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Showing papers in "Social Science Research Network in 1977"


Posted Content
TL;DR: In this paper, a population ecology model applicable to business related organizational analyses is derived by compiling elements of several theories, including competition theory and niche theory, to address factors not encompassed by ecological theory.
Abstract: Factors impacting the organizational structure of firms have been analyzed often utilizing organizations theory. However, several other theories and perspectives have been proposed as potential alternative means of analyzing organizational structure and functioning. While previous studies regarding organizational structure have utilized such perspectives as adaptation and exchange theory, few studies have utilized population ecology theory, thus leading to the current study. Although population ecology theory is most often used in the biological sciences, many of its principles lend well to organizational analysis. Due to internal structural arrangements (e.g. information constraints, political constraints) and environmental pressures (e.g. legal and fiscal barriers, legitimacy) of an organization, the inflexibility of an organization limits the firm's organizational analysis utilizing an adaptation perspective. The challenges and discontinuities associated with utilizing an ecological perspective are identified, including issues related to the primary sources of change (selection and adaptive learning) and related to differentiating between selection and viability. Utilizing competition theory and niche theory, several models for analyzing organizational diversity are incorporated to address factors not encompassed by ecological theory. By compiling elements of several theories, a population ecology model applicable to business related organizational analyses is derived. (AKP)

6,537 citations


Posted Content
TL;DR: In this article, the authors define family ties relevant to migration decisions and explain their effects on the probability of migration, on consequent changes in employment and earnings of family members, as well as on family integrity itself.
Abstract: This paper joins a few very recent attempts to analyze migration in the awareness of the family context. In contrast to most of them, my focus is exclusively on the family context. The paper defines family ties relevant to migration decisions and explains their effects on the probability of migration, on consequent changes in employment and earnings of family members, as well as on family integrity itself. Hopefully, the paper provides material for a missing chapter on family economics as well as an addition to the economics of labor supply arid of human capital formation.

1,465 citations


Posted Content
TL;DR: In this paper, the Strotz model is recast to include the control features missing in his formulation, and the individual's control problems are related to those that exist in agency relationships.
Abstract: Although many economists, most notably Strotz, have discussed dynamic inconsistency and precommitment, none have dealt directly with the essence of the problem: self-control. This paper attempts to fill that gap by modeling man as an organization. The Strotz model is recast to include the control features missing in his formulation. The organizational analogy permits us to draw on the theory of agency. We thus relate the individual's control problems with those that exist in agency relationships.

993 citations


Posted Content
TL;DR: In this paper, a model of capital structure and financial equilibrium was developed in order to provide more theoretical information about informational asymmetries, financial structure, and financial intermediation, and it was determined that the set of investment projects undertaken coincides with the set that would be undertaken if direct information transfer were possible.
Abstract: This essay details a model of capital structure and financial equilibrium, developed in order to provide more theoretical information about informational asymmetries, financial structure, and financial intermediation. Although direct information transfer about the abilities of the entrepreneur and/or the quality of the firm is uncertain, one publicly available signal is investment in the project by the entrepreneur. This model demonstrates how a firm's value increases with the share of the firm shared by the entrepreneur, and a firm's financial structure can be related to a project or firm's value. Other models cannot readily account for the presence of financial intermediaries, in part because they do not incorporate the role of asymmetric information -- with this model, financial intermediation (which provides a validation role for the credibility of information and has a means of recouping the cost of information gathering and legitimation) can be interpreted as a response to asymmetric information. Within this model, it is determined that the set of investment projects undertaken coincides with the set that would be undertaken if direct information transfer were possible. (CBS)

740 citations


Posted Content
TL;DR: In this article, the authors present an alternative source for formal structures by suggesting that myths embedded in the institutional environment help to explain the adoption of formal structures, and the observation that some formal practices are not followed in favor of other unofficial ones indicates that not all formal structures advance efficiency as a rationalized system would require.
Abstract: Argues that the formal structure of many organizations in post-industrial society dramatically reflect the myths of their institutional environment instead of the demands of their work activities. The authors review prevailing theories of the origins of formal structures and the main problem which those theories confront -- namely, that their assumption that successful coordination and control of activity are responsible for the rise of modern formal organization is not substantiated by empirical evidence. Rather, there is a great gap between the formal structure and the informal practices that govern actual work activities. The authors present an alternative source for formal structures by suggesting that myths embedded in the institutional environment help to explain the adoption of formal structures. Earlier sources understood bureaucratization as emanating from the rationalization of the workplace. Nevertheless, the observation that some formal practices are not followed in favor of other unofficial ones indicates that not all formal structures advance efficiency as a rationalized system would require. Therefore another source of legitimacy is required. This is found in conforming the organization's structure to that of the powerful myths that institutionalized products, services, techniques, policies, and programs become. (CAR)

551 citations


ReportDOI
TL;DR: In this article, the authors present a simple characterization of the sample selection bias problem that is also applicable to the conceptually distinct econometric problems that arise from truncated samples and from models with limited dependent variables.
Abstract: In this paper, I present a simple characterization of the sample selection bias problem that is also applicable to the conceptually distinct econometric problems that arise from truncated samples and from models with limited dependent variables. The problem of sample selection bias is fit within the conventional specification error framework of Griliches and Theil. A simple estimator is discussed that enables analysts to utilize ordinary regression methods to estimate models free of selection bias. The techniques discussed here are applied to re-estimate and test a model of female labor supply developed by the author. (1974). This paper is in three parts. In the first section, selection bias is presented within the specification error framework. In this section, general distributional assumptions are maintained. In section two, specific results are presented for the case of normal regression disturbances. Simple estimators are proposed and discussed. In the third section, empirical results are presented.

474 citations


Posted Content
TL;DR: In this article, the authors considered the formulation and estimation of simultaneous equation models with both discrete and continuous endogenous variables and proposed a statistical model that is sufficiently rich to encompass the classical simultaneous equation model for continuous endogenous variable and more recent models for purely discrete endogenous variables as special cases of a more general model.
Abstract: This paper considers the formulation and estimation of simultaneous equation models with both discrete and continuous endogenous variables. The statistical model proposed here is sufficiently rich to encompass the classical simultaneous equation model for continuous endogenous variables and more recent models for purely discrete endogenous variables as special cases of a more general model.

250 citations


Posted Content
David A. Graham1
TL;DR: In this article, the role of secondary markets in providing opportunities for redistributing risk is made transparent and the modifications necessary when such markets do not exist are suggested, and a conceptually correct procedure for determining whether a risky project passes the "potential Pareto improvement" welfare criterion which forms the normative basis of cost-benefit analysis is provided.
Abstract: In what follows we provide a conceptually correct procedure for determining whether a risky project passes the "potential Pareto improvement" welfare criterion which forms the normative basis of cost-benefit analysis. In this approach the role of secondary markets in providing opportunities for redistributing risk is made transparent and the modifications necessary when such markets do not exist are suggested.

238 citations


Posted Content
TL;DR: In this paper, the authors describe the behavior of a subset of prices and price indexes that is relevant to the theory of balance of payments adjustment, and the empirical evidence regarding these prices is then set out.
Abstract: The purpose of this paper is to describe the behavior of that subset of prices and price indexes that is relevant to the theory of balance of payments adjustment. The theoretical writings on the balance of payments may be viewed at this juncture as falling into two main groups -- the "standard" theories and the more recent monetary theories. Each of these is examined to determine the assumptions and predictions made about particular kinds of prices, and the empirical evidence regarding these prices is then set out. Although some assessment of the theories -- solely from the price aspect -- is offered, the emphasis is on the price structure and price behavior that ought to be captured in a satisfactory theory of the mechanisms of international adjustment. For pragmatic reasons, attention is placed mainly on the theory relating to exchange rate changes rather than on the explanation of adjustment with fixed exchange rates.

225 citations


Posted Content
TL;DR: In this article, the user of linear multiple regression is provided with a battery of diagnostic tools to determine which data points have high leverage or influence on the estimation process and how these possibly discrepant data points differ from the patterns set by the majority of the data.
Abstract: This paper attempts to provide the user of linear multiple regression with a battery of diagnostic tools to determine which, if any, data points have high leverage or influence on the estimation process and how these possibly discrepant data points differ from the patterns set by the majority of the data The point of view taken is that when diagnostics indicate the presence of anomolous data, the choice is open as to whether these data are in fact unusual and helpful, or possibly harmful and thus in need of modifications or deletion The methodology developed depends on differences, derivatives, and decompositions of basic regression statistics There is also a discussion of how these techniques can be used with robust and ridge estimators An example is given showing the use of diagnostic methods in the estimation of a cross-country savings rate model

138 citations


ReportDOI
TL;DR: In this paper, the authors investigated the general pattern of aircraft hijacking in the U.S. between 1361 and 1976, the reasons for the dramatic reduction in hijackings after 1972, and the costs and benefits of regulation instituted in 1973 that required mandatory preboarding searches of all passengers and carry-on luggage.
Abstract: This study attempts to explain the general pattern of aircraft hijacking in the U.S. between 1361 and 1976, the reasons for the dramatic reduction in hijackings after 1972, and the costs and benefits of regulation instituted in 1973 that required mandatory preboarding searches of all passengers and carry-on luggage. The main findings of the paper can be summarized as follows: (1) Increases in the probability of apprehension, the conditional probability of incarceration and the sentence are associated with significant reductions in aircraft hijackings in the 1961 to 1976 time period. These findings are based on two methods of estimating the rate of hijackings , a quarterly time series and the time or flight intervals between successive hijackings, and alternative estimates of the deterrence variables. (2) Regression estimates from the sample period ending in 1972 were used to forecast the number of additional hijackings that would have taken place between 1973 and 1976 if (a) mandatory screening had not been instituted and (b) the probability of apprehension (once the hijacking is attempted) had remained constant and equal to its 1972 value. Under these assumptions, there would have been between 41 and 67 additional hijackings compared to the 11 that actually occurred in the 1973 to 1976 period. (3) Although the mandatory screening program is highly effective in terms of the number of hijackings prevented, its costs appear enormous. The estimated net increase in security costs due to the screening program (which does not include the time and inconvenience costs to persons searched) is $194.24 million over the 1973 to 1976 period. This, in turn, translates into a $3.24 to $9.25 million expenditure to deter a single hijacking. Put differently, if the dollar equivalent of the loss to an individual hijacked passenger were in the range of $76,718 to $219,221, then the costs of screening would just offset the expected hijacking losses.

Journal ArticleDOI
TL;DR: The authors found that the response of trade flows to exchange rate changes is similar to the response to price changes measured in local currency, and that the length of the full response lags on exchange rates during the fixed-rate period tended to be shorter than for changes in prices.
Abstract: THE speed with which a country's imports and exports respond to exchange rate changes and inflation at home and abroad has important policy implications, but most of the work in this area has been somewhat conjectural. Some writers have pointed out that under a fixed exchange rate system, import and export flows may respond differently to price changes that result from changes in exchange rates than to those resulting from changes in national currency prices of exportable goods. Orcutt (1950, pp. 541-542) noted that trade flows may respond differently to small and temporary changes in prices than to large and fairly permanent changes, such as those caused by a devaluation. Among others, Leamer and Stem (1970, p. 34) interpreted Orcutt's point to mean that adjustment to large price changes stemming from devaluations will be more rapid than adjustment to small changes, but the long-run adjustment would be the same. Junz and Rhomberg (1973, p: 413) adduce reasons why the short-run response to a devaluation could be either faster than the response to a price change, because of the usually larger size of par value changes and the publicity that surrounds them, or slower, because of the large resource shifts necessary to correct large disequilibria that have accumulated over some period of time. The empirical evidence on the above suppositions appears inconclusive. Both T. C. Liu (1954) and Goldstein and Khan (1976) searched for evidence that trade flows responded differently to large than to small price changes. Although some of Liu' s results indicated the presence of a "quantum effect," Goldstein and Khan found that neither the size of the price elasticity nor the speed of adjustment seemed related to the size of the change in prices. Neither of these studies tested exchange -rate effects directly. The only direct test for different responses of trade flows to changes in prices and exchange rates is the 1973 study by Junz and Rhomberg. Using a pooled sample of 13 industrial countries, they concluded that the response to exchange rate changes is very similar to the response to price changes measured in local currency. The Junz-Rhomberg method, however, has certain shortcomings: they measure market-share changes, not trade flows directly; pooling the sample imposes the same parameters on each country in the pool; and measuring partial correlations with price and exchange rate variables lagged one period at a time yields no picture of the length or shape of the full response pattern through time. In this paper we estimate directly price and exchange rate response patterns, using quarterly import and export equations for six major industrial countries during the Bretton Woods period. Our results support two general conclusions: (a) the length of the full response lags on exchange rates during the fixed-rate period tended to be shorter than for changes in prices; and (b) the initial impact of exchange rate changes on trade flows tended to be greater than that of price changes.

Posted Content
TL;DR: In this paper, the effect of occupational licensing, restrictions on reciprocity, location specific investment in reputation and earnings on the interstate mobility of professionals is analyzed, focusing on the legal profession.
Abstract: This paper attempts to measure the effect of occupational licensing, restrictions on reciprocity, location specific investment in reputation and earnings on the interstate mobility of professionals. While 34 professional occupations are analyzed, special attention is focused on the legal profession. The comparatively low interstate mobility rate of lawyers may be due to state licensing and restrictions on reciprocity or to the investments made by lawyers to develop local reputations or to the investments made by lawyers in state specific law. Tests are conducted to distinguish among these three hypotheses.

Posted Content
TL;DR: In this paper, the authors examined the importance of capital market assumptions and developed a special continuous-time model which is applicable to the perfect capital market case and can also be used when there is no capital market at all (section IV).
Abstract: The object of this paper is to examine the importance of capital market assumptions. A special continuous-time model is developed in sections II-IV which is applicable to the perfect capital market case. It can also be used when there is no capital market at all (section IV). For 'reasonable' parameter values the optimal replacement rate (ratio of benefits to gross wage) appears to be less than 20% when capital markets are perfect but over 70% when they are non existent (i.e. no saving or dis-saving).

Posted Content
TL;DR: In this paper, it was shown that the optimal path is a near-feasible path to the stationary level of a single-state single-control problem, as long as the sustainable level is reached by a feasible control.
Abstract: Many infinite-horizon optimal control problems in management science and economics have optimal paths that approach some stationary level. Often, this path has the property of being the nearest feasible path to the stationary equilibrium. This paper obtains a simple multiplicative characterization for a single-state single-control problem to have this property. By using Green's theorem it is shown that the property is observed as long as the stationary level is sustainable by a feasible control. If not, the property is, in general, shown to be false. The paper concludes with an important theorem which states that even in the case of multiple equilibria, the optimal path is a nearest feasible path to one of them.

Posted Content
TL;DR: It was convenient for big cities to house prostitution in non-white, ethnic communities, but blacks and Chinese organized prostitution differently.
Abstract: It was convenient for big cities to house prostitution in non-white, ethnic communities, but blacks and Chinese organized prostitution differently.

Posted Content
TL;DR: In this paper, the authors discuss the protection of the human natural environment, tourism in Jelenia Gora region and problems of business functioning, and divide the topics taken can be divided into three study groups.
Abstract: Kola naukowe prowadzą badania na zlecenie instytucji i przedsiebiorstw. Wśrod podejmowanej tematyki mozna wyroznic trzy grupy badawcze: ochrona naturalnego środowiska czlowieka, turystyka w Kotlinie Jeleniogorskiej oraz problemy funkcjonowania jednostek gospodarczych.Scientific circles conduct research on behalf of institutions and companies. Topics taken can be divided into three study groups: the protection of the human natural environment, tourism in Jelenia Gora region and problems of business functioning.

Posted Content
TL;DR: In this article, a modification of Broyden's method for finding a zero of n nonlinear equations in n unknowns when analytic derivatives are not available is introduced, and the method retains the local Q-superlinear convergence of Broden's method and has the additional property that if any or all of the equations are linear, it locates a zero in n+1 or fewer iterations.
Abstract: We introduce a modification of Broyden's method for finding a zero of n nonlinear equations in n unknowns when analytic derivatives are not available. The method retains the local Q-superlinear convergence of Broyden's method and has the additional property that if any or all of the equations are linear, it locates a zero of these equations in n+1 or fewer iterations. Limited computational experience suggests that our modification often improves upon Eroyden's method.

Posted Content
TL;DR: In this article, the Mises-Kirzner view of monopoly price can exist on the free market, and a necessary part of its definition is a purposeful withholding of resources on the part of the monopolist.
Abstract: There are two views of monopoly within what might be called the broad Austrian camp. According to the Mises-Kirzner view, monopoly price can exist on the free market, and a necessary part of its definition is a purposeful withholding of resources on the part of the monopolist. Rothbard, however, defines monopoly as an exclusive government grant of trading privileges, and, as such, finds it incompatible with market freedom.In this paper I shall criticize the former view, (I) by considering alternative interpretations to monopolistic withholding, and (2) by considering several inconsistencies on the part of its proponents.

Posted Content
TL;DR: The resilience of the power to pardon offenders is a remarkable phenomenon, in view of some seemingly powerful reasons for the disappearance of this institution as discussed by the authors, which are both ideological and practical in character.
Abstract: The resilience of the power to pardon offenders is a remarkable phenomenon, in view of some seemingly powerful reasons for the disappearance of this institution. These reasons are both ideological and practical in character. The ideological grounds derive from the fact that the pardoning power appears to be an archaic survival fan earlier era, during which the State was governed by an omnipotent ruler, who might have an occasional urge to demonstrate his benevolent disposition. This seems something of an anomaly in a twentieth century constitutional democracy having a commitment-at least in principle-to a delicate separation of powers designed to ensure the independence of the judiciary. This independence would appear to be threatened by vesting in a non-judicial authority the power to pardon offenders duly convicted and sentenced in the course of a judicial process. It is no coincidence that the ideological controversy regarding the desirability of the pardoning power reached its peak during the eighteenth century,' when the groundwork of much of our prevailing political theory was being laid. Thus while Montesquieu believed that there was room-at least under a monarchical system-for the institution of clemency, Beccaria advocated the total abolition of this institution, a path which was followed in France for a number of years in the wake of the revolution of 1789.

Posted Content
TL;DR: Malloy et al. as mentioned in this paper explored opportunities for the comparative analysis of state-group relations in Latin America and proposed an approach to compare corporative structures cross-nationally.
Abstract: In James M. Malloy, ed., Authoritarianisrn and Corporatism in Latin America. Pitsburgh: University of Pittsburgh Press, 1977. DAVID COLIJER and RUTH BERINS COLLIER Who Does What, to Whom, and How: Toward a Comparative Analysis of Latin American Corporatism Recent research on Latin American politics has placed substantial emphasis on the authoritarian relationships between national states and interest groups characteristic of the region. Particular attention ‘has been paid to the limitation of pluralism and to “corporative” patterns of interest representation as distinctive features of the systems_ of state-group relations that have emerged. However, though many theo- retical statements and descriptive case studies have qexamined these themes; little cross-national research has systematically compared state- group relations across a number of cases. Yet systematic comparison can yield important benefits, both as a means of sharpening conceptu- alizations and ultimately as an approach to testing propositions about the emergence of different types of state-group relations. This chapter explores opportunities for the comparative analysis of stategroup relations in Latin America. It first evaluates the contribu- tion that quantitative cross-national research on national political regimes has made to the analysis of interest representation. Building on available conceptual discussions of corporatism, it proposes an approach to comparing corporative structures cross-nationally. It then argues that though the examination of corporative structures is an important starting point, it is essential to consider astwell the differing relationships of economic and political power that are ratified or consolidated by means of these structures. The answers to the question, ‘fWho does what, to whom, and how?” may be used for identifying a series of dimensions in terms of which these relationships can be compared. An‘ examination of the answers“ to these questions with reference to one major aspect of state-group'relations—the relationship between the state and organized labor in the, modern sector-—is pre- sented to illustrate the wide variety of uses to which corporative 489

ReportDOI
TL;DR: In this article, the authors investigated whether there is a meaningful distinction among types of job separations and whether the nature of the separation is an important determinant of the consequences of job mobility.
Abstract: Our paper uses the wealth of information available in the NLS to expand on previous work in several ways. First, we investigate whether there is a meaningful distinction among types of job separations. Traditional analysis has categorized job separations as either employee-initiated (quits) or employer-initiated (layoffs). We question whether this dichotomy is correct. The National Longitudinal Survey data is especially useful for studying the relationship between wages and the probability of quitting. Most theoretical work on the determinants of job separation concludes that the probability of changing jobs is related to a reservation wage. The NLS data set allows us to test this relationship since it includes information on the individual's "hypothetical wage"-- that is, the wage required to induce the individual to accept another job. Given this information, we are able to compare the effects of different measures of the individual's price of time (e.g. the current wage and the reservation wage) on the probability of quitting. In addition, we analyze the role of human capital variables, job related characteristics and family background in the determination of job mobility. The analysis of the determinants of job separations in the cross-section naturally leads to an investigation of the relationship between previous separations and future separations. In particular, we consider whether such a relationship exists, and whether the nature of previous separations is a good predictor of the nature of future separations. Finally, we analyze the effects of job mobility on earnings and on job satisfaction. We distinguish between the immediate gains to mobility and the future gains to mobility, and also consider whether the nature of the separation is an important determinant of the consequences of job mobility.

Posted Content
TL;DR: In this article, the authors evaluated the joint effect of two factors on the behavior of common stock prices: the decision to switch the method of costing inventory to LIFO, and the sign of the expected growth in EPS before the announcement of the change was made.
Abstract: Using two samples (one as an experimental and one as a control), the authors evaluated the joint effect of two factors on the behavior of common stock prices. These factors were (1) the decision to switch the method of costing inventory to LIFO, and (2) the sign of the expected growth in EPS before the announcement of the change was made. The findings in this article appear to support the hypothesis that the decision to change the accounting method of costing inventory to LIFO is given different interpretations by the securities market, depending on the sign of expected growth in EPS. The significance of the joint effect of the two factors and the existence of differential reaction to the accounting change suggests that intervening variables mediate between accounting-based information and the securities market in processing of the signals provided by such information. Different intervening variables may alter the interpretation of the same accounting event.

Journal ArticleDOI
TL;DR: In this article, the Bariloche Model is used for the first time in the context of large-scale econometric development modelling and the implications of the basic needs approach to develop policies are analyzed.
Abstract: The concept of basic needs is today at the center of many discussions about development and the international order Some international organizations are rethinking their prior evaluation of development policies based largely on aggregate economic output, in particular, the welfare of the very poor, are increasingly brought onto the agenda The purpose of this article is to address these questions using as a basis the Bariloche Model This model studies development strategies oriented towards the satisfaction of basic needs of the population of different regions of the world, and it does so for the first time in the context of large scale econometric development modelling I will discuss the results of the model and then analyze further the implications of the basic needs approach to develop policies, and to implications for the international economic order

Posted Content
TL;DR: In this article, the authors emphasize and illustrate two basic points: (1) the private costs of unemployment vary substantially and are often extremely low, and this low private cost is an important cause of the permanently high unemployment rate in the United States.
Abstract: This short note emphasizes and illustrates two basic points: (1) The private costs of unemployment, i.e., the costs borne by the unemployed themselves, vary substantially and are often extremely low. This low private cost is an important cause of the permanently high unemployment rate in the United States. (2) The social costs of unemployment, i.e., the costs of unemployment to the nation as a whole regardless of how they are distributed, must be judged by considering the specific policy by which a worker would be reemployed. It is wrong to regard unemployment as either without cost (because the unemployed enjoy the opportunity for job search and leisure) or as having a cost equal to lost output. Examples are given to show that output may overstate or understate true social cost, depending on the options available for reemployment.

Posted Content
TL;DR: In this paper, the authors examined the impacts of five parasitic infections: schistosomiasis (the focus of the study), hookworm, scariasis, trichuriasis, and strongyloidiasis.
Abstract: Excerpt from introduction: Our earlier study sought to assess the quantitative impact of parasitic diseases on various measures of labor productivity.' The current study extends the previous analyses by examining the hypothesis that productivity is affected with a time lag that reflects the effects on workers of an extended period of infection. In our previous work we examined the impacts of five parasitic infections: schistosomiasis (the focus of the study), hookworm, scariasis, trichuriasis, and strongyloidiasis. In the rural labor productivity portion of the study, a total of 458 workers on the Geest Company's Cul-de-Sac Valley banana estate on St. Lucia, West Indies, were tested for the presence of these infections. Additional personal attribute data, obtained from household surveys and on-the-job interviews, as well as the infection data were matched with information on the workers' earnings, daily attendance, and, in some instances, physical productivity. Multiple regression analysis was employed in an attempt to infer partial causal relationships between the presence of parasitic infections and several measures of output for these banana estate workers.

Posted Content
TL;DR: In this article, the authors consider a hypothetical experiment designed to give meaning to the concept of one "type" of utility function being "preferred" to another, and they find that there is a significant sense in which one set of preferences (and the expected consumption bundle associated with it) can be said to be preferred to another set of preference functions.
Abstract: This note considers a hypothetical experiment designed to give meaning to the concept of one "type" of utility function being "preferred" to another. In the course of presenting the outlines of such a conceptual experiment, the terms type and preferred will be defined. The conclusion-albeit at a quite abstract level-is that while there exists a class of preferences that are indeed non-comparable, as contemporary economic theory holds, there also exists a class of preferences that can be compared with each other. With respect to the latter class we find that there is a significant sense in which one set of preferences (and the expected consumption bundle associated with it) can be said to be preferred to another set of preferences (and the expected consumption bundle associated with it). That being the case, it becomes meaningful to talk about the efficiency or inefficiency of allocating resources to shaping preferences.'

Posted Content
TL;DR: In this article, the effect of the riskiness of the asset mix and the relative amount of deposits and capital on the potential liability of an institution with deposits insured by a third party is analyzed.
Abstract: This paper provides a formal setting for the analysis of the capital adequacy of an institution with deposits insured by a third party. An insured depositor has a claim against the institution and a contingent claim against the insurer. This paper analyzes the effect of the riskiness of the asset mix and the relative amount of deposits and capital on the potential liability of the insurer. It shows that an increase in asset risk, holding value constant, increases the value of equity and raises the potential liability of the insurer.

Posted Content
TL;DR: NL2SOL as discussed by the authors is a modular program for solving the nonlinear least-squares problem that incorporates a number of novel features, such as the double-dogleg scheme of Dennis and Mei together with a special module for assessing the quality of the step thus computed.
Abstract: NL2SOL is a modular program for solving the nonlinear least-squares problem that incorporates a number of novel features. It maintains a secant approximation S to the second-order part of the least-squares Hessian and adaptively decides when to use this approximation. We have found it very helpful to "size" S before updating it, something which looks much akin to Oren-Luenberger scaling. Rather than resorting to line searches or Levenberg-Marquardt modifications, we use the double-dogleg scheme of Dennis and Mei together with a special module for assessing the quality of the step thus computed. We discuss these and other ideas behind NLZSOL and briefly describe its evolution and current implementation.

ReportDOI
TL;DR: In this paper, the authors explore interrelationships between various aspects of children's physical health and their intellectual development and attempt to answer the important question of whether poor health retards the cognitive development of children.
Abstract: The basic purpose of our research is to contribute to an understanding of the joint determination of children's cognitive development and their health. Although there is a large literature concerning the first of these issues, there has been little work on the latter. We also explore interrelationships between various aspects of children's physical health and their intellectual development and, in particular, attempt to answer the important question of whether poor health retards the cognitive development of children.