More is More: Some Economics of Distinctively-Named White Kids

Using data covering every child born in California from 1961 to 2000, Fryer and Levitt (2004) find that in the 1960s, the differences in name choices by blacks and whites were relatively small, but that a profound shift began among blacks in the mid-1970s toward more distinctively black names, especially among blacks in racially isolated neighborhoods. As an extension of Fryer and Levitt (2004), this study uses data on the names of about 1,300 white children born over the four-year period from 1997 to 2000 and living in a segment of a Metropolitan Statistical Area in the Deep South, and finds that use of combination first names—largely based on combinations of single names included among the names of high-end white children from Fryer and Levitt (2004) and Levitt and Dubner (2005)—is significantly more prevalent among high-end white children than it is among low-end white children. Unlike the data described in Fryer and Levitt (2004), which support an Identity Model wherein distinctively black names result from the Black Power movement that encouraged blacks to “accentuate and affirm black culture and fight the claims of black inferiority,” the present study suggests that high-end parents may use the combination first name convention to increase the likelihood of the child’s future success in various partnership markets, such as dating, marriage and business-partnership markets.     

The impact of black mayors on the black community: The case of New Orleans’ ernest morial

Conclusion Dutch Morial is deeply respected by the New Orleans black community. According to a poll conducted in April 1983 by Rose-Stekler Associates, 80% of the black respondents gave Morial “excellent” or “good” job ratings, compared to only 11% who found him doing a “fair” or “poor” job. Despite very limited resourses, the Morial mayoralty has facilitated the entrance of the black middle class into the governmental process, providing access to city contracts and administrative positions. On the other hand, the black underclass has received meager rewards in the form of employment or a reduction in police brutality. Hopefully, economic development, in the long-run, will create jobs and provide additional city revenue to fund services for the poor. But for now, the primary impact of a black mayor on the black community of New Orleans has been symbolic kinds of benefits. Yet the potential positive benefits of a black mayor serving as a role model for black youth, as well as the value of civil rights rhetoric in fostering hopefulness and a more self-reliant black community, should not be underestimated. The characterization of the status of the civil rights movement in 1983 offered by C. T. Vivian, head of the Anti-Klan Network, well applies to New Orleans black community today: “Everything has changed and nothing has changed. The statistics are still terrible. But the atmosphere is totally different.”⁴⁹     

Residential location and the earnings of African American women

In comparing the earnings of African American women to three reference groups—white women, African American men, and white men—three principal findings emerge. First, African American women residing in the suburbs are worse off than any other suburban group. Second, central city African American women are worse off than any other group of central city residents. Third, while central city residence imposes a statistically significant earnings penalty on men of both races, no such penalty is found for African American or white women. Therefore, African American women will enjoy no earnings advantage if they move to the suburbs. This finding underscores the importance of including women in studies of residential location and the socioeconomic status of African Americans. A narrow focus on male data to inform policy is clearly insufficient.     

Entrepreneurship and intra-industry trade

Entrepreneurship and Intra-Industry Trade. — The paper introduces entrepreneurs into the theories of intra-industry trade and investigates the role of a country ’s “entrepreneurship” in international trade. It is shown that therelative entrepreneurship between countries determines the terms of trade but the welfare effects are not obvious. Among other things, it is found that (1) an increase in exports improves the terms of trade and (2) an increase in country size is not always beneficial.     

Political economy of rent-seeking under alternative trade regimes

Zusammenfassung Die politische ?konomie des “Rent-seeking” unter alternativen Au\enwirtschaftssystemen. — Mit Hilfe eines berechenbaren Modells des allgemeinen Gleichgewichts zeichnen die Autoren den Typ einer Volkswirtschaft, in dem pr?ferenzmaximierende (rationale) Produzentenhaushalte einen Teil ihres nominalen Einkommens für „rent-seeking”-Aktivit?ten (Bestechungen) aufwenden, um die Beh?rden bei der Wahl der exportf?rdernden Instrumente zu beeinflussen. Die Autoren benutzen Daten über die türkische Volkswirtschaft, um die Folgen alternativer Ma\nahmen einer au\enwirtschaftlichen Abschottung auf die „rent-seeking”-Aktivit?ten zu analysieren. Dabei stellt sich heraus, da\ die Instrumentenwahl der Beh?rden sowohl von den zugrundeliegenden Au\enwirtschaftssystemen als auch von den privaten “rent-seeking”-Aktivit?ten beeinflu\t wird und da\ das Ph?nomen des „rent-seeking” nicht notwendigerweise ein „geschlossenes” ?konomisches Umfeld verlangt, sondern auch mit den sogenannten „offenen” Strategien des exportinduzierten Wachstums verbunden werden kann.

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Résumé Economie politique de ?rent-seeking? sous des régimes de commerce alternatifs. — A l’aide d’un modèle computable de l’équilibre général, les auteurs décrivent un modèle d’une économie dans laquelle les ménages à entrepreneurs, maximisant leur préférence, donnent une partie de leurs revenus nominaux aux activités de ?rentseeking? (c’est-à-dire à la corruption) pour influencer le gouvernement qui doit choisir les instruments pour inciter l’exportation. En utilisant des données de l’économie turque, les auteurs analysent les conséquences des régimes de commerce alternatifs sur l’activité de?rent seeking?. Les auteurs trouvent que le choix du gouvernement parmi des instruments dépend de tous les deux, des régimes de commerce et des agents privés avec leurs activités de ?rent seeking?; et que le phénomène de?rent seeking? ne demande pas nécessairement un environment économique fermé, mais il peut être aussi associé avec des stratégies soi-disant ouvertes qui incitent un accroissement des exportations.

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Resumen La economia politicadel “rent-seeking” bajo regimenes de comercio alternativos. — Con la ayuda de un modelo de equilibrio general computado (CGE) se representa una economia arquetipo en la cual productores-hogares con maximización de preferencias asignan una proporción de sus ingresos nominales a actividades “rentseeking” (soborno) con el fin de influenciar políticamente la elección de instrumentos para incentivar las exportaciones por parte del gobierno. Utilizando datos sobre la economia turca se analizan las consecuencias de grados alternativos de apertura de la economia sobre la actividad de “rent-seeking”. Se encuentra que la elección de instrumentos del gobierno es sensible tanto al régimen comercial existente como a las actividades de “rent-seeking” por parte de los agentes privados, y que el fenómeno de “rentseeking” no necesariamente implica presiones en favor de una economia cerrada, sino que también se lo puede asociar con estrategias de crecimiento por exportaciones en el marco de un economía abierta.

     

Housing problems and prospects for blacks in Houston

Houston was considered the premier Sunbelt city in the 1970s. Much of the growth during this boom period was fueled by the oil industry. The city led the nation in new jobs created and housing starts. The economic growth, however, was not uniformly distributed to all segments of the population-specifically, a large segment of the black community was passed over during the city’s housing boom. Many of the housing problems facing black Houstonians can be traced to the city’s anti-public housing sentiment, policies that create and perpetuate racial segregation, and the dismantling of the fair housing enforcement mechanism. Housing discrimination, residential segregation, and other institutional barriers all limit the mobility options for a sizable segment of the black Houston community.     

Die volkswirtschaftlichen kosten des umweltschutzes

Summary The Economic Costs of Depollution — An enlarged Input-Output System. — The economic costs of depollution can be calculated by means of an input-output table to which a “pollution matrix” and a “depollution matrix” have been added, provided the tolerable amounts of pollution have been established. Two hypothetical cases are examined: (1) depollution is undertaken exclusively by the state; (2) the relevant production sections are responsible for 50 per cent of depollution (“causer principle”). If, in the two cases, the amounts of final consumption are the same, their values are “inflated” in the same degree by the depollution activities, i.e., by the economic costs of depollution. In both cases the costs are borne by the final consumer — in the first case, through taxation only; in the second, through taxation as well as higher prices. The real effect is a decrease in final provisions per capita of employed.

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Résumé Les co?ts économiques de la dépollution — Un système input-output élargi. — Les co?ts économiques de la dépollution peuvent être calculés au moyen d’un tableau d’input-output, auquel on a ajouté une ?matrice de pollution? et une ?matrice de dépollution?, si l’on a établi les quantités tolérables de pollution. Deux cas hypothétiques sont examinés: 1. la dépollution purement publique; 2. la dépollution réalisée en moitié par les secteurs de production responsables (principe de responsabilité). Si les quantités de consommation finale sont les mêmes dans ces deux cas, leur valeur est ?gonflée? au même degré par les mesures de dépollution, c’est à dire, par les co?ts économiques de la dépollution. Ces co?ts retombent sur le consommateur final: dans le premier cas, à travers l’imposition; dans le second, à travers l’imposition et une hausse des prix. L’effet réel en est une baisse de l’approvisionnement final par employé.

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Resumen Los costos sociales de protección contra la contaminación atmosférica. — Un sistema input-output ampliado. — Los costos sociales de medidas encaminadas a impedir la contaminación atmosférica pueden medirse en el marco de un sistema input-output ampliado por una ?matriz de contaminación? y una ?matriz de menos — abastecimiento?. Ademas se pueden fijar márgenes de tolerancia para la contaminación. El autor analiza dos casos hipotéticos: (1) La proteccion corre exclusivamente a cargo del Estado; (2) Los sectores de producción partitipan en un 50 por 100 en la eliminación de la contaminación. Siendo idéntico en ambos casos el consumo final cuantitativo, el valor del consumo final queda ?inflacionado? de acuerdo con los costos sociales de protección. El consumidor paga estos costos o bien a través de impuestos (1er caso), o bien a través de precios incrementados 2do caso). En términos reales, estos costos producen una reducción en el abastecimiento final por persona empleada.

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Riassunto I costi economici della difesa dell’ainbiente — Un allargato sistema input-output. — I. costi economici della difesa dell’ambiente possono essere accertati per mezzo di una allargata tabella input-output che includa una ?matrice di inquinamento? ed una ?di depurazione?, quando oltre a ciò sono fissate quantità di tolleranza degli inquinamenti. Due casi ipotetici sono esaminati: 1. difesa dell’ambiente condotta totalmente dallo Stato e 2. eliminazione del 50 per cento dell’inquinamento per mezzo dei settori di produzione (?principio di chi lo ha cagionato?). In consumo finale quantitativamente uguale, il valore del consumo finale in ambedue i casi viene ?gonfiato?, per mezzo della difesa attiva dell’ambiente, dello stesso importo, cioè dei costi economici della difesa dell’ambiente. Nel primo caso questi sono sostenuti soltanto per mezzo di imposte, nel secondo caso anche da prezzi aumentati del prodotto sostenuti dal consumatore finale. Realmente essi causano una diminuzione dell’approvigionamento finale per occupato.

     

Controversies on market failure in rewarding inventors

Conclusions A definite answer to the question of whether inventors are over-compensated cannot be attained within a model of an “ideal” market economy. Our analysis, however, yields informations about the conditions which determine an inventor's reward: When constant returns to scale are prevailing in the economy (models 2, 4), we can expect that compensations for inventions are effiecient or too small. Under decreasing returns (model 5), an inventor’s reward may be either too large or too small. But overcompensation — when it occurs — can never be larger than the sum of all producers’ surpulses (model 1). Thus, profits from inventions may be large, but not excessive.     

Labor market racial discrimination against black women

Conclusion The data we have reviewed describe black women as having achieved parity with white women and indicate that this conclusion is not seriously affected after controlling for the direct and indirect effects of differences in time worked. However, the economic position of black women is not uniform throughout the economy. Black women have advanced primarily in public sector jobs and these advances have been made primarily by the youngest cohorts. Progress in the private sector has been much slower. Claims that a “new labor market” exists for black women ought to be carefully qualified, for their progress is impressive primarily when they are compared to white women—another disadvantaged group. Both groups of women are falling farther behind men in terms of relative earnings.16 Furthermore, it may be quite erroneous to interpret small differences in earnings between black and white women as evidence that black women do not suffer racial discrimination, as the following example illustrates.     

Surplus people and expendable children: The structure of apartheid and the mortality crisis in South Africa

South Africa’s apartheid scheme is considered as a paradigm case for the creation and maltreatment of a putatively surplus population. Both active and passive policies are identified that are utilized to contain the numbers of the black population of the nation. Of particular significance is a strategy of neglect that has led to exceptionally high infant and child mortality rates in the “homelands.” In addition, the South African authorities’ efforts to destabilize neighboring regimes in Angola and Mozambique has had similarly adverse repercussions on mortality rates there.     

Do Investors Care if Steve Jobs is Healthy?

Steve Jobs of Apple, Inc., is one of the best known CEOs in the world, and some stock analysts have termed him “irreplaceable.” Using conventional event study methods, we test the magnitude of these announcements on Apple’s share price and its market capitalization. We focus upon nine “events” between 2004 and 2009 in which new information about Mr. Jobs’ health was flushed into the marketplace, on occasion by Apple itself, but more often by the commentary and speculations of media observers, stock analysts and bloggers. We find that the impact of these announcements upon Apple share prices is mixed, usually modest, and disappears over time. We conclude that Jobs’ health has an impact on Apple’s share price and market capitalization, but that impact is not always negative and not nearly as large as many observers apparently believe.     

A new look at the impact of U.S. import barriers on corporate profit expectations

A New Look at the Impact of U.S. Import Barriers on Corporate Profit Expectations. — The notion that industries benefit from protection is firmly grounded in trade theory. However, previous “event studies” measuring the impact of trade restrictions on stock prices reveal that shareholders expect no improvement in industry profits from protection. The implication is that barriers designed to promote industry adjustment are considered ineffective by equity holders. This investigation of U.S. “Escape Clause” cases shows that shareholders do expect protection to enhance profits, but not universally. Outcomes are linked to the type of trade measure selected, with industries protected by tariffs or global quotas faring better than those shielded by nonglobal “Orderly Marketing Agreements.”     

Economic and social conditions of blacks in New York during reconstruction

Summary At a time when, despite Affirmative Action Goals, we still have great difficulty in making employers accountable before the law for overt acts of discrimination, it is well to recall the doughty struggle of the state’s Blacks versus employers. At a time when health services for inner-city residents continue to be worse than provisions for other citizens, it is well to remember that even in the last century “the conditions of sickness and mortality” were “not the same for the white and for the colored races,” and destitution among Blacks in New York City accounted for some 37 percent of the illnesses among Blacks in that area. At a time when realtors and boards of education still effectively put up barriers to ordinary social relations between whites and Blacks it is well to remember that even after the passage of the Fourteenth Amendment Blacks were powerless to cause any major breach in public constraints to their mobility. Blacks have been powerless for a long time to make legislated freedom subserve their economic and social goals, and this is an important reminder to those who would reapply the methods of the past in attempts to fulfill today the normal economic expectations of citizens of the Republic.     

Exchange Rate Regimes and Reserve Policy: The Italian Lira, 1883–1911

The three exchange rate regimes adopted by Italy from 1883 up to the eve of World War I — the gold standard (1883–1893), floating rates (1894–1902), and “gold shadowing” (1903–1911)—produced a puzzling result: formal adherence to the gold standard ended in failure while shadowing the gold standard proved very successful. This paper discusses the main policies underlying Italy’s performance particularly focusing on the strategy of reserve accumulation. It presents a cointegration analysis identifying a distinct co-movement between exchange rate, reserves, and banknotes that holds over the three sub-periods of the sample. Given this long-run relationship, the different performance in each regime is explained by the diversity of policy measures, reflected in the different variables adjusting the system in the various regimes. Italy’s variegated experience during the gold standard provides a valuable lesson about current developments in the international scenario, showing the central role of fundamentals and consistent policies.     

“Partial” approaches to balance-of-payments adjustment yield consistent predictions under identical assumptions

Zusammenfassung “artial“-Ans?tze des Zahlungsbilanzausgleichs ergeben unter identischen Annahmen konsistente Aussagen. — Dieser Aufsatz zeigt, da\ Inkompatibilit?ten in den Grundannahmen die einzige Quelle für m?gliche Widersprüche in den Aussagen sind, die sich aus dem “onet?ren” Ansatz und dem “omponenten“-Ansatz des Zahlungsbilanzausgleichs ergeben. Zwei Modelle werden als Prototypen verwendet, um zu zeigen, da\ dann, wenn die den Modellen zugrundeliegenden Annahmen auch bei einem Wechsel in den Determinanten der Zahlungsbilanzstr?me unver?ndert beibehalten werden, die Aussagen vollkommen konsistent sind. Die Ergebnisse der Modelle werden hinsichtlich der Vorzeichen verglichen, die die Ansto\wirkungen verschiedener exogener Schocks auf die Zahlungsbilanz unter “onetaristischen” und “eynesianischen” Annahmen aufweisen.

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Résumé Les approches ?partielles? à l’ajustement de la balance des paiements produisent des prédictions consistantes sous des suppositions identiques. — Cet article souligne que l’incompatibilité des suppositions est la seule source pour des inconciliabilités possibles des prédictions qui résultent des approches ?monétaires? et des ?composantes? en matière de l’ajustement de la balance des paiements. L’auteur applique deux modèles de prototype pour démontrer qu’on obtient des prédictions parfaitement consistantes indépendamment du choix des déterminants directs, supposé que les suppositions sur le monde auquel le modèle se réfère restent intactes si l’on varie les déterminants directs des flux de la balance des paiements. Les prédictions des modèles introduits sont comparées à l’égard des signes des effets immédiats des différents chocs exogènes sur la balance des paiements sous des suppositions ?monétaristes? et ?keynésiennes?.

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Resumen Aproximaciones ?parciales? para predicciones consistentes de beneficios de ajuste de balanza de pagos bajo supuestos idénticos. — Este artículo individualiza incompatibilidades de supuestos subyacentes como la ünica fuente de posibles inconsistencias en las predicciones de aproximaciones ?monetarias? y de ?componentes? de ajustes de balanza de pagos. Se utilizan dos prototipos de modelos para demostrar que siempre que los supuestos acerca del mundo al que los modelos se aplican se mantienen intactes al cambiar entre sets de déterminantes próximas de flujos de balanza de pagos, se obtienen predicciones perfectamente consistentes irrespectivamente de la elección de las déterminantes próximas. Las predicciones de los modelos indicados se comparan bajo supuestos ?monetaristas? y ?keynesianos? en consideración de los signos de los efectos del impacto de variados choques exógenos sobre la balanza de pagos.

     

Entrepreneurship and corporate governance

Conclusions The main message of this article is that Austrians can continue to work within the contractual, or Coasian, approach to the firm in elaborating the insights discussed above. In particular, the problem of corporate governance, and the corollary view that firms are investments, belongs at the forefront of Austrian research on the theory of the firm. Emphasis should thus be placed on the plans and actions of the capitalist-entrepreneur. A particularly undeveloped area concerns the provision of capital to small, “entrepreneurial” ventures. Most of the literature on governance focuses on the large corporation, and the use of stock and bond markets to govern these organizations. Equally important, however, are smaller, privately held firms, financed with venture capital or other forms of investment. So far, the firm-as-investment literature has said little about these organizations, despite their growing importance, particularly in high-growth, technologically-advanced industries like software and biotechnology. Further research in this area is sorely needed. Earlier versions of this article were presented at George Mason University’s “Seminars in Austrian Economics IV: Inside the Black Box,” October 1997; the Austrian Scholars Conference 4, Auburn University, April 1998; and Copenhagen Business School’s RESPECT workshop, November 1998.     

Internationale Wettbewerbsfähigkeit — Fragmente zu einer Theorie internationaler Unternehmenstätigkeit

Summary International competitiveness — fragments of a theory on international entrepreneurial activity. — Contrary to the orthodox market conception — where firms’ decisions involve merely efficiency-oriented adaptation to ensure general equilibrium — a more pragmatic approach must take account of the endogenous character of market structures: The driving forces behind innovations — and hence “progress” — are the creation and exploitation of market imperfections by firms. As companies use their core skills worldwide, international competitiveness is determined on the firm level, thereby disposing of the traditional trade theory with its focus on the nation-state and a given endowment with ressources. “Creative destruction” must be viewed as an institutional change on a global basis, enterprises being the center pivot of dynamics in the course of which the means of internationalizing and internalizing business functions will differentiate more and more.

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Résumé Capacité de concurrence internationale: fragments d’une théorie de l’activité d’entreprise internationale. — Contrairement à la conception orthodoxe de marché — oú les décisions des entreprises consistent seulement d’adaptions orientées à l’efficience pour assurer l’équilibre général — une approche plus pragmatique doit considérer le caractére endogéne des structures de marché: la force motrice derriére les innovations et avec cela ?le progrés? sont la création et l’exploitation d’imperfections par des entreprises. Comme ceux-ci appliquent leurs connaissances essentielles universellement, la capacité de concurrence internationale est déterminée sur le niveau d’entreprise, ainsi disposant la théorie de commerce traditionnelle avec sa concentration sur l’état-nation et la dotation donnée en ressources. ?Destruction créative? doit être considérée comme un changement institutionnel de mesure universel oú les entreprises sont le pivot central d’un processus dynamique à la suite duquel les mesures d’internationaliser et d’internaliser les fonctions commerciales différencieront de plus en plus.

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Resumen Competencia international: elementos de una teoria sobre la actividad empresarial international. — Al contrario de la opinión ortodoxa sobre el mercado, donde las decisiones de los empresas implican simplemente una adaptatión de cara a la eficiencia para asegurar equilibrio general, un enfoque mas pragmático debe tener en cuenta el carácter endógeno de las estructuras de mercado: El motor detras de los innovaciones y por tanto del ?progreso? es la creation y explotaci?n por las empresas de imperfecciones en el mercado. Considerando que los empresas utilizan sus abilidades basicas en un contexte global, la competencia international se dètermina a nivel de empresa lo que permite prescindir de la teoria traditional del comercio internacional con su èmfasis en los conceptos de estado national y riqueza de recursos. ?Destruction creativa? debe ser observada como cambio institucional a nivel global, con las companias constituyendo el centro del proceso dinámico en el curso del cual los medios de internacionalizar e internalizar funciones empresariales darám origen a diferencias cada vez más grandes.

     

Performing New Orleans: Toward a Political Poetics

This essay documents an embodied model for doing scholarship in and about post-Katrina New Orleans. It suggests lived experience as human capital that provides a public good for rebuilding communities. Specifically, a research-based performance (“Performance and New Orleans: Citizenship, Identity and Housing”) serves as a case study for situating scholarship between theory and practice as a “political poetics.” The essay draws on performance theory and the values of public scholarship to negotiate the challenges of authenticity and motive that confront scholars working in New Orleans. The essay also argues for performance as a means of reaffirming human value and exposing the complexity that surrounds the problems of African American citizenship, identity, and housing in New Orleans 5 years after the storm.     

Using home-biased demand to test trade theories

Using Home-Biased Demand to Test Trade Theories. — This paper proposes a discriminating hypothesis that distinguishes between two paradigms of international trade: (1) constant returns and perfect competition (CRS-PC) and (2) increasing returns and monopolistic competition (IRS-MC). The discriminating hypothesis rests on the different degree of home bias among “consumers.” It predicts a positive relationship between a country’s share in world output and a country’s share in the world home-biased expenditure if the sector is IRS-MC and no relationship if the sector is CRS-PC. Accordingly, 7 sectors (covering 54.86 per cent of industrial output) of the eight countries under investigation were associated with the IRS-MC and 10 sectors (41.15 per cent) with the CRS-PC paradigm.     

Rural employment and rural-urban differences in employment in Zaire: A comparative perspective

This article provides evidence on the extent of de-agrarianization, the nature of rural employment, and rural-urban differences in employment in Zaire. The composition of employment by industry is examined using data from Zaire’s 1984 Census. Increased schooling was associated with a greater propensity to be involved in nonagricultural employment. Since 1990, Zaire’s chronic economic crisis has become acute and is intertwined with the political crisis resulting from President Mobutu’s resistance to popular calls for democratization. In these circumstances, de-agrarianization is effectively put on hold. Nonagricultural employment opportunities have diminished considerably, and an increasing proportion of the country’s population is being pushed back to subsistence agriculture. An earlier version of this article was presented at the African Studies Centre-International Labour Organization workshop on “De-agrarianization and Rural Employment,” May 10–12, 1994, Leiden, The Netherlands.