Economic Theory Commons^™

A Political Model Of Monetary Policy With Application To The Real Fed Funds Rate, Tony Caporale, Kevin B. Grier

Economics and Finance Faculty Publications

We construct an empirical model of U.S. monetary policy assuming that the Federal Reserve is an ordinary federal bureaucracy. We use the real Federal Funds rate as our policy measure and show the existence of significant executive, legislative, and bureaucratic influence on the real rate of interest from 1961 to 1996. We find that presidential party is an adequate statistical measure of executive influence and that the voting scores of the Senate Banking Committee leadership best represent legislative influence. We argue that political changes cause systematic and predictable changes in monetary policy.

Low Inflation: The Surprise Of The 1990s, Dean D. Croushore

Economics Faculty Publications

For most of the 1990s, forecasters have been predicting an upturn in inflation. Yet, over that same period, the United States has experienced stable or declining inflation. Why have forecasts been at odds with reality? And why does it matter? In this article, Dean Croushore considers some answers to these questions and explains why inflation is the economic surprise of the decade.

Essay I. Intra-Industry Contagion And Competitive Effects Associated With Corporate Liquidation Announcements: Does Shareholder Governance Influence The Results? Essay Ii. Investors' Pricing Of Exchange Rate Risk In U. S. Firms That File For Bankruptcy, J. Terry Ray

Theses and Dissertations in Business Administration

Essay I. Intra-industry contagion and competitive effects associated with corporate liquidation announcements: Does shareholder governance influence the results? This essay extends earlier research by investigating the role shareholder governance may play in the abnormal stock returns of the liquidating firms' competitors. The empirical model used for analyzing the abnormal returns includes variables to capture the influence of: leverage, Tobin's q, the Herfindahl index, Book Equity-to-Market Equity ratio, the level of institutional stock ownership, and the level of stock ownership by insiders.

The conclusion is leverage of the liquidating firm as well as its competitors is the major factor affecting the …

Relative Gains Problem And Case Studies Of Economic Cooperation In East Asia, Ping Deng

Graduate Program in International Studies Theses & Dissertations

Relative gains problem basically means unequal cooperative payoffs disproportionately favoring partners. With the relative gains problem widely accepted as a serious impediment to international cooperation, some scholars have theoretically argued or modeled several conditions that are most likely to foster a state's sensitivity to relative gains and thus substantially affect the prospects for cooperation. But little empirical work has been done to date. The central objective of this dissertation is to test whether those theoretical propositions can be supported by empirical evidence. For this purpose, we have deducted three hypotheses: (1) If a state faces military threat and zero-sum political …

Murray Rothbard’S Adam Smith, Spencer J. Pack

Economics Faculty Publications

No abstract provided.

Standardization And The Stability Of Collusion, Luca Lambertini, Sougata Poddar, Dan Sasaki

Economics Faculty Articles and Research

We characterize the interplay between firms' decision in terms of product standardization and the nature of their ensuing market behaviour. We prove the existence of a non-monotone relationship between firms' decision at the product stage and their intertemporal preferences.

The Fischer Black Hypothesis: Some Time-Series Evidence, Tony Caporale, Barbara Mckiernan

Economics and Finance Faculty Publications

We estimate an ARCH-M model to analyze the relationship between the conditional standard deviation of real gross national product (GNP) and its growth rate for the period 1871-1993. We find that variability significantly increases output growth rates. In addition, impulse response functions show that the effect of variability on growth rates is dynamic. These results provide evidence in favor of Black's (1987) business cycle hypothesis.

Network Structure And Entry In The Deregulated Airline Industry, Joseph Berechman, Sougata Poddar, Oz Shy

Economics Faculty Articles and Research

We explore how an incumbent airline firm structures its route network under the threat of entry caused by deregulation. We show that entry induces the incumbent firm to strategically alter its flight operating network from a fully connected network (FC) to a hub-and-spoke network (HS). While most of the literature always assumed that the use of of HS network is primarily for the purpose of cost reduction, we show that hub-and-spoke operation can be used as a strategic device by the incumbent firm when it faces a threat of entry in its operating zone.

Ideologies Of Development, Hassan Hanafi

Faculty Book Chapters

[abstract not provided]

A New Approach To Expectation Theory: Rationality Revisited, Tamas Forgacs

Masters Theses

Expectations play an important role in economics. Traditionally two major branches of expectation theory are distinguished: that of adaptive and rational expectations. This study sets out the goal of investigating inflationary expectations based on real world experiences. The model proposed and tested here abandons the traditional fixed-time-interval-update models for a non-fixed-time-interval-update model. Although the penalty function attached to each error is still subject to debate, it is shown that by reacting with faster updates to errors in expectations economic agents achieve more precise expectations compared to those of a fix time interval update model. We also find the model rational …

Price Differentials & Competitions & Cost Differentials + Loose Notes, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A., PhD. (1987, May 13). Price differentials & competition & cost differentials [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (1995, November 1). Choice of technique and the pricing decision [Paper for Eco. 204]. Unpublished manuscript.

• Shaikh, A., PhD. (1984, May). Dynamics of the falling rate of profit. Unpublished manuscript.

• Shaikh, A., PhD. (1987, March). Comparative phenomena of Marxist crisis theories [Handwritten notes]. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). FROP [Handwritten notes containing graphs of realized rates]. Unpublished manuscript.

• Shaikh, A., PhD. (1994, Spring). Note on profit squeeze theories. Unpublished manuscript.

• Shaikh, A., PhD. (n.d.). …

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Explaining Long-Term Exchange Rate Behavior In The United States And Japan, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Shaikh, A., PhD., & Antonopoulos, R. (1998, September). Explaining long-term exchange rate behavior in the United States and Japan (Working Paper No. 250). Jerome Levy Economics Institute.

Handouts Eco 107, Intro Pe Ii, Anwar Shaikh Phd1

Archives of Anwar Shaikh

This collection includes.

• Course syllabus and reading list for Econ. 107: Introduction to political economy II. (1997, Spring). [Course syllabus and reading list]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Final exam for Eco. 107: Introduction to political economy II. (1998, Spring). [Examination]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Midterm take-home exam for Eco. 107: Introduction to political economy II. (1998, Spring). [Examination]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Transf. problem. (1996, …

Exchange Rates, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• [Author unknown]. (n.d.). Alternative theory of real exchange rate determination and empirical test for Greece based on Shaikh’s model [Dissertation excerpt].

• Shaikh, A., PhD. (1998, October 13). Cointegration results, tradable/non-tradable factor mobility, and large financial flows in Asia [Unpublished handwritten notes].

• Shaikh, A., PhD. (1998, November 12). Notes on trade and capital mobility [Unpublished notes].

• Shaikh, A., PhD. (n.d.). Library.en1: Citation of Frenkel and Johnson (1976) on the monetary approach to the balance of payments [Unpublished typed excerpt].

• Shaikh, A., PhD. (1989, December 31). Exchange rates in orthodox economics: Dornbusch [Unpublished handwritten …

Xr Project, Anwar Shaikh Phd

Archives of Anwar Shaikh

• Shaikh, A., PhD. (1998, July 2). Rxr [Unpublished handwritten notes].

• Godley, W. (1998, June 16). Godley’s trade sector equations and a glossary [Fax].

• Shaikh, A., PhD. (1998, June 12). U.S./OECD: Rxr (PPI), Rxr (export unit value), and Xr [Unpublished graph].

• Shaikh, A., PhD. (n.d.). International long-term interest rates [Unpublished graph].

• Shaikh, A., PhD. (n.d.). International short-term interest rates [Unpublished graph].

• Shaikh, A., PhD. (n.d.). Japan long-term interest rate differentials [Unpublished graph].

• Shaikh, A., PhD. (n.d.). U.S. interest rate differentials [Unpublished graph].

• Shaikh, A., PhD. (1998, May 10). U.S./OECD: Rxr (PPI) and RULC …