Knowledge that Transforms

Journal Article The Pricing of Durable Exhaustible Resources: Comment Get access John Chilton John Chilton University of South Carolina Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 99, Issue 3, August 1984, Pages 629–637, https://doi.org/10.2307/1885968 Published: 01 August 1984

Journal Article Protection and Real Incomes Once Again Get access Wilfred J. Ethier Wilfred J. Ethier University of Pennsylvania Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 99, Issue 1, February 1984, Pages 193–200, https://doi.org/10.2307/1885727 Published: 01 February 1984

The paper discusses the economics of promotion and, in particular, studies wage and employment structure in an economy with internal labor markets. It is shown—under a wide range of assumptions—that firms will set a nondecreasing wage profile that, for reasons apparently not suggested before, both junior and senior workers may be paid more or less than their marginal product, and that firms will offer a flat wage schedule if labor hours are supplied perfectly inelastically.

Under the U. S. tax law, taxable income differs systematically from economic income when there is inflation. For example, nominal interest payments and nominal capital gains are taxable or tax deductible, and depreciation allowances are based on historic rather than replacement costs. Therefore, even fully anticipated inflation can have real effects. The purpose of this paper is to investigate to what degree an increase in the inflation rate, given these differences between taxable and economic income under existing tax law, ought to change corporate investment and financial policy, and cause capital gains or losses to existing owners of corporate equity.

Journal Article A Note on the Effects of Taxation on Charitable Giving Over the Life Cycle and Beyond Get access Harry Watson Harry Watson George Washington University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 99, Issue 3, August 1984, Pages 639–647, https://doi.org/10.2307/1885969 Published: 01 August 1984

This paper examines delivered pricing with systematic freight absorption in the light of the modern theory of spatial competition. Delivered pricing, multiple basing point equilibria are compared with f.o.b. mill pricing equilibria under a variety of assumptions about market structure and firms' conjectural variations. It is shown that there is no clear reason for preferring f.o.b. pricing or delivered pricing in the abstract. Delivered pricing is likely to be preferable from the consumer's standpoint either if the conjectural variations of the firms are high, or if conjectural variations are consistent, and there are few firms in the industry.

Journal Article A Note on the Incentive for a Monopolist to Increase Fixed Costs as a Barrier to Entry Get access William P. Rogerson William P. Rogerson Stanford University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 99, Issue 2, May 1984, Pages 399–402, https://doi.org/10.2307/1885536 Published: 01 May 1984

Consider the organizational environment of labor management wherein the firm can measure the average performance (i.e., group work norm) of its employees but has difficulty in observing the individual worker's performance within the group. Accordingly, the worker's remuneration is based on the observed group norm. Because of the way in which workers interact among themselves in setting work norms, there results an undersupply of effort from a given workforce size. Furthermore, the group work norm is shown to be negatively correlated with the size of the workforce. Consequently, short-run unemployment can arise with involuntary features. The paper also explores the effectiveness of alternative remuneration schemes in mitigating the inefficiency associated with the group work norm setting.

J. S. S. Edwards, M. J. Keen; Wealth Maximization and the Cost of Capital: A Comment*, The Quarterly Journal of Economics, Volume 99, Issue 1, 1 February 1

This paper examines two issues. The first is the role of speculation in stabilizing the economy against stochastic disturbances. Increased speculation (i) stabilizes domestic income against disturbances in the domestic bond market and forward exchange market; (ii) exacerbates the effect of foreign disturbances; and (iii) may dampen or augment the effect of money market and output supply disturbances. The second issue is the role of the forward market in stabilization policy. Forward market intervention does not provide monetary authorities additional leverage in stabilizing income beyond unsterilized spot market intervention. Intervention rules based on reactions to both the forward and the spot exchange rates, however, can outperform intervention policies responding to the spot rate alone, regardless of the market in which intervention occurs.