Frontiers in Applied General Equilibrium Modeling: in Honor of Herbert Scarf Edited by Timothy J
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Zbwleibniz-Informationszentrum
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Cogliano, Jonathan Working Paper An account of "the core" in economic theory CHOPE Working Paper, No. 2019-17 Provided in Cooperation with: Center for the History of Political Economy at Duke University Suggested Citation: Cogliano, Jonathan (2019) : An account of "the core" in economic theory, CHOPE Working Paper, No. 2019-17, Duke University, Center for the History of Political Economy (CHOPE), Durham, NC This Version is available at: http://hdl.handle.net/10419/204518 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu An Account of “the Core” in Economic Theory by Jonathan F. Cogliano CHOPE Working Paper No. 2019-17 September 2019 Electronic copy available at: https://ssrn.com/abstract=3454838 An Account of ‘the Core’ in Economic Theory⇤ Jonathan F. -
Shapley and Scarf in 1974
Journal of Mathematical Economics 1 (1974) 23-37. 0 North-Holland Publishing Company ON CORES AND EWMSIBILITY* Lloyd SHAPLEY The Rand Corporation, Santa Monica, Cal$90406, U.S.A. and Herbert SCARF Yale University, New Haven, Conn. 06520, U.S.A. Received 11 September 1973 An economic model of trading in commodities that are inherently indivisible, like houses, is investigated from a game-theoretic point of view. The concepts of balanced game and core are developed, and a general theorem of Scarf’s is applied to prove that the market in question has a nonempty core, that is, at least one outcome that no subset of traders can improve upon. A number of examples are discussed, and the final section reviews a series of other models involving indivisible commodities, with references to the literature. 1. Introduction This paper has two purposes. To the reader interested in the mathematics of optimization, it offers an elementary introduction to n-person games, balanced sets, and the core, applying them to a simple but nontrivial trading model. To the reader interested in economics, it offers what may be a new way of looking at the difficulties that afflict the smooth functioning of an economy in the presence of commodities that come in large discrete units. The core of an economic model, or of any multilateral competitive situation, may be described as the set of outcomes that are ‘coalition optimal’, in the sense that they cannot be profitably upset by the collusive action of any subset of the participants, acting by themselves. There is no reason, a priori, that such outcomes must exist; the core may well be empty. -
Frontiers in Applied General Equilibrium Modeling in Honor of Herbert Scarf
P1: Kcz CB757-FM CB757-Kehoe-v1.cls October 6, 2004 14:7 Frontiers in Applied General Equilibrium Modeling In Honor of Herbert Scarf Edited by TIMOTHY J. KEHOE University of Minnesota and Federal Reserve Bank of Minneapolis T. N. SRINIVASAN Yale University JOHN WHALLEY University of Western Ontario iii P1: Kcz CB757-FM CB757-Kehoe-v1.cls October 6, 2004 14:7 published by the press syndicate of the university of cambridge The Pitt Building, Trumpington Street, Cambridge, United Kingdom cambridge university press The Edinburgh Building, Cambridge CB2 2RU, UK 40 West 20th Street, New York, NY 10011-4211, USA 477 Williamstown Road, Port Melbourne, VIC 3207, Australia Ruiz de Alarcon´ 13, 28014 Madrid, Spain Dock House, The Waterfront, Cape Town 8001, South Africa http://www.cambridge.org C Cambridge University Press 2005 This book is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2005 Printed in the United States of America Typeface Times Roman PS 10/12.5 pt. System LATEX2ε [TB] A catalog record for this book is available from the British Library. Library of Congress Cataloging in Publication Data Frontiers in applied general equilibrium modeling / edited by Timothy J. Kehoe, T.N. Srinivasan, John Whalley. p. cm. Includes bibliographical references and index. ISBN 0-521-82525-3 (hardback) 1. Equilibrium (Economics) – Mathematical models. I. Kehoe, Timothy Jerome, 1953– II. Srinivasan, T.N., 1933– III. Whalley, John. HB145.F76 2005 339.5015195 – dc22 2004045758 ISBN 0 521 82525 3 hardback iv P1: Kcz CB757-FM CB757-Kehoe-v1.cls October 6, 2004 14:7 Contents List of Contributors page vii Acknowledgments xi Introduction 1 Timothy J. -
Shapley and Roth Awarded Nobel Prize in Economics
Shapley and Roth Awarded Nobel Prize in Economics Lloyd S. Shapley, professor emeritus of econom- far-reaching consequences: In the first half of the ics and mathematics at the University of California, twentieth century, the U.S. market for assigning Los Angeles, and Alvin E. Roth, George Gund medical students to hospitals (for the purpose of Professor of Economics and Business Administra- doing their residencies) had been in continuous tion at Harvard University and Harvard Business turmoil. In the early 1950s, the American Hospital School, have been awarded the 2012 Nobel Prize Association (AHA) introduced a computer algo- in Economics “for the theory of stable allocations rithm for making these assignments, whereupon and the practice of market design.” Though they the previously chaotic market immediately became worked independently of each other, the combina- orderly. And Roth showed that the AHA algorithm tion of Shapley’s basic theory and Roth’s empirical was precisely the same as that of Gale and Shapley, investigations, experiments, and practical design though neither the AHA nor the inventors of their has generated a flourishing field of research and algorithm were familiar with the relevant theory. improved the performance of many markets. This discovery opened the door to the applica- On the Work of Roth and Shapley tion of the Gale-Shapley algorithm to a wide variety The Notices asked Robert Aumann of the Hebrew of important matching markets: in addition to the University of Jerusalem to comment on the work of medical programs, perhaps most importantly to Alvin Roth and Lloyd Shapley. Aumann supplied the very large-scale programs of assigning students following description of their work. -
The Origins of Dynamic Inventory Modelling Under Uncertainty
The Origins of Dynamic Inventory Mo delling under Uncertainty The men, their work and connection with the Stanford Studies Hans-Joachim Girlich, University of Leipzig, Germany and Attila Chik an, Budap est University of Economic Sciences, Budap est, Hungary Abstract This pap er has a double purp ose. First, it provides a historical analysis of the develop- ments leading to the rst \Stanford Studies", a collection of pap ers which probably can be considered even to day as the single most fundamental reference in the mathematical handling of inventories. From this p oint of view, the pap er is ab out p eople and their works. Secondly,we give an insightinto the interrelation of mathematics and inventory mo delling in a historical context. We will sketch on the one hand the development of the mathemati- cal to ols for inventory mo delling rst of all in statistics, probability theory and sto chastic pro cesses but also in game theory and dynamic programming up to the 1950s. Furthermo- re, we rep ort how inventory problems have motivated the improvement of mathematical disciplines such as Markovian decision theory and optimal control of sto chastic systems to provide a new basis of inventory theory in the second half of our century. 1. Intro duction Dates suchas40years after the rst Stanford Studies on inventory or the 10th ISIR Sym- p osium in Budap est are symb olic events which give us the opp ortunity to analyse the conditions which achieve such exceptional results. Here, we analyse the rise of inventory mo delling, restricting ourselves essentially to the asp ect of mathematics needed for inven- tory mo delling under uncertainty. -
The Cowles Commission and Foundation for Research in Economics
THE COWLES COMMISSION AND FOUNDATION FOR RESEARCH IN ECONOMICS By Robert W. Dimand November 2019 COWLES FOUNDATION DISCUSSION PAPER NO. 2207 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS YALE UNIVERSITY Box 208281 New Haven, Connecticut 06520-8281 http://cowles.yale.edu/ The Cowles Commission and Foundation for Research in Economics Robert W. Dimand Department of Economics Brock University 1812 Sir Isaac Brock Way St. Catharines, Ontario L2S 3A1 Canada Telephone: 1-905-688-5550 x. 3125 Fax: 1-905-688-6388 E-mail: [email protected] Keywords: Cowles Commission, formalism in economics, mathematics in economics, Cowles approach to econometrics JEL classifications: B23 History of Economic Thought since 1925: Econometrics, Quantitative and Mathematical Studies, B41 Economic Methodology, C01 Econometrics, C02 Mathematical Methods Abstract: Founded in 1932 by a newspaper heir disillusioned by the failure of forecasters to predict the Great Crash, the Cowles Commission promoted the use of formal mathematical and statistical methods in economics, initially through summer research conferences in Colorado and through support of the Econometric Society (of which Alfred Cowles was secretary-treasurer for decades). After moving to the University of Chicago in 1939, the Cowles Commission sponsored works, many later honored with Nobel Prizes but at the time out of the mainstream of economics, by Haavelmo, Hurwicz and Koopmans on econometrics, Arrow and Debreu on general equilibrium, Yntema and Mosak on general equilibrium in international trade theory, Arrow on social choice, Koopmans on activity analysis, Klein on macroeconometric modelling, Lange, Marschak and Patinkin on macroeconomic theory, and Markowitz on portfolio choice, but came into intense methodological, ideological and personal conflict with the emerging “Chicago school.” This conflict led the Cowles Commission to move to Yale in 1955 as the Cowles Foundation, directed by James Tobin (who had declined to move to Chicago to direct it). -
Economists' Papers Archive
Economists’ Papers Archive Since beginning its program to preserve the papers of distinguished economists in the 1980s, Duke’s Rubenstein Library has received the personal and professional papers of more than seventy significant economists, including twelve Nobel laureates. These collections offer an essential resource to researchers in the history of economic thought, and are frequently consulted by scholars from around the globe. Together with Duke’s Center for the History of Political Economy—and developed in cooperation with faculty there—the Archive has become a locus for exciting collaborations and discoveries, furthering our understanding of the development of the economic policies and principles that influence contemporary life. The collections contain a wealth of unique research material on virtually every area of modern economics, from the notebooks of the founder of the Austrian school of economic thought, Carl Menger, to the correspondence files of Paul Samuelson, one of the past century’s most influential intellectuals. Topics covered in particular depth include game theory, in the papers of Leonid Hurwicz, Oskar Morgenstern, Martin Shubik, Vernon Smith, and others; public policy, including the papers of Kenneth Arrow, Arthur Burns, Juanita Kreps, Robert Lucas, and Franco Modigliani; and macroeconomic topics, including the papers of Robert Solow, Edward Prescott, and many others. The library is actively acquiring new collections as well as organizing and cataloging existing papers. In addition to the papers of individual economists, the library also holds the records of several organizations and journals important for the history of economic thought. Chief among these are the records of the American Economic Association, founded in 1885. -
Shoven, John B. and Whalley, John .1984. "Applied
American Economic Association Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey Author(s): John B. Shoven and John Whalley Source: Journal of Economic Literature, Vol. 22, No. 3 (Sep., 1984), pp. 1007-1051 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/2725306 Accessed: 04/11/2008 12:16 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=aea. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact [email protected]. American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to Journal of Economic Literature. -
University of S˜Ao Paulo School of Economics
UNIVERSITY OF SAO˜ PAULO SCHOOL OF ECONOMICS, BUSINESS AND ACCOUNTING DEPARTMENT OF ECONOMICS GRADUATE PROGRAM IN ECONOMIC THEORY History of the Calculus of Variations in Economics Hist´oria do C´alculo Variacional em Economia Vin´ıcius Oike Reginatto Prof. Dr. Pedro Garcia Duarte SAO˜ PAULO 2019 Prof. Dr. Vahan Agopyan Reitor da Universidade de S˜ao Paulo Prof. Dr. F´abio Frezatti Diretor da Faculdade de Economia, Administra¸c˜ao e Contabilidade Prof. Dr. Jos´eCarlos de Souza Santos Chefe do Departamento de Economia Prof. Dr. Ariaster Baumgratz Chimeli Coordenador do Programa de P´os-Gradua¸c˜ao em Economia VIN´ICIUS OIKE REGINATTO HISTORY OF THE CALCULUS OF VARIATIONS IN ECONOMICS Disserta¸c˜ao apresentada ao Programa de P´os-Gradua¸c˜ao em Economia do Departa- mento de Economia da Faculdade de Econo- mia, Administra¸c˜ao e Contabilidade da Uni- versidade de S˜ao Paulo, como requisito par- cial para a obten¸c˜ao do t´ıtulo de Mestre em Ciˆencias Orientador: Prof. Dr. Pedro Garcia Duarte VERSAO˜ ORIGINAL SAO˜ PAULO 2019 Ficha catalográfica Elaborada pela Seção de Processamento Técnico do SBD/FEA com os dados inseridos pelo(a) autor(a) Reginatto, Vinícius Oike Reginatto. History of the Calculus of Variations in Economics / Vinícius Oike Reginatto Reginatto. - São Paulo, 2019. 94 p. Dissertação (Mestrado) - Universidade de São Paulo, 2019. Orientador: Pedro Garcia Duarte Duarte. 1. History of Economic Thought in the 20th Century. 2. Calculus of Variations. I. Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade. II. Título. AGRADECIMENTOS Agrade¸co ao professor Pedro Garcia Duarte pela orienta¸c˜ao neste t´opico bastante instigante, que conciliou muitos dos meus interesses em economia. -
Economic Perspectives
The Journal of The Journal of Economic Perspectives Economic Perspectives The Journal of Winter 2019, Volume 33, Number 1 Economic Perspectives Symposia Women in Economics Shelly Lundberg and Jenna Stearns, “Women in Economics: Stalled Progress” Leah Boustan and Andrew Langan, “Variation in Women’s Success across PhD Programs in Economics” Kasey Buckles, “Fixing the Leaky Pipeline: Strategies for Making Economics Work for Women at Every Stage” Financial Stability Regulation Daniel K. Tarullo, “Financial Regulation: Still Unsettled a Decade After the Crisis” A journal of the Darrell Dufe, “Prone to Fail: The Pre-Crisis Financial System” American Economic Association David Aikman, Jonathan Bridges, Anil Kashyap, and Caspar Siegert, “Would Macroprudential Regulation Have Prevented the Last Crisis?” Public Provision of Economic Data 33, Number 1 Winter 2019 Volume Ellen Hughes-Cromwick and Julia Coronado, “The Value of US Government Data to US Business Decisions” Hugh Rockoff, “On the Controversies Behind the Origins of the Federal Economic Statistics” Ron S. Jarmin, “Evolving Measurement for an Evolving Economy: Thoughts on 21st Century US Economic Statistics” Articles Spencer Banzhaf, Lala Ma, and Christopher Timmins, “Environmental Justice: The Economics of Race, Place, and Pollution” Susan Athey and Michael Luca, “Economists (and Economics) in Tech Companies” Ariel Pakes and Joel Sobel, “Parag Pathak: Winner of the 2018 Clark Medal” Recommendations for Further Reading Winter 2019 The American Economic Association The Journal of Correspondence relating to advertising, busi- Founded in 1885 ness matters, permission to quote, or change Economic Perspectives of address should be sent to the AEA business EXECUTIVE COMMITTEE office: [email protected]. Street ad- Elected Officers and Members dress: American Economic Association, 2014 A journal of the American Economic Association President Broadway, Suite 305, Nashville, TN 37203. -
Herbert Scarf (1930-2015) by John B. Shoven and John Whalley
Herbert Scarf (1930-2015) John B. Shoven and John Whalley Herbert Eli Scarf died on November 15, 2015. The obituary in the New York Times was titled “Herbert Scarf, 85, Professor Who Shaped Economic Policy,” (Roberts, 2015). This title is pretty remarkable, really, when you consider that Herb Scarf never took an economics class in his life. Both his undergraduate and graduate training were in mathematics. And yet, the New York Times title was completely appropriate. Herb Scarf became a remarkable economist and his work enabled the whole field of applied general equilibrium (AGE) economics to develop. The Times article quoted Glenn Hubbard, former Chairman of the President’s Council of Economic Advisors, as saying that “the Scarf Algorithm was a revolutionary advance in economic analysis that has helped shape policies affecting every American.” We might add that is not just every American who may have been affected by this policy evaluation tool and note that AGE models are in use the world over. These models have helped evaluate government policies in the U.K., Canada, Mexico, Japan, China, Australia, Vietnam, the Philippines, and Cote d’Ivoire, just to name some of the more prominent examples. Glenn Hubbard was further quoted as saying “the Scarf Algorithm made much of modern policy analysis possible.” The same Times obituary quoted Larry Summers, former U.S. Treasury Secretary and Head of the National Economic Council, as saying “No economist has done more to import math (to economics) over the last half-century than Herbert Scarf.” Scarf made many seminal contributions to economics. His work was brilliantly summarized by Kenneth J. -
Yale Department of Economics Fall 2016 Annual Alumni Newsletter Greetings from the Chair —
Yale Department of Economics Fall 2016 Annual Alumni Newsletter Greetings from the Chair — I am delighted to present Fellowship, and Amanda Kowalski received the Annual you with the revived NIHCM Research Award following up her National Science newsletter from the Foundation Career Fellowship from the previous year. Over Department of Economics the last three years a number of faculty have been elected to after a ten-year hiatus. the American Academy of Arts and Sciences; among them A digital version can be Steve Berry, Penny Goldberg, Mark Rosenzweig, and the found on the departmental newest member, Sam Kortum, who was elected into the website, as well as recent 2016 class. Nobel Prize Laureate Bob Shiller was elected news, updates, and events. President of the American Economic Association (AEA) this The department and its year, while Bill Nordhaus can lend advice as a Past President associated research centers, of the AEA after stepping down in 2015. the Cowles Foundation for Our colleague and current Chair of the Department Research in Economics, of History, Naomi Lamoreaux, was awarded the Graduate and the Economic Growth Mentor by the Graduate School, and Steve Berry won the Lex Center continue to thrive and attract world-class students, Hixon ’63 Prize for Teaching Excellence from Yale College. researchers and faculty. Steve was also appointed as the inaugural David Swensen Over the last two years, the department has been Professor of Economics in 2014. The professorship was growing with new young faculty members and postdoctoral established as a result of the Swensen Initiative, which was scholars. This past year Ilse Lindenlaub, who works on organized by a group of alumni and friends to raise funds in search and matching in labor markets, came to us from David Swensen’s honor in recognition of his contributions NYU where she started her academic career after receiving to Yale as the university’s chief investment officer since 1985.