Rather the persistence exists because the underlying determinants of county unemployment rates change but slowly over time. Because unemployment rates return quickly to their equilibrium values, regional policies aimed at boosting local demand are unlikely to succeed in reducing unemployment. This study contributes to a body of literature concerning determinants of congressional voting behavior. The model hypothesizes that representatives choose their votes to maximize expected utility, which is a function of their preferences as well as those of their constituents. Estimates are based on 1991 Senate data from the confirmation of Clarence Thomas and the Gulf War resolution.
Results provide evidence in support of the constituent preference hypothesis.
Furthermore, evidence indicates that senators who deviated from their predicted votes in supporting the war resolution were more prone to subsequently reject the confirmation of Mr. Thomas. This paper integrates three major traditions of economic thought into a model of entrepreneurial decision making. Insights into the behavior of individuals and the operation of markets are derived. Because it utilizes familiar microeconomic theory, the model is also suitable for use as a teaching devise. From the PEG analysis we found that there were some moderate abnormal rates of return earned by selecting stocks based on their PEG ratios.