Economic Inquiry articles

Recent articles from Economic Inquiry

The slippery slope of concession.
April 1, 2009... I. INTRODUCTION Given that conflict is costly, why does it occur? When both parties believe that they are the probable winner, and the winner captures a positive surplus, conflict is the obvious consequence. Should we, then, observe conflict only when both parties expect to win? Many...

Uncertainty and monetary policy rules in the United States.
April 1, 2009... I. INTRODUCTION "Uncertainty is not just an important feature of the monetary policy landscape; it is the defining characteristic of that landscape" (Greenspan 2003). Uncertainty is a central issue in monetary policy, as the quote from Alan Greenspan above illustrates. Empirical...

The effects of uncertainty on the leverage of nonfinancial firms.
April 1, 2009... I. INTRODUCTION The determinants of capital structure have always attracted considerable attention in the literature. In their seminal work, Modigliani and Miller (1958) derive the theoretical result that under the assumption of perfect capital markets, financial and real decisions are...

Productivity growth and technological diffusion through foreign direct investment.
April 1, 2009... I. INTRODUCTION The recent surge in cross-border financial flows has generated an intense debate among economists and policymakers on the benefits and costs of the ongoing international financial integration. In principle, financial integration can promote productivity growth by allowing...

Population growth and industrialization.
April 1, 2009... I. INTRODUCTION What are the impacts of population growth on a country's possibility of achieving industrialization? On the one hand, if population growth always leads to higher economic activities, why did China before 1840, the country with the largest population in the world at that...