Conventional Macro Research Articles

An evaluation of blinder's alternative to profit sharing

Blinder has suggested that wages be partially tied to a firm's own price change, so that the key feature behind Weitzman's profit-sharing proposal might be created without the same need for fundamental institutional change. We examine whether this proposal for labor's remuneration yields the “better disequilibrium properties” that Weitzman expects from this class of policies. Using a standard quadratic adjustment cost model, we find that a tax-based indexing incentive is equivalent to there being a decreased degree of wage flexibility. We then examine output variability within a conventional macro model, while trying to avoid the Lucas critique by continuing to use the underlying microeconomic analysis at that stage.

Fourier transform Raman microspectroscopy

This paper shows some preliminary results taken with a commercially available Raman microscope which is based on the Fourier Transform Raman technique using near infrared laser sources. The micro apparatus is described and measurement examples are given. A comparison between spectra taken with the microscope and a conventional macro sample device which is usually utilized in FT-Raman spectroscopy is carried out. Furthermore the differences of FT-Raman and FT-IR microanalysis are studied on the basis of practical results received from spectral data. Limitations due to the physical properties of infrared and Raman microspectroscopy are discussed.

Potentiometric combination ion-carbon dioxide sensors for in vitro and in vivo blood measurements

The development and analytical performance of a novel potentiometric combination ion/pCO2 sensor design for in vitro and in vivo measurements are reported. The design is based on incorporating an appropriate ionophore within the outer silicone gas permeable membranes of both conventional macro and new catheter-type pCO2 sensors. Simultaneous measurement of the potentials across the ion-selective/gas permeable membrane and the inner glass or polymer pH sensitive membrane provides the basis for continuous monitoring of both ionic and pCO2 levels with the same device. A macro-sized K+/pCO2 embodiment of the sensor is constructed from a commercial Severinghaus CO2 sensor and is used to demonstrate the principles and capabilities of the proposed design. A flexible, miniaturized (outer diameter = 1.2 mm) combination K+/pCO2 catheter sensor is also described. The catheter-type sensor is fabricated by inserting a tubular polymer membrane pH electrode into an outer silicone rubber tube doped with valinomycin. Continuous measurements of K+ and pCO2 during 6-h blood pump studies using both the macro and catheter-type combination sensors correlate well with those of conventional bench-top analyzers. In addition, continuous (4 h) intravascular measurements with the combination catheter sensor in dogs show good agreement with those of commercial blood analyzers (R = 0.984 and 0.962 for pCO2 and K+, respectively.

MONEY SUPPLY VARIABILITY IN A MACRO MODEL OF MONOPOLISTIC COMPETITION

The effects of changes in money supply variability are examined for a macro model of monopolistic competition. Increases in money supply variability raise demand uncertainty causing individual firms to produce more for inventory. In addition, expected profits decrease, inducing a number of firms to leave the economy. Aggregate income then falls in spite of an increase in firm‐level production. The result on aggregate income is standard, but the results on inventories and the number of firms in the economy distinguish this monopolistic macro model empirically from conventional macro models when changes in money supply variability occur.

The U.S. External Deficit: Its Causes and Persistence

This paper presents an empirical analysis of the macroeconomic and microeconomic factors underlying the causes and persistence of the U.S. external deficit in the 1980s. The paper begins with a review of the extensive literature on this subject, and then outlines an analytical framework that synthesizes several different approaches taken in previous studies. The proximate causes of the deficit are assessed using a partial-equilibrium model of the U.S. current account. We find that the decline in U.S. price competitiveness associated with the appreciation of the dollar over the first half of the decade was the dominant factor, while the excess of U.S. growth over growth abroad also contributed significantly. At a more fundamental level, drawing on average policy multipliers from a group of international macro models, the rise in the dollar and the growth gap that led to the deficit can be explained by the combination of a relatively restrictive U.S. monetary policy and expansive U.S. fiscal policy, along with fiscal contraction abroad. While the initial widening of the deficit can be adequately explained by macroeconomic factors, the deficit has adjusted substantially more slowly (particularly in real terms) to the fall in the dollar since early 1985 than conventional macro trade equations would predict. Analysis of the pricing behavior of foreign exporters, both in the aggregate and for a number of narrowly defined commodities, suggests that foreign profit margins have been squeezed more in response to the fall in the dollar than previously. Moreover, some foreign producers have benefited from significant reductions in production costs. Finally, quantitative restraints on U.S. trade appear to have slowed the adjustment of the trade balance to the decline in the dollar.

Micro direct inoculation method for the isolation and identification of Chlamydia trachomatis

Current standard procedures for the isolation and identification of Chlamydia trachomatis are laborious. A more rapid method for the isolation and identification of C. trachomatis has been developed. This method features the use of a multiwell microplate to which trypsinized McCoy cells and specimens are added simultaneously, followed by centrifugation. A simplified one-step iodine-glycerol staining procedure is used to detect the chlamydial inclusions. The requirements of the conventional macro method for preseeding cell monolayers and for the use of cumbersome cover slips in glass vials are eliminated. Studies on 345 clinical specimens showed that the micro method is as sensitive as the conventional method but can be performed more conveniently, rapidly, and economically.

A Cautionary Note on the Interpretation of Long-Run Equilibrium Solutions in Conventional Macro Models

In recent years the modelling methodology associated with Hendry and Mizon (I978) and Davidson et al. (I978) has become standard practice in the econometric estimation of many key relationships in UK macro-models. This note takes issue with one aspect of this methodology, namely the recommendation that the static-equilibrium solution of final estimated forms should conform with static steady-state economic theory. The main contention is that dynamic estimated forms that make no explicit acknowledgement of expectational processes will often prove incapable on their own of yielding estimates of true steady-state equilibrium (or long-run) parameters. Particularly under rational expectations it is stressed that the long-run solutions of conventional distributed lag equations cannot be interpreted in isolation from the parameters of the sample-period datageneration processes for the rationally expected variables. The point applies equally well to the interpretation of either staticor dynamic-equilibrium solutions. After developing the reasoning in a static-equilibrium framework the natural extension to the context of dynamic equilibrium, as characterised by Currie (I98I), is presented. The basic principles on which the argument is based are in no way new. They were originally developed by Sargent (I97I) and Lucas (I972) and have gained widespread application in the rational expectations literature-for example in Lucas's (I976) critique of econometric policy evaluation. Recently McCallum (I984) has applied them to discredit the general validity of using the lowfrequency (or long-periodicity) components of economic time-series to test the long-run propositions of economic theory. This note merely attempts a reexposition with particular reference to the evaluation of equation properties in models that purport to represent intertemporal behaviour without explicitly characterising expectational processes. Were it not a prevalent practice to identify the long-run solutions (particularly the static versions) of such equations with the parameters of static steady-state economic theory this note would not be necessary. However, the evidence suggests otherwise, and seems to justify the need for a restatement that exposes the potential for this procedure to give rise to seriously misleading conclusions when expectational processes are important. In the case of rational expectations it is shown that if proper thought is given to the dependence of expectations formation on sample-period time-series behaviour then the problems are by no means insurmountable.

Price level determinacy and the choice of policy targets under rational expectations

We show that in a conventional macro model with rational expectations, the government can use monetary policy to peg real interest rates, and still attain a determinate price level provided it also pegs some nominal policy variable, e.g., nominal expenditures.

Semi-micro quantitative gel precipitin reaction.

Quantitative gel precipitin reactions were made on a semi-micro-scale. This required overall reduction of the dimensions of the necessary apparatus. Resulting from this was the ability to use agarose gel at low concentration not possible with the conventional macro quantitative gel precipitin technique. Further advantages were the reduction of time for the completion of the experiments and also that of the volume of the reactants. Diffusion coefficients of antigens determined by the semi-micro technique agreed with those obtained with the more accurate optical methods.

An alternative approach to macro processing

This paper presents the basic principles of, and the motivation for, an alternative method of processing syntax macros. The inspiration for this work derives from some obvious shortcomings and inefficiencies in conventional macro processing schemes. However, our primary interest is not in designing a faster macro processor; rather it lies in isolating the underlying ideas of syntax macros, realizing their implications, and producing a clean and economical scheme based on these principles. The compiler model in terms of which we shall couch our discussions is a very familiar one, namely that of the two-pass compilation process. The first pass consists of syntactic and semantic analysis, and converts a source language program into an intermediate language (computation tree) form, which represents the meaning of the program. The second pass is then either an object code selector or an interpreter.

An ultramicro method for the separate titration of hydrogen and ammonium ions.

The measurement of pH in biological fluids is a dubious method for determination of the total hydrogen ion content. This determination requires a titration procedure. The classical titration method with adding OH− ions gives large volumetric errors in nanoliter samples. The method presented here for ultramicro analyses consists of the liberation of OH− ions from metal oxide using a current. The amount of current used is a measure of the liberated OH− ions. This method permits titration of hydrogen ions with simultaneous recording of the titration curves. After adding formaldehyde, ammonium ions in the sample liberate equivalent amounts of hydrogen ions which can be titrated in the same way. The results are presented here as correlations between this ultramicro method and conventional macro methods, and indicate a high validity, reliability and sensitivity.

Unusual Applications of Ultraviolet Spectrophotometry

Ultraviolet spectrophotometry has demonstrated its usefulness in application to problems of identification and qualitative analysis, molecular structure studies, and quantitative analysis, even of multi-component systems. The ability to observe the spectra of ions in solution has been of great usefulness in molecular structure investigations and in the determination of ionization constants. It is desired to call attention at this time to some unusual applications of ultraviolet spectrophotometry which have been made in our laboratories. These may seem somewhat obvious, but little mention of such applications has appeared in the literature, and these examples may suggest some other applications to problems not readily solved by conventional macro chemical or physical methods.