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Conditions for achieving efficient allocation of resources in a dynamic private values setting where designers learn about the distribution of agent values are studied. Implementation of efficient policies is possible upon delaying necessary monetary transfers.

The trends of research into the utility of resources to fulfil the needs of human beings, since the development of the hedonimeter by Edgeworth are described.

In this paper we argue that the political incentives that resource endowments generate are the key to understanding whether or not they are a curse. We show: (1) politicians tend to over-extract natural resources relative to the efficient extraction path because they discount the future too much, and (2) resource booms improve the efficiency of the extraction path. However, (3) resource booms, by raising the value of being in power and by providing politicians with more resources which they can use to influence the outcome of elections, increase resource misallocation in the rest of the economy. (4) The overall impact of resource booms on the economy depends critically on institutions since these determine the extent to which political incentives map into policy outcomes. Countries with institutions that promote accountability and state competence will tend to benefit from resource booms since these institutions ameliorate the perverse political incentives that such booms create. Countries without such institutions however may suffer from a resource curse. JEL classification: D72; D78; O; Q2 Keywords: Natural resources; Political economy; Clientelism

This article demonstrates that the strategy is best which selects the alternatives with the highest individual indices, such as in the allocation of workers to firms.

Divisible goods are represented by simple geometric sets including simplexes and polyhedral cones. The equitable allocation of these goods is demonstrated by versions of David Gale's covering lemma.

A study was conducted to examine the f-core equivalence theorem for continuum economies with widespread externalities. Unlike the 1989 work conducted by Hammond et al., the latest study assumed that externalities need not arise from trading activities. In addition, free disposal of divisible goods was not assumed, and that preferences were required only to attain a minimal change in nonsatiation. Results showed only that any f-core allocation yields a compensated Nash-Walrasian equilibrium.

Varying effects were noted with regards to the effect of establishing private government on the welfare of the population. In some situations, creation of a private government leads to enhancement of aggregate welfare for members and nonmembers. In other situations, creation of a private government leads to reduction of aggregate welfare not only for a majority of the population but also for its members.

Households typically have to decide on allocating the resources which they control between individualized activities and activities where there is common access. In this case, the ability to cooperate in the management of common access resources determines the relative profitability of the two resource bundles, hence, affecting the allocation of resources held by households to one or the other. The Mexican social sector is of this type, with land under individual jurisdiction allocated to either crops or pastures: the product of land in crops is privately appropriated, while land in pastures is collectively grazed. We develop a model that shows that, when cooperation fails in the management of collectively grazed pastures, more land is allocated to crops than under successful cooperation and less to pastures, while the stocking rate on pastures is increased. This results in too much land in extensive crops and too many animals per hectare of pasture - a well-known observation for Mexico. This prediction is confirmed by analysis of data from a sample of Mexican social sector households. Keywords: Dual property rights; Land allocation; Overgrazing; Mexico

This article investigates sex-specific mortality rates in eighteenth- and nineteenth-century rural Germany to determine whether there was any gender bias in the allocation of household resources. Family reconstitution data from 60 villages provide evidence of considerable excess female mortality among married adults. The empirical findings are consistent with a bargaining approach to understanding intrahousehold resource allocation and suggest that women's survival disadvantage is related to their positions in the remarriage market, the perceived value of their work, as well as differences in altruism. Agricultural change appears to be one factor responsible for the emergence of this disadvantage.

I. INTRODUCTION Since the pioneering work of Harberger (1954), there has been an immense amount of empirical work devoted to quantifying allocative efficiency losses caused by market power (Siegfried and [...]

A two-region model with inter-regional migration of workers and inter-regional trade of goods was developed in order to assess the effects of an optimal allocation and an optimal level method occurring in areas of infrastructure provision. Results show three factors to strongly influence the involvement of either the balanced allocation scheme or the polarized allocation scheme with optimal policy. These include the extent of substitution in consumption, the level of increasing returns in private sector production, and extent of the regional differences with respect to comparative advantage.

This paper tests for the motives for private income transfers. We consider two motives: altruism and exchange. The question of private-transfer motives is important because such motivation can influence the effects of public income transfers on the distribution of income. Using a household survey for Peru, we find that transfer amounts received increase with recipient pre-transfer income, which contradicts a key prediction of the strong form of the altruism hypothesis but is consistent with exchange. We also find that capital market imperfections are likely to be an important cause of private transfers and that social security benefits 'crowd out' the incidence of private transfers. JEL classification: O15; O16; J14; I30; H55 Keywords: Intergenerational transfers; Liquidity constraints; Social security; Developing economies; Altruism; Bargaining

The influence of cumulative investments in human and physical capital on economic expansion is evaluated based on an analysis of advanced growth accounting research, which calculates for what is called total factor productivity growth, and the estimation of total factor productivity growth based on data for 53 nations during the period 1965-1990. Results indicate that investment in human and physical capital has been responsible for most of the growth of productivity.

This series of three classroom experiments demonstrates the tragedy of the commons and suggests two possible solutions: communication and individual property rights. In the first and second experiments, students jointly own a renewable resource in the form of a plate of M&Ms. Communication is not allowed in the first experiment, whereas in the second experiment students may try to influence each other's desired harvest. The third experiment divides the plate to establish individual property rights., I. INTRODUCTION This series of experiments demonstrates over-harvesting of a so-called common-property renewable resource. The experiments explore two different solutions to the tragedy of the commons: group communication and the [...]

Common preference models of family behavior imply income pooling, a restriction on family demand functions such that only the sum of husband's income and wife's income affects the allocation of goods and time. Testing the pooling hypothesis is difficult because most family income sources are not exogenous to the allocations being analyzed. In this paper, we present an alternative test based on a 'natural experiment' - a policy change in the United Kingdom that transferred a substantial child allowance to wives in the late 1970s. Using Family Expenditure Survey data, we find strong evidence that a shift toward greater expenditures on women's clothing and children's clothing relative to men's clothing coincided with this income redistribution., I. Introduction Traditional models of family behavior assume that family members act as if they are maximizing a single utility function. The common preference ordering may be the outcome of [...]

Resource allocation in intergenerational households is examined using new data from the Survey of Assets and Health Dynamics. Results reveal that the design and enforcement of family care policies should consider the mechanisms of intrahousehold resource allocation. Regression results prove strongly that intergenerational household resource allocation contradicts the resource pooling hypothesis implied by the common-preference model.

An examination of the existence and relevance of business organizations, relative to the price system in resource allocation, explains the difference between the Neoclassical view and R.H. Coase's theory of business organizations. The Neoclassical theory concentrates on specialization and not on managed coordination, which is the focus of Coase's view. Contemporary theory is more similar to Coase's theory owing to its concern on management-based controls and market-guided incentives.

A study was conducted to analyze the allocation of market goods and leisure of urban and rural Italian households in terms of labor choices. A Nash bargaining model was used in the study to simulate household and extra-household labor supply. Results revealed that the urban family allocates more time to leisure compared to rural households and that there are significant differences in the consumption levels of both households.

Competitive allocations of exhaustible resources have been examined in an overlapping generations model (OLG). Partial equilibrium Hotelling-type models have been expanded to a general equilibrium framework to address questions about market allocation of resources and efficiency. The behavior of equilibrium resource extractions and prices are examined in the context of the relationship between preferences and technology. The OLG equilibria is found to demonstrate nonclassical behavior in cases where extractions do not continuously decrease over time.

Budget allocation is used to develop a price-demand curve for a product as a function of product characteristics and in the presence of competing products. Subjects were asked to develop a monthly budget for the use of on-demand video (VOD) and other entertainment options. These budgets where then used to predict the price-demand relationship for VOD and the cross-price-demand relationship for other entertainment options.

A study was conducted to determine whether consumers prefer scarce goods to be allocated through the market or regulation. Results show that distribution preferences are determined by the nature of the shortage. These include whether the shortage affected people's health, number of people affected by the shortage and the duration of the shortage. Regulation is preferred when the scarcity can lead to outrage if prices are increased.

The efficiency of commodity allocation systems is determined by comparing free access and price controlled systems with price and rationing systems. An extended Weitzman allocation model, which considers quadratic loss as a proxy to efficiency, indicates that optimal price controls are more effective than free access allocation. A rationing system which precludes resale of commodities entails government distribution costs which reduces its efficiency.

The uniform rule without continuity is still unique even in an environment with a finite number of potential players. A model that considers single value and envy-freeness indicates that bilateral consistency can only represent allocations of different economies. This is in contrast with a previous study by Thomson which indicate that continuity, as well as bilateral consistency, can be satisfied by the uniform rule. The approach used cannot be applied to multi-valued settings with infinite number of potential agents.

Female control of household resources is often associated with consumption preferences which favor basic needs and child welfare. Using data from the Dominican Republic, this study tests differences in spending patterns, consumption preferences, and child nutritional (anthropometric) status according to four definitions of female household headship. Female-headed households (FHH) allocate the same amount or less of their budgets to food than male-headed households (MHH), in absolute and proportional terms. FHH consume higher quality, more expensive and protein-dense foods (more animal products; less of beans and rice) than MHH. Average caloric adequacy per adult-equivalent is equal or lower in FHH, but children's anthropometric status is the same or higher; it is significantly higher in low-income FHH, possibly due to intrahousehold allocation of food which favors children.

The market situation characterized by a constrained efficient allocation that is capable of supporting an incomplete markets equilibrium is discussed. Such a situation is obtained when an appropriate dissemination of the endowments of the first period is undertaken. This kind of allocation is proven to exist in an economy when it assumes an open and dense nature in an economy.

How do parents allocate scarce resources among their children? While much research has focused on investment strategies, parents' preferences for equity may also play a role in the household allocation of resources. While the studies that incorporate equity define it in limited terms, in this paper, several fairness concepts are applied to the problem of intrahousehold distribution. Comparing food allocations and health outcomes across fairness concepts indicates that each concept results in a different allocation of food and a different health outcome. The implications of this result for empirical studies of intrahousehold distribution and policy interventions are discussed. Keywords: Fairness; Intrahousehold; Equity; Distribution; Health JEL classification: D1

The manner by which local government bureaucracies cope with the problem of increasing threats to public safety in the face of budgetary constraints is analyzed. The Dallas Police Dept. is used as a model for the analysis which incorporates technology and the substitutability of civilian and police personnel. Results show that, unlike during ordinary circumstances, the bureaucracy tends to be wise and efficient in allocating resources when faced with the twin social and financial problem.

Full insurance is hindered in a labor market characterized by employment risks and moral hazard problems. However, such a market can be improved through an efficient allocation of consumption and laborer distribution. The establishment of a lower bound on expected discounted utility generates an efficient unemployment insurance program where individual entitlements to utility are evenly distributed.

Risks of injury, sickness and death can be controlled by market choices that are defined by personal prices for safety. This analogy is applied in the labor market, where a wage-risk relationship sets higher compensation for riskier jobs. Such a relationship generates an efficient and competitive market, where resources are properly allocated to counter risk opportunities. However, control over resource allocation for risk control must be balanced with economic development.

J.K. Brueckner was able to show that the hedonic estimates of property values can be employed to examine the allocative efficiency of local government. However, the application of his technique using data on multiple labor markets within a given state led to inconsistent findings. This was because governmental amenities might have been capitalized into wage differentials instead of property values. To avoid this mistake, Brueckner's approach is applied to data on a single labor market. This sidesteps the possibility of wage differentials that may have given rise to specification error in prior studies. Findings The cross-sectional analysis utilizes spatial correlation techniques as a way to control for any benefit spillovers. Results imply that local governments do not overprovide public services in a systematic manner and may underprovide highway services.

This article examines the relationship between family structure, time management, labor supply, and income. Topics include parent care, child rearing, financial management, and resource allocation.

As relative rewards that different professions receive are a key factor m the allocation of talent, what determines the reward structure of a society is an important question. This paper develops an equilibrium model of the allocation of talent between productive and unproductive activities (such as rent-seeking). The existence of rent-seeking creates a negative externality on productive agents and implies that relative rewards are endogenously determined. The same externality can also lead to the existence of multiple equilibria, each with different reward structures. In a dynamic setting, allocations of past generations as well as expectations of future allocations influence current rewards and the society may get trapped in a 'rent-seeking' steady state equilibrium. The paper also discusses how the non-pecuniary reward structure can be influenced by equilibrium selection and a historical example that suggests the presence of a causal link from the allocation of talent to non-pecuniary rewards. Keywords: Reward structures; Rent-seeking; Multiple equilibria; History dependence; Social consensus

1. Introduction It has been argued that, by lowering agriculture's terms of trade with industry, governments, particularly those of socialist countries in the early stages of economic development, are able [...]

A research investigation into equity issues that encompass resource allocation was presented. Particular attention was paid to efficiency and equity interactions, including the function of information in resource and property allocation. Pareto-efficient allocations and equity considerations based on a fairness criterion were used to develop a model for economic and policy analysis. An application of the model showed that information and property rights were important in evaluating efficiency and equity issues. The model also showed how both market and non-market tools function in resource allocation.

Dichotomous-choice contingent-valuation questions are statistically inefficient because a large number of observations is needed to identify the underlying distribution of resource values with any degree of accuracy. A follow-up dischotomous-choice question is an alternative questioning strategy. The assumption that that the identical unobserved resource value motivates both responses is relaxed.

This paper examines the resource allocational and welfare effects of exogenous inflows of foreign capital in a general-equilibrium model with oligopolistic competition and unemployment. Although the welfare impact for the short run is ambiguous and dependent upon the strength of excess profits and scale economies relative to unemployment in manufacturing, in the long run additional inflows of foreign capital always improve national welfare with capital mobility. Hence, attracting foreign capital remains a sound policy for economies characterized by imperfect competition, scale economies and regional unemployment. Keywords: International capital mobility; Imperfect competition; Welfare

I. Introduction In recent years a number of empirical studies of the intrahousehold distribution of resources have appeared motivated in part by the recognition that family behavior may play an [...]

Research was conducted on the efficient allocation of a nonconventional and nonrenewable source. Tight gas was chosen as the resource, and declining marginal costs for nonconventional resources were integrated into a model of Canadian natural gas allocation. The result is a representation of rising, declining and constant marginal costs for various gas resources and data hint at multiple price equilibria as well as the existence of likelihood extreme optimal solutions.

Research was conducted on the least-cost spending of electric utilities on demand-side management (DSM) programs. Cost data were collected from Pacific Gas and Electric Co. and Portland General Electric Co. Terms of trade were established for power import and the subsidizing of DSM in another utility. Results showed the possibility of managing a mutually beneficial exchange of DSM investment for electric power. The cost savings were found to be significant and mirror the potential of DSM-power-exchange agreements in resource planning.

in the system is relatively steady. Problems arise when the water flow is highly erratic because an irrigator owning a particular slot is still uncertain about his water supply (see [...]

The factor of group size and logistical problems in the provision of public goods were studied. There is an assumption in economics and the social sciences that the capability to furnish a public good is inversely related to group size. A multiple-session experiment called the Voluntary Control Mechanism (VCM) evaluated the public good performances of group sizes of four, 10, 40 and 100. The VCM indicated that group sizes of 40 and 100 were more efficient in providing public goods than the four and ten groups.

Walrasian resource allocation is assessed by using social choice axioms which reflect concepts of collective rationality, ethical considerations and/or informational constraints. Two types of domains are proposed. The ability of the Walras rule to satisfy core property, non-discrimination, generalized monotonicity and local decisiveness is proven by using the Debreu-Scarf convergence theorem.

A three-sector general equilibrium model is used to study the implications of a increase in content protection under the assumption of variable labour supply (VLS). The role of VLS is highlighted in the paper. An increase in domestic content requirements increases the equilibrium labour supply, which magnifies the policy effects on the output levels (of agricultural, manufacturing, and intermediate goods) and the imports of foreign intermediates. Furthermore, the policy change may increase the national income of the economy while the nationa welfare is decreased.