Atlantic Economic Journal articles from June 1991

Atlantic Economic Journal archives from June 1991

Forward market intervention and exchange rate variability: a simulation approach.
June 1, 1991... I. Introduction Since the early 1980s, major industrial countries have been suffering severe multi-lateral trade disequilibrium -- the U.S. exhibits huge trade deficits against Japan, Canada, West Germany, and the Asian newly...

The problem of geographic market definition: geographic proximity vs. economic significance.
June 1, 1991... I. Introduction The concept of a market is somewhat of an enigma for economists. Most economic analysis focuses on the operation of markets and on how well or poorly they function. Thinking in terms of market adjustments is so well...

The effect of job tenure on the earnings of women.
June 1, 1991... I. Introduction The reasons for the existence and magnitude of the male-female wage gap have long interested economists. Many empirical studies have examined the explanations for this gap, and for the variance of women's earnings. ...

The cyclical sensitivity of white-collar skill margins. (sensitivity of white-collar skill margin to the business cycle)
June 1, 1991... I. Introduction economists have been interested in the skill margin (SM), defined as the ratio of the earnings of workers in the highest skill level of an occupation to the earnings of workers in the lowest skill level, in part because...

Pricing insurance with costly information. (need for complete information about insureds' care)
June 1, 1991... I. Introduction It is well known that a risk averse individual, who purchases actuarially fair insurance, will choose full coverage and exercise optimal care. (1) Under such conditions, the problem of moral hazard does not arise....

The "news vendor problem" revisited: the entrepreneurial firm versus the cooperative.
June 1, 1991... This note considers the short-run employment policy of a risk-neutral price taker facing uncertain demand for a nonstorable good, whose production follows the continuous, monotonically increasing and strictly concave short-run production...

Currency substitution and exchange rate dynamics; a note.
June 1, 1991... I. Introduction In an interesting paper Girton and Roper [1981] examine the effects of currency substitution on exchange rate variability. They find that currency substitution increases exchange rate volatility and that the exchange...

A note on nonlinear prices under rate-of-return regulation. (includes appendix)
June 1, 1991... I. Introduction Since the 1962 publication of the seminal work of Averch and Johnson (A-J), many studies have analyzed the effects of linear price under rate-of-return regulation, notably, Baumol and Klevorick [1970], Bailey [1973],...

An economic analysis of transplant organs: a comment and extension.
June 1, 1991... I. Introduction In a recent issue of this Journal, Barney and Reynolds (B-R) analyze three alternative organ procurement policies: the current altruistic system, a free market system, and a system of presumed consent (which B-R...

An economic analysis of transplant organs: reply.
June 1, 1991... Medical breakthroughs in transplant operations have been occurring, and likely continue to occur into the foreseeable future. With the potential for so much resultant good, it is vitally important that organ procurement policies and procedures...

Duopoly conjectures.
June 1, 1991... The concept of consistent conjectures (CCE), in which a firm's expectations about its rivals' reaction functions coincides with the rivals' profit-maximizing reaction functions, held initial promise as a resolution of the oligopoly equilibrium...

Demand induced price changes - substituttes and complements: a cautionary comment.
June 1, 1991... The typical account of substitutes and complements presented in most economic texts is as follows: if an increase in the price of one good leads to an increase in demand for the other good, the two goods are substitutes and if in increase in...

Robust estimation of multiperiod price and quantity indices.
June 1, 1991... When the prices and quantities of K commodities are observed over T periods, Blankmeyer [AEJ, June 1990, pp. 17-26] proposes to estimate price and quantity indices by a two-way analysis of variance (ANOVA): [v.sub.rt] = z + [p.sub.r] +...

A generalization of the model structure of tbe Gordon Barro analysis.
June 1, 1991... Barro and Gordon (BG) [JPE, August 1983] develop a classic theory of excessive monetary growth and inflation in a natural rate mode. Since then, the BG model is widely used in macroeconomic analysis [Backus and Drifill, AER, 1985; RES, 1985;...

The Mundell proposition with productive public spendings.
June 1, 1991... International macroeconomic literature has long agreed that fiscal policy is totally ineffective in changing the output under flexible exchange rates with perfect capital mobility. This result is dubbed the Mundell proposition [Can. J. of Eco....

Vertical disintegration, industrial classification, and long-term trends.
June 1, 1991... In describing long-term trends affecting industries or sectors of an economy, one must take into account changes in the vertical dimension of production functions at the firm level. Consider, for example, how impressions about growth of...

Economists on illegal drugs: a survey of the profession.
June 1, 1991... Economists such as Murray Rothbard, Milton Friedman, Gary Becker, George Schultz, and Thomas Sowell have gone on record supporting the legalization of drugs. Do these endorsements reflect the opinion of professional economists at large? Do...

The effects of gun availability on suicide rates.
June 1, 1991... Sommers [AEJ, March 1984, pp. 67-9] showed by means of regression analysis that the U. S. suicide rate by firearms in 1970 was significantly predicted by the states' gun control law strictness and the states' divorce rates. Templeman [AEJ,...