Showing papers in "Economics Letters in 1988"

TL;DR: In this paper, the authors examined bias in dynamic models with fixed effects where both the number of time series observations and cross-sectional replications are small, and the formula bias estimate was in line with that in published Monte Carlo studies.

TL;DR: In this article, the authors used a nonparametric frontier approach to measure the technical efficiency of a sample of U.S. banks and found that most of this inefficiency is due to pure technical inefficiency rather than scale inefficiency.

TL;DR: In this article, the authors define a solution concept for the extended game (in which talk is followed by play) that is intermediate between Nash equilibrium and rationalizability, in some games their solution concept implies a Nash outcome, while in others it does not.

TL;DR: In this paper, the authors re-examine the question of a high correlation by considering the time-series relationship between national saving and domestic investment rates in the U.S., using newly-developed co-integration techniques.

TL;DR: This paper presented a simple general equilibrium model in which the only non-Walrasian feature is imperfect competition in the goods market, and the model is shown to exhibit various Keynesian characteristics.

TL;DR: In this paper, a Lagrange multiplier test is proposed for spatial autocorrelation in the error term of the equations in a seemingly unrelated regression (SUR) model, which extends approaches developed for single equation models to the SUR context.

TL;DR: In this article, the authors examined a challenged horizontal merger known ex post to be anticompetitive and found no evidence that the merger was anticcompetitive, which casts doubt on the ability of event studies to detect antic-competitive mergers.

TL;DR: In this paper, the authors analyse a Bertrand oligopoly game where firms can choose between selling strategies: (i) price announcements; (ii) price announcement and offers to price match; and show that only the monopoly price Nash equilibrium satisfies iterative dominance.

TL;DR: In this article, the determinants of self-employment among married women were examined and the impact of selectivity bias on the earnings of wage/salary and self-employed workers was assessed.

TL;DR: The authors distinguishes three nested long run constraints on the U.S. Federal debt, tests and rejects the strongest of the three, and illustrates how hazardous it is to base inference regarding unit roots on misspecified test regressions.

TL;DR: In this article, a large, positive and statistically significant effect of patent statistics on firm market values was found, and these effects were robust to a variety of alternate specifications of the underlying model and patent data provided economically meaningful information on the scope and relative effectiveness of a firm's R&D program.

TL;DR: In this paper, a new bargaining solution, called the equal-loss solution, was introduced, which equalizes across agents the losses from the ideal point, and two characterizations of the solution are presented by formulating axioms specifying how bargaining solutions should respond to changes in the feasible set and the ideal points.

TL;DR: In this article, the Japanese cabinet has acted opportunistically rather than manipulatively to call an election in the Japanese parliament, where the prime minister decides the timing of the election by political reasons and manipulates an economy to have a boom in time.

TL;DR: The theory of auctions suggests that, under certain conditions, seemingly different methods for auctioning a single object will result in the same expected price as discussed by the authors, and this result extends quite easily to the case of more than one object.

TL;DR: In a repeated oligopoly with differentiated products and firms following trigger strategies, quantity competition leads to a less efficient outcome than price competition as discussed by the authors, which contrasts with the repeated duopoly result, where price competition is less efficient under certain conditions.

TL;DR: In this article, the authors analyzed an n-person bargaining game and showed that there exists a unique perfect equilibrium outcome for the n-player bargaining game, which is the only known equilibrium outcome.

TL;DR: In this article, it is argued that for a more meaningful test of Wagner's law allowance must be made in regard to prevalence of peace and stability in the United States, using six different versions and employing both nominal and real data from ten states of the USA.

TL;DR: The authors showed that self-selection of job changers may cause longitudinal estimation of wage gaps to be inconsistent, and used cross-sectional regression analyses of wage gap may be biased by omission of unobserved worker characteristics.

TL;DR: In this article, rural urban migration equalizes rural incomes to the expected incomes of those in the urban unemployment pool, while urban unemployment is a process of waiting for modern sector jobs.

TL;DR: In this article, the authors compare sampling properties of a pre-test estimator of the disturbance variance in a linear regression after a pre test for a linear hypothesis on coefficients with those of an improved estimator.

TL;DR: In this article, an estimator of the degrees of freedom parameter is provided, which is used to provide estimates, computable from the data, of the usual unbiased and minimum mean square error estimators of the error variance and of their variances.

TL;DR: In this article, a stable and predictable exchange rate policy may have some gain in terms of real and product wages and lower employment in open economies with strong unions, where exchange rate variability is shown to influence wage formation.

TL;DR: An observation-by-observation data transformation is derived for heteroscedastic error components regression models that permits generalized least squares or feasible GLS estimates to be obtained from an ordinary least squares program.

TL;DR: In this paper, the authors show that when optimizing agents use their memories in a non-linear cobweb model, it will be asymptotically stable: instability and chaos cannot occur.

TL;DR: Bresnahan's econometric technique for estimating the type of pricing behavior is applied to an early antitrust case as discussed by the authors, and the empirical results are plausible and suggest that it may be appropriate to use this technique in future antitrust cases.

TL;DR: It has long been recognized that margin requirements, through leverage, affect the volume of speculative activity and that controlling speculative behavior is one approach to inhibiting overvaluation in stocks and reducing the potential for a precipitate price decline fueled by the involuntary selling that stems, for example, from margin calls as discussed by the authors.

TL;DR: In this article, the threat of entry, sequential entry and cost of production are taken into account in a duopoly game in quality within the vertical product differentiation framework, and a multi-stage perfect equilibrium solution is shown to exist and is fully characterized.

TL;DR: Using the Rothschild-Stiglitz notion of mean-preserving spreads, this article showed that, when "me-first" rules are not enforced, increases in risk can make bankruptcy less likely.

TL;DR: In this paper, the authors give an analytic solution to the problem of when to stop production in resource extraction, and they show that the shutdown decision is irreversible and that price and production follow geometric diffusion processes while extraction costs are fixed.

TL;DR: In this article, the first auction bid is less than would be bid were there no later auctions, which appears to be an attempt to deceive the opponents for possible gains in later auctions.