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RECONCILING THEORY (reconciling + theory)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	75%

Selected Abstracts

ACCUMULATING DOBZHANSKY-MULLER INCOMPATIBILITIES: RECONCILING THEORY AND DATA

EVOLUTION, Issue 6 2004
John J. Welch
Abstract Theoretical models of the accumulation of Dobzhansky-Muller incompatibilities (DMIs) are studied, and in particular, the framework introduced by Orr (1995) and a verbal model introduced by Kondrashov et al. (2002). These models embody very different assumptions about the relationship between the substitution process underlying evolutionary divergence and the formation of incompatibilities. These differences have implications for our ability to make inferences about the divergence from patterns in the relevant data. With this in mind, the models are investigated for their ability to account for three patterns evident in this data: (1) the asymmetrical nature of incompatibilities under reciprocal introgression; (2) the finding that multiple concurrent introgressions may be necessary for an incompatibility to form; and (3) the finding that the probability of obtaining an incompatibility by introgressing a single amino acid remains roughly constant over a wide range of genetic distances. None of the models available in the literature can account for all of the empirical patterns. However, modified versions of the models can do so. Ways of discriminating between the different models are then discussed. [source]

THE EFFECTS OF FISCAL SHOCKS ON CONSUMPTION: RECONCILING THEORY AND DATA,

THE MANCHESTER SCHOOL, Issue 2 2007
GIOVANNI GANELLI
Recent research has stressed the inconsistency between empirical evidence and the theoretical prediction of both the standard real business cycle and the New Keynesian models regarding the impact of fiscal shocks on consumption. Some authors have attempted to bridge this gap by relying on assumptions about the effects of government spending on preferences and production, or on deviations from the intertemporal optimizing framework. In this paper we follow a different route. We show that introducing at the same time imperfect competition, sticky prices and deviations from Ricardian equivalence through an overlapping generations model helps to solve the inconsistency between theory and data. Our paper can also be seen in the light of the classic controversy between Keynesians and monetarists on the effectiveness of fiscal policy. From this angle, our model can be considered a reincarnation of the classic work of Blinder and Solow (Journal of Public Economics, Vol. 2 (1973), pp. 319,337). [source]

Optimal Diversification: Reconciling Theory and Evidence

THE JOURNAL OF FINANCE, Issue 2 2004
Joao Gomes
ABSTRACT In this paper we show that the main empirical findings about firm diversification and performance are consistent with the maximization of shareholder value. In our model, diversification allows a firm to explore better productive opportunities while taking advantage of synergies. By explicitly linking the diversification strategies of the firm to differences in size and productivity, our model provides a natural laboratory to investigate several aspects of the relationship between diversification and performance. Specifically, we show that our model can rationalize the evidence on the diversification discount (Lang and Stulz (1994)) and the documented relation between diversification and productivity (Schoar (2002)). [source]

Monetary policy arithmetic: reconciling theory with evidence

CANADIAN JOURNAL OF ECONOMICS, Issue 1 2006
Maxim Nikitin
Existing budget arithmetic models of monetary policy cannot deliver superneutrality. In this paper, we conduct a budget arithmetic analysis of monetary policy using a money demand specification , money in the utility function , that is new to this literature. We find that one simple assumption about utility from money delivers superneutrality, while a more general assumption delivers departures from superneutrality in the direction consistent with the evidence. JEL classification: E60, E13 Arithmétique de la politique monétaire: arrimage de la théorie avec les faits., Les résultats empiriques montrent que, dans les pays à faible taux d'inflation, une chute permanente du taux d'inflation soit n'a aucun impact sur le stock de capital et la production (superneutralité) soit entraîne une chute modérée dans l'un et l'autre. Les modèles arithmétiques des budgets existants de la politique monétaire ne peuvent pas engendrer la superneutralité. Dans ce mémoire, on fait une analyse arithmétique de la politique monétaire en utilisant une spécification de la demande de monnaie qui est inédite. Il appert qu'un simple postulat à propos de l'utilité de la monnaie engendre la superneutralité, alors qu'un postulat plus général engendre certains écarts par rapport à la superneutralité dans des directions qui sont compatibles avec les faits observés. [source]