Atlantic Economic Journal articles from June 1989

Atlantic Economic Journal archives from June 1989

The effects of monetary instability on the extent of vertical integration.
June 1, 1989... The Effects of Monetary Instability on the Extent of Vertical Integration I. Introduction Ronald Coase [1973] provided the theoretical foundation for all subsequent studies of the determinants of business integration. Although the...

Campaign contributions by political parties: ideology vs. winning.
June 1, 1989... Campaign Contributions By Political Parties Ideology vs. Winning An oft quoted definition of a political party is, "a team seeking to control the governing apparatus by gaining office in a duly constituted election" [Downs, 1957, p. 25]....

Sign-solvability in economic models through plausible restrictions.
June 1, 1989... Sign-Solvability in Economic Models Through Plausible Restrictions I. Introduction Traditional economic modeling was mainly based on linear-in-parameters, cardinally measured systems. Recently, qualitatively-oriented models have...

How contestable are airline markets?
June 1, 1989... How Contestable Are Airline Markets? For generations, economists' anecdotes about positive externalities have almost invariably involves bees and apple orchards. With a similar degree of regularity, the profession's current stereotypical...

The dynamic demand for bank discount window borrowing with non-negativity constraints.
June 1, 1989... The Dynamic Demand for Bank Discount Window Borrowing with Non-Negativity Constraints I. Introduction It is widely believed that the Federal Reserve (Fed) continues to employ the borrowed reserve operating procedure originally...

Credit versus monetary theories of macroeconomic fluctuations.
June 1, 1989... Credit Versus Monetary Theories of Macroeconomic Fluctuations I. Introduction Does a decrease in the supply of credit, given the supply of money, necessarily cause a decrease in aggregate demand? Kaldor [1970; 1982], Blinder and...

Income tax progressivity and reform.
June 1, 1989... Income Tax Progressivity and Reform I. Introduction The income tax system is a matter of continued controversy and debate. For example, while many, if not all, people seem to have accepted the idea that the income tax rate should...

Some model-based tests of expectational rationality.
June 1, 1989... Some Model-Based Tests of Expectational Rationality I. Introduction The rational expectations hypothesis has generated a tremendous upheaval in the economics profession partly because, initially, it was mistakenly believed to be the...

Tariffs vs. export quotas.
June 1, 1989... Tariffs vs. Export Quotas It has been shown by James R. Melvin [1986] that no tariff equilibria can be duplicated by import quotas when tariffs have been assumed to exist in both the home country and the foreign country. However, they can...

The economics of public utility regulation.
June 1, 1989... The Economics of Public Utility Regulation I. Economics of Public Utility Regulation Public Utility Regulation grew out of the market imperfection that economies of scale made it inefficient to have more than one firm in the industry....

On the size of the multiplier.
June 1, 1989... On the Size of the Multiplier According to the common wisdom of macroeconomics, the multiplier is greater than unity. However, for small open economies this may be untrue. Take the reasoning of an important textbook as a starting-point...

Unionized wages and employment.
June 1, 1989... Unionized Wages and Employment It is well-known in almost all macroeconomic textbooks that employment (output) will decrease as workers are successful in pushing unionized wages to a higher level. This note reevaluates this belief by using...

The choice of numeraire in price uncertainty models.
June 1, 1989... The Choice of Numeraire in Price Uncertainty Models In analyzing the effects of price uncertainty on a small trading country in a general equilibrium framework, Flemming, Turnovsky, and Kemp [RES, 1977] suggest that the use of the arithmetic...

Trigger prices for margin calls.
June 1, 1989... Trigger Prices for Margin Calls The 984-point decline in the DJIA between August and December 1987 revived an unhappy reality of the market--margin calls. Plummeting prices can reduce the equity of an investor who buys on margin from an...

Profit margins and concentration.
June 1, 1989... Profit Margins and Concentration Straightforward oligopoly models reveal that price cost margins are influenced by the level of industry concentration. Also, there is ample empirical evidence for this influence. It is customary to use the...

New evidence supporting the screening hypothesis.
June 1, 1989... New Evidence Supporting the Screening Hypothesis Whether or not schooling is used as a screening device has not been conclusively answered despite the research done in this area, for example, see Layard and Psacharopoulos [1974], and Taubman...