Economic Inquiry

Articles from Vol. 43, No. 1, January

A New Empirically Weighted Monetary Aggregate for the United States
I. INTRODUCTION This article uses an approach to long-run econometric modeling proposed by Pesaran et al. (2001; hereafter PSS) to develop an empirically weighted broad monetary aggregate for the United States and to demonstrate the advantages of...
Are Autocratic Rulers Also Inside Traders? Cross-Country Evidence
I. INTRODUCTION This article explores one aspect of the relation between a country's political structure and its regulation of economic activity. The central premise is that authoritarian governments operate, at least in part, for the purpose of...
A Stochastic Monopsony Theory of the Business Cycle
Two distinct regimes, contractions and expansions, are generated in a model in which goods markets clear and all individuals are optimizing, strict wage and price takers, have fully rational expectations, and are heterogeneous in both preferences and...
A Theory-Based, State-Dependent Phillips Curve and Its Estimation
To explain the existing empirical irregularity about the slope of a Phillips curve, this article provides a model of imperfect competition to short that the slope of a Phillips curve is shock-dependent. We empirically apply a state-space, Markov-switching...
Crony Capitalism and Financial System Stability
I. INTRODUCTION Prior to the Asian financial crisis, the cozy relationships between corporations, governments, and banks were seen as a potent force for economic growth and development. In the wake of the crisis, these same links were derogated...
Cultural and Other Barriers to Motion Pictures Trade
I. INTRODUCTION The U.S. motion picture industry has long dominated world markets, but its recent expansion has been especially dramatic. Hollywood's current share of the world film market has doubled since just 1990, whereas the European film industry...
Debt and Financial Expectations: An Individual- and Household-Level Analysis
I. INTRODUCTION The past decade has witnessed a consumer credit explosion on both sides of the Atlantic, accompanying the sustained economic boom. In the United Kingdom the amount of unsecured borrowing accumulated by individuals and households...
Measuring the Quality of Bank Regulation and Supervision with an Application to Transition Economies
I. INTRODUCTION Financial sector development is closely associated with bank performance given that a major part of the financial sector is still accounted for by banks in a large part of the world. Banks play an essential role in resource allocation...
Modeling, Evaluation, and Methodology in the New Century
I. WHAT IS CHANGING? It appears that any overt expression of interest in methodology is considered a clear sign of weak-mindedness or premature senility. --L. Boland, "Methodology" entry in the New Palgrave Dictionary of Economics As time...
Patents as a Measure of Technology Shocks and the Aggregate U.S. Labor Market
I. INTRODUCTION One of the dominant approaches to macroeconomic research in the past several decades has been the island paradigm of Friedman (1968) and Phelps (1970). In this framework, economic agents operate under incomplete information regarding...
Production Inflexibilities and the Cost Channel of Monetary Policy
This article shows how the existence of production inflexibilities in the form of capacity utilization constraints conditions the magnitude of the response of macroeconomic variables to a money supply stimulus. Capacity is modeled under explicit microfoundations,...
Structural Change in MLB Competitive Balance: The Depression, Team Location, and Integration
I. INTRODUCTION Competitive balance is the object of significant attention in the analysis of pro sports leagues. Recent examples include Depken (1999), Eckard (2001), and Humphreys (2002). Under the uncertainty of outcome hypothesis, imbalance...
Synergies in Recurring Procurement Auctions: An Empirical Investigation
I. INTRODUCTION This study empirically investigates the impact of potential synergies and competitive advantages on bidder behavior in recurring auctions of road construction contracts held by the Oklahoma Department of Transportation (ODOT) from...
Was Debt Deflation Operative during the Great Depression?
I. INTRODUCTION Important questions remain regarding the transmission mechanism that linked falling prices and falling output during the Great Depression, despite recent analysis suggesting that the worldwide deflation was initiated and propagated...