Retrospective on the utility theory of von Neumann and Morgenstern

This article offers an exegesis of the passages in von Neumann and Morgenstern (1944, 1947, 1953) that discuss their conception of utility. It is occasioned by two factors. First, as we approach the semicentennial of the publication of Theory of Games and Economic Behavior, its immense impact on economic thought in the intervening years encourages serious reflection on its authors' ideas. Second, misleading statements about the theory continue to appear. The article will have accomplished its purpose if it helps others appreciate the genius and spirit of the theory of utility fashioned by John von Neumann and Oskar Morgenstern.     

A review of research on the happiness measures: A sixty second index of happiness and mental health

Eighteen years of research using the Happiness Measures (HM) is reviewed in relation to the general progress of well-being measurement efforts. The accumulated findings on this remarkably quick instrument, show good reliability, exceptional stability, and a record of convergent, construct, and discriminative validity unparalleled in the field. Because of this, the HM is offered as a potential touchstone of measurement consistency in a field which generally lacks it.     

On "being a prostitute"

The book "On Being a Prostitute" (Perkins & Bennett, 1985) is a valuable contribution to the sociology of deviance and sexual ideologies. However, comprehensive as it is, the book presents certain omissions and flaws, with implications for both is empirical data and theoretical underpinnings. In focusing on male (homoerotic) prostitution, and drawing upon Bennett's (1983) "Twenty-Ten" survey (which forms the main empirical base of that aspect of the book), I argue that certain categories of male prostitutes have been excluded. These omissions, I suggest, were necessary to allow Bennett's hypothesis that most male prostitution derives from economic necessity--a recurrent economic determinism reminiscent of Havelock Ellis (1906/1936), and somewhat contrary to a broader structural approach (see Mathews, 1983).     

Demographics: people and markets

The basics of demography are now basic to us business as well. Demographics combine demographic data with socioeconomic and geographic factors to help business and other managers know the market for their goods and services. This pamphlet explains market, product, and site analyses, discusses data sources and resources, and includes case studies involving major corporations. Post-war population trends have had an enormous impact on consumer and labor markets, bringing home to business the importance of taking advantage of demographic shifts. Advances in computerized access to data describing changes and increased consciousness of their economic significance has spurred the application of demographic knowledge by managers and the growth of the demographics information industry. The pamphlet describes the resources and methods of demographics including the creation and use of demographic data products.     

Ordinal utility models of decision making under uncertainty

This paper studies two models of rational behavior under uncertainty whose predictions are invariant under ordinal transformations of utility. The quantile utility model assumes that the agent maximizes some quantile of the distribution of utility. The utility mass model assumes maximization of the probability of obtaining an outcome whose utility is higher than some fixed critical value. Both models satisfy weak stochastic dominance. Lexicographic refinements satisfy strong dominance.The study of these utility models suggests a significant generalization of traditional ideas of riskiness and risk preference. We define one action to be riskier than another if the utility distribution of the latter crosses that of the former from below. The single crossing property is equivalent to a minmax spread of a random variable. With relative risk defined by the single crossing criterion, the risk preference of a quantile utility maximizer increases with the utility distribution quantile that he maximizes. The risk preference of a utility mass maximizer increases with his critical utility value.     

The dependency ratio and optimum population growth

This paper examines the effects of introducing a variable dependency ratio in Dasgupta's (1969) model. We consider a case in which the probability of dying as well as the rate of participation in the labor force change with age. It is shown that the inclusion of those realistic demographic features slows down the optimal rate of population growth and increases the rate of consumption. In spite of the reduction in the rate of population growth, this rate can still be positive. The sensitivity of the solutions to changes in the demographic parameters of the model is examined.     

The effects of the age and structure of population on family change]

The age structure of a population is one basic factor of population research. It is not only affected by birth, death, immigration, and marriage, but it also reflected in changes of family size. The article analyzed it from two aspects: (1) the age structure of population acts on the size and structure of the family. The younger the age structure, the larger the family size. Otherwise, it is the opposite. According to the 1982 census, 35.4% of the population was 0-14 years in rural areas, and average family size was 4.6; but in urban areas 26.0% of the population was 0-14 years and family size was 3.9. The family was characterized as a nuclear family as industrialization in economic development increased and the population aged. In the 1982 census, 64.7% were nuclear family and 6% were aging population in China. Three- generation families (or more) have decreased dramatically. The change of family size and structure is affected by change of internal family age structure. The younger population (0-14 years) is dependent and 90% live with their parents. The adult population (15-59) years are more affected by marriage, birth and social economic action. Families are established in this age period and give much more effect to fertility. The aging population (over 60) years is facing changes. They appear to be a "Defect" family because the wife or husband has passed away. They change from independent to dependent. 78.3% population over 60 years were dependent on children or social welfare, only 21.7% were independent according to the survey in Beijing Changping County.     

An analytical paradigm for the analysis of national inmigration patterns

This study proposes and demonstrates an analytic paradigm based upon a substantive categorization of a set of inmigration correlates. It exemplifies the notion of categorizing, analyzing according to the categorization, and subsequently discussing the phenomenon in more depth. The paradigm has 2 steps: 1) the variables are categorized according to the cells resulting from the intersection of a preferably small number of nominal dimensions and 2) the data are analyzed, directly anchored in the prior categorization. The data used is Israel's 1983 census macro-data gathered from the Central Bureau of Statistics for the Israeli towns with populations of at least 5000. The authors defined 6 variables as push variables and 4 as pull variables. Results of the regression employing push variables show that 4 variables accounting for 72% of inmigration were found to significantly predict inmigration: 1) unemployment, 2) percentage of Asians-Africans, 3) town size, and 4) religiosity. Within the pull classification, the regression analysis reveals that 2 of the 4 variables explain 31% of the inmigration variance: 1) educational level (26%) and 2) income (5%). The 1st regression analysis on the 2nd dimension shows that the percentage of Asian-African origin and town population size account for 32% of the immigration variance. In the 2nd regression analysis, unemployment explains 48% of the inmigration variance and educational level explains 8%. In the 3rd regression, only home crowding explains a significant amount of the immigration variance (19%). Results of a multiple regression analysis show that unemployment level, percentage of Asian-Africans, population size, and level of religiosity account for 72% of the inmigration variance. Thus, the characteristics of a town inmigrating (push variables) are demographic, economic, and social. However, the attractive features of a town are only economic. Among all economic factors, unemployment is primary. In addition, not only are both percentage of Asians-Africans and population size significantly deflective of inmigration, but each also plays a separate and independent role.     

Manpower export and economic development: evidence from the Philippines

The Philippines has actively pursued a policy of labor export with the expectation that it would relieve unemployment, augment the supply of skills, and relieve pressure on the balance of payments. It was also anticipated that the inflow of overseas workers' remittances would translate into increased investment, the sine qua non for economic development. However, recent evidence casts some doubt on the extent to which these goals have been achieved. Particularly in the areas of skill formation, there appears to be a significant discrepancy between anticipated and actual outcomes. Indeed, it appears that the labor export may reduce the supply of skills available since 1) many skilled and educated workers are taking jobs requiring skill levels lower than they possess, and 2) a large majority of returning workers do not want to take up employment in those occupations reliant on the skills they used abroad. There is conflicting evidence regarding the impact of labor export on Philippine industries. There is some anecdotal evidence that a few industries have suffered because of a loss of key workers. In general, however, it appears that unemployment is still quite significant in those occupations most heavily represented in labor export. Despite this observation, it may still be true that labor emigration is selective of only the best workers, implying a decline in quality of the work force and possibly productivity in certain industries. The export of professional, technical, and managerial workers is another issue. Unless it can be shown that these workers are in excess supply, it is not advisable to expand the number going abroad. Although their salaries may be higher, and hence their remittances greater, their loss can impose costs on indigenous industries well in excess of a any marginal gains. Remittances from overseas workers do constitute a relatively significant source of foreign exchange. However, the translation of remittances into investment has been restrained by the very low propensity of remittance recipients and returnees to undertake productive investment and by the diversion of remittances from formal banking channels into informal channels. Remittances which are being channeled through the formal banking sector constitute a potentially important source of loan funds, as well as providing a potential stimulus to indigenous industry.