Economic Inquiry

Articles from Vol. 45, No. 1, January

Can the Human Capital Approach Explain Life-Cycle Wage Differentials between Races and Sexes?
I. INTRODUCTION The trends in gender and racial wage gaps have continued to receive the attention of researchers and policy-makers due to their mounting social significance. Substantial literature concludes that after World War II, the black-white...
Classroom Experiments: Not Just Fun and Games
I. INTRODUCTION Historically, economics was the classic example of a science in which laboratory methods are impossible. Consistent with this view, economics has traditionally been taught as a theory-intensive science rather than as an experimental...
Cotton in a Free Trade World
I. INTRODUCTION Cotton has been at the center of much of the controversy surrounding the inability of the World Trade Organization (WTO) membership to reach consensus regarding significant agricultural trade reform. In 2003, four African countries...
Crime and Punishment in Major League Baseball: The Case of the Designated Hitter and Hit Batters
I. INTRODUCTION Are you seriously going to throw at somebody when you're facing Randy Johnson? --Curt Schilling (1) In 1973, amid waning fan interest in baseball, the American League (AL) of Major League Baseball (MLB) instituted the designated...
Do HMO Plans Reduce Health Care Expenditure in the Private Sector?
I. INTRODUCTION Since the HMO Act was passed in 1973, health maintenance organizations (HMOs) have become one of the most popular types of managed care plans in the U.S. health delivery system. Faced with a dramatic increase in health care costs,...
Economic Effects of Currency Unions
I. INTRODUCTION A vast empirical literature in international finance investigates the effects of exchange rate regimes on different economic outcomes. For example, several studies have analyzed the effect of exchange rate variability on bilateral...
Employment Effects of Two Northwest Minimum Wage Initiatives
I. INTRODUCTION The impact of a minimum wage on employment has long been of interest to economists such as Stigler (1946), because it provides a relatively direct test of a conventional theoretical prediction that a binding increase in the minimum...
Exit from the Hospital Industry
I. INTRODUCTION The hospital industry has experienced significant changes in both reimbursement and technology over the past 20 years. Changes in both the level and type (e.g., per diem versus prospective) of reimbursement have occurred with all...
Nominal Wage Contracts and the Monetary Transmission Mechanism
I. INTRODUCTION In their papers, Kydland and Prescott (1982) and Long and Plosser (1983) show that a one-sector real business cycle model, subject to technology shocks, closely matches the business cycle properties of real variables to those found...
Output Effects of Inflation with Fixed Price- and Quantity-Adjustment Costs
I. INTRODUCTION There is convincing evidence that fixed costs of price adjustment may be large. Levy et al. (1997) found such costs to be 0.7% of a firm's revenue, and Zbaracki et al. (2004) found them to be 1.22%. In the presence of fixed costs...
Playing for Keeps: Pay and Performance in the NBA
I. INTRODUCTION A basic insight of agency theory is that properly designed incentive contracts can align the interests of agents with those of the principal, and recent empirical work shows that workers do indeed respond to financial incentives....
Reliability of Stated Preferences for Cholera and Typhoid Vaccines with Time to Think in Hue, Vietnam
I. INTRODUCTION Stated preference surveys contingent valuation (CV) and stated choice (SC)--are typically administered to respondents in the course of one phone or in-person interview. Though the format differs, these surveys ask respondents about...
The Slowdown in First-Response Times of Economics Journals: Can It Be Beneficial?
I. INTRODUCTION Academic publishing has been the subject of several studies recently. Some studies considered the pricing of academic journals, for example, Bergstrom (2001) and McCabe (2002), while others focused on various aspects of the review...
The Success of the Fed and the Death of Monetarism
I. INTRODUCTION There has been a significant reduction in the macroeonomic volatility in the U.S. economy during the last 20 yrs. The standard deviation of the central bank's target variables like inflation and nominal gross domestic product (GDP)...