Rational choice and the taxation of sin

The traditional literature on sumptuary taxation indicates that these taxes are the results of a majority of individuals imposing their moral code upon consumers of goods that are thought to be undesirable. Undoubtedly, this explanation is not trivial, and accounts for the existence of some of the present sumptuary taxes. This paper has developed a choice model of sumptuary taxes based on a wealth-maximization assumption that illustrates the possibility that an individual could approve of an excise tax on a good that he consumes.     

Topology of economic systems

An economic topology can have many uses to the academician, student and practitioner. Refining a topology of economic systems helps to bring together seemingly disparate characteristics and to point out potential long run trends. The progression of economic systems over time and also brief explanations of each system are given. We argue that most modem economic systems have some remnants of earlier forms, that is, most economies today are some mixture of what might be considered pure systems. Measurable characteristics to identify a particular system are developed that allows progress to or from a particular classification to be charted for individual countries.     

Stock Returns and Inflation

In this paper the relationship between inflation and stock returns in Australia is examined. It is found that increases in the price level reduce the real level of the stock price index. However, it is also found that the question of whether persistent increases in inflation affect real returns cannot be addressed using the Australian data.     

Directional heterogeneity of environmental disamenities: the impact of crematory operations on adjacent residential values

A hedonic study of residential house sales in Rawlins, Wyoming, was conducted to estimate the impact of an environmental shock from a new point source upon adjacent residential property values. We use a unique data base of house sale prices and associated house attributes, including structural and neighbourhood characteristics and geographic distances and directions from the source of the shock, atmospheric emissions from a new crematory. Our data spans 27 months of house sales: 7 months before, and 20 months after the startup of crematory operations. Results indicate that proximity, measured both in terms of direction and distance from the crematory, imparts a statistically significant negative impact on average house sale prices–an increase of 0.3 to 3.6% of average sale price for every one-tenth mile increase up to one-half mile in distance away from the crematory, but depending on direction from the crematory. This distance benefit increases somewhat with calendar time only for houses located west of the crematory.     

The dynamics of inter-firm networks in the course of the industry life cycle: the role of appropriability

This paper examines the dynamics of inter-firm networks and introduces a conceptual framework for explaining why inter-firm networks change over time. The framework is based on the idea that patterns of inter-firm linkages are linked to the life cycle development of an industry. Special emphasis is placed on the role of appropriabiliy, i.e. a firm's ability to capture the profits generated by its innovations. The (trans)formation of inter-firm networks in three industries is examined and used to illustrate the relevance of the framwork. One important inference from our study is that public policy makers and manageers should take into account the phase of industry development before implementing policies to create and/or change inter-firm networks.     

The Velocity of Circulation: Some new evidence on international integration

This study tests for the integration of money velocity movements among the major European Union countries. For this purpose, a new test is employed that allows one to confirm or reject integration on the basis of whether or not the first largest principal component, based on deviations of velocity growth rates from a base country, is stationary. Using monthly data covering the last 25 years, this study finds that integration was strongest during the 1970s and during 1983-92. These findings modify the institutionalist view that common financial developments have meant that velocities have moved together on an upward secular trend over the last 40 years. Developments with regard to currency substitution along with exchange rate policy and capital controls can affect relative interest rates and income movements and therefore the co-movements in money velocities.