Knowledge that Transforms

Mirjam van Praag of University of Amsterdam reviews “Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States” by Robert W. Fairlie, Alicia M. Robb,. The EconLit Abstract of the reviewed work begins “Examines racial disparities in business performance in the United States. Discusses racial disparities in business ownership and outcomes; the determinants of small business success; why African American-owned businesses are less successful; and why Asian-owned businesses are more successful. Fairlie is Professor of Economics at the University of California, Santa Cruz. Robb is Research Associate in Economics at the University of California, Santa Cruz and Senior Economist with Beacon Economics. Index.”

Lawrence R. Glosten of Columbia University reviews “Information and Learning in Markets: The Impact of Market Microstructure” by Xavier Vives,. The EconLit Abstract of the reviewed work begins “Graduate-level textbook analyzes how markets aggregate information and examines the impacts of specific market arrangements on the aggregation process and overall performance of financial markets. Discusses aggregation of information in simple market mechanisms--large markets; aggregation of information in simple market mechanisms--how large is large; rational expectations and supply function competition; rational expectations and market microstructure in financial markets; strategic traders in financial markets; learning from others and herding; dynamic information aggregation; dynamic rational expectations models in competitive financial markets; and price and information dynamics in financial markets. Includes end-of-chapter exercises. Vives is Professor of Economics and Finance at the IESE Business School at the University of Navarra. Index.”

Nicholas Barr of London School of Economics and Political Science reviews “When I’m Sixty-Four: The Plot against Pensions and the Plan to Save Them” by Teresa Ghilarducci,. The EconLit Abstract of the reviewed work begins “Examines the looming retirement crisis for baby boomers and others who hope to retire in the coming years, and considers a plan to guarantee retirement security for every working citizen. Discusses hope for retirement’s future; the collapse of retirement income; when bad things happen to good pensions--when promises get broken; do-it-yourself pensions; the future of social security; the short history of old age leisure in America; the distribution of retirement time--who really gets to retire; working--the new retirement’s effect on the economy; the American labor movement--advocating retirement and obtaining pensions; and a rescue plan for American workers’ retirement--averting the end of retirement. Ghilarducci is Irene and Bernard L. Schwartz Chair of Economic Policy Analysis at the New School for Social Research, and Wurf Fellow at Harvard University School of Law. Glossary; bibliography; index.”

Gary Burtless of The Brookings Institution reviews “The Competition of Ideas: The World of the Washington Think Tanks” by Murray Weidenbaum, Jeanne M. Lambrew,. The EconLit Abstract of the reviewed work begins “Examines the political economy of the Washington, D.C. think tanks. Discusses the challenge facing think tanks; basic data on Washington think tanks; the five major think tanks; making some comparisons; how think tanks operate; think tanks and business; and measuring the influence of think tanks. Weidenbaum is Edward Mallinckrodt Distinguished University Professor of Economics at Washington University in St. Louis. Index.”

Ed Hopkins of University of Edinburgh reviews “Happiness: A Revolution in Economics” by Bruno S. Frey,. The EconLit Abstract of the reviewed work begins “Explores the major developments of happiness research in economics and considers the new insights we have gained into how income, unemployment, inflation, and income demonstration affect well-being. Discusses research on happiness; the relationship of happiness to utility; how income affects happiness; how unemployment affects happiness; how inflation and inequality affect happiness; the public sphere; self-employment and voluntary work; marriage and happiness; watching television; procedural utility; mispredicting utility; the value of public goods; happiness policies; happiness and political institutions; and a revolution in economics. Frey is Professor of Economics at the University of Zurich and Research Director of the Center for Research in Economics, Management, and the Arts. Index.”

Jill Horwitz of University of Michigan reviews “Reforming Medicare: Options, Tradeoffs, and Opportunities” by Henry J. Aaron,. The EconLit Abstract of the reviewed work begins “Presents a guide to the debate over medicare reform in the United States. Discusses Medicare reform--the stakes; a Medicare primer; goals, performance, and options for Medicare; strengthening Medicare as a social insurance program; premium support; consumer-directed Medicare; and assessing Medicare reform options and prospects. Aaron is Senior Fellow in Economic Studies and Bruce and Virginia MacLaury Chair at the Brookings Institution. Lambrew is Associate Professor in the Lyndon B. Johnson School of Public Affairs at the University of Texas AT Austin, and Senior Fellow at the Center for American Progress. Index.”

Firouz Gahvari of University of Illinois at Urbana-Champaign reviews “International Perspectives on Social Security Reform” by Rudolph G. Penner,. The EconLit Abstract of the reviewed work begins “Six papers and twelve comments, originally presented at an Urban Institute conference held in February 2006, examine social security reform in six OECD countries. Papers discuss Canada (Real Bouchard); Sweden (Agneta Kruse and Edward Palmer); Japan (Tetsuo Kabe); Germany (Michael Mersmann); the United Kingdom (Alex Beer); and Italy (Alicia Puente Cackley, Tom Moscovitch, and Benjamin Pfeiffer). Penner is Senior Fellow and holds the Arjay and Frances Miller Chair in Public policy at the Urban Institute. Index.”

John Diamond of Rice University reviews “Reining in the Competition for Capital” by Ann Markusen,. The EconLit Abstract of the reviewed work begins “Eight papers, originally presented at a conference hosted by the University of Minnesota’s Humphrey Institute of Public Affairs in the spring of 2004, explore the causes, character, and potential remedies for the growing spatial competition for capital. Papers discuss institutional and political determinants of incentive competition (Ann Markusen and Katherine Nesse); the sources and processes of tax and subsidy competition (Kenneth P. Thomas); the fiscal consequences of competition for capital (Peter Fisher); how the European Union manages subsidy competition (Adinda Sinnaeve); solving the problems of economic development incentives (Timothy J. Bartik); negotiating the ideal deal--which local governments have the most bargaining leverage (Rachel Weber); whether better job creation subsidies hold real promise for business incentive reformers (William Schweke); and nine concrete ways to curtail the economic war among the states (Greg LeRoy). Markusen is a professor in the Urban and Regional Planning Graduate Program and Director of the Project on Regional and Industrial Economics at the Humphrey Institute of Public Affairs, University of Minnesota. Index.”

John Diamond of Rice University reviews “Taxing Corporate Income in the 21st Century” by Alan J. Auerbach, James R. Hines, Joel Slemrod,. The EconLit Abstract of the reviewed work begins “Nine papers and eighteen comments, originally presented at a conference held at the Stephen M. Ross School of Business at the University of Michigan in May 2005, explore issues surrounding the corporation income tax. Papers discuss the effects of taxes on market responses to dividend announcements and payments--what we can learn from the 2003 dividend tax cut; dissecting dividend decisions--some clues about the effects of dividend taxation from recent U.K. reforms; the 2003 dividend tax cuts and the value of the firm--an event study; how elastic the corporate income tax base is; an empirical examination of corporate tax noncompliance; the extent, growth, and efficiency consequences of state business tax planning; corporate taxation and international competition; the changing role of auditors in corporate tax planning; and taxation and the evolution of aggregate corporate ownership concentration. Auerbach is Robert D. Burch Professor of Economics and Law and Director of the Burch Center for Tax Policy and Public Finance at the University of California, Berkeley. Hines is Richard A. Musgrave Collegiate Professor of Economics and Professor of Law at the University of Michigan. Slemrod is Paul W. McCracken Collegiate Professor of Business Economics and Public Policy at the University of Michigan. Index.”

John Diamond of Rice University reviews “Tax Policy and Labor Market Performance” by Jonas Agell, Peter Birch Sorensen,. The EconLit Abstract of the reviewed work begins “Eight papers, originally presented at the CESifo Summer Institute held in July 2003 in Venice, analyze the effect of tax policy and welfare state incentives on the performance of the labor market. Papers discuss tax policy and labor market performance (A. Lans Bovenberg); work and taxes (Stephen Nickell); whether social policies harm employment and growth--second-best effects of taxes and benefits on employment (Frederick van der Ploeg); welfare effects of tax reform and labor supply at the intensive and extensive margins (Nada Eissa, Henrik Jacobsen Kleven, and Claus Thustrup Kreiner); the hours of work response of married couples--taxes and the earned income credit (‘Eissa and Hilary Hoynes); progressive taxation and wages--microevidence (Torben Tranas, Soren Arnberg, and Anders Holm); insiders, outsiders, and the underground economy (Dan Anderberg); and wages, unemployment, and the underground economy (Ann-Sofie Kolm and Birthe Larsen). Agell is Professor of Economics at Stockholm University. Sorensen is Professor of Macroeconomic Theory and Policy at the University of Copenhagen. Index.”