Price Theory Weyl, E. Glen
Journal of economic literature,
06/2019, Volume:
57, Issue:
2
Journal Article
Peer reviewed
I argue that there exists a coherent and relevant tradition in economic thought that I label “price theory.” I define it as neoclassical microeconomic analysis that reduces rich and often ...incompletely specified models into “prices” (approximately) sufficient to characterize solutions to simple allocative problems. I illustrate this definition by highlighting distinctively price theoretic approaches to prominent research practices (diagrams and problems sets) and substantive research topics (e.g. selection markets and media slant). I trace the origins of price theory from the early nineteenth century through its segregation into the Chicago School in the last quarter of the twentieth. I argue that price theory plays a valuable complementary role to two traditions, “reductionism” and “empiricism,” with which I contrast it and show how this contribution of price theory has fueled a resurgence in this style of research in fields ranging from market design to international trade. Approximations critical to price theory are less formally developed than tools used in other methodological traditions, suggesting a research agenda to clarify the accuracy and range of validity of these methods.
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The excitement of learning economics for the first time. The experience of a lifetime of teaching it. The Eighth Edition of Exploring Economics captures the excitement of learning economics for the ...first time through a lively and encouraging narrative that connects economics to the world in a way that is familiar to students. Author Robert L. Sexton draws on over 25 years of teaching experience to capture students' attention, focusing on core concepts and expertly weaving in examples from current events and popular culture to make even classic economic principles modern and relatable. The text sticks to the basics and applies a thoughtful learning design, segmenting its presentation into brief, visually appealing, self-contained sections that are easier for students to digest and retain compared to sprawling text. Thoughtfully placed section quizzes, interactive summaries, and problem sets help students check their comprehension at regular intervals and develop the critical thinking skills that will allow them to "think like economists." Combined with a complete teaching and learning package, Exploring Economics is sure to help you ignite your students' passion for the field and reveal its practical application in the world around them. A Complete Teaching & Learning Package Easy LMS Import SAGE coursepacks for instructors makes it easy to import our quality instructor and student resource content into your school's learning management system (LMS). Learn more. Online Resources SAGE edge for students, the companion website specifically designed for this text, offers a robust online environment with the learning tools and resources students need to succeed. Learn more.
Introduction During slow-wave sleep, episodic memories are reactivated and consolidated. Using the targeted memory reactivation (TMR) technique, we can facilitate this memory consolidation process by ...presenting the sensory stimuli that were paired with the episodic memories during slow-wave sleep. Several studies have shown the effectiveness of TMR in learning word lists; however, the field lacks data on whether TMR facilitates the learning of classroom materials or whether such effects are long-lasting. Methods Fifty college students (mean age=21.16±2.77, 70% female) completed a college-level microeconomics lecture while listening to classical music. After the lecture, when participants entered slow-wave sleep, we randomly assigned them to TMR (replay the identical classical music) or control (white noise) conditions. The next morning, all participants completed a microeconomics test which contained questions that they were trained to solve (trained questions) and questions that required application of learned principles (novel questions). Approximately nine months later, 31 participants completed a similar follow-up microeconomics test. Results We excluded participants who discontinued the study, experienced protocol deviations, or did not have music/white noise played during slow wave sleep (N=41 remaining). Prior to randomization, the two groups performed similarly during the lecture (control: 84.85±9.50%, TMR: 85.53±13.28%, p=.85). Importantly, the next morning, the TMR group outperformed the control group on the trained questions (control: 58.33±29.39%, TMR: 72.22±27.09%, p=.13) and novel questions (control: 28.79±26.93%, TMR: 47.37±31.83%, p=.05). This immediate benefit of TMR was not significantly sustained at the nine month follow-up for trained questions (control: 34.82±23.24%, TMR: 32.41±23.79%, p=.79) or novel questions (control: 11.11±11.88%, TMR: 22.22±26.80%, p=.20). Conclusion The benefits of slow-wave based TMR translate to complex, ecologically-valid educational learning materials. This benefit included application of learned principles to solve novel problems, which is key to academic success. However, because the effects of a single TMR session are short-lived, future research should test whether multiple sessions of TMR facilitates long-term learning outcomes in classroom settings. Support (If Any) N/A
Researchers make hundreds of decisions about data collection, preparation, and analysis in their research. We use a many‐analysts approach to measure the extent and impact of these decisions. Two ...published causal empirical results are replicated by seven replicators each. We find large differences in data preparation and analysis decisions, many of which would not likely be reported in a publication. No two replicators reported the same sample size. Statistical significance varied across replications, and for one of the studies the effect's sign varied as well. The standard deviation of estimates across replications was 3–4 times the mean reported standard error.
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Discounting behavior: A reconsideration Andersen, Steffen; Harrison, Glenn W.; Lau, Morten I. ...
European economic review,
10/2014, Volume:
71
Journal Article
Peer reviewed
Open access
We re-evaluate the theory, experimental design and econometrics behind claims that individuals exhibit non-constant discounting behavior. Theory points to the importance of controlling for the ...non-linearity of the utility function of individuals, since the discount rate is defined over time-dated utility flows and not flows of money. It also points to a menagerie of functional forms to characterize different types of non-constant discounting behavior. The implied experimental design calls for individuals to undertake several tasks to allow us to identify these models, and to several treatments such as multiple horizons and the effect of allowing for a front end delay on earlier payments. The implied econometrics calls for structural estimation of th`e theoretical models, allowing for joint estimation of utility functions and discounting functions. Using data collected from a representative sample of 413 adult Danes in 2009, we draw surprising conclusions. Assuming an exponential discounting model we estimate discount rates to be 9% on average. We find no evidence to support quasi-hyperbolic discounting or “fixed cost” discounting, and only modest evidence to support other specifications of non-constant discounting. Furthermore, the evidence for non-constant discounting, while statistically significant, is not economically significant in terms of the size of the estimated discount rates. We undertake extensive robustness checks on these findings, including a detailed review of the previous, comparable literature.
•We evaluate the theory and econometrics behind discounting behavior.•We use data from a representative sample of 413 adult Danes in 2009.•Assuming exponential discounting we estimate discount rates to be 9% on average.•We find no, convincing, evidence to support non-constant discounting.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
The pandemic and economic policy uncertainty Al‐Thaqeb, Saud Asaad; Algharabali, Barrak Ghanim; Alabdulghafour, Khaled Tareq
International journal of finance and economics,
July 2022, Volume:
27, Issue:
3
Journal Article
Peer reviewed
Open access
The events that occurred after the worldwide diffusion of COVID‐19 provide a real‐life example of how uncertainty can severely affect the global economy. This paper reviews literature on the negative ...impacts of the economic policy uncertainty index (EPU) on individuals, businesses, governments, and economies at the local and international levels. This reveals that a high EPU is associated with adverse effects on households, corporations, and governments, which tend to delay many financial decisions under high uncertainty, which leads to lower consumption, fewer issuances of debt, fewer investments, and higher unemployment. The effects of political and regulatory uncertainty also extend to the commodity markets, such as the adverse effects on both oil and gasoline markets, and can potentially create adverse impacts on the crypto‐currency market and its potential growth. We demonstrate that governmental uncertainty also affects financial, housing, and equity markets; debt issuances; and the entire economy. This underscores the importance of considering EPU as a risk factor. The association with several components of the global economy reflects not only the EPU index's critical influence, but also the importance of risk management. Our results lead us to consider the gravity of economic policy uncertainty and call for innovation across different sectors to mitigate its adverse effects.
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Entrepreneurial ecosystem elements Stam, Erik; van de Ven, Andrew
Small business economics,
02/2021, Volume:
56, Issue:
2
Journal Article
Peer reviewed
Open access
There is a growing interest in ecosystems as an approach for understanding the context of entrepreneurship at the macro level of an organizational community. It consists of all the interdependent ...actors and factors that enable and constrain entrepreneurship within a particular territory. Although growing in popularity, the entrepreneurial ecosystem concept remains loosely defined and measured. This paper shows the value of taking a systems view of the context of entrepreneurship: understanding entrepreneurial economies from a systems perspective. We use a systems framework for studying entrepreneurial ecosystems, develop a measurement instrument of its elements, and use this to compose an entrepreneurial ecosystem index to examine the quality of entrepreneurial ecosystems in the Netherlands. We find that the prevalence of high-growth firms in a region is strongly related to the quality of its entrepreneurial ecosystem. Strong interrelationships among the ecosystem elements reveal their interdependence and need for a systems perspective.
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CEKLJ, EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
We investigate the role of uncertainty in business cycles. First, we demonstrate that microeconomic uncertainty rises sharply during recessions, including during the Great Recession of 2007-2009. ...Second, we show that uncertainty shocks can generate drops in gross domestic product of around 2.5% in a dynamic stochastic general equilibrium model with heterogeneous firms. However, we also find that uncertainty shocks need to be supplemented by first-moment shocks to fit consumption over the cycle. So our data and simulations suggest recessions are best modelled as being driven by shocks with a negative first moment and a positive second moment. Finally, we show that increased uncertainty can make first-moment policies, like wage subsidies, temporarily less effective because firms become more cautious in responding to price changes.
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New Internet-based “sharing-economy” markets enable consumer-owners to rent out their durable goods to nonowners. We model such markets and explore their equilibria both in the short run, in which ...ownership decisions are fixed, and in the long run, in which ownership decisions can be changed. We find that sharing-economy markets always expand consumption and increase surplus, but may increase or decrease ownership. Regardless, ownership is decoupled from individual preferences in the long run, as the rental rates and the purchase prices of goods become equal. If there are costs of bringing unused capacity to the market, they are partially passed through, creating a bias toward ownership. To test our theoretical work empirically, we conduct a survey of consumers, finding broad support for our modeling assumptions. The survey also allows us to offer a partial decomposition of the bring-to-market costs, based on attributes that make a good more or less amenable to being shared.
This paper was accepted by Joshua Gans, business strategy.
Underlying entrepreneurship ecosystems is the implicit assumption that all entrepreneurs have equal access to resources, participation, and support, as well as an equal chance of a successful outcome ...(venture start-up). However in practice, this is not always the case. Research finds that when it comes to many aspects of the entrepreneurship ecosystem, women are at a disadvantage. In this paper, we offer a brief overview of current ecosystem frameworks pointing out where “gender” matters in ecosystems at the institutional, organizational, and individual levels. We go on to present a summary of the contributions to this special edition and conclude with suggestions for future research.
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CEKLJ, EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
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