Richard Venniker

Bio: Richard Venniker is an academic researcher from Tinbergen Institute. The author has contributed to research in topics: General equilibrium theory & Short run. The author has an hindex of 5, co-authored 5 publications receiving 61 citations.

Equal rules or equal opportunities? Demystifying level playing field

Abstract: Pleas for a level playing field, for instance in international trade, are often not well-founded. This is because it is not exactly clear what a 'level playing field' means. But even if it would be clear what the plea would imply, a level playing field is not always desirable from an economic perspective. To clarify the meaning of 'a level playing field' we introduce two specifications of the concept. First, a rules-based level playing field, which means that all firms in a market are treated the same in equal circumstances with regard to legislation, taxes, subsidies etcetera. Second, an outcome-based level playing field, which means that all firms in a market have the same expected profit. This means that, in case firms are heterogeneous, the government compensates the disadvantaged firms (for instance with subsidies). The first conclusion in the report is that a rules-based level playing field is desirable, although there are reasons to deviate from this assumption. The second conclusion is that it is never desirable to pursue a fully outcome-based level playing field, but that it may be desirable to level the playing field to a certain extent in the case of market failure. In case of market failure it is preferable to use symmetric rules (equal for all firms), in stead of asymmetric rules (favouring some firms). The report introduces a framework with questions that can help policymakers analyse level playing field issues. The framework makes clear that in general one cannot tell whether a plea for a 'level playing field' is justified or not. It is necessary to focus on the policy issues hidden behind the plea, i.e. policy issues concerning market failure, dynamic efficiency, redistribution of income and differences in preferences between countries.

Equilibrium adjustment of disequilibrium prices

Abstract: In this chapter a price and quantity adjustment process is described to obtain a Walrasian equilibrium in the economy. At a Walrasian equilibrium price system the supply is equal to the demand for every commodity. For an arbitrary price system it holds that the total excess demand for some commodities is negative, while for other commodities it is positive. A Dreze equilibrium can then be obtained by rationing in the markets for the non-numeraire commodities.

Equilibrium adjustment of disequilibrium prices

Abstract: We consider an exchange economy in which price rigidities are present. In the short run the non-numeraire commodities have a exible price level with respect to the numeraire commodity but their relative prices are mutually fixed. In the long run prices are assumed to be completely exible. For a given price level and fixed relative prices, markets can be equilibrated by means of quantity rationing on demand and supply. Keeping markets in equilibrium through rationing, we provide an adjustment process in prices and quantities converging from a trivial equilibrium with complete demand rationing on all non-numeraire markets to a Walrasian equilibrium. Along the path initially all relative prices are kept fixed and the price level is increased. Rationing schemes are adjusted to keep markets in equilibrium. Doing so the process reaches a short run equilibrium with only demand rationing and no rationing on the numeraire and at least one of the other commodities. The process allows for a downward price adjustment of non-rationed non-numeraire commodities and reaches a Walrasian equilibrium in the long run.

The transition from a Drèze equilibrium to a Walrasian equilibrium

Abstract: In this paper a price and quantity adjustment process in continuous time is considered for an economy facing price rigidities. In the short run prices are assumed to be completely fixed and the markets are cleared by quantity adjustments until a fixed price equilibrium is reached where every market is typically characterized by either supply rationing or demand rationing. Using only standard assumptions on the primitive concepts of the economy and a non-degeneracy condition, it is shown that the process indeed converges to a fixed price equilibrium for the initially given prices in the short run. In the long run prices are assumed to move upwards in the case of demand rationing on a market and downwards when supply rationing occurs, while markets are kept in equilibrium by infinitesimal quantity adjustments. Again, under standard assumptions on the primitive concepts of the economy and a non-degeneracy condition, the process is shown to reach a Walrasian equilibrium in the long run. A simplicial algorithm has been developed to make the study of the price and quantity adjustment process possible and the accuracy of this algorithm is discussed.

Handbook of Industrial Organization

Abstract: Handbook of industrial organization , Handbook of industrial organization , کتابخانه دانشگاه امام صادق(ع)

The market for 'lemons': quality uncertainty and the market mechanism

Abstract: This paper examines the allocation of credit in a market in which borrowers have greater information concerning their own riskiness than do lenders. It illustrates that (1)the allocation of credit is inefficient and at times can be improved by government intervention, and (2) small changes in the exogenous risk-free interest rate can cause large (discontinuous) changes in the allocation of credit and the efficiency of the market equilibrium. These conclusions suggests a role for government as the lender of last resort.

Handbook of income distribution

Abstract: Introduction. Income distribution and Economics (A.B. Atkinson, F. Bourguignon). Social justice and distribution of income (A.K. Sen). Measurement of inequality (F.A. Cowell). Three centuries of inequality in Britain and America (P.H. Lindert). Historical perspectives on income distribution: The case of Europe (C. Morrisson). Empirical evidence on income inequality in industrialized countries (P. Gottschalk, T.M. Smeeding). Income poverty in advanced countries (M. Jantti, S. Danziger). Theories of the distribution of earnings (D. Neal, S. Rosen). Theories of persistent inequality and intergenerational mobility (T. Piketty). Macroeconomics of distribution and growth (G. Bertola). Wealth inequality, wealth constraints and economic performance (P. Bardhan, S. Bowles and H. Gintis). The distribution of wealth (J.B. Davies, A.F. Shorrocks). Redistribution (R. Boadway, M. Keen). Income distribution and development (R. Kanbur). Income distribution, economic systems and transition (J. Flemming, J. Micklewright).

Do extra-curricular activities in schools improve educational outcomes? A critical review and meta-analysis of the literature

Abstract: Secondary schools tend to sponsor a large number of extra-curricular activities (ECA) yet little is known about their contribution to students’ educational outcomes. This meta-analysis aims to determine what it is about ECA participation that supports positive educational outcomes. Furthermore, this study challenges the theoretical assumptions about the benefits of participation in ECA. 29 studies (all except for one based on data collected in the United States) met the search criteria for inclusion in the analysis. Most effect sizes on academic achievements yielded from non-specific ECA, academic clubs and journalism were small, as were participation in performing arts, sports and leadership activities on a range of educational outcomes. Although the results show associations between participation in ECA and educational outcomes, causal effects could not be confirmed. It is concluded that the lack of evidence supporting the causal effects, and thus the common theoretical assumptions about the effects of ECA on educational outcomes, is due to methodology limitations in these studies.