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Disaggregating Input-Output Models

The Review of Economics and Statistics 1984 66(2), 283
A general solution is given to the problem: with little computation, construct a more disaggregated input-output model from an available model, using information about some activities that were aggregated when the available model was built. The solution is exact and explicit. When only partial information is available, the exact solution guides its user to inexpensive and precise sensitivity analysis. Detailed consideration is accorded to the solution of the most frequently occurring problem: the disaggregation of one sector into two. 14 references.

The Dispersion Hypothesis in Macroeconomics

The Review of Economics and Statistics 1984 66(3), 482
Macroeconomics has always rested on the fiction that the behavior of aggregates was stable and, therefore, individual market phenomena could be safely ignored. In an important recent contribution, David M. Lilien challenged this fiction and argued that a large component of fluctuations in unemployment could be explained by the dispersion of employment growth across industries. This paper develops models of consumption and investment paper in which the dispersion of economic activity can play a role. The econometric evidence suggests an important role for the dispersion of economic activity in explaining aggregate consumption and investment.

Family Earnings and Wage Inequality Early in the Life Cycle

The Review of Economics and Statistics 1984 66(2), 200
A bstract-This article proposes an explanation for the fact that while wages of married women contribute to equalizing the distnrbution of family wages the equalizing effect declines during the early stages of the married life cycle. The explanation is based on the interaction between on-the-job accumulation of human capital and labor supply behavior. Empirical results from the NLS panel data suggest that the explanation is plausible and also show that in contrast to the results of previous cross-section studies there is no decline over time in the equalizing effect of wives' earnings on the distribution of family earnings.