Compositum mixtum of one-factor production function

The paper is devoted to finding a convenient argument for the one-factor production function of a mine. For construction of one-factor production functions it is offered to use composite goods (compositum mixtum), the value of which corresponds to the amount of costs, incurred by an enterprise during a year-long period of time. Taking into account peculiarities of coal mines, the study verifies an expedience of converting the composite good to the coal equivalent (conventional fuel), consumed by an enterprise in a technological process, Big Mac burgers, and the stuff number. An attempt to use coal to build the production function of a mine as a composite good was not entirely successful. An experimental study of the dependence of coal production from actual costs of coal resources, carried out on a mathematical model of a mine, proved the inexpediency of such formalization, particularly due to the strong influence of non-mine (external) factors. Statistically significant, for example, were the efficiency of fuel use in power plants and the norm of coal for household needs. The relevance and popularity of the ‘sandwich index’ is due to the fact that McDonald's is in most countries, and Big Mac itself contains so many food ingredients (bread, cheese, meat and vegetables) that can act as a kind of mold of the national economy. But the conducted research demonstrated that such a way of expressing the composite good for Ukrainian mines is not rational due to macroeconomic interventions (permanent increase of the minimum wage) in the microeconomics of an enterprise. The most appropriate argument for the production function of the mine is the stuff number of an enterprise. The rationality of Big Mac as the basis of the production function is demonstrated in the construction of the production function of world export coal markets.

A Microeconomic Methodology to Evaluate Energy Efficiency by Consumption Behaviors and Strategies to Improve Energy Efficiency

The present paper highlights a quantitative method to maximize energy efficiency based on the minimum energy consumption and maximum quality of life from consumption behaviors. Quality of life is expressed by utility, which is a Constant Elasticity of Substitution (CES) function of demands for composite goods, car trips and public transport trips. Individual energy consumption is estimated by the demand of goods and we applied this method to Nagasaki to evaluate energy efficiency. Our results showed that 28,154 kcal of energy is needed to support the life of one individual per day in Nagasaki. Furthermore, we found that 76% of energy was used for composite goods and 24% was used for mobility goods. To achieve maximum energy efficiency, our results highlight that energy should be reduced by increasing the consumption of composite goods and public transport trips, while simultaneously decreasing the consumption of car trips. Compared to residents in urban and suburban areas, individuals in Central Business Districts (CBD) were found to have higher energy efficiency. Findings in Nagasaki suggest three policy implications: First, eco-energy consumption patterns should be encouraged to decrease energy use, while maintaining quality of life. Second, mixed land use is attributed to increased energy efficiency. Lastly, the energy efficiency of mobility could be improved though increasing the attraction of public transport.

The Future of Demand for Food Away from Home and Prepared Food: Cohort and Age Effects in Japan

The demand for two composite goods, food away from home (FAFH) and prepared food (PF), are trending upward in Japan as Japanese society ages. This paper estimates the demand function of FAFH and PF. We adopt the almost ideal demand system and predict the effect on future demand from age and cohort changes. We find that the age effect decreases both while the cohort effect increases the share of FAFH but decreases that of PF. Over time, the demand for FAFH gradually decreases but remains stable. The demand for PF has been decreasing as of 2010 and more quickly than for FAFH. The reason is that both the age effect and the dynamic population trend decrease the demand for both goods, while the cohort effect slows the decrease in demand for FAFH but accelerates that for PF.

The Quest for Security: Alliances and Arms

Security issues have long been linked to the study of international relations. The crucial issue which scholars and decision makers have sought to understand is how states can avoid being victimized by war while also being prepared for any eventuality of war. Particular attention has been devoted to alliances and armaments as the policy instruments that should have the greatest effect on state war experiences. Scholars have attempted to use balance of power theories to explain the interrelationships between arms, alliances, and international conflict, but the overwhelming lack of empirical support for such theories led the field to look for alternatives. This gave rise to new theorizing that recognized variance in national goals and an enhanced role for domestic politics, which in turn encouraged empirical tests at the nation state or dyadic level of analysis. Drawing from existing theoretical perspectives, more specific formal models and empirical tests were invoked to tackle particular questions about alliances and arms acquisitions. Despite significant advances in individual “islands of theory,” however, integrated explanations of the pursuit and effects of security policies have remained elusive. An important consideration for the future is to develop of theories of security policy that take into account the substitutability and complementarity of varying components. There have been two promising attempts at such integrated theorizing: the first explains the steps to war and the second is based on the assumption that states pursue two composite goods through foreign policy.

THE RETIREMENT CONSUMPTION PUZZLE: EVIDENCES FOR BRAZIL AND THE STATE OF RIO GRANDE DO SUL

The life cycle/permanent income theories predict that consumption would be constant over time but such result has been challenged by some empirical studies which show a systemic decrease in consumption at retirement. This paper aims to investigate the so-called retirement consumption puzzle for Brazil and the State of Rio Grande do Sul. We estimated consumption functions controlling age effects for 12 composite goods using information from the 2008-2009 Household Budget Survey. The results showed that households’ expenditures systematic decrease with age for 7 composite goods (food, clothing, transport, hygiene, education, recreation and miscellaneous) and increase with age for 2 composite good (health care and housing). The patterns found to the households’ expenditures by age structure brings evidence of retirement consumption puzzle in Brazil.

Alliance Partner Choice in Markets with Vertical and Horizontal Externalities

This study investigates the choice between complementary and parallel alliances in a market with vertical and horizontal externalities. One composite goods firm competes with two components producers, each providing a complementary component of a differentiated composite good. Although the joint profits from a parallel alliance between the composite goods firm and a components producer are always larger than those from a complementary alliance between components producers, through Nash bargaining, a components producer prefers the complementary (parallel) alliance when the degree of product differentiation is sufficiently large (small). Combined with the result that a complementary alliance is socially preferable, our findings provide meaningful implications for antitrust policy.