Economic Inquiry

Articles from Vol. 39, No. 3, July

A Quality-of-Play Model of a Professional Sports League
PHILIPPE CYRENNE [*] Assuming that consumers value both the absolute and relative quality of play, I compare the choice of ticket prices, team qualities, and number of games played in a noncooperative outcome versus that chosen by a social planner....
A Theory of Time Preference
GRANT A. TAYLOR [*] This article proposes that people generally prefer present consumption to future consumption because their expected utility from consumption (eventually) falls as their mental and physical abilities (eventually) decline with...
Bequest Motives, Social Security, and Economic Growth
JUNXI ZHANG [*] This article conducts a systematic analysis of four bequest motives in a simple model of endogenous growth. It analyzes how bequest motives affect fertility savings, growth, and the effects of pay-as-you-go Social Security. It is...
Firm Size, Earnings, and Displacement Risk
RUDOLF WINTER-EBMER [*] Analogous to the well-documented firm size-wage differential, there also exists a differential in layoff risk according to firm size. Using Austrian data I discuss several reasons for this puzzle, including on-the-job training...
Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention
E. WOODROW ECKARD [*] This article argues that the 1976 introduction of free agency increased competitive balance in Major League Baseball. The evidence is based on a new empirical measure that captures the key dynamic element of balance: year-to-year...
Gavel-to-Gavel Congressional Television Coverage as Political Advertising: The Impact of C-Span on Legislative Sessions
KAMAL P. UPADHYAYA [*] This article examines the effect of television on the length of legislative sessions at the federal level in the United States. Data from the U.S. Congress during the period 1972-96 are employed, during part of which time...
Habitual and Occasional Lobbyers in the U.S. Steel Industry: An Em Algorithm Pooling Approach
BERNARD YEUNG [*] Using U.S. steel firm data, we find that lobbying for import protection appears to be habit-forming. To identify heterogeneity in lobbying behavior among firms, we use an expectation-maximization algorithm to sort our firms into...
Majoritarian Management of the Commons
YONG J. YOON [*] This article analyzes usage of a common property resource, "the commons," under collectivization as compared with more familiar privatization institutional arrangements. Particular emphasis is on majority decision rules. When separate...
Physician Market Power-Evidence from the Allocation of Malpractice Premiums
NORMAN K. THURSTON [*] Based on evidence from variations in malpractice premiums, physicians have local market power, at least in some dimensions. It is observed that higher-cost physicians pass on a significant portion of idiosyncratic costs to...
Some Comments on Free-Riding in Leontief Partnerships
HANS K. HVIDE [*] Holmstrom (Bell Journal of Economics, 13, 1982 324-40) showed that freeriding is inevitable in partnerships where inputs are substitutes. Legros and Matthews (Review of Economic Studies, 68, 1993, 599-611) and Vislie (Journal of...
The Rate of Return on Investment in Wine
JOYCE P. JACOBSEN [*] Is wine an investment alternative to stocks and bonds? First, we review prior studies regarding the pecuniary rate of return to wine and other alternatives to financial assets. Next, we calculate the rate of return to holding...
Wage Differentials of Transportation Industries: Deregulation versus Regulation
This article investigates the wage differentials of similar occupations in three for-hire transportation carrier industries, railroad, truck and motor bus, under regulation and deregulation. The estimation results indicate that the union wage gaps...