money and capital abstract the effects of money anticipated inflation on capital formation is a classic issue in macroeconomics previous papers adopt reduced form approaches putting money in the utility function or imposing cash in advance but using otherwise frictionless models we follow instead a literature that tries to be explicit about the frictions making money essential this introduces new elements including a two sector structure with centralized and decentralized markets stochastic trading opportunities and bargaining these elements matter quantitatively and numerical results differ from findings in the reduced form literature the analysis also reduces a gap between microfounded monetary economics and mainstream macro

effects of economic shocks on children s employment and schooling in brazil abstract this paper uses longitudinal employment survey data to analyze the impact of household economic shocks on the schooling and employment transitions of young people in metropolitan brazil the paper uses data on over 100 000 children ages 10 16 from brazil s monthly employment survey pme from 1982 to 1999 taking advantage of the rotating panels in the pme we compare households in which the male household head becomes unemployed during a four month period with households in which the head is continuously employed probit regressions indicate that an unemployment shock significantly increases the probability that a child enters the labor force drops out of school and fails to advance in school the effects can be large implying increases of as much as 50 in the probability of entering employment for 16 year old girls in contrast shocks occurring after the school year do not have significant effects suggesting that these results are not due to unobserved characteristics of households that experience unemployment shocks the results suggest that some households are not able to absorb short run economic shocks with negative consequences for children

monetary policy with asset backed money we study the use of asset backed money in a neoclassical growth model with illiquid capital a mechanism is delegated control of productive capital and issues claims against the revenue it earns these claims constitute a form of asset backed money the mechanism determines i the number of claims outstanding ii the dividends paid to claim holders and iii the structure of redemption fees we find that for capital rich economies the first best allocation can be implemented and price stability is optimal however for sufficiently capital poor economies achieving the first best allocation requires a strictly positive rate of inflation in general the minimum inflation necessary to implement the first best allocation is decreasing in capital wealth

total factor carbon emission performance of the chinese transportation industry a bootstrapped non radial malmquist index analysis this paper proposes a non radial malmquist co2 emission performance index nmcpi for measuring dynamic changes in total factor co2 emission performance over time this index enables the consideration of non radial slacks in the conventional malmquist co2 emission index mcpi the nmcpi is calculated based on a non radial directional distance function derived by several data envelopment analysis dea models furthermore nmcpi could be decomposed into an efficiency change ec index and technological change tc index a bootstrapping approach is conducted to introduce statistical inferences into the nmcpi and its decompositions based on the proposed indices the dynamic co2 emission performance change and its decompositions of the chinese regional transportation industry from 2002 to 2010 are investigated the empirical results demonstrate that the total factor carbon emission performance of the transportation industry as a whole decreased by 32 8 over the period and this reduction was primarily caused by technological decline

the distribution of money and prices in search equilibrium this article considers a search theoretic model of monetary exchange agents bargain over both the amount of money and the quantity of goods to be exchanged in bilateral meetings determining endogenously the distributions of money and of prices i show that money is neutral if changes in the money supply are accomplished via proportional transfers however within the class of lump sum transfers an increase of the rate of monetary expansion tends to decrease the dispersion of wealth and prices and to improve welfare when inflation is low but when inflation is high enough the opposite effects occur

unobserved variables and the elusive added worker effect consistent with recent empirical work this study finds no evidence of the added worker effect among married couples in the u s it is hypothesized that unobserved variables may be obscuring this added worker behavior this hypothesis is rejected the labor supply behavior of married women is influenced by the permanent and not the transitory nature of their spouses unemployment wives with frequently unemployed husbands have lower reservation wages yet apart from their measured human capital these same women face persistently lower wage rates and higher unemployment propensities in the labor market as a result married women with unemployed spouses are no more likely to be in the labor force and are actually less likely to be employed than observationally equivalent married women with employed spouses copyright 1991 by the london school of economics and political science

the added worker effect the term added worker effect usually refers to a temporary increase in the labor supply of married women whose husbands have become unemployed this paper presents a new approach to the empirical study of the added worker effect which emphasizes the role of employment uncertainty and credit constraints in generating short run participation and employment patterns the estimates are based on employment transition probabilities rather than static measures of labor supply and are used in a dynamic simulation of changes in the employment and participation rates of wives following an exogenous increase in unemployment among their husbands the results show a small but significant added worker effect at least for white families and suggest that the apparent disagreement among previous studies may stem from different approaches to measuring responses to a transitory event such as an unemployment spell

measuring technical and environmental efficiency in a state contingent technology most developed countries support farming activities through policies that are tailored to meet their specific social economic and environmental objectives economic and environmental efficiency have recently become relevant targets of most of these policies whose sound implementation can be enhanced by monitoring farm performance from a multidimensional perspective this paper proposes farm level technical and environmental efficiency measures that recognize the stochastic conditions in which production takes place a state contingent framework is used to model production uncertainty an implementable representation of the technology is developed using data envelopment analysis the application focuses on a sample of catalan arable crop farms results suggest that technical efficiency is slightly lower in bad than in good growing conditions nitrogen pollution can decrease substantially more under good than bad growing conditions

mixed strategy nash equilibrium in data envelopment analysis abstract in a typical productivity analysis the efficiency measure assumes a perfectly competitive market with an endogenous price and depends on a fixed orientation with respect to a specific firm such as an input oriented measure when an imperfectly competitive market affects the endogenous price however firms may take a mixed strategy approach to address uncertain competition this study proposes a mixed strategy measure msm we construct a model embedded with a data envelopment analysis dea framework that identifies the mixed strategy nash equilibrium in the first stage and considers a probabilistic and multi oriented efficiency measure in the second stage based on the environmental regulation and a typical nash measure we create two indices environmental consistency and strategic consistency to support the business roadmap development we validate the proposed msm with an empirical study of china s electric power industry the results find that the proposed msm complements the nash measure and the msm model successfully supports our two managerial strategies invest in capacity expansion or develop emission abatement technology

a rudimentary random matching model with divisible money and prices abstract we consider a version of kiyotaki and wright s monetary search model in which agents can hold arbitrary amounts of divisible money a continuum of stationary equilibria indexed by the aggregate real money stock exists with all trading occurring at a single price there is always a maximum level of the real money stock consistent with existence of such an equilibrium in the limit as trading becomes faster relative to discounting any real money stock becomes feasible in such an equilibrium in contrast to the original kiyotaki wright model higher equilibrium real money stocks unambiguously correspond to higher welfare in this costless production environment journal of economic literature classification numbers d51 e40

has china s fast industrial growth been efficient an industry level investigation with a newly constructed data set we adopt contemporaneous nonradial and variable returns to scale assumptions in a data envelopment analysis dea exercise to address the inefficiency problem in chinese industries in different policy regimes using a newly constructed data set for 24 chinese manufacturing industries in 1952 2008 while confirming that the central planning period was indeed a graveyard for productivity that entailed severe technical regress and efficiency losses we do not find a steady improvement in efficiency during the reform period despite strong technical progress we argue that the resurgent prominence of the government and the state sector since the late 1990s especially following china s world trade organization accession has obstructed the efficiency improvement

multilateral productivity comparisons with undesirable outputs in a recent paper in this journal caves christensen and diewert i982 hereafter ccd derive what they term multilateral superlative indexes for use in the comparison of output input and productivity across economic entities the indexes derived are distinguished both by transitivity and by a high degree of characteristicity a term introduced by dreschler i 973 to refer to the degree to which the weights used in a comparison are specific to the observations being compared though the indexes are presented with the application to multicountry comparisons of output input and productivity foremost in mind the authors note that they may be useful in a number of other contexts as well i e firms and industries time series and pooled time series and cross section all of the applications mentioned or implied however have this in common they involve the comparison of productive entities all of whose outputs are sold for positive prices this is not surprising of course since most products with which economists are concerned possess this characteristic however it does render incomplete or potentially misleading the comparison of productive entities which produce significant amounts of undesirable outputs such as water and air pollution since the list of such entities is rather long and includes industries critical to many national and regional economies e g chemicals paper petroleum refining copper and steel the omission of this factor from consideration may be a matter of some importance 2 consider for example a comparison of the productivity of the steel industries

exploring the green total factor productivity of china s metallurgical industry under carbon tax a perspective on factor substitution abstract the characteristics of high emissions and high energy consumption in metallurgical industry have brought great challenges to the green and low carbon transition in china as a low carbon economic instrument carbon tax is generally considered to be an effective way to reduce co2 emissions through raising energy cost but whether it will promote the green total factor productivity gtfp of china s metallurgical industry is still unanswered under this background this paper uses provincial panel data over years 2000 2015 to investigate the impact of carbon taxation on gtfp of metallurgical industry from the perspective of inter fuel and inter factor substitution the lock in mechanism is also incorporated in the three stage estimation model to better reflect the asymmetric price response of factors and fuels the results reveal that the slow marketization process of energy price and the rigid demand for energy in china s metallurgical industry hinder the substitution effect of energy the implementation of carbon tax has limited effect on energy saving and co2 reduction in the metallurgical industry of china and levying a carbon tax has a negative effect on gtfp during the research period therefore the government should not achieve co2 reduction targets at the expense of green economic growth gtfp is suggested to be considered in future assessment criteria in the process of transforming to low carbon economy

a search theoretic approach to monetary economics the essential function of money is its role as a medium of exchange the authors formalize this idea using a search theoretic equilibrium model of the exchange process that captures the double coincidence of wants problem with pure barter one advantage of the framework described here is that it is very tractable the authors also show that the model can be used to addre ss some substantive issues in monetary economics including the potenti al welfare enhancing role of money the interaction between specializat ion and monetary exchange and the possibility of equilibria with multip le fiat currencies copyright 1993 by american economic association

slipping into and out of poverty the dynamics of spells this paper examines the dynamics of poverty previous analyses have examined either fluctuations in the male heads earnings or the frequency of poverty periods over a fixed time frame our approach depends on a definition of spells of poverty using this methodology we find that the majority of poor persons at any time are in the midst of a rather long spell of poverty the methodology also allows us to estimate that less than 40 percent of poverty spells begin because of a drop in the heads earnings while 60 percent of the spells end when the heads earnings increase thus researchers must focus on household formation decisions and on the behavior of secondary family members there has been a dramatic resurgence recently of discussion of the underclass the discussion is reminiscent of debates about poverty during the 1960s when the notions of a culture of poverty particularly as popularized by michael harrington s other america 1962 dominated both intellectual and policy thinking the idea of an underclass seems inconsistent however with much of the research on the dynamics of poverty during the 1970s that research using new longitudinal data seemed to show that the bulk of the poor were poor for only a few years the research also showed that the poor were a very heterogeneous group including a small minority of persistently poor the persistence of poverty is of interest both for understanding the phenomenon and for developing policy claims about dependency and separate life styles among the poor rest on assumptions about the long term nature of poverty questions

jack of all trades or a master of one specialization trade and money we consider a model of decentralized exchange where individuals choose the set of goods they produce specialization involves producing a smaller set of goods and doing it more proficiently in doing so agents reduce production costs but also reduce the ease of trading their output we derive the equilibrium degree of specialization and examine how it is affected by underlying fundamentals due to the existence of a hold up problem individuals specialize too little relative to the social optimum introducing money leads to more specialization relative to barter and increases welfare

environmental regulations and productivity growth the case of fossil fueled electric power generation this paper measures and analyzes the effect of sulfur dioxide emission restrictions on the rate of productivity growth in the electric power industry over the 1973 79 business cycle a firm specific measure of regulatory intensity is developed which depends on the severity of the emission standard the extent of enforcement and the unconstrained emission rate relevant to each utility the results indicate that emission regulations result in significantly higher generating costs primarily from the increased use of low sulfur fuels the average rate of productivity growth was reduced by 0 59 percentage points per year for constrained utilities

the added worker effect in the spanish case this study estimates several equations of labour participation for married women to check if the added worker hypothesis is fulfilled in the spanish case to test this hypothesis a subsample of married women are used obtained from the survey of structure conscience and biography of class of the year 1991 scbc 91 the main outcome is that women s labour participation in spain is still conditioned by their husbands labour status specifically women s labour participation is stimulated when their husbands are unemployed

a divisible search model of fiat money this paper extends the kiyotaki wright search model of fiat money to allow for divisible money and goods the extension allows me to examine the standard issues in monetary economics such as the neutrality and superneutrality of money by severing the artificial link in the kiyotaki wright model between the money supply and the number of money holders it is shown that money is neutral but not superneutral money growth generates a trading opportunity effect it changes the fraction of different agents in the economy and hence changes the probability with which agents have a successful match in addition money growth has a negative effect on the real money balance that is familiar in walrasian monetary models the balance of the two effects can imply a positive optimal money growth rate

search bargaining money and prices the goal of this paper is to extend existing search theoretic models of fiat money which until now have assumed that the price level is exogenous by explicitly incorporating bilateral bargaining this allows us to determine the price level endogenously and leads to additional insights concerning the role of money for example we find that monetary equilibria are generally inefficient in the sense that output and prices differ from the solution to a social planner s problem although the difference can become small as the discount rate or search friction vanishes we also find that there exist nonstationary inflationary equilibria

data envelopment analysis for environmental assessment comparison between public and private ownership in petroleum industry abstract environmental assessment recently becomes a major policy issue in the world this study discusses how to apply data envelopment analysis dea for environmental assessment an important feature of the dea environmental assessment is that it needs to classify outputs into desirable good and undesirable bad outputs because private and public entities often produce not only desirable outputs but also undesirable outputs as a result of their production activities this study proposes the three types of unification for dea environmental assessment by using non radial dea models the first unification considers both an increase and a decrease in the input vector along with a decrease in the direction vector of undesirable outputs this type of unification measures unified efficiency the second unification considers a decrease in an input vector along with a decrease in the vector of undesirable outputs this type of unification is referred to as natural disposability and measures unified efficiency under natural disposability the third unification considers an increase in an input vector but a decrease in the vector of undesirable outputs this type of unification is referred to as managerial disposability and measures unified efficiency under managerial disposability all the unifications increase the vector of desirable outputs to document their practical implications this study has applied the proposed approach to compare the performance of national oil firms with that of international oil firms this study identifies two important findings on the petroleum industry one of the two findings is that national oil companies under public ownership outperform international oil companies under private ownership in terms of unified operational and environmental efficiency and unified efficiency under natural disposability however the performance of international oil companies exhibits an increasing trend in unified efficiency the other finding is that national oil companies need to satisfy the environmental standard of its own country while international oil companies need to satisfy the international standard that is more restricted than the national standards as a consequence international oil companies outperform national oil companies in terms of unified efficiency under managerial disposability

search inflation and capital accumulation abstract this paper constructs a model to integrate the search monetary theory into a neoclassical growth model with divisible goods and money the model is used to examine the relationship between money growth and capital accumulation the framework uncovers a distinct extensive effect that an increase in the money growth rate increases the frequency of successful trades by increasing the number of agents in the market this positive extensive effect on the number of trades can dominate the conventional negative intensive effects of money growth on individuals labor input and real money balance in which case increasing the money growth rate increases aggregate capital and output

hyperbolic efficiency and return to the dollar abstract this paper after establishing the relations between hyperbolic graph measure of technical efficiency and the radial measures of technical efficiency shows that the dual cost and revenue interpretation of the hyperbolic efficiency measure is related to georgescu roegen s notion of return to the dollar n georgescu roegen in koopmans t ed activity analysis of production and allocation wiley new york 1951 pp 98 115 once this relation is established it leads to a derivation of an allocative efficiency index which measures the price distortions using data on observed costs and revenues without requiring information on prices

long term unemployment and labour force participation a decomposition of unemployment to test for the discouragement and added worker hypotheses we sharpen tests for discouragement and added worker effects by splitting the explanatory variable the unemployment rate into a short term component and a long term component while short t

economic versus environmental improvement potentials of danish pig farms this article demonstrates how economic and environmental improvement potentials of danish pig farms can be estimated using data envelopment analysis dea to avoid some of the problems associated with the definition of undesirable outputs environmental variables are included as nutrients applied with manure and nutrients removed with the crops these environmental variables are combined with a series of economic variables including the costs of fertilizer furthermore subvector efficiency and a two step analysis are used in order to consider economic and environmental technical efficiency separately the empirical results show considerable improvement potentials especially on the environmental variables sensitivity studies validate that these results are robust to possible uncertainties in the measurement of the environmental variables

a kuznets curve in environmental efficiency an application on oecd countries the role of the environment is an important issue in policy making andthe accurate assessment of the environmental conditions is vital inthis paper using nonparametric techniques an environmental efficiencyindex is developed for each of the oecd countries these indexes allowone both to do cross section comparisons on the state of each country sproduction process in its treatment of undesirable outputs and also totrace each country s modification of their production processesovertime furthermore in this study we investigate the factorsunderlying societies environmental concerns that eventually lead tochanges in the environmental efficiency the results provide furtherempirical evidence for the environmental kuznets curve hypothesis

technical efficiency and impact of environmental regulations in farrow to finish swine production in taiwan this article demonstrates how technical efficiency and the impact of environmental regulations of taiwanese farrow to finish swine production can be estimated in the presence of undesirable outputs the issue of measuring technical efficiencies while considering undesirable outputs has been addressed by past studies but the proper method of including undesirable outputs has always been a subject of debate this article develops a data envelopment analysis dea based model that includes undesirable outputs the technologies of desirable output production and undesirable output control are considered simultaneously this allows one to transform undesirable output into desirable output whereby a traditional shephard distance function can be used to measure technical efficiencies an approach to measuring the impacts due to environmental regulations is then derived empirical results show that larger farms are more technically efficient than small sized farms but no clear conclusions can be reached for the measures of regulatory impact among farms with different sizes on average the sample farms incurred an opportunity cost due to environmental regulations equivalent to 9 8 of market value opportunity costs rise with efficiency

does unemployment insurance crowd out spousal labor supply previous research on unemployment insurance ui has emphasized the program s effect on individual search behavior this state contingent income may also reduce the labor supply of family members during the unemployment spell we investigate this question within the context of wives labor supply responses to their husbands unemployment spells we find strong crowdout of this form of family self insurance our estimates imply that for each dollar of ui receipt wives earn up to 73 cents less the reduction in spousal hours of work is over 40 as large as previous estimates of the effect of ui on search time of husbands

labour force transitions among low wage married couples a simultaneous probability model interdependence in the labour force transitions of low income married couples is studied it utilizes a simultaneous probability model in which each person s job exit depends in part on the job transitions of their spouse estimates are based on data from the seattle denver income maintenance experiments the evidence appears to indicate that wives emulate the nonwork status of their husbands wives of exit prone husbands are themsleves more exit prone and less likely to enter employment evidence in favour of reverse dependence of husbands status on wives exits appears to be weak and imprecise

an investment analysis for china s sustainable development based on inverse data envelopment analysis abstract in the face of environmental degradation sustainable development has become a common goal across the globe making a scientifically based investment scheme is of great significance to promote the sustainable development of china s economy however there is scarce research related to such an investment scheme of sustainable development this paper proposes a new inverse data envelopment analysis method with undesirable outputs to make several scientifically based investment schemes from different perspectives namely the natural regulation and optimal perspectives by this method decision makers can scientifically forecast the specific amount of investment based on their actual sustainable development objectives which is conducive for reducing the blindness of investment in the future in addition a new ideal perspective is defined to guide a definite direction for improving the level of sustainable development combined with the gray forecasting model gm 1 1 the methods proposed by this paper were then applied to analyze the investment problem for china s sustainable development during the 2015 2024 period the results show that the unbalanced distribution of labor investment and the excessive investment in capital and energy are serious barriers to china s sustainable development in the short term and in the long term the demand for investment in labor and capital will continue to increase along with a lower demand for energy investment and that appropriately strengthening environmental regulations will not affect the overall demand for investment meanwhile improvement directions for improving china s sustainable development are discussed and the results show that most of developing and undeveloped regions in china have great potential for improvement finally some suggestions are proposed in order to create better conditions for china s sustainable development

money and price dispersion we relax restrictions on the storage technology in a prototypical monetary search model to study price dispersion in this case buyers and sellers enter matches with potentially different willingness to trade across the distribution of possible bilateral matches prices generally will differ even though agents have identical preferences and technologies we provide existence conditions for a particularly simple equilibrium pattern of exchange we prove that in the limiting case where search frictions are eliminated equilibrium prices are uniform we also show that a higher initial money stock can raise the average price level and increase price dispersion

the added worker effect abstract this paper uses the gross change data and cointegration error correction modeling to test the hypothesis of added worker effect in the u s labor market it is shown that prime age males unemployment u m and flows from unemployment to out of the labor force un m cause an increase in prime age and young females flows from not in the labor force keeping house to employment and decrease their flows into unemployment

strategic corporate social responsibility and economic performance this article proposes a novel corporate social responsibility csr index based on a data envelopment analysis dea model acknowledging the argument that companies might favour those csr dimensions that provide strategic competitive advantages we argue that the index can capture companies strategic approach to csr furthermore our findings reveal a neutral relationship between this strategic csr index and economic performance as measured by return on assets roa and tobin s q when controlling for firm unobserved heterogeneity and past economic performance by contrast an equally weighted index of the same csr indicators is found to be negatively related with roa which reinforces our claim that this specific dea based index is a measure of strategic csr

multilateral productivity comparisons when some outputs are undesirable a nonparametric approach multilateral productivity comparisons of firms producing multiple outputs some of which are undesirable are obtained by making two modifications to the standard farrell approach to efficiency measurement the restriction that production technology satisfy strong disposability of outputs is relaxed to allow for the fact that undesirable outputs may be freely disposable and the efficiency measures are modified to allow for an asymmetric treatment of desirable and undesirable outputs performance measures that satisfy these requirements are calculated as solutions to programming problems the methodology is applied to a sample of mills producing paper and pollutants

human capital risk contract enforcement and the macroeconomy we use data from the survey of consumer finance and survey of income program participation to show that young households with children are under insured against the risk that an adult member of the household dies we develop a tractable macroeconomic model with human capital risk age dependent returns to human capital investment and endogenous borrowing constraints due to the limited pledgeability of human capital limited contract enforcement we show analytically that consistent with the life insurance data in equilibrium young households are borrowing constrained and under insured against human capital risk a calibrated version of the model can quantitatively account for the life cycle variation of life insurance holdings financial wealth earnings and consumption inequality observed in the us data our analysis implies that a reform that makes consumer bankruptcy more costly like the bankruptcy abuse prevention and consumer protection act of 2005 leads to a substantial increase in the volume of both credit and insurance

reexamining the added worker effect i introduction the added worker effect refers to a wife entering the labor force when her employed husband becomes unemployed this labor supply response is a transitory method of intertemporally smoothing family income and consumption and is of interest to labor economists and to macroeconomists concerned with the labor force participation of married women over the business cycle the added worker effect is familiar in terms of the income and substitution framework of the labor supply model when family earnings fall as a result of the husband s unemployment the income effect influences the wife to increase her labor supply similarly the wife s reservation wage for market work falls when the husband s increased nonemployment time provides a substitute for her home production and she is more likely to join the labor force as an added worker the wife s reservation wage is also influenced by the degree of complementarity or substitutability of leisure time between the husband and the wife observing the net result of these three factors the existence and the magnitude of the added worker effect is an empirical question this paper expands on the conventional income and substitution explanations in order to emphasize how employment uncertainty and liquidity constraints influence the added worker effect in the context of a dynamic model of family labor supply an unanticipated unemployment spell by the husband and the resulting shift in the budget constraint will alter expectations of future unemployment probabilities which will cause the wife to revise her life cycle profile of current and future labor supplies the explanation of liquidity constraints as a cause of the added worker effect is discussed in much of the literature see mincer 1962 1966 killingsworth and heckman 1986 and rosen 1992 as stressed by lundberg 1985 anticipated unemployment should not produce an added worker effect unless credit constraints limit access to borrowing against future income explaining how the timing of labor supply could be affected by variations in family income mincer 1962 cites capital market imperfections as a reason why a transitory increase in labor force participation of the wife may well be an alternative to dissaving asset decumulation or increasing debt while the added worker effect is easily explained by theoretical models of family labor supply such as those sketched above or that presented by ashenfelter 1980 empirical work has failed to reach a consensus regarding its magnitude or even whether it exists 1 although heckman and macurdy 1982 and lundberg 1985 have shown that the added worker effect is small yet significant pencavel 1982 does not find an added worker effect once he controls for individual specific fixed effects and maloney 1987 1991 does not find any evidence of an added worker effect it is interesting to note the wide variety of data used in this literature heckman and macurdy use annual panel data lundberg uses monthly panel data constructed from quarterly interviews pencavel uses annual panel data constructed from quarterly interviews and maloney uses annual cross sectional data this paper is motivated both by the conflicting empirical work regarding whether or not the added worker effect exists and by the view that the added worker effect should be analyzed using panel data with a short recall period cross sectional microdata cannot adequately capture the intertemporal decisions of wives joining the labor force when their husbands become unemployed annual measures of labor supply are less than ideal for examining the added worker effect since short spells of unemployment by the husband in the preceding year are often forgotten see horvath 1982 and akerlof and yellen 1985 my purpose is to document the magnitude of the added worker effect using monthly longitudinal microdata from the current population survey cps

constrained geographical mobility and gendered labor market outcomes under structural adjustment evidence from egypt summary we examine in this paper the evolution of gender gaps in labor market outcomes during structural adjustment and explore the extent to which widening gaps can be attributed to women s more limited geographical mobility using comparable household surveys carried out in 1988 and 1998 we show that gender gaps in access to wage and salary employment and in earnings have widened during this period especially in the nongovernmental sector we attribute these changes at least in part to women s more limited geographical mobility we show that women s commuting rates are not only much lower than those of men but also have remained stagnant in a period where males were having to travel significantly more to obtain jobs outside the government

husband s unemployment and wife s labor supply the added worker effect across europe this article investigates the responsiveness of women s labor supply to their husband s job loss the so called added worker effect the authors contribute to the literature by taking an explicit internationally comparative perspective in analyzing the variation of the added worker effect across welfare regimes using longitudinal data from the european union statistics on income and living conditions eu silc survey covering 28 european countries from 2004 to 2013 they find evidence of an added worker effect which however varies over both the business cycle and the different welfare regimes in europe the latter result might be explained in part by differences in the design of the unemployment benefit system across countries which create different incentives for the labor supply of wives of unemployed men

on money as a medium of exchange we analyze economies in which individuals specialize in consumption and production and meet randomly over time in a way that implies that trade must be bilateral and quid pro quo nash equilibria in trading strategies are characterized certain goods emerge endogenously as media of exchange or commodity money depending both on their intrinsic properties and on extrinsic beliefs there are also equilibria with genuine fiat currency circulating as the general medium of exchange we find that equilibria are not generally pareto optimal and that introducing fiat currency into a commodity money economy may unambiguously improve welfare velocity acceptability and liquidity are discussed

the entry of the wife into the labor force in response to the husband s unemployment a study of the added worker effect in brazilian metropolitan areas abstract the temporary participation in the labor force of wives whose husbands have become unemployed has been referred to in the literature as the added worker effect awe previous research conducted using data from the united states has found only a small awe a result that accords with life cycle models with perfect capital markets the current article uses panel data obtained using a short recall period to evaluate the awe in the six major brazilian metropolitan areas our results show a positive awe that is much more substantial than those found for the u s economy the finding of an important awe for brazil suggests that liquidity constraints may prevent brazilian households from sufficiently smoothing income and consumption in periods when the male head of the family is unemployed alternatively the significant awe may indicate that the husband s unemployment signals household members that there may be a substantial reduction in future income flow

optimal monetary policy and imperfect financial markets a case for negative nominal interest rates this article studies optimal monetary policy in a model with credit frictions and money demand we show that augmenting a standard new keynesian model with money demand and financial frictions generates a mechanism that in equilibrium gives rise to optimal negative nominal interest rates in addition we find that the tighter credit markets are the lower the optimal nominal policy interest rate and the more likely it is to be negative quantitatively when credit constraints are binding a standard calibration of the model generates an optimal nominal policy interest rate that is roughly 4 annually jel e31 e41 e43 e44 e52 e58

household labor supply and the gains from social insurance the marginal gains from social income insurance programs are captured by the gap in the marginal utility of consumption across states of nature to identify this gap in the context of the household this paper offers a new labor supply based approach that leverages household level economic interactions and optimality conditions we demonstrate that in frameworks of efficient household allocations spousal labor supply responses to shocks have direct implications for the gains from more generous government benefits to households we show that this holds for both intensive and extensive margin responses under fairly general conditions our analysis illustrates how labor market data can be used for assessing marginal welfare gains in a general class of social insurance schemes including the large and important programs of disability insurance and survivors benefits hence household labor supply behavior and responses to shocks which are widely studied in theoretical and empirical work hold valuable information for the optimal design of social insurance

issue in pollution control interplant cost differences and economies of scale debate on interplant pollution control cost differences focuses on the question of whether a system of taxes or transferable discharge permits should require those plants with low treatment costs to control a higher share of effluents another issue under debate is whether those industries with a large minimum size may be effectively barred by pollution control requirements evidence of the inefficiency of present institutional arrangements is shown by studying production function estimations of 30 pulp and paper mills in wisconsin and michigan a more efficient reallocation of pollution control resources could be effected with more market oriented regimes 58 references 6 tables dck

efficiency assessment of primary care providers a conditional nonparametric approach this paper uses a fully nonparametric approach to estimate efficiency measures for primary care units incorporating the effect of exogenous environmental factors this methodology allows us to account for different types of variables continuous and discrete describing the main characteristics of patients served by those providers in addition we use an extension of this nonparametric approach to deal with the presence of undesirable outputs in data represented by the rates of hospitalization for ambulatory care sensitive condition acsc the empirical results show that all the exogenous variables considered have a significant and negative effect on efficiency estimates

a new frontier approach to model the eco efficiency in european countries abstract this study aims to evaluate the resource and environment efficiency problem of european countries we specify a new stochastic frontier model where gross domestic product gdp is considered as the desirable output and greenhouse gases ghg emissions as the undesirable output capital labor fossil fuels and renewable energy consumption are regarded as inputs gdp ghg ratio is maximized given the values of the other four variables the study is divided into two distinct periods 2000 2004 and 2005 2011 this division is related to the implementation of the kyoto protocol in 2005 and will allow us to evaluate the difference between the levels of efficiency before and after the establishment of environmental targets since stochastic frontier models are typically ill posed a new maximum entropy approach to assess technical efficiency which combines information from the data envelopment analysis and the structure of composed error from the stochastic frontier approach without requiring distributional assumptions is presented in this work

rationality of energy efficiency improvement targets under the pat scheme in india a case of thermal power plants abstract the market based perform achieve and trade scheme was introduced in india to enhance the energy efficiency of energy intensive sectors and for thermal power plants by reducing their specific energy consumption within the framework of a tradable certificate scheme international experience suggests that effectiveness of such schemes is greatly influenced by the assigned targets of the obligated units setting rational targets is thus a key aspect of successful implementation of the scheme in the present study we examine the rationality of the targets set for the power sector of india based on comparing it with energy saving potential of the plants and the targets assigned to the respective plants data envelopment analysis models are used to determine relative efficiency and energy saving potential the study results indicate that in most cases i the targets are much less than the actual potentials of the thermal power sector ii there exist substantial inefficiencies within the system in both energy use and managerial dexterity and iii if the sector realizes its full potential then the energy saving certificate market may witness a surplus of 4 7 million certificates on account of thermal power sector alone

money and prices a model of search and bargaining abstract this paper makes commodities divisible and incorporates bargaining into the search theoretic model of money to determine the purchasing power of money or price it is shown that two monetary equilibria always coexist where fiat money is universally accepted the two equilibria differ in price output welfare and the velocity of money sunspot monetary equilibria exist in which money is universally accepted in all states of the economy multiplicity has novel implications on the effectiveness of currency substitution and exchange market intervention journal of economic literature classification numbers c78 e40

alternative methods for environmentally adjusted productivity analysis abstract advances in the productivity with which food is produced around the world have been made possible through the intensive use of industrial inputs that have important environmental impacts like standard measures of macroeconomic performance however commonly used measures of agricultural efficiency and productivity account only for marketed commodities and inputs but ignore the environmental effects of these production processes a more complete analysis of trends in the sector s productivity requires the use of models that incorporate these environmental effects to provide better measures of the contributions of the sector from the social point of view this paper compares the conceptual merits and empirical performance of alternative approaches that can be employed for this purpose input distance functions output distance functions nonparametric methods and index number approaches each of the methods has relative strengths and weaknesses the methods are empirically illustrated using data from the canadian pulp and paper industry

is environmental efficiency trade inducing or trade hindering abstract global efforts to identify strategies for sustainable economic growth and development underline the need for understanding important links between environmental policies and international trade in this paper by constructing an environmental efficiency index for 111 countries from 1980 to 2009 we are able to empirically test for one such link an improvement in the environmental efficiency index in terms of carbon dioxide emissions reflects a decrease in the cost of efforts to mitigate the environmental costs associated with growth countries that improve their environmental efficiency are found to experience strong international trade effects both through increased exports and increased imports while the positive link between efficiency improvements and exports is supportive of the porter hypothesis the positive link between efficiency improvements and imports is supportive of strong positive income effects on account of environmental efforts these results which are robust to alternative estimation strategies lend strong support to global efforts to improve countries environmental efficiencies

efficiency evaluation of chinese regional industrial systems with undesirable factors using a two stage slacks based measure approach abstract the process of a regional industrial system in china can be separated into two internal stages production stage and pollutant abatement stage this paper aims to examine the efficiency of chinese regional industrial systems by taking the operational performance of its two internal stages into consideration unlike traditional data envelopment analysis models that treat decision making units as black box when measuring their efficiencies with undesirable factors this paper proposes a two stage model based on slacks based measure to evaluate the efficiency of chinese regional industrial systems by decomposing the efficiency into production efficiency and abatement efficiency the proposed model can estimate the efficiencies of the whole regional industrial system its production stage and abatement stage simultaneously the model provides a way of improving performance of a regional industrial system through identifying its inefficient internal stages this can help to find out the main sources of the inefficiency that arise from the internal stages within the system which cannot be done by using conventional environmental data envelopment analysis models findings resulting from the model application show that there are great disparities in regional industrial systems efficiencies and the inefficiency of chinese industrial system is largely driven by the abatement stage

exploring the existence of kuznets curve in countries environmental efficiency using dea window analysis abstract this paper using data envelopment dea window analysis and generalized method of moments gmm estimators examines the existence of a kuznets type relationship between countries environmental efficiency and national income specifically it measures the environmental efficiency of 17 oecd countries by constructing environmental efficiency ratios for the time period 1980 2002 the analysis with the application of dynamic panel data reveals that there isn t a kuznets type relationship between environmental efficiency and income allowing for dynamic effects we find that the adjustment to the target ratio is instantaneous we also find that increased economic activity does not always ensure environmental protection and thus the path of growth is important in addition to the growth itself

deceleration in female labor force participation in latin america after half a century of sustained growth female labor force participation has decelerated in latin america especially among married vulnerable women based on a large database of microdata from household surveys this paper documents this recent deceleration and provides evidence on the determinants we argue that the fast economic growth experienced by the region in the 2000s was an important driving force lower unemployment and higher earnings of male partners plus increased social assistance may have reduced the pressing need for vulnerable women to take low quality jobs

technical environmental and eco efficiency measurement for supplier selection an extension and application of data envelopment analysis with increased global awareness of environmental sustainability green supply chain management gscm has received considerable attention in the literature over the decade green supplier selection and assessment in gscm is one of the most significant and complex challenges for supply chain managers this paper provides a new model and approach for green supplier selections by decomposing their efficiency indicators into technical environmental and eco efficiency scores we show that the models in the literature are computationally intensive and are not able to measure eco efficiency properly instead of running three different models linear goal programming is used to integrate technical environmental and eco efficiency objectives into a multiple objective linear programming molp data envelopment analysis dea model therefore the model proposed in this paper is less computationally intensive than the models in the literature the new model provides a more valid eco efficiency indicator of decision making units dmus by utilizing a better combination of the technical and environmental efficiency objectives compared to the conventional models unlike the conventional models the new model identifies dmus as being eco efficient if and only if they are both technically and environmentally efficient we also discuss the non dominated weights as the solutions of the molp model and use them to construct technical environmental and eco cross efficiency matrices of the dmus in order to illustrate the effectiveness and applicability of the proposed model we present the real world business case of the hyundai steel company and its suppliers

total factor carbon emission performance of fossil fuel power plants in china a metafrontier non radial malmquist index analysis article i nfo this paper proposes the metafrontier non radial malmquist co2 emission performance index mnmcpi for measuring dynamic changes in total factor co2 emission performance over time the mnmcpi method allows for the incorporation of group heterogeneity and non radial slack into the previously introduced malmquist co2 emission performance index mcpi we derive the mnmcpi by solving several non radial data envelop ment analysis dea models we decompose the mnmcpi into an efficiency change ec index a best practice gap change bpc index and a technology gap change tgc index and based on the proposed indices we examine the dynamic changes in co2 emission performance and its decomposition of fossil fuel power plants in china for the 2005 2010 period the empirical results show a 0 38 increase in total factor co2 emission performance as a whole and a u shaped mnmcpi curve for the sample period because companies owned by the central government lack innovation and technological leadership the results suggest a missing link in the role of the central government in promoting co2 emission performance

reassessing cyclical changes in workers labor market status gross flows and the types of workers who determine them this analysis using current population survey data yields statistically compelling evidence that cyclical variations in gross flows of u s workers that is variations by business cycle phase in the number of workers transitioning from one labor market state to another each month were substantially smaller in 1986 2005 than in 1968 86 the authors identify six types of workers who would be expected to contribute to cyclical variations in these flows counter intuitively one such group consists of individuals whose decisions to enter or exit the labor force are independent of labor market conditions estimates suggest that these noncyclical movers are an empirically important component of gross flows into the labor force the authors contend that the presence of noncyclical movers precludes accurate measurement of the contributions of workers whose entry and exit decisions are consciously influenced by labor market conditions

household unemployment and the labour supply of married women a recent reform to the uk unemployment insurance ui system has reduced the duration of entitlement from 12 to six months the ui and welfare systems interact in the uk in such a way that exhaustion of ut for married individuals has potentially large disincentive effects on the labour supply of spouses a model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives we distinguish between transfer programme induced incentive effects correlation between labour supply and wages within couples complementarity between the leisure times of spouses and a discouraged worker effect

search money and capital a neoclassical dichotomy recent work has reduced the gap between search based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential this paper takes a further step toward this integration by introducing labor capital and neoclassical firms the resulting framework nests a search theoretic monetary model and a standard neoclassical growth model as special cases perhaps surprisingly it also exhibits a dichotomy one can determine the equilibrium path for the value of money independent of the paths of consumption investment and employment in the centralized market

employment constraints and the labor supply of married women a reexamination of the added worker effect little evidence is found to support the conventional notion of the added worker effect the husband s unemployment has no measurable impact on the wife s actual hours of work however the constraint on his ability to supply hours of work to the labor market and not simply his unemployment influences his wife s labor supply furthermore the observed hours of work of the wife may not accurately reflect her desired hours of work with these considerations the wife s labor supply is found to be positively associated with the unemployment and underemployment of her husband and this added worker effect is estimated to be quite substantial

income after job loss the role of the family and the welfare state that displaced workers suffer long lasting earnings losses is a stylized fact raising the question whether these losses are replaced by other means for married men increased labour supply by the wife may be one way another possibility is that the public welfare system offsets the same losses i used a swedish longitudinal data set containing married couples where the husband was either employed or made redundant in 1987 by an establishment closure there was no evidence that husbands job loss positively affected wives annual earnings although husbands utilization of unemployment insurance increased significantly government transfers including also sickness insurance disability insurance and means tested social benefits did not fully replace husbands long run earnings losses hence displaced workers seem to suffer also from long lasting losses in family income which in many respects is a better measure of economic welfare than individual earnings or wages