Equilibrium Principle in Colombian Public Contracting

Public contracting in Colombia is conflicting and inefficient. It frequently leads to damage to State property. The Colombian legal system cannot assure efficient and transparent public contracting. The cause is the institutional environment characterized by high transaction costs. Colombian law worsens the process by recognizing the principle of economic equilibrium in public contracts. This principle increasese contract incompleteness and renders impossible the use of economic incentives to control the opportunism of the economic agents. The authors present the hypothesis that the economic equilibrium principle increases the conflictive nature of public contracting. They test the hypothesis empirically. The first section of the paper presents a summary of the literature on transaction costs economics, as well as the legal literature on the historical origin and the content of the economic equilibrium principle. The second section describes the methodology of the empirical study. The third section shows the empirical evidence of the effects that the economic equilibrium principle exerts over the public contracting. The last section presents the conclusions.

An econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji

Purpose – The purpose of this paper is to construct an econometric model of the determinants of private investment with a particular focus on the impact of democracy on investment.

Design/methodology/approach – The first step was to econometrically derive the long-run elasticities; then to modify the Fiji computable general equilibrium (CGE) model to incorporate the investment function. Also the econometrically derived long run elasticities in the CGE model were used.

Findings – It was found that democracy has a positive and statistically significant impact on private investment in Fiji. The paper's simulation of Fiji becoming a fully democratic country on investment and other macroeconomic fundamentals, based on a CGE model, reveals that real gross domestic product and real national welfare increase by around 0.01 and 0.05 per cent, respectively; government savings and revenue performance improves; there is a trade balance surplus; and both private consumption and disposable income increase by around 0.05 and 0.12 per cent, respectively.

Originality/value – This is the first study that uses a CGE model to examine the impact of democracy, via investment, on other macroeconomic fundaments. No other study is known to have modelled democracy in a CGE framework.

Empirical applications of economic principles in producer price index analysis

The research analyses economic linkages of producer price indices of the construction industry in Australia and relationships between construction and house prices. A range of econometric techniques are applied to analyse construction and house prices. The economic equilibrium and dynamic relationships among regional markets are investigated based on producer price index analysis.

Immigration as a strategic vector for the socio-economic and institutional development of Brazil

Brazil has demonstrated resilience in relation to the recent economic crises and has an auspicious development potential projected for the coming decades, which, linked to the globalization process, provides important opportunities for our people. Gradually we have established ourselves as one of the leading nations in the world and we have become a reference in questions linked to economic equilibrium, development, energy, agriculture and the environment. This international recognition favors the exchange of experiences with other cultures, governments and organizations, bringing with it the possibility of stimulating a dynamic process of development and innovation.

Solving a signalized traffic intersection problem with an hyperbolic penalty function

Mathematical Program with Complementarity Constraints (MPCC) finds many applications in fields such as engineering design, economic equilibrium and mathematical programming theory itself. A queueing system model resulting from a single signalized intersection regulated by pre-timed control in traffic network is considered. The model is formulated as an MPCC problem. A MATLAB implementation based on an hyperbolic penalty function is used to solve this practical problem, computing the total average waiting time of the vehicles in all queues and the green split allocation. The problem was codified in AMPL.

On Stackelberg Equilibria with Differentiated Products: the Critical Role of the Strategy Space.

Nous Considerons Dans Cet Article un Modele de Duopole Avec Produits Differencies; Nous Montrons Que le Caractere Substituts Vs Complements de Ces Produits Est un Facteur Important Dans la Determination du Mode de Concurrence Strategique (Cournot-Bertrand, Nash Mixte, Stackelberg; En Prix Ou Quantites) Que L'on Est Susceptible D'observer. Si les Produits Sont Substituts (Complements), la Concurrence Sera du Type Cournot (Bertrand) Plutot Que du Type Nash Mixte a Moins Qu'une Firme Puisse Affirmer Son Leadership et Forcer une Concurrence a la Stackelberg Mais Quel Soit le Role Tenu Par une Firme, Il Sera Preferable Pour Elle Que la Concurrence S'exprime En Quantite (Prix). Par Ailleurs, la Concurrence a la Bertrand Est Toujours la Meilleure du Point de Vue des Consommateurs et du Point de Vue de L'efficacite Sociale, et Ce, Que les Produits Soient Susbtituts Ou Complements.

Macroclosures in Open Economy Cge Models: a Numerical Reappraisal

It Has Been Argued That in the Construction and Simulation Process of Computable General Equilibrium (Cge) Models, the Choice of the Proper Macroclosure Remains a Fundamental Problem. in This Study, with a Standard Cge Model, We Simulate Disturbances Stemming From the Supply Or Demand Side of the Economy, Under Alternative Macroclosures. According to Our Results, the Choice of a Particular Closure Rule, for a Given Disturbance, May Have Different Quantitative and Qualitative Impacts. This Seems to Confirm the Imiportance of Simulating Cge Models Under Alternative Closure Rules and Eventually Choosing the Closure Which Best Applies to the Economy Under Study.

Entwicklung des Emirates Qatar : Strategien - Probleme - Erfolge

Qatar boomt. Da es hierzu keine ganzheitlichen Forschungsarbeiten gibt, werden in dieser Arbeit die neuesten Entwicklungen und Planungen mit hoher Aktualität und Praxisrelevanz erstmals erfasst und analysiert. Der Autor führt Informationssplitter von internationalen Organisationen und eigene Recherchen in ein ganzheitliches Bild zusammen. Qatar ist sich bewusst, dass Wachstum endlich sein kann. Welche Möglichkeiten hat das kleine Qatar von der Globalisierung zu profitieren und für sich Vorteile für die Zukunft nach dem Öl zu generieren? Der Fokus der Arbeit liegt auf den ökonomische und ökologischen Stellschrauben der Transformation unter wirtschaftsgeographischen, soziodemographischen und strategischen Gesichtspunkten mit lokalen, regionalen und internationalen Betrachtungsweisen in den Themenfeldern (Welt-) Wirtschaft, Bildung, Infrastruktur und Umwelt. Ausgewählte Faktorungleichgewichte werden in Bezug auf Aussenwirtschaft und Binnenwirtschaft erläutert sowie die Nutzung von korankonformen Finanzierungsinstrumenten und Direktinvestitionen von und in Qatar.rnrnKeywords: Qatar / Katar / Peak-Oil / Emirat / FDI / Qatarisches Modell / Masterplan / Wohlfahrtsmehrung / Disparität / Nachhaltigkeit / Islamic Banking / Agglomeration / Akkumulation / Globalisierung / Arabische Halbinsel / Persischer Golf / Faktor- Gleichgewichte / Doha / Aluminium / LNG / Gas / best practicern

The Eurozone crisis and the erosion of democratic legitimacy: Lessons from the gold standard. ACES Cases No. 2013.3

This paper makes four propositions. First, it argues that the euro’s institutional design makes it function like the interwar gold exchange standard during periods of stress. Just like the gold exchange standard during the 1930s, the euro created a ‘core’ of surplus countries and a ‘periphery’ of deficit countries. The latter have to sacrifice their internal domestic economic equilibrium in order to restore their external equilibrium, and therefore have no choice but to respond to balance of payments crises by a series of deflationary spending, price and wage cuts. The paper’s second claim is that the euro’s institutional design and the EU’s response to its ‘sovereign debt crisis’ during 2010-13 deepened the recession in the Eurozone periphery, as EMU leaders focused almost exclusively on austerity measures and structural reforms and paid only lip service to the need to rebalance growth between North and South. As Barry Eichengreen argued in Golden Fetters, the rigidity of the gold standard contributed to the length and depth of the Great Depression during the 1930s, but also underscored the incompatibility of the system with legitimate national democratic government in places like Italy, Germany, and Spain, which is the basis for the paper’s third proposition: the euro crisis instigated a crisis of democratic government in Southern Europe underlining that democratic legitimacy still mainly resides within the borders of nation states. By adopting the euro, EMU member states gave up their ability to control major economic policy decisions, thereby damaging their domestic political legitimacy, which in turn dogged attempts to enact structural reforms. Evidence of the erosion of national democracy in the Eurozone periphery can be seen in the rise of anti-establishment parties, and the inability of traditional center-left and center-right parties to form stable governments and implement reforms. The paper’s fourth proposition is that the euro’s original design and the Eurozone sovereign debt crisis further widened the existing democratic deficit in the European Union, as manifested in rising anti-EU and anti-euro sentiment, as well as openly Eurosceptic political movements, not just in the euro periphery, but also increasingly in the euro core.

Equilibrium in dynamic economic models

The main theme running through these three chapters is that economic agents are often forced to respond to events that are not a direct result of their actions or other agents actions. The optimal response to these shocks will necessarily depend on agents' understanding of how these shocks arise. The economic environment in the first two chapters is analogous to the classic chain store game. In this setting, the addition of unintended trembles by the agents creates an environment better suited to reputation building. The third chapter considers the competitive equilibrium price dynamics in an overlapping generations environment when there are supply and demand shocks.

The first chapter is a game theoretic investigation of a reputation building game. A sequential equilibrium model, called the "error prone agents" model, is developed. In this model, agents believe that all actions are potentially subjected to an error process. Inclusion of this belief into the equilibrium calculation provides for a richer class of reputation building possibilities than when perfect implementation is assumed.

In the second chapter, maximum likelihood estimation is employed to test the consistency of this new model and other models with data from experiments run by other researchers that served as the basis for prominent papers in this field. The alternate models considered are essentially modifications to the standard sequential equilibrium. While some models perform quite well in that the nature of the modification seems to explain deviations from the sequential equilibrium quite well, the degree to which these modifications must be applied shows no consistency across different experimental designs.

The third chapter is a study of price dynamics in an overlapping generations model. It establishes the existence of a unique perfect-foresight competitive equilibrium price path in a pure exchange economy with a finite time horizon when there are arbitrarily many shocks to supply or demand. One main reason for the interest in this equilibrium is that overlapping generations environments are very fruitful for the study of price dynamics, especially in experimental settings. The perfect foresight assumption is an important place to start when examining these environments because it will produce the ex post socially efficient allocation of goods. This characteristic makes this a natural baseline to which other models of price dynamics could be compared.