Optimization Analysis of the U.S. Aggregate Consumption: A Goodness-of-Fit Approach

This paper examines the hypothesis of optimizing behavior of the U.S. consumers using quarterly and seasonally adjusted series on real consumer expenditures on eight commodity groups: clothing, durable goods, energy, food, housing, medical care, transportation, and others for the period of 1947 I through 1993 I. Following the Weak Axiom of Revealed Preference (WARP), a money-metric utility function is derived to calculate an efficiency index to determine the percentage difference between the observed cost of consumption and the optimum cost of consumption in each period of the sample. The empirical results provide evidence that the allocative efficiency in the U.S. has improved only slightly due to the wave of deregulations in the early 1980s. Our results are consistent with the predictions of the general theory of second best in showing that gains in the allocative efficiency may be minimal as long as many sectors of the economy remain partially or totally regulated

On Total Price Uncertainty and the Behavior of a Competitive Firm

In this paper, a general model of the competitive firm\u27s behavior under output and factor (total) price uncertainty is developed to evaluate the role of market interdependencies in analyzing long-run equilibrium conditions and comparative statics analysis of increased uncertainty in output and input prices. It is demonstrated that the results shown in the literature are a special case of the findings reported here and market interdependencies play a central role in determining the firm\u27s long-run equilibrium under uncertainty

Replacing UV with Blue Light during DNA Purification Increases the Efficiency of Ligation-Independent Cloning

Ligation-independent cloning is a simple method that provides several advantages over conventional cloning. However, the efficiency of ligation-independent cloning is considerably lower than that of conventional methods. Several studies have shown that competent cells used for ligation-independent cloning should preferably have a transformation efficiency of 106-107 cfu/μg DNA. Although such levels can be easily achieved using standard protocols with most Escherichia coli strains, some strains attain mush lower values. When such strains have to be used for ligation-independent cloning, certain measures need to be taken to avoid any situation that may further decrease the efficiency of the process. These measures, however, are usually time-consuming. This problem is exacerbated by the fact that some strains such as BL21 (DE3) appear to be intrinsically unsuited for ligation-independent cloning. Here we suggest that by avoiding DNA damage during purification simply by replacing UV transilluminators with blue light systems BL21 (DE3) cells with a transformation efficiency of 105 cfu/μg DNA can satisfactorily be used for ligation-independent cloning without any additional steps.HIGHLIGHTS•Using blue light instead of UV light increases the efficiency of LIC.•A simple LED blue light projector combined with a filter can be used for this purpose.•This approach is not recommended for applications that require higher sensitivity

Global Poverty and the United Nations

The impact of poverty on consumers\u27 lives has received considerable attention in the public policy and marketing literature, but primarily from the perspective of the United States. The purpose of this article is to examine global poverty using the multidimensional position advanced by the United Nations (UN). The authors provide a discussion of the history of the UN, from its founding during World War II to the present, with an emphasis on the resolutions, declarations, and conventions that guide its focus on poverty. Then, the authors present UN data on human development to create an understanding of the magnitude and dimensions of poverty worldwide. They close with recommendations for a specific research agenda for public policy and marketing scholars

The Use of Bankruptcy Forecasting Models in Teaching Applied Ratio Analysis in Investment and Financial Statement Analysis Courses

Financial ratio analysis is a topic covered in most business courses in accounting and finance, but the traditional methodology used suffers from what can be termed the cookbook approach. Students are typically assigned simple exercises at the end of chapters which involve the computation of ratios measuring liquidity, leverage, turnover, and profitability. Students are then asked to compare the calculated ratios to a given industry average. These are merely sterile exercises which fail to expose students to the application of financial analysis in real world scenarios. A more effective curriculum would incorporate a complete analysis of actual firms, using sophisticated techniques which have been proven to be more effective in assessing financial strength

Dynamic Analysis of Fiscal Policy in the United Kingdom

This paper studies the effects of fiscal stimuli on the real GDP of the United Kingdom for the period of 1997 through the first quarter of 2017. Structural vector autoregressive and vector error correction models are estimated. Impulse responses from both models provide support for the Keynesian view that fiscal stimuli are associated with rises in the real GDP. Variance decomposition analysis shows that over time, depending which model is considered; tax cuts impart a positive effect on the real GDP in the range of 5 to 20 percent. Government expenditure shocks account for 8 to 15 percent of variations in the real GDP based on the two models. The multipliers of tax cuts and government expenditures initially rise reaching a peak in the ninth quarter and decline to 1.60 and 1.74 in three years, respectively

The Exchange Value Of The Dollar And The U.S. Trade Balance: A Partial Equilibrium Empirical Investigation

The recent depreciation of the dollar against major currencies of the world, notably the euro, has kindled discussion on the causes of this phenomenon and the possible outcomes should it continue. Many politicians blame the rising U.S. current account deficit and some economists have questioned the sustainability of the current account deficit. This paper examines the relationship between the U.S. current account balance, the net U.S. international investment position, and the exchange value of the dollar. Our results show that there is a relationship between the exchange value of the dollar and the current account balance. However, our results do not show that the current account balance is solely responsible for changes in the exchange value of the dollar. This is not surprising given the many influences currently under investigation as possible explanations for the recent behavior of the dollar

Price Discovery In The Soybean Futures Market

This paper investigates the price discovery process between the nearby futures prices of soybean, soy meal, and soy oil contracts (Crush constituents) in the U.S.   Relationships between these commodities may bear important implications for trading strategies, market inefficiencies, or the derived demand theory.  Furthermore, our findings are relevant in light of market microstructure theories, which maintain that the price information disseminates from more liquid contracts.  Our VAR and bivariate GARCH model estimates suggest a strong bi-directional causality in Crush futures prices.  We also find that while soybean contracts bear the burden of convergence when the spread between soybean and soy meal contract prices widens, this is not true of soybean and soy oil contracts.  Furthermore, we show evidence of considerable volatility persistence for the three contracts and volatility spillover between soybean and other Crush constituent futures.  The statistical evidence suggests that information arrives in these markets simultaneously.  Our findings do not support the derived demand theory

International Evidence On Purchasing Power Parity Theory: A Partial Equilibrium Empirical Investigation

This paper tests the Purchasing Power Parity (PPP) theory in a partial equilibrium framework. Statistical tests are employed to test the PPP theory for floating exchange rates of the Australian and Canadian dollars, Swiss frank and the British pound. The study period spans the fourth quarter of 1974 through the fourth quarter of 2006. The Johansen and Juselieus test of cointegration supports a long-run relationship between inflation and exchange rate predicted by the PPP theory only for the bilateral exchange rates of the pound and the Australian dollar. This evidence suggests that the PPP in its strict theoretical sense in the case of the bilateral exchange rate of the US dollar and Australian dollar is rejected but not for the case of the exchange rate of the pound and US dollar. However, the Granger causality test further supports the findings of the cointegration test. It shows that in the short-run, the money supply and GDP ratios Granger cause the movements of this exchange rate