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ABSTRACTThe direct application of stochastic dominance criteria to portfolio selection problems has been thought impractical because an extremely large number of combinations of returns must be considered. This paper proposes and evaluates a rigorous statistical procedure for sampling the combinations of returns on candidate risky assets so that stochastic dominance criteria may be used directly in an efficient linear programming model for portfolio selection. The sampling scheme exploits the association of the return on each candidate stock with the return on a market index in a manner analogous to the Sharpe single‐index model, thereby eliminating the large number of combinations with probabilities close to or equalling zero. Portfolios computed by the proposed linear programming stochastic dominance model are compared with those computed by the single‐index quadratic programming model, using 180 months of recent data on a sample of NYSE common stocks.

This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of current and future primary surpluses. The remaining fraction of debt is backed by seigniorage revenues. When k = 1, there is no fiscal dominance, since the fiscal authority backs all debt and accommodates (independent) monetary policy, by adjusting current or future primary surpluses to satisfy the government's intertemporal budget constraint. If k = 0, all debt is backed by the monetary authority and there is complete fiscal dominance. A continuum of possibilities lies between these two polar cases. We numerically show that: 1) the degree of fiscal dominance, as measured by (1 k), is positively related to trend inflation, and 2) when prices are sticky, k has significant effects on the business cycle dynamics. The model is estimated using Bayesian techniques. Estimates of k imply a high degree of fiscal dominance in both Mexico and South Korea, but almost no fiscal dominance in Canada and the U.S. The country-specific estimates of the structural parameters are used in a second-order approximation of the equilibrium around the deterministic steady-state to evaluate the welfare costs of fiscal dominance. Results suggest significant welfare losses for countries with high degrees of fiscal dominance.

This presentation discusses recent case law concerning excessive pricing as an abuse of dominance under EU competition law, particularly as it relates to drug pricing. It also discusses the treatment of discount and rebate schemes under the competition rules and how these schemes can be designed to be compliant with the rules. ; Peer reviewed

Research on presidential power focuses almost exclusively on the modern era, while earlier presidents are said to have held office while congressional dominance was at its peak. In this article, I argue that nineteenth-century presidents wielded greater influence than commonly recognized due to their position as head of the executive branch. Using an original dataset on the county-level distribution of U.S. post offices from 1876 to 1896, I find consistent evidence that counties represented by a president's copartisans in the U.S. House received substantially more post offices than other counties, and that these advantages were especially large under divided government and in electorally important states. These results are robust across model specifications and when examining the Senate. The findings challenge key components of the congressional dominance and modern presidency theses, and have important implications for scholarship on interbranch relations, bureaucratic politics, and American political development.

So that the reader can better adjudge possible disagreements, we would like to begin by stating, at the very outset, the thesis argued in our book, Darwinism, Dominance, and Democracy (Somit and Peterson, 1997). As Peter Corning correctly reports in his commentary (2000), we contend that "the most important reason for the rarity of democracy is that evolution has endowed our species, as it has other primates, with a predisposition for hierarchically structured social and political systems" (1997: 1). In short, we argue that Homo sapiens has a "genetic bias" toward authoritarian political societies characterized by hierarchy, dominance, and submission.

In this paper, we study the relative performance of value versus growth strategies from the perspective of stochastic dominance. Using half century US data on value and growth stocks, we find no evidence against the widely documented fact that value stocks stochastically dominate growth stocks in all three orders of stochastic dominance relations over the full sample period as well as during economic boom (good) periods. However, we observe no significant stochastic dominance relation between value and growth stocks during recession (bad) periods, which is inconsistent with the risk-based predictions but is better explained by behavioural models.

Abstract  This paper identifies the extent to which James Buchanan's interpretation of Knut Wicksell's unanimity rule, as spelled out in the second essay in Finanztheoretische Untersuchungen (1896), has come to dominate the public economics literature despite competing with the interpretation offered by Richard Musgrave. A brief summary of the differing interpretations is offered. Citation analysis is used to examine the frequency with which Wicksell is cited and by whom. The sociology of the economics profession and avenues for the dissemination of ideas are examined to understand the dominance of Buchanan's particular interpretation and application of the unanimity rule.

Strategic Review ; The profound effects of the information revolution imply a need to reconsider many of the central tenets of military strategy, doctrine and organization. Indeed, dominance of the information spectrum may foster the emergence of a new paradigm of "control warfare" that will supersede its attrition- and maneuver-oriented predecessors. In the near term, this shift may allow a period in which smaller forces will prevail against much more numerous, thought less proficient, adversaries. Over time, though, the new strategies, doctrines and force postures will be imitated widely, leveling the field and allowing the reincorporation of older attritional and maneuver techniques.