Roger Frantz | San Diego State University-California State University (original) (raw)
Papers by Roger Frantz
Harvey Leibenstein was one of the pre-Kahneman and Tversky behavioral economists who questioned t... more Harvey Leibenstein was one of the pre-Kahneman and Tversky behavioral economists who questioned the assumptions of complete rationality, maximizing behavior, and independent decision making. He is most known for X-Efficiency (XE) theory. In the then conventional wisdom the only form of inefficiency was allocative (in)efficiency, in which markets could be inefficient due to market power but firms were always efficient, that is producing on their production and cost frontiers. Leibenstein questioned whether firms were always efficient, and since inefficient firms would constitute an anomaly, Leibenstein called it X – for unknown – efficiency. In this paper the nature and causes of XE are discussed. This is followed by a review of only a few of the over 200 empirical studies on XE. The average level of XE for firms in many industries and in every region of the world is .8. This means that on average firms are producing 20% off their frontiers. This is followed by some implications ...
Irving Fisher denied the existence of homo economicus, recognized the irrational elements in the ... more Irving Fisher denied the existence of homo economicus, recognized the irrational elements in the determination of impatience (rate of interest), and that people lack perfect self-control, lack perfect foresight, and have bad habits. He also wrote about health, and psychic phenomena. Fisher was also a neoclassical-general equilibrium analyst with “mad” math skills. John Tomer had all of this in common with Fisher, except the neoclassical general equilibrium analyst with mad math skills. John was a follower of Buddhism. Fisher wrote many things which complement what John said about Buddhism, without ever mentioning Buddhism. This paper will explore the relationship between Fisher and Tomer. JEL Classification: B1; B5
In this paper I discuss 15 writers, whose writings included topics or concepts which are now part... more In this paper I discuss 15 writers, whose writings included topics or concepts which are now part of (new) behavioral economics (NBE). These writers may not have taken up one page or what became part of (N)BE, or it took up several pages. They often did not use the terms used today by NBE. But, the substance is similar, even identical. The writers wrote between the mid-18th century (Adam Smith, to the 20th century (Irving Fisher, and Frank Knight, to mention only two). JEL Classification: B1; B2; B3
Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, ... more Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, cognitive science, artificial intelligence, decision theory, and organization theory. Si-monÕs work was motivated by the belief that neither the human mind, human thinking and decision making, nor human creativity need be mysterious. It was after he helped create ''thinking'' machines that Simon came to understand human intuition as subconscious pattern recognition. In doing so he showed that intuition need not be associated with magic and mysticism, and that it is complementary with analytical thinking. This paper will show how the overlaps in his work and especially his work on AI affected his view towards intuition.
Book details / (1) John Tomer. Advanced Introduction to Behavioral Economics (BE). Edward Elgar, ... more Book details / (1) John Tomer. Advanced Introduction to Behavioral Economics (BE). Edward Elgar, 2017. ISBN (Paperback): 978-1- 78471-993-7. / (2) Michelle Baddeley. Behavioural Economics. A Very Short Introduction. Oxford University Press, 2017. ISBN: 978-19-875499-2.
X-efficiency is a non-allocative form of efficiency first introduced by Harvey Leibenstein in 196... more X-efficiency is a non-allocative form of efficiency first introduced by Harvey Leibenstein in 1966. The degree of X-efficiency is measured by the deviation of a firm’s costs of production from the technologically minimum costs of production. X-efficiency theory predicts that firms will produce closer to their cost function when they face pressure to do so. In this paper we review studies of X-efficiency among Chinese banks. These studies include the effect of ownership form, for example, state-owned banks versus privately-owned banks, on costs of production. China’s entrance into the WTO, the effect of a bank issuing an IPO and the effect of bank size are other topics of empirical studies reviewed in this paper. In addition some studies on Hong Kong banks before 1997 are included.
VOLUME 7 | ISSUE 5 + 6 2020 “And how do we keep our balance? That I can tell you in one word! Tra... more VOLUME 7 | ISSUE 5 + 6 2020 “And how do we keep our balance? That I can tell you in one word! Tradition! Because of our traditions, we’ve kept our balance for many, many years ... we have traditions for everything ... You may ask, how did this tradition get started? I’ll tell you. I don’t know. But it’s a tradition. And because of our traditions, every one of us knows who he is and what God expects him to do”
The Antitrust Bulletin, 2015
Journal of Behavioral Economics, 1982
American Journal of Economics and Sociology, 1987
ABSTRACT . Publicly-regulated firms are sheltered from competition and are inefficient. When anal... more ABSTRACT . Publicly-regulated firms are sheltered from competition and are inefficient. When analyzed within the theoretical framework of X-inefficiency, it is discovered that they are subsidized by a quasi excise tax and result in deadweight losses to society. When the losses and X-inefficiency are understood as rent, an appropriate public policy is to levy a tax on these firms. A tax would raise productivity and increase tax revenues without reducing output.
Journal of Economic Psychology, 2003
Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, ... more Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, cognitive science, artificial intelligence, decision theory, and organization theory. Si-monÕs work was motivated by the belief that neither the human mind, human thinking and decision making, nor human creativity need be mysterious. It was after he helped create ''thinking'' machines that Simon came to understand human intuition as subconscious pattern recognition. In doing so he showed that intuition need not be associated with magic and mysticism, and that it is complementary with analytical thinking. This paper will show how the overlaps in his work and especially his work on AI affected his view towards intuition.
The development of economics. Contributions of schools thought and individual writers are examine... more The development of economics. Contributions of schools thought and individual writers are examined with regard to their influence on economic theory and policy.
The Journal of Socio-Economics, 2004
Behavioral economics is now receiving greater acceptance in the economics profession. One illustr... more Behavioral economics is now receiving greater acceptance in the economics profession. One illustration of this acceptance is the Nobel Prize awarded to George Akerloff in 2001. Akerloff's work included issues of rationality, work norms, and asymmetric information in both more and less developed countries. Leibenstein was one of the first economists in recent decades to explore behavioral economics. This was accomplished through his development of X-efficiency theory, but not exclusively through X-efficiency theory. This paper will show similarities in the work done by Akerloff and Leibenstein, and cite examples of how Akerloff extended some of Leibenstein's work, leading to Akerloff's much deserved Nobel Prize.
… : Foundations and Developments. Armonk, New York: …, 2006
Journal of Post Keynesian Economics, 1988
Journal of Post Keynesian Economics, 1980
X-Efficiency: Theory, Evidence and Applications, 1997
Hayek and Behavioral Economics, 2013
Harvey Leibenstein was one of the pre-Kahneman and Tversky behavioral economists who questioned t... more Harvey Leibenstein was one of the pre-Kahneman and Tversky behavioral economists who questioned the assumptions of complete rationality, maximizing behavior, and independent decision making. He is most known for X-Efficiency (XE) theory. In the then conventional wisdom the only form of inefficiency was allocative (in)efficiency, in which markets could be inefficient due to market power but firms were always efficient, that is producing on their production and cost frontiers. Leibenstein questioned whether firms were always efficient, and since inefficient firms would constitute an anomaly, Leibenstein called it X – for unknown – efficiency. In this paper the nature and causes of XE are discussed. This is followed by a review of only a few of the over 200 empirical studies on XE. The average level of XE for firms in many industries and in every region of the world is .8. This means that on average firms are producing 20% off their frontiers. This is followed by some implications ...
Irving Fisher denied the existence of homo economicus, recognized the irrational elements in the ... more Irving Fisher denied the existence of homo economicus, recognized the irrational elements in the determination of impatience (rate of interest), and that people lack perfect self-control, lack perfect foresight, and have bad habits. He also wrote about health, and psychic phenomena. Fisher was also a neoclassical-general equilibrium analyst with “mad” math skills. John Tomer had all of this in common with Fisher, except the neoclassical general equilibrium analyst with mad math skills. John was a follower of Buddhism. Fisher wrote many things which complement what John said about Buddhism, without ever mentioning Buddhism. This paper will explore the relationship between Fisher and Tomer. JEL Classification: B1; B5
In this paper I discuss 15 writers, whose writings included topics or concepts which are now part... more In this paper I discuss 15 writers, whose writings included topics or concepts which are now part of (new) behavioral economics (NBE). These writers may not have taken up one page or what became part of (N)BE, or it took up several pages. They often did not use the terms used today by NBE. But, the substance is similar, even identical. The writers wrote between the mid-18th century (Adam Smith, to the 20th century (Irving Fisher, and Frank Knight, to mention only two). JEL Classification: B1; B2; B3
Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, ... more Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, cognitive science, artificial intelligence, decision theory, and organization theory. Si-monÕs work was motivated by the belief that neither the human mind, human thinking and decision making, nor human creativity need be mysterious. It was after he helped create ''thinking'' machines that Simon came to understand human intuition as subconscious pattern recognition. In doing so he showed that intuition need not be associated with magic and mysticism, and that it is complementary with analytical thinking. This paper will show how the overlaps in his work and especially his work on AI affected his view towards intuition.
Book details / (1) John Tomer. Advanced Introduction to Behavioral Economics (BE). Edward Elgar, ... more Book details / (1) John Tomer. Advanced Introduction to Behavioral Economics (BE). Edward Elgar, 2017. ISBN (Paperback): 978-1- 78471-993-7. / (2) Michelle Baddeley. Behavioural Economics. A Very Short Introduction. Oxford University Press, 2017. ISBN: 978-19-875499-2.
X-efficiency is a non-allocative form of efficiency first introduced by Harvey Leibenstein in 196... more X-efficiency is a non-allocative form of efficiency first introduced by Harvey Leibenstein in 1966. The degree of X-efficiency is measured by the deviation of a firm’s costs of production from the technologically minimum costs of production. X-efficiency theory predicts that firms will produce closer to their cost function when they face pressure to do so. In this paper we review studies of X-efficiency among Chinese banks. These studies include the effect of ownership form, for example, state-owned banks versus privately-owned banks, on costs of production. China’s entrance into the WTO, the effect of a bank issuing an IPO and the effect of bank size are other topics of empirical studies reviewed in this paper. In addition some studies on Hong Kong banks before 1997 are included.
VOLUME 7 | ISSUE 5 + 6 2020 “And how do we keep our balance? That I can tell you in one word! Tra... more VOLUME 7 | ISSUE 5 + 6 2020 “And how do we keep our balance? That I can tell you in one word! Tradition! Because of our traditions, we’ve kept our balance for many, many years ... we have traditions for everything ... You may ask, how did this tradition get started? I’ll tell you. I don’t know. But it’s a tradition. And because of our traditions, every one of us knows who he is and what God expects him to do”
The Antitrust Bulletin, 2015
Journal of Behavioral Economics, 1982
American Journal of Economics and Sociology, 1987
ABSTRACT . Publicly-regulated firms are sheltered from competition and are inefficient. When anal... more ABSTRACT . Publicly-regulated firms are sheltered from competition and are inefficient. When analyzed within the theoretical framework of X-inefficiency, it is discovered that they are subsidized by a quasi excise tax and result in deadweight losses to society. When the losses and X-inefficiency are understood as rent, an appropriate public policy is to levy a tax on these firms. A tax would raise productivity and increase tax revenues without reducing output.
Journal of Economic Psychology, 2003
Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, ... more Herbert Simon made overlapping substantive contributions to the fields of economics, psychology, cognitive science, artificial intelligence, decision theory, and organization theory. Si-monÕs work was motivated by the belief that neither the human mind, human thinking and decision making, nor human creativity need be mysterious. It was after he helped create ''thinking'' machines that Simon came to understand human intuition as subconscious pattern recognition. In doing so he showed that intuition need not be associated with magic and mysticism, and that it is complementary with analytical thinking. This paper will show how the overlaps in his work and especially his work on AI affected his view towards intuition.
The development of economics. Contributions of schools thought and individual writers are examine... more The development of economics. Contributions of schools thought and individual writers are examined with regard to their influence on economic theory and policy.
The Journal of Socio-Economics, 2004
Behavioral economics is now receiving greater acceptance in the economics profession. One illustr... more Behavioral economics is now receiving greater acceptance in the economics profession. One illustration of this acceptance is the Nobel Prize awarded to George Akerloff in 2001. Akerloff's work included issues of rationality, work norms, and asymmetric information in both more and less developed countries. Leibenstein was one of the first economists in recent decades to explore behavioral economics. This was accomplished through his development of X-efficiency theory, but not exclusively through X-efficiency theory. This paper will show similarities in the work done by Akerloff and Leibenstein, and cite examples of how Akerloff extended some of Leibenstein's work, leading to Akerloff's much deserved Nobel Prize.
… : Foundations and Developments. Armonk, New York: …, 2006
Journal of Post Keynesian Economics, 1988
Journal of Post Keynesian Economics, 1980
X-Efficiency: Theory, Evidence and Applications, 1997
Hayek and Behavioral Economics, 2013