Pub Date : 2023-06-30DOI: 10.14505/jmef.v9.1(16).01
Alessandro Saccal
The economic literature presents a variety of empirical models of the structural impulse response function (SIRF) in real consumption and real output following changes in confidence or sentiment, particularly in the US and EA. This paper replicates them on the orbit of a neokeynesian dynamic stochastic general equilibrium (NK-DSGE) model characterized in particular by macroeconomic agents and derived from start to finish. Trust is specifically modeled as an endogenous variable characterized by a coalescence of three processes governed by a degree of volition, the processes being permanent technology, transient technology, and noise technology. The first two processes affect the actual production technology with a delay of one lag, while the third does not at all. The short-run responses to changes in confidence are shown whenever the degree of willingness allows confidence to change real consumption and aggregate labor, thus being non-negligible. Whenever the degree of volition was, by contrast, negligible, exogenous shocks in noise technology would cause no fluctuation in actual consumption and actual power.
{"title":"A role for confidence: volition regimes and news","authors":"Alessandro Saccal","doi":"10.14505/jmef.v9.1(16).01","DOIUrl":"https://doi.org/10.14505/jmef.v9.1(16).01","url":null,"abstract":"The economic literature presents a variety of empirical models of the structural impulse response function (SIRF) in real consumption and real output following changes in confidence or sentiment, particularly in the US and EA. This paper replicates them on the orbit of a neokeynesian dynamic stochastic general equilibrium (NK-DSGE) model characterized in particular by macroeconomic agents and derived from start to finish. Trust is specifically modeled as an endogenous variable characterized by a coalescence of three processes governed by a degree of volition, the processes being permanent technology, transient technology, and noise technology. The first two processes affect the actual production technology with a delay of one lag, while the third does not at all. The short-run responses to changes in confidence are shown whenever the degree of willingness allows confidence to change real consumption and aggregate labor, thus being non-negligible. Whenever the degree of volition was, by contrast, negligible, exogenous shocks in noise technology would cause no fluctuation in actual consumption and actual power.","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127287152","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-30DOI: 10.14505/jmef.v9.1(16).02
G. Ganchev
The present article focuses on the possible interpretation of the pi theorem of physics in the field of the economics' general equilibrium analysis. The physical units of the exchanged goods are de ned as fundamental units and the neoclassical prices as dimensionless derived numbers. Thus, the general equilibrium does not need money metrics, unspeci ed money market and the complementing inappropriate incorporation of the Walras Law. Further, the main function of money is not that of a unit of account, but a means of exchange. If such type of a money market is introduced, the Walras symmetry holds but in the sense that the positive aggregate excess demand on the goods market matches the negative excess demand on the money market. Distinction is de ned between neoclassical, relative and monetary prices. Additional conditions must be met to allow for a closed monetary circulation.
{"title":"The Buckingham’s π Theorem: Consequences for the Price Theory","authors":"G. Ganchev","doi":"10.14505/jmef.v9.1(16).02","DOIUrl":"https://doi.org/10.14505/jmef.v9.1(16).02","url":null,"abstract":"The present article focuses on the possible interpretation of the pi theorem of physics in the field of the economics' general equilibrium analysis. The physical units of the exchanged goods are de ned as fundamental units and the neoclassical prices as dimensionless derived numbers. Thus, the general equilibrium does not need money metrics, unspeci ed money market and the complementing inappropriate incorporation of the Walras Law. Further, the main function of money is not that of a unit of account, but a means of exchange. If such type of a money market is introduced, the Walras symmetry holds but in the sense that the positive aggregate excess demand on the goods market matches the negative excess demand on the money market. Distinction is de ned between neoclassical, relative and monetary prices. Additional conditions must be met to allow for a closed monetary circulation.","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115242939","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.14505/jmef.v8.2(15).03
R. Sproule
The Wold-Juréen (1953) utility function serves as an exemplar of those utility functions which have the potential to yield a Giffen good. As such, this utility function has contributed much to the overall development of consumer theory. Because of the said success of the Wold-Juréen (1953) utility function, it seems only natural to ask this: can the Wold-Juréen (1953) functional form also serve as an ex- emplar of those production functions which have the potential to yield a Giffen factor? Since our review of the literature suggests that no such question has ever been posed, therein lies the purpose of the present paper.
{"title":"In Search of A Giffen Input: A Comprehensive Analysis of The Wold-Juréen (1953) Production Function","authors":"R. Sproule","doi":"10.14505/jmef.v8.2(15).03","DOIUrl":"https://doi.org/10.14505/jmef.v8.2(15).03","url":null,"abstract":"\u0000 \u0000 \u0000The Wold-Juréen (1953) utility function serves as an exemplar of those utility functions which have the potential to yield a Giffen good. As such, this utility function has contributed much to the overall development of consumer theory. Because of the said success of the Wold-Juréen (1953) utility function, it seems only natural to ask this: can the Wold-Juréen (1953) functional form also serve as an ex- emplar of those production functions which have the potential to yield a Giffen factor? Since our review of the literature suggests that no such question has ever been posed, therein lies the purpose of the present paper. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128730309","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.14505/jmef.v8.2(15).01
Aleksander Vasilev
This paper attempts to assess the size of the grey economy, and provide a decomposition by evasion type. The modelling approach utilizes a standard micro- founded general-equilibrium setup, which is augmented with a revenue-extraction mech- anism and a government sector. The model is calibrated to Bulgaria after the intro- duction of the currency board (1999-2018). A computational experiment performed within this setup estimates that on average, the size of total evasion is a bit more than one-fourth of output, an estimate which is in line with the figures provided in both Philip (2014) and the European Commission (2014). Two-thirds of the model- predicted evasion is a combined result of income- and social security evasion, while the rest is due to VAT evasion.
{"title":"Decomposing the Grey Economy in Bulgaria: A General-Equilibrium Analysis","authors":"Aleksander Vasilev","doi":"10.14505/jmef.v8.2(15).01","DOIUrl":"https://doi.org/10.14505/jmef.v8.2(15).01","url":null,"abstract":"\u0000 \u0000 \u0000This paper attempts to assess the size of the grey economy, and provide a decomposition by evasion type. The modelling approach utilizes a standard micro- founded general-equilibrium setup, which is augmented with a revenue-extraction mech- anism and a government sector. The model is calibrated to Bulgaria after the intro- duction of the currency board (1999-2018). A computational experiment performed within this setup estimates that on average, the size of total evasion is a bit more than one-fourth of output, an estimate which is in line with the figures provided in both Philip (2014) and the European Commission (2014). Two-thirds of the model- predicted evasion is a combined result of income- and social security evasion, while the rest is due to VAT evasion. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134254182","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.14505/jmef.v8.2(15).02
Alessandro Saccal
Abstract. The equation of exchange is derived from a standpoint encompassing the physics and economics thereof, whereby the maximisation of a money value function, increasing in real output and decreasing in the real money supply, while accounting for time and space, subjected to a money constraint, at the macroeconomic level, gives rise to an optimal level of real output thereby, expressing the liquidity demand coefficient as the inverse quotient of space over time. The fusion of such a liquidity demand coefficient expression with the money constraint, which is the equilibrium Cambridge equation, in turn gives rise to an equation for space, being the position of money, whose differentiation is precisely instantaneous money velocity and thence the exchange equation as presented by Fisher. The present analysis also derives money position on account of non-constant instantaneous money velocity as instantiated by Fisher, advancing a framework for the macroeconomy’s general money value function and money constraint in the process. It likewise advances simulations of non-constant average and instantaneous money velocity, with a particular application to a stylised closed macroeconomy. It finally proceeds to remodel instantaneous money velocity through the use of ordinary differential equations (ODEs) for the money equations of motion, both generally, by letting the sum of the three equal a corrected exponential random walk with drift, and through a money force model, of free accumulation with financial assets resistance. This work thus remarks in sum that money velocity as customarily calculated, taught and understood is not univocal.
{"title":"Mechanical Analyses and Derivations of Money Velocity","authors":"Alessandro Saccal","doi":"10.14505/jmef.v8.2(15).02","DOIUrl":"https://doi.org/10.14505/jmef.v8.2(15).02","url":null,"abstract":"\u0000 \u0000 \u0000Abstract. The equation of exchange is derived from a standpoint encompassing the physics and economics thereof, whereby the maximisation of a money value function, increasing in real output and decreasing in the real money supply, while accounting for time and space, subjected to a money constraint, at the macroeconomic level, gives rise to an optimal level of real output thereby, expressing the liquidity demand coefficient as the inverse quotient of space over time. The fusion of such a liquidity demand coefficient expression with the money constraint, which is the equilibrium Cambridge equation, in turn gives rise to an equation for space, being the position of money, whose differentiation is precisely instantaneous money velocity and thence the exchange equation as presented by Fisher. The present analysis also derives money position on account of non-constant instantaneous money velocity as instantiated by Fisher, advancing a framework for the macroeconomy’s general money value function and money constraint in the process. It likewise advances simulations of non-constant average and instantaneous money velocity, with a particular application to a stylised closed macroeconomy. It finally proceeds to remodel instantaneous money velocity through the use of ordinary differential equations (ODEs) for the money equations of motion, both generally, by letting the sum of the three equal a corrected exponential random walk with drift, and through a money force model, of free accumulation with financial assets resistance. This work thus remarks in sum that money velocity as customarily calculated, taught and understood is not univocal. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"79 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116753852","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.14505/jmef.v8.1(14).03
Alessandro Saccal
The following contributions are hereby worked: one mathematically formalises Mundell’s Impossible trio and Rodrik’s Globalisation paradox, supplying the latter with a taxonomy in terms of the current account; by means of Kaldor’s price endogeneity in output, one proves that external real money market disparity and trade generate external output mismatches and lead to autarky unless offset, using topology and dynamical systems; one characterises transfers and federalism and shows that all unitary states are federal polities and can merge into confederations; one demonstrates that the said external output mismatches can be only eluded via autarky or neutral- isation, irrespective of federalism; one discerns (i) artificial currency areas guaranteeing inter-regional external output growth equality and (ii) modern protectionism as two Nash equilibria, to wit, the mercantile dilemma, especially rationalising the nexus between the Gold standard, the Industrial revolution and the Great divergence therethrough.
{"title":"The mercantile dilemma: formalisations and historical conclusions","authors":"Alessandro Saccal","doi":"10.14505/jmef.v8.1(14).03","DOIUrl":"https://doi.org/10.14505/jmef.v8.1(14).03","url":null,"abstract":"\u0000 \u0000 \u0000The following contributions are hereby worked: one mathematically formalises Mundell’s Impossible trio and Rodrik’s Globalisation paradox, supplying the latter with a taxonomy in terms of the current account; by means of Kaldor’s price endogeneity in output, one proves that external real money market disparity and trade generate external output mismatches and lead to autarky unless offset, using topology and dynamical systems; one characterises transfers and federalism and shows that all unitary states are federal polities and can merge into confederations; one demonstrates that the said external output mismatches can be only eluded via autarky or neutral- isation, irrespective of federalism; one discerns (i) artificial currency areas guaranteeing inter-regional external output growth equality and (ii) modern protectionism as two Nash equilibria, to wit, the mercantile dilemma, especially rationalising the nexus between the Gold standard, the Industrial revolution and the Great divergence therethrough. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128567069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.14505/jmef.v8.1(14).02
S. Lahiri
In this note we provide a closed form utility function for gains that is S-shaped around the origin and satisfies the Friedman-Savage hypothesis. We obtain the corresponding Arrow–Pratt measure of absolute risk aversion (ARA) as well as Arrow–Pratt measure of relative risk aversion (RRA) for it.
{"title":"Utility function for monetary gains (and losses) satisfying Friedman-Savage hypothesis","authors":"S. Lahiri","doi":"10.14505/jmef.v8.1(14).02","DOIUrl":"https://doi.org/10.14505/jmef.v8.1(14).02","url":null,"abstract":"\u0000 \u0000 \u0000In this note we provide a closed form utility function for gains that is S-shaped around the origin and satisfies the Friedman-Savage hypothesis. We obtain the corresponding Arrow–Pratt measure of absolute risk aversion (ARA) as well as Arrow–Pratt measure of relative risk aversion (RRA) for it. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122306227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.14505/jmef.v8.1(14).01
Aleksandar Vasilev
Financial openness is introduced into a real-business-cycle setup aug- mented with a detailed government sector. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrangement (1999- 2020). The quantitative importance of financial openness is investigated for the stabi- lization of cyclical fluctuations in Bulgaria. The computational experiment performed in this paper reveals that greater financial openness increases the impact of technology shocks on output, investment, consumption, labor hours, and net exports. This am- plification effect is due to the following mechanism: openness provides a cheap access to foreign funds. Unfortunately, the new results come at odds with a major empirical observation, i.e. that consumption and net exports strongly pro-cyclical; the model, however, produces a countercyclical consumption, as well as net exports. Thus, such a setup is not yet ready to be used for policy analysis.
{"title":"A Real-Business-Cycle Model with Financial Liberalization: Lessons for Bulgaria (1999-2020)","authors":"Aleksandar Vasilev","doi":"10.14505/jmef.v8.1(14).01","DOIUrl":"https://doi.org/10.14505/jmef.v8.1(14).01","url":null,"abstract":"\u0000 \u0000 \u0000Financial openness is introduced into a real-business-cycle setup aug- mented with a detailed government sector. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrangement (1999- 2020). The quantitative importance of financial openness is investigated for the stabi- lization of cyclical fluctuations in Bulgaria. The computational experiment performed in this paper reveals that greater financial openness increases the impact of technology shocks on output, investment, consumption, labor hours, and net exports. This am- plification effect is due to the following mechanism: openness provides a cheap access to foreign funds. Unfortunately, the new results come at odds with a major empirical observation, i.e. that consumption and net exports strongly pro-cyclical; the model, however, produces a countercyclical consumption, as well as net exports. Thus, such a setup is not yet ready to be used for policy analysis. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130309617","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-31DOI: 10.14505/jmef.v7.2(13).01
Aleksandar Vasilev
Robots are introduced into a real-business-cycle setup augmented with a detailed government sector. Robots are modeled as an imperfect substitute for labor services. The model is calibrated to Bulgarian data for the period following the intro- duction of the currency board arrangement (1999-2020). The quantitative importance of the presence of robots in the economy is investigated for business cycle fluctuations in Bulgaria. In the presence of robots, wages increase, but employment falls after a technology shock. However, for plausible parameter values, the effect is predicted to be quite small.
{"title":"A Real-Business-Cycle model with robots: Lessons for Bulgaria","authors":"Aleksandar Vasilev","doi":"10.14505/jmef.v7.2(13).01","DOIUrl":"https://doi.org/10.14505/jmef.v7.2(13).01","url":null,"abstract":"\u0000 \u0000 \u0000Robots are introduced into a real-business-cycle setup augmented with a detailed government sector. Robots are modeled as an imperfect substitute for labor services. The model is calibrated to Bulgarian data for the period following the intro- duction of the currency board arrangement (1999-2020). The quantitative importance of the presence of robots in the economy is investigated for business cycle fluctuations in Bulgaria. In the presence of robots, wages increase, but employment falls after a technology shock. However, for plausible parameter values, the effect is predicted to be quite small. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"196 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132483770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-31DOI: 10.14505/jmef.v7.2(13).03
Rosario D’Amico
In this work we look at one special case to provide a rational basis for the following assertion known as Statistical Law of Large Numbers: If an event E has a constant probability p of occurrence on any one trial, and has occurred m times in n trials, then, if the relative frequency of E, m/n, approaches the value of a limit point l and the accuracy of the approximation increases as the number of trials increases, we have l = p. The argument we propose is based on the concepts of “event” and “trial”, formulated in a recent paper by the author himself, and their direct implications.
在这项工作中，我们着眼于一个特殊的情况，为以下被称为大数统计定律的断言提供理性基础:如果一个事件E常数概率p(发生在任何一个审判,和发生m * n试验中,然后,如果E的相对频率,m / n, l方法极限点的价值和增加近似的准确性随着试验的数量增加,我们有l = p。我们提出的论点是基于“事件”的概念和“审判”,制定在最近的一篇论文作者本人,和他们的直接影响。
{"title":"Chance and The Statistical Law of Large Numbers","authors":"Rosario D’Amico","doi":"10.14505/jmef.v7.2(13).03","DOIUrl":"https://doi.org/10.14505/jmef.v7.2(13).03","url":null,"abstract":"\u0000 \u0000 \u0000In this work we look at one special case to provide a rational basis for the following assertion known as Statistical Law of Large Numbers: If an event E has a constant probability p of occurrence on any one trial, and has occurred m times in n trials, then, if the relative frequency of E, m/n, approaches the value of a limit point l and the accuracy of the approximation increases as the number of trials increases, we have l = p. The argument we propose is based on the concepts of “event” and “trial”, formulated in a recent paper by the author himself, and their direct implications. \u0000 \u0000 \u0000","PeriodicalId":367341,"journal":{"name":"Journal of Mathematical Economics and Finance","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129486249","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：