Nausicaa - Feminine Threat

Classic

How large are housing and financial wealth effects? A new approach

This paper presents a simple new method for measuring `wealth effects' on aggregate consumption. The method exploits the stickiness of consumption growth (sometimes interpreted as reflecting consumption `habits') to distinguish between immediate and eventual wealth effects. In U.S. data, we estimate that the immediate (next-quarter) marginal propensity to consume from a change in housing wealth is about 2 cents, with a final eventual effect around 9 cents, substantially larger than the effect of shocks to financial wealth. We argue that our method is preferable to cointegration-based approaches, because neither theory nor evidence supports faith in the existence of a stable cointegrating vector. JEL Classification: E21, E32, C22asset prices, Consumption Dynamics, housing wealth, wealth effect

How Large Is the Housing Wealth Effect? A New Approach

This paper presents a simple new method for estimating the size of ‘wealth effects?on aggregate consumption. The method exploits the well-documented sluggishness of consumption growth (often interpreted as ‘habits?in the asset pricing literature) to distinguish between short-run and long-run wealth effects. In U.S. data, we estimate that the immediate (next-quarter) marginal propensity to consume from a $1 change in housing wealth is about 2 cents, with a final longrun effect around 9 cents. Consistent with most recent studies, we find a housing wealth effect that is substantially larger than the stock wealth effect. We believe that our approach has sounder theoretical foundations than the currently popular cointegration-based estimation methods, because neither theory nor evidence provides any reason for faith in the existence of a stable cointegrating vector.

Variable convalescence and therapy after cadaveric renal transplantation under cyclosporin A and steroids

The postoperative convalescence period was analyzed for 42 consecutive patients who had cadaveric renal transplantation under therapy with cyclosporin A and steroids. Twenty-two of the patients underwent transplantation for the first time, and the other 20 had retransplantation. None of the recipients has died. With follow-up period of two to eight months, the survival rate of grafts is 96 per cent after first transplantation and 85 per cent after retransplantation. Immunosuppression with a standard regimen was used for all patients at the outset. Early convalescence was highly variable, often necessitating adjustments of cyclosporin A and steroid dosage to accommodate the possibilities of rejection or cyclosporin A nephrotoxicity, or both, simultaneously. Management problems were more frequent and complex in patients undergoing retransplantation. From the results, a classification of convalescence patterns was evolved, with recommendations about how standardized initial therapy should be adjusted if the renal graft does not function promptly or deteriorates later

Multinationals, Tax Holidays, and Technology Transfer

Host country governments often grant investment incentives to foreign firms locating in their territories. We show that such preferential treatment of foreign firms can facilitate transfer of foreign technology, induce entry by the local firm, and increase host country welfare. However, this pro-competitive result occurs when preferential treatment is granted for a limited time; i.e., it takes the form of tax holidays, and is absent under permanent tax concessions.

The Malleability of Undiscounted Utilitarianism as a Criterion of Intergenerational Justice

Undiscounted utilitarianism as a criterion of intergeneration justice has been questioned for different reasons: It has been argued (1) that any complete ordering of allocations with an infinite number of generations guaranteeing an optimal allocation must involve discounting, and (2) that undiscounted utilitarianism subjects the present generation to heavy demands and leads to outcomes that do not appeal to our ethical intuitions. In a previous work (Asheim, Buchholz & Tungodden, forthcoming in J. Env. Econ. Man.) we have shown that equal treatment of different generations is not incompatible with the existence of maximal allocations, given that one considers technologies that are productive (in a given sense). In this paper we consider the second argument. We show within three classes of technologies (linear, Ramsey and Dasgupta-Heal-Solow tech-nologies) that undiscounted utilitarianism is so malleable that any efficient and non-decreasing allocation can be the unique optimum given the utilitarian criterion, provided that the utility function is appropriately chosen. Hence, undiscounted utilitarianism allows for optimal allocations and need not lead to unequal distributions imposing a too heavy burden on the present generation.Utilitarianism, intergenerational justice

Optimal and Myopic Information Acquisition

We consider the problem of optimal dynamic information acquisition from many correlated information sources. Each period, the decision-maker jointly takes an action and allocates a fixed number of observations across the available sources. His payoff depends on the actions taken and on an unknown state. In the canonical setting of jointly normal information sources, we show that the optimal dynamic information acquisition rule proceeds myopically after finitely many periods. If signals are acquired in large blocks each period, then the optimal rule turns out to be myopic from period 1. These results demonstrate the possibility of robust and "simple" optimal information acquisition, and simplify the analysis of dynamic information acquisition in a widely used informational environment

America's North Coast: A Benefit-Cost Analysis of a Program to Protect and Restore the Great Lakes

Examines the baseline ecological conditions of the Great Lakes and offers a plan for the area's environmental protection and restoration. Demonstrates how a restoration program can provide economic benefits that substantially exceed its costs