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Statics Results (static + result)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting60%

Kinds of Statics Results

  • comparative static result
    		•

    Selected Abstracts

    Mode Choice, Commuting Cost, and Urban Household Behavior,

    JOURNAL OF REGIONAL SCIENCE, Issue 3 2005
    Joseph S. DeSalvo
    DeSalvo demonstrated that the urban model of Muth (1969) was robust to the extension to leisure choice. We show that the model is robust to mode choice as well. In addition, we derive the comparative static results that commuters choose higher speed modes for longer commutes, at higher wage rates, with greater tastes for housing, and with lower housing prices. Also, for a given distance commuted, we derive the comparative static result that commuters chose shorter duration commutes at higher wage rates. Whereas it is typically assumed that marginal commuting cost is positive and non-increasing with distance, we derive these results. Moreover, we derive the results that marginal commuting cost rises with an exogenous increase in housing price and falls with increased tastes for housing. We also explore the effects of exogenous commuting-cost changes on the endogenous variables of the model. The remaining comparative static results on housing consumption and location are qualitatively the same as in DeSalvo. [source]

    Relative risk aversion, relative prudence and comparative statics under uncertainty: The case of (,, ,)-preferences

    BULLETIN OF ECONOMIC RESEARCH, Issue 2 2004
    Thomas Eichner
    D81; D21 Abstract From the expected-utility approach, relative risk aversion being smaller than one and relative prudence being smaller than two emerge as preference restrictions that fully determine the optimal responses of decisions under uncertainty to certain shifts in probability distributions. We characterize the magnitudes of relative risk aversion and relative prudence in terms of the two-parameter, mean-standard deviation approach. We demonstrate that this characterization is instrumental in obtaining comparative static results in the two-parameter setting. We further relate our findings to the results in the expected-utility framework. [source]

    Domestic and Foreign Sales When Prices in Both Markets are Uncertain

    BULLETIN OF ECONOMIC RESEARCH, Issue 2 2003
    Ardeshir J. Dalal
    This paper obtains comparative static results for a firm that sells a single output domestically and abroad when prices in both markets are uncertain. Results are obtained for both constant absolute risk aversion and for Ross decreasing absolute risk aversion, using a diagrammatic analysis which exploits the properties of expected marginal utility contours. The results depend crucially on whether foreign and domestic sales are net substitutes or complements. The model is more complex and yields fewer unambiguous results , particularly in the case of substitutes , than when there is price uncertainty in only one market. [source]

    A Noncooperative Quantity-Rationing Theory of Transboundary Pollution

    JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 3 2010
    SUDHIR A. SHAH
    We study a remedy for the problem caused by international transfrontier pollution. Our results are derived from the analysis of a noncooperative game model of the determination of emissions in a quantity-rationing setting. We model the emission capping negotiations using the best response dynamic process and provide natural conditions under which the process has a unique and globally asymptotically stable stationary point. We then analyze the link between type profiles and the stationary points of the negotiation process to derive various comparative statics results and the type-contingent ordering of emission allocations. These results are used to study the investment strategies that nations can use prior to the negotiations in order to manipulate the equilibrium emission caps. [source]

    The Effects of Uncertainty on the Demand for Health Insurance

    JOURNAL OF RISK AND INSURANCE, Issue 1 2004
    atay Koç
    This article analyzes the effects of uncertainty and increases in risk aversion on the demand for health insurance using a theoretical model that highlights the interdependence between insurance and health care demand decisions. Two types of uncertainty faced by the individuals are examined. The first one is the uncertainty in the consumer's pretreatment health and the second is the uncertainty surrounding the productivity of health care. Comparative statics results are reported indicating the impact on the demand for insurance of shifts in the distributions of pretreatment health and productivity of health care in the form of first-order stochastic dominance, Rothschild,Stiglitz mean-preserving spreads, and second-order stochastic dominance. The demand for insurance increases in response to a Rothschild,Stiglitz increase in risk in the distribution of the pretreatment health provided that the health production function is in a special class and the price elasticity of health care is nondecreasing in the pretreatment health. Provided also that the demand for health care is own-price inelastic, the same conclusion is obtained when the uncertainty is about the productivity of health care. [source]

    A COMPLETE THEORY OF COMPARATIVE STATICS FOR DIFFERENTIABLE OPTIMIZATION PROBLEMS

    METROECONOMICA, Issue 1 2006
    M. Hossein Partovi
    ABSTRACT A new comparative statics formalism using generalized compensated derivatives is presented that, in contrast to existing methodologies, directly yields constraint-free semidefiniteness results for any differentiable, constrained optimization problem. The formalism provides a natural and powerful method of constructing comparative statics results, free of constraints and unrestricted in scope. New results on envelope relations, invariance conditions, rank inequalities and non-uniqueness are derived that greatly extend their utility and reach. The methodology is illustrated by deriving the comparative statics of multiple linear constraint utility maximization models and the principal-agent problem with hidden actions, both highly nontrivial and hitherto unsolved problems. [source]

    Dynamic inventory management with cash flow constraints

    NAVAL RESEARCH LOGISTICS: AN INTERNATIONAL JOURNAL, Issue 8 2008
    Xiuli Chao
    Abstract In this article, we consider a classic dynamic inventory control problem of a self-financing retailer who periodically replenishes its stock from a supplier and sells it to the market. The replenishment decisions of the retailer are constrained by cash flow, which is updated periodically following purchasing and sales in each period. Excess demand in each period is lost when insufficient inventory is in stock. The retailer's objective is to maximize its expected terminal wealth at the end of the planning horizon. We characterize the optimal inventory control policy and present a simple algorithm for computing the optimal policies for each period. Conditions are identified under which the optimal control policies are identical across periods. We also present comparative statics results on the optimal control policy. © 2008 Wiley Periodicals, Inc. Naval Research Logistics 2008 [source]

    Demand and Production Management with Uniform Guaranteed Lead Time

    PRODUCTION AND OPERATIONS MANAGEMENT, Issue 4 2005
    Uday S. Rao
    Recently, innovation-oriented firms have been competing along dimensions other than price, lead time being one such dimension. Increasingly, customers are favoring lead time guarantees as a means to hedge supply chain risks. For a make-to-order environment, we explicitly model the impact of a lead time guarantee on customer demands and production planning. We study how a firm can integrate demand and production decisions to optimize expected profits by quoting a uniform guaranteed maximum lead time to all customers. Our analysis highlights the increasing importance of lead time for customers, as well as the tradeoffs in achieving a proper balance between revenue and cost drivers associated with lead-time guarantees. We show that the optimal lead time has a closed-form solution with a newsvendor-like structure. We prove comparative statics results for the change in optimal lead time with changes in capacity and cost parameters and illustrate the insights using numerical experimentation. [source]

    Comparative Statics for a Decision Model with Two Choice Variables and Two Random Variables: A Mean,Standard Deviation Approach

    THE MANCHESTER SCHOOL, Issue 4 2001
    Gyemyung Choi
    The decision model with two choice variables and two random variables, an extension of Feder, or Just and Pope, is examined here. Under the mean,standard deviation framework we derive the comparative statics results concerning the effects of a change in the mean, variance and covariance of the random parameters. Some restrictions on the random variables and on the decision model are considered for unambiguous comparative statics predictions. [source]