Observations on technical change and paretian welfare economics

Summary This article brings together two major topics of economic theory: technical change and Paretian welfare economics. Until now, the tendency has been to study these topics separately. By introducing economic search behaviour in the first phase of technical change, the analysis of technical change is broadened by means of a link between this behaviour and so-called virtual goods. The concept of Pareto optimality is broadened by expanding the space of goods with new and virtual goods. The question is whether the generalized Paretian theory makes it possible to compareex post equilibria after the process of technical change with theex post situation before this process takes place. Although generalized Pareto optimality does not allow a welfare judgement on aprocess of technical change, the theory still provides us with an explanation for the allocation of resources of R&D in terms of consumer preferences and with an analytical device to compare actual economic structures with a generalized Pareto optimum in a static setting.If they (i.e. economists) are to perform their guiding task as conscientiously as possible, it is first necessary that they themselves have proper insight into the regrettably narrow limits of what economics has to offer to politics in terms of purely economic criteria; secondly, that they are aware of the foundations and the substance of their additional sociopolitical valuations and finally, that they do not fail to make these known when advising society. (Hennipman, 1995, p. 174).This article is a condensed revised version of my Prof. dr Pieter Hennipman Lecture of February 23, 1993. Some time after the presentation of the lecture, I had the opportunity to discuss several issues with my beloved teacher. No doubt this version benefited from his comments. 1 A notable exception is K.J. Arrow (1962, pp. 210–228).     

Core authors and rankings in economics

This study ranks contributors to the economics profession using the textbook citation method. A survey of professors in 35 top-tier departments of economics produced a list of the most often used graduate-level microeconomics, macroeconomics, and econometrics texts. The textbooks identified from the survey are evaluated in this study for citations to journal articles. Authors of journal articles cited in textbooks are ranked according to the number of times their works are cited in textbooks. The results are compared to the findings of recent studies using different methods. Different methodologies are found to produce significantly different results.     

On economics and technical change

Summary The article is divided into four sections. The first consists of a review of a few main lines of Heertje's thoughts on the relation between economics and technical change. It appears that Dr. Heertje has chosen to write a basically non-mathematical book dealing with the history of technology, production theories and the significance of technical development for economic growth, monopoly power and economic policy. The general comments in the second section make it clear that his study is an excellent survey of the literature on the subject. It covers an overwhelmingly large number of topics and includes copious notes at the end. However, the author's assigned task of filling a gap in the literature for a varied audience of undergraduates, post-graduate students and working economists as well as those doing research in the field of technical development inevitably proved to be too difficult. It means that many conclusions have to be accepted at their face value. On the contrary, at the end of the second section of thepresent article a CS model is constructed that allows for a more exact analysis of the important question about the absorptive power of an economic system with regard to the consequences of labour-saving technological pushes. The third section deals more fully with the author's treatment of Von Böhm-Bawerk's roundabout production theory. Improvements are suggested in this section as well as in the concluding fourth section.Review of and comments on: Arnold Heertje, Economics and Technical Change, Weidenfeld and Nicolson, London, 1977. Pp. xii + 334.     

The economics of socialism as economics of shortage. A critical review

Summary The article is an extended review of J. Kornai’sEconomics of Shortage. Salient feature of this book is a behavioural in place of a decision-theoretic approach to socialist economies. The article discusses central concepts of Kornai’s analysis as hard and soft budget constraints, shortage and slack, taut plans, sellers’ markets. The main hypothesis says that the achievements of socialism, work guarantee and redistribution, bring about soft budget constraints and thus cause shortage. It is argued, however, that existing socialist systems have ample leeway for economic reforms. Review article of J. Kornai, Economics of Shortage, Vol. I and II, North-Holland Publishing Company, Amsterdam and New York, 1980. Pp. XVII + 650. 2-Volume Set Dfl. 170,-.     

Landowners and tenants in Norway

Abstract

During the past two decades Norwegian historical research has to a considerable extent been concentrated on problems connected with the peculiar nature of the distribution of landownership in Norway before 1661, in which year the king of Denmark and Norway embarked upon a large-scale selling of Crown lands and secularised ecclesiastical estates. The results of the investigations so far carried out have for the most part been published only in parish or other local histories or in short articles in Norwegian periodicals, especially in Heimen, the organ of Norwegian local historians. It is only quite recently that a more comprehensive work has been published in this field, Halvard Bjørkvik's Jordeige og jordleige i Ryfylke i eldre tid.¹ In the present article I propose first to review this book and then to supplement it with a survey of the results of earlier research.     

Gender earnings differentials in Taiwan: A stochastic frontier approach

We examine Taiwan's male–female earnings gaps over the past three decades in order to assess the progress in assimilating women into the labor market. Two alternative methods of evaluating earnings gaps are employed in this paper: the traditional Oaxaca–Blinder decomposition method and the less well-known method of evaluating labor market efficiency. Men and women's earnings are converging during this period (1978–2003) while at the same time there is little change in the level of gender discrimination measured by the standard Oaxaca–Blinder method. Using the labor market efficiency (stochastic frontier) model we find increases in labor market efficiency over time for both males and females; however, females enjoy a much faster rate of increase in efficiency. We conclude that the relative increase in female efficiency represents a decline in discrimination against females.     

Interdisciplinary economics

Summary Starting from Robbins and Hennipman and with the help of Becker and Lindenberg a theoretical framework has been constructed within which the strong points of economics and sociology are combined,viz,. the formal but relatively bare-bones modelling of economics and the often so much richer, in terms of social content, analysis of sociology. This theoretical framework also appears to enable more balanced analyses of the effectiveness and efficiency of legislation and regulation than the kind of law and economics so much in fashion at the moment, which is often not devoid of economism and in whichhomo econornicus still all too often figures as the prototype of man.(Economic Institute/Centre for Interdisciplinary Research on Labour Market and Distribution Issues (CIAV)); Associate of The Netherlands Interdisciplinary Demographic Institute (NIDI) in The Hague and the Interuniversity Center for Social Science Theory and Methodology (ICS). This article is an adapted version of my inaugural lecture.     

A formal treatment of threats: A note on the economics of deterrence

Summary To discuss and clarify a theory of deterrence this article focusses on military and economic inputs of the international exchange system and uses traditional microeconomic tools. It acknowledges the stochastic character of international threat situations and the influence of the attitude towards risk. The results of this approach suggest that the impact of neither economic and military deterrents nor unconditional rewards can be established apriori and, consequently, stress the importance of minimizing the potential yield of international misconduct and the use of positive sanctions (conditional rewards) as instruments to contain undesirable behaviour amongst nations.This article communicates the opinion of the author. The views expressed herein are not necessarily shared by my employer. Comments by Jan Veenbergen, Erick Schut, Igor Kaa, Kees Eitjes, Marko Bos and two referees of this journal were very helpful. A.R. Hof made suggestions on improving my language. Any errors are mine.     

Black Real Estate Professionals’ Perceptions of Career Opportunities: The Economic Detour Redux

This article focuses on black professionals’ perceptions of career opportunities in the real estate industry and discrimination in housing markets. The analysis is based on a national survey of black real estate professionals administered between July and December of 2009. Findings from the article suggest that black real estate professionals adopt a business strategy scholars have referred to as the economic detour. Following this strategy, their business activities focus on a niche market confined to residential real estate transaction with black clientele in relatively segregated neighborhood contexts. The findings from this analysis suggest that this focus has emerged in response to perceptions of institutional discrimination that closes opportunities to black professionals in the broader real estate industry. Recommendations are made to address economic barriers faced by black professionals.     

The ecology of a black business district

Conclusion A number of issues have been discussed thus far in this article, involving the initial development, persistence, and the most recent decline of the BBD in Birmingham. A brief summary of the major points emphasized in previous sections is in order. First, the ecological development of the BBD in Birmingham is somewhat similar to the pattern identified for BBDs in other southern cities. The location of black businesses moved from a pattern of dispersion to contiguous concentration in the CBD. The transitional nature of black-white relations in the first two decades subsequent to the ending of the Civil War; the founding and growth of Birmingham during this period; and the economic requirements for a choice location in the CBD for (black and white) consumer accessibility were probably important factors that influenced the pattern of dispersion of black businesses in the CBD prior to around 1895. On the other hand, the commercial and industrial growth of Birmingham, accompanied by an expansion of white businesses in the CBD and the small capital investment and annual sales volume of black businesses rendered them ineffectual in their ability to compete with whites. The restrictions placed on Blacks in terms of the types of businesses they were permitted to operate and where they could be located and the creation of a dual market for the patronage of black consumers (because of the establishment of Jim Crow laws and selective discrimination) were probably the most significant factors that influenced a shift from a pattern of dispersion to one of contiguous concentration during the first decades of the twentieth century.     

Hennipman on economic policy and welfare economics

Summary In the article attention is paid to a volume of reprints, in which Professor Hennipman unravels many problems on the boundary lines of economic policy, welfare economics and the theory of public finance. This appears to be one of the few subjects in economics where deductive and qualitative reasoning can still do the job alone, because the aim is refinement of thinking. The sharpening of mind on these issues can be helpful in finding the way in which economic theory can be useful to economic policy.P. Hennipman,Welvaartstheorie en economische politiek, edited by J. van den Doel and A. Heertje, Samsom Uitgeverij, Alphen aan den Rijn/Brussel, 1978.     

Race and prosecution expenditures

There has been a steady accumulation of literature on racial differentials in crime and the response of the criminal justice system. A neglected component of societal response to crime has been the volume of prosecution expenditures. This article seeks to repair this neglect by examining state level difference inper capita prosecution expenditures in 1980 using a multiple regression equation. The results show that, holding other factors constant, lower prosecution expenditures are associated with higher percentages of blacks in a state’s population. The relationship of this to discrimination is discussed in terms of England.     

Selling news and advertising space: The economics of Dutch newspapers

Summary This article presents an analysis of developments over the period 1968–1991 on both the reader and advertising markets of Dutch newspapers. We are interested in the characteristics of both markets and in the interactions between the two markets. Our analysis shows that newspaper revenue is mainly influenced by macroeconomic developments. A negative influence of TV advertising on revenue from the advertising market exists, but is fairly limited. The newspaper industry as a whole seems to be able to deal with these threats to their revenue by raising the real prices they charge for their products.The authors wish to thank Frank den Butter and anonymous referees for their comments on a previous version of this article.     

Job Satisfaction in the United States: Are Blacks Still More Satisfied?

Despite the substantial literature on the paradox of the happy female worker, research has been sparse in investigating race differences in job satisfaction. The last national level study on racial differences in job satisfaction was done in 1981 when, using national level U.S. data from the National Longitudinal Surveys of Mature Men for 1966, 1969 and 1971, Bartel showed that blacks had significantly more job satisfaction and further, that this racial gap had widened during this time. Though the reasons for this gap and its widening were not investigated, it was suggested, in a close parallel to the reason for the contented female worker, that lower expectations, in this case due to discrimination in the labor market, could be a reasonable explanation. Surprisingly, since then, there have been only a handful of studies focused on smaller, specific groups. This paper exploits two U.S. national level data sets, the GSS and the NLSY 1997, to examine the racial gap in job satisfaction. Simple means show that blacks are much less satisfied than whites and moreover, this difference has persisted not only across genders but also across almost four decades. To isolate the pure race effect, a sequential process is adopted by first examining the simple difference in the means of job satisfaction, then, through probit estimation, seeing the impact of individual attributes, finally progressing to incorporation of job attributes. Probit estimates give robust results. Blacks are significantly less satisfied than whites even when income, benefits and occupations are controlled. However, this racial gap is greater in the case of women and younger black men. An exploratory analysis shows that when discrimination is accounted for, the satisfaction gap is further reduced and the race coefficients are rendered insignificant. Estimates with comparison income show that the satisfaction gap is driven by perceived discrimination and not necessarily discrimination as captured by comparison income. This highlights the importance of policy measures to reduce perceptual discrimination.     

John Butterworth's pioneering contributions to the accounting and information economics literature

Abstract. This article reviews John Butterworth's significant contributions to the accounting and information economics literature. Some of the reviewed work is unpublished and is first exposed in this paper. I describe the general nature of John's diversified contributions and focus on some theoretical components of his work. Résumé. Cet article fait la revue des contributions importantes de John Butterworth à la littérature dans les domaines de la comptabilité et des systèmes d'information. Certains des travaux révisés n'ont pas été publiés et sont dévoilés pour la première fois dans cet exposé. Je décris de façon générale les contributions diversifiées de John en me concentrant sur quelques-unes des composantes théoriques de ses travaux.     

Using ESPN 30 for 30 to teach economics

Education in economics has trended away from “chalk and talk” toward alternative pedagogical approaches in recent years. This article documents one such approach used to illustrate economic concepts, the use of film clips from ESPN 30 for 30. This series can be used to augment traditional principles' classes or as real world examples of concepts discussed in upper division economic courses. The ESPN 30 for 30 film series merges three different areas of interests: film, sports, and history. Through these diverse spectrums, ESPN 30 for 30 films provides instructors with another resource to use in classrooms and creates an environment that facilitates active learning activities.     

围绕对华贸易政策的美国党派斗争

这一研究揭示:围绕着支持对华贸易和限制对华贸易的斗争,美国两党的意识形态对立。这一对立在罗斯福新政以后形成,反映着工商界与劳工界的利益冲突。共和党的社会文化保守主义相结合的新贸易自由主义与民主党的社会文化自由主义相结合的新贸易保护主义的党派对立具有一贯性。     

The theory of bank redlining and discrimination: An exploration

This article addresses a gap in the economic literature on race and credit markets: the theoretical basis of lending discrimination and redlining. It provides a unified model for exploring why discrimination and redlining exist in credit markets. This model is first used to examine three explanations offered by other authors—bigotry, differential risk, and market segmentation. The article then suggests several new explanations of race effects. These emphasize the interlinkage between labor and credit markets; market spillovers due to housing liquidity, refurbishment, and branch location effects; and strategic interaction among lenders.     

Extracting economics from Roman marble quarries†

Urbanization across the Roman Empire created a demand for building materials on an unprecedented scale. Quarrying was largely conducted by municipalities, institutions, or landed aristocrats, who owned or inherited the valuable land from which stone was extracted. By using principles of economics as a guide, and with greater coordination between theory and written and archaeological sources, this article examines the decision‐making processes involved in opening a quarry. Theories of economic rationality, resource economics, and statistical methods are helpful for understanding the prices for marble recorded in Diocletian's Edict, Roman jurists’ writings about exploitation on private land, and newly discovered quarries in the region of Aphrodisias, Turkey. Here it is argued that the exchange of local building stone took place in a competitive market where landowners actively tried to improve their financial situation, but did so at considerable risk. At Aphrodisias, examples of failed attempts exist alongside long‐running and successful enterprises. Entrepreneurs there did not extract a homogeneous set of resources, but chose to target marbles with inconsistent physical properties at increasing distances from the city in response to greater demand and rising prices. Roman jurists, primarily interested in protecting property value, made landowners calculate whether potential profits earned from sales outweighed the degradation of land.     

A framework for undergraduate research in economics

The purpose of this article is to propose a framework to facilitate the achievement of greater economies of scope in economics research and undergraduate teaching. A four‐year research plan is proposed, followed by discussion of practical strategies for overcoming barriers to undergraduate research in economics. Emphasis is placed on (i) bringing undergraduates into research programs as soon as the first semester and (ii) encouraging and incentivizing faculty members to participate in undergraduate research initiatives.