Uncertain availability,spatial location and regulation: An application to the airline industry

This paper presents an analysis of industries characterized by both uncertain availability and spatial location of the product. The analyis is applied to the US airline industry and is used to analyze the differential effect of price regulation on different markets and firms. From this analysis we obtain insights into which firms and markets may have benefited most from the deregulation of the industry in 1978. Previous works on the regulation of the airline industry implicitly assume that markets have the same demand structure. If airline services are of homogeneous quality, men we do not expect the unregulated solution to depend on demand structures. If on the other hand airline services vary in their quality component, then different markets may have different equilibrium price-quality combinations depending on the characteristics of demand. This paper explores the implication of different demand structures on the impact of (de)regulation.     

Price level determinacy with an interest rate policy rule and rational expectations

This paper reconsiders a result obtained by Sargent and Wallace namely, that price level indeterminacy obtains in their model if the monetary authorities adopt a feedback rule for the interest rate rather than the money stock. It is shown that the indeterminacy vanishes if the interest rate rule is chosen so as to have a desired effect on the expected quantity of money demanded. This holds even if considerable weight is given, in the choice of a rule, to the aim of smoothing interest rate fluctuations.     

A model of benefit and tax share discrimination by a monopoly bureau

This paper integrates the theory of demand for publicly provided goods in a democracy with the theory of bureaucratic supply in order to develop a model of benefit share and tax share discrimination by a monopoly bureau. The demand side of the political market is based on a utility maximizing model of voter behavior with voters' demands aggregated through a majority voting process. The supply side of the political market is based on a budget maximizing model of bureaucratic behavior. The bureau is assumed to possess monopoly power as a result of either its control over benefit shares or tax shares and, hence, implicit tax prices or its control over budget proposals placed on the agenda. Different degrees of discrimination are examined and in each case the equilibrium of the model yields a total budget for the bureau as well as distributions of benefit shares or tax shares across voters.     

Identification of the Lorenz curve by Lorenz coefficient

Zusammenfassung Die Identifikation der Lorenzkurve durch Lorenzkoeffizienten. — Der aus der Lorenzkurve abgeleitete Gini-Koeffizient vermittelt einen guten Eindruck von dem Ma\ an Ungleichheit. W?hrend sich jedoch eine Lorenzkurve auf den Gini-Koeffizienten im Verh?ltnis eins zu eins übertragen l?\t, entspricht — in der entgegengesetzten Richtung — ein Gini-Koeffizient mehreren Lorenzkurven. In dieser Untersuchung wird die Lorenzkurve in einzelne Abschnitte aufgeteilt. Dann wird jedem Abschnitt ein gewogener Lorenz-Koeffizient zugeordnet, wodurch es m?glich wird, Lorenzkurven mit identischen Gini-Koeffizienten zu unterscheiden. Die Verbindung zwischen jedem Kurvenpaar kann aufgehoben werden, indem man von Abschnitt zu Abschnitt die jeweiligen Lorenz-Koeffizienten vergleicht. Ein empirisches Beispiel ist in dem Artikel enthalten.

---

Résumé L’identification de la courbe de Lorenz par le coefficient de Lorenz. — Le coefficient de Gini dérivé de la courbe de Lorenz exprime un degré considérable de sens intuitif pour la mesure de l’inégalité. La reproduction de la courbe de Lorenz en coefficient de Gini est cependant dans le rapport un à un, celle du coefficient de Gini en courbe de Lorenz un à beaucoup. Cette étude veut partager la courbe de Lorenz en piéces détachées. Un sous-coefficient pondéré de Lorenz est associé avec chaque partie, une méthode qui permet à différencier les courbes de Lorenz avec des coefficients identiques de Gini. Le lien entre chaque paire de courbes peut être détaché si on part d’une comparaison de chaque sous-coefficient de Lorenz de partie à partie. L’auteur fournit une application empirique.

---

Resumen Identificación de la curva de Lorenz por medio del coeficiente de Lorenz. — El coeficiente de Gini derivado de la curva de Lorenz transmite sentimientos intuitivos considerables para la medida de desigualdad. Sin embargo, el desdibujamiento de la curva de Lorenz hacia el coeficiente de Gini es uno a uno y el del coeficiente de Gini hacia la curva de Lorenz de uno a muchas veces. En este estudio se divide la curva de Lorenz en partes. Un sub-coeficiente de Lorenz se asocia con cada parte permitiéndonos diferenciar curvas de Lorenz con idénticos coeficientes de Gini. La unión entre cualquier par se puede quebrar procediendo a comparar cada sub-coeficiente de Lorenz de parte en parte. Se presenta una aplicación empírica.

     

The British economy in 1975 revisited

Thirteen years ago a medium-term economic forecast was published, The British Economy in 1975 by W. Beckerman et al. This article assesses the study, the reasons for its lack of success, and their implications for medium-term economic forecasting in general.