reconsidering the regional economic development impacts of higher education institutions in the united states drucker j reconsidering the regional economic development impacts of higher education institutions in the united states regional studies this study models relationships between us higher education activities and regional economic performance 2001 11 advances include incorporating all degree granting institutions estimating spatial spillovers and comparing multiple economic outcomes including production and entrepreneurship higher education impacts vary by outcome measure but are less influential than in previous studies spillovers are substantial up to 60 miles 97 kilometres reflecting considerable influence across space more advanced degrees science and engineering education and population educational attainment are positively associated with entrepreneurial activity these findings encourage the traditional university missions of research and teaching and general policies promoting entrepreneurship to support economic performance

can money matter for interest rate policy in this paper it is shown that money can matter for macroeconomic stability under interest rate policy when transactions frictions are non negligible we develop a sticky price model with a shopping time function which induces the marginal utility of consumption to depend on the predetermined stock of money held at the beginning of the period equilibrium stability and uniqueness are then ensured by a passive interest rate policy whereas activeness is associated with an explosive equilibrium by reacting to changes in beginning of period real balances the central bank can restore stability interest rates further depend on lagged real balances even if the central bank acts in an entirely forward looking way as under discretionary optimization if the model is revised such that end of period money provides transaction services money can in principle be neglected for a stabilizing interest rate policy discretionary monetary policy is however likely to be associated with equilibrium indeterminacy which can be avoided if interest rates are set contingent on beginning of period real balances

exchange rates and the fiscal theory of the price level abstract this paper addresses exchange rate determination under a nominal interest peg in a two country cash in advance model under two types of cash in advance constraints if both governments peg the nominal interest rate on domestic bonds there is a continuum of equilibria each consistent with different nominal exchange rates and real resource allocations the well known finding of equilibrium uniqueness under a nominal interest rate peg in a closed economy does not survive in a multi country multi currency setting

state characteristics and the location of foreign direct investment within the united states a conditional logit model of the location decision of foreign firms investing in manufacturing facilities in the united states is developed and estimated the authors results for 1981 83 indicate that states with higher per capita incomes and higher densities of manufacturing activity attracted relatively more foreign direct investment in addition higher wages deterred foreign direct investment while higher unemployment rates attracted it surprisingly higher unionization rates were associated with increased foreign direct investment overall higher taxes deterred foreign direct investment however more extensive transportation infrastructures and larger promotional expenditures were associated with increased foreign direct investment copyright 1991 by mit press

budget deficits money growth and inflation the turkish evidence the paper investigates the long run relationships between budget deficits inflation and monetary growth in turkey considering two alternative trivariate systems corresponding to the narrowest and the broadest monetary aggregates while the joint endogeneity of money and inflation rejects the validity of the monetarist view lack of a direct relationship between inflation and budget deficits makes the pure fiscal theory explanations illegitimate for the turkish case consistent with the policy regime of financing domestic debt through the commercial banking system budget deficits lead to a growth not of currency seigniorage but of broad money in turkey this mode of deficit financing leading to the creation of near money and restricting the scope for an effective monetary policy may not be sustainable as the government securities broad money ratio cannot grow without limit

sophisticated monetary policies in standard monetary policy approaches interest rate rules often produce indeterminacy a sophisticated policy approach does not sophisticated policies depend on the history of private actions government policies and exogenous events and can differ on and off the equilibrium path they can uniquely implement any desired competitive equilibrium when interest rates are used along the equilibrium path implementation requires regime switching these results are robust to imperfect information our results imply that the taylor principle is neither necessary nor sufficient for unique implementation they also provide a direction for empirical work on monetary policy rules and determinacy

the fiscal theory of the price level in a world of low interest rates abstract a central equation for the fiscal theory of the price level ftpl is the government budget constraint or government valuation equation which equates the real value of government debt to the present value of fiscal surpluses in the past decade the governments of most developed economies have paid very low interest rates and there are many other periods in the past in which this has been the case in this paper we revisit the implications of the ftpl in a world where the rate of return on government debt may be below the growth rate of the economy considering different sources for the low returns dynamic inefficiency the liquidity premium of government debt or its favorable risk profile this article is part of a special issue entitled fiscal and monetary policies

optimal fiscal feedback on debt in an economy with nominal rigidities we examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where monetary policy is optimal we look at the extent to which different degrees of fiscal feedback enhances or detracts from the ability of the monetary authorities to stabilise output and inflation using an objective function derived from utility we find the optimal level of fiscal feedback to be small there is a clear discontinuity in the behaviour of monetary policy and welfare either side of this optimal level as the extent of fiscal feedback increases optimal monetary policy becomes less active because fiscal feedback tends to deflate inflationary shocks however this fiscal stabilisation is less efficient than monetary policy and so welfare declines in contrast if fiscal feedback falls below some critical value either the model becomes indeterminate or optimal monetary policy becomes strongly passive and this passive monetary policy leads to a sharp deterioration in welfare

statistical measures of unsustainability abstract statistical measures are needed to reveal at a glance how far or near various countries are to meeting the conditions of long run sustainability and how conditions are changing on a year to year basis i e whether sustainability is being approached or not the scheme proposed in this paper presents numerical comparisons of energy and materials use in the real world vis a vis an ideal case where all of the identifiable criteria for sustainability are satisfied apart from population stabilization five general but quantifiable criteria for sustainability are suggested including 1 stabilization of greenhouse gas concentrations in the atmosphere 2 stabilization of acidity ph in rainfall 3 reduction of dissipative uses and wastes of heavy metals to natural mobilization rates or lower 4 elimination of agriculture based on pumping fossil water from non renewable aquifers and 5 elimination of loss of arable land because of salination or erosion other criteria such as preservation of biodiversity and socio economic equity between countries and generations might be added to the list they introduce more difficult measurement problems however which are not considered further in the paper having fixed the list of criteria the next step is to identify measures that either go to zero or unity as the system approaches more and more closely to sustainability at least in the limited sense defined above various types of measures of sustainability unsustainability can be developed viz i measures of relative dependence of the economy on non renewable sources of energy and materials ii measures of the productivity of energy and materials consumed by the economic system and iii measures of dissipative loss especially of toxic and hazardous substances specific examples of each type are discussed

interest rates and currency prices in a two country world abstract this paper is a theoretical study of the determination of prices interest rates and currency exchange rates set in an infinitely lived two country world which is subject both to stochastic endowment shocks and to monetary instability formulas are obtained for pricing all equity claims nominally denominated bonds and currencies and these formulas are related to earlier closely related results in the theories of money finance international trade

an exploration in the theory of exchange rate regimes three exchange rate regimes a float a one sided peg and a cooperative peg are evaluated and compared in terms of efficiency and welfare levels the framework of analysis embodies country specific monies with the money of each country being used to transact in its commodity markets and its currency denominated bonds welfare levels depend only on consumption levels in the presence of perfect foresight all equilibrium allocations are pareto efficient in a floating exchange rate regime the perfect foresight equilibrium allocation coincides with an equilibrium of a costless barter economy the same result holds in a one sided peg if the pegging country s exchange rate stabilizing authority breaks even over time in a cooperative peg regime there is a different equilibrium allocation for each combination of exchange rate levels and monetary policies problems of policy coordination and conflicts in desired monetary policies are discussed

fiscal deficits and inflation abstract macroeconomic theory postulates that persistent fiscal deficits are inflationary yet empirical research has had limited success in uncovering this relationship this paper reexamines the issue in light of broader data and a new modeling approach that incorporates two key features of the theory unlike previous studies we model inflation as non linearly related to fiscal deficits through the inflation tax base and estimate this relationship as intrinsically dynamic using panel techniques that explicitly distinguish between short and long run effects of fiscal deficits results spanning 107 countries over 1960 2001 show a strong positive association between deficits and inflation among high inflation and developing country groups but not among low inflation advanced economies

monetary and fiscal theories of the price level the irreconcilable differences the fiscal theory of the price level ftpl has attracted much attention but disagreement remains concerning its defining characteristics some writers have emphasized implications regarding interest rate pegging and determinacy of rational expectations solutions whereas others have stressed its capacity to generate equilibria in which price level trajectories mimic those of bonds and differ drastically from those of money supplies we argue that the ftpl attained prominence precisely because it appeared to provide a theory whose implications differ greatly from conventional monetary analysis accordingly we review monetarist writings to identify the primary distinctions in addition we review recent findings concerning learnability and therefore plausibility of competing rational expectations equilibria these indicate that when ftpl and monetarist equilibria differ the latter are more plausible in the vast majority of cases under ricardian assumptions necessary for clear distinctions theoretical analysis indicates that fiscal and monetary coordination is not necessary for macroeconomic stability copyright 2005 oxford university press

aging and deflation from a fiscal perspective negative correlations between inflation and demographic aging were observed across developed nations recently to understand the phenomenon from a politico economic perspective we embed the fiscal theory of the price level into an overlapping generations model in the model successive short lived governments choose income tax rates and bond issues considering the political influence of existing generations and the policy response of future governments the model sheds new light on the traditional debate about the burden of national debt because of price adjustments the accumulation of government debt does not become a burden on future generations our analysis reveals that the effects of aging depend on its causes aging is deflationary when caused by an increase in longevity but inflationary when caused by a decline in birth rate numerical simulation shows that aging over the past 40 years in japan generated deflation of about 0 6 percentage points annually

beyond the silicon valley university r d and high technology location abstract in this paper we examine high technology location in us counties focusing on the relationship with university research and development r d the dirichlet multinomial model an extension of the conditional logit model that allows for overdispersion is used to estimate the determinants of manufacturing establishment births in us counties we test the hypothesis that university r d generates spillovers captured locally as new high technology establishments after controlling for local costs demand agglomeration economies and other important location factors estimates show that r d expenditures at universities exert a positive statistically significant influence on the decision to locate plants in a county the marginal impacts of increased r d funding on county probabilities for new high tech plant births however appear to be modest separate estimates indicate that the findings hold up across most individual high tech industries our model also determines the distance from university r d in which economic spillovers can be detected spillover effects may extend up to approximately 145 miles from universities

infinite maturity public debt and the fiscal theory of the price level the fiscal theory of the price level asserts that the price level is determined by the ratio of outstanding public nominal debt into the present value of real primary budget surpluses of the government we here argue that price determinacy in general fails when at least part of the public debt takes the form of securities of infinite maturity indeed price determinacy requires non ricardian fiscal plans and a predetermined nominal debt of the government as no equilibrium restriction prevents the occurrence of a speculative bubble on infinite maturity public debt the initial nominal debt of the government is indeterminate and so is the price level under canonical specifications of non ricardian fiscal plans

home field advantage location decisions of portuguese entrepreneurs an investor s home bias in industrial location decisions may stem from personal factors social capital other non transferable assets and imperfect information about the urban and regional environment this paper explores the distinction between home base and non home location decisions in portugal we reach two important conclusions first the introduction of a variable accounting for prior base of economic activity significantly improves the statistical results second we find that the weighting of distinct location attributes differs between home and non home locations notably non home location choices are strongly governed by agglomeration economies and proximity to major urban centers possibly replicating prior location decisions to economize on search costs the results also enable us to quantify the investor s willingness to opt for a possible home field advantage for example entrepreneurs accept over three times higher labor costs to compete in their resident area of business 2002 elsevier science usa all rights reserved

spatially distributed production data for supply chain models forecasting with hazardous waste abstract this paper introduces a novel approach to forecasting future commodity production in hundreds of nodes which represents a key input for many applications of supply chain models a mathematical model was proposed to handle the problem of forecasting with spatially distributed and uncertain data it is derived from the principle of regression analysis and extended by a data reconciliation technique additional areal constraints guarantee mass conservation in a tree like structure which reflects the organisational arrangement of an investigated region the proposed model was tested through a case study where future production of hazardous waste suitable for thermal treatment was forecasted in 206 base nodes 14 superior nodes and one apex based on an extensive investigation of historical data it was revealed that extrapolations carried out at different levels of the hierarchical organisational structure lead to inconsistent forecasts the differences between forecasts reached up to 50 in addition to this mass conservation was violated significant corrections were performed by computations utilizing the formulated model the corrections ranged from between 0 and 12 for 90 of nodes there were 17 nodes where massive adjustments of up to 30 were inevitable

data watch the american time use survey we discuss the new american time use survey atus an on going household survey of roughly 1 200 americans per month 1 800 per month in the first year 2003 that collects time diaries as well as demographic interview information from respondents who had recently been in the current population survey the characteristics of the data are presented as are caveats and concerns that one might have about them a number of novel uses of the atus in economic research including in the areas of macroeconomics national income accounting labor economics and others are proposed to illustrate the magnitude of this new survey s possible applications

are private markets and filtering a viable source of low income housing estimates from a repeat income model while filtering has long been considered the primary mechanism by which markets supply low income housing direct estimates of that process have been absent this has contributed to doubts about the viability of markets and to misplaced policy i fill this gap by estimating a repeat income model using 1985 2011 panel data real annual filtering rates are faster for rental housing 2 5 percent than owner occupied 0 5 percent vary inversely with the income elasticity of demand and house price inflation and are sensitive to tenure transitions as homes age for most locations filtering is robust which lends support for housing voucher programs jel r21 r31 r38

james tobin an appreciation of his contribution to economics jim tobin who died on march 11 2002 at the age of 84 was one of giants of economics of the second half of the twentieth century and the greatest macroeconomist of his generation tobin s influence on macroeconomic theory is so pervasive so much part of our professional acquis that many younger economists often are not even aware that it is his ideas they are elaborating testing criticising refuting or re inventing in this appreciation i consider tobin s scholarly contributions made over a period of more than 50 years tobin received the 1981 nobel memorial prize for his analysis of financial markets and their relations to expenditure decisions employment production and prices i consider his contributions to mean variance portfolio demand and asset pricing theory especially the portfolio separation theorem pitfalls in financial model building portfolio balance and flow of funds models and the credit channel the life cycle model and social security econometric methodology including the tobit estimator and his pioneering work using both time series and cross sectional data to estimate food demand functions economic growth tobin s q the tobin tax the monetary and fiscal policy effectiveness debate first with milton friedman and then with the new classical macroeconomics and real business cycle schools and tobin s approach to methodological questions including microfoundations and aggregation

what does a university add to its local economy the local multiplier effects of a university are estimated using data for the university of nottingham gross output and disposable income multipliers are calculated the latter are adjusted to exclude the incomes of induced migrants whose welfare is assumed unchanged

a theory of urban growth in an economy experiencing endogenous economic growth and exogenous population growth we explore two main themes how urbanization affects efficiency of the growth process and how growth affects patterns of urbanization localized information spillovers promote agglomeration and human capital accumulation fosters endogenous growth individual city sizes grow with local human capital accumulation and knowledge spillovers and city numbers generally increase which we demonstrate is consistent with empirical evidence we analyze whether local governments can successfully internalize local dynamic externalities in addition we explore how growth involves real income differences across city types and how urbanization can foster income inequality most nonagricultural production in developed countries occurs in metropolitan areas the underlying reasons why economic activity agglomerates into cities localized information and knowledge spillover also make cities the engines of economic growth in an we gratefully acknowledge support of the national science foundation grants sbr 9422440 and sbr9730142 for this research the work has benefited from conversations with harl ryder on the dynamics of the model and from comments by gilles duranton and participants in seminars at brown colorado and texas austin and a presentation at an isit seminar sponsored by the centre for economic policy research and the national bureau of economic research

re evaluating the impact of immigration on the u s rental housing market abstract previous studies provide evidence that immigration increases housing prices and rents to deal with endogenous location choices of immigrants these studies often use a shift share instrumental variable approach this approach however fails to adequately account for the natural attraction of immigrants to cities with thriving economies high immigration cities provide more economic opportunities and thus exhibit persistently rising housing prices and rents this paper improves upon the traditional empirical approach by explicitly controlling for initial city characteristics that lead to both increases in immigration and the evolution of rents results suggest that after controlling for endogenous sorting of immigrants the positive effect of immigration on rents is attenuated while the impact of immigrant inflows is smaller an extension of the main results suggests the effects of immigration on rents remains larger than that of native inflows

immigration and housing rents in american cities is there a local economic impact of immigration immigration pushes up rents and housing values in us destination cities the positive association of rent growth and immigrant inflows is pervasive in time series for all metropolitan areas i use instrumental variables based on a shift share of national levels of immigration into metropolitan areas an immigration inflow equal to 1 of a city s population is associated with increases in average rents and housing values of about 1 the results suggest an economic impact that is an order of magnitude bigger than that found in labor markets

indeterminacy bubbles and the fiscal theory of price level determination abstract the recently developed fiscal theory of price level determination contends that there is an important class of policy rules in which there exists a unique rational expectations solution that shows the price level to be dependent upon fiscal policy and independent of monetary variables the present paper argues however that there is an alternative solution to these models that has entirely traditional or monetarist properties this latter solution is arguably more plausible since it is the solution that is typically regarded as the bubble free fundamentals solution the paper s analysis involves the specification of feasible instrument variables

ruling out divergent speculative bubbles abstract the growth in the empirical literature on testing for divergent in mean speculative bubbles indicates that existing theoretical arguments for ruling out such price paths are not sufficiently compelling here we strengthen the case for ruling out explosive or implosive bubbles a priori by filling in two gaps first we demonstrate why divergent stochastic bubbles arising from purely extrinsic uncertainty as in blanchard 1979 cannot be equilibria in a monetary optimizing model second we show why existing arguments for ruling out implosive price bubbles are insufficient in some cases and we provide stronger arguments

money as stock abstract the fiscal theory determines the price level from the value of nominal government debt as a claim to government primary surpluses just as private stock is valued as a claim to corporate profits valuation equations are not constraints so this theory does not mistreat the government s intertemporal budget constraint i anchor the analysis in a simple cash in advance model when money demand falls to zero i show that the price level can still be determined by the government debt valuation equation

entry growth and survival in the green industry abstractentry growth and survival in the green industry regional studies economists are interested in the factors that induce firm entry lead to growth and help firms succeed in various markets such information can be helpful to policy makers but unfortunately such patterns have not been considered for green industries this paper takes advantage of a recent definition of green industries proposed by the us bureau of labor statistics bls to investigate patterns characterizing these industries within the state of texas

distortionary taxation debt and the price level this paper considers the nominal and real determinacy of equilibria under an exogenously specifi ed path of interest rates in an economy in which taxation is either lump sum or distortionary under lump sum taxation we confirm the well known finding that equilibria display nominal in determinacy if the primary surplus is exogenous endogenous under distortionary taxation this classification is no longer relevant nominal determinacy is always ensured since distortionary taxes establish a link between the allocation and the sequences of taxes and debt and hence the price level regardless of whether the primary surplus is exogenous or endogenous distortionary taxation however increases the scope for real indeterminacy as a general feature the real in determinacy of equilibria depends on the interaction of fiscal and monetary policies i e on the sequences of taxes debt and interest rates if for example fiscal policy runs a balanced budget the central bank should set the nominal interest rate in a way consistent with long run deflation in order to ensure real determinacy this finding is different from a balanced budget policy under lump sum taxes where no such qualification with respect to the interest rate needs to be made

inflation targeting fiscal rules and the policy mix cross effects and interactions we examine how inflation targeting it and fiscal rules fr affect inflation and fiscal performance in a large panel of countries during 1990 2009 in line with theory both fr and it appear to shape monetary and fiscal outcomes significant cross effects seem to exist as it strengthens fiscal performance whereas the combination of fr and it tends to be associated with more disciplined macroeconomic policies than if only one of these institutions operates our findings suggest that it and fr affect the coordination of the policy mix and point to potential benefits of reforming macroeconomic frameworks in a holistic fashion

wages rents and the quality of life this study focuses on the role of wages and rents in allocating workers to locations with various quantities of amenities the theory demonstrates that if the amenity is also productive then the sign of the wage gradient is unclear while the rent gradient is positive the theory is extended to include the housing market and nontraded goods these extensions require little modification of the conclusion the empirical work on wages shows that the regional wage differences can be explained largely by these local attributes with the use of site price data implicit prices are estimated and quality of life rankings for the cities are computed

universities as engines of r d based economic growth they think they can two issues raised by increased participation of universities in equity arrangements designed to commercialize faculty research are addressed a the effects that an increased emphasis on patenting faculty research and on enhancing the commercial value of these patents has on the characteristics of academic research net revenue streams and existing channels through which academic research enters the market and b processes of institutional change and imitation whereby changes in the policies of elite research universities exert competitive and emulative pressures on other institutions increased efforts by universities to foster the commercialization of technological innovations erodes the singular position of institutions of higher learning in the united states based on past performance there is little reason to expect that a substantial reallocation of faculty effort towards commercially oriented r d will generate appreciable net revenues for other than a select number of universities these ventures also serve to shift academic researchers from the social roles in which they are most efficient as suppliers of a collective goodscientific and technological knowledge just as very few men are both capable business managers and ingenious inventors so few are at the same time ingenious inventors and exalted altruists some twenty years ago a university professor devised a method for measuring with accuracy the content of butterfat in milk the device if patented would doubtless have yielded him a very handsome income the inventor gave it freely to the public saying modestly that to do so was but part of his duty as a servant of the people and it has come into use the world over we call his conduct noble but our very recognition of its nobility is an admission of its rarity f w taussig inventors and money makers 1915 58

doing without money a critical assessment of woodford s analysis woodford employs an inter temporal general equilibrium model to examine the properties of the monetary system as it evolves from the use of a physical medium of exchange to an electronic medium he presents a structure in which cash as a means of payment can be made to vanish at the limit but where he claims the price level remains determinate it is shown that woodford s analysis involves fundamental but still widespread conceptual and methodological errors his general equilibrium model does not map into the world of electronic money and his analysis has no implications for the art of central banking copyright 2006 oxford university press

the university in the metropolitan arena impacts and public policy implications this paper estimates some of the impacts associated with a metropolitan university the impact of the university in the metropolitan arena is conceptualised as a series of backward expenditure and forward knowledge related linkages these relationships can be both positive and negative and can operate in both the short and long terms their correct identification requires that the counter factual situation of the area without the university be adequately specified on the basis of a case study of the impacts associated with northwestern university on the chicago metropolitan area some of these issues are highlighted the results emphasise the magnitude of the university expenditure links with the metropolitan economy and the importance of scale when comparing these with more localised negative impacts the paper concludes with some public policy implications relating to the role of the university as a non profit organisation competing with local businesses and as an export base sector in the metropol

the effects of colleges and universities on local labor markets there is little systematic evidence documenting a relationship between colleges and universities and local economies using census data for 218 smsas this paper examines the relationship between various measures of university quality and local labor market conditions the authors find that area employment growth rates and the percentage of the work force employed as scientists and engineers are positively and significantly related to measures of university quality however the data can not reject the hypothesis that university quality has no significant effect on area income the employment rate net migration rates or even the share of employment in high tech industries copyright 1993 by mit press

the fiscal theory of the price level a critique abstract this paper argues that the fiscal theory of the price level ftpl has feet of clay the source of the problem is a fundamental economic misspecification the ftplconfuses two key building blocks of a model of a market economy budgetconstraints which must be satisfied identically and market clearing or equilibriumconditions the ftpl asssumes that the government s intertemporal budgetconstraint needs to be satisfied only in equilibrium this economic misspecification has far reaching implications for the mathematicalproperties of the equilibria supported by models that impose the structure of theftpl it produces a rash of contradictions and anomalies jel classifications e31 e41 e51 e52 e62 e63 key words fiscal theory of the price level ricardian fiscal financial monetaryprogrammes government budget constraint price level indeterminacy author willem h buiter european bank for reconstruction and development oneexchange square london ec2a 2jn uktel 44 20 73386805fax 44 20 73386110 6111e mail buiterw ebrd comweb page http www nber org wbuiter index htm

interactions of monetary and fiscal policy via open market operations we examine interactions of monetary and fiscal policy in a sticky price model where public debt is non neutral as it provides transaction services this property is brought about by a legal restriction on open market operations by which only government bonds are eligible debt creation eases access to money and can therefore induce households to increase purchases of goods government expenditures which are not completely tax financed and deficit financed tax cuts then tend to stimulate private consumption however for these fiscal impulses to raise real activity monetary policy should not too aggressively aim at stabilising the economy

monetary policy and the zero bound to interest rates a review1 this paper reviews the literature on what the zero bound to nominal interest rates implies for the conduct of monetary policy the aim is to evaluate the risks of hitting the zero bound and to evaluate policies that are said to be able to reduce that risk or policies that are proposed as means of helping the economy escape if it is in a zero bound trap i conclude that policies aimed at cure are arguably more uncertain tools than those aimed at prevention so prevention is a less risky strategy for policymakers but since the risks of hitting the zero bound seem quite small anyway and the risks of encountering a deflationary spiral smaller still it is conceivable that inflation objectives that typify modern monetary regimes already have more than enough insurance built into them to deal with the zero bound problem

understanding the economic performance of metropolitan areas in the united states examining the drivers of metropolitan economic performance this paper models two dependent variables change from 1990 to 2000 in gross metropolitan product and msa employment it is found that initial year economic structure an above average share of manufacturing employment agglomeration economies human capital share of population with bachelor degrees or higher and presence of state right to work laws are positively and significantly related to gmp and employment growth while the economic age of the area percentage of black non hispanic residents and average wage at the beginning of the period are negatively and significantly related to both the regional dummy variables commonly used to explain economic growth and typically highly significant are augmented by including climate related amenity business environment and economic age when these three variables are included in the model as independent variables with the regional dummy variables all three are significant for growth in gmp and

classifying monetary economics fields and methods from past to future we propose a simple yet sufficiently encompassing classification scheme of monetary economics it comprises three fundamental fields and six recent areas that expand within and across these fields the elements of our scheme are not found together and in their mutual relationships in earlier studies of the relevant literature neither is this an attempt to produce a relatively complete systematization our intention in taking stock is not finality or exhaustiveness we rather suggest a viewpoint and a possible ordering of the accumulating knowledge our hope is to stimulate an improved understanding of the evolving nature and internal consistency of monetary economics at large

long term debt and optimal policy in the fiscal theory of the price level the fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real primary surpluses i analyze long term debt and optimal policy in the fiscal theory i find that the maturity structure of the debt matters for example it determines whether news of future deficits implies current inflation or future inflation when long term debt is present the government can trade current inflation for future inflation by debt operations this tradeoff is not present if the government rolls over short term debt the maturity structure of outstanding debt acts as a budget constraint determining which periods price levels the government can affect by debt variation alone in addition debt policythe expected pattern of future state contingent debt sales repurchases and redemptionsmatters crucially for the effects of a debt operation i solve for optimal debt policies to minimize the variance of inflation i find cases in which long term debt helps to stabilize inflation i also find that the optimal policy produces time series that are similar to u s surplus and debt time series to understand the data i must assume that debt policy offsets the inflationary impact of cyclical surplus shocks rather than causing price level disturbances by policy induced shocks shifting the objective from price level variance to inflation variance the optimal policy produces much less volatile inflation at the cost of a unit root in the price level this is consistent with the stabilization of u s inflation after the gold standard was abandoned

perils of unconventional monetary policy abstract unconventional monetary policy by relaxing restrictions on the composition of the balance sheet of the central bank compromises control over the stochastic path of inflation or in open economies over the stochastic path of exchange rates if the composition of the balance sheet is unrestricted then the path of inflation is indeterminate this is the case under pure quantitative easing where the target is the size of real money balances in contrast credit easing policies restrict the composition of the portfolio by targeting a specific expansion in the maturity profile of bonds bought and thus can implement a determinate path of inflation the composition of the portfolios traded by monetary fiscal authorities also determines premia in asset and currency markets

new developments in monetary economics two ghosts two eccentricities a fallacy a mirage and a mythos monetary theory and policy are part of intertemporal public finance the two ghosts are the liquidity trap and the real balance effect the eccentricities are negative nominal interest rates and the helicopter drop of money the fallacy is the fiscal theory of the price level a logically inconsistent theory of the link between the government s intertemporal budget constraint and the general price level the mirage is the prediction that financial deregulation and technical change in the payments and settlements technology will cause monetary policy to lose its capacity to influence even nominal economic variables mythos refers to the independent central bank

designing sustainable energy supply chains by the p graph method for minimal cost environmental burden energy resources input we present a computer aided methodology for designing sustainable supply chains using the p graph framework to develop supply chain structures which are then analyzed using cost the cost of producing electricity and two sustainability metrics the ecological footprint and the emergy input these metrics respectively represent environmental burden in terms of land use and energy resources the results are the continuation of a research effort between members of the office of research and development ord of the u s epa and the university of pannonia in earlier work the basis of the research the integration of supply chain design and sustainability were presented there the p graph framework provided a mathematically rigorous procedure for synthesizing optimal and alternative suboptimal networks subject to profitability and ecological footprint criteria in this work the effort is extended with another sustainability metric emergy emergy a measure of the energy used up in transformations directly and indirectly to make a product or maintain a service was assessed for each energy production supply chain the proposed methodology demonstrates the optimal design of a supply chain which provides electric power and heat to an agricultural region with agricultural wastes that can potentially be recovered as renewable resources the results of the study indicate that compared to using electricity from the grid and or natural gas renewable energy resources can yield substantial cost reductions of up to 17 as well as significant ecological footprint and emergy reductions these results indicate that it is possible to design more sustainable supply chains that are also cost effective

monetary and fiscal policy interaction the current consensus assignment in the light of recent developments in the last few years papers have begun to analyse optimal monetary and fiscal policy in models incorporating nominal rigidities where social welfare is derived from the utility of agents this article examines whether this analysis provides support for the consensus assignment where monetary policy controls demand and inflation and fiscal policy controls government debt we argue that the basic structure of new keynesian models implies that monetary policy dominates fiscal policy as a means of controlling inflation no similar dominance appears to operate for fiscal policy and debt if debt has to return to its initial level after shocks

the price adjustment process for rental housing and the natural vacancy rate institute of a university of ii business and california economic research berkeley center for real estate and urban economics working paper series working paper 82 53 the price adjustment process for rental housing and the natural vacancy rate by kenneth t rosen lawrence b smith these ers are preliminary in natu heir purpose 39 to stimulate discussion comm therefore t are n ted or q d in any pub on wit the express permissi the author graduate school of business administration