DEMAND FOR MONEY AND HAYEKIAN TRIANGLES

Friedrich August von Hayek (1935) developed a specific business cycle theory in which interactions between the real and monetary sectors play a central role. In the first version of the theory, shocks to the money supply deflect market interest rate from the natural level and thus give false signals to entrepreneurs about relative demand between present goods and future goods. This idea was represented in a simple graphical tool, which was later called the Hayekian triangle. The structure of capital and the production process are depicted in a diagram that maps flows of resources from early stages of production to late stages, and finally to the hands of the consumer. On the basis of this theory, the prelimi- nary recommendation for the monetary authority was to freeze the money supply in order to prevent fluctuations in the structure of production (Hayek 1928).

The Relative Orientation of the Trunk and Tibia can be Used to Estimate the Demands on the Hip and Knee Extensors During the Barbell Back Squat

Sagittal plane inclination of the trunk and tibia have been shown to independently modulate hip and knee extensor moments during squatting. The purpose of this study was to determine if the difference between sagittal plane trunk and tibia inclinations can be used to approximate the relative demand of the hip and knee extensors across a range of squatting conditions. Kinematic and kinetic data were obtained from 16 participants during 8 squat conditions in which trunk and tibia inclination were manipulated. The average hip/knee extensor moment ratio (HKR) was calculated during the lowering (eccentric) phase of each squat condition using inverse dynamics equations. Linear regression evaluated the association between the difference in trunk and tibia inclination at peak knee flexion and the average HKR. Across all squat conditions, the difference between trunk and tibia inclinations explained 70% of the variance in the average HKR (p < 0.001). The squat was knee extensor biased (HKR ≤ 1.0) when the tibia was at least 8 degrees more inclined than the trunk. The results of this study indicate that the relationship between sagittal plane trunk and tibia inclination can be used to estimate the relative demand of the hip and knee extensors.

Prediction Error and Forecasting Interval Analysis of Decision Trees with an Application in Renewable Energy Supply Forecasting

Renewable energy has become popular compared with traditional energy like coal. The relative demand for renewable energy compared to traditional energy is an important index to determine the energy supply structure. Forecasting the relative demand index has become quite essential. Data mining methods like decision trees are quite effective in such time series forecasting, but theory behind them is rarely discussed in research. In this paper, some theories are explored about decision trees including the behavior of bias, variance, and squared prediction error using trees and the prediction interval analysis. After that, real UK grid data are used in interval forecasting application. In the renewable energy ratio forecasting application, the ratio of renewable energy supply over that of traditional energy can be dynamically forecasted with an interval coverage accuracy higher than 80% and a small width around 22, which is similar to its standard deviation.

Extending the Race between Education and Technology

The race between education and technology provides a canonical framework that does a remarkable job of explaining US wage structure changes across the twentieth century. The framework involves secular increases in the demand for more-educated workers from skill-biased technological change, combined with variations in the supply of skills from changes in educational access. We expand the analysis backward and forward. The framework helps explain rising skill differentials in the nineteenth and twenty-first centuries but needs to be augmented to illuminate the recent convexification of education returns and implied slowdown in the growth of the relative demand for college workers.

Productivity and establishment of DRIS indexes for cultivation of potato cultivar Asterix tubers in a dystrophic Red Latosol

The potato culture has the highest relative demand for fertilizers per unit area, around 2.3 to 2.8 t ha-1. The objective of this study was to evaluate the productivity of a potato Asterix cultivar subjected to different doses of nitrogen, phosphorus, and potassium, and to establish the DRIS index according to productivity results. The experimental design was randomized blocks, with 5 rates and 4 replicates for each nutrient totalizing 20 plots per experiment. The rates of nutrients were: nitrogen (0, 70, 140, 210 and 240 Kg ha-1); phosphorus (0, 200, 400, 600 and 800 kg ha-1) and potassium (0, 150, 300, 450 and 600 kg ha-1). For leaf diagnosis by the DRIS index, 10 complete leaves of the third expanded trifoliate were collected. The DRIS standards calculations were based on populations of high productivity (or reference) and low productivity. Plants whose productivities were greater than 22 t ha-1 represented the groups of reference. It was concluded that productivity was not influenced by the P and K doses studied, with an increase in yield of tubers as a function of the N rates applied, up to the dose of 173 kg ha-1 of N. According to the DRIS index, it is possible to establish the order of limiting nutrients for failure in descending order in areas with high productivity Ca> Mn> P> S> Zn = Cu> K> N> B> Fe> Mg, and the order of limiting nutrients in areas of low productivity Ca> Cu> Mg> P> S> Mn> Zn> K> Fe = B> N. The results showed that productions above 22 t ha-1 need adjustments of the soil fertility managements.

Structural change and relative demand for skilled workers: new evidence from the US manufacturing

The present paper empirically investigates the effects of structural change—change in labor productivity fueled by labor reallocation across industries—on relative demand for skilled workers, using the NBER-CES Manufacturing Industry Database for the period of 1958–2011. The measures unveil that the US manufacturing sectors had experienced dramatic structural change since the 1990s when labor was reallocated from high-productivity to low-productivity industries. Furthermore, we find the evidence that the growth-reducing structural change impinges positively on relative demand for skilled workers and is therefore another driving force of rising wage inequality, apart from high-tech capital investment and outsourcing activities, in the US manufacturing sectors.

Shipping the good coffee out: the Alchian–Allen theorem and relative demand for Brazilian Arabica and Robusta coffees

The validity of the Alchian–Allen (AA) theorem is tested for the export demand of Brazilian Arabica (high-quality) and Robusta (low-quality) coffees. We check for robustness using different model specifications, estimation procedures and time periods. Given that international prices for both Brazilian naturals (Arabica varieties) and Robusta are determined on international commodity exchanges, the change in relative price varies by country only due to changes in transportation costs. Results show that the consumption of Arabica increases relative to the consumption of Robusta with distance, therefore with the corresponding increasing per-unit transportation cost. We confirm that GDP per capita does not impact relative demand for coffee.

Wage Inequality of IT Professionals in India

Using annual survey data from 6 cities in different regions of India, the author analyzes the rapid increase in wage inequality of information technology (IT) professionals in India from 2002 to 2015. The author describes within-group and between-group wage inequality trends and decompose wage inequality change into changes in the distribution of IT professionals in IT sectors attributes, both observed and unobserved, and changes in the returns to those attributes. The author finds that growing regional wage disparities, rising returns to unobserved IT skills, and rising returns to IT education explain most of the wage inequality increase. Rising IT skill premiums are due primarily to increasing relative demand for IT skilled professionals within IT sectors rather than to demand shifts across IT sectors. The timing of wage inequality change has been erratic, suggesting a key role played by reform policies.