ALBERT

Notes: Austrian business cycle policy was unconventional but rather successful in the last three decades and especially since the oil crisis. The unconventional conception was developed by trial and error, only ex post it got the name Austro-Keynesianism. Nevertheless it has a theoretical basis, a rather radical interpretation of KEYNES, which bases economic instability on a deep-rooted uncertainty of entrepreneurs. According to this interpretation economic policy tried to stabilize the data most important for entrepreneurial decisions, especially wage increase, exchange rates and investment promotion. This lightened the burden of the traditional instruments of stabilization policy. In addition these instruments were assigned differently: Exchange rate policy was primarily used to stabilize prices in the short run, incomes policy to equilibrate the current account in the medium and longer run, fiscal policy to stabilize employment. While the new assignation proved useful for stabilization policy, some structural problems remained unsolved.

Notes: Implications of inefficiency in theories of market failure reveal a flawed methodology. Behavior which is apparently inefficient is actually the symptom of an inappropriate analytical model. The standard examples of market failure, monopoly power and external effects, are forthcoming only from models which omit transactions costs as explanatory variables. The unfortunate consequence of this conclusion is that complete and appropriate economic models, which incorporate all relevant variables, will always certify any behavior as efficient. This poses the ‘Panglossian dilemma’, that whatever is, is optimal. This dilemma is resolved by an analytical approach which compares behavior under alternative economic institutions. This analysis depends on two propositions: that transactions costs are affected by alternative institutional environments; and that institutions are themselves responses to the existence of transactions costs. These propositions are used to predict behavior under alternative institutions, and to explain the long run evolution of the institutions.

Notes: Empirical evidence does not agree with the investment-model of the demand for education: out of pocket costs have another impact than earnings foregone. This difference can be explained by consumption motives. The demand for education is then greater, the full price of education exceeds discounted future incremental earnings, net discounted wealth is not maximum and the rate of return to marginal investments in education is smaller than the interest rate.

Notes: At the turn of this century WESLEY C. MITCHELL argued that the velocity of money could be influenced by a noneconomic variable that he called ‘confidence’; but the idea has received little attention since then. This study uses events in the long Vietnam war for statistically demonstrating the MITCHELL hypothesis. U. S. troop presence in South Vietnam boosted the peoples' confidence in their country's future thereby stabilizing the demand for fiat money and income velocity. Only two variables - the previous year's rate of inflation and U. S. troop strength, which serves as a proxy for battlefield victories - are needed to explain movements in velocity.

Notes: The paper studies the impact on international capital movements of the accelerated tax depreciation scheme introduced in the U. S. A. under the REAGAN administration. It is argued on theoretical grounds that, contrary to most other potential tax reforms, this depreciation scheme calls for a substantial restructuring in the world-wide capital stock in favor of the U. S. Moreover, it is demonstrated that the scheme may induce severe sectoral changes within national economies. Countries that do not take countervailing actions against the U. S. policy are likely to experience a rise in their labour intensive industries at the expense of losing their capital intensive industries. A tentative estimate based on stylized economic facts indicates the necessity of a capital import into the U. S. of at least 7% of the OECD capital stock, which means that even with a doubling of the 1983 U. S. current account deficit of $40 billion more than a decade would have to pass in order for the required structural changes to be accomplished.

Notes: The growing leniency and generosity of public income support systems has been hypothesized to negatively affect work effort. The magnitude of this effect is estimated for the U. S. and the Netherlands in the 1970s, using a three-stage Probit-OLS model employed on micro data sets. Individuals are viewed as choosing the number of hours worked on the basis of expected labor income, expected transfer income, labor market and demographic characteristics and health. The elasticity of annual hours worked with respect to expected transfer income was estimated to be -0.22 for U. S. and -0.82 (1980) for the Netherlands. Combining these elasticities with the annual percentage increases in transfer generosity yields a yearly reduction in the number of hours worked of 0.65% for the U. S. and 2.7% for the Netherlands during the 1970s. These results suggest that growing transfers have had a substantial and negative impact on desired work effort and thus on production and economic performance, especially in the Netherlands.

Notes: The objective of this study is to present some preliminary estimates of regional long run benefits and costs due to the CO2 greenhouse effect within an economic framework that permits an appraisal of CO2 policy control costs. We utilize a mathematical programming framework to solve for growth paths for North and South America both for CO2 constrained (by an optimal emissions tax rate) and unconstrained scenarios. The possible losses to North America and gains to South America suggest international cooperation on CO2 control policy may be very difficult. Cooperative adjustments to increased CO2 may prove more feasible.

Notes: BADE, KLAUS J. (Hrsg.): Auswanderer - Wanderarbeiter - Gastarbeiter.CARLSTEIN, TOMMY: Time Resources, Society and Economy.CAVES, RICHARD E.: Multinational Enterprise and Economic Analysis.CIMPA, FRANZ: Arbeitslehre für Entwicklungshilfeprojekte.ECKSTEIN, OTTO: The DRI Model of the U. S. EconomyELIASSON, GUNNAR; SHAREFKIN, MARK and YSANDER, BENGT-CHRISTER (eds.): Policy Making in a Disorderly World EconomyFRIEDMAN, JAMES: Oligopoly TheoryGARNAUT, ROSS and CLUNIES-ROSS, ANTHONY: Taxation of Mineral RentsHICKS, JOHN: Money, Interest and Wages.KALECKI, MICHA: Theorie des Wachstums und der Planung in der sozialistischen VolkswirtschaftKILLINGSWORTH, MARK R.: Labor SupplyKLEIN, LAWRENCE R.: Lectures in EconometricsLAVERGNE, RÉAL P.: The Political Economy of U. S. Tariffs: An Empirical AnalysisLEISINGER, KLAUS M.: Health Policy for Least Developed CountriesMCKENZIE, GEORGE W.: Measuring Economic Welfare: New MethodsMELMAN, SEYMOUR: Profits without ProductionMOHR, JENS-UWE: Soziologische Aspekte der Anpassung an die Industria-lisierung in einem Entwicklungsland, dargestellt am Beispiel von NigeriaPREMCHAND, A.: Government Budgeting and Expenditure Controls.QUADRIO-CURZIO, ALBERTO (ed.): The Gold Problem: Economic Perspectives.REICH, UTZ-PETER und STAHMER, CARSTEN (Hrsg.): Gesamtwirtschaftliche Wohlfahrtsmessung und Umweltqualität.REITER, KLAUS: Regionale wirtschaftliche Zusammenarbeit von Staaten der Dritten WeltRIEBEL, VOLKER: Die Schwarzarbeit als Problem der ZeitallokationRIKER, WILLIAM H.: Liberalism Against Populism.SCHARPF, FRITZ W. und BROCKMANN, MARLENE (Hrsg.): Institutionelle Bedingungen der Arbeitsmarkt - und Beschäftigungspolitik.SCHMIDBERGER, WOLF-DIETER: Fiskalpolitik in kleinen offenen Volkswirtschaften.SPRAOS, JOHN: Inequalising Trade?STIGUM, BERNT P. and WENSTØP, FRED (eds.): Foundations of Utility and Risk Theory with ApplicationsSTREETEN, PAUL: First Things First.STRØM, STEINAR (ed.): Measurement in Public ChoiceWELLS, LOUIS T. Jr.: Third World Multinationals.WILLIAMSON, JOHN (ed.): IMF ConditionalityWORSWICK, DAVID and TREVITHICK, JAMES(eds.): Keynes and the Modern World

Notes: This paper examines the causal links between intra-industry trade and economic integration, and considers whether these can be expected to differ systematically between customs unions involving developed market economies and those involving centrally planned economies. Intra-industry trade is measured for members of the E. E. C. and compared with indices for various members of CMEA (as well as several non-E. E. C. European countries). It is found that average levels of intra-industry trade are indeed higher for E. E. C. countries and various explantations for this finding are discussed.

Notes: Aoki, Masanao: Notes on Economic Time Series Analysis: System Theoretic PerspectivesBéeateille, Andréea: The Idea of Natural Inequality and Other EssaysBianchi, Patrizio: Public and Private Control in Mass Product Industry: The Cement Industry CasesBinmore, K. G.: Calculus.Biørn, Erik and Jansen, Eilev S.: Econometrics of Incomplete Cross-Section/Time-Series DataBoltho, Andrea (ed.): The European Economy.Brems, Hans: Fiscal TheoryCooper, Richard N.; Kenen, Peter B.; Braga DE Macedo, Jorge and Van Ypersele, Jacques (eds.): The International Monetary System Under Flexible Exchange Rates: Global, Regional and NationalEarl, Peter D.: The Economic Imagination. Towards a Behavioral Analysis of ChoiceFaber, Malte; Niemes, Horst und Stephan, Gunter: Entropie, Umwelt-schutz und Rohstoffproduktion. de Fontenay, Patrick et al.: Hungary: An Economic SurveyVon Furstenberg, George M. (ed.): International Money and Credit: The Policy RolesHahn, Frank: Money and InflationHart, Jeffrey A.: The New International Economic OrderHeusgen, Christoph: Ludwig Erhards Lehre von der Sozialen Marktwirt-schaft.Hooke, A. W. (ed.): The Fund and China in the International Monetary System,Kaldor, Nicholas: Grenzen der ≫General Theory.Koslowski, Peter: Gesellschaft und Staat.Möller, Rudolf: Interpersonelle Nutzenvergleiche.Novak, Michael: The Spirit of Democratic CapitalismPattanaik, Prasanta K. and Salles, Maurice (eds.): Social Choice and WelfarePegoretti, Giovanni: Capitate finanziario, profttto, interessePütz, Paul und Meyerhöfer, Walter: Hemmnisse und Hilfen für UnternehmensgründungenRecktenwald, Horst Claus: Lexikon der Staats- und Geldwirtschaft.Schmähl, Winfried (Hrsg.): Ansätze der LebenseinkommensanalyseSertel, Murat R.: Workers and IncentivesSinclair, P. J. N.: The Foundations of Macroeconomic and Monetary TheorySkidelsky, Robert: John Maynard Keynes, Hopes Betrayed 1883-1920Sommer, Jürg H.: Kostenkontrolleim Gesundheitswesen.Tuchtfeldt, Egon (HRSG): Bauteine zur Theorie der Wirtschaftspolitik

Notes: U. S. monetary impulses may be transmitted to foreign unemployment through two channels: in the first (Keynesian) channel U. S. monetary expansion boosts the U. S. demand for domestic and foreign production. This leads to an export led recovery in foreign countries. The second (monetarist) channel depends on the usual balance of payments adjustment: U. S. monetary expansion which increases foreign money supplies initiates real recovery provided foreign business cycles respond to the monetary adjustment. The spectral analysis of individual time series for U. S. and foreign unemployment over the period 1960(2) to 1980(2) reveal dominant cycles in each series coinciding with the periodicity of the business cycle. The main arguments of the study are tested in ten separate cross spectral studies of the U. S. money stock and foreign unemployment. The following general conclusion emerges: U. S. monetary expansion promises to reduce unemployment in some foreign states, but has no effect in others. This conclusion does not support the case for U. S. monetary expansion, as the effect on world unemployment is not universal, but the potential costs in the form of higher inflation remain.

Notes: In this exploratory paper, the notion of (strong) discontinuity is introduced into the theory of international labour migration. It is suggested that inter-country wage differentials alone may fail to induce international migration at the level of the decision making entity. However, three factors - risk aversion, relative deprivation and asymmetric information - in conjunction with these wage differentials, may account for international migration.

Notes: This paper suggests a way of incorporating the important concepts of optimism and pessimism into the accepted model of decision-making under uncertainty. We exploit the primitive notion that an optimist is someone who over-estimates (underestimates) the likelihood of favourable (unfavourable) outcomes. We show that this incorporation enables us to explain several commonly observed apparent violations of Subjective Expected Utility Theory. Several illustrations and economic applications are presented, and we show that attitude to ‘fate’ (as evidenced in optimism and pessimism) is a different dimension of personality than attitude to risk. We conclude by relating our extension of SEU theory to other recent extensions.

Notes: Aufgrund verschiedener Anzeichen ist zu schliessen, dass bei der ökonomischen Forschung an den deutschsprachigen staatlichen Universitäten ein deutlicher Rückstand besteht gegenüber der internationalen, weitgehend durch amerikanische Wissenschafter geprägten Spitze. Eine Analyse der für die Hochschulprofessoren massgebenden institutionellen Rahmenbedingungen zeigt, dass dies auf eine ungünstige Anreizstruktur zurückzuführen ist. Diese Regelungen wirken sich nämlich im Endeffekt dahingehend aus, dass andere Tätigkeiten (sogenannte ≪Dienstleistungen≫) im Regelfall wesentlich mehr zum Nutzen eines Professors beitragen als die Forschungsarbeit. Dies trifft auch dann zu, wenn bei den nutzenstiftenden Faktoren nicht nur das Einkommen, sondern auch Anerkennung und Befriedigung an der Tätigkeit berücksichtigt werden. Wenn der Staat an seinen Universitäten mehr und bessere Forschung wollte, müsste er demzufolge dafür sorgen, dass wissenschaftliche Arbeit relativ zu anderen Tätigkeiten wieder attraktiver würde. Zur Erreichung dieses Ziels sind grundsätzlich verschiedene Massnahmen denkbar. Bei einer vergleichenden Beurteilung schält sich jedoch als einziger vom Staat tatsächlich steuerbarer und gleichzeitig auch wirkungsvoller Aktionsparameter die Besoldungsregelung heraus: die institutionellen Rahmenbedingungen müssten demnach so umgestaltet werden, dass sich zusätzliche Forschungsarbeit in irgend einer Form auch in zusätzlichem Einkommen niederschlägt.

Notes: According to Malthusian growth theory the wage rate may be maintained constant on the path to the stationary state, at a level above ‘subsistence’ by appropriate reductions in the population growth rate. In this paper we document J. S. MILL'S version of the Malthusian model and various applications thereof.

Notes: Die Frage der Realität ≪langer Wellen≫ in der wirtschaftlichen Entwicklung des 19. und 20. Jahrhunderts ist bis heute umstritten. Nicht selten wird das Vorhandensein dieser sogenannten KONDRATIEFF-Zyklen zwar für Wertreihen bejaht, für Produktionsreihen dagegen verneint. Mit Hilfe neuer statistischer Verfahren der Zeitreihenanalyse, die auf der Filtertheorie basieren, kann man zeigen, dass für eine gegenstandsneutrale Untersuchung dieser Frage das traditionelle Instrumentarium der Zeitreihenanalyse völlig ungeeignet ist. Das Grundproblem jeder statistischen Analyse ≪langer Wellen≫, nämlich Bestimmung und Ausschaltung des Trend als der nicht-zyklischen Bewegungskomponente einer Zeitreihe, wird in diesem Artikel mit einem völlig neu entwickelten Filterverfahren gelöst. Die Ergebnisse zeigen sehr deutlich sowohl die fundamentale Bedingtheit von Trend und Zyklus, als auch das Vorhandensein langfristiger zyklischer Schwingungskomponenten in Produktionsreihen. Während die Ergebnisse die gängige Datierung der KONDRATIEFF-Zyklen bis etwa 1913 annähernd bestätigen, zeigen die Zyklen in ihrem gesamten Verlauf starke Variationen in Form und Dauer und erfordern damit eine partielle Revision tradierter Vorstellungen.

Notes: Andel, Norbert: FinunzwissenschuftBéteille, André (ed.): Equality and Inequality: Theory and PracticeBinswanger, H. C.; Frisch, H.; Nutzinger, H. G. u. a.: Arbeit ohne Umweltzerstörung.Bowles, Roger: Law and the EconomyBrams, Steven J. and Fishburn, Peter C.: Approval VotingThe Brandt Commission: Common Crisis: North South: Cooperation for World RecoveryBroome, John: The Microeconomics of Capitalism de Cecco, Marcello (ed.): International Economic Adjustment.Chick, Victoria: Macroeconomics after Keynes.Chow, Gregory C. and Corsi, Paolo (eds.): Evaluating the Reliability of Macro-economic ModelsCoddington, Alan: Keynesian Economics.Culyer, A. J. (ed.): Health Indicators.Feldstein, Martin (ed.): Behavioral Simulation Methods in Tax Policy AnalysisFolkers, Cay: Begrenzungen von Steuern und Staatsausgaben in den USA.Giersch, Herbert (ed.): Emerging TechnologiesInternational Monetary Fund: World Economic Outlook.John, J.; Schwefel, D. and Zöllner, H. (eds.): Influence of Economic Instability on Health.Johns, Richard Anthony: Tax Havens and Offshore Finance.Jones, R. J. Barry (ed.): Perspectives on Political Economy. Alternatives to the Economics of DepressionJöreskog, K. G. and Wold, H. (eds.): Systems under Indirect Observations.Orlowski, Dieter: Die internationale Wettbewerbsfähigkeit einer Volkswirtschuft.Page, Bernd: Methoden der Modellbildung in der GesundheitssystemforschungRöpke, Jochen: Die unterentwickelte Freiheit.Rosner, Peter: Arbeit und Reichtum.Sabel, Charles F.: Work and politics.Schäfer, Hans-Bernd: Landwirtschaftliche Akkumulationslasten und industrielle Entwicklung.Sen, Amartya: Choice, Welfare and MeasurementSen, Amartya and Williams, Bernard (eds.): Utilitarianism and beyondShirley, Mary et al.: World Development ReportStubblebine, Wm. Craig and Willett, Thomas D. (eds.): Reaganomics, A Midterm ReportUrsprung, Heinrich W.: Die elementare Katastrophentheorie: Eine Darstellung aus der Sicht der ÖkonomieUtton, M. A. and Morgan, A. D.: Concentration and Foreign TradeWilson, Thomas and Wilson, Dorothy J.: The Political Economy of the Welfare State

Notes: The paper analyses the growth and profitability of the world's largest firms by reference to their size, degree of multinationality, main industry of operation, nationality of ownership and research intensity. The influence of size of firm on growth is stable but weak, its influence on profitability is negligible. Industry of operation has generally strongly influenced growth but the effect on profitability is not consistent amongst different time periods and samples. Division by research intensities of firms is significant in analysing growth, less in the analysis of profitability. Degree of multinationality does not contribute consistently to the explanatory power of the full equation for either dependent variable but nationality of ownership is a consistently powerful explanatory factor.

Notes: Does externality theory provide a basis for the government's monopoly in the production of base money? Money, as has been shown, is not a public good because it does not satisfy the non-rivalness criterion (nor the non-excludability criterion). Like any public decision, political agreement on a common money or unit of account (i. e., exchange rate fixity) passes the non-rivalness test. However, whether the imposition of a common money or monetary unit is a public good or a public bad depends on whether money is a natural-monopoly good or not. Hence, there is no independent public-good justification for the government's money monopoly. The public good argument is redundant. Whether money is a natural monopoly good cannot be determined a priori, but only on the basis of experience. If governments are natural money monopolists, they should have gained their monopoly position by prevailing in the market. Historically, this is not the case. The only valid test of the natural monopoly argument is to abolish all barriers to entry and to admit free currency competition from private issuers on equal terms. An international cross-section estimate of money demand functions reveals only weak evidence of social economies of scale in the use of money. By contrast, choice among currencies is shown to be strongly affected by restrictions of convertibility.

Notes: Dieser Beitrag befasst sich mit der Bereitstellung von Gütern und Dienstleistungen durch ≪Freiwilligengruppen≫, die als ≪Klubs≫ im Sinne der Public Choice-Theorie aufgefasst werden. Es wird eine theoretische Erklärung vorgeschlagen, warum Individuen eine Freiwilligengruppe gründen und sich nicht für eine institutionelie Alternative, zum Beispiel ein gewinnorientiertes Unternehmen, entscheiden. Haupterklärungsgründe für diese Wahl sind der Nutzen, den Mitglieder von Freiwilligengruppen infolge ihrer Wahlentscheidung zusätzlich zu jenem aus dem Konsum des Klubguts ziehen, Transaktionskostengesichtspunkte, Vertrauensaspekte im Zusammenhang mit asymmetrischer Information und qualitative Unterschiede, die mit der institutionellen Form der Erbringung einer Leistung verbunden sind. Für manche Formen von Freiwilligengruppen werden altruistische Präferenzen in die Erkläng miteinbezogen.

Notes: Voluntary export restraint agreements (VERs) have emerged as a popular alternative to traditional protectionist devices, whose use is severely limited by trade agreements. Aimed at ‘disruptive’ suppliers, VERs tend to shift the source of imports away from the most efficient producers. Yet such negotiated agreements are attractive to exporters because they are preferable to the alternative of unilateral import barriers, especially since they allow exporters to control the trade restriction and thereby raise the export price. In fact all effective participants gain from the VER agreement, while consumers and others hurt by it are excluded from the negotiating process. Among the inherent problems of VERs, however, is their tendency to divert exports towards third markets, spreading protectionism worldwide and destabilizing trade relations. Continuing protectionist pressure in such an environment encourages the development of more sophisticated and comprehensive methods of induced export restraint.

Notes: Abele, Hanns; Nowotny, Ewald; Schleicher, Stefan und Winckler, Georg (Hrsg.): Handbuch der österreichischen WirtschaftspolitikBalassa, Bela and Associates: Development strategies in semi-industrial economiesBaumol, William J.; Panzar, John C. and Willig, Robert D.: Contestable Markets and The Theory of Industry Structure.Begg, David K. H.: The Rational Expectations Revolution in Macroeconomics.Ben-Porath, Yoram (ed.): Income Distribution and the Family.Bennett, James T. and Di Lorenzo, Thomas J.: Underground Government: The Off-Budget Public SectorBrandt, A.; Horisberger, B. and Von Wartburg, W. P.(eds.): Cost-Sharing in Health Care. van Duijn, J. J.: The Long Wave in Economic LifeFrisch, Helmut (ed.): Schumpeterian EconomicsFujimori, Y.: Modern Analysis of Value TheoryIngram, James C.: International EconomicssJones, Leroy P. (ed.): Public enterprise in less-developed countriesKindleberger, Charles and Di Tella, G. (eds.): Economics in the Long View.Kirzner, Israel M. (ed.): Method, Process and Austrian Economics: Essays in Honor of Ludwig von MisesKornai, János: Growth, Shortage and Efficiency.Kozma, Ferenc: Economic Integration and Economic StrategyKrueger, Anne O.: Exchange-Rate DeterminationKülp, Bernhard: FreizeitökonomieMüller-Godeffroy, H. et al.: Der neue Protektionismus.Nezeys, Bertrand: Les relations économiques extérieures de la France.Ordeshook, Peter C. and Shepsle, Kenneth A. (eds.): Political EquilibriumPatinkin, Don: Anticipations of the General Theory?Rugman, Alan M. (ed.): New Theories of the Multinational EnterpriseRydén, Bengt and Bergström, Villy (eds.): Sweden: Choices for Economic and Social Policy in the 1980sSeurot, François: Inflation et emploi duns les pays socialistesSheffrin, Steven M.: Rational ExpectationsStegmuller, W.; Balzer, W. and Spohn, W. (eds.): Philosophy of Economics.Stewart, Frances and Sengupta, Arjun: International Financial Cooperation.Sundrum, R. M.: Development Economics.Tullock, Gordon: Economics of Income RedistributionU. S. Gold Commission: Report to the Congress of the Commission on the Role of Gold in the Domestic and International Monetary System

Notes: In this paper we evaluate the welfare effects of changes in a country's terms of trade and in its import tariff. Imports are treated as intermediate goods, and the welfare measures which we use are based on production theory and on duality theory with special attention devoted to the setting of international trade theory. Empirical estimates are reported for the United States, Canada, Australia, and Switzerland.

Notes: In this paper we assess the resource cost of rent seeking activity in India, taking into account controls over foreign trade, capital markets, goods and labour markets. Using the approximation that the value of rents equals the welfare cost of rent seeking, gives a range from 30-45 percent of GNP using data for 1980-81. Some of the wider implications for the measurement of the welfare costs of distortions are discussed. The main development policy issues raised by the calculations are also outlined.

Notes: Al-Shaikhly, Salah (ed.): Development Financing.Bombach, G.; Netzband, K.-B.; Ramser, H.-J. und Timmermann, M. (Hrsg.): Der Keynesianismus III.De Jong, H. W. (ed.): The Structure of European IndustryDesai, Meghnad: Testing MonetarismDiekmann, Jochen: Kontrctkttheoretische ArbeitsmarktmodelleDunning, John H.: International Production and the Multinational EnterpriseEliasson, Gunnar and SÖdersten, Jan (eds.): Business Taxation, Finance and Firm Behavior.Gandolfo, Giancarlo: Qualitative Analysis and Econometric Estimation of Continuous Time Dynamic ModelsGiersch, Herbert (ed.): Macroeconomic Policies for Growth and Stability.Heertje, Arnold (ed.): Schumpeter's Vision.Herder-Dorneich, Philipp; Sieben, Gunter und Thiemeyer, Theo (Hrsg.): Beitrdge zur GesundheitsÖkonomie.Herdzina, Klaus: Wirtschaftliches Wachstum, Strukturwandel und WettbewerbHowey, Richard S.: A Bibliography of General Histories of Economics 1692-1975Hutchison, T. W.: The Politics and Philosophy of Economics International Economic Policy Research.Judge, George G.; Hill, R. Carter; Griffiths, William; LÜtkepohl, Helmut and Lee, Tsoung-Chao: Introduction to the Theory and Practice of EconometricsKamien, Morton I. and Schwartz, Nancy L.: Market structure and innovationKornai, JÁnos and Martos, BÉla (eds.): Non-price controlLouven, Erhard : Technologietransfer und angepasste Technologien.Malliaris, A. G. and Brock, W. A.: Stochastic Methods in Economics and FinanceOchel, Wolfgang: Die Entwicklungsländer in der Weltwirtschaft.Panchamukhi, P. R.: Inequality in EducationPatinkin, Don: Essays on and in the Chicago TraditionPrais, S. J.: Productivity and Industrial Structure.Preston, A. J. and Pagan, A. R.: The Theory of Economic Policy.RomÁn, ZoltÁn : Productivity and Economic GrowthRÜrup, Bert und KÖrner, Heiko: Finanzwissenschaft.Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Ent-wicklung: Investieren für mehr Beschäftigung.Schenk, Karl-Ernst: Märkte, Hierarchien und Wettbewerb.Schenk, Karl-Ernst: ≪Institutional Choice〉 und OrdnungstheorieSchneider, Diethard: Monetäre Konzepte der Verstetigungspolitik.Schotter, Andrew: The Economic Theory of Social InstitutionsSchultz, Theodore W.: Investing in People.Shackleton, J. R. and Locksley, Gareth (eds.): Twelve Contemporary Economists.Shone, Ronald: Applications in Intermediate Microeconomics

Notes: ‘[The] power [to alter the quantity of money] should neither be entrusted to the state itself, nor to anybody in it; as there can be no security for the uniformity in the value of currency, when its augmentation or diminuation depends solely on the will of the issuers.’ David Ricardo [1816; in 1962, vol. 4, p. 691

Notes: Apps, Patricia: A theory of inequality and taxation, CambridgeDE Boer, Paul, M. C.: Price Effects in Input-Output RelationsCairncross, Frances (ed.): Changing Perceptions of Economic Policy.Caldwell, Bruce: Beyond Positivism.Copeland, Morris A.: Essays in Socioeconomic EvolutionEckstein, Otto: Core Inflation, Englewood Cliffs, N. J.Eliasson, Gunnar; Holmlund, Bertil and Stafford, Frank P. (eds.)Folkerts-Landau, David Fokke Ihno: Intertemporal planning, exchange, and macro-economicsHallwirth, Volker: Die Beschäftigung in Abhängigkeit von Preisen und Löhnen.Hartley, Keith and Tisdell, Clem: Micro-Economic PolicyHerman, Edward S.: Corporate Control, Corporate PowerVON Hippel, Eike: Der Schutz des SchwächerenKiluck, Tony (ed.): Adjustment and Financing in the Developing World.Kindleberger, Charles P. and Laffargue, Jean-Pierre (eds.): Financial crises.Kramer, Helmut und Butschek, Felix (Hrsg.): Entindustrialisierung?Lucas, Robert E.: Studies in Business-Cycle TheoryMcGuire, Chester C.: International Housing Policies.Menges, G.; Schelbert, H. und Zweifel, P. (Hrsg.): Stochastische Unschärfe in den WirtschaftswissenschaftenMettelsiefen, Bernd: Technischer Wandel und Beschäftigung.Munting, Roger: The Economic Development of the USSROlson, Robert K.: U. S. Foreign Policy and the New International Economic OrderPearce, D. W. and Nash, C. A.: The Social Appraisal of Projects.Rothschild, Kurt W.: Einführung in die UngleichgewichtstheorieSingh, Paramanand: Financing of University EducationTisdell, C. A.: Microeconomics of MarketsYuill, Douglas; Allen, Kevin und Hull, Christopher (Hrsg.): Regionale Wirtschaftsfürderung in der EG

Notes: The law shifts the risks borne by individuals in society and thereby influences the allocation of resources in society, the distribution of income and economic growth. Consequences for economic efficiency of the legal sanctioning of risk spillovers or externalities are analysed using the Kaldor-Hicks criterion. Examples are given in which the law encourages excessive risk-taking from a social point of view along with a few cases in which it leads to an excessive reduction in risk-taking. It is observed that the legal practice of compensating for actual damages sustained, rather than for the risk or possibility of damage, is least costly to parties creating the risk. Product liability is discussed. It is argued that the distribution of income rather than gains in economic efficiency provides the main rationale for strict product liability.

Notes: It has often been maintained that political democracy has a negative impact on economic growth, particularly in less developed countries. Here, cross-national regressions of two different growth variables on political democracy and on control variables, based on about 90 nations, are reported for the 1960 to 1979 period. Control variables include GNP per capita, gross domestic investment, school enrollment ratios, and sometimes the military participation ratio. While first results seem to support the notion of a negative growth effect of democracy, closer scrutiny reveals that this effect is no longer significant once the analysis is restricted to (more than 70) LDCs only. While a fairly strong and negative impact of democracy on growth can be demonstrated for nations where government revenue exceeds 20|X% of GDP, elsewhere there is no effect at all. It is not democracy itself that hurts the growth prospects of nations, but the combination of democracy and strong state interference with the economy.

Notes: Anson-Meyer, Monique: Friedrich List.Beaugrand, Philippe: Henry Thornton: un précurseur de J. M. KeynesBoland, Lawrence A.: The Foundations of Economic MethodCarter, Charles(ed.): Industrial Policy and InnovationDosser, Douglas; Gowland, David and Hartley, Keith (eds.): The Collaboration of Nations.Feiwell, George (ed.): Samuelson and Neo-Classical EconomicsFuchs, Victor R. (ed.): Economic Aspects of HealthGreenwald, Douglas (ed.): Encyclopedia of EconomicsHicks, John: Wealth and WelfareJarchow, Hans-Joachim und RÜhmann Peter: Monetäre Aussenwirtschaft I. Monetäre AussenwirtschaftstheorieLahiri, Kajal: The Econometrics of Inflationary ExpectationsLuther, Hans Ulrich: Südkorea: (K)ein Modell für die Dritte Welt?Matzner, Egon: Der Wohlfahrtsstaat von morgen.McAuley, Alastair: Women's Work and Wages in the Soviet UnionNeumark, Fritz (Hrsg.): Studien zur Entwicklungder ökonomischenTheorie INutzinger, Hans G. (Hrsg.): Mitbestimmung und Arbeiterselbstverwaltung.Ötsch, Walter: Arbeitslosigkeit und Information. Ein Beitrag zur Kritik der neoklassischen Theorie der ArbeitslosigkeitRinger, Karlernst; VON Renesse, Ernst-Albrecht und Uhlig, Christian (Hrsg.): Perspektiven der EntwicklungspolitikRosen, Sherwin (ed.): Studies in Labor MarketsRÜbel, Gerhard: Devisenmarktoperationen bei flexiblen Wechselkursen.Salvatore, Dominick: Statistics and Econometrics, including 640 solved ProblemsScazzieri, Roberto: Efficienza produttiva e livelli di attività.Schicke, Romuald K.: Ökonomie des GesundheitswesensSommer, Manfred: System Dynamics und Makroökonometrie.Theil, Henri; Suhm, Frederick E. and Meisner, James F.: International Consumption Comparisons.Tobin, James: Essays in Economics.Vanberg, Viktor: Markt und Organisation.Wegner, Eckhard: Die personelle Verteilung der Arbeitseinkommen.Wicke, Lutz: Umweltökonomie.Wilson, George W.: Inflation: Causes, Consequences, and Cures

Notes: The possibilities of deviating from the natural rate of output in an open economy are analyzed. It is shown that output can be pegged for some time above the natural rate even under perfect foresight in such an economy. But this results in continuously improving terms-of-trade. In an open economy these terms-of-trade changes - rather than rational expectations per se - are the main constraint on employment policies. The natural-rate hypothesis implies a trade-off between the level of output and the rate of change of the trade balance. This trade-off can be avoided temporarely only by letting government expenditure crowd out private expenditure.

Notes: This article seeks to help resolve the serious theoretical controversy about the contribution of international trade to economic development by constructing a simultaneous-equations model that captures the most important quantitative aspects of the relationship between trade and development, and testing it by pooling data for 52 nations (representing all of the developing nations for which the required data are available) from 1961 to the present. The model is estimated by Full Information Maximum Likelihood, validated by dynamic simulation and utilized for policy and other counterfactual simulations. By the use of dummy variables and Chow tests, shifts of the structural relationships and slope coefficients over time are also tested for. The study finds strong empirical support for trade being very important for development, but to be more in the nature of a handmaiden than of an engine of growth.

Notes: The author considers the vexed question of whether it is meaningful, or logically consistent, to assume different savings propensities for profits and wages, independently of whether the savers are capitalists or workers. The author claims, however, that the analytical issues must be clarified first of all. Therefore he explores the conditions of existence of a two-class (capitalists and workers) economy when the rate of interest i is lower than (or at most equal to) the rate of profit r, and the savings function is expressed in the general form: S = sww+ swcPw+ ScPc It is shown that, at one extreme, when Swc= Se, the savings function reduces to the one originally used by Kaldor, and, if also i = r, no equilibrium path exists. At the other extreme, when Swc= Sww, the savings function reduces to the one originally used by Pasinetti and the range of existence of a two-class economy is maximum. In between the two extremes, ranges of existence are defined in terms of inequalities involving the parameters of the system.

Notes: It has become customary to dichotomize research results in functional income distribution in terms of neo-classical vs. neo-Keynesian theories with appropriate footnotes referring to fringe theories and distinguished predecessors. In this note the latter set is enlarged! Erik Lindahl's masterly contribution to this subject is presented in a generalized version of a Kaldor-Pasinetti model. In Penning Politikens Medel (1930) Lindahl poses the question of how savings will be adjusted to equilibrium with a higher level of investment which, in turn, has been caused by a lowering of the rate of interest. The equilibrium level is attained, in a characteristically Kaldor-Pasinetti way, by a redistribution of incomes.

Notes: Books reviewed in this article.Bender, Dieter et al.: Vahlens Kompendium der Wirtschaftstheorie und Wirtschaftspolitik.Betancourt, Roger R. and Clague, Christopher K.: Capital Utilization.Blankart, Charles Beat und Faber, Monika (Hrsg.): Regulierung öffentlicher Unternehmen.Brune, Heinrich-Gustav : Organisation von Verbraucherinteressen.Charatsis, E. G. (Ed.): Proceedings of the Econometric Society European Meeting 1979.Cooper, Charles : Economic Evaluation and the Environment.Courbis, Raymond (Éd.): Commerce international et modèles multinationaux.Diebold, William Jr.: Industrial Policy as an International Issue.Ekelund, Robert B. Jr. and Tollison, Robert D.: Mercantilism As a Rent-Seeking Society: Economic Regulations in Historical Perspective.Ferber, Robert and Hirsch, Werner Z.: Social Experimentation and Economic Policy.Fisher, Anthony C.: Resource and Environmental Economics.Gottwald, Dietrich: Die dynamische Theorie der Allokation erschöpfbarer Ressourcen.Griffith-Jones, Stephany: The Role of Finance in the Transition to Socialism.GrÜnÄrml, Frohmund: Multinationale Unternehmen, internationaler Handel und monetäre Stabilität.Hudson, John : Inflation.Hueting, Roefie : New Scarcity and Economic Growth.Kornai, JÁnos: Economics of Shortage.Krämer, W.: Eine Rehabilitation der gewöhnlichen Kleinst-Quadrate-Methode als Schätzverfahren in der Ökonometrie.Krohn, Claus-Dieter: Wirtschaftstheorien als politische Interessen.Llewellyn, David T.: International Financial Integration.Minx, Eckard : Von der Liberalisierungs- zur Wettbewerbspolitik.Mooslechner, Peter und Nowotny, Ewald: Gesamtwirtschaftliche Finanzierung und öffentliche Verschuldung.Moss, Scott : An Economic Theory of Business Strategy.Newbery, David M. G. and Stiglitz, Joseph E.: The Theory of Commodity Price Stabilization.Ryll, Edwin: Abschöpfungssystem, Angebotskontingentierung, produktneutrale und produktgebundene staatliche Einkommensübertragungen als agrarmarktpolitische Instrumente.Sauernheimer, Karlhans: Internationale Kapitalbewegungen, flexible Wechselkurse und gesamtwirtschaftliches Gleichgewicht.Shelp, Ronald Kent : Beyond Industrialization.Sid-Ahmed, Abdelkader : Nord-Sud: Les enjeux.Siebert, Horst:. Economics of the Environment.Slawson, W. David : The New Inflation.Stahl, Konrad und Sghulz, Norbert: Mathematische Optimierung und mikroökonomische Theorie.Thimm, Alfred L.: The False Promise of Codetermination.Witt, Ulrich: Marktprozesse.

Notes: This article critically reviews the development and present state of information theory in labor markets. Since the first generation of the new microeconomics, important progress has been made. However, a compact theory including both the various forms of information problems and the associated behavioral reactions still does not exist. Much work remains to be done in order to achieve a general and comprehensive foundation of macroeconomics. Moreover, application of such models to reality is not possible because there are no conclusive empirical tests. The strict neoclassical approach used in these models must be regarded as their principle weakness. The more reality differs from neoclassical assumptions, the more important is the — complementary — macro foundation of micro economics. This should include the analysis of collective decisions on the macro level and their effect on the individual market participant. Finally, some recent empirical and theoretical ideas are presented.

Notes: This paper is intended to highlight the role of cost increases in the inflation process. In the course of the analysis a distinction is made between three different types of cost inflation: (i) exogenous cost impulses; (ii) competing income claims, both by way of bargaining in markets and by competition in the political arena; and (iii) attempts to preserve the purchasing power of income. Each category is discussed in some detail. The paper also discusses alternative methods of fighting cost inflation, including some issues pertaining to cost-accommodating demand management and incomes policy.

Notes: According to Kondratiefflong term economic growth in industrialized countries is characterized by a 40- to 60-years-long cycle. The existence of this cycle is much debated. This article presents a spectral analytic test of the long cycle on the basis of price and volume series for Great Britain, France, Germany and the United States. In addition, long cyclical relations between prices and production and the relations between these variables internationally are analyzed by means of cross spectral analysis. The results of these analyses seem to confirm the existence of a Kondratieff-cycle in prices, but contradict the existence of a (simultaneous) long cycle in real variables.

Notes: This paper is an empirical investigation of the hypothesis that there exists a positive relationship between the inflation rate and its variability. The hypothesis is tested for a sample of eighteen industrial countries for the period 1949-1970. In contrast to most previous studies, policy makers are allowed to revise their desired inflation rate by calculating a six-year moving average. The homogeniety assumption across countries is relaxed and the relationship between the average inflation rate and its variability over time is examined within each country. In addition, the argument that government financial policy is responsible for the variability of the inflation rate is reexamined in the context of a fixed-exchange-rate open economy; an alternative source of inflation variability is proposed-international inflation. A procedure that separates out the influence of the world inflation rate is developed and the relationship between the average inflation rate and its measure of variability attributable to domestic government financial policy is examined. The findings of this study provide less pervasive support than previous studies of the existence of a positive relationships between the inflation rate and its variability. Moreover, the positive causality uncovered might be due more to international inflation than to the actions of domestic financial authorities.

Notes: The life cycle hypothesis of consumption and rational (in the sense of Muth) expectations implies under certain additional, but not very restrictive, assumptions that real consumption follows an univariate first order autoregressive process. This implication was tested in the framework of bivariate autoregressive models with Swiss quarterly macroeconomic data. A slightly modified variant of the stepwise modelling approach suggested by Hsiao was applied. The hypothesis was rejected with respect to a ‘Neo-Ricardian’ definition of disposable income and real stock prices. By contrast, the test with the conventional definition of disposable income brought not significant results. These findings rise some doubts about the usual specification of macroeconometric consumption functions and their policy implications.