Atlantic Economic Journal articles from June 1992

Atlantic Economic Journal archives from June 1992

The lottery as an alternative source of state revenue.
June 1, 1992... I. Introduction At this time, 32 states and the District of Columbia have lotteries. In each of the other 18 states, some degree of interest in a lottery has been expressed through political means. Indeed, lottery bills have been prefiled...

On the taxation of exhaustible resources under monopolistic competition.
June 1, 1992... I. Introduction Since the publication of Hotelling's classic paper, a number of insights have been gained into the problem of the optimal pattern of production of exhaustible resources. In that paper, Hotelling [1931] also considered...

Dutch social policy in the 1980s: a changing role of the public sector.
June 1, 1992... I. Introduction The growth of the welfare state has been one of the most significant social and economic developments in the industrialized democracies with managed market economies [OECD, 1981]. There has been a successful partnership...

Multidimensional commodity structures.
June 1, 1992... While measurement theory is a fundamental part of analysis in the natural sciences and has had interesting applications in psychology, economists have appealed to measurement theory mainly in the theory of utility. Historically, economic theory...

Progressivity: a shot in the dark.
June 1, 1992... With three out of five states in serious financial trouble, with total state deficits projected to be at least $35 billion in fiscal 1992, and with balanced budget restrictions in 49 out of the 50 states, states are in dire need of revenue...

A tariff game with intermediate imports.
June 1, 1992... I. Introduction Neociassical economic theory views tariffs as a possible result of market distortions. A rationale for tariffs exists in the presence of externalities, political lobbying, and market power of large countries....

National Science Foundation funding in economics and chemistry.
June 1, 1992... Budget cuts facing many universities have motivated administrators to seek outside sources of funding. As a result, many departments are experiencing increasing pressure to obtain outside grants. Pressure may be particularly severe for social...

A two-stage model of the effect of economic conditions on election outcomes.
June 1, 1992... I. Introduction A commonly held political-economic belief is that macroeconomic conditions are an important determinant of election outcomes. A growing economy is typically thought to benefit the incumbent party, while a declining...

Hiring functions and a new index for measuring mismatch: some empirical results for European countries.
June 1, 1992... I. Introduction Since the end of the 1970s, high and persistent unemployment rates have been a major issue in Europe. During the last 10 or 15 years, almost all European countries have witnessed an increase in Non-Accelerating Inflation...

Panama's exports and its sovereign debt.
June 1, 1992... 1. Introduction The Purpose of this paper is to examine the effects of Panama's exports on Panama's debt burden. It will be shown that if the Panama debt-export ratio is constant, then an export promotion policy can reduce the debt...

A note on Ricardo's differential rent theory. (David Ricardo)
June 1, 1992... One of David Ricardo's most important and lasting contributions to economics was his theory of rent. In brief, Ricardo defined rent as the difference in the costs of production between different tracts of land, and the different costs he in...

Countercyclical markups.
June 1, 1992... Rotemberg and Saloner [AER, June 1986]have shown that upward shifts in demand can reduce the maximum mark-up that is sustainable as an equilibrium in an oligopoly supergame. A direct implication of this result is that profit margins should tend...

The production possibility curve and the investment multiplier.
June 1, 1992... In a two sector model, the production possibility curve (PPC) illustrates the combinations of consumption and investment goods that can be produced with full employment of all resources. Alternative resource positions create different output...

Forecasting expected money.
June 1, 1992... Considerable research has been conducted into the study of the impact of unexpected and expected money on various financial and real variables over the past two decades. Much less effort, however, has been expended into the determination of...

Stationary velocity and the long-run link between money and prices.
June 1, 1992... The objective of this note is to show that the coexistence of a long-run link between nominal money and prices [J. J. Hallman, R. D. Porter, and D. H. Small, AER, 1991, pp. 841-581 and stationary velocity [R. F. Engle and C. W. J. Granger,...

Wagner's law: new evidence.
June 1, 1992... This note examines the validity of Wagner's law for 30 randomly selected states in the United States. Wagner's law of increasing state activity implies that the income elasticity of demand for public goods is greater than unity. This law has...

The growth of government: natural laws and contingent effects.
June 1, 1992... Dennis Mueller recently observed, "Thus, little consensus exists in what the key determinants of the growth of government are... Some variables appear to be significant... but even a generous allowance for their impact leaves much of the...

Income elasticities and trade effects: an alternative approach.
June 1, 1992... Bela Balassa [European Economic Integration, 19751 suggested that the trade creation and trade diversion effects of a customs union can be measured by calculating pre-pact and post-pact income elasticities of demand by the member nations. If...

Money demand, perfect capital mobility, and fiscal policy.
June 1, 1992... In an interesting paper, Holmes and Smyth [JPE, 1972] propose that the transactions demand for money should be a function of disposable income (national income after tax) rather than national income based on theoretical and empirical...

Female education and fertility differentials.
June 1, 1992... Ever since Becker's path breaking 1960 article on fertility, it has been argued that given stable preferences, the wife's wage rate and husband's income play the predominant roles in determining the desired number of children [Willis, AER,...