scholarly journals A NOTE ON THRESHOLD FACTOR LEVEL(S) AND STONE-GEARY TECHNOLOGY

2015 ◽  
Vol 47 (4) ◽  
pp. 482-493
Author(s):  
BRUCE R. BEATTIE ◽  
SATHEESH ARADHYULA
Keyword(s):  
Irrigation Water ◽  
Consumer Choice ◽  
Choice Theory ◽  
Field Trials ◽  
Variable Cost ◽  
Data Sets ◽  
Factor Level ◽  
Function Model ◽  
Threshold Factor ◽  
Factor Demand

AbstractThis article proposes the parsimonious Stone-Geary utility function from consumer choice theory as a production function model. The viability of the threshold input idea is empirically demonstrated for irrigation water (and in the case of nitrogen, a “gratis” threshold) using two field trials from the famous Hexem-Heady data sets. The implications of the Stone-Geary model for tractable U-shaped average variable cost and for factor demand and product supply are explored.

scholarly journals Loss Aversion and Consumption Choice: Theory and Experimental Evidence

2015 ◽  
Vol 7 (2) ◽  
pp. 101-120 ◽  
Author(s):  
Heiko Karle ◽  
Georg Kirchsteiger ◽  
Martin Peitz
Keyword(s):  
Experimental Evidence ◽  
Loss Aversion ◽  
Consumer Choice ◽  
Rational Expectations ◽  
Choice Theory ◽  
Choice Model ◽  
Reference Points ◽  
Price Uncertainty ◽  
Theoretical Predictions

We analyze a consumer-choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. Participants differ in their reported taste for the two sandwiches and in their degree of loss aversion, which we measure separately. We find that more-loss-averse participants are more likely to opt for the cheaper sandwich, in line with theoretical predictions. The estimates in the model with rational expectations are slightly more significant than those with naïve expectations. (JEL D11, D12, D84, M31)

An intraregional economic analysis of production structure and factor demand in major Canadian softwood lumber producing regions

1988 ◽  
Vol 18 (8) ◽  
pp. 1036-1048 ◽  
Author(s):  
J. K. Meil ◽  
J. C. Nautiyal
Keyword(s):  
Technical Change ◽  
Time Series Data ◽  
Decomposition Analysis ◽  
Production Capacity ◽  
Series Data ◽  
Variable Cost ◽  
Production Structure ◽  
Cross Sectional ◽  
Behaviour Factor ◽  
Factor Demand

Cross-sectional time-series data were employed to estimate four intraregional models of production structure and factor demand over the time period 1968–1984. Lumber, tie, and pulp chip information was incorporated into the restricted, single-output, variable cost transcendental logarithmic function. Results indicate that aggregate sectoral studies do not adequately reflect regional production behaviour in the industry. Additional tests for aggregation bias demonstrated that different mill sizes within a region also portray differing production behaviour. Factor demand decomposition analysis indicated that demand for production inputs is not static, but is governed by offsetting dynamic effects. With few exceptions, all mills across regions exemplify material- and energy-using and labour-saving biases in technical change. Larger mills consistenly registered the greatest labour-saving technical change, which countered their lack of attaining significantly large cost-reducing scale economies. Mid-sized mills consistently exhibited the largest returns to scale. The data suggest that small mills are leaving the industry in some regions and production capacity is becoming concentrated in the larger mills.

scholarly journals Rational Choice Theory in Comparative Sociology

2015 ◽  
Vol 14 (4) ◽  
pp. 587-608
Author(s):  
Hanno Scholtz
Keyword(s):  
Rational Choice ◽  
Social Stratification ◽  
Comparative Research ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Social Capital Theory ◽  
Welfare States ◽  
Data Sets ◽  
Social Phenomena ◽  
Capital Theory

Among schools of thought in comparative research, Rational Choice Theory (rct) is both the most systematic and the most contested. rct lacks a “classical” foundation but offers a clear internal theory structure. The rationality assumption contains an unquestioned heuristic aspect, although the determinants of choice (especially preferences) lack a universally accepted solution. The choice aspect addresses the understanding of social phenomena as the result of individual actions seen in light of the possible alternatives. This view unifies scholars in the Rational Choice tradition and leads to the macro-micro-macro-scheme. Micro-oriented comparative research has flourished through the availability of multi-level data sets in fields such as social capital theory, social stratification and mobility, including educational attainment or the inclusion of migrants, family studies, criminology, and labor markets. Institutional rct-based comparative research has addressed welfare states, religion, and general questions. In both aspects, rct leaves room for further productivity in comparative research.

Book Reviews

2016 ◽  
Vol 54 (3) ◽  
pp. 944-945
Keyword(s):  
Consumer Choice ◽  
Choice Theory ◽  
Revealed Preference ◽  
General Equilibrium Theory ◽  
Preference Theory ◽  
Choice Under Uncertainty ◽  
The University ◽  
Consumer Choice Behavior ◽  
Rational Demand

Hal R. Varian of the University of California, Berkeley reviews “Revealed Preference Theory,” by Christopher P. Chambers and Federico Echenique. The Econlit abstract of this book begins: “Presents mathematical models that capture the preferences revealed through consumer choice behavior, addresses the relation between theory and data, and studies situations in which empirical observations are consistent or inconsistent with theories in economics. Discusses mathematical preliminaries; classical abstract choice theory; rational demand; topics in rational demand; practical issues in revealed preference analysis; production; stochastic choice; choice under uncertainty; general equilibrium theory; game theory; social choice and political science; revealed preference and systems of polynomial inequalities; and revealed preference and model theory.”

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