Atlantic Economic Journal articles from December 1995

Atlantic Economic Journal archives from December 1995

Economic theory, institutions, and economic policy.
December 1, 1995... I. Introduction The purpose of this paper is threefold. First, it emphasizes that reference to the institutional framework represents an integral part of economic theory if the latter is to be conceived of as a tool mainly directed to the...

On the interactions of economics and technology.
December 1, 1995... Technological advancement is a wonderful thing. It enables us to produce more at lower real cost, thus letting us enjoy a higher standard of living with less effort. It introduces new products that we did not know we wanted, further augmenting...

Testing price-exchange rate noncausality: results from a vector error correction model.
December 1, 1995... I. Introduction Many recent papers have tested the random walk or efficient market property of the nominal exchange rate [Caves and Feige, 1980; Fratianni et al., 1987]. However, these studies have only been interested in testing whether or...

Sales tax exemptions and credits: time to reevaluate.
December 1, 1995... I. Introduction Legislators face conflicting goals between vertical equity and revenue generation with the sales tax. Gold [1992] argues that the equity issue is of growing importance to legislatures due to increased public exposure of the tax...

Information reporting and tax compliance: an investigation using individual TCMP data. (Tax Compliance and Measurement Program)
December 1, 1995... I. Introduction The economics literature on compliance has proliferated over the two decades following the seminal contribution of Allingham and Sandmo [1972]. Data constraints, however, have restricted most empirical studies to using...

Bimodal issues, the median voter model, legislator's ideology, and abortion.
December 1, 1995... I. Introduction The median voter model is widely used in the public choice literature to explain how legislators select their positions or vote on various issues. According to the median voter model, if voter preferences are unimodal and can...

Theory of protectionism fluctuations caused by a support-maximizing government.
December 1, 1995... I. Introduction The level of protection can be explained as an equilibrium in the political market of protection, with the government or parties as monopolistic suppliers and pressure groups as demanders [Hillman, 1982]. Protection suppliers...

A note on tests of efficient market hypotheses: the case of the forward exchange rate.
December 1, 1995... I. Introduction According to the definition of market efficiency [Fama, 1970], market prices reflect all available information instantly: 1) in the absence of transaction costs, 2) given costless information, and 3) for homogeneous...

The Economics of Non-human Species.
December 1, 1995... In 1776, Adam Smith published An Inquiry into the Nature and Causes of the Wealth of Nations, an event that has come to be considered as marking the beginning of economics as a formal academic discipline. More broadly, it was an inquiry into the...

Eastern European economic reform: transition or mutation?
December 1, 1995... In a recent article in this journal, the author argued that the Commonwealth of Independent States (CIS) did not appear to be transitioning to free enterprise [Rosefielde, 19921. Although market elements have emerged, including privatization,...

Consumer's surplus in monopolistic competition a la Dixit and Stiglitz.
December 1, 1995... Dixit and Stiglitz's ["Monopolistic Competition and Optimum Product Diversity," AER, 1977] model of monopolistic competition has been used by a number of economists in recent years to gain insight into phenomena ranging from monetary policy to...

The explanation of business investment revisited.
December 1, 1995... Jan Tinbergen once observed that "it is almost a tautology to say that investment is governed by profit expectations." The problem is that profit expectations are very difficult to measure. Theories of business investment may differ in terms of...

Does lower income inequality improve a country's investment climate?
December 1, 1995... The distribution of income is closely intertwined with the process of economic growth and development. Many people have, for example, already studied the relationship between income distribution and the level of per capita income. This note...