Economics Commons^™

Introduction To The Handbook Of Economic Methodology, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Infrastructure Capital And Private Sector Productivity: A Dynamic Analysis, Farrokh Nourzad

Economics Faculty Research and Publications

This paper examines the relationship between public capital and private sector productivity in the context of a dynamic framework that distinguishes long-run equilibrium relations from short-run disequilibrium values. Using annual data covering the 1948-1987 period we find that there is a stable long-run relationship among private sector productivity, private inputs of capital and labor, and core infrastructure capital. Public capital exerts a positive influence on private sector productivity along this path, although the effect is statistically significant only at low levels of confidence. On the other hand, there appears to be no discernible effect on productivity by core infrastructure capital …

Historical Preservation Districts And Home Sale Prices: Evidence From The Sacramento Housing Market, David E. Clark, William E. Herrin

Economics Faculty Research and Publications

During the past two decades, cities have turned increasingly to historic preservation of residential and commercial property as a method to help revive declining metropolitan areas. Sacramento, California, established historical preservation districts in an attempt to protect and maintain older structures while simultaneously increasing their value. Historic preservation, however, imposes strict rules on property owners that make property improvement more expensive than it otherwise would be. This paper uses hedonic price theory on a sample of residential properties in Sacramento to test whether positive externalities resulting from an historic preservation designation outweigh the potential negative impact of a cumbersome set …

Government Investment Programs (The Socialization Of Investment), John B. Davis

Economics Faculty Research and Publications

No abstract provided.

J. M. Keynes On History And Convention, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Harcourt As A Historian Of Economic Thought, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Heterogeneous Labor In A Simple Ricardian Model, John B. Davis, Amitava Krishna Dutt

Economics Faculty Research and Publications

No abstract provided.

Comment: Frank Knight's Pluralism, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Optimal Sterilization Policies In Interdependent Economies, Joseph P. Daniels

Economics Faculty Research and Publications

In this paper, a two-country leader-follower model with imperfect asset substitution is used to derive the optimal sterilization coefficients for two-country flexible and fixed exchange rate regimes. It is found that, in general, incomplete sterilization is optimal. However, both the origin and the type of macroeconomic shocks the economies experience are important in determining the appropriate degree of sterilization. We also find that sterilization policies have spill-over effects (strategic complements) in both cases. Thus, in a competitive policy-making environment, greater sterilization by one country leads to greater sterilization by the other country. Further, the impact of increasing capital market integration …

The Distributional Effects Of Using A Before-Tax Standard: A Comment, Brian C. Brush

Economics Faculty Research and Publications

No abstract provided.

Determinants Of Economic Development Incentives Offered By States: A Test Of The Arms Race Hypothesis, Mark A. Jenn, Farrokh Nourzad

Economics Faculty Research and Publications

This paper tests the "arms race" hypothesis, which postulates that states tend to increase their incentive offerings to new firms if such incentive programs are in use in other states that are perceived to be direct competitors. Using a pooled time-series/cross-section sample of twelve states covering the period from 1969 through 1985 and a model that controls for the effects of various economic and political factors, we find strong support for the "arms race" hypothesis. This result is robust to the alternative specifications of the incentive offerings and different measures of the degree of competition among states.

Reserve Requirements, Currency Substitution, And Seigniorage In The Transition To European Monetary Union, Joseph P. Daniels, David Van Hoose

Economics Faculty Research and Publications

This article considers a transition toward European monetary union that combines increased substitution of currencies and greater monetary, financial, and fiscal policy coordination. It explores how such a transition would affect national inflation and interest rates and required reserve ratios when governments depend in part on seigniorage funding for public expenditures. We find that greater coordination of policies would lead to lower inflation and interest rates but higher reserve-requirement ratios. Because higher reserve-requirement ratios could place European banks at a competitive disadvantage, we conclude that the interaction between reserve requirements and seigniorage concerns makes it less likely that the gradualist …

The Impact Of Personal And Location Characteristics Upon Elderly Interstate Migration, David E. Clark, Thomas A. Knapp, Nancy E. White

Economics Faculty Research and Publications

The purpose of this paper is to investigate the impact of locational and individual characteristics upon interstate retiree migration, particularly in state-level public policy variables. Data regarding the characteristics of individual movers are drawn from the 1990 US. Census of Population and Housing 5% Public Use Microdata Sample. The household data are merged with location-specific attributes including both natural amenities and local fiscal variables. Three specifications of the model are estimated. The “push” model analyzes the impact of origin characteristics upon migration between states, while the “pull” model demonstrates the influence of destination characteristics upon interstate migration. The final specification …

Review Of Monetary Economics By N. Gregory Mankiw, Abdur Chowdhury

Economics Faculty Research and Publications

No abstract provided.

The Hedonic Price Structure Of Faculty Compensation At U.S. Colleges And Universities, David E. Clark, Thomas A. Knapp

Economics Faculty Research and Publications

Economic theory suggests that the variation in academic salaries across institutions in part reflects compensating differences associated with variation in the levels of local "quality of life" factors such as environmental quality and the provision of local public services. This paper presents an econometric analysis of the hedonic, or implicit price structure, of faculty compensation at U.S. colleges and universities using data from AAUP merged with data on a host of location-specific characteristics. Quality of life factors are found to be important, accounting for between 7 percent and 12.8 percent of total compensation.

Review Of The Macroeconomics Of Self-Fulfilling Prophecie By Roger E. A. Farmer, Abdur Chowdhury

Economics Faculty Research and Publications

No abstract provided.

Monetary Policies In Interdependent Economies: An Open Economy Explanation For Base Drift And Price-Level Non-Trend-Stationarities, Joseph P. Daniels, David D. Vanhoose

Economics Faculty Research and Publications

Most nations have experienced 'base drift' of their money stocks and associated price-level non-trend-stationarities. Recent explanations for this fact have emphasized tensions among various possible objectives of central banks in closed-economy or small-open-economy frameworks. In contrast, this paper explores structural and policy interdependence among economies as an explanation for price-level non-trend-stationarities. It demonstrates that such interdependence can induce central banks to follow non-trend-stationary policies even if they desire only to smooth prices in their home economies.

Is Emotive Theory The Philosopher's Stone Of The Ordinalist Revolution?, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Review Of Maynard Keynes, An Economist's Biography By D. Moggridge, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Interest Rate Variability And Manufacturing Industry Cash Flow: An Empirical Analysis, Suzette M. Lebrasseur-Serwin, Abdur Chowdhury

Economics Faculty Research and Publications

To examine the impact of floating rate loans and interest rate volatility on aggregate cash flow, quarterly data covering the period 1974 to 1990 for 14 two-digit Standard Industrial Classification manufacturing industries were analyzed. The results indicate that changes in the short-term interest rate and-or interest rate volatility have a significantly negative impact on the cash flow of a total of 11 of the 14 firms considered. Although the inverse relationship between corporate cash flow and interest rate is worth mentioning, the heterogeneity of this relationship across industries, however, is more interesting. The magnitude of the decline in cash flow …

Reconstruction Of Mainstream Economics And The Market Economy, John B. Davis, Edward J. O'Boyle

Economics Faculty Research and Publications

No abstract provided.

The Substitutability Of Equities And Consumer Durable Goods: A Portfolio-Choice Approach, Dale J. Knapp, Farrokh Nourzad

Economics Faculty Research and Publications

Using the analytical approach made famous by Chetty [4] and quarterly data covering the period from 1963.4 through 1991.3, we estimate elasticities of substitution between common stocks and residential housing and between stocks and government bonds, Treasury bills, money, the sum of savings and time deposits, and corporate paper. We also test whether these elasticities changed following the 1987 stock market crash.

We find that there is virtually no substitutability between stocks and other financial assets. Moreover, we find no evidence that asset holders are willing to substitute between stocks and housing. This last finding contradicts Runkle's suggestion that as …

Pluralism In Social Economics, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

The Locus Of Keynes's Philosophical Thinking In The General Theory: The Concept Of Convention, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

An Empirical Analysis Of Factors That Distinguish Those Who Evade On Their Tax Return From Those Who Choose Not To File A Return, Steven E. Crane, Farrokh Nourzad

Economics Faculty Research and Publications

This paper presents an empirical model distinguishing evaders who cheat by filing fraudulent income tax returns from those who do not file. Using a maximum-likelihood procedure that corrects for sample selection bias, and data from Michigan's amnesty program, we estimate a linear probability model which relates the probability of filing to various economic and demographic characteristics. The results indicate that higher true income and automatic withholding raise the probability of filing, while males and single individuals are less likely to file. The evidence regarding a grouping of occupations often thought to be association with evasion is inconclusive.

Does Exchange Rate Variability Depress Trade Flows ? Evidence From Error Correction Models, Abdur Chowdhury

Economics Faculty Research and Publications

This paper examines the impact of exchange rate volatility on the trade flows of the G-7 countries in the context of a multivariate error-correction model. The error-correction models do not show any sign of parameter instability. The results indicate that the exchange rate volatility has a significant negative impact on the volume of exports in each of the G-7 countries. Assuming market participants are risk averse, these results imply that exchange rate uncertainty causes them to reduce their activities, change prices, or shift sources of demand and supply in order to minimize their exposure to the effects of exchange rate …

Review Of Business Cycles: Theory, History, Indicators, And Forecasting By Victor Zarnowitz, Abdur Chowdhury

Economics Faculty Research and Publications

No abstract provided.

Review Of The History And Philosophy Of Social Science By S. Gordon, John B. Davis

Economics Faculty Research and Publications

No abstract provided.

Ricardo's Theory Of Profit And The Third Edition Of The Principles, John B. Davis

Economics Faculty Research and Publications

David Ricardo's “On Machinery” chapter continues to interest theorists and historians of economic thought (Blaug 1958, Hollander 1979, Kurz 1984, Samuelson, 1988, 1989, Morishima 1989, Negishi 1990). Yet the addition of the chapter to the third edition of Ricardo's Principles of Political Economy and Taxation arguably overturns much of the view for which Ricardo is so well known (Davis 1989). In the added chapter Ricardo allows, contrary to his original view in the first two editions, that the introduction of machinery is indeed injurious to the class of laborers. More interestingly, because machinery substitutes for labor, wages cannot rise and …

Introduction To The Social Economics Of Human Material Need, John B. Davis

Economics Faculty Research and Publications

No abstract provided.