Some quantitative concepts of value and utility from a utilitarian point of view

This paper clarifies and interprets some basic quantitative concepts of value, utility and utility function from a utilitarian point of view. First, I discuss the question as to whether value is objective or subjective. I hold that value is subjective and statistical in nature (although from the various subjective values of a certain object a norm can usually be obtained). Second, I emphasize the distinction between use value and exchange value in relation to utility. Third, I propose a law of diminishing incremental interest, which refers to the incremental (marginal) utility of money. Fourth, I identify the utility of money with the von Neumann-Morgenstern utility. Fifth, I question the necessity of the usual normalization of utility functions and the restricted linear transformation (and the consequent concept of strategic equivalence). Sixth, I discuss in detail the terminal values and utilities of a utility function from a philosophical rather than mathematical point of view, particularly the boundedness of a utility function and the magnitudes of V ₀ and U ₀. Finally, I conclude that, in order to be able to have interpersonal comparisons of utility, utility should have the same dimension as value rather than no dimension, and the normalization problem should be reconsidered in the light of terminal values and utilities.     

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.     

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.     

Immigration and the earnings of youth in the U.S.

"This article reports findings that have emerged from an effort made at statistically measuring the effects of immigration on the earnings of U.S.-born youth. The presence of immigrants arriving before 1965 has a positive impact on youth earnings. Recently arrived immigrants impact negatively, however. These results are consistent with recent findings that the skill level of immigrants arriving within the last two decades is lower relative to that of immigrants arriving earlier. The results also show that the negative effects diminish as the youth ages, reflecting skill acquisition and job mobility of the young worker into jobs less vulnerable to competition from immigrant workers."     

Problems and possibilities of development work among tribals: a participatory evaluation of a voluntary agency in India

Mandal, a church-related non-governmental voluntary agency operating in north-west India's Nasik district since 1966 was evaluated for performance in promoting self-sustaining economic growth and socio- political awareness in its beneficiaries. The research design incorporated 2 questions, the extent to which Mandal had used the integrated approach, and the extent to which it promoted structural change in the village. 2 levels of analysis were used: random samples of 315 individuals (163 beneficiaries and 152 non-beneficiaries) and data from the takatu's office for 20 involved villages and 8 control villages. Quantitative data were sought by examining files and doing closed interviews, and qualitative data were collected by observation and open-ended interviews. The variables used in the analysis were educational level, class category, caste, agricultural investment, family net income, individual consciousness and social participation. It was concluded that on the individual level some positive impact was discernible in terms of family income and agricultural investment. At the village level no quantitative improvement was measurable, but the effect of Mandal was symbolic in that it sets an example for social change. The Mandal has acquired a health, non-partisan secular image for social action.     

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.