Michael Panik

University of Hartford · Department of Economics, Finance and Insurance

This chapter begins with a discussion on arithmetic progression and geometric progression. It explains the binomial formula, and the calculus of finite differences. The authors develop a method for transforming the logarithm of x to the base b to the logarithm of x to the base b to the logarithm of x to the base a. If on an arithmetic scale a seque...

Preface Review of Fundamentals of Statistics Bivariate Linear Regression and Correlation Misspecified Disturbance Terms Nonparametric Regression Logistic Regression. Bayesian Regression Robust Regression. Fuzzy Regression Random Coefficients Regression L1 and q-Quantile Regression Regression in a Spatial Domain Multiple Regression Normal Correlatio...

We introduce and estimate a growth model involving non-neutral technical change characterized by the presence of input-enhancing factors that vary across countries and serve to offset (and potentially eliminate) diminishing returns to capital. Our empirical results, however, indicate that diminishing returns to capital proves too strong to be overc...

The geometry of the Hicks-Slutsky income and substitution effect is framed in terms of the consumer's expenditure function and expenditure equation and thus can be studied with-out resorting to the indifference map of a direct utility function.

The convergence hypothesis maintains that an economy whose productivity lags behind other economies has a potential to grow faster. We introduce a procedure for testing this hypothesis and apply it to 24 OECD countries for the period 1950–1990. Our approach is an attempt to capture the economics of the convergence hypothesis, while avoiding the pro...

This paper employs a cone-homogeneous production function to approximate, as closely as desired, a ray-homogeneous production function. Points in input space are projected by an output scaling function on to a fixed ray and a Cobb-Douglas cone function is used to obtain an estimate of global returns to scale. The empirical results indicate that we...

This paper utilizes the concept of almosthomogeneity to obtain a generalization of the elasticity offactor substitution. From this, an expression for the biasto technical change is derived that explicitly includes theindividual degrees of input homogeneity. It is shown thatthe relative values of these homogeneity parameters canaffect the magnitude...

This paper examines Wagner's Law of Public Expenditure, which emphasizes economic growth as the fundamental determinant of public sector growth, using time series data drawn from the G7 industrialized countries over the sample period 1960 1993. It presents evidence on both the short- and long-run effects of growth in national income on government e...

This paper posits a ray-homogeneous production function having elasticity of scale and substitution that are not constant but dependent upon the input mix. An estimable form is derived as a local approximation near the point at which the magnitude of the input vector is unity (the homogeneous Cobb-Douglas case). Evidence of both increasing and decr...

This paper focuses on the possible “direct” effect in increased government size on fixed capital formation. That is, we hypothesize that as government increases its consumption as percentage of GDP, investors modify their investment plans accordingly. It is our contention that the direct effect of government size on fixed capital investment manifes...

Without Abstract

This paper views the relationship between a pair of primal‐dual linear programs as a correspondence between parameter and constraint sets. The indirect primal objective under optimality yields the dual problem which, via the inverse correspondence, enables us to recover the primal objective function. The procedure is illustrated by studying the geo...

This paper offers an alternative proof of the so-called fundamental theorem of the theory of games or the minimax theorem. The proof uses a particularization of Farkas' theorem involving the expression of one vector as a convex combination of a set of vectors. It is demonstrated that the minimax theorem holds as a consequence of this specialization...

This study examines the relationship between social security wealth and fungible wealth using relatively recent micro data. The authors find that a ceteris paribus increase in social security wealth has no effect on fungible wealth, suggesting that Ricardian equivalence holds. Of the individual wealth categories comprising fungible wealth, only pen...

This paper employs the activity analysis framework of linear programming to solve the decision problem of maximizing sales revenue in the presence of a minimum acceptable profit constraint. One of the advantages of using this model relative to the standard neoclassical approach is that, in addition to determining the firm's optimal product mix, we...

We now turn to an assortment of theorems which are generally characterized as “theorems of the alternative” or, in particular instances, so-called “transposition theorems.” Specifically, a theorem of the alternative involves two mutually exclusive systems of linear inequalities and/or equalities denoted simply as (I), (II). Moreover, it asserts tha...

A cone C in R n is a set of points such that if x ∈ C, then so is every nonnegative scalar multiple of x, i.e., if x ∈C, then λx ∈C for 0 ≤ λ∈ R, x ∈ R n (see Figure 4.1.a for C in R 2). If we consider the set of points X = {x}, then the cone generated by X is C = {y|y = λx, 0 ≤ λ∈ R, x ∈X}. And if 0 ∉ X and for each y(≠0) ∈C there are unique x ∈X...

Consider the simultaneous linear system Ax = b where A is of order (m x n) and ρ(A) = ρ[A, b] (the system is consistent). If m < n, then we have an underdetermined equation system which, given that it is consistent, possesses an infinite number of particular solutions. Furthermore, let ρ(A) = m so that Ax = b is consistent for every b and none of t...

This paper relaxes the assumption that the production activities in a linear profit maximization model are independent. In particular, it is shown that certain types of production externalities arising in one or more activities may adversely affect the efficiency of others. The said externalities may be either of the private or collective variety.

The well-known Farkas’ theorem of the alternative for nonnegative solutions of non-homogeneous equations, in which we have a necessary and sufficient condition for a vector to be expressed as a “nonnegative linear combination” of a set of vectors, will be extended to the case where a given vector is expressible as “convex combination” of a set of v...

Summary Output learning is incorporated into a short-run static cost-minimizing model of the multiproduct, multifactor firm which employs a fixed-coefficients technology. The firm's output processes or activities are ultimately specified as functions of the activity variables themselves, thus rentering a generalization to a concave program. A Lagra...

This study presents a multi-activity profit-maximization model which includes a set of zero-one activity switching variables. The contribution of these variables to total cost, in the form of fixed charges, provides a departure from the usual necessary and sufficient conditions for optimality. In particular, under certain conditions a system of pen...

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