Atlantic Economic Journal

Quarterly publication provides economic developments and changes on a global level. It also publishes economists' research and book reviews.

Articles from Vol. 23, No. 3, September

An Analysis of RSQE Forecasts: 1971-1992
I. Introduction The Research Seminar in Quantitative Economics (RSQE) at the University of Michigan was established in 1951. One of the first research projects of the seminar was the construction of an econometric model of the U.S. economy. A version...
An Economic Interpretation of the Gibson Relationship
I. Introduction Many economists have been intrigued by the relationship between interest rates (or the interest rate) and price level, meaning by the latter term, a general and broadly based index of prices. There are, among others, two ways of approaching...
A Note on Purchasing Power Parity and Aggregate Demand Elasticity
The purchasing power parity theory of exchange rate determination predicts that countries which have a rate of inflation higher than those of other nations will experience a depreciation of their currency. This conclusion suggests that the differences...
A Note on School Size and Wages
Much has been written on whether it is school quality or quantity that really matters in determining wages. The traditional human capital wage equation controls for the quantity of education (i.e., years of schooling) and generally ignores quality of...
Breaking the Fair-Bet Barrier
In order to win the jackpot in a state-run lottery, a participant must correctly choose x out of y different numbers. Since combinations of y numbers taken x at a time are c = y!/[x! (y-x)!], the probability of a single ticket winning is p = (1/c). Ignoring...
Comparing the Welfare Effects of Income and Excise Taxes in the Presence of the Other Taxation Paradox
I. Introduction In 1897 Edgeworth produced an example in which an excise tax on one good would lower the price of that good (inclusive of the tax) and other goods as well [1897]. This phenomenon, which has come to be known as the Egdeworth taxation...
Deregulation and Separation of Combination Utilities
Ever since 1930 when the Federal Power Commission was established, utilities have faced regulatory constraints. Combination gas and electric companies have been among the utilities affected. It has been presumed that these firms are natural monopolies,...
Individualism and Economic Growth
Writing in the British Sunday Times [February 20, 1994, Section 4, p. 4], Peter Kellner suggested that the slow rate of growth of the British economy in recent years was a result of a preference for individualism over teamwork in the British. The notion...
Infant Mortality: A Problem of Income Distribution and Access
Waldman ["Income Distribution and Infant Mortality," QJE 107, 4, November 1992] found that the distribution of income, as well as average income, affects infant mortality rates. Using OLS to estimate the parameters of (1) below, he found that infant...
Integrability and Aggregation in the Theory of Demand
Harold Hotelling believed that integrability is an important property of both individual and market demand equations. In his Edgeworth taxation paradox paper [1932], he wrote in a footnote: "As this paper goes to press I learn from Professor Henry Schultz,...
Student Risk-Assessment: An Experimental Observation
In 1994, students in selected classes at Centenary College took part in an economics experiment proposed by Ray [AE, 1992]. During the semester, the students took 10-point pop quizzes involving information in the Wall Street Journal. The best five quiz...
The Macroeconomics of Self-Fulfilling Prophecies
I. Introduction Roger Farmer argues that dynamic general equilibrium models with multiple equilibria are useful for representing economists' understanding of observable, aggregate phenomena and for evaluating the role of government policies. This suggestion...
Unions, Minorities and U.S. Manufacturing Trade: 1979-1985
This research incorporates worker heterogeneity into the trade-employment debate by identifying the characteristics of workers employed in trade-sensitive U.S. manufacturing industries over the 1979-85 period. Among the characteristics examined are union...