Camille Bronsard

On price exogeneity in complete demand systems

Abstract Complete demand systems have always been estimated under the assumption that either prices or quantities were exogenous. In this paper, we introduce some explicit price adjustment process and test the assumption of exogeneity of prices. Comparing the model with endogenous prices to the model with exogenous prices will reveal that the assumption of the exogeneity of prices is not a very dramatic one as both estimated models are very similar in many experiments with American and Canadian data. Applying a system-wide Wu-Hausman test and a likelihood ratio test, will always lead us to reject the exogeneity of prices in three-commodity models, while at the more disaggregated level, prices may often be considered as exogenous.

Estimating demand equations: The converse approach

The sum over individuals of the differentials of demand functions is the basic starting point of the Rotterdam model. In this paper, we show that this global differential can be inverted. Moreover, it can be parametrized according to the lines of the Rotterdam model. Consequently, we have two complete specifications in order to analyse demand and they compete on a priori grounds. After discussing the characteristics of each model relative to the stochastic assumptions used for its estimation, the structure of substitution-complementarity that it allows and its power for Computational Economics, we estimate both models and compare their results.

Preferences and normal goods: A necessary and sufficient condition☆

This Note Presents a Necessary and Sufficient Condition for All Goods to Be Normal, in the Case of Differentiable Individual Demand. This Condition Appears As a Relationship Between the Quantity Effects on Marginal Willingness to Pay and Is Consequently a Characteristic of the Preference Order. It Can Be Interpreted As a Weakening of the Kind of Complementary Implied by the Lerouxs Previous Sufficient Condition.(This abstract was borrowed from another version of this item.)

Temporary pareto optimum theory

Abstract The purpose of this paper is to introduce bounded rationality in the framework of Pareto optimality. This is done by altering the usual definition of the attainable set to take account of the fact that agents are represented by expectation functions induced by their learning processes. Two polar cases are examined. First, we show that a temporary Pareto optimum is a temporary competitive equilibrium when expectations are strongly Roy-consistent. Second, in the general case of weak Roy-consistency, the temporary version of the second welfare theorem cannot always be true; moreover, the characterizations of a temporary Pareto optimum bear some resemblance to those of optimal taxation in an atemporal second best framework.

From intertemporal strong quasi-concavity to temporary one

Abstract One proves here that intertemporal strong quasi-concavity implies temporary strong quasi-concavity, without utilizing any separability assumption.

Anticipations rationnelles, fonctions d'anticipations et structure locale de Slutsky. (Rational Expectations, Expectation Functions, and Slutsky Local Structure. With English summary.)

Rational expectations, expectation functions, and Slutsky local structure. In this paper, it is shown that rational expectations can imply the existence of rational expectations functions. These functions are differentiable; they take into account the intertemporal substitution effects so that a temporary equilibrium does always exist and they obey to the Le Chatelier Principle (an increase in the level of a future initial endowment is associated to a decrease in the level of its expected price). It follows from these rational expectations functions that some meaningful theorems of the neoclassical theory are maintained, that is, complete temporary demand systems have a Slutsky local

Growth, Desirability, Profitability and Unemployment

In this paper, we consider how the standard tools of micro-economic analysis can be used to study comparative statics and normative dynamics of macroeconomic analysis.

Aversions to Impatience, Uncertainty and Illiquidity

Edmond Malinvaud has not only fixed the French terminology in Econometrics, Microeconomics, but he has also derived scientific results of prime interest concerning the intertemporal equilibrium or the synthesis between the Walrasian microeconomics and the Keynesian macroeconomics. Malinvaud has also opened new research directions, which are often less known. One of these directions is developed in this paper. Due to their underlying assumptions, the standard concepts of risk aversion and impatience are generally defined separately and represented by scalar measures. This implies many shortcomings, for instance, the risk aversion remain unchanged, whatever type of risk is considered. This paper provides a more complete analysis of aversions, which clearly emphasizes their multidimensionality and the necessity for the measures of risk aversion and impatience aversion to be defined jointly.

The computational economics of Jacques Lesourne

Abstract “Le calcul economique”, by Jacques Lesourne, was first published in 1964. It was then an outstanding volume, containing a clear and general approach to cost-benefit analysis and its links with (a) the optimal allocation of time (a theory proposed by Lesourne before Becker, 1965), (b) the introduction of the State in a general equilibrium approach, (c) the introduction of time, uncertainty and transaction costs in Pareto-optimal as well as in sub-optimal situations. With its second edition (1972), the book has “increased in wisdom and stature”. Enlarged by 250 pages, above all devoted to numerous and distinct applications, it now becomes a handbook of computational economics, in fact the most complete and rigorous presentation published on the subject to date. I shall take into account the fact that the first edition was not translated into English to review it as an entirely new book. For analytical purposes, it can be divided into three parts: (1) The foundations, (2) The superstructures, (3) The applications.