One for all, all for one---von Neumann, Wald, Rawls, and Pareto

Applications of the maximin criterion extend beyond economics to statistics, computer science, politics, and operations research. However, the maximin criterion---be it von Neumann's, Wald's, or Rawls'---draws fierce criticism due to its extremely pessimistic stance. I propose a novel concept, dubbed the optimin criterion, which is based on (Pareto) optimizing the worst-case payoffs of tacit agreements. The optimin criterion generalizes and unifies results in various fields: It not only coincides with (i) Wald's statistical decision-making criterion when Nature is antagonistic, (ii) the core in cooperative games when the core is nonempty, though it exists even if the core is empty, but it also generalizes (iii) Nash equilibrium in $n$-person constant-sum games, (iv) stable matchings in matching models, and (v) competitive equilibrium in the Arrow-Debreu economy. Moreover, every Nash equilibrium satisfies the optimin criterion in an auxiliary game

Demographic Divide and Labor Migration in the Euro-Mediterranean Region

This paper provides a demographic outlook of the Euro-Mediterranean region and then shows the economic and fiscal consequences of such demographic differences within a two-region model with international labor mobility. International labor mobility is also examined through an externalities framework where brain drain from migration could be taxed by the home countries. Taxing the brain drain has a substantial limiting effect on labor migration and a small negative effect on per worker growth. On the other hand, it could be a solution to the negative externality problem associated with brain drain. It is also found that such tax can raise substantial tax revenue for the SMCs which could be used to enhance human capital in the region.demographic divide, demographic deficit, population aging, youth bulge, labor mobility, brain drain, overlapping generations, endogenous tax policy, Mediterranean region

Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective

This paper uses an overlapping generations model with international labor mobility and a politically responsive fiscal policy to examine aging in developed and developing regions. Migrant workers change the political structure composed of young and elderly voters in both labor-receiving and labor-sending countries. Numerical simulations show that the developed region benefits more from international labor mobility through the contribution of migrant workers as laborers, savers, and voters. The developing region experiences significant growth in all specifications but benefit more under international capital mobility. Restricting political participation of migrant workers in the developed region produces inferior growth results.population aging, overlapping generations, endogenous fiscal policy, international labor mobility, international capital mobility

An Improved Action for Heavy Quarks

We extend the Fermilab method for heavy quarks to include all interactions of dimension six in the action. We discuss a subtlety in the power counting, which implies that, for heavy quarks, certain interactions of dimension seven are commensurate with some of those of dimension six. We then present tree-level matching conditions obtained from calculating the Compton scattering amplitude for (lattice) QCD. When the matching conditions have been applied, the improved action removes (tree-level) discretization errors of order $a^2\bm{p}^3/m_Q$ and $a^3\bm{p}^3$.Comment: 1+5 pp., contribution to Lattice 2006(Quark Masses, Gauge Couplings, and Renormalization

Property Value Assessment Growth Limits, Tax Base Erosion and Regional In-Migration

In 1994 a limit on the growth of property values for tax purposes was imposed in Michigan. One consequence of the newly imposed assessment growth cap was an emerging differential in tax prices between potential new property owners and long-time property owners. The purpose of this paper is to examine the impact of this growing tax price differential on migration patterns. Using county level data on migration activity over the 1994-2006 period, we present evidence that differential tax prices resulting from the assessment growth cap have reduced in-migration.regional migration, tax base erosion, property tax, Michigan

Local Decentralization and Economic Growth: Evidence from U.S. Metropolitan and Non-Metropolitan Regions

This paper extends the recent empirical literature on the relationship between local decentralization and growth using data from both metropolitan and non-metropolitan regions in the U.S. The analysis utilizes both metropolitan and non-metropolitan regions, and thus avoids the possible selection bias present in previous research. The results for non-metropolitan regions indicate a relatively weak or negative relationship between the local decentralization measures and local economic growth compared to a positive relationship suggested by a recent study on metropolitan regions. Results for the non-metro regions also suggest that there are different impacts across population and income than we observe for metropolitan regions.Decentralization, metropolitan, non-metropolitan, economic growth

An Object-Oriented Language-Database Integration Model: The Composition-Filters Approach

This paper introduces a new model, based on so-called object-composition filters, that uniformly integrates database-like features into an object-oriented language. The focus is on providing persistent dynamic data structures, data sharing, transactions, multiple views and associative access, integrated with the object-oriented paradigm. The main contribution is that the database-like features are part of this new object-oriented model, and therefore, are uniformly integrated with object-oriented features such as data abstraction, encapsulation, message passing and inheritance. This approach eliminates the problems associated with existing systems such as lack of reusability and extensibility for database operations, the violation of encapsulation, the need to define specific types such as sets, and the incapability to support multiple views. The model is illustrated through the object-oriented language Sina