply Functions 398
3 Relative Supplies 403
4 Aggregates Independent of Prices 405
5 Additive Homogeneity 409
6 A Hint of Rigour 412
APPENDIX A 416
APPENDIX B – PROCESSES 423
APPENDIX C – Market Production 425
REFERENCES 426
Discussion 427
CHAPTER 11. USE AND MISUSE OF SINGLE–CONSUMER RESULTS IN AMULTI–CONSUMER ECONOMY: THE OPTIMALITY OF PROPORTIONAL COMMODITY TAXATION 440
1 Introduction 440
2 Technical Assumptions 441
3 Community Preferences 442
4 Implicit Separability 444
5 The Optimality of Proportional Commodity Taxes 450
References 459
Discussion 461
AUTHOR INDEX 470
SUBJECT INDEX 474