Economic Inquiry

Articles from Vol. 27, No. 1, January

An Economic Theory of Apartheid
AN ECONOMIC THEORY OF APARTHEID Apartheid is a regulatory system designed to effect redistributions in favor of white workers and farmers at the expense of black workers and white capitalists. This paper uses a competitive interest group theory...
A Positive Theory of Inflation and Inflation Variance
A POSITIVE THEORY OF INFLATION AND INFLATION VARIANCE Empirically, inflation and the variance of inflation are positively associated. This paper develops a model that provides a potential explanation for this relationship in terms of the incentives...
A Test of Steady-State Government Debt Neutrality
A TEST OF STEADY-STATE GOVERNMENT-DEBT NEUTRALITY This paper investigates whether in the steady state the real interest rate is an increasing function of both the government debt and government spending. Using data from the period between January...
Bank Reserve Requirements as an Impediment to Signaling
BANK RESERVE REQUIREMENTS AS AN IMPEDIMENT TO SIGNALING Effective legal reserve requirements may hamper the private capital market's ability to price bank deposits. In the model developed here, the market has less information about bank assets than...
Co-Movements in Relative Commodity Prices and International Capital Flows: A Simple Model
CO-MOVEMENTS IN RELATIVE COMMODITY PRICES AND INTERNATIONAL CAPITAL FLOWS: A SIMPLE MODEL Suppose a number of countries produce a commodity which employs local labor and a type of capital that is internationally mobile. Within the framework of a specific-factors...
Deadweight Losses and the Saving Response to a Deficit
DEADWEIGHT LOSSES AND THE SAVING RESPONSE TO A DEFICIT Several recent empirical studies have challenged the conventional wisdom that deficits cause a higher interest rate. Many economists are, however, critical of the seemingly implied theoretical...
Do Devaluations Improve the Trade Balance? the Evidence Revisited
DO DEVALUATIONS IMPROVE THE TRADE BALANCE? THE EVIDENCE REVISITED This paper reexamines the effectiveness of devaluation in trade balance adjustment. The question is addressed in a framework which improves the previous empirical literature in several...
Grading Software Programs Accompanying Selected Principles Texts
GRADING SOFTWARE PROGRAMS ACCOMPANYING SELECTED PRINCIPLES TEXTS An increasing number of non-statistical software packages are being written as supplementary instructional material for economics Principles texts. This paper reviews the software programs...
Immigrant and Emigrant Earnings: A Longitudinal Study
IMMIGRANT AND EMIGRANT EARNINGS: A LONGITUDINAL STUDY This paper analyzes the relationship between earnings and the extent of assimilation, cohort quality change, and return migration experienced by the foreign-born population. The study uses the...
International Debts: What's Fact and What's Fiction. Presidential Address to the Western Economic Association, July 2, 1988
SCHWARTZ: INTERNATIONAL DEBTS The official strategy on the international debt problem was breached in May 1987 when Citicorp, acknowledging the likelihood of credit losses on its Latin American loans, announced that it was increasing its reserves...
Involuntary Employment in Contracts with Risky Job Search
INVOLUNTARY EMPLOYMENT IN CONTRACTS WITH RISKY JOB SEARCH The implications of partially insurable job search risk for incentive compatibility in a standard contracting framework are explored. When unemployment spells provoke job search, workers face...