Economic Inquiry

Articles from Vol. 34, No. 1, January

Consumer Search Costs and Market Performance
I. INTRODUCTION One of the seminal developments leading to the information economics revolution in the 1970s and 19c0s was Diamond's [1971] theoretical result that, in the absence of publicly posted price information, the existence of even a...
Depreciation in Production Analysis and in Income and Wealth Accounts: Resolution of an Old Debate
Strange as it seems, this question of definition has itself been one of the most controversial issues in the whole theory of capital... [and depending on definitions] we get into endless discussions as to how to measure the amount of capital. Trygve...
Empirical Studies of Depreciation
The purpose of this paper is to survey empirical research on depreciation and its applications. As a framework for the survey I employ the econometric model of asset prices introduced by Hall [1971] that has been the primary vehicle for this research...
Estimating Capital Efficiency Schedules within Production Functions
I. INTRODUCTION The appropriate method for aggregating capital goods of different vintages into a single measure of capital stock has long been a contentious issue.(1) The works of Leontief [1947], Fisher [1965] and Diewert [1980] explore the...
Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector
I. INTRODUCTION Numerous studies on production and cost, the sources of productivity, and endogenous growth have recognized the pivotal role of the physical capital stock. Studies at various levels of aggregation over assets and industries have...
Indeterminacy and Volatility of Exchange Rates under Imperfect Currency Substitution
I. INTRODUCTION This paper presents a model of exchange rate determination under currency substitution. Its primary objective is to examine the implications of currency substitution for the behavior of exchange rates in a general equilibrium...
Issues in the Measurement of Economic Depreciation: Introductory Remarks
I. INTRODUCTION Most capital goods are used up in the process of producing output. Machine tools wear out, trucks break down, electronic equipment becomes obsolete. When an asset reaches a point at which it is no longer economical to repair and...
New Evidence on the Retirement and Depreciation of Machine Tools
I. INTRODUCTION In the late 1970s and early 1980s, Charles Hulten and Frank Wykoff [1979; 1981a; 1981b] undertook a major effort to estimate economic depreciation for the U.S. capital stock. Their pioneering work, which analyzed prices for many...
Presidential Address to the Western Economic Association Annual Meeting - 1995
It is always sensible to start a lecture with a joke. As it happens, I know a very good one about presidential addresses. Unfortunately, it is not original with me, it was produced many years ago by a president of the Economic History Society, but...
Teaching Tools: How Is Introductory Economics Taught in America?
Despite many studies of the effects of instructor and student characteristics and pedagogical methods on learning the principles of economics (Siegfried and Fels [1979] and Siegfried and Walstad [1990]), little has been reported about how introductory...
The Influence of Classroom Characteristics on High School Teacher Turnover
I. INTRODUCTION A number of authors have suggested that the U.S. will face a shortage of qualified teachers in the near future, especially in the areas of math and science.(1) School districts facing such a shortage could respond in a variety...
Theory-Based Measurement of the Saving-Investment Correlation with an Application to Norway
I. INTRODUCTION The findings of Feldstein and Horioka [19c,0] have led to numerous theoretical and empirical papers on the close correlation between domestic saving and domestic investment and its supposed implications for international capital...