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Template-Type: ReDIF-Paper 1.0
Title: Human Capital and Labor Supply: A Synthesis
Author-Name: Alan S. Blinder
Author-Person: pbl41
Author-Name: Yoram Weiss
Number: 0067
Creation-Date: 1975-01
Order-URL: http://www.nber.org/papers/w0067
File-URL: http://www.nber.org/papers/w0067.pdf
File-Format: application/pdf
Publication-Status: published as Blinder, Alan and Weiss, Yoram. "Human Capital and Labor Supply: A Synthesis." Journal of Political Economy, Vol. 83, No. 3, (June 1976), pp. 449-472.
Abstract: It is by now widely recognized that investment decisions play a major role in the determination of individual age-earnings profiles. The purpose of this paper is to present a simple life-cycle model of investment in human capital in which leisure choices are explicitly incorporated. In so doing, we integrate two previously disparate branches of life-cycle theory: models of labor supply with exogenous wages, and models of human capital formation with exogenous leisure. Of course, to accomplish this, we must posit utility maximization as the individual's goal rather than income maximization.
Handle: RePEc:nbr:nberwo:0067
Template-Type: ReDIF-Paper 1.0
Title: On the Theory of Productive Saving
Author-Name: Isaac Ehrlich
Author-Person: peh1
Author-Name: Uri Ben-Zion
Number: 0071
Creation-Date: 1975-01
Order-URL: http://www.nber.org/papers/w0071
File-URL: http://www.nber.org/papers/w0071.pdf
File-Format: application/pdf
Publication-Status: published as Ehrlich, Isaac & Ben-Zion, Uri, 1976. "Asset Management, Allocation of Time, and Returns to Saving," Economic Inquiry, Oxford University Press, vol. 14(4), pages 558-86, December.
Abstract: The central thesis of this paper is that the management of portfolios incorporating a variety of investment assets does require the use of time and other scarce resources in searching for, collecting, interpreting, and applying relevant information. Accordingly, the returns on these assets would depend, in part, on managerial efforts and abilities and other related inputs. The plan of the paper is as follows. A life cycle model of consumption and productive saving without borrowing is developed in Section I. Borrowing is introduced into the model and its relationship to productive saving is explored in Section II. In Section III we attempt to elucidate the model's implications concerning capital accumulation paths and life cycle variations in resource allocations to productive activities. Implications regarding the determinants of the propensity to save are derived in Section IV and then briefly examined in light of some earlier theoretical and empirical findings.
Handle: RePEc:nbr:nberwo:0071
Template-Type: ReDIF-Paper 1.0
Title: The Role of Physicians in the Production of Hospital Output
Author-Name: Mark Pauly
Author-Name: Mark A. Satterthwaite
Number: 0073
Creation-Date: 1975-02
Order-URL: http://www.nber.org/papers/w0073
File-URL: http://www.nber.org/papers/w0073.pdf
File-Format: application/pdf
Publication-Status: published as (Published as "The Pricing of Primary Care Physicians' Services: A Test ofthe Role of Consumer Information") BELLJ, Vol. 12, no. 2 (1981): 488-506.
Abstract: The purpose of this paper is to present estimates of production functions for hospitals in which a measure of the level of physician input is utilized. Since no data on the total number of hours worked by non-salaried physicians is available for a large sample of U.S. hospitals, alternative measures of physician input had to be constructed. As these measures are somewhat imperfect, the results I obtain should be considered tentative and preliminary.
Handle: RePEc:nbr:nberwo:0073
Template-Type: ReDIF-Paper 1.0
Title: Variation Across Household in the Rate of Inflation
Author-Name: Robert T. Michael
Note: EFG
Number: 0074
Creation-Date: 1975-03
Order-URL: http://www.nber.org/papers/w0074
File-URL: http://www.nber.org/papers/w0074.pdf
File-Format: application/pdf
Publication-Status: published as Michael, Robert T. "Variation Across Households in the Rate of Inflation." Journal of Money, Credit, and Banking, Vol. 11, No. 1, (February 1979), pp. 32-46.
Abstract: This paper reports on an empirical investigation of the distribution of inflation rates across households. The study uses a large cross-sectional survey of households to obtain information on the composition of the market bundles of goods and services purchased by each of several thousand households in the U.S. It also uses published data for the U.S. on monthly changes in the separate indices of prices of some fifty expenditure items which comprise consumers' market bundles. With information on price changes for these fifty items and the composition of households' consumption bundles, a price index is computed for each of some 11,000 households separately for several recent periods of time. The distributions of these price indices are studied and the relationships between household characteristics and these price indices are investigated.
Handle: RePEc:nbr:nberwo:0074
Template-Type: ReDIF-Paper 1.0
Title: Implementing and Documenting Random Number Generators
Author-Name: David C. Hoaglin
Number: 0075
Creation-Date: 1975-03
Order-URL: http://www.nber.org/papers/w0075
File-URL: http://www.nber.org/papers/w0075.pdf
File-Format: application/pdf
Abstract: As simulation arid Monte Carlo continue to play an increasing role in statistical research, careful attention must be given to problems which arise in implementing and documenting collect ions of random number generators. This paper examines the value of theoretical as well as empirical evidence in establishing the quality of generators, the selection of generators to comprise a good basic set, the techniques and efficiency of implementation, and the extent of documentation. Illustrative examples are drawn from various current sources.
Handle: RePEc:nbr:nberwo:0075
Template-Type: ReDIF-Paper 1.0
Title: Robust Non-Linear Regression Using The Dogleg Algorithm
Author-Name: Roy E. Welsch
Author-Name: Richard A. Becker
Number: 0076
Creation-Date: 1975-03
Order-URL: http://www.nber.org/papers/w0076
File-URL: http://www.nber.org/papers/w0076.pdf
File-Format: application/pdf
Abstract: What are the statistical and computational problems associated with robust nonlinear regression? This paper presents a number of possible approaches to these problems and develops a particular algorithm based on the work of Powell and Dennis.
Handle: RePEc:nbr:nberwo:0076
Template-Type: ReDIF-Paper 1.0
Title: FIML Estimation of Rational Distributed Lag Structural Form Models
Author-Name: Kent D. Wall
Number: 0077
Creation-Date: 1975-03
Order-URL: http://www.nber.org/papers/w0077
File-URL: http://www.nber.org/papers/w0077.pdf
File-Format: application/pdf
Publication-Status: published as FIML Estimation of Rational Distributed Lag Structural Form Models, Kent D. Wall. in Annals of Economic and Social Measurement, Volume 5, number 1, Berg. 1976
Abstract: The Rational Distributed Lag Structural Form (RSF) representation of an econometric model is introduced and its relationship to several standard forms of representation is discussed. The FIML estimation problem for the RSF is then considered and formulated as a nonlinear, unconstrained optimization problem. A solution to the relation optimization problem is then obtained by an application of the Davidon-Fletcher-Powell variable metric method using simple first difference approximations for the necessary gradients. This approach requires a minimum of effort on the part of the model builder since there is no longer any need to analytically determine, and then program, the gradient expressions. The feasibility of the method is demonstrated with several examples.
Handle: RePEc:nbr:nberwo:0077
Template-Type: ReDIF-Paper 1.0
Title: Tables of Sample Size For the F-Test in One Way Analysis of Variance Designs
Author-Name: Richard W. Hill
Number: 0078
Creation-Date: 1975-03
Order-URL: http://www.nber.org/papers/w0078
File-URL: http://www.nber.org/papers/w0078.pdf
File-Format: application/pdf
Abstract: This paper presents a method for computing the value of N for which the usual non-central F-test will have a certain power. Extensive tables are computed and displayed.
Handle: RePEc:nbr:nberwo:0078
Template-Type: ReDIF-Paper 1.0
Title: The Consumer Expenditure Function
Author-Name: Michael R. Darby
Number: 0079
Creation-Date: 1975-03
Order-URL: http://www.nber.org/papers/w0079
File-URL: http://www.nber.org/papers/w0079.pdf
File-Format: application/pdf
Publication-Status: published as Darby, Michael R. "The Consumer Expenditure Function." Explorations in Economic Research, Vol. 4, No. 5, (Winter/Spring 1977-1978), pp. 645-674.
Publication-Status: published as The Consumer Expenditure Function, Michael R. Darby. in Explorations in Economic Research, Volume 4, number 5, NBER. 1977-78
Abstract: A consumer expenditure function which integrates pure consumption and household investment in durable goods is formulated and estimated. Because of reduced reliance on the official classification of commodities as durable or nondurable, a considerable increase in ability to explain consumer expenditures results as compared to multiequation models. Further empirical investigation provides strong evidence that: (1) private sector income is significantly better than disposable personal income for explaining consumer expenditures, (2) the M1 definition of money is similarly superior to both M2 and M3 definitions, and (3) the weight of current income in permanent income is about 10% per annum. Data appendix included.
Handle: RePEc:nbr:nberwo:0079
Template-Type: ReDIF-Paper 1.0
Title: Inequality: Earnings vs. Human Wealth
Author-Name: Lee A. Lillard
Number: 0080
Creation-Date: 1975-04
Order-URL: http://www.nber.org/papers/w0080
File-URL: http://www.nber.org/papers/w0080.pdf
File-Format: application/pdf
Publication-Status: published as American Economic Review, Vol. 67, no. 2 (1977): 42-53.
Abstract: The objective of this paper is to draw some inferences concerning the relative magnitudes of inequality in annual earnings, the traditional measure, and in human wealth, the measure suggested by recent literature. A second objective is to assess the relative importance of schooling, measured ability and to a limited extent family background in earnings and human wealth inequality as well as the overall contribution of these variables combined. A unique feature of this study is the estimation of earnings and human wealth and their distribution for a group of men for which several age-earnings data points are available over almost an entire lifetime (ages eighteen to fifty-four).
Handle: RePEc:nbr:nberwo:0080
Template-Type: ReDIF-Paper 1.0
Title: The Parental Bequest to Children
Author-Name: Arleen Leibowitz
Number: 0081
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0081
File-URL: http://www.nber.org/papers/w0081.pdf
File-Format: application/pdf
Abstract: If the expenditure of resources in childhood affects the outcomes in adulthood, the adult distribution of education and incomes will depend at least partially on investments made in childhood. There is considerable variation in the amount of parental inputs children of various socio-economic statuses receive. In the empirical work that follows, we will show a relationship between very specific inputs of time by parents and later achievements of children.
Handle: RePEc:nbr:nberwo:0081
Template-Type: ReDIF-Paper 1.0
Title: Certain Aspects of Generalized Box-Jenkins Models
Author-Name: Richard W. Hill
Number: 0082
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0082
File-URL: http://www.nber.org/papers/w0082.pdf
File-Format: application/pdf
Abstract: We define a class of models that are generalizations of regression models and moving average-autoregressive time series models. Then we investigate the asymptotic and computational properties of the maximum likelihood estimator, with numerical examples. The main conclusion is that care must be exercised when using simple approximations to the covariance matrix of the estimates.
Handle: RePEc:nbr:nberwo:0082
Template-Type: ReDIF-Paper 1.0
Title: Robust Line Estimation With Errors in Both Variables
Author-Name: Michael L. Brown
Number: 0083
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0083
File-URL: http://www.nber.org/papers/w0083.pdf
File-Format: application/pdf
Publication-Status: published as JASA, Vol. 77, no. 377 (1982): 71-79.
Abstract: The estimator holding the central place in the theory of the multivariate "errors-in-the-variables" (EV) model results from performing orthogonal recession on variables rescaled according to the covariance matrix of the errors [7]. Our first principal finding, via Monte Carlo on the univariate model, essentially relegates this estimator to use only in large samples on very well-behaved data, i.e., with no trace of outlier contamination. A modification, requiring a robust preliminary slope, is proposed that essentially sets out the generalization to EV of the w-estimator in regression. It is demonstrated that the modification is robust to outlier contamination even in small samples, given a sufficiently good preliminary estimator. A candidate for a preliminary slope estimator based on the data is proposed arid its performance under simulation examined. Least-absolute residuals estimation in EV is cited as an alternative candidate.
Handle: RePEc:nbr:nberwo:0083
Template-Type: ReDIF-Paper 1.0
Title: A Comparison of Two Simple Methods for Obtaining Robust Confidence Intervals
Author-Name: Richard W. Hill
Number: 0084
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0084
File-URL: http://www.nber.org/papers/w0084.pdf
File-Format: application/pdf
Abstract: In this paper we study two methods for finding confidence limits for the simple median. One method is the new parametric procedure based on the sign test, and the other is derived in the paper. The two methods are compared asymptotically and also for small samples
Handle: RePEc:nbr:nberwo:0084
Template-Type: ReDIF-Paper 1.0
Title: On the Identification of Time Varying Structures
Author-Name: Thomas F. Cooley
Author-Person: pco35
Author-Name: Kent D. Wall
Number: 0085
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0085
File-URL: http://www.nber.org/papers/w0085.pdf
File-Format: application/pdf
Abstract: The identifiability of reduced form econometric models with variable coefficients is investigated using the control theoretic concepts of uniform complete observability and uniform complete controllability. First, a variant of the state space representation of the traditional reduced form is introduced which transcribes the underlying non-stationary estimation problem into one particularly suited to a Kalman filtering solution. Using such a formulation, observability and controllability can be called upon to obtain a necessary and sufficient condition for identification of the specific parameterization. The results so obtained are completely analogous to those already established in the econometric literature, namely, that the parameters of the reduced form are always identified subject to the absence of multicollinearity(referred to as "persistent excitation" in the control literature). How-ever, now the multicollinearity condition is seen to depend on the structure of the parameter variations as well as the statistical nature of the explanatory variables. The verification of identifiability thus reduces to a check for uniform complete observability which can always be affected in econometric applications. Some consistency results are also presented which derive from the above approach.
Handle: RePEc:nbr:nberwo:0085
Template-Type: ReDIF-Paper 1.0
Title: The Use of the Box Step Method in Discrete Optimization
Author-Name: Roy E. Marsten
Number: 0086
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0086
File-URL: http://www.nber.org/papers/w0086.pdf
File-Format: application/pdf
Abstract: The Boxstep method is used to maximize Lagrangean functions in the context of a branch-and-bound algorithm for the general discrete optimization problem. Results are presented for three applications: facility location, multi-item production scheduling, and single machine scheduling. The performance of the Boxstep method is contrasted with that of the subgradient optimization method.
Handle: RePEc:nbr:nberwo:0086
Template-Type: ReDIF-Paper 1.0
Title: Exports and Foreign Investment in the Pharmaceutical Industry
Author-Name: Robert E. Lipsey
Author-Person: pli259
Author-Name: Merle Yahr Weiss
Note: ITI IFM
Number: 0087
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0087
File-URL: http://www.nber.org/papers/w0087.pdf
File-Format: application/pdf
Publication-Status: published as "Foreign Production and Exports in Manufacturing Industries" From The Review of Economics and Statistics, Vol. LXIII, No. 4, pp.488-494,(November 1981). (NOTE: Reprint 240 is based on BOTH W0087 and W0131).
Abstract: The relationship between direct investment and trade has always been recognized as one of the most difficult aspects of the study of multinational companies and their impact on their own countries and their affiliates' host countries. We cannot solve the fundamental dilemma of the inability to run controlled experiments to determine what would happened in a given instance without direct governmental investment, but we have assembled a better set of data than was available to previous studies. From these we hope to narrow the range of plausible assumptions and, from there on, the range of plausible conclusions. This paper describes some experiments with our data set on a single industry: pharmaceuticals.
Handle: RePEc:nbr:nberwo:0087
Template-Type: ReDIF-Paper 1.0
Title: Three-And-A-Half Million U.S. Employees Have Been Mislaid: Or, An Explanation of Unemployment, 1934-1941
Author-Name: Michael R. Darby
Number: 0088
Creation-Date: 1975-05
Order-URL: http://www.nber.org/papers/w0088
File-URL: http://www.nber.org/papers/w0088.pdf
File-Format: application/pdf
Publication-Status: published as Darby, Michael R. "Three-And-A-Half Million U.S. Employees Have Been Mislaid: Or, An Explanation of Unemployment, 1934-1941." Journal of Political Economy, Vol. 84, No. 1, (February 1976), pp. 1-16.
Abstract: A major conceptual error in the standard BLS and Lebergott unemployment estimates for 1933-1943 is reported. Emergency workers (employees of federal contracyclical programs such as WPA) were counted as unemployed on a normal-jobs-to-be-created instead of job-seekers unemployment definition. For 1934-1941, the corrected unemployment levels are reduced by two to three-and-a half million people and the rates by 4 to 7 percentage points. The corrected data show strong movement toward the natural unemployment rate after 1933 and are very well explained by an anticipations-search model using annual full-time earnings.
Handle: RePEc:nbr:nberwo:0088
Template-Type: ReDIF-Paper 1.0
Title: Alternative Prior Representations of Smoothness for Distributed Lag Estimation
Author-Name: Robert J. Shiller
Author-Person: psh69
Number: 0089
Creation-Date: 1975-06
Order-URL: http://www.nber.org/papers/w0089
File-URL: http://www.nber.org/papers/w0089.pdf
File-Format: application/pdf
Publication-Status: published as Shiller, Robert. "Distributed Lag Estimators Based on Linear Coefficient Restrictions and Bayesian Generalization of these Estimators." IHS Journal, Vol. 4, (1980), pp. 163-180.
Abstract: In some applications of the distributed lag model, theory requires that all lag coefficients have a positive sign. A distributed lag estimator which provides estimated coefficients with positive sign is developed here which is analogous to an earlier distributed lag estimator derived from "smoothness priors" which did not assure that all estimated coefficients be positive. The earlier estimator with unconstrained signs was a posterior mode of the coefficients based on a spherically normal "smoothness prior" in the d+l order differences of the coefficients. The newer estimator with constrained sign is a posterior mode of the logs of the coefficients based on spherically normal "smoothness prior" on the d+l order differences of the logs of the coefficients. The meaning of both categories of prior is discussed in this paper and they are compared to prior parameterizations of the lag curve. Both varieties of "smoothness prior", in contrast to the parameterizations, allow the coefficients to assume any "smooth" shape subject to the sign constraint. The sign-constrained estimator has the additional advantage that it easily forms asymptotes. Moreover, the sign con-strained estimator is easily implemented. The estimate can be obtained by an iterative procedure involving regressions with dummy observations similar to those used to find the unconstrained sign estimator. An illustrative example of the application of both estimators is given at the end of the paper.
Handle: RePEc:nbr:nberwo:0089
Template-Type: ReDIF-Paper 1.0
Title: The Maximum Likelihood Stage Least Squares Estimator in the Nonlinear Simultaneous Equations Model
Author-Name: Takeshi Amemiya
Number: 0090
Creation-Date: 1975-06
Order-URL: http://www.nber.org/papers/w0090
File-URL: http://www.nber.org/papers/w0090.pdf
File-Format: application/pdf
Publication-Status: published as (Published as "The Maximum Likelihood and the Nonlinear Three-Stage Least Squares Estimator in the General Nonlinear Simultaneous Equation Model") Econometrica (1977).(Published as "The Maximum Likelihood, the Minimum Chi-Square and the
Publication-Status: published as Bierens, Herman J. and A. Ronald Gallant (eds.) Nonlinear models. Volume 2 Elgar Reference Collection. International Library of Critical Writings in Econometrics, vol. 8. Cheltenham, U.K. and Lyme, NH: Elgar, 1997.
Abstract: The consistency and the asymptotic normality of the maximum likelihood estimator in the general nonlinear simultaneous equation model are proved. It is shown that the proof depends on the assumption of normality unlike in the linear simultaneous equation model. It is proved that the maximum likelihood estimator is asymptotically more efficient than the nonlinear three-stage least squares estimator if the specification is correct, However, the latter has the advantage of being consistent even when the normality assumption is removed. Hausrnan' s instrumental-variable-interpretation of the maximum likelihood estimator is extended to the general nonlinear simultaneous equation model.
Handle: RePEc:nbr:nberwo:0090
Template-Type: ReDIF-Paper 1.0
Title: Autoregressive Spectrum Estimation Technique Allied to Quarterly Consumer Durables Expenditure Data
Author-Name: Warren G. Lavey
Number: 0091
Creation-Date: 1975-06
Order-URL: http://www.nber.org/papers/w0091
File-URL: http://www.nber.org/papers/w0091.pdf
File-Format: application/pdf
Abstract: Classical spectral techniques can provide sharp insights into the cyclical patterns in a time series of economic data. Various problems in the application of classical spectral techniques, such as the choices of smoothing routine and bandwidth and the appearance of end-effects, inhibit the usefulness of spectral analysis. Alternatively, an autoregressive spectral technique does not share these problems, but does present the difficulty of the choice of the order of the autoregression. This paper applies classical and autoregressive spectral techniques to quarterly consumer durables expenditure data, discusses three approaches to the choice of the order of the autoregression, and compares the results of the different spectral techniques. Autoregressive spectral analysis provides a superior representation for this time series.
Handle: RePEc:nbr:nberwo:0091
Template-Type: ReDIF-Paper 1.0
Title: Schooling as a Wage Depressant
Author-Name: Edward P. Lazear
Author-Person: pla64
Number: 0092
Creation-Date: 1975-06
Order-URL: http://www.nber.org/papers/w0092
File-URL: http://www.nber.org/papers/w0092.pdf
File-Format: application/pdf
Publication-Status: published as Lazear, Edward. "Schooling as a Wage Depressant." Journal of Human Resources, (Spring 1977), pp. 164-176
Abstract: We investigate the relationship between current schooling and current wage rates. Casual observation seems to reflect a discontinuity in wage rate growth which occurs when an individual completes school and joins the labor force as a permanent member. This suggests that the time spent in work while attending school is in some sense secondary. Here, the marginal value of the individual's time is considerably lower than the average value of his time. The problem is essentially one of "anti-complementarities" between the production of human capital through formal schooling and working in the primary occupation. More generally, the productivity of an individual's time in one endeavor is not independent of how the rest of his time is spent. If this is the case, students will be willing to accept lower paying jobs which do not greatly diminish the productivity of school time in lieu of jobs offering higher wages at the cost of a greater reduction in school time productivity. The wages of students, other things constant, are about 12% lower than those of non-students. The magnitude of this wage differential is surprisingly large and warrants investigation on empirical grounds alone. This paper explores the empirical relationship and examines various explanations for it. Finally, implications of the analyses are discussed.
Handle: RePEc:nbr:nberwo:0092
Template-Type: ReDIF-Paper 1.0
Title: Rational Expectations and the Dynamic Structure of Macroeconomic Models:A Critical Review
Author-Name: Robert J. Shiller
Author-Person: psh69
Number: 0093
Creation-Date: 1975-06
Order-URL: http://www.nber.org/papers/w0093
File-URL: http://www.nber.org/papers/w0093.pdf
File-Format: application/pdf
Publication-Status: published as Shiller, Robert. "Rational Expectations and the Dynamic Structure of Macroeconomic Models: A Critical Review." Journal of Monetary Economics, Vol. 4,(January 1978), pp. 1-44.
Abstract: The recent literature on rational expectations in macroeconomic theory is surveyed here with the objective of distilling from the various papers useful suggestions for econometric methodology. The paper is not concerned with the empirical questions with which these models have been associated, but rather with the value and usefulness of the concept of rational expectations. The paper begins with a brief discussion of the theory of martingales as it has been applied to microeconomic theory. Then, the general linear rational expectations model (of which most models discussed in the literature are, in terms of their structure, special cases) is developed arid its properties, advantages and drawbacks discussed. The paper concludes with a discussion of the possibilities for estimation arid application of such linear models.
Handle: RePEc:nbr:nberwo:0093
Template-Type: ReDIF-Paper 1.0
Title: Decision-Stage Method: Convergence Proof, Special Application, and Computation Experience
Author-Name: Vinay Dharmadhikari
Number: 0094
Creation-Date: 1975-07
Order-URL: http://www.nber.org/papers/w0094
File-URL: http://www.nber.org/papers/w0094.pdf
File-Format: application/pdf
Abstract: This paper presents a new method for obtaining exact optimal solutions for a class of discrete-variable non-linear resource-allocation problems. The new method is called the decision-state method because, unlike the conventional dynamic programming method which works only in the state space, the new method works in the state space and the decision space. It generates and retains only a fraction of the points in the state space at which the state functions are discontinuous; and thus overcomes to some extent the curse of dimensionality. It carries the cumulative decision-strongs associated with these points, and thus avoids the backtracking entailed by the conventional dynamic programming method for recovering the optimal decisions. A concise and complete statement of the method is given in Algorithm 2 and it is proved that the algorithm finds all exact optimal solutions. In addition the method is adapted for solving some problems with special structures such as block-angular or split-block-angular constraints and the resultant substantial advantages are demonstrated. The performance of Algorithm 2 on many resource-allocations problems is reported, along with investigations on many tactical decisions which have substantial impact on the performance. The performance of the computer implementation of Algorithm 2 is compared with that of the MMDP algorithm and it showed that for the class of problems at which the two are aimed, the decision-state Algorithm 2 performed better than MMDP algorithm both in terms of storage requirement and solution time. In fact, it achieved an order of magnitude saving in storage requirement.
Handle: RePEc:nbr:nberwo:0094
Template-Type: ReDIF-Paper 1.0
Title: Qualitative Information, Reputation, and Monopolistic Competition
Author-Name: Michael R. Darby
Author-Name: John R. Lott, Jr.
Number: 0095
Creation-Date: 1975-07
Order-URL: http://www.nber.org/papers/w0095
File-URL: http://www.nber.org/papers/w0095.pdf
File-Format: application/pdf
Publication-Status: published as International Review of Law and Economics, vol.9, no.1, pp87-103, June 1989
Abstract: Much recent research in the economics of information has analyzed the implications of alternative market structures in the presence of qualitative characteristics which cannot be accurately and objectively measured or described. This approach avoids the more basic question of the influence of qualitative information on the emergence of market structures. This paper argues that market structures arise which minimize total average production and information costs and that qualitative characteristics produce structures utilizing reputation.
Handle: RePEc:nbr:nberwo:0095
Template-Type: ReDIF-Paper 1.0
Title: Specification Errors in Limited Dependent Variable Models
Author-Name: G.S. Maddala
Author-Name: Forrest D. Nelson
Number: 0096
Creation-Date: 1975-07
Order-URL: http://www.nber.org/papers/w0096
File-URL: http://www.nber.org/papers/w0096.pdf
File-Format: application/pdf
Publication-Status: published as Maddala, G. S. (ed.) Econometric methods and applications. Volume 2. Economists of the Twentieth Century series. Aldershot, U.K.: Elgar, 1994.
Abstract: A preliminary investigation of two specification error problems in truncated dependent variable models is reported. It is shown that heteroscedasticity in a tobit model results in biased estimates when the model is misspecified. This differs from the OLS model where estimates are still consistent though inefficient. The second problem examined is aggregation. An appropriate nonlinear least squares regression model is derived for situations when the micro-level model fits a tobit framework but only aggregate data are available.
Handle: RePEc:nbr:nberwo:0096
Template-Type: ReDIF-Paper 1.0
Title: Human Wealth and Human Capital
Author-Name: Edward P. Lazear
Author-Person: pla64
Number: 0097
Creation-Date: 1975-07
Order-URL: http://www.nber.org/papers/w0097
File-URL: http://www.nber.org/papers/w0097.pdf
File-Format: application/pdf
Abstract: In this paper, a few theoretical issues will be raised regarding the relationship between the distribution of human capital and that of human wealth. Special attention will be paid to the empirical implications of the analysis.
Handle: RePEc:nbr:nberwo:0097
Template-Type: ReDIF-Paper 1.0
Title: The Demand for Nursing Home Care: An Analysis of the Substitution Between Institutional and Noninstitutional Care
Author-Name: Barry R. Chiswick
Author-Person: pch425
Number: 0098
Creation-Date: 1975-07
Order-URL: http://www.nber.org/papers/w0098
File-URL: http://www.nber.org/papers/w0098.pdf
File-Format: application/pdf
Publication-Status: published as Chiswick, Barry R. "The Demand for Nursing Home Care: An Analysis of the Substitution Between Institutional and Noninstitutional Care." Journal of Human Resources, Summer 1976).
Abstract: This paper analyzes the demand for nursing home care for the aged. The cross-sectional analysis indicates a high price elasticity of demand (-2.2), and that the demand is greater the less capable are the aged of providing own care, the better the job opportunities of adult women, and the wealthier the SMSA. Utilization increased 67percentfrom 1963 to 1973,but 64 percentage points is attributable to changes in these demand shift variables. This casts doubt on the view that the growth in utilization was largely stimulated by changing public policies during the period.
Handle: RePEc:nbr:nberwo:0098
Template-Type: ReDIF-Paper 1.0
Title: The Earnings of Scientists, 1960-1970: Experience, Age and Vintage Effects
Author-Name: Yoram Weiss
Number: 0099
Creation-Date: 1975-07
Order-URL: http://www.nber.org/papers/w0099
File-URL: http://www.nber.org/papers/w0099.pdf
File-Format: application/pdf
Publication-Status: published as Weiss, Yoram and Lee A. Lillard. "Experience, Vintage, And Time Effects In The Growth Of Earnings: American Scientists 1960-1970," Journal of Political Economy, 1978, v86(3), 427-448.
Abstract: The purpose of this study is to present a simple but explicit model of on-the-job training which may enable us to separate and identify various types of vintage effects. An attempt is made to apply the model to the data on the earnings of American scientists in the period 1960-1970.
Handle: RePEc:nbr:nberwo:0099
Template-Type: ReDIF-Paper 1.0
Title: Finding a Dual Feasible Solution to an LP with M Equalities in (l&M) Dual Iterations
Author-Name: Vinay Dharmadhikari
Number: 0100
Creation-Date: 1975-08
Order-URL: http://www.nber.org/papers/w0100
File-URL: http://www.nber.org/papers/w0100.pdf
File-Format: application/pdf
Abstract: Lemke's dual-simplex method of linear programming is usually considered inferior to the primal simplex method for any general linear programming problems. One reason given is the difficulty of finding a starting dual-feasible basis. In this paper, a new starting technique is presented, which finds a dual-feasible basis in a single dual-simplex pivot for LP's with no equality constraints, and in (l+m3 ) pivots for LP'S with m3 equality constraints irrespective of the number of inequality constraints. The technique is illustrated on a small example problem. The performance, in terms of the number of pivots to optimality, of the dual-simplex with the new starting technique on 100 medium sized problems is reported and compared with that of the primal simplex. Finally, how the dual-simplex with the new starting technique can be efficiently implemented is briefly discussed.
Handle: RePEc:nbr:nberwo:0100
Template-Type: ReDIF-Paper 1.0
Title: Innovation and Foreign Investment Behavior of the U.S. Pharmaceutical Industry
Author-Name: Benjamin I. Cohen
Author-Name: Jorge Katz
Author-Name: William T. Beck
Number: 0101
Creation-Date: 1975-08
Order-URL: http://www.nber.org/papers/w0101
File-URL: http://www.nber.org/papers/w0101.pdf
File-Format: application/pdf
Abstract: This paper deals with the links between the development of new drugs, and particularly of innovative new drugs, and the international activities of U.S. drug companies. While U.S. drug companies have developed new production processes - the most notable being the fermentation process for making penicillin - we concentrate in this paper on new products. Since production costs comprise less than 40 percent of the selling price of drugs and since the person choosing the drug rarely pays for it, growth in company sales and profits comes more from introducing new products than from cutting costs and prices of old products. The main novelty of our study is our examination of "innovative" as contrasted with "imitative" new drugs. Previous studies have generally focused on the total number of new drugs produced each year, but since our interest is in the causes and consequences of innovation, we have concentrated on the products we have rated as innovative. Section I explains our criteria for this distinction and presents our enumeration of the innovative new drugs for each of the 22 companies in our sample. In Section II we discuss trends in the rate of drug innovation and the factors influencing those trends. Section III describes our sample of drug companies and characterizes them with respect to their size, research investment, and innovativeness. Section IV examines the relation of innovativeness to the foreign activities of individual firms. In Section V we analyze, for a sample of 7 new drugs introduced by two companies, the rate at which use of the drugs was diffused among various countries arid the impact of the presence of manufacturing plants on the rate of diffusion.
Handle: RePEc:nbr:nberwo:0101
Template-Type: ReDIF-Paper 1.0
Title: Education and Screening
Author-Name: Kenneth Wolpin
Number: 0102
Creation-Date: 1975-08
Order-URL: http://www.nber.org/papers/w0102
File-URL: http://www.nber.org/papers/w0102.pdf
File-Format: application/pdf
Publication-Status: published as American Economic Review, Vol. 67, no. 5 (1977): 949-958.
Abstract: Section I introduces the material. In section II a model is developed which explores the impact of input-quality uncertainty on factor demand from which is derived a rationale for the use of devices which segment the population into classes differing in their "skill" distribution parameters. The model, however, ignores the motivation of individuals to acquire the characteristics upon which firms screen, in particular, the greater incentive for the more productive to purchase the screen. This aspect has been explored by Spence (1973) and Stiglitz (1973) and will not be explicitly considered here. In section III the social value of schooling's informational context is derived within the preceeding framework. Section IV describes some empirical attempts to isolate the productivity and identification effects. The last section summarizes the paper.
Handle: RePEc:nbr:nberwo:0102
Template-Type: ReDIF-Paper 1.0
Title: Rosepack Document 1: Guidelines for Writing Semi-portable Fortran
Author-Name: Neil Kaden
Author-Name: Virginia Klema
Number: 0103
Creation-Date: 1975-09
Order-URL: http://www.nber.org/papers/w0103
File-URL: http://www.nber.org/papers/w0103.pdf
File-Format: application/pdf
Abstract: Transferring Fortran subroutines from one manufacturer's machine to another or from one operating system to another puts certain constrains on the construction of the Fortran statements that are used in the subroutines. The reliable performance of this mathematical software should be unaffected by the host environment in which the software is used or by the compiler from which the code is generated. In short, the algorithm is to he independent of the computing environment in which it is run. The subroutines of ROSEPACK (Robust Statistics Estimation Package) are Fortran IV source code designed to be semi-portable where semi-portable is defined to mean transportable with minimum change.*
Handle: RePEc:nbr:nberwo:0103
Template-Type: ReDIF-Paper 1.0
Title: Education: Consumption or Production
Author-Name: Edward P. Lazear
Author-Person: pla64
Number: 0104
Creation-Date: 1975-09
Order-URL: http://www.nber.org/papers/w0104
File-URL: http://www.nber.org/papers/w0104.pdf
File-Format: application/pdf
Publication-Status: published as Lazear, Edward. "Education: Consumption or Production." Journal of Political Economy, (June 1977). Journal of Political Economy. vol.85, no. 3, pp.569-597, June 1977
Abstract: It can be claimed that education is simply a normal consumption good and that like all other normal goods, an increase in wealth will produce an increase in the amount of schooling purchased. Increased incomes are associated with higher schooling attainment as the simple result of an income effect. If this is so, schooling increases an individual's wealth only by the consumption value of the good, since it is a non-saleable asset. This paper will attempt to determine empirically the amount by which an increase in wealth is caused by schooling as distinguished from the amount by which the demand for schooling increases as the result of an increase in wealth.
Handle: RePEc:nbr:nberwo:0104
Template-Type: ReDIF-Paper 1.0
Title: Time-Utilization of a Population of General Practitioners in a Prepaid Group Practice
Author-Name: Richard N. Watkins
Author-Name: Edward F. X. Hughes
Author-Name: Eugene M. Lewit
Number: 0105
Creation-Date: 1975-10
Order-URL: http://www.nber.org/papers/w0105
File-URL: http://www.nber.org/papers/w0105.pdf
File-Format: application/pdf
Publication-Status: published as Watkins, Richard N.; Hughes, Edward S.X.; and Lewit, Eugene M. "Time-Utilization of a Population of General Surgeons in a Prepaid Group Practice." Medical Care, Vol. 14, No. 10, (October 1976), pp. 824-838.
Abstract: A population of seven general surgeons in a prepaid group practice previously shown to have a mean operative work load of 9.2 HE per week were found to have a mean standardized seven day working week of 56.2 hours exclusive of evening activities. The surgeons also devoted a mean of 6.7 evening hours to professional activities for a total working week of 62.9 hours. Comparisons of the time utilization of this population of general surgeons with a population of previously studied community surgeons revealed that the prepaid group surgeons were able to maintain a surgical output more than double that of the community surgeons without having to devote twice as much time to professional activities. Economies in the utilization of surgical manpower in the prepaid group appear to stem from geographic and specialty restrictions on the scope of work of the surgeons, from a reduction of waiting time in the office, and from the utilization of paraprofessional personnel for operative assisting.
Handle: RePEc:nbr:nberwo:0105
Template-Type: ReDIF-Paper 1.0
Title: Parametric Integer Programming the Right Hand Side Case
Author-Name: Roy A. Marsten
Author-Name: Thomas Morin
Number: 0106
Creation-Date: 1975-10
Order-URL: http://www.nber.org/papers/w0106
File-URL: http://www.nber.org/papers/w0106.pdf
File-Format: application/pdf
Publication-Status: published as Hammer, P. L., E.L. Johnson, B.H. Korte and G.L. Nemhauer (eds.) Studies in integer programming, Volume 1 (Annals of Discrete Mathematics). Amstendam, New York, and Oxford: Elsevier, 1977.
Abstract: A family of integer programs is considered whose right-hand-sides lie on a given line segment L. This family is called a parametric integer program (PIP). Solving a (PIP) means finding an optimal solution for every program in the family. It is shown how a simple generalization of the conventional branch-and-bound approach to integer programming makes it possible to solve such a (PIP). The usual bounding test is extended from a comparison of two point values to a comparison of two functions defined on the line segment L. The method is illustrated on a small example and computational results for some larger problems are reported.
Handle: RePEc:nbr:nberwo:0106
Template-Type: ReDIF-Paper 1.0
Title: Social Security and Retirement Decisions
Author-Name: Michael J. Boskin
Note: PE
Number: 0107
Creation-Date: 1975-10
Order-URL: http://www.nber.org/papers/w0107
File-URL: http://www.nber.org/papers/w0107.pdf
File-Format: application/pdf
Publication-Status: published as Economic Inquiry (January 1977).
Abstract: One of the most striking features of the postwar U.S. economy has been the rapid decrease in the labor force participation of the elderly at a time when the health of this group has been improving. In spite of this, previous research, based on retrospective interviews with the retired population, usually concludes that poor health accounts for the overwhelming majority of retirements. The current results suggest that nothing could be further from the truth. Using data from the Panel Study of Income Dynamics, we follow a cohort of white married males through their sixties to estimate a model of retirement behavior. Using several definitions of retirement suggested in the literature, the results suggest that the two key policy parameters of the social security system â€" the income guarantee and the implicit tax on earnings â€" exert an enormous influence on retirement decisions. For example, our results suggest that a decrease in the implicit tax rate on earnings from one-half to one-third would reduce the annual probability of retirement by almost sixty percent! Applying the coefficient estimates to time series data on the labor force participation of the elderly implies that the social security sys-tem has been the major factor in the explosion in earlier retirement.
Handle: RePEc:nbr:nberwo:0107
Template-Type: ReDIF-Paper 1.0
Title: Are Health Workers Underpaid?
Author-Name: Victor R. Fuchs
Author-Person: pfu157
Number: 0108
Creation-Date: 1975-10
Order-URL: http://www.nber.org/papers/w0108
File-URL: http://www.nber.org/papers/w0108.pdf
File-Format: application/pdf
Publication-Status: published as Fuchs, Victor R. "The Earnings of Allied Health Personnel--Are Health Workers Underpaid?" Explorations in Economic Research, Vol. 3, No. 3, (Summer 1976), pp. 408-432.
Publication-Status: published as Victor R. Fuchs, 1976. "The Earnings of Allied Health Personnel - Are Health Workers Underpaid?," NBER Chapters, in: Explorations in Economic Research, Volume 3, number 3, pages 106-130 National Bureau of Economic Research, Inc.
Abstract: There is a clear need for a firm statistical base describing the levels and rates of change of wages for various types of manpower in hospitals and other health settings, and for analytical studies designed to explain the causes and consequences of wage variation in the health industry. This paper is intended to fill the first need, and provide data for the second. With the rich detail provided in the public use samples of the 1960 and 1970 Censuses of Population, it is possible to calculate hourly earnings rates for all allied health personnel classified by occupation, sex, schooling, geographical location, and many other characteristics. Furthermore, it is possible to compare these earnings with those of workers with similar characteristics in other non-farm industries.
Handle: RePEc:nbr:nberwo:0108
Template-Type: ReDIF-Paper 1.0
Title: Notes on Automating Stem and Leaf Displays
Author-Name: David C. Hoaglin
Author-Name: Stanley S. Wasserman
Number: 0109
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0109
File-URL: http://www.nber.org/papers/w0109.pdf
File-Format: application/pdf
Abstract: The stem-and-leaf display is a natural semi-graphic technique to include in statistical computing systems. This paper discusses the choices involved in implementing both automated and flexible versions of the display, develops an algorithm for the automated version, examines various implementation considerations, and presents a set of semi-portable FORTRAN subroutines for producing stem-and-leaf displays.
Handle: RePEc:nbr:nberwo:0109
Template-Type: ReDIF-Paper 1.0
Title: The Independent Judiciary in an Interest-Group Perspective
Author-Name: William M. Landes
Author-Person: pla327
Author-Name: Richard A. Posner
Author-Person: ppo25
Number: 0110
Creation-Date: 1975-10
Order-URL: http://www.nber.org/papers/w0110
File-URL: http://www.nber.org/papers/w0110.pdf
File-Format: application/pdf
Publication-Status: published as Landes, William M. and Posner, Richard A. "The Independent Judiciary in an Interest-Group Perspective." Journal of Law and Economics, (December 1975).
Abstract: We believe that at a deeper level the independent judiciary is not only consistent with, but essential to, the interest-group theory of government. Part I of this paper explains our theory of the independent judiciary. Part II discusses several implications of the theory, relating to administrative regulation, the form of interest-group legislation, the tenure of judges, and constitutional adjudication. The appendix to this paper presents an empirical analysis of judicial independence using data on Acts of Congress that have been held unconstitutional by the Supreme Court.
Handle: RePEc:nbr:nberwo:0110
Template-Type: ReDIF-Paper 1.0
Title: Confidence Regions for Robust Regression
Author-Name: Roy E. Welsch
Number: 0111
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0111
File-URL: http://www.nber.org/papers/w0111.pdf
File-Format: application/pdf
Abstract: This paper describes the results of a Monte Carlo study of certain aspects of robust regression confidence region estimation for linear models with one, five, and seven parameters. One-step sine estimators (c = l.42) were used with design matrices consisting of short-tailed, Gaussian, and long-tailed columns. The samples were generated from a variety of contaminated Gaussian distributions. A number of proposals for covariance matrices were tried, including forms derived from asymptotic considerations and from weighted-least squares with data dependent weights. Comparisons with: the Monte Carlo "truth" were made using generalized eigenvalues. In order to measure efficiency and compute approximate t-values, linear combinations of parameters corresponding to the largest eigenvalues of the "truth" were examined. For design matrices with columns of modest kurtosis, the covariance estimators all give reasonable results and, after adjusting for asymptotic bias, some useful approximate t-values can be obtained. This implies that the standard weighted least-squares output using data-dependent weights need only be modified slightly to give useful robust confidence intervals. When design matrix kurtosis is high and severe contamination is present in the data, these simple approximations are not adequate.
Handle: RePEc:nbr:nberwo:0111
Template-Type: ReDIF-Paper 1.0
Title: A Beta-Logistic Model for the Analysis of Sequential Labor Force Participation by Married Women
Author-Name: James J. Heckman
Author-Name: Robert J. Willis
Author-Person: pwi192
Number: 0112
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0112
File-URL: http://www.nber.org/papers/w0112.pdf
File-Format: application/pdf
Publication-Status: published as Heckman, James J. and Robert J. Willis. "A Betalogistic Model for the Analysis of Sequential Labor Force Participation by Married Women." Journal of Political Economy, Vol. 85, No. 1 (1977), pp. 27-58.
Abstract: In this paper, we discuss statistical problems that arise in studying sequences of quantal responses (e.g., labor force participation) in panel data on heterogeneous populations (i.e., populations in which there is unobserved variation in response probabilities). Assuming that response probabilities are governed by a beta distribution, we derive a generalization of the cross-section logit model to enable it to deal with sequences of discrete events in panel data. This model is applied to panel data on labor force participation of married women. One of our findings is that the distribution of participation probabilities is U-shaped, indicating that most women have participation probabilities near zero or one.
Handle: RePEc:nbr:nberwo:0112
Template-Type: ReDIF-Paper 1.0
Title: Random Directed Graph Distributions in the Triad Census in Social Networks
Author-Name: Stanley S. Wasserman
Number: 0113
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0113
File-URL: http://www.nber.org/papers/w0113.pdf
File-Format: application/pdf
Publication-Status: published as Stanley S. Wasserman, 1977. "Random directed graph distributions and the triad census in social networks†," The Journal of Mathematical Sociology, vol 5(1), pages 61-86.
Abstract: This paper uses the concept of the triad census first introduced by Holland and Leinhardt, and describes several distributions on directed graphs. Methods are presented for calculating the mean and the covariance matrix of the triad census for the uniform distribution that conditions on the number of choices made by each individual in the social network. Several complex distributions on digraphs are approximated, and an application of these methods to a sociogram is given.
Handle: RePEc:nbr:nberwo:0113
Template-Type: ReDIF-Paper 1.0
Title: On the Measurement of Benefits in an Urban Context: Some General Equilibrium Issues
Author-Name: Paul Courant
Author-Person: pco444
Author-Name: Daniel L. Rubinfeld
Number: 0114
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0114
File-URL: http://www.nber.org/papers/w0114.pdf
File-Format: application/pdf
Publication-Status: published as Courant, Paul and Daniel L. Rubinfeld. "On the Measurement of Benefits in arban Context: Some General Equilibrium Issues." Journal of Urban Economics,(June 1978), pp. 346-356.
Abstract: The validity of using local market data to measure the benefits associated with policies adopted in an urban area is investigated .It is shown that the rest of the world is affected by taxing decisions undertaken in a single urban area, so that local data cannot perfectly measure the welfare effects of a policy change. Specifically, the fact that the willingness to pay for a tax increase is positive in the rest of the world suggests that cost-benefit analyses which do not account for the rest of the world may be biased.
Handle: RePEc:nbr:nberwo:0114
Template-Type: ReDIF-Paper 1.0
Title: The Production of Health Services in Fee for Service, for Profit Health Practices: The Case of Optometrists
Author-Name: Douglas Coate
Number: 0115
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0115
File-URL: http://www.nber.org/papers/w0115.pdf
File-Format: application/pdf
Publication-Status: published as Coate, Douglas. "The Optimal Employment of Inputs in Fee for Service, for Profit Health Practices: The Case of Optometrists." Explorations in Economic Research, Vol. 4, No. 2, (Spring 1977), pp. 316-330.
Abstract: The purpose of this paper is to analyze the production process of optometrists in private practice. This study will then provide further evidence on the entrepreneurial performance of primary health professionals in private practice. If optometrists also appear to be using inefficient production techniques further questions can be raised about organizing the delivery of health services around fee for service, for profit private practices.
Handle: RePEc:nbr:nberwo:0115
Template-Type: ReDIF-Paper 1.0
Title: Notes on the Tax Treatment of Human Capital
Author-Name: Michael J. Boskin
Note: PE
Number: 0116
Creation-Date: 1975-11
Order-URL: http://www.nber.org/papers/w0116
File-URL: http://www.nber.org/papers/w0116.pdf
File-Format: application/pdf
Publication-Status: published as Proceedings of the Treasury Conference on Tax Policy, U.S. Department of Treasury, 1977.
Abstract: Section 1 presents a preliminary attempt at clarifying the ways in which taxes affect human capital accumulation. Section 2 outlines a simple general equilibrium model with two capital goods - physical and human â€" and the saving corresponding to each, to begin to deal with these issues. Once human capital is viewed as an alternative source of wealth and hence human capital investment as a source of current saving (re-sources withdrawn from current consumption to help increase future output),the old issue of the differential tax treatment of alternative types of capital arises. Sensible tax policy with respect to the taxation of either physical or human capital must take into account the tax treatment of the alternative asset. Section 3 outlines some points of departure for such an analysis.
Handle: RePEc:nbr:nberwo:0116
Template-Type: ReDIF-Paper 1.0
Title: The International Transfer of Semi-Conductor Technology Through U.S. Based Firms
Author-Name: William F. Finan
Number: 0118
Creation-Date: 1975-12
Order-URL: http://www.nber.org/papers/w0118
File-URL: http://www.nber.org/papers/w0118.pdf
File-Format: application/pdf
Abstract: This study of the U.S. semiconductor industry seeks to examine its international pattern of exports, licensing, and foreign investments. This industry was selected for study because previous work had shown the United States tended to have a favorable trade balance in industries characterized by high technology processes or products. The study is divided into three parts. The first part, consisting of Chapters 2 and 3, discusses the characteristics of the U.S. semiconductor industry and semiconductor technology. The next part, Chapters 4, 5 and 6 examines the different transfer channels and the factors which determine a firm's selection between exports, licensing, and foreign production to supply foreign markets. The final section, Chapter 7, seeks to determine the characteristics of the American firms most responsible for the transfer of technology offshore and the impact of foreign direct investment on trade patterns.
Handle: RePEc:nbr:nberwo:0118