Microeconomic Theory in Canada


UBC Seminars
      This Weeks Seminars
      Micro Theory Seminars
      Micro Lunchtime Seminars
      Search Seminars
Our Working Papers at RePEc
Top Items at RePEc
Search Local Working Paper Archive
Canadian Economic Theory Conference
UBC Summer Workshop in Economic Theory
A website containing information about micro theory in Canada. This contains a working paper repository, linked to RePEc. Also links to the Canadian Economic Theory Conference.

    No Current Announcements

Recent Papers

  • Decomposing Value Added Growth over Sectors into Explanatory Factors
    Diewert, W. Erwin, , erwin.diewert@ubc.ca
    Fox, Kevin J., , K.Fox@unsw.edu.au
    A decomposition of nominal value added growth over multiple sectors of an economy into explanatory factors is presented. The explanatory factors over a single sector are changes in the efficiency of the sector, growth of primary inputs, changes in sectoral output and input prices, technical progress and returns to scale. In order to implement the decomposition for a sector, an estimate of the sector’s cost constrained value added function for the two periods under consideration is required, which is taken to be the free disposal hull of past observations. The problems associated with aggregating over sectors are also considered. The methodology is illustrated using U.S. data for two sectors over the years 1960-2014.
    Creation Date: 2016-09-27   Revision Date: 2016-09-27
  • Alternative User Costs, Rates of Return and TFP Growth Rates for the US Nonfinancial Corporate and Noncorporate Business Sectors: 1960-2014
    Diewert, W. Erwin, , erwin.diewert@ubc.ca
    Fox, Kevin J., , K.Fox@unsw.edu.au
    Using the new Bureau of Economic Analysis (BEA) Integrated Macroeconomic Accounts as well as other BEA data, we construct a set of productivity accounts for two key sectors of the US economy: the Corporate Nonfinancial Sector (Sector 1) and the Noncorporate Nonfinancial Sector (Sector 2). Calculating user costs of capital based on, alternatively, ex post and predicted asset price inflation rates, we provide alternative estimates for capital services and Total Factor Productivity growth for the two sectors. Rates of return on assets employed are also reported for both sectors. Finally, the paper compares rates of return on assets employed and TFP growth rates when the land and inventory components are withdrawn from the asset base.
    Creation Date: 2016-06-30   Revision Date: 2016-06-30
  • A Decomposition of U.S. Business Sector TFP Growth into Technical Progress and Cost Efficiency Components
    Diewert, W. Erwin, , erwin.diewert@ubc.ca
    Fox, Kevin J., , K.Fox@unsw.edu.au
    One of the problems with index number methods for computing TFP growth is that during recessions, these methods show declines in TFP and this seems to imply that technical progress is negative during these periods. This is rather implausible since it implies technological regress; i.e., that that the production frontier has contracted. The paper works out a nonparametric method where one can decompose TFP growth into two components: a technical progress component (i.e., a shift in the production frontier over time) and an inefficiency component that is due to the fixity of capital and labour in the short run. The new decomposition is illustrated using the new Bureau of Economic Analysis (BEA) Integrated Macroeconomic Accounts which facilitated the construction of a set of productivity accounts for two key sectors of the US private business sector: the Corporate Nonfinancial Sector and the Noncorporate Nonfinancial Sector. The analysis sheds light on productivity growth slowdowns over the period 1960 to 2014.
    Creation Date: 2016-06-30   Revision Date: 2016-06-30
  • Kevin J. Fox Interview of W. Erwin Diewert
    Diewert, W. Erwin, , erwin.diewert@ubc.ca
    Fox, Kevin J., , K.Fox@unsw.edu.au
    In this paper, Fox interviews Diewert on his academic career. His contributions to the development of flexible functional forms, superlative index numbers, the difference approach to index number theory, the measurement of waste, the user cost of capital, the measurement of Total Factor Productivity, the use of generalized concavity in economics, the measurement of financial sector outputs and inputs and the comparative statics of maximizing behavior are covered. His work on the development of international manuals on the Consumer Price Index, the Producer Price Index, on Property Prices and on the International Comparison of Prices is also noted. His pioneering work on the nonparametric of preferences and of technologies is also mentioned.
    Creation Date: 2016-06-02   Revision Date: 2016-06-02
  • The User Cost of Nonrenewable Resources and Green Accounting
    A fundamental problem in green accounting is the valuation of non-renewable resources. We derive and compare two alternative user cost approaches: taking unit rent as user cost, as used by the World Bank, and traditional user cost. We show that while they seem quite different, they coincide when beginning of period expectations are realized. Practical considerations lead us to recommend the traditional user cost approach. We show the implications for the calculation of net income for an economy.
    Creation Date: 2016-04-06   Revision Date: 2016-04-06