This paper examines the role of state dependence in explaining the retirement status of older men. Following from the work of Heckman and others, apparent and true state dependence are distinguished in a dynamic retirement model. Using a 2-year longitudinal sample of men aged 58-62 in 1969, apparent and true state dependence are controlled for through estimation of an error-components model and a retirement-transition model. The results indicate substantial evidence of state dependence.

This paper argues that an aggregate preferred habitat for investors exists on (or about) the last day of the calendar month, due to standardizations in the nation's payments system resulting in a concentrated flow of funds on this date. Thus, equilibrium yield discounts are predicted for securities maturing on such dates. Empirical tests on monthly and daily Treasury bill data support the principal hypothesis, as well as several ancillary hypotheses. The results have implications for Treasury debt management, for the short-term cash and debt management practices of businesses and banks, and for the empirical estimation of daily, weekly, or monthly return premiums on risky securities.

Journal Article A Note on the Existence of Single Price Equilibrium Price Distributions in Sequential Search Models Get access William P. Rogerson William P. Rogerson Northwestern University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 54, Issue 2, April 1987, Pages 339–342, https://doi.org/10.2307/2297522 Published: 01 April 1987 Article history Received: 01 May 1986 Accepted: 01 November 1986 Published: 01 April 1987

Abstract. While factors such as inflation, technological change and growth often have been discussed in connection with the adequacy of provisions for depreciation under a historical cost model, there is another dimension to the capital maintenance problem and it concerns the multiplier effect of depreciation. When an amount equal to depreciation is reinvested, a firm's productive capacity tends to increase. Reinvestment of depreciation also increases a firm's financial capital if book depreciation is more accelerated than economic depreciation. Based on a model developed by Ijiri (1967), this paper derives an index of this growth due to depreciation. The index estimates a bias in conventional depreciation methods that has been overlooked in the literature on the subject. This bias has implications for inflation accounting because if conventional depreciation methods have a built‐in growth bias, adjustments for inflation may be a type of double counting. A second implication mentioned concerns the bias in accounting rates of return. Résumé. Bien que des facteurs tels l'inflation, les changements technologiques et la croissance ont souvent été examinés à propos de la pertinence des provisions pour dépréciation dans le cadre du modèle au coût historique, un autre aspect du problème de préservation du capital subsiste et il concerne l'effet multiplicateur de l'amortissement. Lorsqu'un montant égal à l'amortissement est réinvesti, la capacité d'exploitation de la firme a tendance à s'accroître. Le réinvestissement de l'amortissement fait aussi augmenter le capital de la firme si l'amortissement comptable est plus accéléré que la dépréciation économique. En se basant sur un modèle élaboré par Ijiri (1967), cet article dérive un indice de cette croissance attribuable à l'amortissement. L'indice estime un biais des méthodes traditionnelles, qui a été négligé dans les recherches consacrées au sujet. Ce biais a des implications en comptabilité des effets de l'inflation, car si les méthodes d'amortissement traditionnelles comportent implicitement ce biais de croissance, les redressements relatifs à l'inflation peuvent être assimilés à un double comptage. Une deuxième conséquence est signalée, soit le biais relatif aux taux de rendement comptable.

A structural consumption model incorporating endogenous liquidity constraints is fit to a cross section of 798 U.S. families. Liquidity constrained families are estimated to constitute 19.4 percent of the population sampled, a group that accounts for 16.7 percent of consumption in the population sampled. In-sample simulations of the model suggest that a temporary tax has three to four times more impact on aggregate consumption than it would if liquidity constraints were not in effect. Copyright 1987 by The Econometric Society.

The economic consequences of debilitating illness are defined and then estimated for one such illness--multiple sclerosis. Economic losses are defined as the consumption losses to the affected household because of illness. These losses are measured as the change in earnings of all family members plus the increase in gross (not out-of-pocket) medical costs. Earnings models are specified and estimated, and gross medical costs calculated for multiple sclerosis. The average annual loss to the multiple sclerosis household is $5, 336 per year in 1976 dollars; the estimated aggregate decline in consumption for the year 1976 was $0.656 billion. Lifetime costs (discounting by 0.06) total $207, 200 per multiple sclerosis household and $25.50 billion for society as a whole for the current (1976) pool of multiple sclerosis patients, and $30.45 billion for all future multiple sclerosis patients. Copyright 1987 by MIT Press.

Voluntary Disclosure, Management forecasts, Intraindustry effect, Information dissemination

Abstract. In this paper, a service department chooses a fixed/variable cost combination based on the forecasts of two operating departments. The operating departments then make service usage decisions, and the service department provides the level of service demanded. The allocation of fixed and variable service department costs is used to: (1) encourage efficient short term use of the service and (2) encourage accurate forecasting by the operating departments. Three approaches are used to achieve these objectives — incentive compatible allocations, a modified Soviet incentive scheme, and a Groves allocation scheme — and we discuss conditions under which these schemes are successful. Résumé. Dans cet article, un atelier de service retient une combinaison de coûts fixes/ variables fondée sur des prévisions de deux ateliers de fabrication. Par la suite, les ateliers de fabrication prennent des décisions relatives à leurs besoins de services, et l'atelier de service fournit le niveau de service exigé. La répartition des frais fixes et variables de l'atelier de service vise à: (1) favoriser une utilisation efficace de l'atelier de service à court terme et (2) favoriser l'élaboration de prévisions précises de la part des ateliers de fabrication. Trois approches sont utilisées pour atteindre ces objectifs — la compatibilité des répartitions et des mesures incitatives, un système incitatif soviétique modifié et un système de répartition de Groves — et nous examinons les conditions nécessaires au bon fonctionnement de ces systèmes.

This paper has two parts. The first part concentrates on modeling transitions out of unemployment using aggregated gross flow data. Models are estimated using monthly transition probabilities for March-April 1984. This analysis produces evidence consistent with negative duration dependence but sheds no light on the role of macroeconomic factors. The second part focuses on this issue. A time-series analysis of the proportion of long-term unemployment using data for four age and sex groups provides evidence that a proportionately greater increase in long-term unemployment in Australia in the 1970s has been associated with reduction in job availability and the effect of certain supply shocks.