Economists' Opinions of Economists' Work

A bstract .   Economists' credibility has been waning in recent years. Critics usually cite the profession's preoccupation with abstract reasoning and its focus on seemingly irrelevant topics that hold little interest for individuals outside the discipline. While economic science has enormous potential for improving living standards, the profession's adverse reputation is indicative of a discipline seemingly void of any social contribution. This article presents the results of a recently conducted survey of professional economists. The survey was undertaken to ascertain economists' opinions of their own professional work, including the progress of economic research, its usefulness for society, and factors that determine the publication of that research.     

Short-Sale Restrictions and Price Clustering: Evidence from SEC Rule 201

We provide a novel test of information-based theories of price clustering by examining trade, order, and the National Best Bid and Offer (NBBO) quote price clustering during periods when information is removed from the market. We use a natural experiment of short-sale restrictions resulting from Securities and Exchange Commission (SEC) Rule 201 to more effectively determine the impact of information on price clustering. We find evidence of increased price clustering for trades, orders, and NBBO prices during short-sale restrictions. Overall, our findings indicate that short-sale restrictions harm the price discovery process and lead to a reduction in market efficiency.     

Ready or Not? Homosexuality,Unit Cohesion,and Military Readiness

The U.S. military argues that homosexuals are unfit for service because their presence compromises military readiness and unit cohesion. Based on this assumption, it continues to discharge homosexuals at an average rate of approximately 925 per year. On the other hand, the extant research suggests that homosexuals are no more disruptive to military life than their heterosexual counterparts. By integrating the legal and scientific literature, this paper examines the soundness of the military’s assumptions and aims to improve our understanding of the issues involved. Within this context, the efficacy of the military’s “Don’t Ask, Don’t Tell, Don’t Pursue” policy and whether it is in the best interest of the military and its soldiers and sailors is discussed.

Effects of demographic,experiential, and attitudinal factors on occupational sex stereotypes

The purpose of this study was to (a) compare the occupational sex stereotypes of 366 college students with those reported by Shinar in 1975, and (b) examine the relationships between demographic, experiential, and attitudinal variables and these occupational sex stereotypes. The results indicated a significant difference in occupational ratings from Shinar's study, with females' perceptions shifting more than males' perceptions. In addition, subjects' gender, tenure with female managers, and attitudes toward women as managers, were shown to be significant predictors of occuptational ratings. The implications of these findings for both employees and managers are then discussed.     

Legalization of drugs: Effects on the workplace

In the last few years bipartisan support for legalizing drugs has grown to a surprising level. Because of the lack of involvement of the business community in this debate, we surveyed the human resource managers of 127 firms about their perceptions of the effects of legalization. Their responses were uniformly negative, with expectations that drug use, absenteeism, worksite crime, and liability costs would increase, while the quality and quantity of work would decline. They also forecast increases in drug testing, performance monitoring, and education and rehabilitation programs as a result.     

Cost Structures and Nash Play in Repeated Cournot Games

This paper reports an experiment designed to assess the effects of a rotation in the marginal cost curve on convergence in a repeated Cournot triopoly. Increasing the cost curve's slope both reduces the serially-undominated set to the Nash prediction, and increases the peakedness of earnings. We observe higher rates of Nash equilibrium play in the design with the steeper marginal cost schedule, but only when participants are also rematched after each decision. Examination of response patterns suggests that the treatment with a steeper marginal cost curve and with a re-matching of participants across periods induces the selection of Nash Consistent responses.     

The Lifetime Distributional Impact of Government Health Outlays

This article examines the lifetime redistributive impact of government health outlays and finds that such outlays redistribute income from the lifetime rich to the lifetime poor and from men to women.     

Minority banks and minority communities: Are minority banks good neighbors?

The lagging development of many minority communities has had an adverse effect on economic growth in the United States. One factor historically associated with creating or exacerbating this minority problem is the unwillingness of banks to service minority communities adequately. The federal government used two initiatives to address banks' reluctance to aid minorities: the Community Reinvestment Act (CRA) that ended the practice of redlining and required all federally regulated banks to demonstrate that they served the convenience and credit needs of their local communities, particularly minorities, women, and other underserved groups, and the establishment and preservation of minority owned banks that were expected to be more sympathetic to the needs of their communities. This paper evaluates the extent to which minority banks have met the needs of minority communities. The assessment is conducted in the context of the ratings received by minority banks on their Community Reinvestment Act (CRA) audits. Through the use of CRA audits, the performance of minority banks is also compared to the performance of the general banking community to determine the validity and success of the government's minority banking initiative. Analysis of CRA audit ratings also compares the performance of minority banks among different ethnicities.