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Economics

Economics Staff Paper Series

1994

Articles 1 - 9 of 9

Full-Text Articles in Social and Behavioral Sciences

Three Monographs: International Monetary Fund; Treasury Systems; Military Conscription And Conscientious Objection, John Sondey Dec 1994

Three Monographs: International Monetary Fund; Treasury Systems; Military Conscription And Conscientious Objection, John Sondey

Economics Staff Paper Series

No abstract provided.

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Comparative Efficiencies: National And Military Service, John Sondey Oct 1994

Comparative Efficiencies: National And Military Service, John Sondey

Economics Staff Paper Series

The National Service Act of 1993 is viewed as a means of inculcating a sense of personal and social responsibility in young adults. The present emphasis on fiscal responsibility and budget reduction implies that any new expenditure program be funded by either: (a) reductions in present programs; or, (b) new taxes. As new taxes are regarded as "politically incorrect" by legislators seeking to extend their tenure, program cuts become mandatory. It is proposed that military downsizing is one means of funding national service; and that the tradeoff is suboptimal. Downsizing adversely affects minorities and the least skilled - who benefit …

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The Influence Of International On Union Firm Hiring And Worker Union Choice, Dwight Adamson, Mark Partridge Oct 1994

The Influence Of International On Union Firm Hiring And Worker Union Choice, Dwight Adamson, Mark Partridge

Economics Staff Paper Series

Union opposition to free trade policies suggests that international trade damages the union movement. Previous research has found little relationship between union wages and international trade. However, greater trade may hinder unions by reducing the likelihood that workers enter the union sector. A bivariate partial observability probit model is used to predict union choice with respect to risk aversion, union strategic behavior, and product market effects of trade. The model estimates the probability of workers entering the union sector queue and the probability of being hired from the union queue. The results suggest that trade has had some adverse effects …

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Uncertainty Over The Quality Of Labor Inputs: A Nonmonopoly Theory Of Union Wages And Hours Worked, Dwight Adamson, Scott Fausti Oct 1994

Uncertainty Over The Quality Of Labor Inputs: A Nonmonopoly Theory Of Union Wages And Hours Worked, Dwight Adamson, Scott Fausti

Economics Staff Paper Series

Traditional theoretical explanations of union wage effects rely on a monopoly theory of wage determination. Using union monopoly power to set wages implies that unions face a tradeoff between higher wages and lower union sector employment. Earle and Pencavel (1990) find a positive union effect (relative to the nonunion sector) on wages and hours of work. Their empirical result appears to be inconsistent with the theoretical implications of union monopoly power. If unions are able to force unionized firms off their labor demand curve to the point where both wages and hours worked increase, then in a competitive environment, nonunion …

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Capturing The Impacts Of North American Free Trade Agreement On South Dakota's Economy, Bashir Qasmi, Scott Fausti Sep 1994

Capturing The Impacts Of North American Free Trade Agreement On South Dakota's Economy, Bashir Qasmi, Scott Fausti

Economics Staff Paper Series

In August 1992, representatives of Canada, Mexico, and the United States concluded their negotiations of the North American Free Trade Agreement (NAFTA). The treaty has been subsequently signed and ratified by all three countries. As of January 1, 1994, NAFTA created the largest free trade area in the world, with more than 360 million people and a combined gross domestic product of roughly $6.5 trillion (in U.S. dollars). A comparison of NAFTA with the European Union (EU) is provided in appendix A. NAFTA essentially lifts trade barriers between Mexico, Canada, and the United States. At the time of signing of …

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The Effect Of Joint-Product Export Smuggling On Export Tax Policy, Scott Fausti May 1994

The Effect Of Joint-Product Export Smuggling On Export Tax Policy, Scott Fausti

Economics Staff Paper Series

This paper analyzes the effect of joint-product export smuggling on the revenue-maximizing export tax rate and tax revenue collection under the small country assumption. The results indicate that the effect of introducing joint product export smuggling is dependent on whether legal and illegal exports are considered a substitutable or complementary activity for the exporting firm. The results of the model are applied to the issue of cigarette smuggling in the United States. The paper concludes that if legal and illegal interstate trade in cigarettes are substitutable activities for firms in the wholesale and retail tobacco industry, then states levying relatively …

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Economic Development And Trade Liberalization: The Indonesian Experience, Scott Fausti, Rony Bishry Apr 1994

Economic Development And Trade Liberalization: The Indonesian Experience, Scott Fausti, Rony Bishry

Economics Staff Paper Series

From 1950 to 1965, Indonesia followed an import substitution industrialization development strategy. From 1966 to the present, Indonesia has moved toward an export oriented development strategy. This paper tests the predictions of the Heckscher-Ohlin- Samuelson (HOS) model of international trade by comparing Indonesia's economic performance under two contrasting development strategies. The paper concludes that Indonesia's economic performance under the opposing development strategies supports the predictions of the HOS model. Furthermore, the Indonesian experience under the two development strategies supports the "trade as an engine of growth" hypothesis.

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Production Uncertainty, Enforcement And Smuggling: A Stochastic Model, Scott Fausti Apr 1994

Production Uncertainty, Enforcement And Smuggling: A Stochastic Model, Scott Fausti

Economics Staff Paper Series

This paper merges the existing smuggling literature with the literature concerning competitive firm behavior under uncertainty. A stochastic, joint product, model of smuggling is developed. The model introduces production uncertainty, generated by enforcement activity, into a Pitt (1981) type of smuggling production function. This modelling technique allows the trade pattern and welfare results which evolve under smuggling with uncertainty to be compared to smuggling in a world of certainty. It is demonstrated that mere presence of uncertainty increases the real resource cost associated with smuggling, reduces legal and illegal trade, and welfare, when compared to smuggling in a world of …

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Enhanced Human Capital Stock And The Military Experience: A Modest Policy Proposal, John Sondey Feb 1994

Enhanced Human Capital Stock And The Military Experience: A Modest Policy Proposal, John Sondey

Economics Staff Paper Series

George Washington's sentiments on the obligations of citizens were clear. He regarded military service as the duty of every male citizen who enjoyed the privileges of democracy. He stressed that an army composed of citizen-soldiers was preferable, from a point of social cohesion and political stability, to one composed of professional soldiers - and cited the Swiss Army as the proper example (Graham, 1971). In spite of these perceived benefits, the United States has historically been of two minds with respect to providing for the national defense. That is, should the military be composed of professional soldiers, induced to enlist …

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