Knowledge that Transforms

Journal Article The Optimal Taxation of International Investment Income: A Comment Get access John Dutton John Dutton North Carolina State University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 97, Issue 2, May 1982, Pages 373–380, https://doi.org/10.2307/1880765 Published: 01 May 1982

Journal Article Social Opportunity Costs and Immiserizing Growth: Some Observations on the Long Run Versus the Short Get access M. Ali Khan M. Ali Khan Johns Hopkins University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 97, Issue 2, May 1982, Pages 353–362, https://doi.org/10.2307/1880763 Published: 01 May 1982

This paper presents a model of spatial equilibrium that integrates elements of spatial pricing and Thünen location models. Properties of equilibrium under mill, uniform, and discriminatory pricing regimes are explored. Three comparative propositions concerning firm, consumer, and landowner welfare that obtain under the alternative pricing schemes are presented. The welfare findings contrast with those found in the extant spatial pricing literature. In particular, the superiority of mill pricing from a consumer welfare perspective is questioned.

This paper analyzes the relationship between wage changes negotiated in selected large collective bargaining agreements and industry-wide changes in average hourly earnings. Multiple regressions are used to examine the relationship in two-digit man-ufacturing industries for the period 195811 to 197811. Negotiated wage changes are found to have a major impact on overall movements in hourly earnings. The estimated equations have potential applications for short-run wage forecasting and for policy analyses. Over the past decade research on U. S. money wage determina-tion has evolved in several directions. Three important parts of the recent literature are the modified or augmented Phillips curve, the Friedman [1968]-Phelps [1970] accelerationist hypothesis, and wage distortion hypotheses. ' A fourth approach stresses the possible role of unions in overall money wage inflation. This is suggested in the contracts literature [Azariadis, 1975; Baily, 1976] and in a series of union-nonunion wage papers by Ashenfelter, Johnson, and Pencavel. 2 There have been some empirical analyses of the aggregate effects of union settlements [Hall, 1974; Flanagan, 1976; Johnson, 1977; Mitchell, 1980a,b], but lack of time series data on union wages has precluded exhaustive testing of this issue. The present paper fits into this fourth general area of money wage research. Rather than addressing broad questions about union con-tracts and wage inflation, however, it focuses on a much narrower topic. The paper employs multiple regressions to examine the em-pirical linkage between wage changes negotiated in large collective bargaining situations and industry-wide money wage movements. Because the paper does not try to explain the size of the bargaining agreements, it cannot address the key question about the possible independent role of contract settlements in overall money wage in-flation. Until the effect of union settlements on hourly earnings is

Journal Article Externalities as a Necessary Condition for Cyclical Social Preferences Get access Peter Bernholz Peter Bernholz Universität Basel, Switzerland Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 97, Issue 4, November 1982, Pages 699–705, https://doi.org/10.2307/1885107 Published: 01 November 1982

This paper derives an optimal job-searching strategy for workers on layoff, and an optimal recall policy for firms, when each side anticipates the other side's actions correctly. It shows that workers search for an alternative job only if the probability of recall falls below a critical level, and that firms may recall before the recovery of demand, depending on the costs of laying off and hiring workers, and the probability of losing workers on layoff. Through the use of optimal job searching and recall policies, the paper derives expressions for the duration of layoff unemployment and discusses briefly their comparative-static properties.

The notion that the cost of increasing family size depends upon the level of expenditures or investment per child (child quality), formalized in Becker and Lewis (1973) and Willis (1973), provides a rationale for the contemporaneous inter-country negative correlation between the schooling attainment of young persons and birth rates as well as the trends in these variables over time in developed countries during their demographic transition.A sufficient condition for fertility to fall and, say, schooling to rise as development proceeds in this framework is that the shadow-price constant income effect on quality per child 1 exceed that on numbers of children.Such an explanation, however, would appear :..o be of little value for those who hold that population growth itself impedes economic development (e.g., Coale and Hoover (1958)).From this perspective, the compensated substitution.implications of the theory are of concern, whereby price interventions which impinge on family size decisions can be used to accelerate pe~-capita income.The chief focus of policies aimed at reducing fertility in the absence of income growth appears to be on altering the "own" price of children through lowering information costs associated with contraceptive methdos in order to take advantage of recent innovations in birth control technolo~y.In this paper, we examine both theoretically and empirically the natalist impact of two alternative potential policies--reductions in the price of schooling and tech~ological innovation in the agricltural context--based on a rural household model in which (school) investments per child influence the cost of children as in the Becker-Lewis framework and in which the returns to schooling rise in a dynamic environment as a consequence of the allocative effect of education (Welch, 1970;Schultz, 1975).I show that, as a consequence of the "quantity-quality" interaction, reductions in the direct costs of schooling may raise fertility levels even if child schooling and the quantity of children are substitutes as conventionally defined and even if (observed) income effects are not positive.2,:. w

Richard A. Brecher, Ehsan U. Choudhri; Immiserizing Investment from Abroad: The Singer-Prebisch Thesis Reconsidered*, The Quarterly Journal of Economics, V

In theory, Federal debt-management policy potentially plays an important role in determining Treasury and private security yields. However, empirical studies have been unable to detect any significant effects from Federal debt-management. In large part the insignificance of relative asset supply effects associated with Federal debt-management policy may result from the use of unrestricted reduced-form models of interest rate determination. Using a disaggregated structural model of the markets for corporate bonds, equities, and four distinct maturity classes of Treasury securities, Federal debt-management policy is found to affect Treasury and private security yields significantly. Furthermore, the yields on corporate bonds and equities are influenced disproportionately.