68 research outputs found

    Wage Bargaining and Induced Technical Change in a Linear Economy: Model and Application to the US (1963-2003)

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    In a simple one-sector, two-class, fixed-proportions economy, wages are set through axiomatic bargaining a`la Nash (1950). As for choice of technology, firms choose the direction of factor augmentations to maximize the rate of unit cost reduction (Kennedy 1964, and more recently Funk 2002). The ag-gregate environment resulting by self-interested decisions made by economic agents is described by a two-dimensional dynamical system in the employment rate and output/capital ratio. The economy converges cyclically to a long-run equilibrium involving a Harrod-neutral profile of technical change, a constant rate of employment of labor, and constant input shares. The type of oscillations predicted by the model matches the available data on the United States (1963-2003). Finally, institutional change, as captured by variations in workers’ bargaining power, has a positive effect on the rate of output growth but a negative effect on employment.Bargaining, Induced Technical Change, Factor Shares, Employment.

    Wage Bargaining and Induced Technical Change in a Linear Economy: Model and Application to the US (1963-2003)

    Get PDF
    In a simple one-sector, two-class, fixed-proportions economy, wages are set through axiomatic bargaining a la Nash [1950]. As for choice of technology, firms choose the direction of factor augmentations to maximize the rate of unit cost reduction (Kennedy [1964], and more recently Funk [2002]). The aggregate environment resulting by self-interested decisions made by economic agents is described by a two-dimensional dynamical system in the employment rate and output/capital ratio. The economy converges cyclically to a long-run equilibrium involving a Harrod-neutral prole of technical change, a constant rate of employment of labor, and constant input shares. The type of oscillations predicted by the model matches the available data on the United States (1963-2003). Finally, institutional change, as captured by variations in workers' bargaining power, has a positive effect on the rate of output growth but a negative effect on employment.Bargaining; Induced Technical Change; Factor Shares; Employment

    Keeping up with the Joneses: Other-regarding Preferences and Endogenous Growth

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    We study a series of sustained growth models in which households' preferences are affected by the consumption of other households as summarized by average consumption. In endogenous growth models, the equilibrium paths involve lower savings and lower growth than the corresponding efficient paths. Both savings and growth are inversely related to the extent of social preferences. In semi-endogenous models, other-regarding preferences have no growth effects, but have positive level effects on the long-run research intensity, because they increase the market size for potential monopolists in the intermediate goods sector. To test the extent to which consumption is other-regarding, we use Consumer Expenditure Survey data: our identification strategy relies on a two-stage estimator that uses the Tax Reform Act of 1986 and the Omnibus Budget Reconciliation Act of 1993 as a positive and a negative consumption shocks to top incomes respectively. In the first stage, we use a difference-in-difference approach to exploit the exogenous variation in consumption caused by federal tax reform. We then use the predicted values for average within-cohort consumption by income deciles as an instrument to estimate the extent of social preferences. Our results point toward highly significant long-run `keeping up' effects on the order of 30%

    A walk in the statistical mechanical formulation of neural networks

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    Neural networks are nowadays both powerful operational tools (e.g., for pattern recognition, data mining, error correction codes) and complex theoretical models on the focus of scientific investigation. As for the research branch, neural networks are handled and studied by psychologists, neurobiologists, engineers, mathematicians and theoretical physicists. In particular, in theoretical physics, the key instrument for the quantitative analysis of neural networks is statistical mechanics. From this perspective, here, we first review attractor networks: starting from ferromagnets and spin-glass models, we discuss the underlying philosophy and we recover the strand paved by Hopfield, Amit-Gutfreund-Sompolinky. One step forward, we highlight the structural equivalence between Hopfield networks (modeling retrieval) and Boltzmann machines (modeling learning), hence realizing a deep bridge linking two inseparable aspects of biological and robotic spontaneous cognition. As a sideline, in this walk we derive two alternative (with respect to the original Hebb proposal) ways to recover the Hebbian paradigm, stemming from ferromagnets and from spin-glasses, respectively. Further, as these notes are thought of for an Engineering audience, we highlight also the mappings between ferromagnets and operational amplifiers and between antiferromagnets and flip-flops (as neural networks -built by op-amp and flip-flops- are particular spin-glasses and the latter are indeed combinations of ferromagnets and antiferromagnets), hoping that such a bridge plays as a concrete prescription to capture the beauty of robotics from the statistical mechanical perspective.Comment: Contribute to the proceeding of the conference: NCTA 2014. Contains 12 pages,7 figure

    Meta-stable states in the hierarchical Dyson model drive parallel processing in the hierarchical Hopfield network

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    In this paper we introduce and investigate the statistical mechanics of hierarchical neural networks: First, we approach these systems \`a la Mattis, by thinking at the Dyson model as a single-pattern hierarchical neural network and we discuss the stability of different retrievable states as predicted by the related self-consistencies obtained from a mean-field bound and from a bound that bypasses the mean-field limitation. The latter is worked out by properly reabsorbing fluctuations of the magnetization related to higher levels of the hierarchy into effective fields for the lower levels. Remarkably, mixing Amit's ansatz technique (to select candidate retrievable states) with the interpolation procedure (to solve for the free energy of these states) we prove that (due to gauge symmetry) the Dyson model accomplishes both serial and parallel processing. One step forward, we extend this scenario toward multiple stored patterns by implementing the Hebb prescription for learning within the couplings. This results in an Hopfield-like networks constrained on a hierarchical topology, for which, restricting to the low storage regime (where the number of patterns grows at most logarithmical with the amount of neurons), we prove the existence of the thermodynamic limit for the free energy and we give an explicit expression of its mean field bound and of the related improved boun

    Topological properties of hierarchical networks

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    Hierarchical networks are attracting a renewal interest for modelling the organization of a number of biological systems and for tackling the complexity of statistical mechanical models beyond mean-field limitations. Here we consider the Dyson hierarchical construction for ferromagnets, neural networks and spin-glasses, recently analyzed from a statistical-mechanics perspective, and we focus on the topological properties of the underlying structures. In particular, we find that such structures are weighted graphs that exhibit high degree of clustering and of modularity, with small spectral gap; the robustness of such features with respect to link removal is also studied. These outcomes are then discussed and related to the statistical mechanics scenario in full consistency. Lastly, we look at these weighted graphs as Markov chains and we show that in the limit of infinite size, the emergence of ergodicity breakdown for the stochastic process mirrors the emergence of meta-stabilities in the corresponding statistical mechanical analysis

    Optimal Induced Innovation and Growth with Congestion of a Limited Natural Resource

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    In a simple Neoclassical Growth Model with endogenous technical change, I expand on the hypothesis of Induced Innovation including a production externality from a xed input, called `land', which represents the carrying capacity of the earth's atmosphere. Land is assumed to be congested by the use of labor and capital in production. A market economy where land is free will fail to reach a steady state, and may end up in either of three possible cases: (i) a catastrophe driven by overaccumulation; (ii) a state in which Induced Innovation stops capital deepening but not environmental decline; (iii) a path of perpetual decumulation of capital resembling an industrial counterrevolution. A planned economy, instead, will assign a shadow-price to land, thus setting in motion the Induced Innovation engine and fostering land-augmenting technological progress which will reduce environmental stress. The unique equilibrium if this economy is found to be locally asymptotically stable in the numerical analysis for substitution elasticities smaller than 1. The corresponding direction of technical change is characterized by constant shares of all inputs, a positive growth rate of labor- and land-augmenting technologies, and by a rate of growth of capital-augmentation equal to zero

    Wage Bargaining and Induced Technical Change in a Linear Economy: Model and Application to the US (1963-2003)

    Get PDF
    In a simple one-sector, two-class, fixed-proportions economy, wages are set through axiomatic bargaining a la Nash [1950]. As for choice of technology, firms choose the direction of factor augmentations to maximize the rate of unit cost reduction (Kennedy [1964], and more recently Funk [2002]). The aggregate environment resulting by self-interested decisions made by economic agents is described by a two-dimensional dynamical system in the employment rate and output/capital ratio. The economy converges cyclically to a long-run equilibrium involving a Harrod-neutral prole of technical change, a constant rate of employment of labor, and constant input shares. The type of oscillations predicted by the model matches the available data on the United States (1963-2003). Finally, institutional change, as captured by variations in workers' bargaining power, has a positive effect on the rate of output growth but a negative effect on employment

    Wage Bargaining and Induced Technical Change in a Linear Economy: Model and Application to the US (1963-2003)

    Get PDF
    In a simple one-sector, two-class, fixed-proportions economy, wages are set through axiomatic bargaining a la Nash [1950]. As for choice of technology, firms choose the direction of factor augmentations to maximize the rate of unit cost reduction (Kennedy [1964], and more recently Funk [2002]). The aggregate environment resulting by self-interested decisions made by economic agents is described by a two-dimensional dynamical system in the employment rate and output/capital ratio. The economy converges cyclically to a long-run equilibrium involving a Harrod-neutral prole of technical change, a constant rate of employment of labor, and constant input shares. The type of oscillations predicted by the model matches the available data on the United States (1963-2003). Finally, institutional change, as captured by variations in workers' bargaining power, has a positive effect on the rate of output growth but a negative effect on employment
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