Economic Inquiry articles from October 1995

Economic Inquiry archives from October 1995

On the origin of monetary exchange.
October 1, 1995... There are good reasons to think that the nature of money is not yet rightly understood. John Law [1705] I. INTRODUCTION If it were possible to plan and execute trades in goods, services, and financial assets at zero cost in time and other...

Fight, fold or settle?: Modelling the reaction to FTC merger challenges. (Federal Trade Commission)
October 1, 1995... I. INTRODUCTION Scholars studying law and economics have identified four stages through which every legal dispute moves. The first stage involves an alleged injury which leads to the legal dispute. Second, the injured party decides whether to...

Can government enforcement permanently alter fertility? The case of China.
October 1, 1995... I. INTRODUCTION In developing countries, per capita output growth objectives are often stymied by high birth rates.(1) Traditional values, ignorance of birth control technology and labor-intensive farming are all factors which contribute to...

International R&D spillovers and OECD economic growth. (research and development; Organization for Economic Cooperation and Development)
October 1, 1995... I. INTRODUCTION This paper searches for evidence of knowledge spillovers operating at the global level. Using research spillovers as a measure of knowledge flows, it studies the extent to which national research and development (R&D)...

Demographics, productivity growth and the macroeconomic equilibrium.
October 1, 1995... I. INTRODUCTION The demographics in the United States are, as in other industrial countries, experiencing drastic changes. The birth rate is falling while life expectancy is rising. As a consequence, the ratio of the elderly to the working-age...

Optimal 'mismatch' and promotions.
October 1, 1995... I. INTRODUCTION A substantial proportion of workers are employed in jobs for which they appear to be either overqualified or underqualified. For instance, using data from the Panel Study of Income Dynamics, Sicherman [1991] finds that 40...

Charity without altruism.
October 1, 1995... I. INTRODUCTION Evidence suggests that many charitable contributions are channeled to organizations (or groups of people) that produce excludable goods (or services) that are sold on the market. Some of the frequently noted examples are in the...

Recessions and recoveries in real business cycle models.
October 1, 1995... I. INTRODUCTION Do general equilibrium business cycle models generate business cycles that look like the business cycles observed in a modern industrial economy? The early real business cycle literature as exemplified by Kydland and Prescott...

Testing for convergence of the EU regional economies.
October 1, 1995... I. INTRODUCTION Variations in the economic performance of different regions of the European Union have become a matter of increasing concern for policymakers in recent years.(1) This paper is, however, less concerned with the details of the...

Habit persistence and the nominal term premium puzzle: a partial resolution.
October 1, 1995... I. INTRODUCTION The consumption-based capital asset pricing model (CCAPM) has become the dominant paradigm in asset pricing theory because of its intuitive characterization of asset risk. That is, unlike expectations-based asset pricing...

Teaching tools: teaching methods in undergraduate economics.
October 1, 1995... I. INTRODUCTION In 1970 Nobel Laureate George Stigler argued that "economics belongs in everyone's education once we have learned how to teach it." But because the logic of economics is not easy to learn or teach, he concluded that "Economics...