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An Experimental Investigation Of Income, Insurance, And Investments In Health Over The Life Course, J. Dustin Tracy, Hillard Kaplan, Kevin A. James, Stephen Rassenti 2019 Chapman University

An Experimental Investigation Of Income, Insurance, And Investments In Health Over The Life Course, J. Dustin Tracy, Hillard Kaplan, Kevin A. James, Stephen Rassenti

ESI Working Papers

We examine the impacts of age, income and insurance plan on behavior in a virtual environment with cash-motivated subjects, who live multi-period lives in which they earn income and spend on enjoyment, insurance, and investments in health. Health shocks increase simulating aging. The 2x2 experimental has high and low income subjects, and offers employer-based or actuarial insurance. We find: 1) subject behavior approximated optimal responses; 2) in all treatments, subjects under-invested in health early in life and over-invested in health late in life; 3) subjects in the employer-based plan purchased insurance at higher rates; 4) the employer-based plan reduced differences ...


Classical Economics: Lost And Found, Sabiou M. Inoua, Vernon Smith 2019 Chapman University

Classical Economics: Lost And Found, Sabiou M. Inoua, Vernon Smith

ESI Working Papers

"We argue that neoclassical value theory suffers from a more basic and serious logical indeterminacy, which is inherent in the axiom of price-taking behavior, and which renders price dynamics indeterminate before inquiring as to its stability. If everyone in the economy takes price as given, whence come these prices? Who is giving these prices? Jevons avoided the indeterminacy by assuming that people must have complete information on supply and demand, and the consequent equilibrium prices—‘perfect competition.’ Walras in effect imported an external agent who found the prices by trial-and-error-correction (the Walrasian Auctioneer). Paradoxically, both approaches had the potential better ...


The Effect Of Social Information In The Dictator Game With A Taking Option, Tanya O'Garra, Valerio Capraro, Praveen Kujal 2019 Middlesex University

The Effect Of Social Information In The Dictator Game With A Taking Option, Tanya O'Garra, Valerio Capraro, Praveen Kujal

ESI Working Papers

We experimentally study how redistribution choices are affected by positive and negative information regarding the behaviour of a previous participant in a dictator game with a taking option. We use the strategy method to identify behavioural ‘types’, and thus distinguish ‘conformists’ from ‘counter-conformists’, and unconditional choosers. Unconditional choosers make up the greatest proportion of types (about 80%) while only about 20% of subjects condition their responses to social information. We find that both conformity and counter-conformity are driven by a desire to be seen as moral (the ‘symbolization’ dimension of moral identity). The main difference is that, conformity is also ...


Cournot Marked The Turn From Classical To Neoclassical Thinking, Vernon L. Smith, Sabiou M. Inoua 2019 Chapman University

Cournot Marked The Turn From Classical To Neoclassical Thinking, Vernon L. Smith, Sabiou M. Inoua

ESI Working Papers

For classical economists, markets served the highest value buyers without anyone in the market needing to know that it was possible to write aggregate buyer reservation prices in the form, D = F (p). Cournot, thereby launched neoclassical economics as modelling and thinking of economic action in terms of their outcome effects, rather than their roots in human experience.


Investing In Education: Impact Of Student Financial Stress On Self-Reported Health, Stephen Poplaski, Randy Kemnitz, Cliff A. Robb 2019 Kansas State University

Investing In Education: Impact Of Student Financial Stress On Self-Reported Health, Stephen Poplaski, Randy Kemnitz, Cliff A. Robb

Journal of Student Financial Aid

Through the lens of Human Capital theory, the role of financial aid (both amount and type) is explored in the context of student financial stress, and ultimately general student health. Data are taken from a sample of 232 students from a major Midwestern university who were surveyed about their financial attitudes, behavior and knowledge. The presence and amount of federal loans was associated with self-reported financial stress, and the validated stress measure was further associated with students’ self-reported health. A number of personal life events (i.e. job loss) were also associated with higher stress levels. Implications are discussed.


Working Paper No. 05, Proudhon, Bakunin And Anarcho-Socialism, Lauren Sweger-Hollingsworth 2019 Portland State University

Working Paper No. 05, Proudhon, Bakunin And Anarcho-Socialism, Lauren Sweger-Hollingsworth

Working Papers in Economics

This inquiry seeks to establish that Pierre-Joseph Proudhon and Mikhail Bakunin advanced ideas supporting what can be identified as anarcho-socialism, and the distinctness in their approaches can also be associated with splits that emerged with the First International Workingmen’s Association. For Proudhon, the institution of property entrenches inequality. In Proudhon’s judgement, society must orient towards advancing independence, proportionality, equality, and individual autonomy without limitations from legal structures. In Bakunin’s anarcho-socialist view, society must reject all forms of authority. In Bakunin’s conception of society, economic and political structures must be constructed from base to summit, founded upon ...


Working Paper No. 17, William Petty And Political Economy, Clarissa Allen 2019 Portland State University

Working Paper No. 17, William Petty And Political Economy, Clarissa Allen

Working Papers in Economics

This inquiry seeks to establish that during the first part of the 1600s, William Petty generated original contributions to political economy. Subsequent to the Irish rebellion and in the wake of the English occupation of Ireland, Petty led a team of surveyors for measuring out areas of Ireland. The survey that he led mapped selected territories and detailed numerous characteristics, thus employing an early, rudimentary, but highly insightful census method. Petty sought to describe his world objectively and quantitatively through the use of numbers, weights, and measures – rather than subjectively. Petty developed a method of calculation still famously known as ...


Working Paper No. 04, Marx And Religion, Lauren Sweger-Hollingsworth 2019 Portland State University

Working Paper No. 04, Marx And Religion, Lauren Sweger-Hollingsworth

Working Papers in Economics

This inquiry seeks to establish that, in his writings, Karl Marx offers his perspectives on religion. The origins of Marx’s conception of religion can be traced to his family history, adolescence, and time at the University of Berlin. Marx’s criticism of contemporary philosophy offers a penetrating account of his views on religion, proving critical of the individualism and idealism implemented by his contemporaries. In Marx’s judgement, religion offers a false sense of solace in a world marked by abuse. Religion rationalizes domination, sows societal divisions, and preserves oppressive institutions. Marx’s materialist approach focuses on the real-life ...


Working Paper No. 15, Jevons’ Selective Interpretation Of Bentham, Devin Bales 2019 Portland State University

Working Paper No. 15, Jevons’ Selective Interpretation Of Bentham, Devin Bales

Working Papers in Economics

This inquiry seeks to establish that in The Theory of Political Economy, W. Stanley Jevons offers a selective interpretation of Jeremy Bentham’s notion of utility. Moreover, Jevons does so in a manner that generates enduring implications for Economics as a science. Special emphasis is placed upon Jevons’ use of Bentham’s understanding of the circumstances that direct pursuits of pleasure and avoidance of pain. Emphasized is that Jevons’ omission of ‘fecundity, purity, and extent’ as quantifiers of utility, creates enduring implications that emerged years after his book’s publication in 1871. What is finally considered are some of the ...


Working Paper No. 16, Had We Paid Attention To Keynes?, Saidhbhe Quigley 2019 Portland State University

Working Paper No. 16, Had We Paid Attention To Keynes?, Saidhbhe Quigley

Working Papers in Economics

This inquiry seeks to establish that a host of problems could have been averted had we paid attention to Keynes. In the view of Keynes (2013, pp. 23-28), the Versailles Treaty was unnecessarily punitive towards Germany. He explains that the terms negotiated during the Paris Peace Conference were at odds with the agreement that took place during the Armistice when both sides decided to lay down their weapons and end fruitless battling. Consequently, following the Wall Street Crash of 1929, Germany registered as one of the most nations most tragically affected by the Great Depression. This is partially because of ...


Working Paper No. 20, Veblen And The Question Of Sexual Selection, Jenica M. Kramer 2019 Portland State University

Working Paper No. 20, Veblen And The Question Of Sexual Selection, Jenica M. Kramer

Working Papers in Economics

This inquiry seeks to counter a hypothesis recently advanced by Jon D. Wisman; which states that Thorstein Veblen “missed” the opportunity to incorporate sexual selection into his evolutionary economics. To the contrary, I shall argue that Veblen’s vision is not at all lacking and that he intentionally failed to integrate into his evolutionary thinking the animal drive of sexual selection. First-off, I offer an account of Wisman’s thesis and this is followed by a refutation of his argument while making use of Veblen’s key concepts. Tracing the evolution of “conspicuous consumption” to its social inception, I endeavor ...


Working Paper No. 21, The Union Of Democracy And Socialism: Towards An Intellectual Biography Of Karl Kautsky, Leo Solovyov 2019 Portland State University

Working Paper No. 21, The Union Of Democracy And Socialism: Towards An Intellectual Biography Of Karl Kautsky, Leo Solovyov

Working Papers in Economics

This inquiry seeks to establish that Karl Kautsky’s vision of social democracy considered and incorporated the best of his day’s socialist theory, leading to the creation of a powerful formula that has also proved enduring, leading towards the achievement of socialist goals. Karl Kautsky was influenced by his work with Karl Marx, Eduard Bernstein and Friedrich Engels. During his time with these noted thinkers he created a unique form of socialism that today is termed ‘social democracy’. Kautsky advanced the view that socialism could better survive when it integrated democracy. Socialism cannot have a period of dictatorship for ...


Working Paper No. 23, Hyman Minsky And Financial Instability, Gabriel Caballero 2019 Portland State University

Working Paper No. 23, Hyman Minsky And Financial Instability, Gabriel Caballero

Working Papers in Economics

Hyman Minsky can readily be categorized as a post-Keynesian economist, for he advances a purist’s interpretation of John Maynard Keynes’ The General Theory of Employment, Interest and Money. Through employing a rigorous Keynesian framework, Minsky developed an enduring contribution to the literature bearing the title: “The Financial Instability Hypothesis” (1992), that appears as Working Paper No. 74 at the Jerome Levi Institute. In this document Minsky considered forces and variables that induce financial instability—that are also specific to advanced capitalist economies. He challenges the classical economists and the notion that a general equilibrium will prevail. Instead, Minsky goes ...


Working Paper No. 24, Economic Thought During Japan’S Meiji Era, Karson M. Pence 2019 Portland State University

Working Paper No. 24, Economic Thought During Japan’S Meiji Era, Karson M. Pence

Working Papers in Economics

This inquiry seeks to establish that it was Fukuzawa Yukichi who played a key roled in developing ideas that assisted the modernization of Japan, leading up to and especially after the Meiji Reformation of 1868. In An Outline of a Theory of Civilization [1875], Fukuzawa advances a clear understanding that Japan should make the shift from a producer nation to a manufacturer nation, and without having to bear the costs of importing vast sums of foreign capital. Under suspicion that the 250 year rule of the Bakufu left the Japanese economy stagnant and weak, Fukuzawa asserted that the only means ...


Working Paper No. 25, On The Importance Of Contributions By Robert Torrens, Mitchell Veele 2019 Portland State University

Working Paper No. 25, On The Importance Of Contributions By Robert Torrens, Mitchell Veele

Working Papers in Economics

This inquiry seeks to establish that although hardly recognized, Robert Torrens’ contributions prove significant and also provided bases for advances later credited to David Ricardo. In his first published work, An Essay on the External Corn Trade [1815], Torrens discusses at length the negative consequences of Britain’s Corn Laws, based upon the practice of restricting foreign corn imports. Through this prescient work, Torrens should be considered as the first to advance several concepts and principles that prove foundational for classical economic thought. Though attributed to David Ricardo, the principle of comparative advantage was actually first described by Torrens and ...


Working Paper No. 26, Basic Tenets Of The Austrian School Of Economics, Vladislav Yurlov 2019 Portland State University

Working Paper No. 26, Basic Tenets Of The Austrian School Of Economics, Vladislav Yurlov

Working Papers in Economics

The Austrian school of economic thought has offered many ideas throughout its more than century old history. Beginning with Carl Menger’s Principles of Economics, the focus of this school dealt with individuals acting in a society for the benefit of everyone. With liberalism at their core, thinkers such as Friedrich von Wieser, Ludwig von Mises, and Friedrich Hayek saw economics as a practical approach to living. This inquiry seeks to establish that the Austrian school of economics advanced basic tenets. Building off of, and often creating their own ideas, Austrian economists gave rise to the principles of marginalism, significance ...


Working Paper No. 13, Friedrich List And National Development, Mitch Priestley 2019 Portland State University

Working Paper No. 13, Friedrich List And National Development, Mitch Priestley

Working Papers in Economics

This inquiry seeks to establish that Friedrich List offers an approach to national economic development based upon implementing policies. List conceptualizes and describes a situation wherein the United States, along with Germany and some other Continental European countries, face challenges dissimilar to Britain. List emphasizes an alternate approach towards national development that flies in the face of Adam Smith’s laissez-faire, free-trade prescription, focusing instead upon the powers of production, that he suggests, offer a proper measure of a nation’s wealth. List is a limited protectionist who advocates for national policies suited to a nation based upon its history ...


Working Paper No. 18, Thomas Piketty On Capital And Inequality, Max Randall 2019 Portland State University

Working Paper No. 18, Thomas Piketty On Capital And Inequality, Max Randall

Working Papers in Economics

This inquiry seeks to establish that, in his Capital in the Twenty-First Century, Thomas Piketty advances ideas concerning the origins and implication of economic inequality. Piketty commences his inquiry by considering and detailing wage differences amongst distinct classes of society. This mechanism for the distribution of income is compared across selected nations, and the differing tendencies over time are examined in detail. Distinct from working wages, Piketty considers income effects associated with capital ownership. Adding to this, Piketty shows that effects of inheritance need be considered as capital is passed to successive generations, thereby allowing the accruing of monetary gains ...


Working Paper No. 27, Processes In Capital Accumulation Leading Towards Inequality, Matthew Perez 2019 Portland State University

Working Paper No. 27, Processes In Capital Accumulation Leading Towards Inequality, Matthew Perez

Working Papers in Economics

This inquiry considers, compares, and contrasts two different theoretical explanations of processes leading towards capital accumulation and also inequality. First considered is Immanuel Wallerstein’s Historical Capitalism. In this book he advances and stresses that processes leading towards capital accumulation are inherently unequal, as these processes are based upon commodification, proletarization, and jurisdiction. The second part considers the views advanced by Thomas Picketty. In his Capital in the Twenty First Century, Picketty offers a fundamentally different understanding of what drives and leads towards capital accumulation and income inequality. In contrasts to Wallerstein, Picketty explains that the dynamic generating capital accumulation ...


Essays On Microeconomic Problems In Multilateral Settings, Ke Xian AuYong 2019 The University of Western Ontario

Essays On Microeconomic Problems In Multilateral Settings, Ke Xian Auyong

Electronic Thesis and Dissertation Repository

This thesis consists of three chapters on microeconomic problems in multilateral settings. In the first chapter, I use a model with two local bidders and a global bidder in a simultaneous ascending auction. I find that the simultaneous ascending auction does not allocate two heterogeneous objects efficiently. This result holds with and without resale and is independent of the resale mechanism. Then I use a fixed resale mechanism with take-it-or-leave-it offers after the auction to study the effects of resale on allocation efficiency. In cases where the two local bidders win the objects inefficiently, no resale occurs. Therefore, whenever the ...


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