Individual consumer surplus in the Edgeworth Box

Subject. The consumer surplus conception is an important part of the modern microeconomic theory at the introductory and intermediate levels. Consumer surplus measures the change in the consumer’s real welfare. The article addresses the peculiarities of generation and the main property of the generalized individual consumer surplus, using the Edgeworth Box case. Objectives. The purpose is to find the main property of individual consumer surplus in the Edgeworth Box economy. Methods. The study draws on methods of logical and mathematical analysis. The generalized consumer surplus is correctly constructed, using the mathematical theory of curve integrals of the second type (the theory of line integrals in the Western mathematics). Results. The generalized individual consumer surplus is defined through the respective curve integral along some admissible trajectory in the simple exchange economy (Edgeworth Box). The paper also introduces the notion of the marginal individual consumer surplus, and demonstrates that consumer surplus is a correct individual welfare measure in the Edgeworth Box, and that consumer surplus is zero along any given indifference curve. I consider the numerical example of individual surplus calculation and presentation in the Edgeworth Box. Conclusions. The generalized individual consumer surplus is a correct measure of consumer’s utility change along monotone (weakly monotone) trajectories in the Edgeworth Box. Geometrically, the consumer surplus is presented as an area limited by the reservation price curve from the top and by the reallocation line (curve) from the bottom.

SVD Entropy Reveals the High Complexity of Ecological Networks

Quantifying the complexity of ecological networks has remained elusive. Primarily, complexity has been defined on the basis of the structural (or behavioural) complexity of the system. These definitions ignore the notion of “physical complexity,” which can measure the amount of information contained in an ecological network, and how difficult it would be to compress. We present relative rank deficiency and SVD entropy as measures of “external” and “internal” complexity, respectively. Using bipartite ecological networks, we find that they all show a very high, almost maximal, physical complexity. Pollination networks, in particular, are more complex when compared to other types of interactions. In addition, we find that SVD entropy relates to other structural measures of complexity (nestedness, connectance, and spectral radius), but does not inform about the resilience of a network when using simulated extinction cascades, which has previously been reported for structural measures of complexity. We argue that SVD entropy provides a fundamentally more “correct” measure of network complexity and should be added to the toolkit of descriptors of ecological networks moving forward.

Conference facilities as a key factor in the competitiveness of urban hotels: A case study of Łódź (Poland)

The article aims to assess the competitiveness of hotels in Łódź on the meeting tourism (MICE) market based on an analysis of their conference facilities. The data was obtained from GUS statistics, reports on MICE tourism in Poland and as a result of own field research carried out in 2019. Exploratory data analysis was used in their development. The development of modern hotels in Łódź of higher categories with obligatory conference rooms has contributed to the diversification of the possibilities of organising MICE tourism by city hotels. The hotel’s possession of conference facilities has become an important factor in building its competitive advantage. The analysis of hotel equipment with conference facilities, using the conference service capacity (CSC) index, turned out to be a sufficiently correct measure to illustrate the diversity of hotels’ ability to compete in the MICE urban tourism market.

Electro-magnetic energy extraction from rotating black holes in AdS

Force-Free Electrodynamics for black holes in Anti de Sitter is considered. We present new, energy extracting solutions of Force-Free Electrodynamics in Anti de Sitter-Near Horizon Extremal Kerr and Super-Entropic Near Horizon Extremal Kerr geometries. The relevant equations of motion are derived from an action for force-free plasma surrounding spinning black holes with generic asymptotics. We consider the energy flux of electrodynamic fields in rotating frames to argue that the correct measure for energy extraction is the energy flux measured by a rotating observer in the near horizon region. We illustrate this procedure by application to near horizon solutions in Kerr, AdS-Kerr and BTZ.

SVD entropy reveals the high complexity of ecological networks

Quantifying the complexity of ecological networks has remained elusive. Primarily, complexity has been defined on the basis of the structural (or behavioural) complexity of the system. These definitions ignore the notion of 'physical complexity', which can measure the amount of information contained in an ecological network, and how difficult it would be to compress. We present relative rank deficiency and SVD entropy as measures of 'external' and 'internal' complexity respectively. Using bipartite ecological networks, we find that they all show a very high, almost maximal, physical complexity. Pollination networks, in particular, are more complex when compared to other types of interactions. In addition, we find that SVD entropy relates to other structural measures of complexity (nestedness, connectance, and spectral radius), but does not inform about the resilience of a network when using simulated extinction cascades, which has previously been reported for structural measures of complexity. We argue that SVD entropy provides a fundamentally more 'correct' measure of network complexity and should be added to the toolkit of descriptors of ecological networks moving forward.

DO MONETARY AGGREGATES BELONG IN A MONETARY MODEL? EVIDENCE FROM THE UK

Conventional monetary models focus on interest rates and omit monetary aggregatesfrom policy discussions. This paper examines whether augmenting the measure ofmonetary policy with monetary aggregates helps determine more robust links betweenpolicy and economic fluctuations. After constructing the Divisia money index for theUK, I employ structural vector autoregression to identify two different UK monetarypolicy regimes. Inclusion of this (correct) measure of money and disentangling themoney supply from demand resolve the price and liquidity puzzles. The results pointto the informational content embedded in monetary aggregates, suggesting theyshould be taken into account in evaluations of monetary policy.

The Value of a Statistical Life

The value of a statistical life (VSL) is the local tradeoff rate between fatality risk and money. When the tradeoff values are derived from choices in market contexts the VSL serves as both a measure of the population’s willingness to pay for risk reduction and the marginal cost of enhancing safety. Given its fundamental economic role, policy analysts have adopted the VSL as the economically correct measure of the benefit individuals receive from enhancements to their health and safety. Estimates of the VSL for the United States are around $10 million ($2017), and estimates for other countries are generally lower given the positive income elasticity of the VSL. Because of the prominence of mortality risk reductions as the justification for government policies the VSL is a crucial component of the benefit-cost analyses that are part of the regulatory process in the United States and other countries. The VSL is also foundationally related to the concepts of value of a statistical life year (VSLY) and value of a statistical injury (VSI), which also permeate the labor and health economics literatures. Thus, the same types of valuation approaches can be used to monetize non-fatal injuries and mortality risks that pose very small effects on life expectancy. In addition to formalizing the concept and measurement of the VSL and presenting representative estimates for the United States and other countries our Encyclopedia selection addresses the most important questions concerning the nuances that are of interest to researchers and policymakers.

IS LABOR'S LOSS CAPITAL'S GAIN? GROSS VERSUS NET LABOR SHARES

US labor share has been falling since the 1970s. I show that it has not fallen as much once items that do not add to capital, depreciation and production taxes, are netted out. Recent net labor share is within its historical range, whereas gross share is at its lowest level. This effect holds for other high-income economies. The overall picture is no longer one of unprecedented, globally declining labor share. Using gross share as a proxy for net share can give misleading results. US gross share and inequality are correlated, whereas net share, the correct measure, is not.

Arms Embargoes

This chapter considers arms embargoes. It first examines the idealized case for arms embargoes, which holds that they reduce the aggressors’ access to weapons and frustrate their goals, whilst distributing the costs fairly and avoiding doing harm. It then assesses the vehement, nonideal critique of arms embargoes in some of the academic literature. This highlights various problems such as that they are violated by sender states, that weapons are still obtained on the black market and through porous borders, and that they are used to avoid undertaking more effective action. The chapter challenges this nonideal critique and argues that the idealized account is in fact largely correct: arms embargoes do often work once we adopt the correct measure of effectiveness (what it calls ‘morally valuable effectiveness’). In doing so, this chapter provides a defence of the importance and meaning of effectiveness—the central factor on the Pragmatic Approach.