Quarterly Journal of Economics articles from May 1994

Quarterly Journal of Economics archives from May 1994

Monetary policy, business cycles, and the behavior of small manufacturing firms.
May 1, 1994... I. INTRODUCTION This paper presents evidence on the cyclical behavior of small versus large manufacturing firms, and on the differential response of the two kinds of firms to monetary policy. Our goal is to gain some empirical sense of the...

Living by the "Golden Rule": multimarket contact in the U.S. airline industry.
May 1, 1994... During his testimony, Mr. Steven B. Elkins (Senior Director of marketing system development for Northwest Airlines) cited an example in which Northwest lowered fares on night flights that were flying with empty seats in a number of routes from...

Changes in the demand for skilled labor within U.S. manufacturing: evidence from the annual survey of manufactures.
May 1, 1994... INTRODUCTION As has been well documented, skill differentials rose sharply over the 1980s. Current Population Survey (CPS) data show that earnings differentials between high-school and college graduates rose by more than ten percentage paints...

Small deviations from maximizing behavior in a simple dynamic model.
May 1, 1994... I. INTRODUCTION This paper presents a market model in which some of the agents are not perfect maximizers. The basic intuition that motivates this paper is that the presence of nonmaximizers creates incentives for maximizers to take advantage...

Distributive politics and economic growth. (includes appendices)
May 1, 1994... A crude distinction between economics and politics would be that economics is concerned with expanding the pie while politics is about distributing it. In this paper we analyze the relationship between the two. We focus on how an economy's...

Thy neighbor's keeper: the design of a credit cooperative with theory and a test. (includes appendices)
May 1, 1994... I. INTRODUCTION Economists now appreciate that resource allocation in less developed economies is influenced by nonfirm economic institutions such as credit cooperatives, sharecropping [Stiglitz 1974], market interlinkages [Braverman and...

An indicator of future inflation extracted from the steepness of the interest rate yield curve along its entire length. (includes appendices)
May 1, 1994... The idea that the slope of the term structure of interest rates can be used as an indicator of whether monetary policy is currently tight or loose is not new. But the idea has generated some new research since 1988 when Manuel Johnson [1988],...