Atlantic Economic Journal articles from June 1995

Atlantic Economic Journal archives from June 1995

Money, income, and exchange rate regimes: evidence from the U.K..
June 1, 1995... I. Introduction In econometric exercises, the U.K. is commonly treated as having a small, open economy. This view is supported by the original money-income causality study by Williams, Goodhart, and Gowland [1976]. The present study also...

The relative variability of state income and sales taxes over the revenue cycle.
June 1, 1995... One of the problems that has faced state governments is the cyclical variability of state revenues. Revenues tend to move procyclically while the demand for state government programs tends to be countercyclical. While it would be possible for...

Do country characteristics matter for economic growth among the developed countries?
June 1, 1995... I. Introduction Almost everyone inside and outside of the economics profession believes that the characteristics of individual countries make a large difference in their economic growth. In contrast, there is growing literature on the...

Upgrading labor quality, structural change, and economic development.
June 1, 1995... I. Introduction In addressing issues of economy development, an important analytical tool is a simple, dynamic, general equilibrium model. A common model is the neoclassical model of trade and growth based on the Heckscher-Ohlin trade theory...

More on tariffs vs. import quotas.
June 1, 1995... It has been shown by Pelcovits [1976] and Walter [1971] that with a given tariff or static-equivalent quota, rising import demand will increase the amount of imports under the tariff but will increase the domestic price of the import good under...

Causality tests of export-led growth: the case of Mexico.
June 1, 1995... I. Introduction By examining the incidence of export-led development in Mexico, this paper tests whether exports cause growth, using the Granger causality test, which takes into consideration the time series properties of the data.(1) Previous...

Loan demand, bank failures, and panics: a note.
June 1, 1995... The literature disagrees whether the creation of Federal Reserve System (Fed) has reduced the seasonal movement in interest rates. Miron ["Financial Panics, the Seasonality of Nominal Interest Rate, and the Founding of the Fed," AER, 76, 1986,...

Effect of stochastic income and credit cards on Friedman's rule.
June 1, 1995... Bewley [Em, 1983] conjectured that if uncertainty is introduced in Friedman's [The Optimum Quantity of Money and Other Essays, 1969] model, deflation will exceed the rate of time preference, violating Friedman's rule. Taub [IER, 1989] showed that...

Evidence on commodity prices as a leading indicator of CPI inflation. (consumer price index)
June 1, 1995... Securities markets and the financial press frequently view commodity price movements as indicators of inflationary pressure. Further, some economists have argued that monetary policy should be based upon a commodity standard. Among commodity...

U.S. interest rates and the dollar.
June 1, 1995... This paper examines the causal relationship between interest rates in the U.S. and the exchange value of the dollar. The motivation for the work is based on economic theory which suggests that government borrowing to finance the budget deficit...

Exchange rates and the trade balance: evidence from Germany.
June 1, 1995... The textbook J-curve, which describes the trade balance of a nation initially worsening after a real depreciation of the home currency, then getting better, has drawn increased attention in the past decade. The decline in the exchange value of...

Devaluation and seigniorage in externally indebted countries.
June 1, 1995... The sudden reduction of foreign credit to externally indebted countries requires an increase in trade balances, which governments achieve in part by real devaluations of the debtor country currency. Many analysts have argued that such a policy is...

Convertible bonds and bond-warrant packages: contrasts in issuer profiles.
June 1, 1995... The value of the premiums associated with convertible bonds and bond-warrant packages have been favored topics in financial literature for many years. Most studies have attempted to find methods to establish the value of the securities to...

Do insiders of bankrupt firms trade on private knowledge?
June 1, 1995... Firms operating under Chapter 11 of the 1978 Bankruptcy Reform Act have three options: they can convert to Chapter 7 and liquidate; they can propose a liquidation reorganization within Chapter 11; or, they can emerge from bankruptcy pursuant to a...

Minimum wage laws that reduce labor costs.
June 1, 1995... It may seem obvious that minimum wage laws raise labor costs. Yet, what seems obvious is not necessarily so, especially in efficiency wage models. In these models, firms choose to set wages higher than the opportunity costs of labor to induce...

The decline of strike activity and the post-PATCO era. (Professional Air Traffic Controllers Organization)
June 1, 1995... The annual number of major strikes (involving 1,000 or more workers) by organized labor peaked during the early 1970s. Since then, strike incidence has trended downward. A variety of factors have contributed to the decline in union activism,...

Alcohol consumption and the standard of living in antebellum America.
June 1, 1995... Robert Fogel has suggested that demographic statistics, such as life expectancy, height, weight, and fertility, can provide alternative measures of the standard of living. In a new volume honoring Fogel's accomplishments [Strategic Factors in...

Foreign debt service and economic growth.
June 1, 1995... The paper uses the production-function approach to the sources of growth to estimate the effect of debt service on economic growth in a cross-section of 29 sub-Saharan African countries (SSA). The reduced form of the established model, which has...