The Economy: Time, Size, and Complexity

2016 ◽  
Author(s):  
Martin Shubik ◽  
Eric Smith
Keyword(s):  
Control System ◽  
General Equilibrium ◽  
Exchange Economy ◽  
Price System ◽  
Shadow Prices ◽  
Financial Instruments ◽  
Static Theory ◽  
Informal Control ◽  
The Government ◽  
Formal Rules

The first five chapters have been devoted to reformulating a pre-institutional static theory of general equilibrium, into considering an economy in terms of process where markets and other institutions exist embedded within and interacting on different timescales with the polity and society. This embedding of the economy within the framework of government and society provides both a natural formal and informal control system. The government provides the formal rules with the laws and their enforcement and the society and polity on different timescales provide the pressure on the government for rule formation and the direct pressures on the economy to conform to custom as well as law. The price system where it exists provides a perception device where the pressures of disequilibrium are signalled by the shadow prices that develop both on the price of commodities and on loans and other financial instruments. We deal here with the production and exchange economy in a process setting.

Comments on "Shadow Pricing and Macroeconomic Analysis: Some Illustrations from Pakistan" by Squire et al.

1979 ◽  
Vol 18 (2) ◽  
pp. 113-115
Author(s):  
T. N. Srinivasan
Keyword(s):  
General Equilibrium ◽  
Equilibrium Model ◽  
General Equilibrium Model ◽  
Equilibrium Analysis ◽  
Partial Equilibrium ◽  
Shadow Prices ◽  
Essential Point ◽  
Economic Issues ◽  
Shadow Pricing ◽  
Extreme Sensitivity

The paper is too long for conveying the message that shadow pricing used as a method of analysis in micro-economic issues of project selection is also useful for analysing macro-economic issues, such as foreign and domestic borrowing by the government, emigration, etc. Much of the methodological discussion in the paper is available in a readily accessible form in several publications of each of the coauthors; In contrast, the specific application of the methodology to Pakistani problems is much too cavalier. While it is hard to disagree with the authors' claim that shadow pricing "constitutes a relatively informal attempt to capture general equilibrium effects" (p. 89, emphasis added), their depiction of traditional analysis is a bit of a caricature: essentially it sets up a strawman to knock down. After all in the traditional partial equilibrium analysis, the caveat is always entered that the results are possibly sensitive to violation of the ceteris paribus assumptions of the analysis, though often the analysts will claim that extreme sensitivity is unlikely. Analogously, the shadow pricing method presumes "stationarity" of shadow prices in the sense that they are “independent of policy changes under review" (p. 90). The essential point to be noted is that the validity of this assertion or of the "not too extreme sensitivity" assertion of partial equilibrium analysts can be tested only with a full scale general equilibrium model! At any rate this reviewer would not pose the issue as one of traditional partial equilibrium macro-analysis versus shadow pricing as an approximate general equilibrium analysis, but would prefer a description of project analysis as an approach in which a macro-general equilibrium model of a manageable size (implicit or explicit) is used to derive a set of key shadow prices which are then used in a detailed micro-analysis of projects.

scholarly journals Pengaruh Sistem Pengendalian Intern Pemerintah dan Moralitas Individu pada Kesalahan Akuntansi

2018 ◽  
pp. 1170
Author(s):  
I Gusti Agung Gde Dennyningrat ◽  
I D.G. Dharma Suputra
Keyword(s):  
Control System ◽  
Internal Control ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Internal Control System ◽  
Negative Effect ◽  
The Government ◽  
Questionnaire Method ◽  
Accounting Errors

Accounting mistakes are a mistake in financial facts. In order for an agency or company does not occur accounting errors, agencies or companies need to consider the factors that affect accounting errors. The purpose of this study is to provide empirical evidence of the effect of Government Internal Control System and individual morality on accounting errors. This research was conducted at Local Government of Badung Regency. Population in this research is all financial officer at Badung Regency Government. The number of samples taken as many as 35 employees, with purposive sampling technique. The data were collected by questionnaire method. Data analysis technique used is multiple linear regression analysis. Based on the results of the analysis, it is known that the Government Internal Control System and individual morality have a negative effect on accounting errors in Badung District Government.

Pengaruh Sistem Pengendalian Internal Pemerintah Terhadap Kinerja Pemerintah Daerah

2021 ◽  
Vol 2 (2) ◽  
pp. 100-109
Author(s):  
Mattoasi Mattoasi ◽  
Didiet Pratama Musue ◽  
Yaman Rauf
Keyword(s):  
Control System ◽  
Internal Control ◽  
Local Governments ◽  
Quantitative Research ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
Quantitative Research Methods ◽  
Internal Control System ◽  
The Government

PThis study aims to determine the effect of the internal control system on the performance of local government Case Study in Gorontalo Regency. This study uses quantitative research methods, and the data sources use primary data obtained from questionnaires distributed to respondents. Meanwhile, the data analysis used in this research is descriptive quantitative analysis using statistical t-test and coefficient of determination test (ajusted R-Square). The results showed that the internal control system had a positive effect on the performance of local governments with a determinant value of 48.7%. The result of this study contribute to the government to establish and implement a more effectives Internal Constrol Systems (ICS).  

scholarly journals EFEKTIVITAS SISTEM PENGENDALIAN INTERN PADA KINERJA INSTANSI PEMERINTAH DI DINAS PENDAPATAN DAERAH KABUPATEN MINAHASA UTARA

2016 ◽  
Vol 11 (2) ◽  
Author(s):  
Renli Ferrari Daud Sondakh ◽  
David Paul Elia Saerang ◽  
Lidia M. Mawikere
Keyword(s):  
Control System ◽  
Internal Control ◽  
Government Regulation ◽  
Government Agencies ◽  
Government Organization ◽  
Performance Effectiveness ◽  
Government Accounting ◽  
Internal Control System ◽  
The Government ◽  
Business Property

In a government organization requires their internal control systems due to their system of internal control activities undertaken by government agencies more effective and avoid fraud and keep the business property of parties who are not responsible. The object of this research is the Dinas Pendapatan Daerah Kabupaten Minahasa Utara. The purpose of this study to analyze the effectiveness of the internal control system on the performance of government agencies in the Dinas Pendapatan Daerah Kabupaten Minahasa Utara. The method used is descriptive qualitative. The results showed that the internal control system used Dinas Pendapatan Daerah Kabupaten Minahasa Utara effective and sufficient for compliance with the Internal Control System of the Government that has been set by the government based on Government Regulation No. 60 of 2008, so that the achievement of revenue receipts and the realization of the region in 2015 is said to be very effective. Keywords: Government Accounting, Internal Control System of the Government, Performance, effectiveness, Dinas Pendapatan Daerah

scholarly journals Pengaruh Transparansi, Kompetensi, Dan Sistem Akuntansi Keuangan Terhadap Akuntabilitas Pengelolaan Keuangan Daerah Dengan Penerapan Sistem Pengendalian Internal Pemerintah Sebagai Variabel Moderasi

2021 ◽  
Vol 4 (2) ◽  
pp. 419-433
Author(s):  
Ria Herlina ◽  
Taufeni Taufik ◽  
Azwir Nasir
Keyword(s):  
Control System ◽  
Internal Control ◽  
Financial Management ◽  
Financial Accounting ◽  
Accounting System ◽  
Analysis Method ◽  
Accounting Systems ◽  
Finance Management ◽  
Internal Control System ◽  
The Government

This study aims to examine the effect of transparency, competency, financial accounting systems on the accountability of regional financial management with the government's internal control system as a moderating variable with a case study in Indragiri Hulu Regency. The population of this study were all employees in all OPDs in Indragiri Hulu Regency as many as 45 OPDs so that a sample of 180 respondents was obtained from this population using the purposive sampling method. The data analysis method used in this research is the quantitative analysis method with WarpPLS version 6.0 as data processing software. The results show that transparency, competency, and financial accounting systems affect the accountability of regional financial management, the implementation of the government internal control system can moderate the effect of transparency and financial accounting systems on the accountability of regional financial management, and the implementation of the government internal control system cannot moderate the effect of competency on the accountability of regional finance management. Keywords: Transparency, Competency, Financial Accounting System, The Accountability of Regional Financial Management, Implementation of The Government Internal Control System

Equilibrium with Constant Returns

2011 ◽  
Author(s):  
Yves Balasko
Keyword(s):  
General Equilibrium ◽  
Equilibrium Model ◽  
Convex Cone ◽  
Supply And Demand ◽  
Returns To Scale ◽  
Price System ◽  
Production Sector ◽  
The One ◽  
Constant Returns To Scale ◽  
Privately Owned

This chapter analyzes an equilibrium model where privately owned firms feature either smooth decreasing or constant returns to scale. Profit of the constant returns to scale firms being equal to zero at equilibrium, the equilibrium of the model does not depend on the ownership structure of these firms. In addition, the convex conical production sets of these firms sum up into a convex cone. It is as if the production sector operating under constant returns consists of a unique firm. The general equilibrium model with decreasing and constant returns to scale firms is essentially the same model as the one considered in Chapter 10 with the addition of a unique firm operating under constant returns to scale. Nevertheless, this addition is enough to hamstring the approach of the preceding chapters based on the concept of price system that equates aggregate supply and demand. The solution is to add to that price system the activity of the constant returns to scale firm.

Minimal Institutions: Game Theory and Gaming

2016 ◽  
Author(s):  
Martin Shubik ◽  
Eric Smith
Keyword(s):  
Game Theory ◽  
General Equilibrium ◽  
Institutional Economics ◽  
Price System ◽  
Process Models ◽  
Price Formation ◽  
Equilibrium System

The General Equilibrium system provides a pre-institutional modeling structure appropriate to studying many allocative properties of the price system. The economies we live in ere encompassed by their polities and societies. The task laid out here is to indicate how to build process models of the economy that are consistent with the General Equilibrium system, but build out in a systematic manner towards the multitude of institutions that are the carriers of process in an ongoing society. It is argued here that this can be done in such a manner that there is a natural cascade of process models consistent with General Equilibrium: but these become progressively more complex as new functions are required to support the dynamics of the society. The first step into a mathematical institutional economics involves the invention of markets and money and the endogenization of price formation.

scholarly journals Payment for Rice Growers to Reduce Using N Fertilizer in the GHG Mitigation Program Driven by the Government: Evidence from Shanghai

2019 ◽  
Vol 11 (7) ◽  
pp. 1927
Author(s):  
Hai-Ying Gu ◽  
Qing-Mi Hu ◽  
Tian-Qiong Wang
Keyword(s):  
Social Welfare ◽  
Economic Value ◽  
Participation Rate ◽  
N Fertilizer ◽  
Shadow Prices ◽  
Ghg Mitigation ◽  
The Social ◽  
Directional Output Distance Function ◽  
The Government ◽  
The Relationship

The overuse of N fertilizer by rice growers triggers excessive greenhouse gas (GHG) emission, leading to the environmental and climatic problem. However, growers will probably suffer loss in profits if they reduce the use of N fertilizer under the existing technology condition. The payment in market-based or government-driven way may overcome the potential barrier. For the appropriate carbon trading market is absent, the government-driven program will play a role in the payment. Three key issues in the designed program are the price of the payment, the participation rate of rice growers, and the variation of items associated with the social welfare. Due to the difficulty in estimating the economic value, prices of the payment can be set according to shadow prices. This paper applies the parametric directional output distance function to derive shadow prices of CO2 for 308 rice growers in Shanghai from 2008–2015. Average shadow prices range from RMB 1130 to 3769 yuan/ton (or US 163 to 618 $/ton). Taking the year of 2015 as sample, this paper predicts the participation rate (97.08%) of rice growers with the aim of 10% N fertilizer reduction and the specific price of the payment (7.47 yuan/kg). Moreover, this paper discusses on the variation of factors linked with the social welfare, and derive two important relationships from it. In detail, the relationship between the yield of the rice and the reduction of the N fertilizer should be balanced; the relationship between the improvement on the profit of rice growers (or the participation rate) in the program and the payment by the government should also be balanced.

The Democratic Implications of npos and the Control Strategy of the State

2016 ◽  
Vol 8 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Changjuan Geng ◽  
Lucas Meijs
Keyword(s):  
The Netherlands ◽  
Nonprofit Organizations ◽  
Control Strategy ◽  
Essential Role ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Public Awareness ◽  
The State ◽  
Financial Instruments ◽  
The Government

Liberal scholars attribute an essential role to nonprofit organizations (npos) in the process of democratization, due to their roles in raising public awareness and supervising the hegemony of the state. Nevertheless, the current literature has yet to pay sufficient attention to the ways in which governments respond to the dynamics of power. As argued inpublic rational choice theory, the government is a self-benefit maximizing bureaucrat that spares no effort to adopt various strategies aimed at keeping society under control. We have studied this postulation by comparing the two contrasting civil societies of China and the Netherlands. Results from our investigation of campaigningnpos from China and the Netherlands confirm that states tend to apply a range of strategies (e.g., political restrictions and financial instruments) in order to assimilatenpos into the developmental planning of the government (e.g., by stimulating the economic functions ofnpos while weakening their democratic functions in intangible ways).

Causes of China's Low Consumption from the Perspective of Local Governmental Competition

2020 ◽  
Vol 13 (1) ◽  
pp. 15-31
Author(s):  
Yaling Zhu ◽  
Huifang Zhang
Keyword(s):  
Panel Data ◽  
General Equilibrium ◽  
Public Goods ◽  
Mathematical Models ◽  
Empirical Analysis ◽  
Local Governments ◽  
Household Consumption ◽  
Total Consumption ◽  
The Government ◽  
The Empirical Analysis

Taking into account the three-sector general equilibrium perspective of the government, business, and household sectors and taking government public goods investment as intermediary; this article builds mathematical models of local governmental competition and three-sector consumption. It also theoretically analyzes the impacting path of local governmental competition, causing increased investment in public goods, thereby reducing consumption. At the same time, based on the model of China's provincial panel data from 1993 to 2015, the empirical analysis shows that a 1% increase in the level of competition among local governments will result in a corresponding decrease of 0.757% in total consumption, 0.348% in governmental competition, 0.340% in business consumption and 0.366% in household consumption. Local governmental competition leads to the government's tendency to invest in public goods and reduces the regional consumption, which especially damages the consumption capacity of the household sector.

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