Knowledge that Transforms

Peer Reviewed

The proof of Theorem 4 in [1] is incorrect. We offer another, longer one.

Journal Article Money, Expectations and the Existence of a Temporary Equilibrium Get access Bryce Hool Bryce Hool University of Wisconsin, Madison Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 43, Issue 3, October 1976, Pages 439–445, https://doi.org/10.2307/2297220 Published: 01 October 1976 Article history Received: 01 January 1975 Accepted: 01 December 1975 Published: 01 October 1976

Jean-Michel Grandmont, Guy Laroque; On Temporary Keynesian Equilibria, The Review of Economic Studies, Volume 43, Issue 1, 1 February 1976, Pages 53–67, ht

Journal Article The Disequilibrium Approach to Monopolistic Price Setting and General Monopolistic Equilibrium Get access Jean-Pascal Benassy Jean-Pascal Benassy CEPREMAP Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 43, Issue 1, February 1976, Pages 69–81, https://doi.org/10.2307/2296601 Published: 01 February 1976 Article history Received: 01 July 1974 Accepted: 01 March 1975 Published: 01 February 1976

A major conceptual error in the standard BLS and Lebergott unemployment estimates for 1930-43 is reported. Emergency workers (employees of government contracyclical programs such as WPA) were counted as unemployed on a normal-jobs-to-be-created instead of job-seekers unemployment definition. For 1933-41, the corrected unemployment levels are reduced by 2-3.5 million people and the rates by 4-7 percentage points. The corrected data show strong movement toward the natural unemployment rate after 1933 and are very well explained by an anticipations-search model using annual full-time earnings.

This paper is concerned with tax policies designed to obtain an improved competitive allocation in the presence of consumption externalities. It is known that the full optimum can, in general, be attained only through the imposition of excise taxes at different levels for different individuals. Since these may be ruled out (possibly because of implementation costs), one is confined to consider second-best taxes. The common interpretation of the Pigouvian principle has called for taxes on the externality-creating commodities. With no relationships between the consumption of different commodities the Pigouvian principle is obviously impeccable. But the existence of substitutes or complements for an externality-causing commodity raises the possibility of indirect policies: treating the externality through the markets for related goods. Obviously, if the direct policy is not feasible, the indirect treatment may provide some partial remedy. We show, however, that even when direct policies are available, the overall optimum may involve only indirect policies. An example with such a result is provided in the paper. We also list a number of cases in which the traditional prescription is confirmed, and the overall optimum involves only direct policies.