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Equilibrium Models (equilibrium + models)
Kinds of Equilibrium Models Selected AbstractsDRS. MUTH AND MILLS MEET DR. TIEBOUT: INTEGRATING LOCATION-SPECIFIC AMENITIES INTO MULTI-COMMUNITY EQUILIBRIUM MODELS,JOURNAL OF REGIONAL SCIENCE, Issue 1 2010Dennis Epple ABSTRACT We consider the problem of integrating spatial amenities into locational equilibrium models with multiple jurisdictions. We provide sufficient conditions under which models that assume a single housing price in each community continue to apply in the presence of location-specific amenities that vary both within and across communities. If these conditions are satisfied, the models, estimation methods, and results in Epple and Sieg (1999) are valid in the presence of (potentially unobserved) location-specific amenities. We also show how to construct sufficient statistics that capture location specific spatial heterogeneity. We apply these techniques using data from the Pittsburgh metropolitan area. We find that these amenity measures capture proximity to important local employment centers as well as heterogeneity in school quality within a given school district. [source] Decisions on Production and the Behaviour of Savers in Recent General Equilibrium ModelsMETROECONOMICA, Issue 3 2000Fabio Ravagnani Modern general equilibrium theory faces notorious difficulty in extending the analysis of production to economies without complete forward markets, since at the ,initial date' the owners of any firm will typically disagree about the choice of the production plan. This paper examines the main approaches to the problem, with the specific aim of verifying whether they allow a satisfactory account of the interplay between firms and savers. It is argued that the theory oscillates between assumptions that may prove incompatible with savers' rationality, and hypotheses that prevent this shortcoming but render the formation of production decisions quite hard to explain. [source] Nonlinear Pricing in General Equilibrium Models with Joint ProductionTHE JAPANESE ECONOMIC REVIEW, Issue 1 2001Kazuya Kamiya This paper considers general equilibrium models of public utilities which produce either public goods or private goods. In the models, cases of increasing returns are not a priori excluded. The products of the public utilities and their costs are allocated to the consumers according to a rule that is dependent on information communicated to the public utilities. We show that if the public utilities follow a nonlinear pricing rule, the equilibrium allocations are always Pareto-optimal. Moreover, the message space is of finite dimensions. JEL Classification Numbers: D51, D60, H41, H42. [source] The stability of stars of triangular equilibrium plate elementsINTERNATIONAL JOURNAL FOR NUMERICAL METHODS IN ENGINEERING, Issue 7 2009E. A. W. Maunder Abstract Equilibrium models for finite element analyses are becoming increasingly important in complementary roles to those from conventional conforming models, but when formulating equilibrium models questions of stability, or admissibility of loads, are of major concern. This paper addresses these questions in the context of flat plates modelled with triangular hybrid elements involving membrane and/or flexural actions. Patches of elements that share a common vertex are considered, and such patches are termed stars. Stars may be used in global analyses as assemblies of elements forming macro-elements, or in local analyses. The conditions for stability, or the existence and number of spurious kinematic modes, are determined in a general algebraic procedure for any degree of the interpolation polynomials and for any geometric configuration. The procedure involves the determination of the rank of a compatibility matrix by its transformation to row echelon form. Examples are presented to illustrate some of the characteristics of spurious kinematic modes when they exist in stars with open or closed links. Copyright © 2008 John Wiley & Sons, Ltd. [source] False metamorphic events inferred from misinterpretation of microstructural evidence and P,T dataJOURNAL OF METAMORPHIC GEOLOGY, Issue 4 2008R. H. VERNON Abstract Geometrical relationships involving inclusions and partial inclusions in metamorphic microstructures can be inadequate for inferring an order of crystallization and hence a metamorphic reaction. Unique spatial and/or chemical relationships need to be defined for mineral inclusions, in the context of a reference paragenesis, commonly the matrix assemblage. Corona microstructures are reliable indicators of metamorphic reactions, but require considerable care when used to infer reactions or changes in P,T conditions, owing to kinetic problems, as well as to changes in the effective reaction volume during changes across relatively broad P,T stability fields of assemblages. Mineral equilibria models, most commonly implemented through P,T pseudosections, may allow the order in which different minerals become stable along a given P,T path to be inferred. However, the order in which two minerals become stable may be different from the order in which two grains of these minerals nucleate. Furthermore, such diagrams cannot make predictions about which minerals will form porphyroblasts and which minerals will form inclusions in porphyroblasts. An evaluation of three examples from the Australian Proterozoic shows that modelling, in combination with inclusion-host relationships, is a powerful tool for understanding the metamorphic evolution of a rock, but involves considerable uncertainty. [source] Global Trade Models and Economic Policy Analyses: Relevance, Risks and Repercussions for AfricaDEVELOPMENT POLICY REVIEW, Issue 2 2008Hakim Ben Hammouda Computable general equilibrium models are widely used for trade policy analyses and recommendations. There is, however, increasing discomfort with the use of these models, especially in Africa. This article demonstrates that the results of several such studies of the impact of trade reforms in Africa differ drastically in terms of both magnitude and direction, failing to take account of key features of African economies. It also outlines potential consequences of the misuse of CGE models for policy evaluation and suggests pitfalls to be avoided. [source] Comparing tropical forest tree size distributions with the predictions of metabolic ecology and equilibrium modelsECOLOGY LETTERS, Issue 5 2006Helene C. Muller-Landau Abstract Tropical forests vary substantially in the densities of trees of different sizes and thus in above-ground biomass and carbon stores. However, these tree size distributions show fundamental similarities suggestive of underlying general principles. The theory of metabolic ecology predicts that tree abundances will scale as the ,2 power of diameter. Demographic equilibrium theory explains tree abundances in terms of the scaling of growth and mortality. We use demographic equilibrium theory to derive analytic predictions for tree size distributions corresponding to different growth and mortality functions. We test both sets of predictions using data from 14 large-scale tropical forest plots encompassing censuses of 473 ha and > 2 million trees. The data are uniformly inconsistent with the predictions of metabolic ecology. In most forests, size distributions are much closer to the predictions of demographic equilibrium, and thus, intersite variation in size distributions is explained partly by intersite variation in growth and mortality. [source] Fiscal Policy Coordination and International TradeECONOMICA, Issue 294 2007TORBEN M. ANDERSEN While assertions are often made that non-cooperative fiscal policies suffer a contractionary bias, general equilibrium models have shown that the bias is unambiguously expansionary. This paper argues that the latter result relies on a particular and critical way of modelling international trade, and that under a more plausible trade structure, it is possible that fiscal policy is insufficiently expansionary in the non-cooperative case. Non-cooperative policy-making thus implies that fiscal policies are used too little if they expand private employment, and too much if they contract private employment. Inefficiencies in non-cooperative fiscal policies worsen when product markets become more integrated. [source] The Lag from Monetary Policy Actions to Inflation: Friedman RevisitedINTERNATIONAL FINANCE, Issue 3 2001Nicoletta Batini This paper updates and extends Friedman's (1972) evidence on the lag between monetary policy actions and the response of inflation. Our evidence is based on UK and US data for the period 1953,2001 on money growth rates, inflation and interest rates, as well as annual data on money growth and inflation. We reaffirm Friedman's result that it takes over a year before monetary policy actions have their peak effect on inflation. This result has persisted despite numerous changes in monetary policy arrangements in both countries. Similarly, advances in information processing and in financial market sophistication do not appear to have substantially shortened the lag. The empirical evaluation of dynamic general equilibrium models needs to be extended to include an assessment of these models' ability to account for the monetary transmission lags found in the data. [source] A triangular hybrid equilibrium plate element of general degreeINTERNATIONAL JOURNAL FOR NUMERICAL METHODS IN ENGINEERING, Issue 3 2005E. A. W. Maunder Abstract Hybrid stress-based finite elements with side displacement fields have been used to generate equilibrium models having the property of equilibrium in a strong form. This paper establishes the static and kinematic characteristics of a flat triangular hybrid equilibrium element with both membrane and plate bending actions of general polynomial degree p. The principal characteristics concern the existence of hyperstatic stress fields and spurious kinematic modes. The former are shown to exist for p>3, and their significance to finite element analysis is reviewed. Knowledge of the latter is crucial to the determination of the stability of a mesh of triangular elements, and to the choice of procedure adopted for the solution of the system of equations. Both types of characteristic are dependent on p, and are established as regards their numbers and general algebraic forms. Graphical illustrations of these forms are included in the paper. Copyright © 2005 John Wiley & Sons, Ltd. [source] A general equilibrium analysis of foreign direct investment and the real exchange rateINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 4 2002Milind M. Shrikhande Abstract Modern theories of foreign direct investment claim that foreign direct investment occurs because certain domestic assets are worth more under foreign control. This view developed by industrial organization theorists is indifferent to the financing mode of a foreign acquisition as well as to the interaction between foreign direct investment (FDI) and real exchange rates. However, empirical research has uncovered a significant relationship between FDI and exchange rates. Second, partial equilibrium models of FDI have focused on FDI as foreign acquisitions of existing assets but not on new capital formation initiated by foreigners. We complement these contributions by developing a welfare-maximizing, general equilibrium model of the interaction between FDI as cross-border acquisitions, and the real exchange rate. Copyright © 2002 John Wiley & Sons, Ltd. [source] Comparative analysis of three user equilibrium models under stochastic demandJOURNAL OF ADVANCED TRANSPORTATION, Issue 3 2008Zhong Zhou Abstract Recent empirical studies on the value of time and reliability reveal that travel time variability plays an important role on travelers' route choice decision process. It can be considered as a risk to travelers making a trip. Therefore, travelers are not only interested in saving their travel time but also in reducing their risk. Typically, risk can be represented by two different aspects: acceptable risk and unacceptable risk. Acceptable risk refers to the reliability aspect of acceptable travel time, which is defined as the average travel time plus the acceptable additional time (or buffer time) needed to ensure more frequent on-time arrivals, while unacceptable risk refers to the unreliability aspect of unacceptable late arrivals (though infrequent) that have a travel time excessively higher than the acceptable travel time. Most research in the network equilibrium based approach to modeling travel time variability ignores the unreliability aspect of unacceptable late arrivals. This paper examines the effects of both reliability and unreliability aspects in a network equilibrium framework. Specifically, the traditional user equilibrium model, the demand driven travel time reliability-based user equilibrium model, and the ,-reliable mean-excess travel time user equilibrium model are considered in the investigation under an uncertain environment due to stochastic travel demand. Numerical results are presented to examine how these models handle risk under travel time variability. [source] ORIGINAL ARTICLE: Towards an understanding of the Holocene distribution of Fagus sylvatica L.JOURNAL OF BIOGEOGRAPHY, Issue 1 2007Thomas Giesecke Abstract Aim, Understanding the driving forces and mechanisms of changes in past plant distribution and abundance will help assess the biological consequences of future climate change scenarios. The aim of this paper is to investigate whether modelled patterns of climate parameters 6000 years ago can account for the European distribution of Fagus sylvatica at that time. Consideration is also given to the role of non-climatic parameters as driving forces of the Holocene spread and population expansion of F. sylvatica. Location, Europe. Methods, European distributions were simulated using a physiologically-based bioclimatic model (STASH) driven by three different atmospheric general circulation model (AGCM) outputs for 6000 years ago. Results, The three simulations generally showed F. sylvatica to have potentially been as widespread 6000 years ago as it is today, which gives a profound mismatch with pollen-based reconstructions of the F. sylvatica distribution at that time. The results indicate that drier conditions during the growing season 6000 years ago could have caused a restriction of the range in the south. Poorer growth conditions with consequently reduced competitive ability were modelled for large parts of France. Main conclusions, Consideration of the entire European range of F. sylvatica showed that no single driving force could account for the observed distributional limits 6000 years ago, or the pattern of spread during the Holocene. Climatic factors, particularly drought during the growing season, are the likely major determinants of the potential range. Climatic factors are regionally moderated by competition, disturbance effects and the intrinsically slow rate of population increase of F. sylvatica. Dynamic vegetation modelling is needed to account for potentially important competitive interactions and their relationship with changing climate. We identify uncertainties in the climate and pollen data, as well as the bioclimatic model, which suggest that the current study does not identify whether or not climate determined the distribution of F. sylvatica 6000 years ago. Pollen data are better suited for comparison with relative abundance gradients rather than absolute distributional limits. These uncertainties from a study of the past, where we have information about plant distribution and abundance, argue for extreme caution in making forecasts for the future using equilibrium models. [source] Structural characterization of the ternary solvent mixture methanol,acetonitrile,1-propanol,JOURNAL OF PHYSICAL ORGANIC CHEMISTRY, Issue 9 2002Ruben Elvas Leitão Abstract Refractive indices and ET values were measured for the ternary mixture methanol,acetonitrile,1-propanol at 25.0,°C for 13 mole fractions, and also for the corresponding binary mixtures, methanol,1-propanol, methanol,acetonitrile and 1-propanol,acetonitrile, at 25.0 and 50.0,°C, at 10 different compositions. Solvent exchange equilibrium models were applied to the transition energy of the Dimroth,Reichardt ET(30) solvatochromic indicator in the binary systems and the Redlich,Kister polynomial was used to correlate excess ETN and nD values for the binary solvent mixtures data. The results allowed the analysis of synergetic behaviours, polarizability effects and preferential solvation trends both in the binary and in the ternary mixtures. Our results point towards the prevalence of specific solute,solvent,solvent interactions mainly due to hydrogen bonding by the hydroxylic components of the ternary mixture. Copyright © 2002 John Wiley & Sons, Ltd. [source] DRS. MUTH AND MILLS MEET DR. TIEBOUT: INTEGRATING LOCATION-SPECIFIC AMENITIES INTO MULTI-COMMUNITY EQUILIBRIUM MODELS,JOURNAL OF REGIONAL SCIENCE, Issue 1 2010Dennis Epple ABSTRACT We consider the problem of integrating spatial amenities into locational equilibrium models with multiple jurisdictions. We provide sufficient conditions under which models that assume a single housing price in each community continue to apply in the presence of location-specific amenities that vary both within and across communities. If these conditions are satisfied, the models, estimation methods, and results in Epple and Sieg (1999) are valid in the presence of (potentially unobserved) location-specific amenities. We also show how to construct sufficient statistics that capture location specific spatial heterogeneity. We apply these techniques using data from the Pittsburgh metropolitan area. We find that these amenity measures capture proximity to important local employment centers as well as heterogeneity in school quality within a given school district. [source] A General Misspecification Test for Spatial Regression Models: Dependence, Heterogeneity, and NonlinearityJOURNAL OF REGIONAL SCIENCE, Issue 2 2001Thomas De Graaff There is an increasing awareness of the potentials of nonlinear modeling in regional science. This can be explained partly by the recognition of the limitations of conventional equilibrium models in complex situations, and also by the easy availability and accessibility of sophisticated computational techniques. Among the class of nonlinear models, dynamic variants based on, for example, chaos theory stand out as an interesting approach. However, the operational significance of such approaches is still rather limited and a rigorous statistical-econometric treatment of nonlinear dynamic modeling experiments is lacking. Against this background this paper is concerned with a methodological and empirical analysis of a general misspecification test for spatial regression models that is expected to have power against nonlinearity, spatial dependence, and heteroskedasticity. The paper seeks to break new research ground by linking the classical diagnostic tools developed in spatial econometrics to a misspecification test derived directly from chaos theory,the BDS test, developed by Brock, Dechert, and Scheinkman (1987). A spatial variant of the BDS test is introduced and applied in the context of two examples of spatial process models, one of which is concerned with the spatial distribution of regional investments in The Netherlands, the other with spatial crime patterns in Columbus, Ohio. [source] AN EQUILIBRIUM GUIDE TO DESIGNING AFFINE PRICING MODELSMATHEMATICAL FINANCE, Issue 4 2008Bjørn Eraker The paper examines equilibrium models based on Epstein,Zin preferences in a framework in which exogenous state variables follow affine jump diffusion processes. A main insight is that the equilibrium asset prices can be computed using a standard machinery of affine asset pricing theory by imposing parametric restrictions on market prices of risk, determined inside the model by preference and model parameters. An appealing characteristic of the general equilibrium setup is that the state variables have an intuitive and testable interpretation as driving the consumption and dividend dynamics. We present a detailed example where large shocks (jumps) in consumption volatility translate into negative jumps in equilibrium prices of the assets as agents demand a higher premium to compensate for higher risks. This endogenous "leverage effect," which is purely an equilibrium outcome in the economy, leads to significant premiums for out-of-the-money put options. Our model is thus able to produce an equilibrium "volatility smirk," which realistically mimics that observed for index options. [source] Mass components in ordered and in chaotic motion in galactic N -body modelsMONTHLY NOTICES OF THE ROYAL ASTRONOMICAL SOCIETY, Issue 2 2002N. Voglis ABSTRACT Two self-consistent (N -body) non-rotating equilibrium models of elliptical galaxies with smooth central density profiles (called ,Q' and ,C' models) are constructed, starting from quiet and clumpy cosmological initial conditions, respectively. Both models are triaxial. The Q model has an E7 maximum ellipticity in the inner parts and tends to E6 or E5 maximum ellipticity in the outer parts. The C model has a maximum ellipticity E4 in the inner parts and tends to an E2 or E1 in the outer parts. For each model, we identify the particles moving in chaotic orbits with the Lyapunov number exceeding a particular threshold (namely, 10,2.8, in units of the inverse radial periods of the particular orbits). At energy levels in the deepest 30 per cent of the potential well, no chaotic orbits were detected in the above limit of chaoticity. In the Q model, the detected chaotic part is 32 per cent of the total mass. This part has a nearly spherical distribution. It imposes limitations on the maximum ellipticity of the system, in spite of the fact that only a part of less than about 8 per cent of the total mass moves in chaotic orbits and is able to develop chaotic diffusion within a Hubble time. In the C model, the detected chaotic part is about 26 per cent of the total mass, but only less than 2 per cent can develop chaotic diffusion within a Hubble time. These chaotic components produce surface density profiles flatter than the profiles of the rest of the mass, particularly in the Q model. The two profiles intersect at a given distance, where the overall profile forms an observable hump, especially if the surface density profiles are taken along the shortest axis of the projection. [source] The dynamics of top-down and bottom-up effects in food webs of varying prey diversity, composition, and productivityOIKOS, Issue 2 2007Jeremy W. Fox Prey diversity is thought to mediate the strength of top-down and bottom-up effects, but few experiments directly test this hypothesis. I assembled food webs of bacteria and bacterivorous protist prey in laboratory microcosms with all combinations of five productivity levels, two top predator treatments (present or absent), and three prey compositions. Depauperate food chains contained one of two edible prey species, while more diverse food webs contained both edible prey species plus two additional less-edible/inedible prey. Equilibrium theory predicts that prey diversity should weaken the top-down and bottom-up effects on trophic level biomasses, due to density compensation among prey species. Top-down effects should increase with productivity in food chains, but decrease with productivity in food webs. Results revealed highly dynamic top-down effects, the strength of which varied more over time than among treatments. Further, top-down effects did not merely vary in absolute strength over time, but also in relative strength across different prey compositions and productivity levels. It might be expected that equilibrium models would qualitatively reproduce time-averaged results. However, time-averaged data largely failed to support equilibrium predictions. This failure may reflect strong temporal variability in treatment effects combined with nonlinear density dependence of species' per-capita growth rates. Strong temporal variability in the strength of top-down effects has not previously been demonstrated, but likely is common in nature as well. [source] SPECIALIZATION AND TRADE: A GAME THEORETICAL APPROACHPACIFIC ECONOMIC REVIEW, Issue 4 2006Shuntian Yao Different from the classical treatment, we adopt a game theoretical approach. Therefore in our models the prices of traded goods are endogenously formulated according to the bidding strategies of the producer-consumers. Furthermore, we assume that in the beginning individuals randomly choose their professions. As a result, with a short-run Nash equilibrium different types of professionals may have different utility levels; while through a dynamic process, a long-run Nash equilibrium with utility equalization is reached. Besides, we also attempt to provide a new algorithm for the computation of general equilibrium models in the Yang-Ng framework. [source] Nonlinear Pricing in General Equilibrium Models with Joint ProductionTHE JAPANESE ECONOMIC REVIEW, Issue 1 2001Kazuya Kamiya This paper considers general equilibrium models of public utilities which produce either public goods or private goods. In the models, cases of increasing returns are not a priori excluded. The products of the public utilities and their costs are allocated to the consumers according to a rule that is dependent on information communicated to the public utilities. We show that if the public utilities follow a nonlinear pricing rule, the equilibrium allocations are always Pareto-optimal. Moreover, the message space is of finite dimensions. JEL Classification Numbers: D51, D60, H41, H42. [source] DUAL ECONOMY MODELS: A PRIMER FOR GROWTH ECONOMISTSTHE MANCHESTER SCHOOL, Issue 4 2005JONATHAN TEMPLE This paper argues that dual economy models deserve a central place in the analysis of growth in developing countries. The paper shows how these models can be used to analyse the output losses associated with factor misallocation, aggregate growth in the presence of factor market distortions, international differences in sectoral productivity and the potential role of increasing returns to scale. Above all, small-scale general equilibrium models can be used to investigate the interactions between growth and labour markets, to shed new light on the origins of pro-poor and labour-intensive growth, and to explore the role of the informal sector. [source] Productivity and Preferences in a Small Open EconomyTHE MANCHESTER SCHOOL, Issue 2001Jagjit S. Chadha Following Hall (Journal of Labor Economics, Vol. 15 (1997), pp. S223,S250) it is increasingly common to incorporate preference, as well as productivity, perturbations in calibrated general equilibrium models. We assess the performance of a small open economy stochastic growth model (based on the Blanchard,Yaari framework) under alternative driving processes. Whilst both models provide familiar descriptions of the aggregate economy, we find that the model driven by productivity disturbances has clear advantages in explaining the behaviour towards foreign asset accumulation. [source] Trade Reform and Manufacturing Pricing Behavior in Four Archetype Asia-Pacific Economies*ASIAN ECONOMIC JOURNAL, Issue 2 2005Rod Tyers F12; F14; N75 General equilibrium models are constructed of four Asia-Pacific economies that differ according to their levels of development, the comparative sizes of their manufacturing sectors and their patterns of comparative advantage and trade protection. The countries chosen are Australia, an industrialized importer of manufactures; Japan, an industrialized exporter; the Philippines, a developing importer; and the Republic of Korea, a developing exporter. Manufacturing industries are characterized as comprising identical oligopolistic firms producing homogeneous goods that are differentiated from competing imports. Oligopoly behavior notwithstanding, trade reforms are found to yield conventional results in that net economic gains are small while implicit transfers are substantial. More competitive (non-collusive) pricing by oligopolistic firms, which might be achieved through reform of competition law and trade practices surveillance, yields larger net gains and these gains tend to accrue to all domestic primary factors. Such reforms also yield substantial interaction between oligopoly behavior and economic and industrial structure. [source] Economic Liberalization and the Antecedents of Top Management Teams: Evidence From Turkish ,Big' BusinessBRITISH JOURNAL OF MANAGEMENT, Issue 3 2006Sibel Yamak There has been an increased interest in the last two decades in top management teams (TMTs) of business firms. Much of the research, however, has been US-based and concerned primarily with TMT effects on organizational outcomes. The present study aims to expand this literature by examining the antecedents of top team composition in the context of macro-level economic change in a late-industrializing country. The post-1980 trade and market reforms in Turkey provided the empirical setting. Drawing upon the literatures on TMT and chief executive characteristics together with punctuated equilibrium models of change and institutional theory, the article develops the argument that which firm-level factors affect which attributes of TMT formations varies across the early and late stages of economic liberalization. Results of the empirical investigation of 71 of the largest industrial firms in Turkey broadly supported the hypotheses derived from this premise. In the early stages of economic liberalization the average age and average organizational tenure of TMTs were related to the export orientation of firms, whereas in later stages, firm performance became a major predictor of these team attributes. Educational background characteristics of teams appeared to be under stronger institutional pressures, altering in different ways in the face of macro-level change. [source] | ||||||||||||||||||||||