ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01793.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Barro claims that since the public rationally forecasts and discounts future taxes, government debt does not represent net wealth to the public and therefore does not affect any real economic variables. Then why are there ever deficits? Barro has presented a theory of optimal deficits based on intertemporal tax smoothing. The theory predicts that nominal debt grows in proportion to anticipated inflation, varies contracyclically with respect to real income cycles, and varies procyclically with respect to war cycles. Barro tested his theory using annual American data for 1922‐76 and found weak support for his theory. This paper reexamines Barro's tests, using quarterly American data for 1953:Q1 to 1978:Q4 and finds stronger support for Barro's theory than Barro found using annual data. This paper also concludes that state and local governments do not engage in tax‐smoothing behavior–––probably due to considerations of migration–––and that the debt held by the central bank should be included in the definition

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01794.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

It is shown by numerical examples that, for the simple “two states of the world” version of Azariadis' original model of implicit labour contracts, enormous fluctuations in output price are required to generate layoffs. The paper then modifies the simple model, replacing the perfectly competitive product market specification with a sales constraint. This modification makes a significant difference; the combination of sales constraints and risk‐shifting is shown to have the potential to explain layoffs. Since this sales constraint is unmotivated by micro analysis, its inclusion does not satisfy the original aim of the risk‐shifting employment model to explain layoffs as based on micro foundations. A secondary aim of the paper is to make the workings of the risk‐shifting employment model easier to understand by introducing a new diagrammatic analysis based on a contr

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01795.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

The May 25th, 1979 Chicago DC‐10 crash provides the opportunity to test an important proposition in the theory of consumer product safety: Can market forces provide safety when products are too complex to permit buyer prepurchase inspection? This paper combines economic theory with modern finance theory to measure the cost of the crash to shareholders of the plane's manufacturer, McDonnell Douglas. The results indicate that the DC‐10 crash resulted in a $200 million loss to McDonnell Douglas stockholders and that this amount exceeds any reasonable estimate of regulatory or liability co

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01796.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper examines the causal relationship between wages and quits in U.S. manufacturing industries. Logit and regression models then relate causality test results to industrial characteristics. Once these relationships are identified, they can be used to predict the causality classification for each industry, based on the characteristics of that industry. This technique can help the researcher choose the appropriate theoretical model for analysis. One finding is that quits respond to wages in most industries, but not in industries with highly skilled workforces.

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01797.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper examines the validity of competing hypotheses used to explain the observed positive relationship between concentration and profits. Using price proxies from the banking industry, we find that leading (secondary) firms in a market act as price‐setters (price‐takers). This is true regardless of market concentration. We interpret this as evidence of the superior efficiency of leading firms and conclude that the higher profits earned by these firms is due to their superior efficiency and not collusive behav

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01798.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper derives the implications, for individual saving and labor supply, of increased uncertainty about the future price level. The framework for the analysis is a two‐period model in which saving and labor supply are alternative sources of both present disutility and future income. The individual is assumed to make simultaneously his saving and labor supply decisions prior to the resolution of the uncertainty about the future price level. We find that, under theoretically plausible and empirically relevant assumptions about attitudes toward risk, an increase in future price level uncertainty increases individual saving and labor supply. These results imply that, for the economy as a whole, increased uncertainty about the future price level increases output and employment, while decreasing the real rate of interest, the present price level, and economic welfar

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01799.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper reports the results of a series of oral‐double‐auction experiments in which some traders possess market power. A market is set up in which the configuration of the supply and demand curves leads to an asymmetry between buyers and sellers in their abilities to influence transactions prices. This market structure does not always lead to convergence to the competitive equilibrium price despite the competitive nature of the oral‐double‐auction institution. The nonconvergence occurs most frequently in the experiments involving experienced s

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01800.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Data from U.S. Forest Service timber auctions are used to test Vickrey's original proposition that sealed‐bid and open auctions yield equal revenue. Models for the high‐bid in an auction are specified and estimated using three different procedures: ordinary least squares, two stage least squares, and maximum likelihood. The second two procedures include a second equation which accounts for the Forest Service's auction choice and therefore control for selection bias. These two procedures, which unlike ordinary least squares yield consistent estimators, imply a statistically and economically insignificant difference in high‐bids between sealed‐bid and open a

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01801.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Simultaneous monetary and fiscal policy reaction functions are derived and estimated for the 1969:2–1984.3 period. The results suggest that the Reagan administration has abandoned fiscal policy as a stabilization tool. Furthermore, although the average money growth rate declined in the Reagan administration, variation in the rate of money growth indicates that monetary policy has been used to combat unemployment. Finally, monetary and fiscal policies were not coordinated during this period. Rather, monetary and fiscal policy appear to be set by a Nash equilibrium in a non‐cooperative game. In a Nash equilibrium, the policy chosen by each authority maximizes its payoff, given the policy choice of the other author

ISSN:0095-2583    

DOI:10.1111/j.1465-7295.1986.tb01802.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY