Essays in the Economics of Uncertainty
Essays in the Economics of Uncertainty

Author: Jean-Jacques Laffont

Publisher: Harvard University Press

Published: 1980

Total Pages: 160

ISBN-13: 9780674265554

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These three elegant essays develop principles central to the understanding of the diverse ways in which imperfect information affects the distribution of resources, incentives, and the evaluation of economic policy. The first concerns the special role that information plays in the allocation process when it is possible to improve accuracy through private investment. The common practice of hiring "experts" whose information is presumably much better than their clients' is analyzed. Issues of cooperative behavior when potential group members possess diverse pieces of information are addressed. Emphasis is placed on the adaptation of the "core" concept from game theory to the resource allocation model with differential information. The second essay deals with the extent to which agents can influence the random events they face. This is known as moral hazard, and in its presence there is a potential inefficiency in the economic system. Two special models are studied: the role of moral hazard in a monetary economy, and the role of an outside adjudicatory agency that has the power to enforce fines and compensation. The final essay discusses the problem of certainty equivalence in economic policy. Conditions under which a full stochastic optimization can be calculated by solving a related, much simpler "certainty equivalence" problem are developed. The reduction in the complexity of calculation involved is very great compared with the potential loss of efficiency.

Lectures on Macroeconomic Planning: Centralization, decentralization, planning under uncertainty
Lectures on Macroeconomic Planning: Centralization, decentralization, planning under uncertainty

Author: Leif Johansen

Publisher: North Holland

Published: 1977

Total Pages: 434

ISBN-13:

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Textbook comprising lectures on macro-economic planning both in planned economies and in other economic systems - covers methodologys and theories, the use of econometrics and mathematical models in economic planning, and includes centralization and decentralization of decision making powers, economic policy formulation during times of uncertainty, etc. Diagrams and references.

Locational Analysis of Public Facilities
Locational Analysis of Public Facilities

Author: Jacques-François Thisse

Publisher: North Holland

Published: 1983

Total Pages: 464

ISBN-13:

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The concern of economists and location theorists for the problem of public facility location is growing rapidly. The present collection of essays aims to provide an overview of the problem both from the perspective of economic theory and operations research. A study of some basic ingredients of a public space theory and one on the main tools for spatial decision-making are offered. This is reflected in the content of the book, which is divided into two parts. The first part deals with the theory of local public goods and with public decision-making procedures in the spatial context. A survey of the current literature on local public goods is proposed and contributed papers follow which are devoted to particular aspects or to a critical discussion of the main approaches. Voting procedures in a spatial context are reviewed and extended. Then follows an application of planning theory to public goods in space. The second part is relative to the operational analysis of locational decisions in the public sector. The major models and methods are reviewed; their computational efficiency is reported on and some of their fundamental properties are discussed. Location-allocation models are analyzed and criticized from the welfare economics standpoint and some suggestions are made for future research. The book addresses a large audience, including economists, regional scientists, operations researchers and geographers interested in the theory of public space and spatial planning.