2020-07-10T00:30:46Z
https://researchspace.auckland.ac.nz/dspace-oai/request
oai:researchspace.auckland.ac.nz:2292/127
2012-01-24T21:39:48Z
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Roggendorf, Matthias
author
Beltran, Fernando
author
2006
This paper presents a flow-based, auction-driven approach to resource allocation. This approach allows mobile stations to simultaneously negotiate for resources from competing providers. We use an auction at each provider to decide on the resource allocation, based on the offers made by agents representing mobile nodes. All agents in the system try to maximise their utility gained from the total allocation of resources. The focus of this paper is on the bidding strategy of a mobile station when faced with the opportunity to obtain network resources from multiple sources. We support the proposed bidding strategy by simulation experiments, which show that the resulting allocation is efficient under the limited scope of the simulation setup.We also show that multiple-access can increase the allocation efficiency compared to the situation in which agents have access to only one network.
26th International Conference on Distributed Computing Systems, Lisbon, 04 Jul 2006 - 07 Jul 2006. Editors: IEEE. Proceedings of the 26th International Conference on Distributed Computing Systems. 2006
0-7695-2541-5
http://hdl.handle.net/2292/127
10.1109/ICDCSW.2006.55
Flow-based resource allocation in a multiple-access wireless market-setting using an auction
oai:researchspace.auckland.ac.nz:2292/128
2012-01-24T21:36:28Z
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Beltran, Fernando
author
Roggendorf, Matthias
author
2006
Next-generation wireless networks will enable the usage of different network technologies fully transparent to the user. Applications will be able to dynamically adapt to the conditions and technical constraints of the network. This vision requires a dynamic allocation of scarce network resources to different users. This paper presents simulation results from a model of admission control and dynamic resource allocation in wireless networks, in a two-provider, multiple-user scenario. The access allocation and connection procedure is implemented using an efficient (welfare maximizing) incentive mechanism for capacity allocation at both providers.
Mobility Aware Technologies and Applications, Second International Workshop, MATA 2005, Montreal, Canada, October 17-19, 2005, Proceedings. Lecture Notes in Computer Science. (3744), 54-64. (2005)
http://hdl.handle.net/2292/128
10.1007/11569510_6
A simulation model for the dynamic allocation of network resources in a competitive wireless scenario
oai:researchspace.auckland.ac.nz:2292/129
2012-01-24T21:40:56Z
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Zining, Guo
author
Sheffield, Jim
author
2006
This study addresses a long-standing and well-recognized problem in KM research, namely the lack of a cumulative tradition. This problem is addressed by an intensive and critical review of the knowledge management literature that identifies gaps and recommends how these should be filled. KM articles are classified by research paradigm, research methodology, and research interest (technical, practical, and emancipatory). The survey methodology is intensive. Leading journals that publish significant knowledge management research are identified. All articles relevant to knowledge management, organizational learning, and organizational memory for the five-year period 2000-2004 are surveyed and classified by multiple reviewers. The key finding is that inquiry in KM is starkly unbalanced. Overuse of the positivist paradigm and its dominant research method (sample survey) prevents the exploitation of the highly relevant insights available via the use of the interpretivist and critical pluralist paradigms and the field study method.
System Sciences, 2006. HICSS '06. Proceedings of the 39th Annual Hawaii International Conference. 7(04-07 Jan), 153a - 153a. (2006)
http://hdl.handle.net/2292/129
10.1109/HICSS.2006.23
A Paradigmatic and Methodological Examination of KM Research: 2000 to 2004
oai:researchspace.auckland.ac.nz:2292/130
2012-01-24T21:36:28Z
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Zining, Guo
author
Sheffield, Jim
author
2006
This study addresses a long-standing and well-recognized problem in KM research, namely the lack of conceptual integration and a cumulative tradition. Knowledge management needs an overarching framework to unify and direct research. This paper reports on the development of such a framework. Elements of the proposed framework are created by synthesizing concepts from the systems thinking and critical thinking traditions. It is argued that the synthesis of aspects of Churchman's inquiring systems and Habermas' critical social theory provides a philosophically grounded, universally pragmatic framework useful in managing the complexity, and conceptualizing the richness, of knowledge phenomena. The key architectural element in this framework is Habermas' knowledge interests. Habermas' three knowledge interests (technical, practical and emancipatory) form a three-level integrating structure. Framework development consists of describing how four other design elements (Habermas' three rationalities, Churchman's roles, knowledge dynamics, and research paradigms) are positioned within this integrating structure.
System Sciences, 2006. HICSS '06. Proceedings of the 39th Annual Hawaii International Conference 7, 162c-162c. (2006)
http://hdl.handle.net/2292/130
10.1109/HICSS.2006.201
Habermasian Inquiring System: Toward a General Framework for Knowledge Management Research
oai:researchspace.auckland.ac.nz:2292/131
2011-11-22T22:54:34Z
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Beltran, Fernando
author
De Fontenay, Alain
author
Wohlers de Alameida, Marcio
author
2005
The radical transformations that have been reshaping theworld of telecommunications are uniquely decentralized and, yet, theyincreasingly provide the lifeblood of our new societies. In this paper we studythe internet as a critical infrastructure whose efficiency depends upon theproper and efficient functioning of its market structure. Our objective is not topropose the role governments should play. It is not to suggest regulation. Itis exclusively to highlight the vulnerability of the economy to the lack ofcompetition and associated problems due to inefficient market structures.The analysis in this paper is buttressed by the unique in-depth empiricalresearch one of the authors has already carried out on internet in SouthAmerica, covering many of its national idiosyncrasies, and its various formsof governance. South America is particularly interesting in view of thedifferent ways in which networks came to interconnect with one another andthe diversity of governance one finds at points of internet traffic exchange.This subject will form the basis for further work.
Communications and Strategies Nov 30, 2005
1157-8637
http://hdl.handle.net/2292/131
Internet as a critical infrastructure: lessons from the backbone experience in South America
oai:researchspace.auckland.ac.nz:2292/132
2012-01-24T21:36:28Z
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00925njm 22002777a 4500
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Beltran, Fernando
author
Roggendorf, Matthias
author
2006
We introduce a simulation-based approach to the problem that mobile users may face in a multi-provider environment when seeking to satisfy their demand for bandwidth; if they are allowed to satisfy their individual demands by aggregating shares from two or more providers the problem becomes one of resource allocation in a competitive market. We use the Progressive Second-Price auction at each provider, exploring the properties of three bidding strategies. Simulations aim at learning whether the auction converges at each seller when bidders, either make coordinated or non-coordinated decisions among auctions, or complement already secured shares by bidding at other auctions. Aggregate measures of welfare and sellers' revenue are obtained for each simulation run.
LNCS 4033, 37-48 (2006)
http://hdl.handle.net/2292/132
10.1007/11780502_5
A simulation-based approach to bidding strategies for network resources in competitive wireless networks
oai:researchspace.auckland.ac.nz:2292/133
2012-01-24T21:37:42Z
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Roggendorf, Matthias
author
Beltran, Fernando
author
Gutierrez, Jairo
author
2006
We present a generic, agent-based simulation environment for dynamic pricing in next-generation wireless networks. While a lot of effort has been put into simulation platforms for recreating the behaviour of IP-based traffic in fixed and wireless networks, no standard platform for simulating different pricing schemes in such networks has yet emerged. Our work is driven by the vision of a ubiquitous wireless network environment, in which users can dynamically request network resources for various use from different, potentially competing network providers. For such a scenario, new pricing approaches are needed to charge the user according to dynamic factors such as current congestion levels or the the number of customers present at a specific location. The developed simulation environment serves as a generic tool for implementing and testing different pricing approaches.
1-4244-0106-2
http://hdl.handle.net/2292/133
10.1109/TRIDNT.2006.1649159
Architecture and implementation of an agent-based simulation tool for market-based pricing in Next-Generation Wireless Networks
oai:researchspace.auckland.ac.nz:2292/134
2015-06-04T23:52:57Z
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Srinivasan, Ananth
author
Irwin, Gretchen
author
2006
This paper examines two components of the user-database interface: the data modeling constructs used to represent the database structure and the query language constructs used for data retrieval. From a theoretical perspective, if both the data modeling and query language support high-level abstractions (HLAs), such as generalization and composition, then the "semantic distance" between the user and the interface will be reduced. We used an in-depth verbal protocol study to explore how users were able to effectively complete two tasks: constructing a data model with HLAs and formulating queries against the data model. Results suggest that a successful strategy for modeling with HLAs involves the systematic transition between higher and lower levels of abstraction. In addition, there is some support for the idea that there is a "productivity payoff" to modeling with HLAs, because subsequent query can be simplified.
Professional Communication, IEEE Transactions vol.49, no.2, pp. 145- 159, June 2006
0361-1434
http://hdl.handle.net/2292/134
10.1109/TPC.2006.875075
Communicating the Message:Translating tasks into queries in a database context
oai:researchspace.auckland.ac.nz:2292/135
2019-01-07T21:41:30Z
com_2292_2857
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Beltran, Fernando
author
Roggendorf, Matthias
author
2006
We investigate equilibrium properties of a bidding strategy in a situation in which bidders attempt to purchase a given amount of a divisible resource by bidding on multiple auctions. A possible application area for such a scenario is the next-generation of wireless networks, in which multiple, competing network providers sell bandwidth each using an auction to allocate their resources. A bidder may aggregate shares of the resource obtained from some of the auctions, and needs to coordinate his bids to maximise the utility derived from each auction. In order to deal with aggregation and coordination of bids, we introduce the notion of an aggregated market, which is an artificial construct by each bidder that allows him to distribute his demand among the auctions. Furthermore, the aggregate market helps to understand convergence of the bidding process occurring at each individual auction. We show that by using an incentive-compatible, efficient mechanism at each single auction bidders have incentives to truthfully reveal their demand to the aggregated market.
http://hdl.handle.net/2292/135
Achieving an efficient equilibrium when simultaneously bidding on multiple, divisible-item auctions
oai:researchspace.auckland.ac.nz:2292/136
2019-01-07T21:41:59Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
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Chaudhuri, Ananish
author
Gangadharan, Lata
author
2003
We use the investment game introduced by Berg, Dickhaut and McCabe (1995) to explore
gender differences in trust and reciprocity. In doing so we replicate and extend the
results first reported by Croson and Buchan (1999). We find that men exhibit greater
trust than women do while women show higher levels of reciprocity. Trusting behavior
is driven strongly by expectations of reciprocation. We posit that the lower levels
of trust exhibited by women may be attributed to a higher degree of risk
aversion.
Department of Economics Working Paper Series 248
http://hdl.handle.net/2292/136
Gender Differences in Trust and Reciprocity
oai:researchspace.auckland.ac.nz:2292/137
2019-01-07T21:42:37Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
dc
Hillas, John
author
Jansen, Mathijis
author
Potters, Jos
author
2001
In this paper we examine a number of different definitions
of strategic stability and the relations among them. In particular, we show that the stability requirement given by Hillas (1990) is
weaker than the requirements involved in the various definitions of stability in Mertens' reformulation of stability (Mertens 1989,
1991). To this end, we introduce a new de
nition of stability and show that it is equivalent to (a variant of) the definition given by Hillas (1990). We also use the equivalence
of our new de
nition with the definition of Hillas to provide correct proofs of some of
the results that were originally claimed (and incorrectly \proved") in Hillas (1990).
Department of Economics Working Paper Series 217
http://hdl.handle.net/2292/137
On The Relation Among Some Definitions Of
Strategic Stability
oai:researchspace.auckland.ac.nz:2292/138
2019-01-07T21:45:21Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Yu, Jun
author
2002
In this note we represent the well known discrete time stochastic volatility (SV) model with a leverage effect and the SV model of
Jacquier, Polson and Rossi (JPR) (2002) using Gaussian nonlinear state space forms with uncorrelated measurement and transition errors.
With the new representations, we show that the JPR specification does not necessarily lead to a leverage effect and hence is not theoretically justified. Empirical comparisons of
these two models via Bayesian MCMC methods reveal that JPR's specification is not supported by actual data either. Simulation
experiments are conducted to study the sampling properties of the Bayes estimator for the conventionally specified model.
Department of Economics Working Paper Series 241
http://hdl.handle.net/2292/138
MCMC Methods for Estimating Stochastic Volatility Models with Liverage Effects: Comments on Jacquier, Polson and Rossi (2002)
oai:researchspace.auckland.ac.nz:2292/139
2019-01-07T21:45:37Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Schiff, Aaron
author
2001
This paper incorporates partial consumer participation in a model of competition between telecommunications networks with two-way
interconnection. It is shown, in contrast to the results of similar models with full participation, that the firms' equilibrium profits depend on the
level of a reciprocal access charge under two-part retail pricing. Under some simplifying assumptions, it is shown that firms prefer the
access charge be set equal to the marginal cost of termination, which coincides with the social optimum. Without these additional
assumptions the model is analytically complex and simulation results are presented that suggest firms prefer the access charge to be
less than marginal cost, while the socially optimal access charge may be above or below cost depending on the differentiation of the firms.
Department of Economics Working Paper Series 223
http://hdl.handle.net/2292/139
Two-way Interconnection with Partial Consumer Participation
oai:researchspace.auckland.ac.nz:2292/140
2019-01-07T21:46:05Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
dc
Ratnayake, Ravi
author
1999
A wide spread concern can be witnessed among businessmen, policy makers and academics about the role of environmental regulations on innovative responses. In this study, we examine whether these regulations enhance or hinder R&D expenditure using the data for eight major U.S industries for the period 1982 to 1992. We find no strong evidence to support the view that environmental regulations proxied by abatements costs have any significant impact on the pollution abatement technology.
Department of Economics Working Paper Series 188
http://hdl.handle.net/2292/140
Does Enviromental Regulation Stimulate Innovative Responses? Evidence from U.S. Manufacturing
oai:researchspace.auckland.ac.nz:2292/141
2019-01-07T21:47:31Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
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Sul, Donggyu
author
Phillips, Peter
author
Choi, Chi-Young
author
2003
HAC estimation commonly involves the use of prewhitening filters based on simple
autoregressive models. In such applications, small sample bias in the estimation of
autoregressive coefficients is transmitted to the recoloring filter, leading to HAC
variance estimates that can be badly biased. The present paper provides an analysis
of these issues using asymptotic expansions and simulations. The approach we
recommend involves the use of recursive demeaning procedures that mitigate the
effects of small sample autoregressive bias. Moreover, a commonly-used restriction
rule on the prewhitening estimates (that first order autoregressive coefficient
estimates, or largest eigenvalues, greater than 0.97 be replaced by 0.97) adversely
interferes with the power of unit root and KPSS tests. We provide a new boundary
condition rule that improves the size and power properties of these tests. Some
illustrations are given of the effects of these adjustments on the size and power of
KPSS testing. Using prewhitened HAC estimates and the new boundary condition rule,
the KPSS test is consistent, in contrast to KPSS testing that uses conventional
prewhitened HAC estimates (Lee, 1996).
Department of Economics Working Paper Series 254
http://hdl.handle.net/2292/141
10.1111/j.1468-0084.2005.00130.x
Prewhitening Bias in HAC Estimation
oai:researchspace.auckland.ac.nz:2292/142
2019-01-07T21:48:03Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Jackson, Kenneth
author
2002
(Opening paragraph) Openness, along with trade liberalisation, is currently seen as a major factor in producing economic growth and
relatively high standards of living as conventionally measured by Gross Domestic Product (GDP) per capita. In the modern literature
these two components have been described as: '' believed to have been central to the remarkable growth of industrial countries since the
mid-20th century (Winters, 2000, p. 43).
Department of Economics Working Paper Series 232
http://hdl.handle.net/2292/142
Open and Closed: Some Historical Dimensions of New Zealand's Participation in the World Economy
oai:researchspace.auckland.ac.nz:2292/143
2019-01-07T21:51:18Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Ryan, Matthew
author
1999
The aim of this note is to plug an important gap in our understanding of the epistemic foundations of uncertainty-averse behavior. For Choquet expected utility maximizers (Schmeidler (1989)), the beliefs which motivate uncertainty-averse choice are frequently identified using Dow and Werlang's (1994) notion of support for convex capacities. Building on the work of Morris (1997), we present a new, preference-based belief operator which is is shown to characterize such epistemic inferences. This makes their behavioral foundations transparent, and enables readier comparison with alternative epistemic models for such behavior.
Department of Economics Working Paper Series 189
http://hdl.handle.net/2292/143
What Do Uncertainty-Averse Decision-Makers Believe? A Note
oai:researchspace.auckland.ac.nz:2292/144
2019-01-07T21:40:04Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Mark, Nelson
author
Ogaki, Masao
author
Sul, Donggyu
author
2003
Multiple cointegrating regressions are frequently encountered in empirical work as,
for example, in the analysis of panel data. When the equilibrium errors are
correlated across equations, the seemingly unrelated regression estimation strategy
can be applied to cointegrating regressions to obtain asymptotically efficient
estimators. While non-parametric methods for seemingly unrelated cointegrating
regressions have been proposed in the literature, in practice, specification of the
estimation problem is not always straightforward. We propose Dynamic Seemingly
Unrelated Regression (DSUR) estimators which can be made fully parametric and are
computationally straightforward to use. We study the asymptotic and small sample
properties of the DSUR estimators both for heterogeneous and homogenous
cointegrating vectors. The estimation techniques are then applied to analyze two
long-standing problems in international economics. Our first application revisits the
issue of whether the forward exchange rate is an unbiased predictor of the future
spot rate. Our second application revisits the problem of estimating long-run
correlations between national investment and national saving.
Department of Economics Working Paper Series 253
http://hdl.handle.net/2292/144
Dynamic Seemingly Unrelated Cointegrating Regression
oai:researchspace.auckland.ac.nz:2292/145
2019-01-07T21:54:22Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Mark, Nelson
author
Sul, Donggyu
author
2002
Local asymptotic power advantages are available for testing the hypothesis that the slope coefficient is zero in regressions of yt+k-
yton xtfor k > 1, when { yt} ~ I(0) and {xt} ~ I(0). The advantages of these long-horizon regression tests accrue in empirically
relevant regions of the admissible parameter space. In Monte Carlo experiments, small sample power advantages to long-horizon regression tests accrue in a region of the parameter space that
is larger than that predicted by the asymptotic analysis.
Department of Economics Working Paper Series 239
http://hdl.handle.net/2292/145
Asymptotic Power Advantages of Long-Horizon Regressions
oai:researchspace.auckland.ac.nz:2292/146
2019-01-07T21:55:53Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Aoki, Reiko
author
2001
We consider a model of vertical quality differentiation. We show that in Coumot (quality setting) competition firm's profit is
increasing in its own quality and decreasing in its rival's quality. This differs from the results for Bertrand (price setting) competition and conforms to some
previously made assumptions concerning profit functions in a setting of vertical quality differentiation. However, even in this case,
when an initial stage in which firms make as costly investment in quality is added, an asymmetric equilibrium results. This follows from
the fact that in both types of competition, it is possible to improve profit by moving away (either by choosing higher or lower quality)
from rival's quality. This paper is the same as manuscript dated 1988 of the same name.
Department of Economics Working Paper Series 222
http://hdl.handle.net/2292/146
Cournot and Bertrand Competition with Vertical
Quality Differentiation
oai:researchspace.auckland.ac.nz:2292/147
2019-01-07T21:56:17Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Aoki, Reiko
author
Tauman, Yair
author
1998
The purpose of this paper is to study the effect of spillover on extent of licensing when cost reducing innovation is introduced and licensed to a number of oligopolistic firms. We characterize the equilibrium number of licenses that are sold through an auction. An increase in the number of licenses has two effects. First, it increases the competition between the licensees. Second, due to spillover, the non-licensees become more efficient contributing to even more competition. We find that despite these effects, a patentee of a significant innovation will sell more licenses when there is spillover than without spillover thereby inducing even more competition. In this case, consumer surplus will be greater with spillover. However, if the innovation is less significant, then the patentee will sell less licenses with spillover thereby restrict
competition. In this case the market price will be higher and the consumer surplus will be smaller.
Department of Economics Working Paper Series 181
http://hdl.handle.net/2292/147
Patent Licensing with Spillovers
oai:researchspace.auckland.ac.nz:2292/148
2019-01-07T21:58:01Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Endres, Anthony
author
Woods, Christine
author
2003
This paper compares three principal, contemporary theories of entrepreneurial
decision making - neoclassical, Austrian and behavioral. We employ theory appraisal
criteria made available in Fritz Machlup's (1967) celebrated article on alternative
theories of the firm. The paper considers theories that treat sequences of behavior
by which individual entrepreneurs reach decisions on two levels: the discovery of
profit opportunities and their exploitation. We also consider how each theory
characterizes the entrepreneur's decision making process by contrast with the
posited behavior of other economic agents. Austrian theory is suited to explaining
novel, adventurous behavior at the discovery stage. The algorithm for opportunity
exploitation in both the neoclassical and Austrian approaches is a
single-repertoire, optimization rule. Neoclassical theory is situated in
frictionless, atomistic Walrasian markets and emphasizes mathematical tractability.
Austrian and behavioral theories conceive entrepreneurial acts taking place in
market processes understood as complex institutional phenomena. There are strong
theoretical complementarities between Austrian and behavioral approaches; both
approaches value descriptive accuracy, though the behavioralists place more weight
on operational tractability. Austrians and behavioralists share an interest in
heuristics; they emphasize the role of prior micro-level knowledge at the discovery
stage. Currently there is no possibility of an all-encompassing theory of
entrepreneurial behavior emerging in the literature.
Department of Economics Working Paper Series 244
http://hdl.handle.net/2292/148
Modern Theories of Entrepreneurial Behavior: An Appraisal
oai:researchspace.auckland.ac.nz:2292/149
2019-01-07T21:58:18Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Phillips, Peter
author
1999
Discrete Fourier transforms (dft's) of fractional processes are studied and a exact representation of the dft is given in terms of the component data. The new representation gives the frequency domain form of the model for a fractional process, and is particularly useful in analyzing the asymptotic behavior of the dft and periodogram in the nonstationary case when the memory parameter d > 1/2. Various asymptotic approximations are suggested. It is shown that smoothed periodogram spectral estimates remain consistent for frequencies away from the origin in the nonstationary case provided the memory parameter d < 1. When d = 1, the spectral estimates are inconsistent and converge weakly to random variates. Applications of the theory to log periodogram regression and local Whittle estimation of the memory parameter are discussed and some modified
versions of these procedures are suggested.
Department of Economics Working Paper Series 193
http://hdl.handle.net/2292/149
Discrete Fourier Transforms of Fractional Processes August
oai:researchspace.auckland.ac.nz:2292/150
2019-01-07T21:59:18Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Maani, Sholeh
author
2005
This paper examines the link between parental income during adolescent years and
higher education choices of the offspring at age 18. This study is the first to use
a recent longitudinal data set from New Zealand (Christchurch health and development
Surveys, CHDS), in the higher education context. The paper examines the impact of
family income and other resources throughout adolescent years on later decisions to
participate in higher education and the choice of type of tertiary education at age
18. A binary choice model of participation in education, and a multinomial choice
model of the broader set of choices faced at age 18, of employment, university, or
polytechnic participation are estimated. Among the features of the study are that it
incorporates a number of variables, from birth to age 18, which allow us to control
further than most earlier studies for ability heterogeneity, academic performance in
secondary school, in addition to parental resources (e.g., childhood IQ, nationally
comparable high school academic performance, peer effects, family size and family
financial information over time). The results highlight useful features of
intergenerational participation in higher education, and the effect of parental
income on university education, in particular.
Department of Economics Working Paper Series 259
http://hdl.handle.net/2292/150
Parental Income and the Choice of Participation in University, Polytechnic or
oai:researchspace.auckland.ac.nz:2292/151
2019-01-07T21:59:33Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Bandyopadhyay, Debasis
author
1999
This paper critically reviews conventional explanations of why the individual income reflects an industry premium. It presents four facts about industry premiums in New Zealand to highlight the limitation of those explanations. In particular, it suggests that competitive theories that refer to unobservable characteristics or compensating wage differentials are too broad and non-competitive theories that rely on the efficiency wage hypothesis are too narrow to successfully explain what the New Zealand data reveal. Employees receive industry
premium, but so do the self-employed, and do so more than the employees if uneducated; but the premium difference falls as the education level rises.
Department of Economics Working Paper Series 194
http://hdl.handle.net/2292/151
Industry Premium: What we Know and What The New Zealand Data Say
oai:researchspace.auckland.ac.nz:2292/152
2019-01-07T22:01:25Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Chaudhuri, Ananish
author
Maitra, Pushkar
author
Graziano, Sara
author
2003
In this paper we analyse contributions to a public good within an inter-generational
framework where at the end of each session one generation of subjects leave advice
for the succeeding generation via free form messages. Such advice can be private
(advice left by one player in generation t is given only to her immediate successor
in generation t +1) or public (advice left by players of generation t is made
available to all members of generation t +1). We estimate a panel regression model
that enables us to understand the dynamics of the process better and to highlight
the learning that occurs over time. Our estimation results show that contributions
in any period depend crucially on contributions in the previous period and on the
group average in the previous period - more specifically whether a subject's own
contribution in the previous period fell above or below the group average. We find
that in the public advice treatment when a subject's contribution fell below the
group average in the previous period there is a tendency on the part of that subject
to increase contributions in the next period.
Department of Economics Working Paper Series 255
http://hdl.handle.net/2292/152
A Dynamic Analysis of the Evolution of Conventions in a Public Goods Experiment with
Intergenerational Advice
oai:researchspace.auckland.ac.nz:2292/153
2019-01-07T22:19:02Z
com_2292_2857
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uoa_economics
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Maani, Sholeh
author
2000
Utilising evidence from a longitudinal data set of young adults in New Zealand, this study examines the determinants of school leaving and labour supply behaviour of young adults at ages 16 and 18. The data set employed (the Christchurch Health and Development Survey) includes a number of variables, from birth to age 18, not commonly available in economic data sets. The analysis uses binary choice models to examine the effect of ability factors and household economic constraints on the choice to remain at secondary school beyond post-compulsory levels at age 16. The study further uses binary and multinomial choice models to examine the determinants of participation in tertiary education, as opposed to engaging in labour supply, or unemployment at age 18. The study finally examines the determinants of the type of tertiary institution attended.
Department of Economics Working Paper Series 208
http://hdl.handle.net/2292/153
School Leaving, Labour Market and Tertiary Education Choices of Young Adults: An Economic Analysis
Utilising The 1977-1995 Christchurch Health and Development Surveys
oai:researchspace.auckland.ac.nz:2292/154
2019-01-07T22:21:07Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Julien, Benoit
author
Kennes, John
author
King, Ian
author
2002
In a model with two buyers and sellers we consider the choice of sales mechanism from three possibilities: posted prices, and
auctions with and without reserve prices. With homogenous goods, sellers expected revenues are highest when both sellers auction with
reserve prices 33% higher than if posting prices and 100% higher than if auctioning without reserve prices. When sellers can choose
their mechanism before choosing prices, both sellers auction with a reserve price in the dominant strategy equilibrium. With
heterogenous goods, the equilibrium with posted prices is inefficient (Montgomery (1991)) but the equilibria with both types of auctions
are efficient.
Department of Economics Working Paper Series 226
http://hdl.handle.net/2292/154
Auction Beats Posted Prices in a Small Market
oai:researchspace.auckland.ac.nz:2292/155
2019-01-07T22:21:35Z
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uoa_economics
00925njm 22002777a 4500
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Aoki, Reiko
author
2001
We examine the effect of an oligopolistic upstream electronic market on
upstream and downstream prices. The analysis highlights the two sources
of competition that a firm that source from an electronic market (e-market
firm) face: competition with less efficient firms that source traditionally
(t-market firms) and competition among e-market firms. When size of the
upstream e-market is small, the first effect dominates and there is higher profits with lower upstream prices in the e-market. When size
of the emarket becomes very large, the second effect makes e-market firms less profitable than t-market
firms even though e-market price may start to increase (as market size increases). As consequence, e-market will never completely
eliminate the upstream t-market and downstream price can increase when e-market grows beyond a certain size.
Department of Economics Working Paper Series 216
http://hdl.handle.net/2292/155
Oligopolisic Business-to-Business E-Market and
Welfare
oai:researchspace.auckland.ac.nz:2292/156
2019-01-07T22:44:28Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Aoki, Reiko
author
Spiegel, Yossi
author
1998
In Europe and in Japan, patent applications are publicly disclosed after 18 month from the filing date regardless of whether a patent has been or will be registered. In the U.S. in contrast, patent applications are publicly disclosed only when a patent is granted. In this paper we examine the consequences of this difference for (i) firm's R&D and patenting behavior, (ii) consumers' surplus and social welfare, and (iii) the incentives of firms to innovate, in a setting where patent protection is imperfect in the sense that patent applications may be rejected and patents are not always upheld in court. The main conclusions are that public disclosure leads to fewer patent applications and fewer innovations, but for a given number of innovations, it raises the probability that new technologies will reach the product market and thereby enhances consumers' surplus and possibly total welfare as well .
Department of Economics Working Paper Series 185
http://hdl.handle.net/2292/156
Public Disclosure of Patent Applications, R&D, and
Welfare
oai:researchspace.auckland.ac.nz:2292/157
2019-01-07T22:51:10Z
com_2292_2857
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uoa_economics
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Bandyopadhyay, Debasis
author
1997
This paper provides an empirically tractable model of economic growth where the
distribution of human capital is central to understanding the key issues. Long run growth is
possible only if the distribution of human capital belongs to a known class such that
investment in education, the model's engine of growth, exceeds inter-generational
depreciation of human capital. The model contributes to understanding of the puzzle of
growth disparities among countries by exhibiting multiple steady states under alternative
paradigms of growth. It provides a purely neoclassical model to explain why a lower income
inequality may correspond to a higher rate of growth.
Department of Economics Working Paper Series 173
http://hdl.handle.net/2292/157
Distribution of Human Capital and Economic Growth
oai:researchspace.auckland.ac.nz:2292/158
2019-01-07T23:09:04Z
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uoa_economics
00925njm 22002777a 4500
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Findlay, Marama
author
2000
The following literature review is intended to provide a framework for a qualitative analysis of the factors influencing the evolution of the iwi organisations that own and manage commercial fisheries assets. The analysis will compare the empirical results with the factors that institutional economics suggests influence institutional design. The proposed research is intended to fill two gaps: firstly, it will enlarge the set of analytical tools that have been applied to understanding the development of the new iwi organisations; secondly, it will appraise a new, highly distinctive institutional form with a selection of
theories from contemporary institutional economics. The paper contains an introduction to the new iwi organisations, a note on method and then surveys selected material from the institutional economics literature that seems most promising for exploring the evolution of iwi organisations. Although the paper is primarily a literature review, the notes on the new iwi organisations and research method are included to assist the explanation of how appropriate literature was selected. This stems from the view that successful research matches subject matter, method and theory. The paper closes by presenting a set of questions generated from the survey literature. which will be used to guide the fieldwork.
Department of Economics Working Paper Series 206
http://hdl.handle.net/2292/158
Evolution of IWI Organisations for the Management of Commercial Fisheries Assets
oai:researchspace.auckland.ac.nz:2292/159
2019-01-07T23:13:03Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Ratnayake, Ravi
author
Woo-Young, Kim
author
1999
This paper examines the relationship between economic growth and environmental conditions in high performing Asian economies in the light of the South Korea's experience. We used Generalized Least Squares to regress thirteen indicators of environmental quality covering air pollution, water pollution, and industrial waste on GDP per capita and other explanatory variables. The results show that five out of the thirteen environmental quality indicators improve when per capita income increases while eight indicators show either a U-shape relationship or deterioration in environmental conditions with economic growth. Overall, the results support the claim that Korea's growth has been achieved at the cost of a reduction in some measures of environmental quality, perhaps due to delayed recognition of environmental problems associated with increased
economic activities.
Department of Economics Working Paper Series 187
http://hdl.handle.net/2292/159
Economic Growth and the Environment in High-Performing East Asian Countries: Lessons from South
Korea
oai:researchspace.auckland.ac.nz:2292/160
2019-01-07T23:20:08Z
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00925njm 22002777a 4500
dc
Chaudhuri, Ananish
author
Khan, Sarah
author
Lakshmiratan, Aishwarya
author
Py, Anne-Laure
author
Shah, Lisa
author
2003
We use a two-person extensive form bargaining game to examine individual's trusting
and reciprocal behavior and how those relate to their scores on a trust survey. In
keeping with prior research, we find that the 'self-interested' outcome is rejected
by a majority of individuals. People who score high on the trust survey are both
trusting and are also trustworthy, in that they reciprocate others' trust. But,
people with low trust scores often exhibit trust but are not trustworthy. These
'inconsistent trusters' seem to be interested in exploiting the trust and
trustworthiness of others in increasing their own payoff.
Department of Economics Working Paper Series 247
http://hdl.handle.net/2292/160
Trust and Trustworthiness in a Sequential Bargaining Game
oai:researchspace.auckland.ac.nz:2292/161
2019-01-07T23:23:29Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Phillips, Peter
author
Yu, Jun
author
2000
This paper proposes an exact Gaussian estimator for nonlinear continuous time models of the term structure of interest rates. The approach is based on a stopping time argument that produces a normalizing transformation facilitating the use of a Gaussian likelihood. A Monte Carlo study shows that the finite sample performance of the proposed procedure offers an improvement over the discrete approximation method proposed by Nowman (1997). An empirical application to U.S. and British interest rates is given.
Department of Economics Working Paper Series 215
http://hdl.handle.net/2292/161
Exact Gaussian Estimation of Continuous Time Models of The Term Structure of Interest Rates Rankings
of Economics Departments in New Zealand
oai:researchspace.auckland.ac.nz:2292/162
2019-01-07T23:23:32Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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King, Ian
author
Sweetman, Arthur
author
2002
We argue that more workers choose to switch occupations in booms than in recessions. That is, skill retooling is procyclical. This
view is consistent with Lucas and Prescott's (1974) equilibrium search model modified with aggregate shocks and unemployment insurance.
Empirical support is found in a unique Canadian administrative data set that measures the annual flow of workers (from 1979-1993) who
separate from their jobs to "return to school". This flow is strongly procyclical.
Department of Economics Working Paper Series 225
http://hdl.handle.net/2292/162
Procyclical Skill Retooling and Equilibrium
oai:researchspace.auckland.ac.nz:2292/163
2019-01-07T23:23:05Z
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00925njm 22002777a 4500
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Kennedy, Peter
author
King, Ian
author
2000
We construct an OLG model of skill vintages with complementarities to examine skill obsolescence when individuals can choose vintages. We find that the problem of excessive progress can exist only in the absence of coordination and transfers among those currently alive. However, too little progress can occur in equilibrium, even in the presence of coordination and transfers. Moreover, allowing coordination or transfers may reduce aggregate surplus. Equilibria with too little progress can take the form of either cycles or stagnation. The introduction of outside debt can eliminate the cyclical equilibrium, leading to a Paretoimproving increase in the rate of progress.
Department of Economics Working Paper Series 204
http://hdl.handle.net/2292/163
Economic Progress and Skill Obsolescene
oai:researchspace.auckland.ac.nz:2292/164
2019-01-07T23:23:13Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Bandyopadhyay, Debasis
author
Lahiri, P
author
Yu, Feng
author
1999
The general goal of this paper is first to develop an operationally simple measure of human v capital using the relative frequency histogram of the highest educational attainment and then to analyze the cross-country variations of the proposed measure. Visual inspection and the matrix of rank correlation coefficients show that relative frequency distributions of the highest educational attainment are similar for countries with similar Gross Domestic Products (GDP) level, but they are very different for countries whose GDP levels are quite different. Guided by intuition, we define a simple descriptive statistic, EER measured by the relative proportion of labor force with education beyond the secondary level to those with no formal education. This simple statistic turns out to extract the most essential information contained in the relative
frequency histogram of the highest educational attainment to forecast future economic growth of a country. Consequently, we propose this statistic EER as a new measure of human capital. Non-parametric tests show that both the means and variances of the distribution of log (EER) for the high GDP countries are significantly higher than the corresponding means and variances for the low GDP countries. A chi-square test reveals that for the two groups of low and high GDP countries, the distributions of EER can be characterized by a unified class of gamma distributions with the same shape parameter but with very different scale parameters. Based on the data created by Barro and Lee (1993), we note that our new measure of human capital (i.e., EER) alone can explain cross-country variations in per capita GDP much better than the other growth models such as Solow (1956) and Mankiw, Romer, and Weil(1992). Those models include population growth rate and investment rate as covariates and the latter model use an additional covariate SCHOOL measured by the average secondary school enrollment rate or in addition to those two covariates. We explain the better performance of our model by noting that the statistic EER is significantly negatively correlated with population growth rate and positively correlated with investment rate and SCHOOL.
Department of Economics Working Paper Series 196
http://hdl.handle.net/2292/164
On A New Measure of Human Capital and Its Impact on Gross Domestic Product
oai:researchspace.auckland.ac.nz:2292/165
2019-01-07T23:23:24Z
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uoa_economics
00925njm 22002777a 4500
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Boyce, John
author
1998
This paper considers a model of interest group competition to influence policy outcomes when politicians and some interest groups hold private information about the polic y preferences (ideology) of politicians. Politicians cannot credibly reveal their ideology to others because all politician types prefer more campaign contributions to fewer. However, informed interest groups do convey some information about politician_s type by their contributions. If an uninformed group is a friend (it prefers moving the given policy in the same direction as the informed group), the informed group will truthfully reveal whether or not the politician is receptive to contributions. However, if the uninformed group is an enemy (it prefers a policy movement in the opposite direction), with the same signal the informed group only partially reveals whether the politician is receptive to contributions from its enemies. Empirical evidence is presented that supports the hypothesis that political action committee contributions are informative as well as persuasive.
Department of Economics Working Paper Series 177
http://hdl.handle.net/2292/165
Ideology, Asymmetric Information, and Campaign Contributions to Politicians
oai:researchspace.auckland.ac.nz:2292/166
2019-01-07T23:23:40Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Ryan, Matthew
author
1999
Mixed strategy equilibria are often regarded as unconvincing behavioral predictions (eg. Stahl (1988)). Furthermore, while many games possess mixed equilibria, explicit randomization is rare in practice. We argue that both problems arise because conventional game theory excludes maximin behavior. By considering a generalization of Nash equilibrium, we prove that there exist plausible equilibria for 2 x 2 games which involve randomized choice. Interestingly, the randomizing player always adopts a maximin strategy. Maximin behavior is therefore crucial to explaining randomization. We also prove that games with randomized equilibria
are non-generic, hence unlikely to be observed in practice.
Department of Economics Working Paper Series 191
http://hdl.handle.net/2292/166
The Maxim Criterion and Randomised Behaviour Reconsidered
oai:researchspace.auckland.ac.nz:2292/167
2019-01-07T23:24:06Z
com_2292_2857
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00925njm 22002777a 4500
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Goering, Gregory
author
Boyce, John
author
1998
This paper examines the use of taxation to control external damage due to pollution when product durability is endogenously determined. A special form of the emissions function is also examined which is equivalent to an excise tax on output. The dynamic oligopoly model indicates that many conventional results in the durability and taxation literature need not hold when durability is endogenously determined. In particular, the analysis shows durability may not be independent of industry structure nor will firms minimize their manufacturing costs of providing service. In addition, the second-best tax on imperfectly competitive firms is not necessarily less than the tax on a competitive firm when firms choose their product_s durability.
Department of Economics Working Paper Series 178
http://hdl.handle.net/2292/167
Emissions Taxation in Durable Goods Oligopoly
oai:researchspace.auckland.ac.nz:2292/168
2019-01-07T23:24:03Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Yu, Jun
author
1999
This paper proposes a new econometric methodology for the estimation of diffusion models that include a jump component. The jump component's arrival time is endogenously determined, reflecting past volatility in the data and deviations from economic fundamentals. Although the likelihood method does not have closed form for this model, we show that the characteristic function can be derived analytically and hence developed an empirical characteristic function method to estimate the system parameters. This procedure has the same asymptotic efficiency as maximum likelihood, and is thus a desirable method to use when the likelihood function is unknown. A Monte Carlo study shows that the empirical characteristic function method outperforms the GMM procedure for the model. An application is considered for S&P 500 daily returns.
Department of Economics Working Paper Series 200
http://hdl.handle.net/2292/168
Estimation of a Self-Exciting Poisson Jump Diffusion Model by the Empirical Characteristic Function
Method
oai:researchspace.auckland.ac.nz:2292/169
2019-01-07T23:25:53Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Hillas, John
author
Kohlberg, Elon
author
2001
(Introductory Paragraph) The central concept of noncooperative game theory is that of the strategic equilibrium (or Nash equilibrium,
or noncooperative equilibrium). A strategic equilibrium is a profile of strategies or plans, one for
each player, such that each player's strategy is optimal for him, given the strategies of the others.
Department of Economics Working Paper Series 218
http://hdl.handle.net/2292/169
Foundations of Strategic Equilibrium
oai:researchspace.auckland.ac.nz:2292/170
2019-01-07T23:26:00Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Maani, Sholeh
author
2000
Utilising evidence from a longitudinal data set of young adults in New Zealand, this study examines the determinants of school leaving and labour supply behaviour of young adults at ages 16 and 18. The data set employed (the Christchurch Health and Development Survey) includes a number of variables, from birth to age 18, not commonly available in economic data sets. The analysis uses binary choice models to examine the effect of ability factors and household economic constraints on the choice to remain at secondary school beyond post-compulsory levels at age 16. The study further uses binary and multinomial choice models to examine the determinants of participation in tertiary education, as opposed to engaging in labour supply, or unemployment at age 18. The study finally examines the determinants of the type of tertiary institution attended. tertiary education in the 1981-1991 period, and a stabilisation of results for males and a relative decline in the returns for females since 1991.
Department of Economics Working Paper Series 210
http://hdl.handle.net/2292/170
Private and Public Returns to Investments in
Secondary and Higher Education in NZ over time: 1981-
1996
oai:researchspace.auckland.ac.nz:2292/171
2019-01-08T00:04:14Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Ratnayake, Ravi
author
Wydeveld, Michael
author
1998
In a world of increasing foreign direct investment flows some concerns have been raised that differences in environmental stringency between nations will prompt multinational corporations to relocate production in those countries where standard and enforcement of environmental regulations are relatively lax. This paper aims to test the validity of such a notion which has been dubbed the pollution haven hypothesis. We do so by developing a model based on trade and foreign direct investment theories and testing it using a cross-country data set. The econometric analysis in our study finds no evidence to suggest that environmental regulation is a significant determinant of inward FDI.
Department of Economics Working Paper Series 179
http://hdl.handle.net/2292/171
The Mulitnational Corporation and the Environment: Testing The Pollution Haven Hypothesis
oai:researchspace.auckland.ac.nz:2292/172
2019-01-08T00:05:01Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Mark, Nelson
author
Sul, Donggyu
author
2002
We study the panel DOLS estimator of a homogeneous cointegration vector for a balanced panel of N individuals observed over T time
periods. Allowable heterogeneity across individuals include individual-specific time trends, individual-specific fixed effects and time-
specific effects. The estimator is fully parametric, computationally convenient, and more precise than the single equation estimator.
For fixed N as T approaches infinity, the estimator converges to a function of Brownian motions and the Wald statistic for testing a set
of linear constraints has a limiting chi-square distribution. The estimator also has a Gaussian sequential limit distribution that is
obtained first by letting T go to infinity then letting N go to infinity. In a series of Monte Carlo experiments, we find that the asymptotic distribution theory provides a reasonably close approximation to the exact finite sample distribution. We use panel dynamic
OLS to estimate coefficients of the long-run money demand function from a panel of 19 countries with annual observations that span from
1957 to 1996. The estimated income elasticity is 1.08 (asymptotic s.e.=0.26) and the estimated interest rate semi-elasticity is -0.02
(asymptotic s.e.=0.01).
Department of Economics Working Paper Series 237
http://hdl.handle.net/2292/172
10.1111/j.1468-0084.2003.00066.x
Panel Dynamic OLS Cointegration Vector Estimation and Long-Run Money Demand
oai:researchspace.auckland.ac.nz:2292/173
2019-01-08T00:05:15Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Guthrie, Graeme
author
Wright, Julian
author
2003
This paper presents a model of competing payment schemes. Unlike previous work on
generic twosided markets, the model allows for the fact that in a payment system one
type of user (merchants) competes to attract users on the other side of the market
(consumers who may use cards for purchases). It analyzes how competition between
card associations affects the choice of interchange fees, and thus the structure of
fees charged to cardholders and merchants. Implications of the analysis for the
competitive neutrality, or otherwise, of proposals to regulate interchange fees are
discussed.
Department of Economics Working Paper Series 245
http://hdl.handle.net/2292/173
Competing Payment Schemes
oai:researchspace.auckland.ac.nz:2292/174
2019-01-08T00:07:39Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Julien, Benoit
author
Kennes, John
author
King, Ian
author
2003
This paper presents a very simple directed search model of the labour market in which
no wage announcements are made. Wages, instead, are determined by an ex post bidding
mechanism: an auction without a reserve price. We characterize the properties of the
equilibrium of the model, and examine its implied Beveridge curve. We show that this
wage determination mechanism induces efficient job entry in equilibrium. A dynamic
version of the model is calibrated to the US labour market. The model can account
for observed vacancy rates, given parameters that are chosen to match the average
wages and the natural rate of unemployment. In the limit, as the time between offer
rounds in the model approaches zero, the equilibrium approaches the Walrasian
competitive equilibrium.
Department of Economics Working Paper Series 256
http://hdl.handle.net/2292/174
Directed Search without Price Directions
oai:researchspace.auckland.ac.nz:2292/175
2019-01-08T00:07:50Z
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00925njm 22002777a 4500
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Yu, Jun
author
1999
This paper evaluates the performance of nine alternative models for predicting stock price volatility using daily New Zealand data. The competing models contain both simple models such as the random walk and smoothing models and complex models such as ARCH-type models and a stochastic volatility model. Four different measures are used to evaluate the forecasting accuracy. The main results are the following: 1) the stochastic volatility model provides the best performance among all the candidates. 2) ARCH-type models can perform well or badly depending on the form chosen; the performance of the GARCH(3,2) model, the best model within the ARCH family, is sensitive to the choice of assessment measures. 3) the regression and exponentially weighted moving average models do not perform well according to any assessment measure, in contrast to the results found in various markets.
Department of Economics Working Paper Series 202
http://hdl.handle.net/2292/175
Forecasting Volatility in the New Zealand Stock Market
oai:researchspace.auckland.ac.nz:2292/176
2019-01-08T00:07:59Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
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Wright, Julian
author
2001
A fundamental aspect of any open payment system is the interchange fee that is paid from the merchant's bank to the cardholder's
bank. Using a model in which there is partial participation by heterogeneous consumers and merchants, this paper characterizes the
output maximizing, profit maximizing and welfare maximizing level of such an interchange fee. It examines how the optimal level of the
fee depends on costs, profits margins, pass-through coefficients, participation rates, and membership fees, as well as two different
strategic effects arising from competition between merchants. It also determines the factors which drive deviations between the output
maximizing, profit maximizing, and welfare maximizing interchange fees.
Department of Economics Working Paper Series 220
http://hdl.handle.net/2292/176
The Determinants of Optimal Interchange Fees in Payment Systems
oai:researchspace.auckland.ac.nz:2292/177
2019-01-08T00:08:08Z
com_2292_2857
col_2292_3404
uoa_economics
00925njm 22002777a 4500
dc
Phillips, Peter
author
Sul, Donggyu
author
2003
Explicit asymptotic bias formulae are given for dynamic panel regression estimators
as the cross section sample size N 8. The results extend earlier work by Nickell
(1981) in several directions that are relevant for practical work, including models
with unit roots, deterministic trends, predetermined and exogenous regressors, and
errors that may be cross sectionally dependent. The asymptotic bias is found to be
so large when incidental linear trends are fitted and the time series sample size is
small that it changes the sign of the autoregressive coefficient. Another finding of
interest is that, when there is cross section error dependence, the probability
limit of the dynamic panel regression estimator is a random variable rather than a
constant, which helps to explain the substantial variability observed in dynamic
panel estimates when there is cross section dependence even in situations where N is
very large.
Department of Economics Working Paper Series 252
http://hdl.handle.net/2292/177
Bias in Dynamic Panel Estimation with Fixed Effects, Incidental Trends and Cross
Section Dependence
oai:researchspace.auckland.ac.nz:2292/178
2019-01-08T00:08:17Z
com_2292_2857
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uoa_economics
00925njm 22002777a 4500
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Berg, Andreas
author
Meyer, Renate
author
Yu, Jun
author
2002
Bayesian methods have proven very efficient in estimating parameters of stochastic volatility (SV) models for analysing financial
time series. Recent work extends the basic stochastic volatility model to include heavy-tailed error distributions, covariates, leverage
effects, and jump components. Hierarchical Bayesian methods (usually implemented via state-of-the-art Markov chain Monte Carlo methods
for posterior computation) allow fitting of such complex models. However, a formal model comparison via Bayes factors is difficult
because the marginalization constants are not readily available. Bayesian modelcomparison using the Schwarz criterion as a Bayes factor
approximation requires the specification of the number of free parameters in the model. This number of free parameters, or degrees of
freedom, is not well defined in stochastic volatility models. The main objective of this paper is to demonstrate that model selection
within the class of SV models is better performed using the deviance information criterion (DIC). DIC is a recently developed
information criterion designed for complex hierarchical models with possibly improper prior distributions. It combines a measure of fit
with a measure of model complexity. We illustrate the performance of DIC in discriminating between various different SV models using
simulated data and daily returns data on the S&P 100 index.
Department of Economics Working Paper Series 228
http://hdl.handle.net/2292/178
Deviance Information Criterion as a Model
Comparison Criterion for Stochastic Volatility
Models
oai:researchspace.auckland.ac.nz:2292/179
2019-01-08T00:09:44Z
com_2292_2857
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00925njm 22002777a 4500
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Kao, Tina
author
2000
This paper analyses the effects of New Zealand's trade liberalisation on its factor markets. Although the consensus among most existing empirical studies is that there is little contribution of trade in increasing wage inequality, disagreement remains regarding the appropriate methodology. Recognising the importance of taking account of general equihbrium considerations, this paper follows the factor content of trade formulation proposed by Deardorff and Staiger (1988) and Deardorff and Lattimore (1999a, b). It is found that, in contrast to the income distribution widening effect, Ncw Zealand's trade reforms have reduced skill premiums when the comparison is made between 1986 and 1996. This result is consistent with Deardorff and Lattimore (1999a, b). Furthermore Data of personal income distribution by qualifications are investigated. From 1986 to 1996, a tendency of income dstribution widening is found. If the relative factor returns and personal income distribution by qualifications are hlghly correlated, it suggests that trade liberatisation has helped reduce income inequality while somc other factors have led to the widening of the income distribution.
Department of Economics Working Paper Series 212
http://hdl.handle.net/2292/179
Trade Liberalisation and Factor Returns
oai:researchspace.auckland.ac.nz:2292/180
2019-01-08T00:09:57Z
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Endres, Anthony
author
Fleming, G.A.
author
2002
We investigate the determinants, development, character and distinctiveness of research programmes in international economic
organisations (IEOs). In the twentieth century, IEOs emerged as another domain - in addition to government, business and academia - in
which economists demonstrated the value of their intellectual constructs. What were the forces shaping economic thought in IEOs? How
does the incorporation of new ideas in IEO research affect policy prescriptions emanating from IEOs? We offer illustrations from the
IMF, OECD, and World Bank drawn from work in the late 1960s to the early 1980s. We view the subject matter as a variant of Schumpeterian
'political economy' rather than pure analytical economics. Economic research in IEOs enabled economists to assume positions as critical
intellectual actors in IEO policy formation. Key determinants of economic thought in IEOs included the rationale for the existence of a
particular organisation as expressed in formal charters or constitutions; contemporary ideas disseminated from academic economic
analysis, and pressures applied by member governments to research and advise on specific policy questions either as events or
operational functions demanded. We consider the World Bank as a purveyor of development strategies, in particular the concept of
'structural adjustment' in the 1980s; the self-styled monetary approach to the balance of payments prosecuted at the IMF from the 1960s
to the 1980s, and the OECD policy line on economic policy reform in developed industrialised countries in the late 1970s. IEO research
agendas were predominantly aimed at problems resulting from international economic interdependencies. We conclude that, for an IEO,
international political economy was more likely to sway national policymakers if it employed a discourse - together with carefully
chosen metaphors - turning on operational imperatives and articulating ruling policy concepts framed as part of eclectic,
applicable models. We find little support for the public choice view of IEO research (and researchers) as involving bureaucratic and
research budget maximization and strict research independence. Economic thought in IEOs is demand -driven though not completely demand-
determined.
Department of Economics Working Paper Series 233
http://hdl.handle.net/2292/180
The Shaping of Research Agendas in International Economic Organizations: Illustrations from the World Bank, IMF and OECD
oai:researchspace.auckland.ac.nz:2292/181
2019-01-08T00:30:57Z
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Boyce, John
author
Bischak, Diane
author
1998
This paper considers a model of political two-party competition over multiple policies when each policy is the domain of a particular legislative committee. Each party is composed of members who differ in their ideological preferences over policies but who have similar weightings of the importance of particular policies. Each committee acts to select policies in its own domain, subject to approval by the floor. The parties select committee memberships to maximize the density-weighted joint utility of its members, subject to institutional restrictions on committee compositions. Parties may choose either to accommodate or confront one another in committee assignments. For issues of importance to only one party, accommodation is shown to be the optimal strategy, and the committee appears as a classical preference outlier. For policies important to both parties, confrontation occurs, and the committee membership will be a bipolar preference outlier. Interest group ratings data from the U.S. House of Representatives are utilized to support this theory.
Department of Economics Working Paper Series 176
http://hdl.handle.net/2292/181
The Role of Political Parties in the Organization of Congress: Theory and Evidence
oai:researchspace.auckland.ac.nz:2292/182
2019-01-08T00:31:27Z
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Tse, Y.K.
author
Zhang, Bill
author
Yu, Jun
author
2002
In this paper we propose a Bayesian method for estimating hyperbolic diffusion models. The approach is based on the Markov Chain
Monte Carlo (MCMC) method after discretization via the Milstein scheme. Our simulation study shows that the hyperbolic diffusion
exhibits many of the stylized facts about asset returns documented in the financial econometrics literature, such as a slowly declining
autocorrelation function of absolute returns. We demonstrate that the MCMC method provides a useful tool to analyze hyperbolic
diffusions. In particular, quantities of posterior distributions obtained from MCMC outputs can be used for statistical inferences.
Department of Economics Working Paper Series 236
http://hdl.handle.net/2292/182
Estimation of Hyperbolic Diffusion using MCMC Method
oai:researchspace.auckland.ac.nz:2292/183
2019-01-08T00:31:10Z
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Thompson, Stanley
author
Sul, Donggyu
author
Bohl, Martin
author
2002
We investigate the degree to which the wheat markets of France, Germany and the United Kingdom are in spatial equilibrium and how
reforms to the CAP affect the speed of convergence to the long-run relationship. Due to the interrelationship among these markets and
the nonstationarity of our data we introduce a seemingly unrelated regression augmented Dickey-Fuller and error correction methodology.
We argue this methodology is more efficient than ordinary cointegration and error correction models. Empirically we find strong
evidence of efficient spatial markets and conformity to the law of one price. Market liberalization reforms in the EU increased the
comovement of domestic and world wheat prices; our post-Uruguay Round price transmission elasticity was 0.183.
Department of Economics Working Paper Series 240
http://hdl.handle.net/2292/183
10.1111/1467-8276.00366
Spatial Market Efficiency and Policy Regime Change: Seemingly Unrelated Error Correction Model Estimation
oai:researchspace.auckland.ac.nz:2292/184
2019-01-08T00:31:24Z
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Ireland, Norman
author
1998
The classical optimal income tax problem does not reveal many general properties except for the well-known tendency for marginal tax rates to reduce for high ability types, and in fact to become zero for the top type. The existence of distortions from individuals competing to attain social status by using consumption signals justifies some measure of income tax. The question posed here is whether it also constitutes a reason for a more progressive income tax schedule. The answer is found to be broadly negative if progressivity is interpreted as increasing marginal tax rates. On the other hand, status-seeking makes the optimal tax schedule steeper so that redistribution is increased. Broadly, the analysis of status-seeking based on a signalling approach confirms and strengthens the existing view of an optimal tax schedule.
Department of Economics Working Paper Series 175
http://hdl.handle.net/2292/184
Optimal Income Tax in the Presence of Status Effects
oai:researchspace.auckland.ac.nz:2292/185
2019-01-08T00:31:33Z
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King, Ian
author
2000
I compare the research records of the 7 major economics departments in New Zealand, from 1990 onwards. The information, taken from the Econlit database, covers more than 500 economics journals, as of November 2000. Quality weights for the journals were taken from the study by Laband and Piette (1994). Four different departmental ranking measures were computed. The resulting ranking of departments is common to all the measures used. Auckland comes in first, followed by Victoria University of Wellington, Canterbury, Otago, Lincoln, Waikato, and Massey.
Department of Economics Working Paper Series 214
http://hdl.handle.net/2292/185
Quality Versus Quantity: Rankings of Economics Departments in New Zealand
oai:researchspace.auckland.ac.nz:2292/186
2019-01-08T00:31:41Z
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Schiff, Aaron
author
Phillips, Peter
author
2000
Recent time series methods are applied to the problem of forecasting New Zealand_s real GDP. Model selection is conducted within autoregressive (AR) and vector autoregressive (VAR) classes, allowing for evolution in the form of the models over time. The selections are performed using the Schwarz (1978) BIC and the Phillips-Ploberger (1996) PIC criteria. The forecasts generated by the data determined AR models and an international VAR model are found to be competitive with forecasts from fixed format models and forecasts produced by the NZIER. Two illustrations of the methodology in conditional forecasting settings are performed with the VAR models. The first provides conditional predictions of New Zealand_s real GDP when there is a future recession in the United States. The second gives conditional predictions of New Zealand_s real GDP under a variety of profiles that allow for tightening in monetary conditions by the Reserve Bank.
Department of Economics Working Paper Series 209
http://hdl.handle.net/2292/186
Forecasting New Zealand's Real GDP
oai:researchspace.auckland.ac.nz:2292/187
2019-01-08T00:31:48Z
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Yu, Jun
author
Phillips, Peter
author
2002
In continuous time specifications, the prices of interest rate derivative securities depend crucially on the mean reversion parameter
of the associated interest rate diffusion equation. This parameter is well known to be subject to estimation bias when standard methods
like maximum likelihood (ML) are used. The estimation bias can be substantial even in very large samples and it translates into a bias
in pricing bond options and other derivative securities that is important in practical work. The present paper proposes a very general
method of bias reduction for pricing bond options that is based on Quenouille's (1956) jackknife. We show how the method can be applied
directly to the options price itself as well as the coefficients in continuous time models. The method is implemented and evaluated here
in the Cox, Ingersoll and Ross (1985) model, although it has much wider applicability. A Monte Carlo study shows that the proposed
procedure achieves substantial bias reductions in pricing bond options with only mild increases in variance that do not compromise the
overall gains in mean squared error. Our findings indicate that bias correction in estimation of the drift can be more important in
pricing bond options than correct specification of the diffusion. Thus, even if ML or approximate ML can be used to estimate more
complicated models, it still appears to be of equal or greater importance to correct for the effects on pricing bond options of bias in
the estimation of the drift. An empirical application to U.S. interest rates highlights the differences between bond and option prices
implied by the jackknife procedure and those implied by the standard approach. These differences are large and suggest that bias
reduction in pricing options is important in practical applications.
Department of Economics Working Paper Series 242
http://hdl.handle.net/2292/187
Jacknifing Bond Option Prices
oai:researchspace.auckland.ac.nz:2292/188
2019-01-08T00:31:57Z
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Vaithianathan, Rhema
author
1998
We model equilibrium in the health insurance market, when a monopolistic physician price discriminates on the basis of coinsurance rates. The physician extracts surplus created in the insurance market, leading to some consumers remaining uninsured. This 'hold-up' problem is solved if the physician and insurer integrate or enter a price agreement prior to writing the insurance contract. Both approaches improve insurer and physician profitability, and restore complete insurance market coverage. This paper therefore explains both partial insurance market coverage and the emergence of various contractual and ownership arrangements in the health insurance industry.
Department of Economics Working Paper Series 182
http://hdl.handle.net/2292/188
Health Insurance in the Presence of Physician Price Discrimination
oai:researchspace.auckland.ac.nz:2292/189
2019-01-08T00:32:05Z
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Julien, Benoit
author
Kennes, John
author
King, Ian
author
2000
We compare equilibrium allocations in directed search models where prices are determined alternatively by posting and by competing auctions. Sellers' expected payoffs are higher when all sellers auction, but the difference in the payoffs decreases rapidly with market size and vanishes in the limit "large" economy. In this large economy, buyer and seller payoffs are different, but entry of both buyers and sellers is constrainedefficient. When sellers can choose whether to post prices or auction in the 2-buyer 2- seller case, then the equilibrium choice depends on whether or not sellers can commit. If both sellers can commit, then the dominant strategy equilibrium has both sellers auctioning. If neither seller can commit, then all possible combinations are equilibria.
Department of Economics Working Paper Series 205
http://hdl.handle.net/2292/189
Matching Foundations
oai:researchspace.auckland.ac.nz:2292/190
2019-01-08T00:32:17Z
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King, Ian
author
2002
This is intended as a very basic introduction to the mathematical methods used in Thomas Sargent's book Dynamic Macroeconomic Theory.
It assumes that readers have no further mathematical background than an undergraduate "Mathematics for Economists" course. It contains
sections on deterministic finite horizon models, deterministic infinite horizon models, and stochastic infinite horizon models. Fully
worked out examples are also provided.
Department of Economics Working Paper Series 230
http://hdl.handle.net/2292/190
A Simple Introduction to Dynamic Programming in Macroeconomic Models
oai:researchspace.auckland.ac.nz:2292/191
2019-01-08T00:34:24Z
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Hazledine, Tim
author
Green, Hayden
author
Haugh, David
author
2003
This paper proposes and demonstrates a new method for testing for predatory behavior
by incumbent oligopolists towards new entrants. Traditional tests for predation,
such as the Areeda-Turner Rule, focus on the level of price relative to average
variable cost, such that if P %3C AVC, the incumbents cannot be maximising profits
even over the short run, and so are predating. The obvious objection to these tests
(apart from difficulties in measuring variable costs) is that just about all
oligopoly models predict that price will fall after the entry of an additional
competitor: who is to say that even an unsustainable price cut is not just the
natural outcome of the market becoming structurally more competitive? We answer this
objection by taking the modelling one level deeper. We ask what type of oligopoly
'game' is being played in the market post-entry, and compare it with the pre-entry
game. If oligopoly behavior changes substantially in the direction of becoming more
'competitive', then we may have found a 'smoking gun' circumstantial evidence
pointly strongly towards predation (but falling short of directly incriminating
evidence, such as records of email conversations indicating intent to predate). Our
approach is implemented with data on the two million annual flights across the
Tasman Sea that separates the main cities of New Zealand and Australia. The market
has long been dominated by a duopoly of national carriers -- Air New Zealand and
Qantas -- who for about a year in 1995/96 faced competition from a new-firm entrant,
Kiwi International Airlines. We find that the incumbents' behavior pre-entry was
quite close to Cournot-Nash, but that it became much more competitive during the
period of triopoly competition, suggesting predation. After the exit of Kiwi,
behavior immediately became less competitive, but it did not return to pre-entry
levels, and indeed has more recently tended back towards less cooperative duopoly
pricing, perhaps to discourage any other new or existing airline from again
disturbing the market.
Department of Economics Working Paper Series 250
http://hdl.handle.net/2292/191
The Smoking Gun? Competition and Predation in the Trans-Tasman Air Travel Market
oai:researchspace.auckland.ac.nz:2292/192
2019-01-08T00:34:31Z
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Shao, Qi-Man
author
Yu, Hao
author
Yu, Jun
author
1999
In this paper we propose a test statistic to discriminate bctween models with finite variance and models with infinite variance. The test statistic is the ratio of the sample standard deviation and the sample interquartile range. Both asymptotic and finite sample propert,ies of the test statistic are discussed. We show that the test is consistent against infinite-variance distributiorls and has small size distortions. The statistic is applied to compare the competing models for S&P 500 index returns. Our test can not reject most distributions with finite variance for both a pre-crash sample and a post-crash sample, and hence supports the literature. However, for a sample including crash days, our test suggests that the finite-variance distributions must be rejected. The finding is different from what have been discovered in the recent literature.
Department of Economics Working Paper Series 198
http://hdl.handle.net/2292/192
A Test Statistic and Its Application in Modelling Daily Stock Returns
oai:researchspace.auckland.ac.nz:2292/193
2019-01-08T00:34:37Z
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Bandyopadhyay, Debasis
author
1999
Distribution of human capital is a recent addition in the literature to the list of a few fundamental determinants of growth. This paper addresses an important problem associated with the empirical characterization of that distribution by utilizing the recently available distribution of the highest educational attainment in the labor force. We tried to fit the distribution of the number of years of school by over-dispersed Poisson and Negative-Binomial distributions. Based on the data compiled by Barro and Lee, none of the discrete distributions fit the data. The standard discrete probability distributions are
too smooth to account for the important information contained in the data, ie., schooling is more likely to be terminated at the completion of a category of schooling (e.g., primary, secondary, and higher education) than during a category, an important feature contained in the frequency distribution of highest educational attainment. Future research of this data should focus on more complex models which account for this "discontinuity" in the data, or modeling of other important features of the frequency distribution of highest educational attainment.
Department of Economics Working Paper Series 195
http://hdl.handle.net/2292/193
Can The Distribution of Highest Educational Attainment Be Characterised By A Discrete Probability
Distribution?
oai:researchspace.auckland.ac.nz:2292/194
2019-01-08T00:34:42Z
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Phillips, Peter
author
Sul, Donggyu
author
2002
This paper deals with cross section dependence, homogeneity restrictions and small sample bias issues in dynamic panel regressions.
To address the bias problem we develop a panel approach to median unbiased estimation that takes account of cross section dependence.
The new estimators given here considerably reduce the effects of bias and gain precision from estimating cross section error
correlation. The paper also develops an asymptotic theory for tests of coefficient homogeneity under cross section dependence, and
proposes a modified Hausman test to test for the presence of homogeneous unit roots. An orthogonalization procedure is developed to
remove cross section dependence and permit the use of conventional and meta unit root tests with panel data. Some simulations
investigating the finite sample performance of the estimation and test procedures are reported.
Department of Economics Working Paper Series 238
http://hdl.handle.net/2292/194
10.1111/1368-423X.00108
Dynamic Panel Estimation and Homogenity Testing Under Cross Section Dependence
oai:researchspace.auckland.ac.nz:2292/195
2019-01-08T00:34:48Z
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Haugh, David
author
Hazledine, Tim
author
1999
The duopoly of Air New Zealand and Qantas serving the trans-Tasman air travel market was disturbed in August 1995 by the entry of a small former charter airline, Kiwi International, based in Hamilton, NZ. Kiwi exited into liquidation in September 1996. The intervening thirteen months saw the entry of a 'fighting brand' no-frills airline, Freedom Air, set up by Air New Zealand to compete directly with Kiwi, and then a general price war initiated by Qantas, which directly preceded Kiwi_s demise. Was the behaviour of the incumbent duopolists 'predatory', in the sense of being designed to drive the new entrant from the market? Standard tests based on comparisons of price and costs are inconclusive. The innovation of this paper is to model the oligopolistic behaviour of the firms before and after entry. It is found that the duopolists became substantially more 'competitive' during the price war period, consistent with an interpretation of intent to predate.
Department of Economics Working Paper Series 190
http://hdl.handle.net/2292/195
Oligopoly Behaviour in the Trans-Tasman Air Travel Market: TheCase of Kiwi International
oai:researchspace.auckland.ac.nz:2292/196
2019-01-08T00:35:13Z
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Phillips, Peter
author
1998
Recent work by the author (1998) has shown that stochastic trends can be validly represented in empirical regressions in terms of deterministic functions of time. These representations offer an alternative mechanism for modelling stochastic trends. It is shown here that the alternate representations affect the asymptotics of all commonly used unit root tests in the presence of trends. In particular, the critical values of unit root tests diverge when the number of deterministic regressors K -+ rn as the sample size n + w. In such circumstances, use of conventional critical values based on fixed K will lead to rejection of the null of a unit root in favour of trend stationarity with probability one when the null is true. The results can be
interpreted as saying that serious attempts to model trends by deterministic functions will always be successful and that these functions can validly represent stochastically trending data even when lagged variables are present in the regressor set, thereby undermining conventional unit root tests.
Department of Economics Working Paper Series 184
http://hdl.handle.net/2292/196
New Unit Root Asymptotics in the Presence of Deterministic Trends
oai:researchspace.auckland.ac.nz:2292/197
2019-01-08T00:35:10Z
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Phillips, Peter
author
Sul, Donggyu
author
2003
Two groups of applied econometricians have figured prominently in empirical studies
of growth convergence. In terms of a popular caricature, one group believes it has
found a black hat of convergence (evidence for growth convergence) in the dark room
of economic growth, even though the hat may not exist (the task may be futile). A
second group believes it has found a black coat of divergence (evidence against
growth convergence) even though this object also may not exist (empirical reality,
including the nature of growth divergence, is ever more complex than the models used
to characterize it). The present paper seeks to light a candle to see whether there
is a hat, a coat or another object of identifiable clothing in the room of regional
and multi-country economic growth. After our examination, we find that the candle
power of applied econometrics is too low to clearly distinguish a black hat in the
huge dark room of economic growth. However, in our theory model, we find an
important new role for heterogeneity over time and across economies in the
transitional dynamics of economic growth; and, in our empirical work, these
transitional dynamics reveal an elusive shadow of the conditional convergence hat in
both US regional and inter-country OECD growth patterns.
Department of Economics Working Paper Series 251
http://hdl.handle.net/2292/197
The Elusive Empirical Shadow of Growth Convergence
oai:researchspace.auckland.ac.nz:2292/198
2019-01-08T00:35:20Z
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Bandyopadhyay, Debasis
author
Cheung, Chung-Sze Joyce
author
1998
In models of endogenous growth with financial development researchers typically find that a lower share of government ownership in the domestic financial sector leads to a greater efficiency and a higher rate of growth. We find no such evidence in the economies of the APEC. A greater privatisation of financial intermediaries in the APEC has only led to a greater volume of capital without any significant change in the overall efficiency. Nevertheless, a significant improvement in efficiency in the APEC has come from a greater access of the member countries to the international credit market. This finding implies that the real growth in East Asia should continue despite the recent problems of the domestic financial intermediaries, provided the region's access to international credit market continues to grow under the umbrella of APEC.
Department of Economics Working Paper Series 174
http://hdl.handle.net/2292/198
Financial Development and Growth: Can the APEC Experience Offer A Lesson for Asia
oai:researchspace.auckland.ac.nz:2292/199
2019-01-08T00:35:28Z
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Aoki, Reiko
author
Kubo, Kensuke
author
Yamane, Hiroko
author
2006
The introduction of pharmaceutical product patents in India and other
developing countries is expected to have a significant effect on public health and
local pharmaceutical industries. This paper is an attempt to draw implications
from the historical experience of Japan when it introduced product patents in 1976.
In Japan, narrow patents and promotion of cross-licensing were effective tools
to keep drug prices in check while ensuring the introduction of new drugs.
Combined with a specially conceived health insurance scheme, this allowed the
emergence of drugs for diseases that particularly affect the Japanese population.
While the global pharmaceutical market surrounding India today differs
considerably from that of the 1970's, the Japanese experience offers a policy option
that may profitably be considered by India today. The Indian patent system
emphasizes the patentability requirement in contrast to the Japanese patent policy
which relied on narrow patents and extensive licensing. R & D by local firms and
the development of local products may be promoted more effectively under the
Japanese model.
Department of Economics Working Paper Series 261
http://hdl.handle.net/2292/199
Indian Patent Policy and Public Health:Implications from the Japanese Experience
oai:researchspace.auckland.ac.nz:2292/200
2019-01-08T00:35:35Z
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Hazledine, Tim
author
2000
Why should government fund the arts? It should not do so because it wishes to prescribe (or proscribe) what artists produce. It should fund because it wants more art more, that is, than the market (private transactions between the artist and their public) would supply if left to itself. The market falls short because the consumption of art generates 'externalities' -- benefits to third parties whose interests may not be fully taken into account in private transactions. These external effects range from culturebuilding,
through the value of the higher arts as an input to the applied arts and technology, to the educative role that consumption of the arts now has on our likelihood of being able to enjoy them in the future. Public benefits generally depend on the extent of private engagement in the arts, and policy and funding should therefore be aimed at fostering engagement _ not, as at present, be directed onto the artists themselves. The paper suggests a performance-based funding system which, at a relatively low administrative cost, would encourage artists and their producers to achieve higher levels of engagement by topping up their revenues from sales or box-office. The paper sketches applications of the funding system to literature, to the lively arts, and to the problematic 'glamorous megafauna' of the arts & culture scene, which currently soak up most of the arts budget. The paper also considers how to support avant garde art, which is probably not well suited to revenue based funding.
Department of Economics Working Paper Series 213
http://hdl.handle.net/2292/200
Arts Funding in New Zealand
oai:researchspace.auckland.ac.nz:2292/201
2015-09-03T23:15:00Z
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Chaudhuri, Ananish
author
Graziano, Sara
author
2003
We adopt an inter-generational approach to the public goods game where at the end of
each session one generation of subjects leave advice for the succeeding generation
via free form messages. Such advice can be private (advice left by one player in
generation t is given only to her immediate successor in generation t+1) or public
(advice left by players of generation t is made available to all members of
generation t+1). We find that when advice is public it generates a process of social
learning that helps increase contributions over time and also mitigates problems of
free riding. Our results suggest that contrary to game theoretic predictions,
communities may be able to achieve efficient or near efficient levels of public good
provision on the basis of private contributions.
Department of Economics Working Paper Series 246
http://hdl.handle.net/2292/201
Evolution of Conventions in an Experimental Public Goods Game with Private and Public
Knowledge of Advice
oai:researchspace.auckland.ac.nz:2292/202
2015-09-03T23:15:00Z
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Aoki, Reiko
author
Nagaoka, Sadao
author
2006
We provide an economic analysis of two types of research exemptions: (1) experimentation
and research on the patented subject matter, and (2) academic (or non-commercial)
research with the patented invention. We find that exemption for research on improving or
inventing-around the subject matter makes good economic sense in the context of perpetual
R & D competition, although it may not in the context of pioneer-follower innovation framework.
The best approach might be to provide broad research exemption on the research on
subject matter (more generally exemption for research using the knowledge disclosed in the
invention that is useful for improving its subject matter), while stronger protection is provided
for a pioneering invention in the product market in terms of the breadth of claims.
Exemption for experimentation on the subject matter for the purpose of verification of inventions
also is sensible. On the other hand, we find that research exemption is a blunt tool for
promoting academic research, with a negative effect on the development of research tool. In
addition, it is not clear whether research exemption is necessary for efficient and coordinated
price discrimination in favor of academic researches.
Department of Economics Working Paper Series 260
http://hdl.handle.net/2292/202
Economics of Research Exemption
oai:researchspace.auckland.ac.nz:2292/203
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Yu, Jun
author
Yang, Zhenlin
author
2002
This paper proposes a class of stochastic volatility (SV) models which offers an alternative to the one introduced in Andersen
(1994). The class encompasses all standard SV models that have appeared in the literature, including the well known lognormal model, and
allows us to empirically test all standard specifications in a convenient way. We develop a likelihood-based technique for analyzing the
class. Daily dollar/pound exchange rate data reject all the standard models and suggest evidence of nonlinear SV. An efficient algorithm
is proposed to study the implications of this nonlinear SV on pricing currency options and it is found that the lognormal model
overprices options.
Department of Economics Working Paper Series 229
http://hdl.handle.net/2292/203
A Class of Nonlinear Stochastic Volatility Models
oai:researchspace.auckland.ac.nz:2292/204
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Maani, Sholeh
author
Kalb, Guyonne
author
2005
A general international observation is that adolescents from disadvantaged families
are more likely to leave school at age 16. In this paper we extend the literature on
school-leaving decisions by using a new and extensive panel data set from New
Zealand; and by examining the effect of family income, and personal and
environmental characteristics since childhood on both academic performance and
subsequent schooling choices. Results obtained from single equations and joint
estimation, allowing for possible endogeneity of academic performance, reveal the
importance of the role of academic performance in models of demand for education.
Several factors that are at work for a long time, such as household income at
different points in time, influence the schoolleaving decision through academic
performance. These results point to the role that stimulating academic performance
may play in breaking cycles of disadvantage.
Department of Economics Working Paper Series 258
http://hdl.handle.net/2292/204
Academic Performance, Parental Income, and the Choice to Leave School at Age Sixteen
oai:researchspace.auckland.ac.nz:2292/205
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Knight, John
author
Satchell, Stephen
author
Yu, Jun
author
1999
This paper estimates the stochastic volatility model using the empirical characteristic function method. This procedure has the same asymptotic efficiency as maximum likelihood, and is thus a desirable method to use when the likelihood function is unknown. The stochastic volatility model has no closed form for its likelitiood but it does have a known characteristic function. A Monte Carlo study shows that thc empirical
characteristic function method is a viable procedure for the stochastic volatility model. An application is considered for S&P 500 daily returns. Our results suggest much lower persistence than is normally found.
Department of Economics Working Paper Series 199
http://hdl.handle.net/2292/205
Efficient Estimation of the Stochastic Volatility Model by the Empirical Characteristic Function
Method
oai:researchspace.auckland.ac.nz:2292/206
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Meyer, Renate
author
Yu, Jun
author
2000
This paper reviews the general Bayesian approach to parameter estimation in stochastic volatility models with posterior computations performed by Gibbs sampling. The main purpose is to illustrate the ease with which the Bayesian stochastic volatility model can now be studied routinely via BUGS (Bayesian Inference Using Gibbs Sampling), a recently developed, user-friendly, and freely available software package. It is an ideal software tool for the exploratory phase of model building as any modifications of a model including changes of priors and sampling error distributions are readily realized with only minor changes of the code. BUGS automates the calculation of the full conditional posterior distributions using a model representation by directed acyclic graphs. It contains an expert system for choosing an efficient sampling method for each full conditional. Furthermore, software for convergence diagnostics and statistical summaries is available for the BUGS output. The BUGS implementation of a stochastic volatility model is illustrated using a time series of daily Pound/Dollar exchange rates.
Department of Economics Working Paper Series 211
http://hdl.handle.net/2292/206
BUGS for a Bayesian Analysis of Stochastic
Volatility Models
oai:researchspace.auckland.ac.nz:2292/207
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Bandyopadhyay, Debasis
author
Basu, Parantap
author
1999
An optimal redistributive tax-subsidy formula is derived for a growth model where inequality is endogenously driven by an adult's choice of occupation between work and management. The human capital or knowledge is the only engine of growth and there is externality associated with human capital B la Lucas (1988) and Romer (1990). How much available knowledge would be exploited in the economy depends on the proportion of innovators who are called managers in our model. A redistributive tax reform directly impacts this proportion of managers by influencing the occupational choice. A growth maximizing redistributive scheme involves an educational subsidy to the innovators financed by taxing workers. Such an optimal educational subsidy is, however, path dependent. An economy with excessively high proportion of managers warrants lesser educational subsidy.
Department of Economics Working Paper Series 192
http://hdl.handle.net/2292/207
Redistributive Tax and Growth in a Model with Discrete Occupation choice
oai:researchspace.auckland.ac.nz:2292/208
2015-09-03T23:15:00Z
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Aoki, Reiko
author
2001
We show that the effect of credible quality commitment on quality choice with Bertrand and Cournot competition in the product market
for quadratic cost of quality function (Aoki (2000)) holds for more general cost functions. Specifically, we compare the quality choices
with sequential and simultaneous quality choices when cost of quality q is kq n where k is a positive constant and n is any integer
greater than 2. The first mover will always choose to produce higher quality, even when cost of quality increases very rapidly (n is
large). All previously identifies qualitative comparisons between Bertrand and Cournot competition also extend to the generalized cost
function.
Department of Economics Working Paper Series 221
http://hdl.handle.net/2292/208
Equilibrium Quality Choices with Generalized
Smooth Cost Function
oai:researchspace.auckland.ac.nz:2292/209
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King, Ian
author
Kennes, John
author
Julien, Benoit
author
2001
We examine how much of the observed wage dispersion among similar workers can be explained as a consequence of a lack of coordination among employers. To do this, we construct a directed search model with
homogenous workers but where firms can create either good or bad jobs, aimed at either employed or unemployed workers. Workers in our
model can also sell their labor to the highest bidder. The stationary equilibrium has both technology dispersion ' different wages due
to different job qualities, and contract dispersion ' different wages due to different market experiences for workers. The equilibrium
is also constrained-efficient ' in stark contrast to undirected search models with technology dispersion. We then calibrate the model to
the US economy and show that the implied dispersion measures are quite close to those in the data.
Department of Economics Working Paper Series 224
http://hdl.handle.net/2292/209
Residual Wage Disparity in Directed Search Equilibrium
oai:researchspace.auckland.ac.nz:2292/210
2015-09-03T23:15:00Z
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Bandyopadhyay, Debasis
author
Basu, Parantap
author
2002
We present a neo-classical model that explores the determinants of growth-inequality correlation and attempts to reconcile the
seemingly conflicting evidence on the nature of growth-inequality relationship. The initial distribution of human capital determines the
long run income distribution and the growth rate by influencing the occupational choice of the agents. The steady state proportion of
adults that innovates and updates human capital is path-dependent. The output elasticity of skilled-labor, barriers to knowledge
spillovers, and the degree of redistribution determine the range of steady state equilibria. From a calibration experiment we report
that a combination of a skill-intensive technology, low barriers to knowledge spillovers, and a high degree of redistribution
characterize the group of countries with a positive growth-inequality
relationship. A negative relationship arises in the group with the opposite characteristics.
Department of Economics Working Paper Series 243
http://hdl.handle.net/2292/210
What Drives the Cross-Country Growth and Inequality Correlation?
oai:researchspace.auckland.ac.nz:2292/211
2015-09-03T23:15:00Z
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Poletti, Steve
author
Wright, Julian
author
2003
This paper builds on the existing literature on telecommunications interconnection
with non-linear pricing and hetrogenous agents, by explicitly taking into account
consumers' participation decision. This single change leads to dramatically
different conclusions regarding the scope for inclusion by interconnecting
networks.
Department of Economics Working Paper Series 249
http://hdl.handle.net/2292/211
Network Interconnection with Participation Constraints
oai:researchspace.auckland.ac.nz:2292/212
2015-09-03T23:15:00Z
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Maloney, Tim
author
Maani, Sholeh
author
Pacheco, Gael
author
2002
New Zealand panel data, which provide extensive information on the benefit histories of children and their parents, is used to
estimate an intergenerational correlation coefficient in welfare participation. Recent estimation techniques for addressing issues of
measurement error are applied in this analysis (Zimmerman 1992, Solon 1992, Bjorklund and Jantti 1997, Couch, D. and T. Dunn 1997,
Auginbaugh, 2000). The long-term benefit histories of parents and instrumental variable techniques provide lower and upper-bound
estimates of the true intergenerational correlation. A remarkably narrow band is estimated for this parameter, placing this correlation
coefficient at slightly less than 0.4. Approximately one-third of this effect appears to operate through the lower educational
attainment of children reared in families receiving social welfare benefits.
Department of Economics Working Paper Series 227
http://hdl.handle.net/2292/212
Intergenerational Welfare Participation in New Zealand
oai:researchspace.auckland.ac.nz:2292/213
2015-09-03T23:15:00Z
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Bandyopadhyay, Debasis
author
Basu, Parantap
author
1999
Growth-inequality relationship is reexamined in a neo-classical growth model with discrete occupational choice and incomplete markets for human capital. In our model a fiscal redistributive tax program directly impacts the steady state distribution of human capital by influencing the occupational choice of the agents. Growth and income inequality are endogenously driven by the evolution of the proportion of innovators in the
economy and the redistributive tax rate. The correlation between growth and factor shares depends crucially on the interaction between the redistributive tax policy and the initial distribution of human capital. The model predicts that the growth rate and income inequality are positively related across countries with different redistributive tax regimes. On the other hand, countries with different redistributive tax regimes as well as different initial distribution of human capital do not show any robust correlation between growth and inequality. The correlation depends on the skill intensity of the production technology and the degree of institutional barriers to knowledge diffusion. The lesson from the cross-country growth-inequality regression is that it is necessary to adequately control for the differences in initial distribution of human capital, and technology, as well as differences in redistributive tax regimes.
Department of Economics Working Paper Series 203
http://hdl.handle.net/2292/213
The Growth-Inequality Relationship in A Model with Discrete Occupational Choice and Redistributive Tax
oai:researchspace.auckland.ac.nz:2292/214
2015-09-03T23:15:00Z
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Julien, Benoit
author
Kennes, John
author
King, Ian
author
2002
We study the implementation of constrained-efficient allocations in labour markets where a basic coordination problem leads to an
equilibrium matching function. We argue that these allocations can be achieved in equilibrium if wages are determined by ex post
bidding. This holds true even in finite sized markets where the equilibrium matching function has decreasing returns to scale where
the Hosios rule does not apply to both with and without heterogeneity. This wage determination mechanism is similar to the one proposed
by Mortensen (1982) in a different setting.
Department of Economics Working Paper Series 231
http://hdl.handle.net/2292/214
The Mortensen Rule and Efficient Coordination Unemployment
oai:researchspace.auckland.ac.nz:2292/215
2015-09-03T23:15:00Z
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Rogers, Alan
author
1997
Most work on the asymptotic properties of least absolute deviations (LAD) estimators makes
use of the assumption that the common distribution of the disturbances has a density which is
finite and positive at zero. We consider the implications of weakening this assumption in a
regression setting. We see that the results obtained are similar in flavor to those obtained in a
least squares context when the disturbance variance is allowed to be infinite: both the shape
of the limiting distribution and the rate of convergence to it is affected in reasonably simple
and intuitive ways. As well as conventional regression models we outline results for some
simple autoregressive models which may have a unit root and/or infinite error variance.
Department of Economics Working Paper Series 172
http://hdl.handle.net/2292/215
A LAD Regression Under Non-Standard Conditions
oai:researchspace.auckland.ac.nz:2292/216
2015-09-03T23:15:00Z
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Aoki, Reiko
author
Hu, Jin
author
1999
We analyze litigation and settlement behavior in case of patent infringement using the Nash Bargaining Game framework. We show that litigation can be the Pareto efficient outcome. We also show that when there is settlement, the transfer payment from the defendant to the plaintiff is increasing in its own legal cost and decreasing in that of the plaintiff, reflecting the bargaining power on both sides. We also compare the American and English rules of cost allocation when legal costs are endogenously determined.
Department of Economics Working Paper Series 186
http://hdl.handle.net/2292/216
A Cooperative Game Approach to Patent Litigation, Settlement, and Allocation of Legal Costs
oai:researchspace.auckland.ac.nz:2292/217
2015-09-03T23:15:00Z
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Bluhm, Hagen
author
Yu, Jun
author
2001
In this paper we compare two basic approaches to forecast volatility in the German stock market. The first approach uses various
univariate time series techniques while the second approach makes use of volatility implied in option prices. The time series models
include the historical mean model, the exponentially weighted moving average (EWMA) model, four ARCH-type models and a stochastic
volatility (SV) model. Based on the utilization of volatility forecasts in option pricing and Value-at-Risk (VaR), various forecast
horizons and forecast error measurements are used to assess the ability of volatility forecasts. We show that the model rankings are sensitive to the error
measurements as well as the forecast horizons. The result indicates that it is difficult to state which method is the clear winner.
However, when option pricing is the primary interest, the SV model and implied volatility should be used. On the other hand, when VaR is
the objective, the ARCH-type models are useful. Furthermore, a trading strategy suggests that the time series models are not better than
the implied volatility in predicting volatility.
Department of Economics Working Paper Series 219
http://hdl.handle.net/2292/217
Forecasting Volatility:Evidence from the German Stock Market
oai:researchspace.auckland.ac.nz:2292/218
2015-09-03T23:15:00Z
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Hazledine, Tim
author
2000
The failure of the New Zealand Economic Revolution of 1984-91 to generate improved economic performance is puzzling and important, since the reforms enacted then have often been cited as a 'textbook' example of how to liberalise an economy, and since the preconditions for success (such as good government, secure property rights and stable capitalist institutions) were all in place, in contrast to the economies of the former Soviet bloc. This paper first documents the extent of failure, and then attempts to explain it
theoretically. This is the story: The reform program can be seen as a massive application (or mis-application) of Principal/Agent Theory. The Principal is the small group of economic revolutionaries. The Agents are the people of NZ. The Principal_s sole object is economic efficiency. The Agents enjoy the fruits of efficiency, but also emjoy other things ('slack'), which conflict with efficient behaviour. The Principal introduces policies (deregulation, liberalisation, commercialisation) which raise the opportunity cost of non-
efficient behaviour in both private and public sectors. Unfortunately, the Principal has the 'wrong model' of how the economy functions. Slack does not just enter Agents' utility functions, it is also an input into production, where it appears as 'Forbearance' _ the flow variable associated with the stock concept known as
Social Capital (the ability of agents to achieve mutually beneficial outcomes through trusting and trustworthy behaviour). Thus, the Reforms actually reduced economic efficiency, for two reasons (1) they forced noncooperative behaviour on agents, and (2) they incurred direct costs of monitoring and enforcement to bring agents' behaviour into line with the principal's objectives. And the total welfare costs exceed the loss of economic efficiency (GDP), since disproportionately more utility-enhancing slack, or forbearance is
wiped out. The prediction of increased resources devoted to transaction cost activities, in particular management, is tested in a comparison of New Zealand and Australia (which did not go through such a radical reform process). The data do indeed show a substantial increase in the number of managers in NZ, relative to Australia.
Department of Economics Working Paper Series 207
http://hdl.handle.net/2292/218
Agency Theory Meets Social Capital: The Failure of the 1984-91 New Zealand Economic Revolution
oai:researchspace.auckland.ac.nz:2292/219
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Aoki, Reiko
author
Small, John
author
2002
We look at compulsory licensing of intellectual property as remedy
for anti-competitive practice. We identify aspects of intellectual
property that warrants a different remedy from those using general
definitions and remedies for essential facility. Based on the analysis,
we present a characterisation of optimal compulsory licensing for a
simple market.
Department of Economics Working Paper Series 235
http://hdl.handle.net/2292/219
Compulsory Licensing of Technology and the
Essential Facilities Doctrine
oai:researchspace.auckland.ac.nz:2292/220
2015-09-03T23:14:58Z
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Knight, John
author
Yu, Jun
author
1999
Since the empirical characteristic function is the Fourier transformation of the emipirical distribution function, it retains all the information in the sample but can overcome difficulties arising from the likelihood. This paper discusses an estimation method using the empirical characteristic function for stationary processes. Under some regularity conditions, the resulting estimators are shown to be consistent and asymptotically normal. The method is applied to estimate Gaussion ARMA models. The optimal weight functions and estimating equations are given for in detail. Monte Carlo evidence shows that thc empirical characteristic function method can work as well as the exact maximum likelihood method and outperforms the conditional maximum likelihood method.
Department of Economics Working Paper Series 201
http://hdl.handle.net/2292/220
Empirical Characteristic Function in Time Series Estimation
oai:researchspace.auckland.ac.nz:2292/221
2019-11-12T03:32:17Z
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Bandyopadhyay, Debasis
author
2004
Politicians fashionably argue in favour of financial development to promote economic
growth following the seminal study of King and Levine (1993a, 1993b). Financial
development, however, could come through alternative channels that are sometimes not
compatible in small open economics. A relatively popular channel promotes
privatisation of domestic financial intermediaries but with restrictions on foreign
ownership. The other competing channel works through foreign direct investment (FDI)
requiring foreign ownership of national assets. Until the last decade of
globalisation, from sixties through early nineties, in many APEC countries and
especially in the East Asia, privatisation of national banks went hand in hand with
a regime of financial repressions. Under that regime governments kept the domestic
interest rate above the world rate by imposing barriers against FDI. Recent trend in
globalisation creates a political tension between those who welcome and the others
who oppose FDI. This paper evaluates the relative contribution of those two
alternative channels of financial development to economic growth. The model of
analysis builds on King and Levine (1993b) but restricts its attention to small open
economies of the APEC. Contrary to the previous findings, privatisation of domestic
financial sector alone turns out to have a negative impact on the growth of
efficiency measured by the growth of total factor productivity. This discrepancy
could possibly be rationalised by a special characteristic of the APEC sample where
a negative effect on efficiency came from the regimes of financial repression that
blocked FDI. Financial integration led by FDI does bring the prospect of lower
economic growth due to increased business fluctuations especially for the small open
economies. Nevertheless, it is surprising to find that a significant improvement in
efficiency and growth came to the APEC nations through the international channel
with the flow of FDI. Consequently, barriers to globalisation out of a purely the
nationalist concerns may be ill fated even for small open economies.
Department of Economics Working Paper Series 257
http://hdl.handle.net/2292/221
How Financial Development Caused Economic Growth in the APEC: Financial Integration
with FDI OR Privatisation without FDI
oai:researchspace.auckland.ac.nz:2292/222
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Bandyopadhyay, Debasis
author
Yu, Jun
author
1999
We examine the interests among competing topics of macroeconomics by tracing publication frequencies of these topics as recorded in the EconLit database over the period from 1969 through 1996. We find some evidence in the data that the interests on a topic in the core journals relative to the periphery journals decreases as the topic gets old. We, however, find that an increasing interest on a topic in the periphery journals Granger causes an increase in interest on the same topic in the core journals but not vice versa. The evidence, therefore, suggests that the topics do not gradually diffuse from the core journals to the periphery
journals. Nevertheless, we find that one could economize their literature search
by focusing on that smaller set of core journals.
Department of Economics Working Paper Series 197
http://hdl.handle.net/2292/222
Do Topics Diffuse from Core to Periphery Journals?
oai:researchspace.auckland.ac.nz:2292/223
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Maloney, Tim
author
1998
New Zealand recently initiated sweeping reforms to its social welfare programmes by cutting benefits and tightening eligibility criteria. One of the objectives of these reforms was to provide incentives for people to enter or re-enter the labour force. Econometric analysis is used in this paper to isolate the actual effects of these benefit reforms on labour supply. Previous research in many counties has often failed to accurately measure the extent of these work disincentives, or to observe variation in these programmes that would allow this empirical analysis to take place. The structure of these benefit programmes in New Zealand, and the nature of these reforms offers a unique opportunity to identify these behavioural responses. Quarterly random samples of individuals between 1985 and 1995 are used to isolate the effects of these reforms, while controlling for a wide variety of other influences. This study finds compelling evidence that these benefit reforms resulted in a substantial increase in aggregate labour supply in this country.
Department of Economics Working Paper Series 180
http://hdl.handle.net/2292/223
The Impact of Recent Welfare Reforms on Labour Supply Behaviour In New Zealand
oai:researchspace.auckland.ac.nz:2292/224
2015-09-03T23:14:58Z
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Kao, Tina
author
2002
This paper analyses R&D competition among firms with incomplete
information. In a stochastic R&D game, firms possess private information
regarding their R&D progress. They can only observe the rival's R&D
investments, but not its actual R&D position, R&D investments thus
carry both investment and signalling effects. In this two-period model.
there are two possible regimes for the second period game: the complete
information regime and the signalling regime. In the signalling regime.
in order to credibly convey to the rival its first period research success,
the first mover has to over-invest. Both firms have higher profits in the
complete information regime. The game is in the signalling regime if the
difference bâ‚¬tween monopoly and duopoly profit is sufficiently large and
if the possibility of leapfrogging is high. For some parameter ranges, the
choice of the information regime is endogenous.
Department of Economics Working Paper Series 234
http://hdl.handle.net/2292/224
Asymmetric Information and R&D Competition
oai:researchspace.auckland.ac.nz:2292/225
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Endres, Anthony
author
Fleming, G.A.
author
1998
Ragnar Nurkse_s contributions in the 1940s provide rules for international policy coordination complementing the contemporary position outlined by the Chicago economist Henry Simons. Nurkse_s scheme was significantly different from Bretton Woods. Interwar currency and inflation experience underscored the ineffectiveness of sterilized intervention when proceeding with inconsistent monetary and fiscal policies and vague exchange rate commitments. Credible exchange rate rules are possible only with international coordination harmonized by inflation discipline. Nurkse uses an accelerationist, natural rate argument, thereby severely circumscribing attempts to subordinate monetary and fiscal policies to the growth of employment. Ultimately, countries participating in policy coordination must use macroeconomic policies to control the rate and variability of inflation. Nurkse_s scheme depends on the antiinflation and imported credibility messages embodied in his policy rules; insistence that rules be founded on publicly recognizable criteria; recognition of the NAIRU and negative view of trade restrictions and exchange controls. His analysis of policy coordination and scepticism regarding global schemes for international financial relations accord with received wisdom in the late twentieth century.
Department of Economics Working Paper Series 183
http://hdl.handle.net/2292/225
Ragnar Nurkse's Rule-Based Approach to
International Monetary Relations: Complementarities with
Chicago
oai:researchspace.auckland.ac.nz:2292/226
2015-06-04T23:51:15Z
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Neve, M.J.
author
Paknys, Robert
author
2006
An approximation technique for locating the surface- and leaky-wave poles for a lossy dielectric slab is presented. The problem is reduced to the simultaneous solution of two transcendental equations (for each of the perfect magnetic conductor (PMC) and perfect electric conductor (PEC) cases) which is shown to yield a simple approximate solution for the poles, and which can subsequently be refined using numerical optimization. The technique yields both surface-wave and leaky-wave poles, and results are presented for a typical example to demonstrate the approach. The greatest approximation accuracy was observed for surface-wave and leaky-wave poles well removed from the spectral gap. For poles either within or in close proximity to the spectral gap, an alternative iterative technique is proposed. Expressions for the number of proper plus improper surface-wave poles in a given problem are also derived.
IEEE Transactions on Antennas and Propagation 54(1):115-120 2006
0018-926X
http://hdl.handle.net/2292/226
10.1109/TAP.2005.861530
A technique for approximating the location of surface- and leaky-wave poles for a lossy dielectric slab
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