scholarly journals REDUNDANCY OR MISMEASUREMENT? A REAPPRAISAL OF MONEY

2013 ◽  
Vol 18 (7) ◽  
pp. 1437-1465 ◽  
Author(s):  
Joshua R. Hendrickson
Keyword(s):  
Monetary Policy ◽  
Number Theory ◽  
Empirical Research ◽  
Money Demand ◽  
Empirical Work ◽  
Index Number ◽  
Intermediate Target ◽  
Index Number Theory ◽  
Information Variable

The emerging consensus in monetary policy and business cycle analysis is that money aggregates are not useful as an intermediate target for monetary policy or as an information variable. The uselessness of money as an intermediate target is driven, at least in part, by empirical research that suggests that money demand is unstable. In addition, the informational quality of money has been called into question by empirical research that fails to identify a relationship between money growth and inflation, nominal income growth, and the output gap. Nevertheless, this research is potentially flawed by the use of simple sum money aggregates, which are not consistent with economic, aggregation, or index number theory. This paper therefore reexamines previous empirical evidence on money demand and the role of money as an information variable, using Divisia monetary aggregates. These aggregates have the advantage of being derived from microtheoretic foundations, as well as being consistent with aggregation and index number theory. The results of the reevaluation suggest that previous empirical work might be driven by mismeasurement.

Narcissism Dynamics

2021 ◽  
Author(s):  
Elizabeth A. Edershile ◽  
Aidan G.C. Wright
Keyword(s):  
Dynamical System ◽  
Empirical Research ◽  
Empirical Work ◽  
Theoretical Work ◽  
Self Esteem ◽  
Dynamic Processes ◽  
Cross Sectional ◽  
Complex Dynamical System ◽  
Antagonistic Behavior

The scientific study of narcissism has accelerated in recent years. However, this literature has primarily been cross-sectional and descriptive in nature, making it difficult to integrate with theories of narcissism, which instead emphasize various dynamics. Theoretical work construes narcissism as a complex dynamical system with processes that interact to contribute to narcissism expression and maintenance. We begin by reviewing theoretical accounts of narcissism and what they suggest about dynamic processes. We then review research that examines processes associated with narcissism in naturalistic settings. Integrating clinical theories with empirical work, we highlight remaining tensions in the field and discuss major conceptual considerations. For example, we discuss the role of entitlement and antagonistic behavior within narcissism and the need to identify the temporal ordering of various processes (e.g., self-esteem fluctuations and fluctuations in grandiosity and vulnerability). In light of limitations of the existing literature, we then discuss methodological barriers that currently limit the ability to fully align empirical research with theorized processes within narcissism.

Index number theory and practice.

2011 ◽  
pp. 612-650
Author(s):  
Frederick E. Croxton ◽  
Dudley J. Cowden
Keyword(s):  
Number Theory ◽  
Theory And Practice ◽  
Index Number ◽  
Index Number Theory

HIGH INFLATION, SEASONAL COMMODITIES, AND ANNUAL INDEX NUMBERS

1998 ◽  
Vol 2 (4) ◽  
pp. 456-471 ◽  
Author(s):  
W. Erwin Diewert
Keyword(s):  
Economic Growth ◽  
Number Theory ◽  
Index Number ◽  
Economic Approach ◽  
Index Numbers ◽  
Index Number Theory ◽  
Intertemporal Preferences ◽  
High Inflation ◽  
Annual Index ◽  
Accounting Period

This paper studies the problems of measuring economic growth under conditions of high inflation. Traditional bilateral index number theory implicitly assumes that variations in the price of a commodity within a period can be ignored. To justify this assumption under conditions of high inflation, the accounting period must be shortened to a quarter, a month, or possibly a week. However, once the accounting period is less than a year, the problem of seasonal commodities is encountered; i.e., in some subannual periods, many seasonal commodities will be unavailable and hence the usual bilateral index number theory cannot be applied. The paper systematically reviews the problems of index number construction when there are seasonal commodities and high inflation. Various index number formulas are justified from the viewpoint of the economic approach to index number theory by making separability assumptions on consumers' intertemporal preferences. We find that accurate economic measurement under conditions of high inflation is very complex.

WHEN DOES MONETARY MEASUREMENT MATTER (MOST)?

2018 ◽  
pp. 1-17
Author(s):  
Makram El-Shagi
Keyword(s):  
Monetary Policy ◽  
Index Number ◽  
Economic Uncertainty ◽  
Monetary Policy Shocks ◽  
Interaction Terms ◽  
Index Number Theory ◽  
Policy Shocks ◽  
Local Projections ◽  
Relevant Interaction ◽  
Selection Of

It has repeatedly been shown that properly constructed monetary aggregates based on index number theory (such as Divisia money) vastly outperform traditional measures of money (i.e. simple sum money) in empirical models. However, opponents of Divisia frequently claim that Divisia is “too complex” for little gain. And indeed, at first glance it looks as if simple sum and Divisia sum exhibit similar dynamics. In this paper, we want to build deeper understanding of how and when Divisia and simple sum differ empirically using monthly US data from 1990M1 to 2007M12. In particular, we look at how they respond differently to monetary policy shocks, which seems to be the most essential aspect of those differences from the perspective of the policy maker. We use a very rich, fairly agnostic setup that allows us to identify many potential nonlinearities, building on a smoothed local projections approach with automatic selection of the relevant interaction terms. We find, that—while the direction of change is often similar—the precise dynamics differ sharply. In particular in times of economic uncertainty, when the proper assessment of monetary policy is most relevant, those existing differences are drastically augmented.

EXACT AND SUPERLATIVE PRICE AND QUANTITY INDICATORS

2009 ◽  
Vol 13 (S2) ◽  
pp. 335-380 ◽  
Author(s):  
W. Erwin Diewert ◽  
Hideyuki Mizobuchi
Keyword(s):  
Number Theory ◽  
Unit Cost ◽  
Utility Functions ◽  
Cost Functions ◽  
Index Number ◽  
Economic Approach ◽  
Index Number Theory ◽  
Nonhomothetic Preferences ◽  
The Difference

The traditional economic approach to index number theory is based on a ratio of cost functions. Diewert defined superlative price and quantity indices as observable indices that were exact for a ratio of unit cost functions or for a ratio of linearly homogeneous utility functions. The present paper looks for counterparts to his results in the difference context, for both flexible homothetic and flexible nonhomothetic preferences. The Bennet indicators of price and quantity change turn out to be superlative for the nonhomothetic case. The underlying preferences are of the translation-homothetic form discussed by Balk, Chambers, Dickenson, Färe, and Grosskopf.

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