摘要:

In 1981 the Bank of Italy was freed from the obligation to purchase the unsold public debt at the Treasury auctions. Since then, the Bank of Italy has reduced debt monetization. The paper seeks to explain this policy shift by analyzing a game between the monetary and fiscal authorities. The fiscal authority is imperfectly informed about the central bank preferences. An equilibrium exists in which the central bank does not monetize, so as to establish a reputation of being independent. Monetization raises fiscal deficits and may raise public debt relative to a non‐accommodative polic

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00734.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

We examine the linkage between Federal deficits and money growth by allowing the Fed's response to any given deficit to vary systematically according to how the deficit is generated and the Party affiliation of the current president. In equations for Ml and monetary base growth, the structural deficit is consistently significant and invariant across political changes, while the cyclical component of the deficit (or a direct measure of the business cycle) is significant only during the tenure of Democratic presidents.

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00735.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

In their analysis of corporate pension plans, financial economists typically invoke the simplest and the most tractable model of the labor market. This is the spot model, where the worker's cash wage plus accruing pension benefit equals the value of his marginal product in each and every period. This paper provides evidence against the empirical validity of the spot model, and uses provisions common to most pension plans to do so. These findings are relevant to the appropriate measurement of pension liabilities and thus to the present controversy surrounding the termination of overfunded plans and the recapture of surplus assets by the employer. The existence of incentive effects, ruled out by the spot model, may help to unravel certain well known “puzzles,” such as the failure of employers to fully fund their plans in spite of the tax advantages of doing

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00736.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper examines the parallelism which exists between demand behavior determined from the sale of a private good in an actual “real world” field setting and in a laboratory auction setting. The demand behavior observed in the two settings is significantly the same leading to the corroboration of the thesis that there is often correspondence between laboratory and real world behav

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00737.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper explores the role of nominal rate of return uncertainty and inflation hedging as potentially important factors explaining the pattern of money demand. Using U.S. quarterly data over the period 1952.2–1982.4, it is shown that in conformity with theoretical considerations the nominal rate of return uncertainty variable tends to have a significantly positive effect and the inflation hedging variable (the covariance between nominal rate of return and inflation rate) a significantly negative effect on the demand for money. These findings seem to be reasonably robust in terms of various definitions of income, interest rates, inflation rate and money variables as well as in terms of different estimation method

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00738.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper presents a dynamic computational general equilibrium model in which expectations regarding future prices can be varied systematically. The model is employed to evaluate how expectations influence the effect of long‐run tax policy changes. Under policies (like a consumption tax) that reduce rates of return over time, individuals with perfect foresight save less than individuals with myopic beliefs. This is because consumers with foresight are better able to anticipate the lower returns. Lower saving means that existing distortions due to capital taxes are not offset as much, so that welfare gains are smaller under perfect foresigh

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00739.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper studies the consequences of costly price adjustments for the variability of real prices accompanying inflation. For constant‐elasticity demand and cost of production it is shown that a higher demand, a lower cost of production, or a lower cost of price adjustment leads to less intertemporal variability of real prices. If the marginal cost of production does not increase “too” fast, then the average real price is less than the real price that would prevail in the absence of inflation; additionally, a higher demand, a lower cost of production, or a lower cost of price adjustment leads to a higher level of real p

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00740.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

Probit regression estimates show the effects of the price of insurance, anticipated medical expenditures, and other factors on reported decisions about purchasing hypothetically offered supplementary insurance policies. The demand estimates can characterize how much supplemental insurance would be purchased under different tax policies affecting health insurance purchases. Although eliminating the current tax subsidy to insurance is shown to decrease demand, the results indicate a substantial demand for supplementary insurance even in the absence of present tax incentives. However, our results on adverse selection raise concerns about the potential stability of supplemental insurance markets.

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00741.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

Compound pricing makes the price or availability of some goods conditional on the purchase (or non‐purchase) of other goods. Tie‐ins and requirements contracts, two well‐known examples, are analyzed here.Contrary to some opinion, such practices need not be innocuous or benign. This analysis shows that compound pricing can produce price, output, profit, and welfare results that are practically indistinguishable from those got when a firm increases its monopoly power in more obvious and direct ways. By some standards, the requirements and exclusive dealing contracts analyzed here are pred

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00742.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper tests the rational expectations‐natural rate hypothesis without basing expectations on time series estimates. Instead, market‐based data are used. Unexpected money supply changes are determined via the Fisher Effect and the Quantity Equation. This introduces errors of a very different kind than the traditional approach, and yet the results are remarkably similar to those generated using time series estimates. Unanticipated money shocks are shown to exert a significant but only short‐run effect on real output, suggesting only a short‐run Phillips curve trade‐off. Anticipated money growth appears to have no effect on re

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1987.tb00743.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY