bluuebunny/crossref_metadata_2025 huggingface dataset:
Three‐dimensional endoanal ultrasonography of external anal sphincter defects in patients with faecal incontinence: correlation with symptoms and manometry
Authors: Wasserberg N. , Mazaheri A. , Petrone P. , Tulchinsky H. , Kaufman H. S.
Published: January 2010

Aim  Anal sphincter anatomy on two‐dimensional endoanal ‐ultrasonography (EUS) does not always correlate with the clinical data. The purpose of this study was to determine whether three‐dimensional (3D) measurements yield a better correlation.

Method  The study group included consecutive patients who underwent 3D EUS for faecal incontinence over a 2‐year period. The medical charts were reviewed for Cleveland Clinic Foundation Fecal Incontinence (CCF‐FI) score and manometric pressures. Endoanal ultrasonographic images were reviewed for the presence of an external anal sphincter (EAS) defect and its extent, as determined by the radial angle, length in the sagittal plane and percentage volume deficit. Correlational analyses were performed between the clinical and imaging data.

Results  Sixty‐one patients of median age 53 years (range 15–82) were evaluated. Thirty‐two patients had either a complete (17) or partial (15) EAS defect, and 29 patients had an intact sphincter. The CCF‐FI scores were similar in patients with and without an EAS defect (12.5 ± 5.6 and 11.4 ± 5.5, respectively). The intact‐sphincter group had a significantly greater EAS length (3 ± 0.4 vs 2 ± 0.62 cm, P = 0.02) and higher mean maximal squeeze pressure (MMSP; 99.7 ± 52.6 vs 66.9 ± 52.9 mmHg, P = 0.009). There were no statistically significant correlations between MMSP, CCF‐FI score and EAS status on 3D EUS. Mean percentage volume of the defect was similar in patients with complete and partial tears (14.5 ± 5.5 and 17.5 ± 7.2%, P = 0.25) and showed no correlation with physiological tests or symptom scores.

Conclusion  Improvements in external anal sphincter imaging have not yielded a better association with the clinical findings. The lack of clinical differences between patients with different EAS tears may reflect their similar volumetric defects.
SOME PUBLIC POLICY ISSUES RAISED BY THE DEREGULATION OF FINANCIAL INSTITUTIONS
Authors: PIERCE JAMES L
Published: January 2010

Successful deregulation of financial institutions promotes flexibility and effeciency while avoiding the instabilities and abuses that characterized the financial system prior to the reform legislation of the 1930s. It is essential that deregulation nut undermine the efficacy of deposit insurance. The growth of money market funds has already resulted in a shift from insured to uninsured accounts. With deregulation there will be much larger shifts of funds to uninsured transactios accounts. In a deregulated world, it is essential that insurance be extended to cover transactions accounts, no matter who issues them, The paper also asserts that existing statutes are inadequate to deal with the conflicts of interest and anti‐competitive practices that are likely to occur with deregulation. Safeguards should be established before deregulation goes any further. Finally, it is argued that in a deregulated environment, most forms of money will pay interest, and required reserves will disappear. While these developments will not destroy the efficacy of monetary policy, they will affect it. Little work has been done an the issue of monetary policy in a deregulated world. The paper discusses existing studies and suggests some topics for future research.
PUBLIC POLICY TOWARDS PRIVATE PENSIONS
Authors: Ippolito Richard A.
Published: January 2010

This paper reviews and evaluates public policy towards private pensions which has developed in the U.S. over the past 60 years. It is shown that research results reported in the literature are not sufficiently conclusive to permit resolution of all, or even the most important, efficiency questions that surround pension policy. Given available information, a series of policy recommendations are made to either retain or alter current federal policy towards pensions. Unanswered research questions that prevent a more definitive set of conclusions are identified and discussed
MINIMUM‐HOURS CONSTRAlNTS AND RETlREMENT BEHAVlOR
Authors: GUSTMAN ALAN L. , STEINMEIER THOMAS L.
Published: January 2010

This paper presents statistics which confirm the existence of minimum‐hours constraints for jobs held by a majority of prime‐age male workers who are not self‐employed. It then considers the implications of these Constraints for studies of retirement behavior and related policy analyses. Potential biases associated with conventional analyses, which either ignore the existence of minimum‐hours constraints or assume they are pervasive, are discussed in the context of structural life‐cycle retirement models. A more realistic but still imperfect specification, which can be estimated given available data, assumes minimum‐hours constraints on the main job and variable hours elsewhere
ALTERNATIVE BID VARIABLES AS INSTRUMENTS OF OCS LEASING POLICY
Authors: MEAD WALTER J. , MOSEIDJORD ASBJORN , MURAOKA DENNIS D.
Published: January 2010

Prior to 1979, a cash bonus was used almost exclusively as the bid variable at outer continental shelf (OCS) lease auctions. Criticisms of the cash bonus as a bid variable led to the OCS Lands Act Amendments of 1978 which stipulated that alternative bid variables be employed on a portion of the leases issued over a five‐year trial period. The alternative bid variables include net profit share, royalty rate, and work commitment

Each of these bid variables is analyzed to determine the extent to which it (a) promotes economic efficiency, (b) returns fair market value to the government, (c) identifies and selects the most efficient firm to operate the lease, (d) promotes optimal risk sharing between the lessee and the government, and (e) minimizes administrative costs

This analysis has led the authors to conclude that while no bid variable is perfect, the traditional cash bonus is preferred
CHANGING ASSET/LIABILITY STRUCTURE OF SAVINGS INSTITUTIONS IN A DEREGULATED ENVIRONMENT
Authors: HUMPHREY JOSEPH F.
Published: January 2010

This paper examines how savings institutions have reacted to new asset/liability management powers granted under recent enabling legislation and regulation. The paper describes the rapid change in thrift liability composition that began with the money‐market deposit account (MMDA) in December 1982 and the increased interest‐rate risk that accompanied the subsequent shortening of liability maturities. Ironically, after deregulation, thrifts were structured even more into a mismatched position. After the massive thrift balance‐sheet mismatch is measured, strategies useful in reducing thrift interest‐rate risk exposure are evaluated in terms of size and immediacy of impact. Rather than reliance on minor balance‐sheet adjustments which mistakenly are taken for effective asset/liability management, a comprehensive strategic plan is recommended

The critical point is that the savings institution manager cannot effectively speculate on interest‐rate movements until the firm is fully restructured to eliminate its borrow‐short/lend‐long posture. In contrast to that of other observers, this analysis suggests that immediate and meaningful reductions in interest‐rate risk exposure can be achieved by lengthening liabilities through amount and frequency of liability pricing. Neither technical hedging programs nor alternative mortgage‐loan instruments (AMLs), as now structured, are likely to provide the magnitude or speed of adjustment necessary to correct the existing balance‐sheet mismatch, nor are they appropriate single‐tactic strategic responses
ECONOMIC AND BUDGET ISSUES FOR DEFICIT POLICY
Authors: HOFFMAN RONALD , LEVY MICKEY D.
Published: January 2010

Much of the controversy about reducing the federal deficit has arisen because policymakers lack a deficit policy that is a consistent part of broader macroeconomic policy. This is not surprising since economists have not reached a consensus about such a policy.

This paper sketches the analytical controversy about monetary and fiscal policies and traces it to issues about how the economy works. Although aspects of the deficit question are controversial, there is general concern about the buildup of federal debt implicit in the projection of persistently large deficits. A growing body of research suggests that the increase in the federal debt‐to‐income ratio may impinge dangerously on the credit available to finance private capital formation. Also, the rising federal debt may indirectly generate inflation through monetization.

Several criteria and approaches to a deficit policy are identified. The paper suggests that changing the “policy mix” by tightening fiscal policy and loosening monetary policy to reduce interest rates is unlikely to succeed to the extent that expansive monetary policy increases real interest rates by raising inflationary expectations and uncertainty.

Since the potential ill effects of the federal debt buildup, are essentially long‐run and bear on capital accumulation, any tax increases should avoid disincentives to saving, investment, and to growth generally. Depending on revenue requirements, fundamental changes in the tax system may be necessary. Further reductions in spending appear to be inevitable if the projected rise in the debt‐to‐GNP ratio is to be halted. Defense, retirement, and medical care programs are most likely candidates for reduction.
BORK'S PARADOX: STATIC VS. DYNAMIC EFFICIENCY IN ANTITRUST ANALYSIS
Authors: HIGH JACK
Published: January 2010

Judge Robert Bork holds two opposing attitudes towards perfect competition. It is a highly useful economic model for illustrating allocative efficiency, but it is a defective policy model because it deliberately omits productive efficiency. He reconciles these attitudes by combining perfectly competitive allocative efficiency with dynamically competitive productive efficiency in his analysis.

However, these two kinds of competition do not readily mix. One is a static equilibrium concept, the other a dynamic disequilibrium concept. One assumes perfect knowledge and the absence of change; the other assumes imperfect knowledge, learning, and continual flux. Each kind of competition is built on assumptions which, if true, would preclude the existence of the other.

Bork's policy conclusions require the simultaneous existence of both kinds of competition. If he drops dynamic competition from the analysis, a much more stringent antitrust policy is called for. If he drops static competition, economic theory does not justify even his strictures against mergers and cartels.
ECONOMICS AND ANTITRUST: RESPONSE
Authors: BORK ROBERT H.
Published: January 2010

In responding to the preceding papers by Professors Dewey, Fink, and High, I will deal primarily with Professor Dewey because his remarks constitute the most wide‐ranging critique. His remarks run the spectrum from political philosophy to price theory.
RESALE PRICE MAINTENANCE AND ANTITRUST POLICY
Authors: COMANOR WILLIAM S. , KIRKWOOD JOHN B.
Published: January 2010

Some scholars would legalize all purely vertical resale price maintenance (RPM). They acknowledge that RPM can harm consumers when it facilitates horizontal collusion among manufacturers or dealers. But when RPM is purely vertical (i.e., when it is imposed by a manufacturer acting independently), they argue that it must be procompetitive. Recent theoretical research has shown, however, that purely vertical RPM can reduce economic efficiency. This result occurs when the higher prices and dealer services induced by RPM benefit marginal consumers but substantially reduce the welfare of intramarginal consumers, who would have preferred the product without the services at a lower price. Since these circumstances are empirically plausible, a rule of per se legality may not be appropriate. At the same time, evaluating RPM under the rule of reason might not be workable. Anticompetitive instances of the type described could be difficult to prove. These research findings, therefore, are most consistent with a rule of per se illegality for RPM, with exceptions for situations in which RPM is most likely to be pro‐competitive (e.g., new entry).
HOW FAIR IS FAIR TRADE?
Authors: MARVEL HOWARD P.
Published: January 2010

Fair trade, also known as resale price maintenance (RPM), is a per se violation of the antitrust laws. Economic theory suggests that RPM may enhance the efficiency of distribution, but opposition to the practice remains strong. This opposition may stem from concern that RPM raises retail prices and penalizes well‐informed customers. This paper summarizes research on the motivation for RPM as well as its impact on prices. The analysis suggests that comparing prices in RPM jurisdictions with those in free‐trade areas provides little guidance on likely effects if RPM were permitted everywhere. An analysis of RPM's impact on prices is developed, and then this analysis is employed to assess RPM's welfare effects. Results of the welfare analysis are shown to depend crucially on which form of cost function is assumed for services provided by dealers.
COMMENTS ON MARVEL: HOW FAIR IS FAIR TRADE?
Authors: SHARP BENJAMIN S.
Published: January 2010

Each of the papers in this symposium concludes with policy recommendations regarding the legality of resale price maintenance (RPM). The legal standard used to judge RPM affects the entire universe of manufacturer control over resale prices. Therefore, policy recommendations are valid only to the extent that the proffered economic theory applies to a substantial portion of that universe. My comments focus primarily on how much of the RPM universe is addressed by Marvel's (1985) explanations in “How Fair is Fair Trade?” If an economic theory, no matter how interesting academically, describes only a small minority of RPM instances, it should not form the basis for public policy.
WESTERN HEMISPHERE PERSPECTIVES: OIL AND NATURAL GAS
Authors: ADELMAN M. A.
Published: January 2010

Among nations that are net oil exporters, those that are net importers, and those in balance, there are conflicting interests regarding the price level—which currently is many times the competitive level. However, avoiding too brusque a price change is in the interest of all. A glut was no barrier to price increases after 1973, nor in 1978. And a glut is not an absolute barrier even today.

Nations which comprise the oil cartel have short horizons and high discount factors. This increases the likelihood that they will attempt price hikes and makes any equilibrium precarious. Even non‐cartel nations produce less oil and gas than would be profitable because governments, responding to public opinion, try to obtain more rent than there is to take. These governments apparently use unrealistically low discount rates.

This paper attempts to point out parallel, common, and conflicting interests among the nations of the Western Hemisphere regarding price and production policy on crude oil and natural gas. In crude oil and oil products, Argentina is in balance, and Canada is practically so. Venezuela and Ecuador, both OPEC members, are net exporters. Mexico, a de facto member of OPEC, has observed a self‐imposed quota more faithfully than some OPEC members. The rest of the nations in the hemisphere are net importers.
THE FARM DEBT CRISIS: TEMPORARY OR CHRONIC?
Authors: SHEPARD LAWRENCE
Published: January 2010

This paper's objective is to analyze the etiology of the crisis confronting the farm sector and its creditors. It draws on data for the period 1950 to 1984 to argue that: (1) rising productivity of farm assets led to large increases in asset values during the 1950s, 1960s, and 1970s; (2) rising asset values significantly altered the incentive structure of agriculture; and (3) the resulting capital‐gains based agriculture of the postwar period motivated farmers to alter their capital structure in ways that made the current financial debacle inevitable once the income growth from assets tapered. From this basis, the paper concludes that farmers' borrowing behavior was substantially more responsible for the existing crisis than often‐cited adversities in the markets for agricultural commodities. Accordingly, a farm incomes policy cannot remedy the situation, and the current consolidation in agricultural debt—though painful—represents an unavoidable adjustment for American agriculture.
WESTERN FARM LABOR ISSUES
Authors: MARTIN PHILIP L.
Published: January 2010

This paper examines three farm labor issues: (1) how mechanization affects the demand for farm labor; (2) how immigration reform affects the supply of farm workers; and (3) how 10 years of collective bargaining affect the farm labor market. The evidence suggests that mechanization, immigration reform, and collective bargaining have had or will have fewer effects on the farm labor market than is often assumed. However, the farm labor market is vulnerable to future shocks if it remains isolated from nonfarm labor markets.
REGULATION AND THE COMMUNICATIONS REVOLUTION:INTRODUCTION
Authors: HAZLETT THOMAS W.
Published: January 2010

Two recent court rulings have forced both law and economics to seriously reevaluate emerging marketplaces. In Sony Corporation v. Universal Studios (1983), the U.S. Supreme Court ruled that videocassette recorders do not infringe upon the patent rights of a movie producer whose creation is viewed but not purchased (i.e., not bought from the producer or its assignee). This copyright issue has turned into a powerful political issue and a hot subject of conversation…in Hollywood as well as in Washington, D.C.
WELFARE EFFECTS OF GOVERNMENT INTERVENTION IN EDUCATION
Authors: PSACHAROPOULOS GEORGE
Published: January 2010

Distortive effects of government intervention, especially in international trade, have received considerable attention. But not much literature exists on similar effects of public policies toward education. This paper provides a review of government intervention in education and its likely effects on economic growth and equity. Although governments may act with good intentions, educational policies often have adverse effects on social welfare. Less government involvement in education might actually lead to greater and more equally distributed real income, especially in developing countries.

Section I of this paper identifies and documents the extent of government‐induced distortions directly or indirectly related to education. Section II assesses the likely effect of such distortions on social welfare. The final section discusses the role of government in education.
ARE LONGER SCHOOL SESSIONS A GOOD INVESTMENT?
Authors: LEVIN HENRY M.
Published: January 2010

Educational reform for elementary and secondary schools has become a major industry in the past three years. At the national and state levels, commissions and legislatures have begun to act (e.g., National Commission on Excellence in Education 1983; Task Force on Education for Economic Growth 1983; Griesemer and Butler 1983; U.S. Department of Education 1984). One central recommendation of these reports is to adopt longer school days and longer school years. The most publicized of the reports, “A Nation at Risk,” called for seven‐hour school days in place of the present five to six hours, and 200‐to‐220‐day school years in place of the typical 180 days at present (National Commission on Excellence in Education 1983, 29). In response, some states have increased already both daily and annual school sessions (U.S. Department of Education 1984). For example, California appropriated $257 billion in 1984 to increase the amount of instruction by about 5 percent.
ARMS NEGOTIATIONS, THE SOVIET ECONOMY, AND DEMOCRATICALLY INDUCED DELUSIONS
Authors: LEE DWIGHT R.
Published: January 2010

It is widely assumed that weak economic performance in the Soviet Union provides motivation for Soviet leaders to pursue arms negotiations in good faith. This paper argues that the reality is quite the opposite. For both political and economic considerations, the weak economy of the Soviet Union generates incentives for the Soviets to use arms control negotiations to achieve military advantages rather than to limit arms.
INTERNATIONAL TRADE REGIMES AND PRIVATE PROPERTY RIGHTS
Authors: TUMLIR JAN
Published: January 2010

Regimes such as the General Agreement on Tariffs and Trade (GATT), which require constant management by diplomacy, must deteriorate over time. They are bound by precedent, but their precedents, created by negotiation rather than by law, are unprincipled and cumulatively erode the foundations of the regime. To enshrine the objectives of the GATT more precisely in national law would make private property rights more secure against arbitrary government manipulation, and would serve the logic of democratic constitutionalism. Finally, reform of the GATT should be directed to (a) reducing permissible protection to tariffs, (b) securing nondiscrimination, and (c) providing negotiating and legal opportunities for the binding of tariff schedules.
PROSPECTS OF AN INTERNATIONAL MONETARY SYSTEM CONSTITUTION
Authors: SCHWARTZ ANNA J.
Published: January 2010

Cost‐benefit reasons account for the adoption of the pre‐World War I gold standard and the Bretton Woods system–the closest approximations to a constitution for the international monetary system that the world has experienced. Past rule‐based international monetary proposals that were rejected were judged not to serve national interests. Current proposals do not deal with policymakers' and governments' self‐interest in preserving their existing power to choose domestic objectives and to adopt policies to achieve those objectives.
REPLACING THE FOMC BY A PC
Authors: MAYER THOMAS
Published: January 2010

Recent behavior of velocity suggests that a stable monetary growth rate rule could have dangerous consequences. Hence this paper suggests a compromise–adjusting the money growth rate only in accordance with past changes in velocity. This preserves most of the benefits of a stable monetary growth rate rule.
CURRENCY SUBSTITUTION, U.S. MONEY DEMAND, AND INTERNATIONAL INTERDEPENDENCE
Authors: WILLETT THOMAS D. , BORDO MICHAEL , CHOUDHRI EHSAN , JOINES DOUGLAS , LANEY LEROY , McCLURE J. HAROLD , MELVIN MICHAEL , PIGOTT CHARLES , SCHWARTZ ANNA
Published: January 2010

A number of writers have argued in recent years that massive international currency substitution has been a major cause of exchange rate volatility and monetary instability in the United States and other major countries. Such analysis is frequently coupled with recommendations for a return to pegged exchange rates. This paper critically examines the evidence presented for this currency substitution view. It argues that the weight of latest research suggests that direct international currency substitution has not been of major quantitative importance for the U.S. However, empirical evidence supports traditional views that international capital mobility can generate substantial short‐run monetary interdependence even under flexible exchange rates. Thus, even though international currency substitution is of little importance to U.S. monetary conditions, a broader range of international considerations may be of considerable importance for the U.S. economy.
CANADA: RICH BY NATURE, POOR BY POLICY
Authors: BRIMELOW PETER
Published: January 2010

This paper examines the political economy of Canada, particularly the question of why Canada's economic performance has so persistently lagged behind that of the United States. It argues that this shortfall cannot be traced to values and choices arising out of a unique Canadian “political culture,” as is conventionally assumed, but instead is the consequence of poorly designed institutions. These institutions directly benefit powerful interest groups in Canada and are thus explicable in Public Choice terms. Nevertheless, they are under strain as the underlying social reality of Canada cannot be suppressed indefinitely. One symptom of this is the bilateral free trade agreement recently negotiated between Ottawa and Washington, D.C.
MARKETS, MORALS, PROPERTY, AND OTHER RIGHTS: A REJOINDER TO THE PASTORAL LETTER
Authors: SONTHEIMER KEVIN C.
Published: January 2010

The pastoral letter calls for a radical restructuring of the American economy. The restructuring is to be set on a foundation of economic rights, a social mortgage on privately held property, and a deference toward the small within the political system. The restructuring also is intended to avoid statist or totalitarian outcomes. The second half of the pastoral letter, containing the policy analysis and recommendations, is not consistent with the basic system for restructuring the economy contained in the first half. The practical visions of the second half of the pastoral letter do not provide for economic rights or a social mortgage. Analyzing the logic of the basic system for restructuring the economy shows that it is inconsistent with the bishops' intended goal of a non‐statist economy. The flawed logic of the basic system explains the inconsistency between the two major parts of the pastoral letter.
BANK FAILURES: THE DEPOSIT INSURANCE CONNECTION
Authors: O'DRISCOLL GERALD P.
Published: January 2010

It is generally accepted that banks must be regulated so as to avoid the moral hazard situation that deposit insurance generates. Accepting this argument implies that expanded bank powers must await deposit insurance reform. This article rejects the accepted view and argues instead that the existing regulatory system enhances rather than diminishes the riskiness of banks' portfolios. The article argues that the benefits from permitting banks to diversify probably would outweigh the costs. It concludes, however, that deposit insurance is a major culprit in the current wave of bank failures.
DEREGULATION OF ELECTRICITY: A VIEW FROM UTILITY MANAGEMENT
Authors: JUREWITZ JOHN L.
Published: January 2010

Significant structural changes already have occurred in the electric power industry due to the Public Utility Regulatory Policies Act. The industry has not, however, faced the same degree of deregulation as has some other industries such as natural gas and telecommunications. This is not mere happenstance. In many ways, the electric power industry presents the toughest case of all for deregulation. In fact, deregulation—in the usual sense of the term—probably is both unlikely and undesirable. Government is involved in the industry directly and is unlikely to withdraw. The production, transmission, and distribution of electric power is characterized by physical interdependencies potentially giving rise to externality problems as well as economies of horizontal and vertical integration. Any initiative to deregulate or substantially restructure the industry must address fairness in transition rules, the exact nature of the utility's obligation to serve customers, the potential loss of integration and coordination efficiencies, and a host of issues surrounding market participants' transmission access. Similarities as well as important differences exist among the electric power, natural gas, and telecommunications industries, suggesting that their respective benefits and problems associated with deregulation may be different. Policymakers must not draw hasty parallels among these industries.
THE TAX REFORM ACT OF 1986: CONCENTRATED COSTS, DIFFUSE BENEFITS—AN INVERSION OF PUBLIC CHOICE
Authors: RABUSHKA ALVIN
Published: January 2010

The public choice paradigm asserts the superior force of concentrated benefits over diffuse costs in the political marketplace. Vote‐seeking politicians exchange favors for support to members of special interest groups, whereas the public at large places fewer demands on and have less clout with politicians. The historical evolution of the federal income tax fits the public choice paradigm. Each provision in the tax code benefits primarily a narrow interest. Little incentive exists for anyone to represent such general interests as a broad‐based, low‐rate, simple tax system.

The Tax Reform Act of 1986 inverted the public choice paradigm. The general interest, in the form of lower tax rates, prevailed over legions of special interests—which lost their prized deductions. The reason for this inversion lay in the power of an idea—the political and economic appeal of a low top rate. Deductions were simply worth less at lower deductible rates, and the benefits of higher after‐tax income were readily apparent. A coalition of liberals seeking the abolition of special breaks for the rich and conservatives favoring the enhanced incentives in sharply lower tax rates together defeated the community of special interest groups.
CANADIAN TAX REFORM AS PUBLIC CHOICE
Authors: SPINDLER ZANE , WALKER MICHAEL
Published: January 2010

One may view current Canadian tax reform as an episode in a tax reform cycle arising from a continual public choice game. Both the positions of the Canadian players and the rules of the game may provide a rationale for these reforms. Revenue, equity, efficiency, and bargaining constraints determine the evolution of the tax code.
IMPACT OF ANTI‐APARTHEID SANCTIONS ON SOUTH AFRICA: SOME TRADE AND FINANCIAL EVIDENCE
Authors: KAEMPFER WILLIAM H. , MOFFETT MICHAEL H.
Published: January 2010

Economic sanctions against South Africa presumably are intended to cause economic damage. Trade sanctions should induce the South African terms of trade to deteriorate, and investment sanctions should cause capital flight and cause the exchange rate to deteriorate. However, due to the nature of the South African economy and to certain policies of the South African government, these impacts may be difficult to achieve.
IMPACT OF TRADE SANCTIONS ON SOUTH AFRICA: A SOCIAL ACCOUNTING MATRIX APPROACH
Authors: KHAN HAIDER ALI
Published: January 2010

This paper discusses a new approach for studying sanctions based on multipliers derived from the Social Accounting Matrix. I apply the methodology to the South African case and discuss output effects and distributional impacts on factors and households. The results show that the effects of trade sanctions on the South African economy are significant.
PERESTROIKA AND ARMS CONTROL
Authors: AYANIAN ROBERT
Published: January 2010

Mikhail Gorbachev's perestroika has had its most conspicuous success in restructuring US.‐Soviet relations. The INF treaty with the United States and the talks now under way on a prospective START agreement are major developments in international arms control. But Soviet START proposals are a threat to nuclear deterrence. START reductions in strategic nuclear weapons will decrease U.S. security dangerously unless they are implemented under the vrotective umbrella of a U.S. missile defense system.
EQUALITY AND EFFICIENCY: ANTIDISCRIMINATION POLICIES IN THE LABOR MARKET
Authors: LUNDBERG SHELLY J.
Published: January 2010

Some have criticized government antidiscrimination programs for causing efficiency losses both by devoting public resources to monitoring and enforcement and by distorting personnel decisions. This paper examines the efficiency consequences of such programs when discrimination is caused by a market failure and when regulators are imperfectly informed about individual firms' personnel policies.

This paper outlines a simple model of “statistical discrimination” and shows that an equal opportunity rule, which constrains employers from offering different wage schedules to different groups, will improve the efficiency of this economy. Employers will attempt to evade such regulation, and the paper describes an evasion strategy in which employers search for worker “qualifications” that can act as proxies for race or sex. The paper discusses problems involved in monitoring and enforcing compliance, and considers two possible responses by the regulatory agency. The first is analogous to “disparate impact” judgments in which the type of information that employers can use in personnel decisions is regulated. The second is an affirmative action‐type policy that monitors the outcomes, rather than the process, of hiring and compensation decisions. Affirmative action policies have some advantages since they permit employers to use information more efficiently than do policies that attempt to regulate personnel decisions directly. However, affirmative action policies are likely to lead to charges of preferential treatment.
CAREERS OF YOUNG WOMEN DURING THE TRANSITIONAL DECADE OF THE 1970s
Authors: ZALOKAR NADJA
Published: January 2010

This paper uses data from the National Longitudinal Survey of Young Women to explore the careers of young women during the transitional decade of the 1970s. The paper pays particular attention to women in skilled, traditionally male occupations. Contrary to human capital theory predictions, women with high initial labor force attachment entered skilled jobs in the traditionally female sector rather than skilled jobs in the traditionally male sector. The women most likely to enter skilled male jobs were those with low initial labor force attachment who entered skilled jobs later in life. Women experienced mixed success in skilled male jobs. Those who entered skilled male jobs were less likely to make long‐term careers in these jobs than were women who entered skilled non‐male jobs. On the other hand, women who remained in skilled male jobs earned considerably more than did other women. Women's chances of remaining in skilled male jobs from year to year increased over the decade of the 1970s, suggesting that prospects for women in these jobs improved over the decade.
LDC DEBT: THE ROLE OF THE INTERNATIONAL MONETARY FUND
Authors: COATS WARREN L.
Published: January 2010

For a combination of reasons that differ among countries, many developing countries' foreign debt service obligations have become difficult to meet. The size of the problem in 1982 raised concern over the stability of the banking system. The International Monetary Fund (IMF) provided the forum through which the international community's strategy for meeting this concern has evolved. The IMF also played, and continues to play, an active role in helping to finance the structural and balance‐of‐payments adjustments needed in countries with debt service problems. The IMF's involvement is an integral part of the broader strategy, which builds on the cooperation of debtors and creditors, on a case‐by‐case basis. The objective is to share the burden in a balanced way. Obtaining adequate adjustment in deficit countries is central to the strategy, but the Baker Plan increased the emphasis on restoring longer‐term growth through more far‐reaching structural adjustments supported by longer‐term financing. The IMF has modified and enhanced some of its lending facilities in light of this emphasis. However, though the short‐term nature of its lending was critical in averting a possible banking crisis during 1982 and 1983, it diminishes somewhat the IMF's role in financing the more protracted adjustments now required.
THE WORLD BANK'S RESPONSE TO THE DEVELOPING COUNTRY DEBT CRISIS
Authors: UNDERWOOD JOHN
Published: January 2010

The World Bank has responded to what it has perceived as two debt crises. The first is the highly publicized crisis in the middle‐income, heavily indebted countries–mainly those in Latin America. The second has affected a set of about 20 much poorer African countries. The World Bank's responses to the two crises have been dissimilar as well. In the case of the heavily indebted, middle‐income countries, whose debt is mainly to private creditors, the World Bank first responded with its Special Program of Action, beginning in 1983. Under the October 1985 Baker Plan, the World Bank was to increase its gross disbursements to these countries by 50 percent–a goal it has nearly met. Unfortunately, other creditors have not met Baker Plan goals, and so investment and growth in debtor countries has stagnated. The World Bank cannot continue providing a disproportionate share of financing needs. The World Bank has responded to the problems of the poorest debtor countries through its Special Program of Action for debt‐distressed countries in Africa, and has coordinated its own concessional International Development Agency–soft loan window–lending with aid from other official creditors and donors.
DEBT CRISIS, TRADE LIBERALIZATION, STRUCTURAL ADJUSTMENT, AND GROWTH: SOME POLICY CONSIDERATIONS
Authors: EDWARDS SEBASTIAN
Published: January 2010

This paper analyzes some dynamic aspects of trade liberalization reforms within the context of the debt crisis. In particular, the paper discusses issues concerning intensity of liberalization, speed of trade reform, and the interaction between liberalization and stabilization. It deals with analytical issues and draws from the empirical experiences of some highly indebted Latin American countries.
FREE TRADE, NATIONALISM, AND THE COMMON MAN: THE FREE TRADE AGREEMENT BETWEEN CANADA AND THE UNITED STATES
Authors: EASTON STEPHEN T.
Published: January 2010

This paper discusses the forces that have been at play in the debate over the recently concluded Canada‐U.S. Free Trade Agreement. Most economists agree that free trade is desirable and that both parties likely will gain from specialization and exchange. But many objections to this agreement have been raised, some of which are very different from those that economists usually consider. A review of the agreement and many of the arguments raised against it reinforces the basic credo that freer exchange between consenting parties leads to improved economic well‐being.
THE ROLE OF CRIMINAL SANCTIONS IN ANTITRUST ENFORCEMENT
Authors: COHEN MARK A.
Published: January 2010

Recently enacted sentencing guidelines were designed to reduce disparity and to increase the average sanction for white‐collar offenders. Whether these outcomes will be achieved, however, depends on how closely judges adhere to the new guidelines. We cannot yet determine how the guidelines will be implemented but can learn much about judicial behavior by studying past sentencing practice.

This paper examines sentences imposed on criminal antitrust offenders from 1955 to 1980. Judges are appointed for life and ostensibly are “independent” of the political process. The data suggest, however, that judges do not operate in apolitical vacuum. When Congress increased the status of antitrust violations from misdemeanor to felony in 1974, judges responded by doling out higher penalties–even for offenders not subject to new higher statutory maximums. In addition, the paper shows that Republican judges tend to impose harsher antitrust penalties than do Democratic judges, and that sentencing behavior apparently is influenced by a judge's prospect of promotion to a higher court position. These findings have important policy implications both for the judicial selection process and for ensuring that the judicial branch follows congressional wishes.
ORGANIC FOOD AND SUSTAINABLE AGRICULTURE
Authors: HALL DARWIN C. , BAKER BRIAN P. , FRANCO JACQUES , JOLLY DESMOND A.
Published: January 2010

Over the past 50 years, the rapid transformation of agricultural technology has provided the benefits of lower prices and a smaller share of income spent on food. Developing and applying synthetic chemicals was instrumental in lowering costs of production and in increasing yields. Conventional agriculture today relies on substantial use of synthetic chemicals as key inputs. This leads to increasing concern over negative externalities, including risks to both human health and the environment. In response to these concerns, organic food has emerged as a rapidly expanding industry. This paper examines the role of organic agriculture and other low‐input farming methods more sustainable within the context of policies designed to reduce negative externalities from using synthetic chemicals.
ARE WE ALL SUPPLY‐SIDERS NOW?
Authors: HENDERSON DAVID R.
Published: January 2010

The term “supply‐sider” has come to mean someone who believes that an x percent cut in tax rates walkthrough its effect on the incentive to work, to save and invest, and to avoid and evade taxes–lead to much less than an x percent cut, and perhaps even to an increase, in tax revenues. Not all economists are supply‐siders in this sense, but many more are now than were during the 1970s. The reason for the switch is the evidence that has accumulated on the incentive effects of taxes. Many studies have shown that cuts in tax rates for the highest‐income taxpayers actually have increased the government's revenue. A key reason for this effect is not a large elasticity of labor supply but rather a large elasticity of tax avoidance with respect to tax rates. The most important policy implication of this evidence is that the government cannot increase its revenue substantially without taxing the non‐rich.
MILITARY RECRUITING PROGRAMS DURING THE 1980s: THEIR SUCCESS AND POLICY ISSUES
Authors: WARNER JOHN T.
Published: January 2010

This paper examines trends in military recruiting during the 1980s and estimates the contribution of various policy tools—pay, recruiters, advertising, and educational benefits—to military recruiting. The paper finds that using recruiters and advertising, for the Army at least, is the most cost‐effective means of varying high‐quality enlistments. The costs of educational benefits are more difficult to determine, but the paper finds that educational benefits have a significant effect on high‐quality enlistments—particularly those for the Army.

The paper also examines the relationships among the different services' recruiting programs. The evidence is somewhat mixed but generally supports the view that positive spillovers exist among the services' recruiting programs.
MANAGING CALIFORNIA's WATER IN THE LONG RUN
Authors: CASWELL MARGRIET F. , ZILBERMAN DAVID
Published: January 2010

Water development in the western states has passed through an “expansive” phase and now is entering an “intensive” phase. Large untapped sources of high‐quality fresh water no longer are available. Using current supplies more efficiently and reallocating water among uses will be necessary so as to sustain economic growth. Water conservation, particularly in the agricultural sector, will be an important part of decreasing both the quantity problems and the quality problems that have developed. This paper discusses alternative policies for gaining these benefits.
FUEL CHOICE FOR MULTI‐FUEL VEHICLES
Authors: GREENE DAVID L.
Published: January 2010

Consequences of consuming petroleum in transportation—e.g., air pollution, global warming, energy insecurity—have stimulated interest in alternative automotive fuels and in vehicles that can use multiple fuels and combinations of fuels. Consumer behavior in choosing motor fuels for flexible‐ or dual‐fuel vehicles will likely be a key factor in creating and maintaining stable markets for new fuels. This paper explores the implications of recent studies on the sensitivity of choice of gasoline grade to price. It analyzes natural gas vehicle owners' refueling behavior, based on a survey of natural gas vehicles in Canada. The paper uses statistical models to estimate the importance of performance, range, refueling convenience, and other factors in the fuel choice decision. Choice of gasoline grade is highly sensitive to fuel prices. The cost advantage of natural gas also is of paramount importance for natural gas users. However, refueling convenience is essential for overall satisfaction and is a major factor in the frequency of natural gas use. Alternative fuels not only must be cost competitive with gasoline but initially will require a cost advantage so as to overcome range limitations and refueling inconvenience.
THE ECONOMICS OF ALTERNATIVE FUEL USE: SUBSTITUTING METHANOL FOR GASOLINE
Authors: LAREAU THOMAS J.
Published: January 2010

Alternative fuel advocates recommend substituting methanol for gasoline since methanol cars potentially pollute less. However, because the substitution is costly and the reduction of ozone precursor emissions is relatively small, using methanol raises questions about cost effectiveness.

This study demonstrates that the air quality benefits would be very expensive: The cost effectiveness usually would exceed tens or hundreds of thousands of dollars per ton of reduced volatile organic compound emissions. Only if all the cost and emissions assumptions lined up favorably would methanol substitution be desirable. Even then, it would be attractive only if the energy‐adjusted price difference between gasoline and methanol were just a few cents a gallon.
TARGETING METHANOL OR OTHER ALTERNATIVE FUELS: HOW INTRUSIVE SHOULD PUBLIC POLICY BE?
Authors: COLLINGE ROBERT A. , STEVENS ANNE
Published: January 2010

Continuing concerns over air quality have prompted calls for governmental targeting of alternative fuels. This paper uses methanol targeting as an example to address the role for public policy in terms of underlying theory and policy options. The paper shows that mandates promoting a transition to alternative fuels are inferior to other policy alternatives. It proposes market‐based alternatives instead.
INTEREST RATE VOLATILITY AND EXCHANGE RISK: NEW RULES FOR A COMMON MONETARY STANDARD
Authors: McKINNON RONALD I.
Published: January 2010

How does the choice of an exchange rate regime influence the volatility of interest rates? Are floating exchange rates useful “shock absorbers” that dampen fluctuations in domestic interest rates and prices or do they create additional risk that increases interest rate volatility and segments the international capital market? The answers are best seen in historical perspective.
MONETARISM AND THE USE OF MARKET PRICES AS MONETARY POLICY INDICATORS
Authors: KELEHER ROBERT E.
Published: January 2010

Recently proposed strategies for employing market price indicators as guides to monetary policy embody many key propositions of monetarism. Moreover, market price advocates' prescribed policy instruments and operating procedures for conducting monetary policy are not inconsistent with a monetarist perspective and fully incorporate the incentive structure of the money creation process. The market price approach differs from monetarism in three key areas: the data employed to measure intermediate indicators, the environments in which the approach works, and the policy role of the dollar. More specifically, the market price approach employs data that are readily available in unrevised form and that make better use of limited information than do monetary or reserve data. The approach produces the same results as does a monetarist approach when money demand is stable, and it produces monetarists' desired stable price results when money demand is unstable. Finally, the approach embodies a policy role for the U.S. dollar and (implicitly) recognizes the policy implications of the dollar as a reserve currency.
PROBLEMS OF THE FSLIC: A FORMER POLICY MAKER'S VIEW
Authors: WHITE LAWRENCE J.
Published: January 2010

The massive insolvency of the Federal Savings and Loan Insurance Corporation has created a public policy crisis of major proportions. This paper provides a framework for understanding the basic problems of deposit insurance, explores the origins of the current crisis, describes the regulatory response, and discusses the fundamental reforms that still must be undertaken.
MARKET VALUE ACCOUNTING AND THE BANK BALANCE SHEET
Authors: MENGLE DAVID L.
Published: January 2010

Market value accounting for depository institutions is frequently suggested as a means of limiting losses to the deposit insurance funds. But opponents argue that market value accounting is too costly to be worth the effort. This article examines each balance sheet category to determine the feasibility of marking bank portfolios to market. One can assume that almost two‐thirds of the asset side and over half of the liability side already are at market. In addition, securities and loans to less‐developed countries are traded in secondary markets. Thus, the major cost of market value accounting would be computing current values of commercial loans through discounted cash flow analysis. But efforts now are under way in the private sector to develop less costly ways to determine market values. If market value accounting is adopted, then it will likely have its greatest effect on institutions with large holdings of loans to less‐developed countries.