Sub-optimal saving and the shadow price of labor The public good argument

One argument for the incorporation of a ‘premium on saving’ into calculations of the shadow price of labor has been the claim that aggregate inter-generational savings are a public good and the individual savings decisions lead to sub-optimal provision of savings. This paper shows that even if this claim was true, the incorporation of a ‘premium on savings’ into benefit-cost analysis calculations would be inappropriate. The shadow price of labor relative to project output shoud still be set at the relative effects on aggregate income of hiring a worker on the one hand and producing output on the other.     

The Effectiveness of Tax-Expenditure Limitations: A Re-evaluation

A bstract . A 1982 study of the efficacy and impact of tax and expenditure limitations (TEL) is updated. Utilizing various statistical comparisons, growth in expenditures and revenues in states with TELs is compared to growth in states without a TEL in place. This comparison matches growth in the pre tax revolt years with growth in the post revolt years. In all cases the statistical tests show that the existence of a TEL has had virtually no impact on the growth of statewide expenditures or revenues. Additionally, while aggregate state expenditures and revenues exhibited some decline during the tax revolt years, this decline was short-lived and has since been reversed. Thus, the primary implication is that TELs as presently construed are an ineffective means of limiting growth in state budgets     

Economics of Optimization of Fat Levels in Turkey Diets

Although a good deal of empirical research is available on the measurement of turkey body weight gain response to fat supplementation, none has attempted to study the economics of optimizing fat level in turkey diets. This study focuses on deriving the optimal fat level in turkey diets. The methodology used should also apply to any nonruminant species (swine and poultry).     

Asymptotic least-squares estimation efficiency considerations and applications

This paper is concerned with the large sample efficiency of the asymptotic least-squares (ALS) estimators introduced by Gouriéroux, Monfort, and Trognon (1982, 1985) and Chamberlain (1982, 1984). We show how the efficiency of these estimators is affected when additional information is incorporated into the estimation procedure. The relationship between ALS and maximum likelihood is discussed. It is shown that ALS can be used to obtain asymptotically efficient estimates for a large range of econometric models. Many results from the literature on estimation are special cases of the framework adopted in this paper. An application of ALS to a dynamic rational expections factor demand model in the manufacturing sector in The Netherlands demonstrates the potential of the method in the estimation of the parameters in models which are subject to nonlinear cross-equation restrictions.     

The Economics of Charities: Revised Theory and New Evidence

Can economic principles be applied to the behaviour of charities? Professor Edwin West of the Universities of Carleton and Emory, claims that charities are susceptible to the same type of analysis as companies - but with important differences.     

Airline Schedule Recovery after Airport Closures: Empirical Evidence since September 11

Since the September 11, 2001, terrorist attacks, repeated airport closures due to security breaches have imposed substantial costs on travelers, airlines, and government agencies in terms of flight delays and cancellations. Using data from the year following September 11, this study examines how airlines recover flight schedules upon reopening of airports that have been closed for security reasons. As such, this is the first study to empirically examine service quality during irregular airport operations. Our results indicate that economic considerations, particularly the potential revenue per flight, have predictable effects on service quality following airport closures. Airport concentration, hub destination, and various logistical factors also significantly influence flight outcomes.