91 results for The University of Auckland Library, Working or discussion paper

  • Public Disclosure of Patent Applications, R&D, and Welfare

    Aoki, Reiko; Spiegel, Yossi (1998)

    Working or discussion paper
    The University of Auckland Library

    In Europe and in Japan, patent applications are publicly disclosed after 18 month from the filing date regardless of whether a patent has been or will be registered. In the U.S. in contrast, patent applications are publicly disclosed only when a patent is granted. In this paper we examine the consequences of this difference for (i) firm's R&D and patenting behavior, (ii) consumers' surplus and social welfare, and (iii) the incentives of firms to innovate, in a setting where patent protection is imperfect in the sense that patent applications may be rejected and patents are not always upheld in court. The main conclusions are that public disclosure leads to fewer patent applications and fewer innovations, but for a given number of innovations, it raises the probability that new technologies will reach the product market and thereby enhances consumers' surplus and possibly total welfare as well .

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  • Estimation of a Self-Exciting Poisson Jump Diffusion Model by the Empirical Characteristic Function Method

    Yu, Jun (1999)

    Working or discussion paper
    The University of Auckland Library

    This paper proposes a new econometric methodology for the estimation of diffusion models that include a jump component. The jump component's arrival time is endogenously determined, reflecting past volatility in the data and deviations from economic fundamentals. Although the likelihood method does not have closed form for this model, we show that the characteristic function can be derived analytically and hence developed an empirical characteristic function method to estimate the system parameters. This procedure has the same asymptotic efficiency as maximum likelihood, and is thus a desirable method to use when the likelihood function is unknown. A Monte Carlo study shows that the empirical characteristic function method outperforms the GMM procedure for the model. An application is considered for S&P 500 daily returns.

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  • Panel Dynamic OLS Cointegration Vector Estimation and Long-Run Money Demand

    Mark, Nelson; Sul, Donggyu (2002)

    Working or discussion paper
    The University of Auckland Library

    Now published as a journal article in Oxford Bulletin of Economics & Statistics Volume 65 Issue 5 Page 655 - December 2003 doi:10.1111/j.1468-0084.2003.00066.x We study the panel DOLS estimator of a homogeneous cointegration vector for a balanced panel of N individuals observed over T time periods. Allowable heterogeneity across individuals include individual-specific time trends, individual-specific fixed effects and time- specific effects. The estimator is fully parametric, computationally convenient, and more precise than the single equation estimator. For fixed N as T approaches infinity, the estimator converges to a function of Brownian motions and the Wald statistic for testing a set of linear constraints has a limiting chi-square distribution. The estimator also has a Gaussian sequential limit distribution that is obtained first by letting T go to infinity then letting N go to infinity. In a series of Monte Carlo experiments, we find that the asymptotic distribution theory provides a reasonably close approximation to the exact finite sample distribution. We use panel dynamic OLS to estimate coefficients of the long-run money demand function from a panel of 19 countries with annual observations that span from 1957 to 1996. The estimated income elasticity is 1.08 (asymptotic s.e.=0.26) and the estimated interest rate semi-elasticity is -0.02 (asymptotic s.e.=0.01).

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  • Trade Liberalisation and Factor Returns

    Kao, Tina (2000)

    Working or discussion paper
    The University of Auckland Library

    This paper analyses the effects of New Zealand's trade liberalisation on its factor markets. Although the consensus among most existing empirical studies is that there is little contribution of trade in increasing wage inequality, disagreement remains regarding the appropriate methodology. Recognising the importance of taking account of general equihbrium considerations, this paper follows the factor content of trade formulation proposed by Deardorff and Staiger (1988) and Deardorff and Lattimore (1999a, b). It is found that, in contrast to the income distribution widening effect, Ncw Zealand's trade reforms have reduced skill premiums when the comparison is made between 1986 and 1996. This result is consistent with Deardorff and Lattimore (1999a, b). Furthermore Data of personal income distribution by qualifications are investigated. From 1986 to 1996, a tendency of income dstribution widening is found. If the relative factor returns and personal income distribution by qualifications are hlghly correlated, it suggests that trade liberatisation has helped reduce income inequality while somc other factors have led to the widening of the income distribution.

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  • The Role of Political Parties in the Organization of Congress: Theory and Evidence

    Boyce, John; Bischak, Diane (1998)

    Working or discussion paper
    The University of Auckland Library

    This paper considers a model of political two-party competition over multiple policies when each policy is the domain of a particular legislative committee. Each party is composed of members who differ in their ideological preferences over policies but who have similar weightings of the importance of particular policies. Each committee acts to select policies in its own domain, subject to approval by the floor. The parties select committee memberships to maximize the density-weighted joint utility of its members, subject to institutional restrictions on committee compositions. Parties may choose either to accommodate or confront one another in committee assignments. For issues of importance to only one party, accommodation is shown to be the optimal strategy, and the committee appears as a classical preference outlier. For policies important to both parties, confrontation occurs, and the committee membership will be a bipolar preference outlier. Interest group ratings data from the U.S. House of Representatives are utilized to support this theory.

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  • Indian Patent Policy and Public Health:Implications from the Japanese Experience

    Aoki, Reiko; Kubo, Kensuke; Yamane, Hiroko (2006)

    Working or discussion paper
    The University of Auckland Library

    The introduction of pharmaceutical product patents in India and other developing countries is expected to have a significant effect on public health and local pharmaceutical industries. This paper is an attempt to draw implications from the historical experience of Japan when it introduced product patents in 1976. In Japan, narrow patents and promotion of cross-licensing were effective tools to keep drug prices in check while ensuring the introduction of new drugs. Combined with a specially conceived health insurance scheme, this allowed the emergence of drugs for diseases that particularly affect the Japanese population. While the global pharmaceutical market surrounding India today differs considerably from that of the 1970's, the Japanese experience offers a policy option that may profitably be considered by India today. The Indian patent system emphasizes the patentability requirement in contrast to the Japanese patent policy which relied on narrow patents and extensive licensing. R & D by local firms and the development of local products may be promoted more effectively under the Japanese model.

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  • Arts Funding in New Zealand

    Hazledine, Tim (2000)

    Working or discussion paper
    The University of Auckland Library

    Why should government fund the arts? It should not do so because it wishes to prescribe (or proscribe) what artists produce. It should fund because it wants more art more, that is, than the market (private transactions between the artist and their public) would supply if left to itself. The market falls short because the consumption of art generates 'externalities' -- benefits to third parties whose interests may not be fully taken into account in private transactions. These external effects range from culturebuilding, through the value of the higher arts as an input to the applied arts and technology, to the educative role that consumption of the arts now has on our likelihood of being able to enjoy them in the future. Public benefits generally depend on the extent of private engagement in the arts, and policy and funding should therefore be aimed at fostering engagement _ not, as at present, be directed onto the artists themselves. The paper suggests a performance-based funding system which, at a relatively low administrative cost, would encourage artists and their producers to achieve higher levels of engagement by topping up their revenues from sales or box-office. The paper sketches applications of the funding system to literature, to the lively arts, and to the problematic 'glamorous megafauna' of the arts & culture scene, which currently soak up most of the arts budget. The paper also considers how to support avant garde art, which is probably not well suited to revenue based funding.

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  • The Growth-Inequality Relationship in A Model with Discrete Occupational Choice and Redistributive Tax

    Bandyopadhyay, Debasis; Basu, Parantap (1999)

    Working or discussion paper
    The University of Auckland Library

    Growth-inequality relationship is reexamined in a neo-classical growth model with discrete occupational choice and incomplete markets for human capital. In our model a fiscal redistributive tax program directly impacts the steady state distribution of human capital by influencing the occupational choice of the agents. Growth and income inequality are endogenously driven by the evolution of the proportion of innovators in the economy and the redistributive tax rate. The correlation between growth and factor shares depends crucially on the interaction between the redistributive tax policy and the initial distribution of human capital. The model predicts that the growth rate and income inequality are positively related across countries with different redistributive tax regimes. On the other hand, countries with different redistributive tax regimes as well as different initial distribution of human capital do not show any robust correlation between growth and inequality. The correlation depends on the skill intensity of the production technology and the degree of institutional barriers to knowledge diffusion. The lesson from the cross-country growth-inequality regression is that it is necessary to adequately control for the differences in initial distribution of human capital, and technology, as well as differences in redistributive tax regimes.

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  • Ragnar Nurkse's Rule-Based Approach to International Monetary Relations: Complementarities with Chicago

    Endres, Anthony; Fleming, G.A. (1998)

    Working or discussion paper
    The University of Auckland Library

    Ragnar Nurkse_s contributions in the 1940s provide rules for international policy coordination complementing the contemporary position outlined by the Chicago economist Henry Simons. Nurkse_s scheme was significantly different from Bretton Woods. Interwar currency and inflation experience underscored the ineffectiveness of sterilized intervention when proceeding with inconsistent monetary and fiscal policies and vague exchange rate commitments. Credible exchange rate rules are possible only with international coordination harmonized by inflation discipline. Nurkse uses an accelerationist, natural rate argument, thereby severely circumscribing attempts to subordinate monetary and fiscal policies to the growth of employment. Ultimately, countries participating in policy coordination must use macroeconomic policies to control the rate and variability of inflation. Nurkse_s scheme depends on the antiinflation and imported credibility messages embodied in his policy rules; insistence that rules be founded on publicly recognizable criteria; recognition of the NAIRU and negative view of trade restrictions and exchange controls. His analysis of policy coordination and scepticism regarding global schemes for international financial relations accord with received wisdom in the late twentieth century.

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  • Modern Theories of Entrepreneurial Behavior: An Appraisal

    Endres, Anthony; Woods, Christine (2003)

    Working or discussion paper
    The University of Auckland Library

    This paper compares three principal, contemporary theories of entrepreneurial decision making - neoclassical, Austrian and behavioral. We employ theory appraisal criteria made available in Fritz Machlup's (1967) celebrated article on alternative theories of the firm. The paper considers theories that treat sequences of behavior by which individual entrepreneurs reach decisions on two levels: the discovery of profit opportunities and their exploitation. We also consider how each theory characterizes the entrepreneur's decision making process by contrast with the posited behavior of other economic agents. Austrian theory is suited to explaining novel, adventurous behavior at the discovery stage. The algorithm for opportunity exploitation in both the neoclassical and Austrian approaches is a single-repertoire, optimization rule. Neoclassical theory is situated in frictionless, atomistic Walrasian markets and emphasizes mathematical tractability. Austrian and behavioral theories conceive entrepreneurial acts taking place in market processes understood as complex institutional phenomena. There are strong theoretical complementarities between Austrian and behavioral approaches; both approaches value descriptive accuracy, though the behavioralists place more weight on operational tractability. Austrians and behavioralists share an interest in heuristics; they emphasize the role of prior micro-level knowledge at the discovery stage. Currently there is no possibility of an all-encompassing theory of entrepreneurial behavior emerging in the literature.

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  • Oligopolisic Business-to-Business E-Market and Welfare

    Aoki, Reiko (2001)

    Working or discussion paper
    The University of Auckland Library

    We examine the effect of an oligopolistic upstream electronic market on upstream and downstream prices. The analysis highlights the two sources of competition that a firm that source from an electronic market (e-market firm) face: competition with less efficient firms that source traditionally (t-market firms) and competition among e-market firms. When size of the upstream e-market is small, the first effect dominates and there is higher profits with lower upstream prices in the e-market. When size of the emarket becomes very large, the second effect makes e-market firms less profitable than t-market firms even though e-market price may start to increase (as market size increases). As consequence, e-market will never completely eliminate the upstream t-market and downstream price can increase when e-market grows beyond a certain size.

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  • Evolution of IWI Organisations for the Management of Commercial Fisheries Assets

    Findlay, Marama (2000)

    Working or discussion paper
    The University of Auckland Library

    The following literature review is intended to provide a framework for a qualitative analysis of the factors influencing the evolution of the iwi organisations that own and manage commercial fisheries assets. The analysis will compare the empirical results with the factors that institutional economics suggests influence institutional design. The proposed research is intended to fill two gaps: firstly, it will enlarge the set of analytical tools that have been applied to understanding the development of the new iwi organisations; secondly, it will appraise a new, highly distinctive institutional form with a selection of theories from contemporary institutional economics. The paper contains an introduction to the new iwi organisations, a note on method and then surveys selected material from the institutional economics literature that seems most promising for exploring the evolution of iwi organisations. Although the paper is primarily a literature review, the notes on the new iwi organisations and research method are included to assist the explanation of how appropriate literature was selected. This stems from the view that successful research matches subject matter, method and theory. The paper closes by presenting a set of questions generated from the survey literature. which will be used to guide the fieldwork.

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  • Patent Licensing with Spillovers

    Aoki, Reiko; Tauman, Yair (1998)

    Working or discussion paper
    The University of Auckland Library

    The purpose of this paper is to study the effect of spillover on extent of licensing when cost reducing innovation is introduced and licensed to a number of oligopolistic firms. We characterize the equilibrium number of licenses that are sold through an auction. An increase in the number of licenses has two effects. First, it increases the competition between the licensees. Second, due to spillover, the non-licensees become more efficient contributing to even more competition. We find that despite these effects, a patentee of a significant innovation will sell more licenses when there is spillover than without spillover thereby inducing even more competition. In this case, consumer surplus will be greater with spillover. However, if the innovation is less significant, then the patentee will sell less licenses with spillover thereby restrict competition. In this case the market price will be higher and the consumer surplus will be smaller.

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  • Asymptotic Power Advantages of Long-Horizon Regressions

    Mark, Nelson; Sul, Donggyu (2002)

    Working or discussion paper
    The University of Auckland Library

    Local asymptotic power advantages are available for testing the hypothesis that the slope coefficient is zero in regressions of yt+k- yton xtfor k > 1, when { yt} ~ I(0) and {xt} ~ I(0). The advantages of these long-horizon regression tests accrue in empirically relevant regions of the admissible parameter space. In Monte Carlo experiments, small sample power advantages to long-horizon regression tests accrue in a region of the parameter space that is larger than that predicted by the asymptotic analysis.

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  • New Unit Root Asymptotics in the Presence of Deterministic Trends

    Phillips, Peter (1998)

    Working or discussion paper
    The University of Auckland Library

    Recent work by the author (1998) has shown that stochastic trends can be validly represented in empirical regressions in terms of deterministic functions of time. These representations offer an alternative mechanism for modelling stochastic trends. It is shown here that the alternate representations affect the asymptotics of all commonly used unit root tests in the presence of trends. In particular, the critical values of unit root tests diverge when the number of deterministic regressors K -+ rn as the sample size n + w. In such circumstances, use of conventional critical values based on fixed K will lead to rejection of the null of a unit root in favour of trend stationarity with probability one when the null is true. The results can be interpreted as saying that serious attempts to model trends by deterministic functions will always be successful and that these functions can validly represent stochastically trending data even when lagged variables are present in the regressor set, thereby undermining conventional unit root tests.

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  • Open and Closed: Some Historical Dimensions of New Zealand's Participation in the World Economy

    Jackson, Kenneth (2002)

    Working or discussion paper
    The University of Auckland Library

    (Opening paragraph) Openness, along with trade liberalisation, is currently seen as a major factor in producing economic growth and relatively high standards of living as conventionally measured by Gross Domestic Product (GDP) per capita. In the modern literature these two components have been described as: '' believed to have been central to the remarkable growth of industrial countries since the mid-20th century (Winters, 2000, p. 43).

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  • Foundations of Strategic Equilibrium

    Hillas, John; Kohlberg, Elon (2001)

    Working or discussion paper
    The University of Auckland Library

    (Introductory Paragraph) The central concept of noncooperative game theory is that of the strategic equilibrium (or Nash equilibrium, or noncooperative equilibrium). A strategic equilibrium is a profile of strategies or plans, one for each player, such that each player's strategy is optimal for him, given the strategies of the others.

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  • What Do Uncertainty-Averse Decision-Makers Believe? A Note

    Ryan, Matthew (1999)

    Working or discussion paper
    The University of Auckland Library

    The aim of this note is to plug an important gap in our understanding of the epistemic foundations of uncertainty-averse behavior. For Choquet expected utility maximizers (Schmeidler (1989)), the beliefs which motivate uncertainty-averse choice are frequently identified using Dow and Werlang's (1994) notion of support for convex capacities. Building on the work of Morris (1997), we present a new, preference-based belief operator which is is shown to characterize such epistemic inferences. This makes their behavioral foundations transparent, and enables readier comparison with alternative epistemic models for such behavior.

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  • Discrete Fourier Transforms of Fractional Processes August

    Phillips, Peter (1999)

    Working or discussion paper
    The University of Auckland Library

    Discrete Fourier transforms (dft's) of fractional processes are studied and a exact representation of the dft is given in terms of the component data. The new representation gives the frequency domain form of the model for a fractional process, and is particularly useful in analyzing the asymptotic behavior of the dft and periodogram in the nonstationary case when the memory parameter d > 1/2. Various asymptotic approximations are suggested. It is shown that smoothed periodogram spectral estimates remain consistent for frequencies away from the origin in the nonstationary case provided the memory parameter d < 1. When d = 1, the spectral estimates are inconsistent and converge weakly to random variates. Applications of the theory to log periodogram regression and local Whittle estimation of the memory parameter are discussed and some modified versions of these procedures are suggested.

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  • Dynamic Seemingly Unrelated Cointegrating Regression

    Mark, Nelson; Ogaki, Masao; Sul, Donggyu (2003)

    Working or discussion paper
    The University of Auckland Library

    Multiple cointegrating regressions are frequently encountered in empirical work as, for example, in the analysis of panel data. When the equilibrium errors are correlated across equations, the seemingly unrelated regression estimation strategy can be applied to cointegrating regressions to obtain asymptotically efficient estimators. While non-parametric methods for seemingly unrelated cointegrating regressions have been proposed in the literature, in practice, specification of the estimation problem is not always straightforward. We propose Dynamic Seemingly Unrelated Regression (DSUR) estimators which can be made fully parametric and are computationally straightforward to use. We study the asymptotic and small sample properties of the DSUR estimators both for heterogeneous and homogenous cointegrating vectors. The estimation techniques are then applied to analyze two long-standing problems in international economics. Our first application revisits the issue of whether the forward exchange rate is an unbiased predictor of the future spot rate. Our second application revisits the problem of estimating long-run correlations between national investment and national saving.

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