An important function of the financial system is to serve as a key source of information that helps coordinate decentralized decision-making in various sectors of the economy. Households and investors use interest rates, futures prices and security prices in making their consumption-saving decisions and portfolio allocation decisions. Interest rates and prices provide important signals to managers of firms in their selection of investment projects and financings. This paper illustrates the role played by financial markets in providing information about the future volatility-that is, the degree of uncertainty-of economic variables such as interest rates, exchange rates, commodity prices, and stock, bond and other security prices. It has two basic goals: (1) to show the importance of volatility for all sorts of policy decisions in the private and public sectors of the economy; and (2) to show how ex ante estimates of future volatility can be extracted from the prices of securities.
The feasibility of the policy of perpetual debt financing, given a particular path for expenditures and taxation, has been questioned over the years. Sargent and Wallace [17] argue that such a policy is not feasible in the sense that the debt/GNP ratio will explode. McCallum [8] and Darby [2] argue that this policy will be feasible if and only if the long-run growth rate of GNP exceeds the after-tax real interest rate. This particular condition was derived under the assumption of Ricardian equivalence, where the growth rate of GNP and the interest rate are exogenously given, and are not affected by the path of debt. Miller and Sargent [9] and Weil [20] make the point that once the assumption of Ricardian equivalence is dropped, then simple comparisons of long-run growth rates and interest rates are not sufficient to determine stability. Tirole [19] and O'Connell and Zeldes [10] demonstrate in Diamond's [3] model, without Ricardian equivalence, that Ponzi games such as this are feasible if and only if the economy is dynamically inefficient without debt. All of these studies assume that the long-run growth rate of GNP is exogenously given. This assumption is particularly strong in the absence of Ricardian equivalence. In a separate literature, a new generation of equilibrium growth models has recently been developed with positive sustained growth in the long-run equilibrium. In these models, long-run growth is endogenously determined, rather than being imposed on the model as some exogenously given process [7; 11; 12; 14; 15].1 All of these models find some way of introducing increasing returns to scale into the neoclassical growth model and yet preserving the fact that it can be interpreted as a decentralized equilibrium. This paper considers the feasibility of perpetual debt financing in an economy where the growth rate of GNP is endogenously determined and is a function of debt levels. The model of endogenous growth presented here is a modified version of the one given in Prescott and Boyd [12]. This particular model is chosen for two reasons. First, agents live for finite lengths of time; so Ricardian equivalence will not hold, in general, in this model. Also, the production function is linear in the capital stock; as will become clear below, this implies that the equilibrium paths of the state variables can be characterized as first order linear difference equations.
This article examines the mechanics and attributes of concerted debt reduction agreements that offer creditors a choice between exit and relending options. The menu approach sets prices for different choices that implement a decentralized equilibrium. When banks can commit to choose from the menu and are not allowed to free ride, a menu can be designed that assures that the price paid for debt repurchased is equal to the marginal value of the debt claims. This can be achieved by taxing the gains that accrue to nonexiters with a request for new money. The equilibrium amount of debt reduction rises when the new money request is increased. The importance of banks' heterogeneity for menus to dominate simple concerted buybacks and the case in which debt reduction can be financed by loans from international financial institutions are discussed.
The authors study an economy where externalities provide an explicit role for intervention and technology shocks generate aggregate uncertainty. In laissez-faire there is too much unemployment. However, the authors show how to support the optimal allocation as a decentralized equilibrium using a self-financing linear employment subsidy. Generally, this subsidy is a function of economic conditions, and they characterize the way in which it varies with the shock. A special case of the authors' results indicates that a simple restriction on technology, homotheticity, implies the optimal subsidy is constant or independent of unemployment. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
The main purpose of this paper is to analyze problems of financing an old-age insurance when birth rates are low and population declines or fertility fluctuates with time. A government then searches for optimal policies to cope with such problems. A first criterion could be seen in the Pareto principle. But we all know that there is no way out of PAYG unless at least one generation has to pay for the transition. Therefore an optimal policy is concerned with intergenerational redistribution and optimal growth. In the absence of public pensions the economy will in the long run converge to a steady state which is not optimal in the sense of a golden rule. This dynamic "in"-efficiency results from the decentralized decision making by the consumers and the firms. If the PAYG system influences the savings ratio of the economy, public pensions can be seen as an instrument to implement a modified golden rule.
This paper focuses on the impacts of oil revenues on government fiscal policy when we have externality of human capital in economic. Therefore, we devised a fiscal policy capable to make the decentralized economy to achieve the first-best equilibrium in the Uzawa-Lucas model. The results of this paper show that optimal policy requires making use of a subsidy to investment in human and physical capital. Human capital can be financed by oil revenues and tax on labor income and physical capital can be financed by oil revenues. Government size dependent to oil revenues: When share of oil revenue in GDP or ratio of oil revenue in physical capital increase, government size increases and conversely. The results show the return on the physical capital must be free of taxes, but tax on labor income needed to balance the government budget in the steady state or in the transitional phase.
During the periods of high economic growth, outmigration from agricultural and mountain villages to urban areas increased rapidly. As a result overpopulation in the urban areas and depopulation in rural areas have become social problems.The rural areas play a very important role particularly in supplying food, conserving national land, cultivating the head sources of a stream and conserving the natural environment. However, it has become difficult to manage the community and these areas have not been able to play the abovementioned roles in depopulated areas. Therefore, the Japanese government has taken a number of measures to promote rural areas and alleviate some of the problems. In this paper the depopulation problem is considered from the viewpoint of local finance. Attention is paid particularly to the role of intergovernmental grants.Firstly, using a concept of local public goods, the inefficiency which results from free migration is considered. If in moving from one region to another a migrant does not account for the effect of his moving on the tax price of the public good of residents in the region he leaves or enters, Tiebout type of decentralized free market equilibria may not be Pareto-efficient. And if this externality is not internalized by centralized decision-making, the one region may be overpopulated and the other underpopulated. In the framework of a simple model the source of inefficiency of resource allocation is shown. Using the same model the analysis is extended to consider the role for intergovernmental grants in the face of such inefficiencies. And it is suggested that the central government may be justified in using a system of intergovernmental grants to overcome these inefficiencies.In order to explore the role of intergovernmental grants, the model is applied to Agatsuma district of Gunma Prefecture, a district which includes a number of the depopulated towns and villages. Firstly, settled accounts of revenue and expenditure from 1965 F. Y. to 1982 F. Y. are investigated. The percentage of transfer payments including grants from both the Japanese government and the government of Gunma Prefecture has become very large since the laws of the depopulated areas enforced. Secondly, principal expenditures are determined for each town and village. In each town expenditure on education and promotion for agriculture and construction account for a very large percentage of total expenditure. Finally, the level of components which constitutes residents' utility is examined. There is still a difference between the levels of many components in this district and those in the other region.From the above results it is shown that the situation is going to a desired direction by various measures, particularly intergovernmental grants. However, in some areas there is still a possibility of the situation deteriorating. Therefore, it is necessary to allocate intergovernmental grants carefully as well as encouraging each local government to work autonomously.
A recent development in economic science is the attempt to integrate monetary theory with the theory of general economic equilibrium. This work takes as its starting point the idea that money cannot have value in standard, general equilibrium models. In these, too much trade can be accomplished in centralized markets (see Robert Clower, 1969, 1971; Frank Hahn, 1973; or Neil Wallace, 1980). Thus, to decentralize or break up the structure, either exchange must be made costly or there must be restrictions on who can trade with whom, and thus such choicetheoretic models offer the intriguing possibility that real and monetary phenomena can be understood as intimately related. This paper continues in the relatively brief, choice-theoretic tradition, motivated by real and monetary phenomena associated economic development and growth: 1) To be noted first is Simon Kuznets' seminal work on national income (1971). In a cross-section study of fifty-seven countries in 1958, Kuznets shows that the share of the agricultural sector, including forestry, fishing, and hunting, in Gross Domestic Product is inversely correlated with Gross Domestic Product per capita. The share of the industrial sector, including transportation and communication, is closely and positively associated with per capita product. The share of the service sector tends to be positively but weakly associated with per capita product, but the share of banking, insurance, and real estate shows a striking rise as one shifts from lowto higher-income countries. Moreover, the evidence suggests that the ratio of industrial prices to agricultural prices is perhaps lower the higher is per capita income, though the evidence on relative prices for the service sector is inconsistent. Turning to long time-series for thirteen developed and four less developed countries, Kuznets finds dramatic evidence for a decline of the agricultural sector and a rise in the industrial sector with per capita income, at least in developed countries. Again, results for the service sector are mixed, but Canada, France, and the United States are positive exceptions. The share of a transport-communication subsector rises quite consistently. Turning next to shares of sectors in the labor force, Kuznets finds, both on a cross-sectional and secular basis, that all the above movements are at least mirrored and in many cases amplified. In particular, both components of the share of the service sector, services and commerce, rise substantially with Gross Domestic Product per capita. 2) To be noted second is the extensive work of Raymond Goldsmith on financial structure and financial intermediation. For the United States, Goldsmith (1958) finds that the activity of intermediaries, as measured by their share in national assets, in tangible assets, and in all claims, has shown a substantial rise from 1860 to 1952. Similarly, Goldsmith (1969) finds that the ratio of financial institutions' assets to Gross National Product rises substantially from 1860 to 1963 in both developed and less developed countries, including Switzerland, Great Britain, the United States, Japan, Argentina, and India. Related, the number of households with savings accounts, the number with life insurance policies, and the number with stock ownership expressed as percents of the population are all low for less developed countries relative to developed countries, and *Professor of Economics, Carnegie-Mellon University, Graduate School of Industrial Administration, Schenley Park, Pittsburgh, PA 15213. This paper was motivated by a conversation with Thomas Sargent and has been aided by helpful comments from Robert Barro, Robert E. Lucas, Jr., Dan Peled, Kenneth Singleton, and Neil Wallace. Financial support from the National Science Foundation, the Alfred P. Sloan Foundation, and the Peterkin Symposium on Foundations of Monetary Policy and Government Finance at Rice University, and research assistance from Pramerudee Townsend are all gratefully acknowledged. I alone assume full responsibility for any errors and for the views expressed here.
This article constructs a decentralized growth model with two production sectors, one having competitive firms and the other oligopolists. Since capitalized pure profits for the latter sector constitute an asset which household savings must finance, we show that imperfect competition can reduce steady-state national output through both a "static effect" on allocative efficiency and a "dynamic effect" on aggregative capital accumulation. After presenting a theoretical analysis, we generate several numerical examples. The latter suggest that the "dynamic effect" of monopoly may be significantly larger than the "static effect" in practice.
Some basic facts of public goods theory are presented in the primitive set-up of a collection of projects devoid of any linear structure. There is a single private good. Characterizations of Pareto optimal and core states in terms of valuation functions (i.e. supporting âpricesâ) are obtained. Voluntary financing schemes are discussed.
The literature on the deomposition of mathematical programs as models for organizational design and resource allocation in decentralized organizations is extensive. Although models differ in detail, all conceptualize the allocation problem as a multi-level managerial coordination procedure, involving local (divisional) and global (organization-wide) resources, in which informational automony is to be maintained. That is, coordination of resource usage by relatively autonomous divisions is to be effected in these models without any one agent in the organization accumulating complete knowledge of the technical resource transformations, payoff or cost coefficients and detailed plans that divisions utilize in converting resources to useful ends. Unfortunately there has been little empirical investigation into the implementational problems of applying these models in decentralized organizations. This study reports on an experiment with human subjects as decision makers in a simulated decentralized organization. The formulation of the overall resource-allocation problem as a linear program permitted two forms of coordination: price-directive in which transfer pricing is used to allocate resources, and resource-directive in which a rationing or budgeting approach is used. Both schemes can be shown to solve the overall organizational problem but impose different information, communication, and decision-making structures upon the subject managers. The experiment was designed to examine comparative managerial performance by the subjects, as central coordinating agents, under the alternative transfer pricing and budgeting schemes. Within each of these schemes two levels of decision time pressure were also introduced to examine its impact upon subject performance. The purpose of the investigation was to study the influence of organizational design (allocation scheme) and situational factors (time pressure) upon human decision-making under carefully controlled experimental conditions. The experimental setting was that of a decentralized university incorporating three subordinate college divisions and one coordinating agent, the president's office. The colleges were modeled as linear programs and the coordination function was assigned to the experimental subjects. In the price-directive scheme a subject assigned a transfer price to each of two global resources in each planning iteration. In the resource-directive scheme a subject directly allocated amounts of the two global resources to each of the colleges in each planning iteration. Consistent with decomposition theory, feedback to the subject in the form of aggregate resource demands (price-direction) or individual bids for higher resource allocations (resource-direction) was given to initiate a new planning iteration. The budgetary goal utilized by subjects was to maximize net dollar contribution from colleges to the university under prespecified quality-of-education constraints. After several planning iterations each subject finalized the resource allocations, terminating the experiment. The hypotheses were that resource-directive subjects would outperform price-directive subjects, that high decision time pressure would exacerbate decision making and that subjects would outperform decomposition algorithms in early iterations. Data from the experiment did not support the first two hypotheses; the third was confirmed. Aside from concluding that strategic factors (organizational design) and tactical factors (time pressure) strongly influence decision making behavior, several specific implications can be tentatively drawn. In similar settings transfer pricing schemes may be preferable to traditional budgeting schemes for planning resource allocations. Furthermore, the potential exists for profitable use of man-machine procedures for resource allocation involving decision support technology in the form of decomposition models to augment human decision heuristics. Finally, experimental methods offer a vehicle for addressing human factors and implementational considerations missing from current analytic models.
THE MAJOR INTEREST in the recent literature on economies has lain in the results about but finite economies that have been derived from the results proved for economies. It is thus important to find simple yet general proofs for economies. In this article we wish to provide a simple yet general proof of the existence of a competitive equilibrium in an infinite, nonstandard economy with production. The simplicity of our proof comes from the fact that nonstandard analysis can deal with large and small quantities very much as ordinary analysis deals with finite quantities.2 As a result, it is possible to follow very closely the proof of existence for an economy with a finite number of traders, such as that in G. Debreu's classic Theory of Value [6]. In fact, if one is willing to believe that nonstandard analysis permits us to manipulate quantities as claimed above, then no further knowledge of nonstandard analysis is required in order to follow the proof. As examples of the simplicity of nonstandard analysis, it may be pointed out that no analogue of the Fatou-Schmeidler lemma [7, p. 69], a fairly difficult mathematical theorem, is required; nor is it necessary to prove separately that preserves upper-semicontinuity, a proof that Aumann [1] has recently simplified, because integration in the nonstandard model consists of an infinite summation, hence an appeal to 1.9.4 of Debreu [6] suffices to establish this point. As our main objective is to obtain results about but finite economies, it is a welcome bonus to find out that no further effort is needed to obtain these desired theorems. This arises because of the following property of nonstandard analysis. Consider a sequence of real numbers {an} which tends to zero. If we could extend this sequence to the integers, it would surely be a necessary property of the values of {an} at the integers that they are all infinitely close to zero. What makes nonstandard analysis powerful is that the above line of reasoning can be reversed, so to speak. Suppose we have a sequence which
Linear programming models of specialized financial decision problems such as working capital management [21], short-term financing [22], or capital bug-geting [24] are deficient in that they may lead to decisions which are suboptimal with respect to the firm as a whole. Each model attacks a single decision problem and neglects its interaction with the other activities of the firm. On the other hand, a model which reflects these interdependences and interactions by including the various financing, investment, and operating decisions in a single model tends to become excessively large and inefficient to use. What is needed is a model that incorporates the efficiencies inherent in smaller, more specialized models which can be utilized on a decentralized basis and which can simultaneously lead to decisions that are optimal for the firm as a whole.
I. Economics.- 1. Introduction.- 1.1. Economic theory and economic environment.- 1.2. Private and public goods.- 1.3. The duality approach.- 1.4. Decentralized allocation mechanisms.- 2. Equilibrium in a system of economic relations.- 2.1. General equilibrium theory.- 2.2. Optimal allocations.- 2.3. An exchange economy.- 3. Production.- 3.1. Production sets and production multifunctions.- 3.2. Conditions in the production model.- 3.3. The price structure corresponding to a technology.- 3.4. Conditions in the price space.- 3.5. Preference orderings of inputs.- 3.6. Satiation for and dispensability of inputs.- 3.7. The demand- and the price-multifunction.- 4. Consumption and production of public goods.- 4.1. The consumption model.- 4.2. Private goods, public goods and externalities.- 4.3. Private goods, public goods and transaction costs.- 4.4. Social consumption and production.- 4.5. An economy with local public goods.- 5. Equilibrium in economies with private and public goods.- 5.1. The valuation representation of an economy.- 5.2. Equilibrium in an economy with public goods only.- 5.3. Equilibrium in an economy with private and public goods.- 5.4. The two-level price equilibrium.- 5.5. Financing the public sector.- 6. The organization of economic decisions.- 6.1. Allocation mechanisms.- 6.2. Centralization and decentralization.- 6.3. Procedures with a social preference ordering.- 6.4. Procedures with individual preference orderings.- 6.5. Multi-level organization.- 7. Extensions.- 7.1. Between values and resources.- 7.2. Theory of motion.- II. Mathematics.- 8. Basic mathematical notions and notations.- 8.1. Sets, relations and multifunctions.- 8.2. Continuity of multifunctions.- 8.3. Sets and algebraic operations in Rn.- 9. Sets and duality.- 9.1. Supporting hyperplanes and separating hyperplanes.- 9.2. Polar sets.- 9.3. Reflexive sets.- 9.4. Separation and intersection of sets.- 10. Multifunction and duality.- 10.1. Operations on multifunctions.- 10.2. Properties of multifunctions.- 10.3. Convex processes.- 10.4. Convex cone-interior processes.- 10.5. Convex star and convex aureole processes.- Summary.- References.
B. Balamurugan, T. Poongodi, M. R. Manu, S. Karthikeyan ¡ 5 authors
The moving image archive of the US Agency for International Development (USAID) includes a copy of the film The Double Day (1975), cataloged in the series Moving Images Relating to International Development Programs and Activities, 1979â1991, a collection of more than eight hundred titles âcreated to provide information on assistance programs supported by the Agency for International Development (AID).â1 Yet, The Double Day does not, in fact, directly depict or engage with any specific development or aid initiative. Instead, the filmâdirected by US-based Brazilian filmmaker Helena Solberg as part of the International Womenâs Film Project collective and described as âthe first Latin American feminist documentaryââexamines the gendered dynamics of paid and unpaid labor through the testimonies of women from Argentina, Bolivia, Venezuela, and Mexico.2 Its presence in the USAID archive is likely a consequence of its funding history, having received support from the Inter-American Foundation, a USAID-affiliated entity; the development agencies of Denmark, Norway, and Sweden; the United Nations Development Program; and US philanthropist Calvin Cafritz.3These transnational funding structures not only enabled the filmâs production but also determined its archival destination, which renders legible its place within the history of international development.4 The Double Dayâs institutional trajectory reflects the shifting configurations of aid, gender, and media during a historic moment when women were being repositioned at the center of what Arturo Escobar has described as developmentâs âregimes of visuality.â5 Especially relevant to The Double Dayâs production and exhibition was the international institutional framework of Women in Development (WID). Emerging in the early 1970s and culminating in United Nationsâ proclamation of 1975 as International Womenâs Year, WID emphasized womenâs participation in the global economy as both an index and mechanism of development. Indeed, The Double Day premiered at the World Conference of the International Womenâs Year, held in Mexico City.6 Within this context, the film forms part of a broader trajectory of media use by international organizations that intensified during the 1970sâas best exemplified by Media Habitat, a collection of 236 documentary films commissioned by the United Nations to represent urban and rural development initiatives for the 1976 Habitat Conference on Human Settlements in Vancouver. As a policy-shaping initiative, Media Habitat primarily featured films from the Global South intended not only to illustrate but also to help codify standardized audiovisual markers of âunderdevelopmentâ that determined access to the emerging global economic order and to international aid.7Framed in relation to these international institutions and their operations, The Double Day could similarly be considered âdevelopment mediaââexemplifying the type of nonfiction media produced and distributed outside of the commercial film circuits whose aspects and subcategories have been variously described in scholarship as nontheatrical, useful, sponsored, institutional, industrial, educational, or nonprofessional/amateur.8 Scholars working in this area have emphasized the institutional contexts of such mediaâs production and exhibition infrastructures as shaping its instrumentalized effects. From a feminist perspective, such an approach is crucial to grappling with the broader question of how âgender impacts [these worksâ] shape, content, and trajectories.â9 Yet we also argue that, taken in isolation, the institutional and infrastructural contexts are insufficient to account for the complex relationship between media and development, potentially not only limiting our understanding of the reach and impact of development but also distorting our interpretive conclusions. For example, to categorize The Double Day as âdevelopment mediaâ is to overlook the filmâs place within Solbergâs directorial oeuvre, as well as within the histories of both transnational womenâs filmmaking and radical Latin American documentary cinema to which it simultaneously belongs. Such exclusive framing is especially limiting given that women globally were disproportionately engaged in nonfiction production throughout the twentieth centuryâsometimes by political choice but more often due to structural exclusions from fiction filmmaking. Even in nonfiction historiography, however, institutional media has remained particularly marginal, reinforcing hierarchies that separate such works from the aesthetic and authorial frameworks through which film history has been constructed.10 This marginalization not only tends to erase womenâs contributions but also presumes a âweakâ or derivative authorship, rendering these films unworthy of the interpretive attention needed to apprehend their aesthetic and political complexity.11 The same dynamic is likely to structure assumptions about âdevelopment mediaâ as well.Categorizing The Double Day exclusively within this category would further prompt us to assume top-down institutional analyses that have been characteristic of both institutional media methodologies and the scholarship on development at large. This, in turn, would risk obscuring this filmâs radical Marxist approach to womenâs labor as well as its concrete contribution to activism and its attendant grassroot structures. In Mexico City, The Double Day became a catalyst for feminist solidarity in practice when one of the filmâs protagonists, Bolivian activist and trade unionist Domitila Barrios de Chungara, was invited to participate in the Tribune of Non-Governmental Organizations held alongside the official UN conference.12 There, Barrios de Chungara challenged Western feminist priorities by reframing the debate around labor, class, and imperialism, helping to articulate a shared Third World feminist agenda that significantly departed from the developmentalist vision of the United Nations and USAID.13 Seen through the lens of activist media, The Double Day helped forge transnational solidarity networks by enabling information exchange across the diverse voices that shaped its makingâfrom the women featured in the film to the activists who circulated itârevealing a considerably more dynamic interplay between institutional and grassroots or contingent media practices.Moreover, the filmâs Latin American contextâreflected in Solbergâs formation in Brazil as the only woman in Cinema Novo, its focus on women from across the region, and its premiere and key reception in Mexico Cityârequires grappling with the regional specificities of the very notion of development in its multiple iterations.14 Far from being an epistemological and political framework imposed solely by the Global North, both the practices of development and the theoretical foundations of developmentalism (understood as a broad and polysemic set of discourses) were shaped through the active participation of Latin American economists.15 Within this iteration, underdevelopment, as a constitutive notion of developmentalism, became central to a distinctly critical strand, which by the late 1960s became known as the dependency theory.16 This same approach is reflected in some of the best-known Latin American radical film manifestos of the time, arising precisely from the same milieus to which Solberg belonged.17These various considerations of the filmâs history illustrate the methodological challenges confronting feminist scholars seeking to assess the impact of development on media projects, theories, and practices. To disregard the developmentalist context of such works by emphasizing their political aesthetics and affects risks reproducing a romanticized narrative of heroic resistance (albeit from a feminist perspective). Yet to engage exclusively with their institutional and material infrastructures risks naturalizing developmentalismâs political and epistemological foundations at the expense of the goals and beliefs of the many women who participated in these projects. The contradictions and ambivalences that animate such histories call for feminist frameworks capable of holding both institutional complicity and radical possibility in view.This challenge resonates with ongoing debates about the politics of the archive and what Allyson Field has termed âthe practice of informed speculation.â18 As she reminds us, feminist, queer, and decolonial methodologies have long taught us to âpress at the limitsâ of the archive to âinoculate our scholarship against our evidenceâs afflictions.â19 The concern that the evidence we draw on in our analysis reproduces the very structures and blind spots of the dominant ideology and therefore shapes and delimits our interpretation becomes particularly urgent when engaging the developmentalist media corpus. Informed speculation offers an alternative by inviting the experimental, creative, and speculative rewriting of history, mobilizing the archive âin a project that runs counter to the original purpose, or the imperative to preserve, or the conditions that led to erasure.â20 Yet, as Field cautions, such speculative gestures must remain grounded in a deep and âintimate familiarity with the archiveâ that we are working with and against. Building on this imperative, we suggest that the developmentalist archive, in particular, demands expansion and critical reconsideration in ways that unsettle the very disciplinary frameworks through which it has been studied as well as the larger institutional contexts for such knowledge production.Our focus on The Double Day in the opening of this introduction thus foregrounds the entanglements of institutional and grassroots forces, local and international contexts, structural and interpersonal relations, and creative and economic factors that have shaped not only this film but the broader ecosystem of development media projectsâand their preservationâover time. Addressing such a constellation involves transgressing methodologically entrenched divisions between political economy and aesthetics, between material infrastructures and affective regimes; reckoning with divergent periodizations across film history and world economics; and situating these within the local specificities of womenâs movements and international institutional programs. It also demands attentiveness to the coexistence of multiple, and sometimes competing, understandings of developmentâeach historically, geographically, and ideologically situated.We imagine this special issue as an opening toward a critical dialogue, not only about how such an approach might be enacted in practice but also about the far-reaching ways development paradigms have shaped both our objects of study and the contours of the field itself. The decision to center institutionally sponsored films across all the essays in this issue is deliberate and enables us to highlight institutional critique as a vital methodological imperative within our analytical framework. Created within the frameworks of international organizations, state agencies, or NGOs, these filmsâ histories make legible the institutional logics that underwrite their production. Yet our critique does not stop at these specific entities. Rather, we argue for a broader interrogation of the political conditions and institutional infrastructures that shape media and knowledge production more generally. This includes contemporary corporations embedded in the digital platform economy, from streaming services to the rapid expansion of AI. Equally critical is a reflexive examination of academia itself, where departments of economics, political science, and centers for development have played a formative role in producing and legitimizing developmentalist theories and policy frameworks. While the humanities and arts have at times offered critical alternatives, they have also frequently mirrored and reinforced many of the same developmentalist assumptions. A feminist analysis of the nexus between development and media must therefore unsettle not only dominant archives but also the institutional and disciplinary foundations of our own scholarly practices.As scholars, we share the complex position of navigating the same tensions between institutional complicity and emancipatory aspiration as many of the media-makers whose work we study. Mirroring our subjects is also the transnational, collective mode of this special issueâs own production as it emerges from an ongoing informal working group we have sustained over several years. While relying on institutional and disciplinary affordancesâsuch as university funding for conferences or access to academic publishing platformsâwe have been working toward creating a community that exceeds, and often resists, the prevailing logics of our academic institutions. Our aim has been to create a space for shared inquiry and mutual support that pushes back against disciplinary siloing and technocratic neoliberal assessment modes of both labor and knowledge productionâand this certainly extends to our experience collaborating with the journal editors throughout the publication process. Our goal has been to examine both the persistence and variability of developmentalism, understood as what Gustavo Esteva calls a âpowerful but fragile semantic constellation,â as a conceptual formation that has historically inspired, legitimized, and mobilized media projects across Asia, Africa, and Latin America.21 And gendered biopolitics, from population control to gender mainstreaming, have remained integral to development policies and media practices, recurring across formats from institutional newsreels to film festivals.We share the conviction that, far beyond the history of nonfiction institutional media, development (as both a broad ideological project and a network of material and institutional practices) and developmentalism (as a set of discourses and theoretical models associated with development) have exerted a far-reaching influence on film and media cultures at large. As such, they must be treated as a major force in shaping global film and media systems and also the many ongoing assumptions behind their critical discourses. The discipline of communication studies was founded on modernization theory governed by Cold War goals of dissemination of Western liberal democracy around the world, while âan area studies framework allowed compartmentalizing Western and non-Western outcomes of technologies that were always claimed to be universal.â22 Despite critique from postcolonial and critical race studies, many of these frameworks have remained foundational for media theory.23 In historical scholarship, as we increasingly move beyond âmodernityâ as a dominant conceptual anchor, engaging with practices and discourses of development opens more precise analytical pathways. These film and mediaâs entanglements with the logics of and economic and the associated with as well as their conceptual underdevelopment, and impact in as diverse as and of media aesthetic and paradigms in film and film and funding are developmentalist assumptions to the they to underwrite the narrative and logics of and global media from the structure of the film to the cultures of argue that a examination of the historical entanglements between film and developmentalist aesthetics, modes of as well as infrastructures and critical the and that our contemporary media is a of the historical contours of development as a field of inquiry embedded within a of some of the methodologies by the featured in this special a of this complex history, to the larger at in media, development, and gender all its development a it as an of be with practices as divergent as and in In as we work on this the of the of the USAID the ideological that have the history of international the and of this on the global its a from development as a global practice and as an institutional and which over the has as a with its own media Yet or does not erase the historical impact of these the contradictions they have reflected and over the as the of development several crucial to the economic theories of development initiatives to and through the of the development an international policy framework at from the Global to the of the Global the by the political role of and the of the International the on was challenged by dependency theory and at development as global structural the neoliberal of the the Programs by the and World imposed and as conditions for and forms of assistance became known as the major markers for international development development has moving beyond economic to such as the Human Development and the Development and from international organizations such as the United Nations to a broader network of These frameworks increasingly of and liberal of and with what in many ways to various while the of the to developmentâs epistemological more scholarship has toward a of its and material the field has to a of and critical by and scholars, which development as a dynamic of conceptual and political to these the studies in this special issue call for sustained analysis in place of In we draw from a of and that in of of gender and to this special issue engage that and from Mexico to contemporary specific local historical of global distinctly feminist methodologies as well as attention to studies that this issue a in the global history of development on and documentary work in Mexico how early women infrastructures as of while US films an early of state and transnational on a outside the Global as the of developmentalist both the and markers of development media, its to the and Latin central grounded in archival also womenâs in transnational and the methodological of archives on study of the series to a a digital media not by but by women not as but as subjects and within circuits of neoliberal and the aesthetics and of how developmentâs has models of to contemporary neoliberal paradigms of and analysis how digital and gender and practices, discourses on and their of these essays the of some of the historical of developmentalist as the question of the role of the state within such on a notion of economic as a and the dominant of development that the state as the for and through infrastructural projects. This understanding of development was shared across both of the as well as in the Third The United and the increasingly mobilized international in the of the modes of international at the postcolonial of policy and ideological These programs were at the expansion of their and of while with the and decolonial of The conceptual between modernization and development that the Cold in of and hierarchies of that long and As an of postcolonial their role as of international aid concern about the of Western development projects. In alternative across the Global South that to structural between and through policies of and In many they were further the global structures. 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The debates the World and which international such as the United Nations and a critical historical for such primarily by postcolonial and of the for the of media and communication infrastructures in as to counter Western The a between and economic how systems of media and reinforced global hierarchies of and in an agenda that supported and alternative media infrastructures across postcolonial contexts, the framework gender as an analytical This âgender in the 1970s by of the Women in Development in relation to The Double its political critique of with its broader to center women in development policy through and This was also in of media, which was shaped by its international reach and audiovisual production and and and Yet, as WID institutional it also to the and of the womenâs development programs often by in These were by a of studies, and on and the to of womenâs presence and through the of their economic and In this on the filmmaker this history directly by the and of for women by the WID framework during the with and agencies the of and against Women in at the of the neoliberal turn, when institutional media often the only to access and support to projects. The an by this dynamic as of the from the Global South are to engage with the developmentalist assumptions funding models that their similarly the as a in developmentalist media history by the of and centers on the Film a between of and the attention toward the and labor by and work was foundational the of and the of audiovisual aid, as both a of development projects and a critical for their the in this issue argue for a with media, gender, and developmentalism as an field of that is and shaped by feminist and methodologies and that challenge the entanglements between academic knowledge production and and technocratic development And while methodological these dynamics at the structural the of feminist in media and cinema by this the very a
The behavioral assumptions which economists call âperfect competition,â imply that decentralized decision making under certain conditions leads to a social optimum. This is a central result of classical economic theory. The author discusses the result, and shows that it cannot be expected to hold when uncertainty is introduced. The point is illustrated by a simple example from business finance.
For a self-financing business enterprise (or for an underdeveloped economy subject to constraints on the availability of foreign investment funds), three theorems are presented. Each result is based upon the assumption that the firm's investment opportunities follow constant returns-to-scale, and are of the âpoint inputâstream outputâ type. Theorem 1 shows that if the enterprise is attempting to maximize a linear function of the cash dividends paid out, the optimization model cannot explain a readily observed phenomenon: both investment expenditures and also cash dividends at the same point in time. Theorems 2 and 3 explore the consequences of supposing that the maximand is a concave, nonlinear function of the cash dividends paid out, and that the optimal solution consists of positive investment expenditures over time. (The optimal policy may or may not call for positive dividends during each time period.) Then Theorem 2 shows that the optimal dual variable price ratios are determined uniquely by the set of investment opportunities available, and Theorem 3 shows that the optimal policy can be evaluated numerically through optimization of the original utility function subject to a specially constructed single linear equality constraint on the cash withdrawals. An economic decentralization interpretation is attached to this auxiliary maximization problem.
TN ORDER to achieve the benefits of decentralization in decision-making, many corporations have developed divisional organizations in which some or all of the separate divisions are virtually autonomous centers. This paper is concerned with the problem of pricing the goods and services that are exchanged between such divisions within a firm and with how these prices should be set in order to induce each division to act so as to maximize the profit of the firm as a whole. The problem is an important one, because the prices which are set on internal transfers affect the level of activity within divisions, the rate of return on investment by which each division is judged, and the total profit -that is achieved by.the firm as a whole. Two recent papers which have drawn attention to the crucial importance of transfer-price policies have also discussed alternative approaches to the problem.' The paper by Cook recommends the use of market-based prices, at least as an ideal, while Dean favors negotiated competitive prices. Such brief description does not, of course, do justice to either of the articles, both of which were more concerned with drawing attention to the importance of decentralization and transfer pricing than with rigorous determination of optimal transfer-price rules. The argument made in the present paper is that market price is the correct transfer price only where the commodity being transferred is produced in a competitive market, that is, competitive in the theoretical sense that no single producer considers himself large enough to influence price by his own output decision. If the market is imperfectly competitive, or where no market for the transferred commodity exists, the correct procedure is to transfer at marginal cost (given certain simplifying conditions) or at some price between marginal cost and market price in the most general case.2