摘要:

At the time of the Continental Illinois National Bank insolvency, bank regulators considered some commercial banks “too large to fail” (TLTF) and were reluctant both to legally fail such banks and to impose pro rata losses on any of the uninsured creditors of these insolvent banks and their parent holding companies. This policy was introduced due to widespread fears that large bank failures would set off a domino effect bringing down other banks and possibly even the macroeconomy as it did during the 1930s. Also, because these banks are considered special in that they provide money and credit to their communities, many feared that their failure could reduce greatly the availability of these services.This paper analyzes the validity of these fears by examining both theory and the historical record. It concludes that neither theory nor history provides strong support for either fear. In addition, the paper finds that the costs of regulatory forbearance granted to insolvent banks and their creditors greatly exceed the alleged benefits. It also reviews how policy makers apply the TLTF principle in practice. The paper concludes that the policy has been modified progressively over time so that some large banks now are declared legally insolvent and all creditors of bank holding companies—and some uninsured creditors of the banks themselves—incur losses. One may reasonably expect that TLTF will be modified further as the large societal costs become more evident to the public and regulator

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00298.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

Violent crime contributes to depleting the supply of marriageable males in minority communities. Young black males die disproportionately due to homicides. Also, a disproportionate number of young black males are in prisons and jails. Consequently, they are withdrawn from the productive labor force and become less desirable mates and fathers. They become “marginalized.” Black families, in turn, are deprived of productive male heads. This paper, using Current Population Survey data for 1985, demonstrates that a direct effect of reducing the supply of marriageable mates is to increase the proportion of black families headed by females. The impacts of homicide and incarceration far exceed those of public welfare in influencing changing black family structu

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00299.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

This paper develops and implements a neoclassical model of fiscal policy. The paper's main empirical hypothesis is that government non‐military investment spending is more expansionary than is either government consumption or military investment. The paper utilizes annual data to support the hypothesis. It finds that output “multipliers” for government non‐military investment significantly exceed unity while multipliers for government consumption and military investment lie below unity. The paper also finds that public sector deficits—both actual and cyclically adjusted—contain minor explanatory power for output when one controls for the effects of non‐milita

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00300.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

This paper examines trends in military recruiting during the 1980s and estimates the contribution of various policy tools—pay, recruiters, advertising, and educational benefits—to military recruiting. The paper finds that using recruiters and advertising, for the Army at least, is the most cost‐effective means of varying high‐quality enlistments. The costs of educational benefits are more difficult to determine, but the paper finds that educational benefits have a significant effect on high‐quality enlistments—particularly those for the Army.The paper also examines the relationships among the different services' recruiting programs. The evidence is somewhat mixed but generally supports the view that positive spillovers exist among the services' recruiti

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00301.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

Army recruiting is sensitive to fluctuations in labor market conditions. Declines in unemployment over the past several years have led to decreases in the number and quality of enlistments. The Army has several discretionary policy tools that it can use to reduce cyclical variations in recruiting. However, budget constraints and other external requirements often limit the flexibility of these tools. More recently, the recruiting outlook turned favorable for the Army, primarily due to planned reductions in end strength. These reductions imply a 20 to 30 percent drop in total enlistment requirements over the next several years compared with 1989 levels. The danger is that dramatic budget cuts will impair the manpower quality goals of recruiting. Recruiting cuts alone should not be the only means of meeting end‐strength reductions to 199

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00302.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

Water utilities tend not to use prices to encourage conservation. Many utilities still use declining block rates. Even after switching to ascending blocks, however, some have hookup charges that amount to fixed charges of more than half the cost of water. Converting the hookup charge from aflat amount to an amount based on actual water use could lead to substantial savings in usage and cost. In Denver, where a hookup charge now is equivalent to $400 per year added to one's mortgage, the savings in usage that would result from a usage‐based hookup charge are estimated at between 9 and 32 percent of total use. A usage‐based hookup charge would substitute for a proposed dam costing more than $500 million. Structuring prices to control usage would be far simpler than implementing the conservation programs now being proposed in some water utilities, would result in lower water costs for anyone desiring lower costs, and would allow individuals to choose whether to conserve but require them to pay the costs of their decis

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00303.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

Water development in the western states has passed through an “expansive” phase and now is entering an “intensive” phase. Large untapped sources of high‐quality fresh water no longer are available. Using current supplies more efficiently and reallocating water among uses will be necessary so as to sustain economic growth. Water conservation, particularly in the agricultural sector, will be an important part of decreasing both the quantity problems and the quality problems that have developed. This paper discusses alternative policies for gaining these

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00304.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

This paper reports the present value of groundwater use under alternative institutional structures for the eastern portion of California's San Joaquin Valley. The Gisser‐Sanchez model, with data from the California Department of Water Resources, produced these results. The paper, through the use of an optimal control model, shows that private property rights outperform common property rights as an institutional guide to groundwater use. Furthermore, the paper shows that adjudicating groundwater rights under claim of adverse possession gives rise to a discounted flow of future income which, when compared with that of common property, gives the incentive to adjudicate groundwater right

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00305.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

Consequences of consuming petroleum in transportation—e.g., air pollution, global warming, energy insecurity—have stimulated interest in alternative automotive fuels and in vehicles that can use multiple fuels and combinations of fuels. Consumer behavior in choosing motor fuels for flexible‐ or dual‐fuel vehicles will likely be a key factor in creating and maintaining stable markets for new fuels. This paper explores the implications of recent studies on the sensitivity of choice of gasoline grade to price. It analyzes natural gas vehicle owners' refueling behavior, based on a survey of natural gas vehicles in Canada. The paper uses statistical models to estimate the importance of performance, range, refueling convenience, and other factors in the fuel choice decision. Choice of gasoline grade is highly sensitive to fuel prices. The cost advantage of natural gas also is of paramount importance for natural gas users. However, refueling convenience is essential for overall satisfaction and is a major factor in the frequency of natural gas use. Alternative fuels not only must be cost competitive with gasoline but initially will require a cost advantage so as to overcome range limitations and refueling inconv

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00306.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY

摘要:

Alternative fuel advocates recommend substituting methanol for gasoline since methanol cars potentially pollute less. However, because the substitution is costly and the reduction of ozone precursor emissions is relatively small, using methanol raises questions about cost effectiveness.This study demonstrates that the air quality benefits would be very expensive: The cost effectiveness usually would exceed tens or hundreds of thousands of dollars per ton of reduced volatile organic compound emissions. Only if all the cost and emissions assumptions lined up favorably would methanol substitution be desirable. Even then, it would be attractive only if the energy‐adjusted price difference between gasoline and methanol were just a few cents a gallo

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1990.tb00307.x

出版商:Blackwell Publishing Ltd    

年代:1990

数据来源: WILEY