Essays in applied microeconomic theory.
Item
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Title
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Essays in applied microeconomic theory.
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Identifier
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AAI9108184
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identifier
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9108184
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Creator
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Tutuncu, Mehmet Mumtaz.
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Contributor
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Adviser: Ronald W. Anderson
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Date
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1990
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, General | Economics, Theory | Economics, Finance
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Abstract
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Essay I: Valuation of the Shares of a Labor-Managed Firm. Theoretically, labor-managed firms must exhibit perverse behavior. But if they sell their shares perversity may disappear. We characterize the share prices and the conditions under which perversity will disappear. This is not necessarily good news for the labor management because the firm may be indifferent between selling its shares and hiring nonmember workers who receive the going wage rate.;Essay II: Price Uncertainty, Heterogeneous Workers, and Effects of an Internal Futures Market in a Labor-Managed Enterprise. We consider an enterprise managed by workers with heterogenous preferences towards risk. First we examine the effects of the existence of an internal futures market on the characterization of Pareto-optimal distributions of the income generated in the firm. We also compare utility levels of the workers in cases in which the workers have either equal shares of the actual value of the output, or unequal shares which are determined in a Nash game played among the workers.;Essay III: The Simple Price Dynamics of Portfolio Insurance and Program Trading (with Prof. Ronald W. Anderson). We construct a model of the stock market consisting of investors, portfolio insurers, arbitrageurs, and market makers who all buy and sell stocks and futures. In order to concentrate on the short-run price dynamics resulting from interactions between markets for stocks and futures, price adjustment functions with finite speeds of adjustment are adopted. Stability properties of the system are investigated. The basic finding is that the equilibrium of the system tends to be unstable if the intensity of portfolio insurance exceeds a certain level, but the prices converge to limit cycles.;Essay IV: Optimal Worker Portfolios: Pensions, ESOPs and Anti-ESOPs (with Prof. Jeffrey S. Zax). We compare several pension plans with respect to the lifetime utility levels they yield to the workers. Legal and institutional restrictions on asset holdings of workers in the pensions and Employee Stock Ownership Plans are used to obtain theoretical characterizations of pensions and ESOPs. A continuous-time model of intertemporal asset allocation is used to compare utility levels of workers under a large number of parameter sets describing the expected return and variance of risky assets.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
