Classroom games in economics : a quantitative assessment of the 'beer game'

Using an experiment, I compare the use of the 'Beer Distribution' classroom game with the more traditional 'chalk and talk' approach to teach students about inventories and the macroeconomy. My empirical results confirm and extend our understanding of the relative strengths and weaknesses of the use of classroom games: the game tends to improve interest and motivation on average, though some students dislike their use; the game is effective at driving home its key messages, but it may wrongly lead students to disregard other important factors; the game is inferior where facts mastery or de nitional learning is required. Rather than an endorsement or a criticism of classroom games, the conclusion is cautionary advice on how to best make use of games within an overall course

Inventories in motion : a new approach to inventories over the business cycle

I propose an inventories-in-motion concept which represents a new approach to inventories over the business cycle. This channel has previously been ignored by macroeconomists. I build a general equilibrium business cycle model in which inventories arise naturally as a result of gaps between production of goods and their consumption as goods are distributed. These inventories are actively managed and adjusted to meet consumption and investment needs in the economy. Although conceptually very simple, I show that such inventory behaviour matches a number of stylised facts of aggregate inventories. Nonetheless, my model does not admit an important role for inventory management improvements in declining macroeconomic volatility in the last 30 years

Scale factor gage for fiber optics inspection device

Flexible wire device, fastened along outside of fiber bundle from viewing portion to tip, positions calibrated adjustable gage in field of view. Scale factor is determined from known magnification characteristics of fiber optics system or from graduations on gage tip

Estimating bayesian decision problems with heterogeneous priors

In many areas of economics there is a growing interest in how expertise and preferences drive individual and group decision making under uncertainty. Increasingly, we wish to estimate such models to quantify which of these drive decision making. In this paper we propose a new channel through which we can empirically identify expertise and preference parameters by using variation in decisions over heterogeneous priors. Relative to existing estimation approaches, our \PriorBased Identi cation" extends the possible environments which can be estimated, and also substantially improves the accuracy and precision of estimates in those environments which can be estimated using existing methods

Improving Statistical Language Model Performance with Automatically Generated Word Hierarchies

An automatic word classification system has been designed which processes word unigram and bigram frequency statistics extracted from a corpus of natural language utterances. The system implements a binary top-down form of word clustering which employs an average class mutual information metric. Resulting classifications are hierarchical, allowing variable class granularity. Words are represented as structural tags --- unique $n$-bit numbers the most significant bit-patterns of which incorporate class information. Access to a structural tag immediately provides access to all classification levels for the corresponding word. The classification system has successfully revealed some of the structure of English, from the phonemic to the semantic level. The system has been compared --- directly and indirectly --- with other recent word classification systems. Class based interpolated language models have been constructed to exploit the extra information supplied by the classifications and some experiments have shown that the new models improve model performance.Comment: 17 Page Paper. Self-extracting PostScript Fil

Policy Uncertainty and Precautionary Savings

In 1997 Chancellor Kohl proposed a major pension reform: he pushed the law through Parliament explaining that the German PAYG system had become unsustainable. One limitation of the new law - one that is crucial for our identification strategy - is that it left the generous pension entitlements of civil servants intact. The year after, in 1998, Kohl lost the elections and was replaced by Gerhard Shroeder. One of the first decisions of the new Chancellor was to revoke of the 1997 pension reform. We use the quasi-experiment of the adoption and subsequent revocation of the pension reform to study how households reacted to the increase in uncertainty about the future path of income that such an event produced. Our estimates are obtained from a diff-in-diff estimator: this helps us overcome the identification problem that often affects measures of precautionary saving. Departing from the majority of studies on precautionary saving we also analyze households' response in terms of labor market choices: we find evidence of a labor supply response by those workers who can use the margin offered by part-time employment.Pension Reform, Precautionary saving, uncertainty, Germany

Delayed Doves: MPC Voting Behaviour of Externals

The use of independent committees for the setting of interest rates, such as the Monetary Policy Committee (MPC) at the Bank of England, is quickly becoming the norm in developed economies. In this paper we examine the issue of appointing external members (members who are outside the staff of the central bank) to these committees. We construct a model of MPC voting behaviour, and show that members who begin voting for similar interest rates should not systematically diverge from each other at any future point. However, econometric results in fact show that external members initially vote in line with internal members, but after a year, begin voting for substantially lower interest rates. The robustness of this effect to including member fixed effects provides strong evidence that externals behave differently from internals because of institutional differences between the groups, and not some unobserved heterogeneity. We then examine whether career concerns can explain these findings, and conclude that they cannot.Monetary Policy Committee (MPC), Bank of England, Committee Voting,Signalling

The household effects of government spending

This paper provides new evidence on the effects of fiscal policy by studying, using household-level data, how households respond to shifts in government spending. Our identification strategy allows us to control for time-specific aggregate effects, such as the stance of monetary policy or the U.S.-wide business cycle. However, it potentially prevents us from estimating the wealth effects associated with a shift in spending. We find significant heterogeneity in households’ response to a spending shock; the effects appear vary over time depending, among other factors, on the state of business cycle and, at a lower frequency, on the composition of employment (such as the share of workers in part-time jobs). Shifts in spending could also have important distributional effects that are lost when estimating an aggregate multiplier. Heads of households working relatively few (weekly) hours, for instance, suffer from a spending shock of the type we analyzed: their consumption falls, their hours increase and their real wages fall

Sampling methane in basalt on Earth and Mars

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