Research Outputs

Permanent URI for this communityhttps://hdl.handle.net/20.500.14288/2

Browse

Filters

1996 - 199927

Advanced Search

Filter by

Settings

End date: 1999Subject: search.filters.subject.Economics

Search Results

Now showing 1 - 10 of 27
  • Placeholder
    PublicationMetadata only
    Are technology shocks nonlinear?
    (Cambridge University Press (CUP), 1999) Ashley, Richard A.; Patterson, Douglas M.; Department of Economics; Altuğ, Sumru; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; N/A
    The behavior of postwar real U.S. GNP, the inputs to an aggregate production function, and several formulations of the associated Solow residuals for the presence of nonlinearities in their generating mechanisms are examined. Three different statistical tests for nonlinearity are implemented: the McLeod-Li test, the BDS test, and the Hinich bicovariance test. We find substantial evidence for nonlinearity in the generating mechanism of real CNP growth but no evidence for nonlinearity in the Solow residuals. We further find that the generating mechanism of the labor input series is nonlinear, whereas that of the capital services input appears to be linear. We therefore conclude that the observed nonlinearity in real output arises from nonlinearities in the labor markets, not from nonlinearities in the technical shocks driving the system. Finally, we investigate the source of the nonlinearities in the labor markets by examining simulated data from a model of the Dutch economy with asymmetric adjustment costs.
  • Placeholder
    PublicationMetadata only
    Can pre-arranged matches be avoided in two-sided matching markets?
    (Academic Press Inc, 1999) Department of Economics; Sönmez, Tayfun; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; N/A
    We study manipulation via pre-arranged matches in the context of centralized two-sided matching markets. We show that the solution that is used to match the hospitals and medical residents in the United States, namely the hospital-optimal stable rule, is manipulable in this way. Unfortunately this is a general problem: We show that there is no solution that is both stable and non-manipulable.
  • Placeholder
    PublicationMetadata only
    Central Asia in transition: dilemmas of political and economic development - rumer,b
    (Routledge Journals, Taylor and Francis Ltd, 1997) N/A; Department of International Relations; Kubicek, Paul J.; Faculty Member; Department of International Relations; College of Administrative Sciences and Economics; N/A
    N/A
  • Placeholder
    PublicationMetadata only
    Competitiveness of Turkish SMSEs in the customs union
    (Elsevier Science Bv, 1997) Erzan, Refik; N/A; Filiztekin, Alpay; Faculty Member; N/A; N/A
    As a basis for adjustment policies in Turkey, it is assumed that the impact of the Customs Union will be more severe on small- and medium-scale enterprises (SMSEs) in comparison with large establishments. The paper first studies growth in value added and productivity in Turkish manufacturing with respect to industry and size; then scrutinizes the hypothesis above by analyzing the vulnerability of firms depending on their sizes. The effects of the Customs Union on economic environment manifest themselves in terms of the level of protection, import penetration, the wage level, exchange rates and exchange rate volatility; and, changes in domestic and foreign demand, and credit availability. The paper analyzes the impact of these changes on firms' performances. Panel data techniques are used in the estimations. (C) 1997 Elsevier Science B.V.
  • Placeholder
    PublicationMetadata only
    Cost uncertainty, taxation, and irreversible investment
    (Springer-Verlag Berlin, 1999) Demers, FS; Demers, M; Department of Economics; Altuğ, Sumru; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; N/A
    We examine the impact of learning about the unknown costs of investment on irreversible investment decisions, and show that the presence of:learning increases the endogenous cost of adjustment and depresses investment. We demonstrate convergence of the state of information and capital stock to the ergodic set. Once learning is complete, in-contrast to the exogenous cost-of-adjustment model, a mean-preserving increase in risk raises the endogenous marginal adjustment cost, reducing investment and the steady-state capital stock. We use data on the U.S. economy to study the impact of uncertainty and risk in the determinants of the costs of investing. Among our Salient findings is that increases in uncertainty have a much larger impact quantitatively on investment than increases in risk. Thus, if firms are unsure about various aspects of the stochastic environment that they face, the reduction in investment is much larger compared to the case in which there are increases in the riskiness in the price of capital or Other determinants of the costs of investing.
  • Placeholder
    PublicationMetadata only
    Cox regression with alternative concepts of waiting time: the new orleans yellow fever epidemic of 1853
    (John Wiley & Sons Ltd, 1997) Pritchett, JB; Department of Economics; Tunalı, Fehmi İnsan; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; 105635
    Event data can often be analysed using different concepts of waiting time. Our application offers three choices: calendar-time, age, and duration of residence in New Orleans. We exploit the semi-parametric features of Cox regression and estimate parallel specifications in which mortality risk is treated as an arbitrary function of one of the three alternative time measures, while the remaining two enter the hazard parametrically. Comparisons of the parameter estimates with the corresponding estimates of the baseline hazards form the crux of a simple specification checking procedure. In our formal treatment we rely on Aalen's Multiplicative Intensity formulation and tackle complications such as left-truncation, functional form specification, and choice-based sampling.
  • Placeholder
    PublicationMetadata only
    Debt concentration and bargaining power: large banks, small banks, and secondary market prices
    (Wiley-Blackwell, 1999) N/A; N/A; N/A; N/A; N/A; N/A; N/A; N/A
    Commerical bank debts of developing countries are held by large international banks and smaller domestic banks. This paper investigates how debt concentration-the proportion of a country's debt held by large banks relative to small banks-affects the secondary market price for the se loans. We find that countries with higher concentrations have higher secondary-market prices. We explain this empirical finding in a bargaining model that endogenizes the maximum penalty that banks can credibly impose on a recalcitrant debtor. We show that the banks' bargaining power increases with the degree of debt concentration, thus increasing repayment and secondary-market prices.
  • Placeholder
    PublicationMetadata only
    House allocation with existing tenants
    (Academic Press Inc, 1999) Abdülkadiroğlu, Atila; Department of Economics; Sönmez, Tayfun; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; N/A
    In many real-life applications of house allocation problems, whenever an existing tenant wants to move, he needs to give up his current house before getting another one. This practice discourages existing tenants from such attempts and results in loss of potentially large gains from trade. Motivated by this observation, we propose a simple mechanism that is Pareto efficient, individually rational, and strategy-proof. Our approach is constructive and we provide two algorithms, each of which can be used to find the outcome of this mechanism. One additional merit of this mechanism is that it can accommodate any hierarchy of seniorities.
  • Placeholder
    PublicationMetadata only
    Is there persistence in the growth of manufactured exports? evidence from newly industrializing countries
    (Elsevier, 1997) Mody, Ashoka; Department of Economics; Yılmaz, Kamil; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; 6111
    Applying cointegration techniques in a panel data setting, we document persistent growth of manufactured exports from certain developing countries. To complement the investigation of persistence (measured by the country 'fixed-effects'), we analyze asymmetries in income elasticities: for all developing countries, the decline in exports with world income contraction is sharper than is the rise on the upswing; the decline is, however, especially pronounced for countries with low or negative persistence. The results are consistent with long-term buyer-supplier relationships that create 'insiders' and 'outsiders' in manufactured goods trading. Exports are also influenced by the transactional infrastructure (proxied by telecommunications penetration).
  • Thumbnail Image
    PublicationOpen Access
    Labor market implications of the demographic window of opportunity
    (1996) Pritchett, Jonathan B.; Department of Economics; Tunalı, Fehmi İnsan; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; 105635