Open Access. Powered by Scholars. Published by Universities.®

Social and Behavioral Sciences Commons™

Open Access. Powered by Scholars. Published by Universities.®

Selected Works

1994

SelectedWorks

Economics

Articles 1 - 13 of 13

Full-Text Articles in Social and Behavioral Sciences

Donohue Senate Testimony On Job Corps 1994, John J. Donohue Sep 1994

Donohue Senate Testimony On Job Corps 1994, John J. Donohue

John Donohue

Testimony of John J. Donohue III, Class of 1967 James B. Haddad Professor of Law, North-western University and Research Fellow, American Bar Foundation, before the Senate Labor Committee.

Go to article

'Once-Off' And Continuing Gains From Trade, M. Scott Taylor Aug 1994

'Once-Off' And Continuing Gains From Trade, M. Scott Taylor

M. Scott Taylor

Most Economists are familiar with the static or once-off welfare gains created by opening an economy to trade. Much less is known about how the resource reallocations necessitated by this move affect long-run growth, and hence whether they provide dynamic or continuing welfare gains in future periods. This paper employs a dynamic Ricardian trade model to provide a decomposition of the gains from trade into "once-off" and continuing categories. In one version of the model, trade is always welfare enhancing; in the other, "once-off" losses may occur alongside dynamic gains. In both versions the magnitude of the once-off and continuing …

Go to article

North-South Trade And The Environment, M. Scott Taylor, Brian A. Copeland Aug 1994

North-South Trade And The Environment, M. Scott Taylor, Brian A. Copeland

M. Scott Taylor

A simple static model of North-South trade is developed to examine linkages between national income, pollution, and international trade. Two countries produce a continuum of goods, each differing in pollution intensity. We show that the higher income country chooses stronger environmental protection, and specializes in relatively clean goods. By isolating the scale, composition, and technique effects of international trade on pollution, we show that free trade increases world pollution; an increase in the Rich North's production possibilities increases pollution, while similar growth in the poor South lowers pollution; and unilateral transfers from North to South reduce worldwide pollution.

Go to article

Trips, Trade, And Growth, M. Scott Taylor May 1994

Trips, Trade, And Growth, M. Scott Taylor

M. Scott Taylor

A two country model of endogenous growth is employed to assess the importance of intellectual property rights to trade, growth and technology transfer. The paper provides theoretical results linking the intellectual property rights regime to trade patterns, aggregate R&D, worldwide growth, and aggregate welfare measures. Failure to provide patent protection for foreign made innovations forces innovators to employ less than the best practice research technologies, reduces aggregate R&D activities worldwide, effectively eliminates technology transfer across countries, and reduces worldwide growth.

Go to article

Judicial Legitimacy: An Interpretation As A Repeated Game, Eric Bennett Rasmusen Apr 1994

Judicial Legitimacy: An Interpretation As A Repeated Game, Eric Bennett Rasmusen

Eric Bennett Rasmusen

If society wishes to maintain an independent judiciary, it faces the problem of how to restrain judges from indulging their personal whims. One restraint is the desire of judges to influence future judges. To do so, they may have to maintain their own or the system's legitimacy by restraining their own behavior. This situation is usefully viewed as an equilibrium of an infinitely repeated game.

Go to article

Cheap Bribes And The Corruption Ban: A Coordination Game Among Rational Legislators, Eric Bennett Rasmusen, J. Mark Ramseyer Apr 1994

Cheap Bribes And The Corruption Ban: A Coordination Game Among Rational Legislators, Eric Bennett Rasmusen, J. Mark Ramseyer

Eric Bennett Rasmusen

Legislators in modern democracies (a) accept bribes that are small compared to value of the statutes they pass and (b) allow bans against bribery to be enforced. In our model of bribery, rational legislators accept bribes smaller not only than the benefit the briber receives but than the costs the legislators incur in accepting the bribes. Rather than risk this outcome, the legislators may be willing to suppress bribery altogether. The size of legislatures, the quality of voter information, the nature of party organization, and the structure of committees will all influence the frequency and size of bribes.

Go to article

In Search Of A Monetary Anchor: A "New" Monetary Standard, Warren Coats Jan 1994

In Search Of A Monetary Anchor: A "New" Monetary Standard, Warren Coats

Warren Coats

This discussion of monetary rules generalizes "commodity" standard/currency board rules in a new way to target the CPI.

Go to article

Wage Bargaining With Time-Varying Threats, Peter Cramton, Joseph Tracy Jan 1994

Wage Bargaining With Time-Varying Threats, Peter Cramton, Joseph Tracy

Peter Cramton

We study wage bargaining in which the union is uncertain about the firm's willingness to pay and threat payoffs vary over time. Strike payoffs change over time as replacement workers are hired, as strikers find temporary jobs, and as inventories or strike funds run out. We find that bargaining outcomes are substantially altered if threat payoffs vary. If dispute costs increase in the long-run, then dispute durations are longer, settlement rates are lower, and wages decline more slowly during the short-run (and may even increase). The settlement wage is largely determined from the long-run threat, rather than the short-run threat.

Go to article

The Determinants Of U.S. Labor Disputes, Peter Cramton, Joseph Tracy Jan 1994

The Determinants Of U.S. Labor Disputes, Peter Cramton, Joseph Tracy

Peter Cramton

We present a bargaining model of union contract negotiations, in which the union decides between two threats: the union can strike or continue to work under the expired contract. The model makes predictions about the level of dispute activity and the form the disputes take. Strike incidence increases as the strike threat becomes more attractive, because of low unemployment or a real wage drop during the prior contract. We test these predictions by estimating logistic models of dispute incidence and dispute composition for U.S. labor contract negotiations from 1970 to 1989. We find empirical support for the model's key predictions, …

Go to article

Relational Investing And Agency Theory, Peter Cramton, Ian Ayres Jan 1994

Relational Investing And Agency Theory, Peter Cramton, Ian Ayres

Peter Cramton

This Article analyzes how, and when, corporate governance could be improved by utilizing "relational investing." The term relational investing is just coming into vogue and there does not yet seem to be a consensus on what it means. Although the term has been trumpeted on the cover of Business Week, before the Conference on Relational Investing at Columbia University, relatively little legal writing had been published on the subject. For the purposes of this Article, we define relational investing to encompass commitments to buy and hold significant blocks of a corporation's stock. And it is particularly important that the relational …

Go to article

Inventory, Business Cycles And Monetary Transmission (Ed.), Riccardo Fiorito Jan 1994

Inventory, Business Cycles And Monetary Transmission (Ed.), Riccardo Fiorito

riccardo fiorito

No abstract provided.

Go to article

Stylized Facts Of Business Cycles In The G7 From A Real Business Cycles Perspective, Riccardo Fiorito, Tryphon Kollintzas Jan 1994

Stylized Facts Of Business Cycles In The G7 From A Real Business Cycles Perspective, Riccardo Fiorito, Tryphon Kollintzas

riccardo fiorito

This paper investigates the basic stylized facts of business cycles in the G-7 countries using quarterly data (1960-89). The methodology is based on Kydland-Prescott (1990). The evidence suggests that the RBC model can account for several major stylized facts for all seven countries. In particular, consumption is procylical and fluctuates more than output; net exports are countercyclical; prices are countercyclical; government consumption and money do not have a clear cut pattern.

Go to article

Regional Unemployment In Italy: Sources And Cures, Maurizio Baussola, Riccardo Fiorito Jan 1994

Regional Unemployment In Italy: Sources And Cures, Maurizio Baussola, Riccardo Fiorito

riccardo fiorito

A regional model of Italy analyzes unemployment responses to supply and demand shocks in the market for labor and goods. Both supply and demand components of unemployment are endogenous. Employment has low elasticity to output in Southern Italy where labor force increases more because of demographic and participation changes. This also makes it difficult to close the gap between this region and the most developed areas of the country.

Go to article