bluuebunny/crossref_metadata_2025 huggingface dataset:
Fastball Pitch Velocity Helps Predict Ulnar Collateral Ligament Reconstruction in Major League Baseball Pitchers
Authors: Chalmers Peter N. , Erickson Brandon J. , Ball Brian , Romeo Anthony A. , Verma Nikhil N.
Published: March 2016

Background:

Ulnar collateral ligament injury and its subsequent surgical reconstruction are some of the most common issues among Major League Baseball (MLB) players.

Purpose/Hypothesis:

The purpose of this study was to determine factors predictive of ulnar collateral ligament reconstruction (UCLR) among MLB pitchers. The hypothesis was that pitchers who underwent UCLR would have higher preinjury peak fastball pitch velocity.

Study Design:

Case-control study; Level of evidence, 3.

Methods:

Data on pitch velocity, number, and type (fastball, curveball, etc) for every pitcher and game within MLB from April 2, 2007 to April 14, 2015 were gathered from the publically available PitchFx database. Pitcher demographic information was also recorded. Data from after 2012 were excluded to avoid lead-time bias. Using publically available information, the names and approximate dates of surgery for every MLB pitcher who ever underwent UCLR, including those before 2007 and after 2012, were collected. Each pitcher-game was then classified as “control,” “preinjury,” or “postoperative.” Control and preinjury pitchers were then compared to determine risk factors for UCLR.

Results:

Overall, 1327 pitchers were included, of whom 309 (26.8%) had undergone UCLR. Of these, 145 had preinjury velocity data. Peak pitch velocity was significantly higher among preinjury pitchers than control pitchers (mean [95% CI], 93.3 mph [92.8-93.8] vs 92.1 mph [91.9-92.3]; P < .001), as was mean pitch velocity (87.8 mph [87.3-88.3] vs 86.9 mph [86.7-87.1]; P = .001). Both demonstrated a dose-response relationship. Although height did not differ ( P = .934), weight was significantly higher for preinjury pitchers than controls ( P = .005). Pitch counts per year were significantly lower for preinjury pitchers compared with control pitchers, although preinjury pitchers threw more breaking pitches ( P = .003). On multivariate regression, peak pitch velocity was the primary independent predictor of whether a pitcher underwent UCLR ( P < .001), with mean velocity ( P = .013), body mass index ( P = .010), and age ( P = .006) being secondary predictors. However, a model constructed with these variables only explained 7% of the variance in UCLR rates. Pitch counts were not significant predictors.

Conclusion:

Higher pitch velocity is the most predictive factor of UCLR in MLB pitchers, with higher weight and younger age being secondary predictors, although these factors only explained 7% of the variance in UCLR rates.
Evaluating Competing Data Series: A Telecommunications Application
Authors: Glass Victor , Cahn Susanna
Published: March 2016

Successful application of theory to practice requires good data. Yet, data can vary widely in quality, consistency, and even longevity of a particular data source. Measurement techniques can change, thus changing the definition of a data series, perhaps because of a business reorganization.

In part because of industry change caused by divestiture, there were several alternative sources of data on minutes of telephone demand during the time period covered by this study. A decision had to be made which series, or what combination, to use for forecasting access rates.

A canonical correlations model was used to test the similarity of two competing demand series. The number of statistically significant linear combinations indicates the number of demand series that are statistically distinct. If only one linear combination is significant, the canonical correlation algorithm will produce one optimal linear combination of these series to measure demand.

The exogenous variables were the ones chosen by the FCC for its aggregate demand model. They included: trend, seasonal dummies, lagged dependent variable, and subscriber lines. The two competing demand series were the dependent variables.

Results of the canonical correlation estimation showed two significant linear combinations, showing that the two competing demand series were statistically distinct and indicating that they did not both measure the true demand series.

Separate regressions of each demand series on the set of exogenous variables showed that one of them was predominantly explained by the lag of its own dependent variable; the other showed marked seasonality. A comparison with predivestiture data supported the seasonal pattern. As a result of this research, the latter series was considered the more realistic measure of demand.

This methodology could be applied similarly where, as was the case with divestiture in telecommunications, organizational discontinuity produces competing data series.
An Empirical Model of Voting Behavior in the Bulgarian Parliamentary Elections of 1994
Authors: Dimitrova Boryana
Published: March 2016

There are a number of empirical studies which look at the relationship between economic conditions and voting behavior in industrialized democracies. Free elections, however, are a new phenomenon in Eastern Europe. This study observes the relationship between economic conditions and voting behavior for the Bulgarian Parliamentary elections of 1994. The empirical model uses cross-sectional data from 31 constituency districts in Bulgaria to examine whether votes for parliamentary seats were influenced by ideological factors or economic factors such as inflation and unemployment. The results indicate that economic conditions are important determinants of voting behavior in Bulgaria. In addition, ideology was a major influence on votes in the rural areas. Thus, both the pain of the transition process initiated in 1991 by the Democratic government, and the ideology of the rural population explain the electoral victory of the Bulgarian Socialist Party (formerly the Communist Party) in 1994.
Saving-Investment Connection: Evidence from the Asean Countries
Authors: Anoruo Emmanuel
Published: March 2016

The relationship between saving and investment has been sharply debated in the literature following the pioneering work of Feldstein and Horioka (1980). This paper extends this debate to the ASEAN countries by using cointegration procedure in time-series analysis. Specifically, three analyses are conducted. First, saving and investment are tested to determine the order of integration using both the Dickey–Fuller (DF) and augmented Dickey–Fuller (ADF) approaches. Second, the long-run equilibrium relationship between saving and investment is explored by utilizing the cointegration tests proposed by Johansen and Juselius (1990). Third, Granger–causality tests based on vector error-correction models (VECM) are undertaken to ascertain the direction of causality between the two series. The results indicate that saving and investment are integrated of order one [1(1)]. Based on the cointegration results, saving and investment are found to share long-run equilibrium association. The Granger-causality tests reveal that investment causes saving in the cases of Indonesia and Singapore. For the Philippines, causality runs from saving to investment. As for Malaysia and Thailand, the results suggest bi-directional causality between saving and investment.
The Gauss Markov Theorem: A Pedagogical Note
Authors: Allen Ralph C. , Stone Jack H.
Published: March 2016

When stating the Gauss-Markov theorem, undergraduate econometric textbooks generally imply that the ordinary least squares (OLS) estimator has minimum variance. However, the proof of the Gauss Markov theorem indicates that the weights produced by the OLS estimator–not the formula per se–produce the unique minimum–variance estimator. An example demonstrates that other linear unbiased estimators can yield the same variance as the OLS estimator; however, the weights from such formulas are identical to the OLS weights. To avoid this pedagogical confusion, the statement of the theorem should emphasize the weights rather than the estimator itself.
Inflation Uncertainty and Unemployment: Some International Evidence
Authors: Seyfried William L. , Ewing Bradley T.
Published: March 2016

This research examined whether the uncertainty associated with the volatility of inflation impacted unemployment in the G7 countries over the last two decades. The results indicate that inflation variability had a significant short-run effect upon the unemployment rate in Canada, France, Italy, and the US while no effect was found for Germany, Japan, or the UK. However, consistent with economic theory, we find no evidence of a long-run trade-off between inflation variability and unemployment.
Globalizing the Economics Curriculum: A View from Japan
Authors: Fuess Scott M.
Published: March 2016

In recent years Japanese universities have been under pressure to internationalize their curricula and make undergraduate studies more cross-disciplinary. Many “reforms” have involved simple adjustments to existing programs; only a few institutions have gone so far as to develop entirely new programs of study. Senshu University, a leading private university in Tokyo, has undertaken a bold commitment to use economics as a foundation for integrated global studies. Senshu's experience suggests that there is an important role for using economic studies to internationalize undergraduate education.
Relative Salary Efficiency of Pga Tour Golfers
Authors: Nero Peter
Published: March 2016

Although a great deal of research has focused on Major League Baseball (MLB) players' salaries, there has been little attempt to derive a professional golfer's salary based upon tournament performance. MLB players' current salaries are a combination of two factors: past performances and predicted future performances. Professional golfers' earnings, however, are determined based upon how well each player performs in the tournaments entered throughout the course of a season. In other words, their earnings are a direct result of how efficiently a golfer can earn money given their statistical performance. This paper estimates golfers' earnings using four performance measures: putting average, driving distance, driving accuracy and the number of sand saves while controlling for the number of tournament starts. Using the estimated earnings equation, the relative performance of each golfer is calculated.
Matched-Long Term Maturity Stock and Bond Returns in International Markets
Authors: Cakici Nusret , Kellman Mitchell , Kraizberg Elli
Published: March 2016

This paper examines the relationship between real stock returns and matched-maturity long-term bond yields for 16 countries. We find a strong positive correlation between real stock returns and corresponding matched-maturity long-term bond returns for every country in the sample. Our findings also indicate that the volatility of long term real stock returns is closely related to the volatility of long term real bond yields. Finally, an additional cross-sectional analysis indicates that the sensitivity of real stock returns to real bond yields in each country is negatively related to the average rate of inflation and the coefficient of variation of these inflation rates.
The Monthly Effect in Stock Returns and Conditional Heteroscedasticity
Authors: Rosenberg Menahem
Published: March 2016

This paper analyzes the end-of-month (or monthly) effect in stock returns using a conditional GARCH variance model. Many researchers who have studied seasonal anomalies in stock returns have tried to explain these phenomena by looking at the stock market in isolation. In this paper, we relate the end-of-month effect to macroeconomic variables. Furthermore, we improve the efficiency of our statistical tests by including heteroscedasticity in the model. As a result, we present evidence that there is indeed an end-of-month effect distinct from the Mondays in the end-of-month effect documented by previous researchers. We show a link between this end-of-month effect and the economic business cycle, and present evidence that the end-of-month anomaly exists only during business cycle expansions; this anomaly disappears during business cycle contractions.
Public Choice Economics: Where is there Consensus?
Authors: Whaples Robert , Heckelman Jac C.
Published: March 2016

Are public choice scholars' conclusions accepted by rank–and–file economists and political scientists? If not, why not? To answer these questions we use survey results to compare the conclusions of self–identified public choice scholars with those in the adjacent disciplines of economics and political science. We examine thirty–five propositions in seven areas: (1) assumptions about political actors; (2) normative beliefs about government and voting; (3) elections and economic performance; (4) parties, platforms, voting and preferences; (5) government's purposes and growth; (6) individual behavior–voting–with–feet and free riding; and (7) government and the market. We conclude that, although there is consensus on many of the issues, there is substantial remaining disagreement on many questions that appears to be tied to the competing presuppositions of scholars in economics and political science.
Executive Compensation Incentives in a Volatile Market
Authors: Cahill Miles B. , George Alaina C.
Published: March 2016

Recent literature has been conflicted as to whether executive compensation schemes have significant incentive pay elements. The most well-known study supporting the existence of pay-for-performance used data corresponding to the recent bull market of the 1990s. This paper estimates a similar model of incentive pay using data from more recent volatile markets of 1999–2001, and finds that the incentive component of executive pay has at least diminished, and has perhaps reversed. Thus, incentive pay may be something of a “fair weather” phenomenon.
Exploring Values in the Classroom: Three Exercises for Introductory Economics
Authors: Hadsell Lester
Published: March 2016

We present three classroom exercises designed to explore issues of fairness and equity in economics. In each exercise, students put economics in context as they consider the art of economics in addition to the science. The active learning nature of the exercises involves students as they consider (1) the free-rider problem, (2) the contrast between democratic and free-market ideals, and (3) externalities. Each exercise, including discussion, will fit into a 50-minute class period. The author has used the exercises in introductory microeconomics courses, in classes of 30 to 50 students.
What is (Not) Money? Medium of Exchange ≠ Means of Payment
Authors: Yang Bill Z.
Published: March 2016

This note attempts to provide a formulaic definition of money and discuss the distinction between “medium of exchange” and “means of payment.” The former refers to the set of assets in an economy that people regularly exchange for goods and services (a concept of “what”), while the latter is a method that facilitates delivery of money from one to another (a notion of “how”). It suggests that money should be exclusively defined as “medium of exchange,” rather than “means of payment.” With such a distinction established, one can uniformly explain why currency, demand deposits and smart cards are money (because they are a medium of exchange), and why checks, money orders, or debit and credit cards are not money (because they are only a means of payment but not a medium of exchange).
Income Inequality VS. Standard of Living Inequality
Authors: Spiegel Uriel
Published: March 2016

This paper distinguishes between income inequality and standard of living inequality. It examines the case where the utility of individuals is positively affected by a private good and a public good. We show that a wealthy individual will bear the financial burden of financing the public good, which increases the utility of the poor and reduces utility inequality. Moreover, at certain levels of inequality in income, it turns out that an individual whose share in income has decreased will not experience a reduction in utility as a result of the reduction in income. This may explain why within certain ranges of income inequality there is no attempt on the part of either the wealthy or the poor to struggle for income redistribution.
Risk Avoidance and Risk Taking under Uncertainty: A Graphical Analysis
Authors: Chang Yang-Ming
Published: March 2016

Using a graphical approach, we characterize explicitly variations in optimizing behavior from risk avoidance (e.g., insurance buying) to risk taking (e.g., “gambling”) in terms of risk preferences, market insurance terms, and exogenous changes in endowed incomes. An individual who is a “risk avoider” at one income position may become a “risk taker” at another income position. Moreover, both low- and high-income risk-averse individuals may engage in risk-taking activities at the same time. These results imply that predictions about attitude towards risk cannot be made independently of income positions or economic opportunities.
Outsourcing Innovation in a Durable Good Monopoly
Authors: Lee Sanghoon
Published: March 2016

Make-or-buy decision of a durable-good monopolist is analyzed when the quality of an existing product may be improved through investment. Outsourcing generates a hold-up problem which leads to underinvestment in product development. But the very inefficiency in investment also helps the monopolist's initial sales as it makes the existing product less likely to become obsolete. Outsourcing is shown to outperform vertical integration when the value of the improvement is relatively small. The strategic motive for outsourcing identified in the analysis sheds new light on the “core competence” argument commonly used in management literature.
On the Optimality of Escalated Tariff Structure: A Cournot Duopoly Analysis
Authors: Wang Yu-Ter
Published: March 2016

This paper examines whether an escalated tariff structure will maximize national welfare by using a simple Cournot duopoly model, where an intermediate good and a final good are vertically related. In this paper, some general results are derived. It is shown that the escalated tariff structure prevailing in most countries does not necessarily benefit an importing country more than a de-escalated tariff structure. The condition for an importing country to adopt an escalated tariff structure is a huge loss incurred by a domestic final-good producer resulting from a tariff imposed on imports of the intermediate good. A de-escalated tariff structure should be adopted by an importing country as a tariff on imports of the final good harms the domestic consumers much more than a tariff on imports of the intermediate good.
Differences in the College Enrollment Decision across Race
Authors: Lucia Kathlyn E. , Baumann Robert W.
Published: March 2016

We find the determinants of the college enrollment decision differ greatly between whites and blacks. Within race, differences exist between black males and females, and to a lesser extent between white males and females. The largest differences are in the effects of parents' education, school quality, and family income. Of the four race-gender groups, black males are the most sensitive likely to their mother's education attainment and to changes in school quality. Unlike whites, we find almost no effect of income on the black college enrollment decision, particularly for black females. We conclude that policies that increase affordability do not expand the pool of college-bound blacks.
Does Religious Pluralism Play a Role in Fostering Civic Engagement?
Authors: DeBartolo Michael
Published: March 2016

This paper investigates the role played by religious pluralism in generating the increased civic engagement observed among US faith-based organizations. The hypothesis of the paper is that increased competition among faith-based groups increases the amount of social services provided to the community which in turn increases the civic engagement of its members. Using expansive data at the county level that examines competition both within and among denominations, the paper shows that more competition generally does lead to more social service provision on the part of faith-based groups as measured by Presbyterian Church charitable spending.
The Reasonable Effectiveness of Mathematics in Economics
Authors: Focardi Sergio M. , Fabozzi Frank J.
Published: March 2016

Economic science is generally considered less viable than the physical sciences. Sophisticated mathematical models of the economy have been developed but their accuracy is questionable to the point that the present economic crisis is often blamed on an unwarranted faith in faulty mathematical models. In this paper, we claim that the mathematical handling of economics has actually been reasonably successful and that models are not the cause behind the present crisis. The science of economics does not study immutable laws of nature but the complex human artefacts that are our economies and our financial markets, artefacts that are designed to be largely uncertain. We could make our economies and our markets less subject to uncertainty, and mathematical models more faithful to empirical data by introducing more rules and collecting more data. Collectively, we have decided not to do so and therefore models can only be moderately accurate. Still, our mathematical models offer a valuable design tool to engineer our economic systems. But the mathematics of economics and finance cannot be that of physics. The mathematics of economics and finance is the mathematics of learning and complexity, similar to the mathematics used in studying biological or ecological systems.
Memorializing John K. Galbraith: A Review of His Major Works, 1908–2006
Authors: Ramrattan Lall , Szenberg Michael
Published: March 2016

This paper attempts to address the essential legacy of Kenneth Galbraith (1908–2006) spread over a broad range of subjects. Galbraith is a forerunner of the most popular, imaginative and idea creating economic writers of the last century. His economic eyes were the first to discern the historic and institutional forces behind the countervailing powers of big business and big unions, the culmination of techno structure in the land-capital dominance of the evolution of factors of production, the pairing of buyers and sellers for market clearance in disequilibrium, and as Milton Friedman stated, the only person who has made a serious attempt to justify price and wage controls.
Economics: Good Choice of Major for Future Ceos
Authors: Flynn Patricia M. , Quinn Michael A.
Published: March 2016

It is often suggested that economics is a good major for individuals interested in being business leaders. Despite this widespread assertion, little research has been conducted on this topic. Using the Standard and Poor (S&P) 500 companies, this paper examines the validity of such a claim. We find evidence that economics is a good choice of major for those aspiring to become a CEO. Economics ranked third with 9% of the CEOs of the S&P 500 companies in 2004 being undergraduate economics majors, behind business administration and engineering majors, each of which accounted for 20% of the CEOs. When adjusting for size of the pool of graduates, those with undergraduate degrees in economics are shown to have had a greater likelihood of being an S&P 500 CEO than any other major. That is, the share of graduates who were economics majors who were CEOs in 2004 was greater than that for any other major, including business administration and engineering. The findings also show that a higher percentage of CEOs who were economics majors subsequently completed a graduate degree – often an MBA – than did their counterparts with business administration and engineering degrees. The paper demonstrates that while women now comprise over half of all bachelor's and master's degrees awarded, they remain a minority in terms of undergraduate degrees awarded in economics and in MBA degrees conferred. Economics programs may try to appeal to more women students as a stepping stone to becoming a CEO, especially as women continue to account for less than 2 percent of the S&P 500 CEOs.
Economic Transformations in Chile: The Formation of the Chicago Boys
Authors: Brender Valerie
Published: March 2016

Who were the Chicago Boys and what was their path into Pinochet's dictatorship? Speculation abounds about the motives of these Chilean born, U.S. educated economists who came to play a pivotal role in Pinochet's regime. This paper will examine the education of the Chicago Boys at the University of Chicago and their subsequent rise into Pinochet's government. The Chicago Boys' historical path suggests that their influence in Chilean politics cannot be reduced to U.S. political motivations or ideology, but rather must take into consideration the transformation of foreign aid policies and the economic environment of the time.
The Effects of Excise Taxes on Non-Homogeneous Populations
Authors: Spiegel Uriel , Templeman Joseph , Tavor Tchai
Published: March 2016

In this paper we reconsider the issue of excise tax effects on elements such as who bears the excise tax burden, tax effectiveness, and tax efficiency. Usually these issues are discussed under an implicit assumption of homogeneous populations with identical demand curves for all customers. However, most populations are not homogeneous in income and tastes, and our goal is to compare the results for homogenous populations with the parallel results of a heterogeneous population with rectangularly distributed demand curves. The results of the analysis add another dimension to the often-discussed conflict between efficiency, fairness, and equality of the tax system.
Empirical Analysis of the Linder Hypothesis: The Case of Germany's Trade Within Europe
Authors: Rauh Alison
Published: March 2016

This paper uses panel data with country- and time- fixed-effects to examine the empirical validity of the Linder hypothesis for Germany's international trade within Europe. My results imply that Germany trades more intensively with countries with similar per capita income levels, which reaffirms the Linder hypothesis. This paper has two further contributions. First, the estimation of Germany's exports in addition to its imports empirically confirms the economy's orientation towards exports. Second, the analysis of an EU-membership variable suggests that Germany primarily caters its exports towards European countries with similar demand structures.
Reflections On Economic Development
Authors: Domar Evsey D.
Published: March 2016

Editor’s Introduction

Originally published in Volume 10, Number 1, Spring 1966, pages 5-13. Three years after the merger that created Omicron Delta Epsilon, Evsey Domar (1914-1997) became one of the first established “big names” to publish a paper in The American Economist. The occasion was precipitated by the inaugural delivery of the John R. Commons Lecture at the annual American Economic Association conference the previous December. ODE presents the Commons Award biennially to an outstanding economist in recognition of academic achievements and for service to the economics profession. The award memorializes Professor Commons who founded one of ODE’s predecessor honor societies in 1915 at the University of Wisconsin. Professor Domar, immortalized as one of the originators of the Harrod-Domar model of economic growth, was the first in a long and continuing line of prominent economists to receive the Commons Award, including Milton Friedman, Kenneth Arrow, Douglas North, Gary Becker, and Peter Diamond. In this paper, Professor Domar outlines his thoughts and ideas on why and how underdeveloped countries should institute market-oriented reforms to promote economic growth and prosperity. Fifty years later his words still ring true, “Economic development is a difficult and complex process, hard to deal with, because contrary to some of our favorite models, it is essentially not a capital but a human problem.”
Edifying Editing
Authors: McAfee R. Preston
Published: March 2016

Editor’s Introduction

Originally published in Volume 55, Number 1, Spring 2010, pages 1-8. Preston McAfee (born 1956) is an economist for the digital age. He currently serves as Chief Economist and Corporate Vice President for Microsoft after working in similar positions for Google and Yahoo!. His corporate career follows a distinguished tenure in academics at institutions such as, the University of Texas at Austin, and the California Institute of Technology. Professor McAfee’s research centers on applied problems in microeconomics and industrial organization. He is known for his award winning work in auctions and mechanism design. Between 2007 and 2012, Professor McAfee served as Editor of Economic Inquiry, the flagship academic journal of the Western Economic Association International. This paper recounts his experiences with editorship and provides valuable insight into the traditional peer review process of economic research. Professor McAfee describes the logic behind his innovative “no revisions” submission policy that was introduced by Economic Inquiry during his time at the helm. Authors, referees, and editors will all find something useful to take away from this article that was part of series published by The American Economist to highlight the role of editors and journals within the economics profession.
Paul Samuelson on His 90th Birthday
Authors: Galbraith John Kenneth
Published: March 2016

Editor’s Introduction

Originally published in Volume 51, Number 2, Fall 2007, page 39. John Kenneth Galbraith (1908-2006) was one of the leading voices of American liberalism during the latter half of the twentieth century. Even though Professor Galbraith served on the economics faculty of Harvard University for fifty years, he is remembered today more for his role as a public intellectual and policy advisor to presidents than for his academic contributions to economic theory. Intensely interested in public policy, Professor Galbraith served several presidential administrations, including time as Ambassador to India under John F. Kennedy. During his lengthy career, he authored numerous bestselling books, including the influential The Affluent Society in 1958 and, The New Industrial State in 1967. In this short paper published posthumously, Professor Galbraith celebrates the 90th birthday of another prominent economist of his generation, Paul Samuelson. Professor Galbraith outlines his views on Samuelson’s impact on the profession and posterity.
The Comparative Study of Public Economies
Authors: Ostrom Elinor
Published: March 2016

Editor’s Introduction

Originally published in Volume 42, Number 1, Spring 1998, pages 3-17. Eleven years before she was recognized with the Nobel Memorial Prize in Economic Sciences, Elinor Ostrom (1933-2012) published this paper in The American Economist. Originally trained in political science, Professor Ostrom’s life work centered on understanding how the collective action of groups organized and managed common pool resources. The various ways that human societies solve the “problem of the commons” was a central theme of much of Professor Ostrom’s research in public economics. In this paper, Professor Ostrom examines the study of institutions developed to provide for the collective consumption of public goods. She uses the example of providing policing functions within metropolitan areas. The questions raised about optimal size, scope, and institutional organization remain topical for the twenty-first century. To date, Professor Ostrom remains the only woman to be awarded the Nobel Prize in economics.
Smith vs. Marx on Business Morality and the Social Interest
Authors: Baumol William J.
Published: March 2016

Editor’s Introduction

Originally published in Volume 20, Number 2, Fall 1976, pages 1-6. William Baumol (born 1922) is not only one of the most influential living economists but is also one of the profession’s most prolific writers. During his career, Professor Baumol has written or edited more than eighty books and authored several hundred academic journal articles across an impressive range of topics including; entrepreneurship, portfolio theory, industrial organization, public policy, and the history of economic thought. He is perhaps most well known as one of the originators of the Baumol-Tobin model of the transactions demand for money. Along with long-time collaborator, Alan Blinder, Professor Baumol is also the author of a series of college textbooks that are extensively adopted throughout the United States and the world. He currently holds the Harold Price Professor of Entrepreneurship at New York University, where he has taught for the past thirty-seven years, and is a Professor Emeritus and Senior Research Economist at Princeton University. In this article, Professor Baumol shares his insights on two competing schools of thought as he compares and contrasts the views of Adam Smith and Karl Marx on the role of capitalists, the market mechanism, and the public good.
Spillover Asymmetries and a Comparative Technological Advantage
Authors: Carlisle E. R.
Published: March 2016

This paper offers a framework for examining technology spillovers extant between research teams. A policy-relevant finding is that firms' research organizations must strive to absorb foreign technology. The result of a technology spillover imbalance or asymmetry is that from a country or policy perspective, even for countries sustaining a superior number of world-class research teams, a comparative technological advantage may be lost if the domestic R/D teams fail to absorb and exploit technology as aggressively as foreign rivals.
The Effects of Monopolization on Newspaper Advertising Rates
Authors: Reimer Eric
Published: March 2016

It is almost universally assumed that monopolization in an industry leads to higher prices and lower output. This paper, however, demonstrates, both intuitively and empirically, that advertisers actually benefit from the geographic concentration of the newspaper industry. A regression, using thirty-five cities, showed advertising prices were positively related to competition, although the coefficients were statistically insignificant. This result is not surprising. Newspaper firms face substantial fixed costs and low marginal costs which creates the potential for a profit seeking monopolist to charge lower prices. In fact, any industry which incurs high fixed costs is apt to experience economies of scale, resulting in lower average costs. If the reduction in average costs is substantial, lower consumer prices will result.
A Daily Inflation Index
Authors: Hiris Lorene S.
Published: March 2016

A index that closely approximates the rate of inflation in consumer prices has been constructed from eight components that are available daily. The index has been compiled monthly from January 1968 through June 1990, with the results shown in Figure 1. The Daily Inflation Index includes the prices of foods, textiles, metals and oil as quoted in the commodity markets and also an index of dollar exchange rates, the Treasury bill rate, a price index for utility stocks, and the price of gold. The index accounts for 84 percent of the variation in the CPI inflation rate from 1968 to 1990 and is expected to be used as an independent measure of inflationary trends. In essence, the Daily Inflation Index is designed to measure the market assessment of inflation and should provide hedgers, traders, and consumers with timely information about inflation.
Liquidity: Its Origins and Implications in an Uncertain Multiperiod World with Limited Borrowing
Authors: Miller Edward
Published: March 2016

If borrowing rates exceed lending rates, liquid assets are held to provide an option on future consumption. The rate of time preference exceeds the interest rate. Thus the market value of marketable securities exceeds the present value at the rate of time preference of their cash flows. The interest rate is determined not merely by time preference and capital productivity, but is a number calculated from the values of liquid assets. Inside money has an impact.
Beyond High School: Does the High School Economics Curriculum Make a Difference?
Authors: Lopus Jane S. , Maxwell Nan L.
Published: March 2016

Results from previous studies assessing the effect of high school economics courses on student performance in college economics courses have been inconclusive. We argue that this research fails to distinguish between high school economics courses that focus on traditional college macroeconomic and microeconomic topics and those that focus on less theoretical topics. We correct for this error by examining the relationship between the high school curriculum and knowledge of college-level economics. Although we find no evidence that students who studied high school economics are better equipped to study college economics than students who did not, we find that the curriculum does make a difference for students who have taken high school economics.
An Analysis of Secondary Child Care Arrangements
Authors: Steen Todd P.
Published: March 2016

This paper analyzes the secondary child care arrangements used by working mothers. All of the previous work examining child care has concentrated on just the principal or primary mode of child care that the family uses. For many families, however, there are additional arrangements which are made for child care, and little is known about the extent of these arrangements and their economic and demographic determinants. An important question is whether this secondary care is used primarily to enhance the quality of care that the child receives, or is required because of the lack of adequate primary sources of child care. In order to fully examine the use of secondary child care, this paper analyzes a variety of different data sources: the National Longitudinal Survey Youth Cohort (1986 and 1988), the June 1982 Current Population Survey, and the 1984–85 Survey of Income and Program Participation.

The paper concludes that economic factors such as the mother's wage and her hours worked, along with marital status and the age of the child, are the major factors in determining whether a mother will use a supplementary arrangement for child care, factors which are similar to those important in the choice of the primary mode of care to be used. The paper also finds that the use of secondary care does not seem to be a mechanism to cope with the lack of supply of adequate and flexible child care, but may be a choice that a family makes to better tailor the care used in order to benefit both the parents and the child.
Multiple Worker Households and Multiple Job Holding: Rigid Vs. Flexible Hours
Authors: Highfill Jannett K. , Felder Joseph , Sattler Edward L.
Published: March 2016

The paper examines a household production model in which there are two potential wage earners. One of the workers has two job possibilities. His or her higher paying job requires the worker to work a pre-determined, non-negotiable, number of hours. This job is a “Rigid Hours” job. The other jobs that may be taken by the household members allow the workers to optimally determine the number of hours worked. These jobs are “Flexible Hours” jobs. The paper examines the household's optimal response to the constraints imposed upon it by the rigid hours job, as well as the usual time and budget constraints. The interdependence of the household member's labor supply decisions is well established in the household production literature. Shisko and Rostker (“The Economics of Multiple Job Holding,” American Economic Review, 1976) provide a model of multiple job holding but do not consider a two person household or a complete set of time constraints. This paper will develop a framework for studying all of these disparate elements. The time allocations of “husband” and “wife” may seem paradoxical at first blush; a person may choose a lower paying job over a higher paying one; the “husband” may drop out of the labor force to be replaced by his lower paid “wife;” and the higher paid “husband” may do housework even though the marginal value of housework is less than the “wife's” wage. The key to these paradoxes in the time allocations of households is in the constraints.
On the U.S. Budget Deficit Dilemma: Has Television Contributed?
Authors: Darrat Ali F. , Bowers Bill P.
Published: March 2016

We advance several theoretical reasons for arguing that expansion in television viewership may have contributed to the recent escalation in the U.S. budget deficit. We then develop a multivariate model to test the validity of the hypothesis using alternative measures of television viewership. The empirical results could not reject our contention that the fast evolution of the U.S. television viewership since the early 1970s has significantly contributed to the escalating size of the federal budget deficit over and above the effects of several other possible macro determinants. This evidence provides some support to the claim that there exists a “liberal” bias within the media (particularly television) that undermines fiscal conservatism. Therefore, it appears advisable for policy-makers to take into account the role of television if they aspire to understand and ultimately control the mounting federal budget deficit.
Wage Growth and Inflation in the United States: Further Evidence from Johansen's Cointegration Approach
Authors: Ukpolo Victor
Published: March 2016

This paper examines the relationship between wage growth and inflation in the United States. It has been hypothesized that an autonomous wage change represent a significant component of inflation determination. We adopted the recent technique of unit-root testing and Johansen's maximum likelihood procedure to show that, although, wage growth has some long-run impact on inflation pressures, it represents an insignificant determinant of inflation.
Money and Economic Activity in Developing Countries: Evidence Based on Cointegration and Causality Tests
Authors: Owoye Oluwole
Published: March 2016

This paper examines whether or not the fluctuations in monetary and credit aggregates contain useful information about subsequent future movements in nominal or real income in 10 developing countries. Using annual data covering the 1960–1990 period, empirical results showed that narrow (Ml) and broad (M2) monetary aggregates as well as domestic credit (DCR) contain statistically significant information about future movements in nominal income in some of the developing countries examined, while either M1 or M2 or DCR does in some other countries. However, when nominal income is decomposed into its real income and price components, the results suggest that these aggregates contained no statistically significant information about future movements in real income in nearly all the developing countries in the sample.
The Aggregate Demand/Supply Model: A Premature Requiem?
Authors: Truett Lila J. , Truett Dale B.
Published: March 2016

Aggregate demand/aggregate supply models have recently been criticized as being inappropriate and/or incorrect for explaining macroeconomic theory to students. In this article we suggest that a properly defined aggregate demand/aggregate supply approach may be quite useful in comparing and contrasting the various theoretical explanations of the macroeconomy.
Takeovers and Equity Derivatives
Authors: Arzac Martin G.
Published: March 2016

This paper examines the use of equity derivatives in takeovers. The equilibrium model developed here shows that allowing the bidder to purchase equity derivatives on the target prior to the announcement of a takeover bid unequivocally increases the bid's probability, of success. The resulting propositions have major implications for takeover regulation, economic efficiency, and general social welfare, as the benefits of regulating the use of equity derivatives in acquisitions may not exceed the costs.
Import Quotas, Foreign Capital and Income Distribution: A Comment
Authors: Gilbert John , Tower Edward
Published: March 2016

This paper shows that an import quota cannot raise the welfare of a small country even if it induces a capital inflow.
A Puzzle Resolved: Japan's High Currency Value and Trade Surplus
Authors: Shachmurove Yochanan
Published: March 2016

Trade between the United States and Japan has been characterized by Japanese surpluses and American deficits. This prolonged pattern of trade has caused much debate in political, social, and academic spheres. In the political and social spheres the American public is angered by what is perceived as unfair Japanese trade polices. The academic debate concerns the disparity between economic theory and the real situation of trade. Theory predicts that a strong currency and a current account surplus can not coexist indefinitely. As the yen appreciates, American imports to Japan should increase and Japanese exports to the United States should decrease thereby eliminating Japan's current account surplus. However, since the 1985 Plaza Announcement, the yen appreciation has been accompanied by a Japanese trade surplus. This paper looks to reasons rooted in both American and Japanese policies and institutions that account for the counter—theoretical coexistence of Japan's strong yen and trade surplus.
Coping with a Paradoxical Theorem in Macroeconomics, Report on a Survey
Authors: Rakowski James J.
Published: March 2016

This paper reports on the varied and inconsistent responses of a group of economists to a survey seeking resolution of a puzzle in open economy macroeconomics. The paper suggests that the puzzle is unresolved and is the source of many anomalies which quite undermine macroeconomics.
The Union Effect on the Earnings Distribution in Higher Education in Ohio
Authors: Benedict Mary Ellen
Published: March 2016

Using data on individual faculty from seven Ohio public universities, this study analyzes how collective bargaining affects the faculty earnings distribution. An empirical analysis of the variance of log earnings and earnings regressions by union status reveal that collective bargaining in postsecondary schools slightly increases the dispersion of earnings in this sample. This result is mainly due to an increased dispersion of female faculty salaries in unionized schools, which appears to be caused by unionized females in higher ranks receiving greater returns to rank than their nonunionized counterparts.
Economics and the Law: Where is There Consensus?
Authors: Moorhouse John , Morriss Andrew , Whaples Robert
Published: March 2016

We investigate where consensus exists in the field of Economics and the Law by analyzing responses to a questionnaire mailed to members of the American Law and Economics Association. These specialists are impressed by the efficiency of the common law, while few believe that the jury system is efficient. Fifty-nine percent conclude that there are currently too many attorneys in the U.S. Forty-one percent believe that there are about the right number—none think that there are too few. Among the other issues in the survey are precedent, contract law, litigation abuse, negligence, nuisance, punitive damages, no-fault auto insurance, product liability, contingency fees, losers paying for civil litigation, compensation for regulatory takings, privacy rights, and the economics of crime and punishment.
The Maximum Revenue Tarrif and Growth, a Note
Authors: Yeh Y.H.
Published: March 2016

This paper intends to show that growth will not necessarily increase the tariff revenue of a country, assuming that the country always imposes a maximum revenue tariff. If there is an increase in import demand after growth, the maximum tariff revenue will increase. However, if there is a decrease in import demand after growth, the maximum tariff revenue will decrease. The offer curve approach is used in this study.