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Due to changes in personnel and shifts in responsibilities within the Department of Liaison & Outreach Services, the following blogs will be discontinued, effective Friday 12/21/07: Economic News; Political Science News and Public Administration & Urban Studies News.

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Ian Ayres "Give Freakonomics a Chance".

Robert Hahn and Peter Passell "Time to Change U.S. Climate Policy".

Aaron S. Edlin "A Christmas Warning".

Steffen Kallbekken and Torben K. Mideksa "Letter: Why Urgent Emissions Reductions are Needed". 

Adrian E. Tschoegl "Letter: Observation, Theory-Building, and Theory-Testing".

Serena Ng and Matt Shum "Detecting Information Pooling: Evidence from Earnings Forecasts after Brokerage Mergers".

Junichiro Ishida and Hiromi Nosaka "Gender Specialization of Skill Acquisition".

 Christian Dustmann and Ian P. Preston "Racial and Economic Factors in Attitudes to Immigration".

Jacob L. Vigdor "The Katrina Effect: Was There a Bright Side to the Evacuation of Greater New Orleans?".

CONTRIBUTIONS

Giampaolo Arachi "Optimal Origin-based Commodity Taxation in a Small Open Economy".

Ted C. Schroeder, Glynn T. Tonsor, Joost M.E. Pennings, and James Mintert "Consumer Food Safety Risk Perceptions and Attitudes: Impacts on Beef Consumption across Countries".

TOPICS

Mehmet S. Tosun and Mark L. Skidmore "Cross-Border Shopping and the Sales Tax: An Examination of Food Purchases in West Virginia".

Martin K. Jensen "Monotone Comparative Statics in Ordered Vector Spaces".


Luca Panaccione "Pareto Optima and Competitive Equilibria with Moral Hazard and Financial Markets".


Frank Hansen "Decreasing Relative Risk Premium".

Kjell Arne Brekke and Mari Rege "Advertising as a Distortion of Social Learning".


Daniel Hosken and David Reiffen "Pricing Behavior of Multiproduct Retailers".


Suren Basov and Svetlana Danilkina "Auctions with Opportunistic Experts".

Sheila M. Olmstead and Robert N. Stavins "A Meaningful Second Commitment Period for the Kyoto Protocol".

Kenneth J. Arrow "Global Climate Change: A Challenge to Policy".

Thomas C. Schelling "Climate Change: The Uncertainties, the Certainties and What They Imply About Action".

Lawrence H. Goulder "California's Bold New Climate Policy".

Scott Barrett "Proposal for a New Climate Change Treaty System".

Joshua S. Gans "Do Voluntary Carbon Offsets Work?".

Erzo F.P. Luttmer "Does the Minimum Wage Cause Inefficient Rationing?".

Domenico Scalera and Alberto Zazzaro "The Unpleasant Effects of Price Deregulation in the European Third-Party Motor Insurance Market: A Theoretical Framework".

Jessica Wolpaw Reyes "Environmental Policy as Social Policy? The Impact of Childhood Lead Exposure on Crime".

Jin-Hyuk Kim "Strategic Use of Copyright Protection to Deter Entry".

Anindya Sen "Does Increased Abortion Lead to Lower Crime? Evaluating the Relationship between Crime, Abortion, and Fertility".

COLUMNS

Lawrence H. Goulder "California's Bold New Climate Policy".

Joshua S. Gans "Do Voluntary Carbon Offsets Work?".

John Morgan "Reforming the IMF".

LETTERS

Rognvaldur Hannesson "Letter: The Other Problems with the Stern Report".

Harlan Green "Letter: What Underlies the Inequality of 'Garrison America'?".

John A. Tatom "The US-China Currency Dispute: Is a Rise in the Yuan Necessary, Inevitable or Desirable?".

Indradeep Ghosh "The Relation between Trade and FDI in Developing Countries -- A Panel Data Approach".

Olajide Oladipo "Exchange Rate Pass-Through: A Case Study of a Small Open Economy".

Raul Moncarz "Entrepreneurship, Mobility, Economic Development, and Stagnation of the South Florida Economy".

Yu-Feng L. Lee "Bilateral Trade and Intra-Regional Business Cycles: Is East Asia Feasible for a Currency Area?".

Richard G. Vanden Bergh and Guy L.F. Holburn "Targeting Corporate Political Strategy: Theory and Evidence from the U.S. Accounting Industry".

David Lowery and Virginia Gray "Understanding Interest System Diversity: Health Interest Communities in the American States".

Ian Down "Trade Openness, Country Size and Economic Volatility: The Compensation Hypothesis Revisited".

John A. Gould and Matthew S. Winters "An Obsolescing Bargain in Chad: Shifts in Leverage between the Government and the World Bank".

Fuhito Kojima "When Can Manipulations Be Avoided in Two-Sided Matching Markets? -- Maximal Domain Results".

Abel Cadenillas and Steven P. Clark "Free Cash Flow and Managerial Entrenchment: A Continuous-Time Stochastic Control-Theoretic Model".

Priyodorshi Banerjee "Collective Punishments: Incentives and Examinations in Organisations".

Eran Hanany and Rotem Gal "Asymmetric Nash Bargaining with Surprised Players".

Yu-Chen Lin "Competing Gatekeepers".

Stephen Leybourne, Tae-Hwan Kim, and A.M. Robert Taylor "Detecting Multiple Changes in Persistence".

Serena Brianzoni, Cristiana Mammana, and Elisabetta Michetti "Complex Dynamics in the Neoclassical Growth Model with Differential Savings and Non-Constant Labor Force Growth".

Walter Enders, Barry L. Falk, and Pierre Siklos "A Threshold Model of Real U.S. GDP and the Problem of Constructing Confidence Intervals in TAR Models".

 Roger J. Bowden and Jennifer Z. Zhu "Which Are the World's Wobblier Currencies? Reference Exchange Rates and Their Variation".

Marco Gallegati and Mauro Gallegati "Wavelet Variance Analysis of Output in G-7 Countries".

William T. Smith "Inspecting the Mechanism Exactly: A Closed-form Solution to a Stochastic Growth Model".

Francesco Venturini "ICT and Productivity Resurgence: A Growth Model for the Information Age".

Lilia Cavallari "A Macroeconomic Model of Entry with Exporters and Multinationals".

Silvia Ardagna, Francesco Caselli, and Timothy Lane "Fiscal Discipline and the Cost of Public Debt Service: Some Estimates for OECD Countries". 

Maksymilian Kwiek "Political Sustainability of Unfunded Pensions in an Endogenous Growth Model".

 Matthias Paustian "Assessing Sign Restrictions".  This paper assesses sign restrictions via a controlled experiment. A researcher estimates a VAR on an infinite amount of data generated by a DSGE model.

 Ignazio Angeloni and Michael Ehrmann "Euro Area Inflation Differentials". We build a stylised 12-country model of the euro area and use it to analyse how differences in national inflation and growth rates arise within the European Economic and Monetary Union (EMU).

Michael Donihue and Andriy Avramenko "Decomposing Consumer Wealth Effects: Evidence on the Role of Real Estate Assets Following the Wealth Cycle of 1990-2002".  Using data that include the period from 1990 to 2005, traditional approaches to estimating macroeconomic wealth effects on consumption confront two puzzles: (i) econometric evidence of a stable cointegrating relationship among consumption, income, and wealth is weak at best; and (ii) life-cycle models that rely on aggregate measures of wealth cannot explain why consumption did not collapse when the value of stock-market assets declined so dramatically.

Michael D. Bordo, Robert D. Dittmar, and William T. Gavin "Gold, Fiat Money, and Price Stability". This paper uses a dynamic stochastic general equilibrium model to examine price dynamics under alternative policy regimes.

Pedro Silos "Housing Tenure and Wealth Distribution in Life Cycle Economies". Common practice in the housing and wealth distribution literature has proceeded as if the modeling of housing rental markets was unnecessary due to renters' relative low levels of wealth and the smaller fraction they represent in the total population. This paper shows, however, that their inclusion matters substantially when dealing with wealth concentration over the life-cycle.

Prepared biennially since 1988, EPI's flagship publication sums up the problems and challenges facing American working families, presenting a wide variety of data on family incomes, taxes, wages, unemployment, wealth, and poverty — data that enables the book's authors to closely examine the impact of the economy on the living standards of the American people. The State of Working America 2006/2007 is an exhaustive reference work that will be welcomed by anyone eager for a comprehensive portrait of the economic well-being of the nation.

Luigi Siciliani "Optimal Contracts for Health Services in the Presence of Waiting Times and Asymmetric Information".  This study presents a model of optimal contracting for health services in the presence of excess demand and waiting times.

David M. Lang "Financial Aid and Student Bargaining Power". This research attempts to analyze the financial aid process by considering the ability of a student to act strategically.

Cemile Yavas "The Ghost of Corruption".  This paper features a continuum of firms that apply for a permit and randomly get matched with a potentially corrupt bureaucrat.

Daron O. Djerdjian "Ideology, Inequality and Inequitable Trade Policies".  Does more wealth inequality lead to more inequitable trade policies? To answer this question, this study develops a political economy model of international trade theory and predicts that in a pro-worker regime, an increase in wealth inequality leads to more equitable trade policies.

"Are Errors in Official U.S. Budget Receipts Forecasts Just Noise?"  Existing evidence suggests that U.S. Government budget receipts forecasts are unbiased and efficient. Our study is an attempt to examine the veracity of these findings.
ROBERT MARTIN MCNAB   Naval Postgraduate School
MARK RIDER - Georgia State University
KENT D. WALL - Naval Postgraduate School

"The Hysteresis of Currency Substitution: Currency Risk Vs Network Externalities"  The paper uses survey data from Bulgaria, which experienced this phenomenon, to investigate the origins of this ratchet effect.
NEVEN T. VALEV -  Georgia State University - Department of Economics

"State Income Tax Preferences for the Elderly"  This research investigates the evolution of state income tax preferences for the elderly over the last 25 years.
 KAREN SMITH CONWAY  - University of New Hampshire - Department of Economics
JONATHAN C. RORK   Georgia State University - Department of Economics

"Gender Wage Differentials in Uganda: Evidence from the Uganda National Household Survey"  This paper investigates the causes of gender wage differentials in Uganda.
PAUL KAGUNDU - Andrew Young School of Policy Studies
OLGA PAVLOVA -  Georgia State University

"Patents, R&D and Lag Effects: Evidence from Flexible Methods for Count Panel Data on Manufacturing Firms"  This paper investigates the relationship between patents and research and development expenditures using new longitudinal patent data at the firm level for the U.S. manufacturing sector from 1982-1992.
SHIFERAW GURMU    Georgia State University - Department of Economics
FIDEL PEREZ SEBASTIAN  Universidad de Alicante - Department of Economic Analysis

"Revealed Altruism" This paper develops a nonparametric theory of preferences over one's own and others' monetary payoffs.
 JAMES C. COX - Georgia State University - Department of Economics
 DANIEL FRIEDMAN- University of California, Santa Cruz - Department of          Economics, CESifo
VJOLLCA SADIRAJ-Georgia State University - Department of Economics

"Income Mobility: The Recent American Experience" This paper examines the pattern of income mobility during the 1980s and the mid 1990s.
ROBERT CARROLL - Office of Tax Analysis
DAVID JOULFAIAN - U.S. Department of the Treasury
MARK RIDER- Georgia State University

"Direct Tests of Models of Social Preferences and a New Model" We discuss generalizations of the egocentric altruism model that incorporate agents' intentions and thus provide a unified approach to modeling behavior in games both with and without reciprocal motivation.
JAMES C. COX- Georgia State University - Department of Economics
VJOLLCA SADIRAJ- Georgia State University - Department of Economics

"Discrimination in the Lab: Experiments Exploring the Impact of Performance and Appearance on Sorting and Cooperation" We present experimental evidence consistent with statistical discrimination in a public good and group formation game. MARCO CASTILLO -  Georgia Institute of Technology
RAGAN PETRIE - Georgia State University - Department of Economics

"The Interdependence of School Outcomes and School and Neighborhood Crime" In this paper, we estimate the effects of neighborhood crime and in-school crime on educational outcomes for elementary and secondary schools in the city of Atlanta over the period 1999 to 2002.
MARY G. MCGARVEY- University of Nebraska at Lincoln
JOEY SMITH - Georgia State University
MARY BETH WALKER -  Georgia State University

Jorgen Hansen (2007) "Human Capital and Welfare Dynamics in Canada." This paper analyzes the effects of human capital on welfare dynamics in Canada using data from the Self-Sufficiency Project (SSP).

Matthew A. Cole and Rob J. Elliott (2007) "Do Environmental Regulations Cost Jobs? An Industry-Level Analysis of the UK", This paper revisits the 'jobs versus the environment' debate and provides the first analysis for a country other than the US.

Matthew G. Nagler (2007) "Understanding the Internet's Relevance to Media Ownership Policy: A Model of Too Many Choices", This paper posits a model of news outlet selection on the Internet in which consumers experience cognitive costs that increase with the number of options faced.

Robert Driskill and Andrew W. Horowitz (2007) "The Pollution Haven Paradox: Can an Effluent Tax Improve both Profits and Welfare?", We demonstrate that a government trying to prevent flight by a "dirty" durable good monopolist can impose an effluent tax that is offset by a lump-sum subsidy so that both firm profits and host-country welfare are increased.

Leora Friedberg and Anthony Webb (2007) "Life Is Cheap: Using Mortality Bonds to Hedge Aggregate Mortality Risk", Using the widely-cited Lee-Carter mortality model, we quantify aggregate mortality risk as the risk that the average annuitant lives longer than is predicted by the model, and we determine that annuities expose providers to substantial risk.

Mariano Kulish "Should Monetary Policy Use Long-Term Rates?". This paper studies two roles that long-term nominal interest rates can play in the conduct of monetary policy in a New Keynesian model.

Paul Klein and Gustavo J. Ventura "TFP Differences and the Aggregate Effects of Labor Mobility in the Long Run". We characterize the magnitude of labor movements implied by an efficient long-run allocation, and derive their implications for capital accumulation.

Ray C. Fair "A Comparison of Five Federal Reserve Chairmen: Was Greenspan the Best?".  This paper examines the performances of the past five Federal Reserve chairmen using optimal control techniques and a macroeconometric model.

Charles Weise "A Simple Wicksellian Macroeconomic Model". This paper describes a simple Wicksellian macroeconomic model that can be used in undergraduate macroeconomics courses.

Angus C. Chu "Confidence-Enhanced Economic Growth". This paper investigates one causal link between entrepreneurial overconfidence and economic growth in the US.

Juan Dolado, Marcel Jansen, and Juan Jimeno Serrano "A Positive Analysis of Targeted Employment Protection Legislation".  This paper builds a simple matching model with heterogeneous workers in order to analyze this feature of Employment Protection Legislation (EPL).