Economic Inquiry

Articles from Vol. 27, No. 3, July

Agency Growth, Salaries and the Protected Bureaucrat
AGENCY GROWTH, SALARIES AND THE PROTECTED BUREAUCRAT I. INTRODUCTION In recent years, increased attention has been directed towards understanding bureaucratic behavior and its implications for economic performance. A key element of this literature...
An Equilibrium Politico-Economic Model
AN EQUILIBRIUM POLITICO-ECONOMIC MODEL I. INTRODUCTION Recent empirical studies by Alesina and Sachs [1986] and Haynes and Stone [1987] have found that political elections have significant implications for the time paths of employment and inflation....
Capital Gains and the Rate of Return on a Stradivarius
CAPITAL GAINS AND THE RATE OF RETURN ON A STRADIVARIUS I. INTRODUCTION No name in the annals of violin-making has evoked more interest and sense of mystery than that of Antonio Stradivari. During his long lifetime (1644-1737) Stradivari probably...
Does the Central American Common Market Benefit Its Members?
DOES THE CENTRAL AMERICAN COMMON MARKET BENEFIT ITS MEMBERS? I. INTRODUCTION The members of the Central American Common Market (CACM) have recently taken measures to revitalize their union: they have formally pledged to improve regional economic...
Economics: On-Line and Interactive
ECONOMICS: ON-LINE AND INTERACTIVE I. INTRODUCTION Computers, though radically altering economic research over the last 30 years, have only recently begun to change teaching and have had limited impact on economic reasoning and methodology...
Production Externalities and Long-Run Equilibria: Bargaining and Pigovian Taxation
PRODUCTION EXTERNALITIES AND LONG-RUN EQUILIBRIA: BARGAINING AND PIGOVIAN TAXATION I. INTRODUCTION Economists have taken two distinct approaches to externality problems. In one, originating with Pigou [1920], the government imposes "corrective"...
Supply Shocks and the Interest Rate
SUPPLY SHOCKS AND THE INTEREST RATE I. INTRODUCTION A new approach to business cycles that stresses intertemporal substitution possibilities and market clearing equilibria has recently gained prominence. Key models that use this "new classical"...
Taxation, Aggregate Activity and Economic Growth: Cross-Country Evidence on Some Supply-Side Hypotheses
TAXATION, AGGREGATE ACTIVITY AND ECONOMIC GROWTH: CROSS-COUNTRY EVIDENCE ON SOME SUPPLY-SIDE HYPOTHESES I. INTRODUCTION With the advent of interest in so-called "supply-side" economics, the effects of taxation on aggregate economic activity...
Tax Rates and Labor Supply in Fiscal Equilibrium
TAX RATES AND LABOR SUPPLY IN FISCAL EQUILIBRIUM I. INTRODUCTION If the government changes the tax on wage income, what happens to aggregate labor supply? This question is at the core of debates between proponents of supply-side and Keynesian...
What's Wrong Here?
WHAT'S WRONG HERE? I. INTRODUCTION In the interest of enhancing the economic way of thinking, many professors encourage students to read the Wall Street Journal or other business periodicals (a passive role), while others, following Kelly [1983],...