91 results for Working or discussion paper, ResearchSpace@Auckland

  • 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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  • 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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  • Industry Premium: What we Know and What The New Zealand Data Say

    Bandyopadhyay, Debasis (1999)

    Working or discussion paper
    The University of Auckland Library

    This paper critically reviews conventional explanations of why the individual income reflects an industry premium. It presents four facts about industry premiums in New Zealand to highlight the limitation of those explanations. In particular, it suggests that competitive theories that refer to unobservable characteristics or compensating wage differentials are too broad and non-competitive theories that rely on the efficiency wage hypothesis are too narrow to successfully explain what the New Zealand data reveal. Employees receive industry premium, but so do the self-employed, and do so more than the employees if uneducated; but the premium difference falls as the education level rises.

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  • School Leaving, Labour Market and Tertiary Education Choices of Young Adults: An Economic Analysis Utilising The 1977-1995 Christchurch Health and Development Surveys

    Maani, Sholeh (2000)

    Working or discussion paper
    The University of Auckland Library

    Utilising evidence from a longitudinal data set of young adults in New Zealand, this study examines the determinants of school leaving and labour supply behaviour of young adults at ages 16 and 18. The data set employed (the Christchurch Health and Development Survey) includes a number of variables, from birth to age 18, not commonly available in economic data sets. The analysis uses binary choice models to examine the effect of ability factors and household economic constraints on the choice to remain at secondary school beyond post-compulsory levels at age 16. The study further uses binary and multinomial choice models to examine the determinants of participation in tertiary education, as opposed to engaging in labour supply, or unemployment at age 18. The study finally examines the determinants of the type of tertiary institution attended.

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  • Auction Beats Posted Prices in a Small Market

    Julien, Benoit; Kennes, John; King, Ian (2002)

    Working or discussion paper
    The University of Auckland Library

    In a model with two buyers and sellers we consider the choice of sales mechanism from three possibilities: posted prices, and auctions with and without reserve prices. With homogenous goods, sellers expected revenues are highest when both sellers auction with reserve prices 33% higher than if posting prices and 100% higher than if auctioning without reserve prices. When sellers can choose their mechanism before choosing prices, both sellers auction with a reserve price in the dominant strategy equilibrium. With heterogenous goods, the equilibrium with posted prices is inefficient (Montgomery (1991)) but the equilibria with both types of auctions are efficient.

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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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  • 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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  • Distribution of Human Capital and Economic Growth

    Bandyopadhyay, Debasis (1997)

    Working or discussion paper
    The University of Auckland Library

    This paper provides an empirically tractable model of economic growth where the distribution of human capital is central to understanding the key issues. Long run growth is possible only if the distribution of human capital belongs to a known class such that investment in education, the model's engine of growth, exceeds inter-generational depreciation of human capital. The model contributes to understanding of the puzzle of growth disparities among countries by exhibiting multiple steady states under alternative paradigms of growth. It provides a purely neoclassical model to explain why a lower income inequality may correspond to a higher rate of growth.

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  • A LAD Regression Under Non-Standard Conditions

    Rogers, Alan (1997)

    Working or discussion paper
    The University of Auckland Library

    Most work on the asymptotic properties of least absolute deviations (LAD) estimators makes use of the assumption that the common distribution of the disturbances has a density which is finite and positive at zero. We consider the implications of weakening this assumption in a regression setting. We see that the results obtained are similar in flavor to those obtained in a least squares context when the disturbance variance is allowed to be infinite: both the shape of the limiting distribution and the rate of convergence to it is affected in reasonably simple and intuitive ways. As well as conventional regression models we outline results for some simple autoregressive models which may have a unit root and/or infinite error variance.

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  • Agency Theory Meets Social Capital: The Failure of the 1984-91 New Zealand Economic Revolution

    Hazledine, Tim (2000)

    Working or discussion paper
    The University of Auckland Library

    The failure of the New Zealand Economic Revolution of 1984-91 to generate improved economic performance is puzzling and important, since the reforms enacted then have often been cited as a 'textbook' example of how to liberalise an economy, and since the preconditions for success (such as good government, secure property rights and stable capitalist institutions) were all in place, in contrast to the economies of the former Soviet bloc. This paper first documents the extent of failure, and then attempts to explain it theoretically. This is the story: The reform program can be seen as a massive application (or mis-application) of Principal/Agent Theory. The Principal is the small group of economic revolutionaries. The Agents are the people of NZ. The Principal_s sole object is economic efficiency. The Agents enjoy the fruits of efficiency, but also emjoy other things ('slack'), which conflict with efficient behaviour. The Principal introduces policies (deregulation, liberalisation, commercialisation) which raise the opportunity cost of non- efficient behaviour in both private and public sectors. Unfortunately, the Principal has the 'wrong model' of how the economy functions. Slack does not just enter Agents' utility functions, it is also an input into production, where it appears as 'Forbearance' _ the flow variable associated with the stock concept known as Social Capital (the ability of agents to achieve mutually beneficial outcomes through trusting and trustworthy behaviour). Thus, the Reforms actually reduced economic efficiency, for two reasons (1) they forced noncooperative behaviour on agents, and (2) they incurred direct costs of monitoring and enforcement to bring agents' behaviour into line with the principal's objectives. And the total welfare costs exceed the loss of economic efficiency (GDP), since disproportionately more utility-enhancing slack, or forbearance is wiped out. The prediction of increased resources devoted to transaction cost activities, in particular management, is tested in a comparison of New Zealand and Australia (which did not go through such a radical reform process). The data do indeed show a substantial increase in the number of managers in NZ, relative to Australia.

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  • How Financial Development Caused Economic Growth in the APEC: Financial Integration with FDI OR Privatisation without FDI

    Bandyopadhyay, Debasis (2004)

    Working or discussion paper
    The University of Auckland Library

    Politicians fashionably argue in favour of financial development to promote economic growth following the seminal study of King and Levine (1993a, 1993b). Financial development, however, could come through alternative channels that are sometimes not compatible in small open economics. A relatively popular channel promotes privatisation of domestic financial intermediaries but with restrictions on foreign ownership. The other competing channel works through foreign direct investment (FDI) requiring foreign ownership of national assets. Until the last decade of globalisation, from sixties through early nineties, in many APEC countries and especially in the East Asia, privatisation of national banks went hand in hand with a regime of financial repressions. Under that regime governments kept the domestic interest rate above the world rate by imposing barriers against FDI. Recent trend in globalisation creates a political tension between those who welcome and the others who oppose FDI. This paper evaluates the relative contribution of those two alternative channels of financial development to economic growth. The model of analysis builds on King and Levine (1993b) but restricts its attention to small open economies of the APEC. Contrary to the previous findings, privatisation of domestic financial sector alone turns out to have a negative impact on the growth of efficiency measured by the growth of total factor productivity. This discrepancy could possibly be rationalised by a special characteristic of the APEC sample where a negative effect on efficiency came from the regimes of financial repression that blocked FDI. Financial integration led by FDI does bring the prospect of lower economic growth due to increased business fluctuations especially for the small open economies. Nevertheless, it is surprising to find that a significant improvement in efficiency and growth came to the APEC nations through the international channel with the flow of FDI. Consequently, barriers to globalisation out of a purely the nationalist concerns may be ill fated even for small open economies.

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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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  • Quality Versus Quantity: Rankings of Economics Departments in New Zealand

    King, Ian (2000)

    Working or discussion paper
    The University of Auckland Library

    I compare the research records of the 7 major economics departments in New Zealand, from 1990 onwards. The information, taken from the Econlit database, covers more than 500 economics journals, as of November 2000. Quality weights for the journals were taken from the study by Laband and Piette (1994). Four different departmental ranking measures were computed. The resulting ranking of departments is common to all the measures used. Auckland comes in first, followed by Victoria University of Wellington, Canterbury, Otago, Lincoln, Waikato, and Massey.

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  • The Elusive Empirical Shadow of Growth Convergence

    Phillips, Peter; Sul, Donggyu (2003)

    Working or discussion paper
    The University of Auckland Library

    Two groups of applied econometricians have figured prominently in empirical studies of growth convergence. In terms of a popular caricature, one group believes it has found a black hat of convergence (evidence for growth convergence) in the dark room of economic growth, even though the hat may not exist (the task may be futile). A second group believes it has found a black coat of divergence (evidence against growth convergence) even though this object also may not exist (empirical reality, including the nature of growth divergence, is ever more complex than the models used to characterize it). The present paper seeks to light a candle to see whether there is a hat, a coat or another object of identifiable clothing in the room of regional and multi-country economic growth. After our examination, we find that the candle power of applied econometrics is too low to clearly distinguish a black hat in the huge dark room of economic growth. However, in our theory model, we find an important new role for heterogeneity over time and across economies in the transitional dynamics of economic growth; and, in our empirical work, these transitional dynamics reveal an elusive shadow of the conditional convergence hat in both US regional and inter-country OECD growth patterns.

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  • A Cooperative Game Approach to Patent Litigation, Settlement, and Allocation of Legal Costs

    Aoki, Reiko; Hu, Jin (1999)

    Working or discussion paper
    The University of Auckland Library

    We analyze litigation and settlement behavior in case of patent infringement using the Nash Bargaining Game framework. We show that litigation can be the Pareto efficient outcome. We also show that when there is settlement, the transfer payment from the defendant to the plaintiff is increasing in its own legal cost and decreasing in that of the plaintiff, reflecting the bargaining power on both sides. We also compare the American and English rules of cost allocation when legal costs are endogenously determined.

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  • Compulsory Licensing of Technology and the Essential Facilities Doctrine

    Aoki, Reiko; Small, John (2002)

    Working or discussion paper
    The University of Auckland Library

    We look at compulsory licensing of intellectual property as remedy for anti-competitive practice. We identify aspects of intellectual property that warrants a different remedy from those using general definitions and remedies for essential facility. Based on the analysis, we present a characterisation of optimal compulsory licensing for a simple market.

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  • Empirical Characteristic Function in Time Series Estimation

    Knight, John; Yu, Jun (1999)

    Working or discussion paper
    The University of Auckland Library

    Since the empirical characteristic function is the Fourier transformation of the emipirical distribution function, it retains all the information in the sample but can overcome difficulties arising from the likelihood. This paper discusses an estimation method using the empirical characteristic function for stationary processes. Under some regularity conditions, the resulting estimators are shown to be consistent and asymptotically normal. The method is applied to estimate Gaussion ARMA models. The optimal weight functions and estimating equations are given for in detail. Monte Carlo evidence shows that thc empirical characteristic function method can work as well as the exact maximum likelihood method and outperforms the conditional maximum likelihood method.

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  • Do Topics Diffuse from Core to Periphery Journals?

    Bandyopadhyay, Debasis; Yu, Jun (1999)

    Working or discussion paper
    The University of Auckland Library

    We examine the interests among competing topics of macroeconomics by tracing publication frequencies of these topics as recorded in the EconLit database over the period from 1969 through 1996. We find some evidence in the data that the interests on a topic in the core journals relative to the periphery journals decreases as the topic gets old. We, however, find that an increasing interest on a topic in the periphery journals Granger causes an increase in interest on the same topic in the core journals but not vice versa. The evidence, therefore, suggests that the topics do not gradually diffuse from the core journals to the periphery journals. Nevertheless, we find that one could economize their literature search by focusing on that smaller set of core journals.

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  • The Impact of Recent Welfare Reforms on Labour Supply Behaviour In New Zealand

    Maloney, Tim (1998)

    Working or discussion paper
    The University of Auckland Library

    New Zealand recently initiated sweeping reforms to its social welfare programmes by cutting benefits and tightening eligibility criteria. One of the objectives of these reforms was to provide incentives for people to enter or re-enter the labour force. Econometric analysis is used in this paper to isolate the actual effects of these benefit reforms on labour supply. Previous research in many counties has often failed to accurately measure the extent of these work disincentives, or to observe variation in these programmes that would allow this empirical analysis to take place. The structure of these benefit programmes in New Zealand, and the nature of these reforms offers a unique opportunity to identify these behavioural responses. Quarterly random samples of individuals between 1985 and 1995 are used to isolate the effects of these reforms, while controlling for a wide variety of other influences. This study finds compelling evidence that these benefit reforms resulted in a substantial increase in aggregate labour supply in this country.

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  • Ideology, Asymmetric Information, and Campaign Contributions to Politicians

    Boyce, John (1998)

    Working or discussion paper
    The University of Auckland Library

    This paper considers a model of interest group competition to influence policy outcomes when politicians and some interest groups hold private information about the polic y preferences (ideology) of politicians. Politicians cannot credibly reveal their ideology to others because all politician types prefer more campaign contributions to fewer. However, informed interest groups do convey some information about politician_s type by their contributions. If an uninformed group is a friend (it prefers moving the given policy in the same direction as the informed group), the informed group will truthfully reveal whether or not the politician is receptive to contributions. However, if the uninformed group is an enemy (it prefers a policy movement in the opposite direction), with the same signal the informed group only partially reveals whether the politician is receptive to contributions from its enemies. Empirical evidence is presented that supports the hypothesis that political action committee contributions are informative as well as persuasive.

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