A Fundamental Contradiction in Standard Rent Theory: A Case Study on Varian's "Intermediate Microeconomics"

In this paper, I examine Varian’s treatment of rent in his textbook on Microeconomics. I argue that he holds contradictory conceptions: sometimes rent is defined as surplus over cost whereas sometimes it is defined as cost, as the opportunity cost of fixed factors. I start by arguing that the distinction between fixed and variable factors is not the key for the definition of rent; ultimately, it is monopoly. Varian’s conception of rent is, essentially, Ricardo’s: rent is extraordinary profit turned rent. On the basis of a selfinconsistent notion of opportunity cost, Varian introduces the idea that rent is the opportunity cost of land, when what he actually defines is the opportunity cost of not renting the land. I also critically examine the related notion of “producer’s surplus”, and show that Varian’s treatment repeats the same contradiction as in rent.

Profit and Cost in "Modern" Post-Marxian Profit Theory: A Case Study from Varian's "Intermediate Microeconomics"

In this paper, I examine the treatment of competitive profit of professor Varian in his textbook on Microeconomics, as a representative of the “modern” post-Marxian view on competitive profit. I show how, on the one hand, Varian defines profit as the surplus of revenues over cost and, thus, as a part of the value of commodities that is not any cost. On the other hand, however, Varian defines profit as a cost, namely, as the opportunity cost of capital, so that, in competitive conditions, the profit or income of capital is determined by the opportunity cost of capital. I argue that this second definition contradicts the first and that it is based on an incoherent conception of opportunity cost.

Long-Term Growth and Persistence with Endogenous Depreciation: Theory and Evidence

Previous research has shown a strong positive correlation between short-term persistence and long-term output growth as well as between depreciation rates and long-term output growth. This evidence, therefore, contradicts the standard predictions from traditional neoclassical or AK-type growth models with exogenous depreciation. In this paper, we first confirm these findings for a larger sample of 101 countries. We then study the dynamics of growth and persistence in a model where both the depreciation rate and growth are endogenous and procyclical. We find that the model s predictions become consistent with the empirical evidence on persistence, long-term growth and depreciation rates.

Transition Between Detonation and Deflagration in a Tube with a Cavity

In this paper, the transition of a detonation from deflagration was investigated numerically while a detonation wave propagates in a tube with a sudden change in cross section, referred to as the expansion cavity. The dispersion-controlled scheme was adopted to solve Euler equations of axis-symmetric flows implemented with detailed chemical reaction kinetics of hydrogen-oxygen (or hydrogen-air) mixture. The fractional step method was applied to treat the stiff problems of chemical reaction flow. It is observed that phenomena of detonation quenching and reigniting appear when the planar detonation front diffracts at the vertex of the expansion cavity entrance. Numerical results show that detonation front in mixture of higher sensitivity keeps its substantial coupled structure when it propagates into the expansion cavity. However, the leading shock wave decouples with the combustion zone if mixture of lower sensitivity was set as the initial gas.

Determination of plastic properties by instrumented spherical indentation: Expanding cavity model and similarity solution approach

The present paper aims to develop a robust spherical indentation-based method to extract material plastic properties. For this purpose, a new consideration of-piling-up effect is incorporated into the expanding cavity model; an extensive numerical study on the similarity Solution has also been performed. As a consequence, two semi-theoretical relations between the indentation response and material plastic properties are derived, with which plastic properties of materials can be identified from a single instrumented spherical indentation curve, the advantage being that this approach no longer needs estimations of contact radius with given elastic modulus. Moreover, the inconvenience in using multiple indenters with different tip angles can be avoided. Comprehensive sensitivity analyses show that the present algorithm is reliable. Also, by experimental verification performed oil three typical materials, good agreement of the material properties between those obtained from the reverse algorithm and experimental data is obtained.

Visual impact assessment of small dock & piers: Theory and practice

From a manager’s perspective, oftentimes the publicly held concerns related to small docks and piers are not really related to the environment. They may be more related to visual impacts and aesthetic concerns, a sense of over-development of the shore, or simply change. While individuals may hold personal aesthetic values related to small docks in general or an individual structure in particular, techniques have evolved that appear to provide reproducible, predictive assessments of the visual impacts and aesthetic values of an area and how those might change with development, including an increase in numbers of small docks. These assessments may be used to develop regulatory or non-regulatory methods for the management of small docks based on state or community standards. Visual impact assessments are increasingly used in the regulatory review of proposed development—although this process is still in its infancy as regards small docks and piers. Some political jurisdictions have established visual impact or aesthetic standards as relate to docks and others are in the process of investigating how to go about such an effort. (PDF contains 42 pages)