Economics Commons^™

Murray Rothbard’S Adam Smith, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

Economic Crisis And Reform In Bulgaria, 1989-92, Jonathan B. Wight, M. Louise Fox

Economics Faculty Publications

Bulgaria's economy began a deep and prolonged collapse in 1989, exactly one hundred years after the noted Bulgarian novelist Ivan Vazov published his stirring novel opposing the tyranny of the Ottomans and warning of the mistaken road of socialism. The 1989 collapse was partially a reflection of the external political upheavals among Bulgaria's trading partners in Eastern Europe, which were rejecting socialist principles. But it was also a reflection of the weaknesses imbedded in the economy after 30 years of central planning. Political instability within Bulgaria, market reforms, and attempts at privatization contributed further to economic uncertainty resulting in a …

(Reviews) Economic Thought Before Adam Smith And Classical Economics, Spencer J. Pack

Economics Faculty Publications

Economic Thought Before Adam Smith: An Austrian Perspective on the History of Economic Thought, Volume I. By Murray N. Rothbard. Brookfield. Vermont: Edward Elgar Publishing Limited, 1995. Pp. 556. $99.95.

Classical Economics: An Austrian Perspective on the History of Economic Thought, Volume II. By Murray N. Rothbard. Brookfield. Vermont: Edward Elgar Publishing Limited, 1995. Pp. 528. $99.95.

(Review) Ian Simpson Ross, The Life Of Adam Smith And Jerry Z. Muller, Adam Smith In His Time And Ours, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

The Livingston Survey: Still Useful After All These Years, Dean D. Croushore

Economics Faculty Publications

The decisions of households, firms, and government agencies depend on forecasts of the overall economy. Large firms and the federal government often have the resources to hire their own economists to provide forecasts. But households, small firms, and local governments often depend on surveys of forecasters to get their information. In this article, Dean Croushore spotlights the Livingston Survey, which, even after 50 years, still provides useful forecasts of the economy.

Adam Smith On The Virtues: A Partial Resolution Of The Adam Smith Problem, Spencer J. Pack

Economics Faculty Publications

Adam Smith's definition of justice as a moral virtue based on the "passion" of resentment in 'The Theory of Moral Sentiments' (1759), despite seeming contradictions, supports his analysis of an acquisitive, commercial society in 'The Wealth of Nations' (1774) partly by precluding the concept of a just price.

Inflation Forecasts: How Good Are They?, Dean D. Croushore

Economics Faculty Publications

Forecasts of inflation affect decision-making in many segments of the economy. But in the early 1980s, economists found that forecasts in surveys taken over the past 20 years systematically underpredicted inflation. As a result, many economists stopped paying attention to forecasts. However, they may have abandoned them too quickly. In this article, Dean Croushore takes a closer look at survey forecasts and, after considering some relevant factors, concludes that inflation forecasts may not be as bad as you think.

Slavery, Adam Smith’S Economic Vision And The Invisible Hand, Spencer J. Pack

Economics Faculty Publications

Smith was against slavery on moral and economic grounds. The "invisible hand" in societies which allow slavery, operates in such a way that increases in the wealth of the rich, leads to increased misery for the poor free citizens as well as for the slaves themselves. It seems that the beneficial workings of the "invisible hand" are dependent upon commercial societies which arc not based upon the institution of slavery.

Paul Krugman And The Illusion Of The Illusion Of Conflict In International Trade, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

Evaluating Mccallum's Rule For Monetary Policy, Dean D. Croushore, Tom Stark

Economics Faculty Publications

Some economists have proposed that the Federal Reserve follow a rigid rule for conducting monetary policy. A policy rule is a formula that tells the Fed how to set monetary policy. For example, in 1959 Milton Friedman argued that the Fed should increase the money supply a constant 4 percent each year to eliminate inflation and avoid destabilizing the economy. More recently, other economists have identified an additional benefit: a rule can eliminate the inflationary bias that could occur when discretionary monetary policy is used. Under a discretionary policy, decisions are made on a case-by-case basis.

But economists don't agree …

The Effects Of Subsidies On Public Transit Long-Run Costs, Kofi Obeng, Wayne K. Talley, Christopher Colburn

Economics Faculty Publications

This paper investigates sources of public transit long-run cost increases attributable to transit subsidies. The sources include wage, vehicle capital price and service increases. Service expansion is found to be the major source. Transit cost increases related to subsidies are classified as input price, output and finance effects of these subsidies. Transit costs are more responsive to federal operating subsidies, followed in declining order by local operating, state operating and capital subsidies, respectively.

Adam Smith’S Unnaturally Natural (Nonetheless Naturally Unnatural) Use Of The Word Natural, Spencer J. Pack

Economics Faculty Publications

Natural and nature are complex words, fraught with ambiguity and contradiction. This paper does not attempt to give a complete account of Smith's use of these words. However, it does demonstrate that Smith did not necessarily approve of what he called "natural" or "nature". Economists and others who assume otherwise are in error. A study, analysis, and/or interpretation of Smith's work which depends upon this (at times unstated) assumption - that Smith necessarily approved of "nature" or the "natural"- needs to be read with great care; perhaps even incredulity.1

(Review) Stewart Justman, The Autonomous Male Of Adam Smith, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

(Review) The Political Economy Of Israel, Spencer J. Pack

Economics Faculty Publications

The Political Economv of Israel: From Ideology to Stagnation by Yakir Plessner. Albany: State University of New York Press. 1994, 328 pp. $21.95.

Adam Smith’S Invisible/Visible Hand/Chain/Chaos, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

Introducing: The Survey Of Professional Forecasters, Dean D. Croushore

Economics Faculty Publications

Forecasts play a crucial role in the economy. Businesses won't hire workers as readily if they think the economy may go into a recession soon. Long-term interest rates will rise if people in the financial markets expect inflation to increase. And firms are less likely to borrow money for new investment spending today if they think interest rates will soon decline.

Forecasts are important for many decisions, but not many people have the knowledge and experience to forecast economic variables well. It makes sense, therefore, for people to rely on the forecasts of experts. One easy way to get these …

What Are The Costs Of Disinflation?, Dean D. Croushore

Economics Faculty Publications

The Federal Reserve can use monetary policy to reduce the inflation rate, a process known as disinflation. Are the benefits of disinflation worth the costs? Proponents of disinflation argue that the long-run benefits of price stability, including lower interest rates, increased economic efficiency, and perhaps faster economic growth, greatly exceed the short-run costs. Opponents, of course, claim the opposite, usually arguing that the short-run costs in terms of higher unemployment and lost output would be immense.

Reglementation, Intervention Et Impot Regressif Dans La Richesse Des Nations, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

How Big Is Your Share Of Government Debt?, Dean D. Croushore

Economics Faculty Publications

In evaluating the government's financial position, taxpayers need to account not only for its debt, but also for its ownership of tangible assets. Each taxpayer has a share of the government's net worth that is positive; however, the share was larger 10 years ago. While the real net debt tripled, this huge rise in government indebtedness generated no similar gain in government assets. Taxpayers will be paying interest on this debt with little hope of higher future returns from government assets to help pay it off. It is recommended that the government adopt a capital-budgeting system. This system would change …

Do Socioeconomic Regulations Discriminate Against Small Firms?, Tran H. Dung, Robert Premus

Economics Faculty Publications

No abstract provided.

The Effect Of Government Deficits On Consumption And Interest Rates: A Two Equation Approach, Dean D. Croushore

Economics Faculty Publications

Single-equation estimation of the consumption function often is used in testing the Ricardian equivalence theorem. This approach may be misleading, as effects on interest rates usually are ignored. This paper proposes simultaneous estimation of consumption and investment equations, with the interest rate serving to equilibrate the market. Five existing studies are replicated and subjected to sensitivity tests. The results show that the interest rate is important in the consumption function. The Ricardian equivalence theorem is tested, but the results are mixed.

Regional Differences In Labor Demand In The United States, Rudy Fichtenbaum, John P. Blair

Economics Faculty Publications

A possible explanation for the lack of attention to regional demand variation is that analysts have assumed implicitly that the elasticity at demand was roughly comparable among regions. However, this assumption does not seem tenable, the purpose of this study was to fill this important gap in the literature. The hypothesis was that there were significant differences in the elasticity of the demand for labor. Knowledge of differences in demand elasticity for labor can be extremely important to policy makers at both the state and federal levels. At the federal level, knowledge of differences in regional demand elasticities would allow …

Do Not Dump On The Unoites, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

Government Financial Policy And Capital, Dean D. Croushore

Economics Faculty Publications

Economists have long been concerned about the best way to finance government deficits. Finding the proper fiscal policy and monetary policy mix is a crucial decision. When government debt grows too fast, interest rates rise and capital is crowded out. If the money growth rate is excessive, inflation occurs.

The study of this issue at the theoretical level requires a model which incorporates the following features: (1) modeling money and bonds as endogenous financial assets, whose rates of return are determined in general equilibrium, (2) examination of the utility maxi mization decisions of individuals, so that welfare analysis of alternative …

The Intergenerational Invisible Hand: A Comment On Sartorius's "Government Regulation And Intergenerational Justice", Arthur M. Diamond Jr.

Economics Faculty Publications

In "Government Regulation and Intergenerational Justice," Rolf Sartorius argues that some government regulation is justified in order to protect the rights of the unborn.' More than half of his paper is a discussion of the theory that views the only justifiable function of government as the "umpirage of the law of nature." In the remainder of his paper, he argues for an extension of the theory in order to justify regulation as well as umpirage. In particular, he argues that protecting the rights of the unborn represents an especially strong case where government regulation is justified.

Schumpeter Plus Optimism Equals Gilder (Ceteris Paribus), Spencer J. Pack

Economics Faculty Publications

No abstract provided.

The Efficiency Of Producing Alcohol For Energy In Brazil: Comment, Jonathan B. Wight

Economics Faculty Publications

In a 1982 issue of this journal, Michael Barzelay and Scott R. Pearson examined the social costs and benefits of producing ethanol motor fuel in Brazil. They conclude that ethanol fuel was economically infeasible in 1981 and will remain so unless petroleum prices rise dramatically in the future. We seek first to call attention to some problems in their data and second to suggest that their analysis include broader considerations. Quite different conclusions could result.

Economics Of The Pacific Whiting, Merluccius Productus, Fishery, Eric Anderson

Economics Faculty Publications

(First paragraph) Interest in the economics of Pacific whiting, Merluccius productus, production and consumption has been simulated in recent years by expanding U.S. participation in the fishery formerly dominated by foreign fishing and processing. This has raised several questions within the U.S. fishing industry: 1) Will it be profitable for additional U.S. fisherman and processors to enter the fishery? 2) What configuration will the U.S. Pacific whiting industry take? and 3) What will be the nature of markets for Pacific whiting products? This paper summarizes the conclusions of several reports and studies which bear on these questions.

The State Of Spencer, Arthur M. Diamond Jr.

Economics Faculty Publications

Before any words of title or content, the book begins with a photographic portrait of Spencer. He appears severe, smug, and slightly sad-as if he is about to chastise you for some distasteful breach of moral conduct. The portrait accurately forewarns the reader of the tone of the words that follow. Spencer’s essays read like secular sermons on the common theme that the road to hell on earth is paved with the good intentions of those who seek to expand the state.

Economic Evaluation Of Solar Energy Systems In Commercial Buildings: Methodology And Case Studies, Rosalie T. Ruegg, G. Thomas Sav, Jeanne W. Powell, E. Thomas Pierce

Economics Faculty Publications

This report develops a comprehensive economic optimization model for evaluating the economic feasibility of active solar energy systems to provide service hot water and combined space heating/service hot water in commercial buildings. The model is demonstrated in a number of case studies for office buildings and retail stores. Data and assumptions for use in the model are compiled for the selected case studies. Using these data, the model is applied to estimate present value net savings (or net losses) of the solar energy systems over a 20-year life cycle. Break-even values for hot water loads, solar energy system costs, and …