Jean-Pierre Danthine, John B. Donaldson; Certainty Planning in an Uncertain World: A Reconsideration, The Review of Economic Studies, Volume 48, Issue 3, 1

[This paper investigates the distribution of the least squares estimator of the coefficient α in the model @c"t = @a@c"t -"1 + @?"t where the @?"t where the @?"t are independently distributed N (O, @s extasciicircum2). The exact finite sample and limiting distributions are calculated when α ≥ 1 and finite sample distributions when α extless 1. These distributions are used to compute the power functions of tests of the random walk hypothesis α = 1 as well as the hypotheses.]

Two theorems are derived about social choice functions, which are defined on comprehensive convex subsets of utility allocation space. Theorem 1 asserts that a linearity condition, together with Pareto optimality, implies that a social choice function must be utilitarian. Theorem 2 asserts that a concavity condition, together with Pareto optimality and independence of irrelevant alternatives, implies that a social choice function must be either utilitarian or egalitarian. These linearity and concavity conditions have natural interpretations in terms of the timing of social welfare analysis (before or after the resolution of uncertainties) and its impact on social choices.

P. K. Trivedi, B. M. S. Lee; Seasonal Variability in a Distributed Lag Model, The Review of Economic Studies, Volume 48, Issue 3, 1 July 1981, Pages 497–505, ht

A time-series regression model of the US manufacturing sector is developed to estimate the direct and indirect relationships of public regulations and productivity for the 1973 to 1977 period. Preliminary results show that 12 to 21% of the productivity slowdown is blamed on regulation. Other contributing factors are a reduced non-labor to labor input (15%), average cyclical impact (0 to 15%), and a combination of changes in labor composition, expenses for research and development, and shifts in sectoral output. The study focuses on measured productivity, and the results have little implication to true productivity growth. 14 references, 24 tables. (DCK)

Inflation has become, the 1970's, an important economic phenomenon that must be taken into account analyzing the determinants of labor supply trends. Traditional labor supply theory has focused on the overriding importance of real wage growth as a primary determinant of both the long-run secular decline hours of work and the postwar increase the labor force participation rate of married women. Within this context, any labor supply effects of price level changes have been subsumed under the overall effect of real wages. However, despite unusually rapid price increases as well as stagnation the growth of productivity and real wages the last decade, the growth women's labor force participation has continued and, if anything, accelerated the last decade. Thus it is clear that, today, factors other than real wage growth must lie behind this continuing upward trend. Inflation is well worth exploring as a possible independent influence on labor supply, because of both its growing visibility and the frequency with which one hears comments along the lines of in these inflationary times, a family needs two salaries to make ends meet. Our objective this paper is to explore the possible effects of inflation on women's labor supply trends. As a first step this direction, we present some empirical results, relating changes the labor force participation rates of women various age groups to inflation as well as other independent variables, covering the period 1956-77. Inflation clearly appears to have an effect on labor force participation rates above and beyond the effect it generates through reducing the real wage. By next examining the primary sources of women's labor force growth the last decade and their implications for long-run labor supply, we suggest the likely importance of inflationary expectations sustaining the long-term growth of women's labor supply, particularly the prime age group.