American Economist

Publishes graduate and undergraduate student essays and articles on all areas of economics research. The essays cover current developments in pure and applied economics. This is the official journal of Omicron Delta Epsilon, the international honor societ

Articles from Vol. 55, No. 2, Fall

Actuarially Fair Premia for Deductible Insurance Policies
I. Introduction It is now well established in actuarial insurance theory that a risk-averse expected utility maximizer will never purchase full insurance coverage if the insurance premium is actuarially fair in conjunction with a positive proportional...
Alan Brown and the Origins of Omicron Delta Epsilon-A Remembrance
A prelude: Alan was the founder of Omicron Chi Epsilon in 1955 while he was a student at City College of New York. It will be fifty-three years ago this fall, if memory serves me correctly, that Alan Brown came into my life. I was a senior at that...
A Note on the Teaching of Dumping in International Economics Textbooks
I. Introduction Dumping may occur when a firm sets a lower price abroad than at home. Two cases are identified where the presentation of dumping in undergraduate International Economics textbooks is imprecise and somewhat misleading. (1) II....
Babe Ruth as a Free Agent: What the Old-Time Greats Would Earn in Today's Labor Market for Baseball Players
In 1930, when Babe Ruth was told that President Hoover made less than the $80,000 Ruth was demanding, Ruth replied, "What the hell has Hoover got to do with it? Besides, I had a better year than he did." I. Introduction Baseball fans like to...
Empirical Analysis of the Linder Hypothesis: The Case of Germany's Trade within Europe
I. Introduction This paper will examine the empirical validity of the Linder hypothesis from the perspective of Germany. The establishment of the European Union as a single economic market in 1993 altered Germany's trade patterns, as Germany has...
God, Ants and Thomas Bayes
The editor of this volume has invited me to present here my personal philosophy. But I cannot distinguish between my personal philosophy and my theoretical philosophy. As I explained in my autobiography, Markowitz (1990), when I was in high school...
Identifying Industries for Employment Development Using Input-Output Modeling: The Case of Prison Industry Employment
I. Introduction Economic development involves creating new jobs while retaining existing jobs. A step in the process is the identification of potential industries and the assessment of the degree of complementarity or competition with existing industry....
In Memoriam: Alan A. Brown 1928-2010
[ILLUSTRATION OMITTED] Alan A. Brown, PhD, retired Professor of Economics and founder of Omicron Chi Epsilon, precursor to Omicron Delta Epsilon (ODE), passed away March 22, 2010 at age 82. He is survived by his wife of 54 years, Barbara; two children,...
Memorializing Paul A. Samuelson: A Review of His Major Works, 1915-2009
Introduction We have lost the dean of American economists, the unrivalled leader of neoclassical economics on December 13, 2009. Paul Anthony Samuelson was born on May 15, 1915 in Gary, Indiana to his parents Frank Samuelson and Ella Lipton. The...
Reptilian Economists of the World Unite: A Tolerance Manifesto
Lizards, lizards, large and small The Econ tribe needs one and all. A graduate school colleague, Les Manns, was prone to refer to certain others in the economics profession as "big lizards." We never really discussed the definition of a big lizard...
Simple Pigovian Taxes vs. Emission Fees to Control Negative Externalities: A Pedagogical Note
I. Introduction Almost all principles of economics texts, public finance texts, environmental economics texts and intermediate microeconomics texts deal with the economics of externalities. (Representative Principles texts: Mankiw (2007) and Frank/Bernanke...
Teaching the Art of Economic Research in a Senior Seminar
Introduction An undergraduate honors thesis can provide a valuable opportunity for students to build on the knowledge they have gained in college, to ask an interesting question, and to use the tools of their discipline to answer that question....
The Development of Water Rights in Colorado: An Empirical Analysis
I. Introduction An important insight offered by the property rights economics literature is that institutions, or the rules of the game, affect how well markets function (Pejovich 1990). Properly functioning markets require well-defined and enforceable...
The Effects of Excise Taxes on Non-Homogeneous Populations
Introduction In a fascinating and challenging article, Martin Feldstein (1997) calls upon public finance economists to address the important issue of measuring the effect of tax rate changes (and the costs of incremental tax revenue) on the tax...
The Effects of Option Introduction on Analyst Coverage and Earnings Estimates
I. Introduction We examine the informational environment of the market after options are introduced on NYSE/ Amex and Nasdaq stocks between 1983 and 2004, with a primary focus on the introductions since 1990. In particular, we test several aspects...
The Impact of a Seller's eBay Reputation on Price
I. Introduction Some markets have the problem of asymmetric information, where one party in the market possesses more information than the other. For example, a seller in the market for used cars typically has more information about the cars for...
The Impact of Remittances on Economic Growth and Development in Africa
I. Introduction For more than half a century, there have been heated debates on the sources of economic growth of developing economies (Lewis, 1954: Solow, 1956: Chenery and Strout, 1966: Denison, 1967; Myrdal, 1968: Harris-Todaro, 1970: Schultz,...
Variations in Individual Decision Making: Children, Adults, and Economic Theory
I. Introduction The focus of this study is to use an economic lottery choice experiment to compare the risk attitudes of children to adults. Differentiating between the risk attitudes of children and adults is of particular interest in terms of...