TOUGH LOVE AND INTERGENERATIONAL ALTRUISM*

This article develops and studies a tough love model of intergenerational altruism. We model tough love by modifying the Barro‐Becker standard altruism model in two ways. First, the child’s discount factor is endogenously determined, so lower childhood consumption leads to a higher discount factor later in life. Second, the parent evaluates the child’s lifetime utility with a constant high discount factor. Our model predicts that parental transfers will fall when the child’s discount factor falls. This is in contrast with the standard altruism model, which predicts that parental transfers are independent of exogenous changes in the child’s discount factor.     

The Impact of the Home Valuation Code of Conduct on Appraisal and Mortgage Outcomes

The accuracy of appraisals came into scrutiny during the housing crisis, and a set of policies and regulations was adopted to address the conflict‐of‐interest issues in the appraisal practices. In response to an investigation by the New York State Attorney General's office, the Home Valuation Code of Conduct (HVCC) was agreed to by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency. Using unique data sets that contain both approved and nonapproved mortgage applications, this study provides an empirical examination of the impact of the HVCC on appraisal and mortgage outcomes. The results suggest that the HVCC has led to a reduction in the probability of inflated valuations, although valuations remained on average inflated, and induced a significant increase in the incidence of low appraisals. The well‐intentioned HVCC rule made it more difficult to obtain mortgages to purchase homes during the housing price crash, possibly exacerbating the fall in prices.     

Does Culture Matter in Inter-Firm Cooperation? Research Consortia in Japan and the USA

Collaborative research consortia allow firms to pursue scale and scope economies in research, finance large costly proposals, share risks, avoid unnecessary duplication, internalize the externalities created by research spillovers, and allow the use of firm-specific complementary skills and resources. In this study we examine the evolution of cooperative research organizations in the USA and Japan. We explore the factors which influence the emergence of alternative forms of cooperation. Specifically, we examine the role of culture and the institutional environment in molding the organization of cooperation between firms in R&D and the consequences of such cooperation. © 1997 John Wiley & Sons, Ltd.     

Capital Imports and Tariffs

This paper develops a three‐sector, three‐factor specific factor model with a tariff and presents conditions under which capital imports and tariffs can be welfare enhancing in a developing country. The impact on welfare depends on the tariff revenue effect and the repatriation effect. A capital import is welfare enhancing if it reduces the domestic output of imports. A tariff is welfare enhancing only if it reduces the return to foreign capital.     

Impacts of robotization on the Japanese economy

The introduction of robots leads to a reduction of direct labor, whereas it stimulates the investment activity of firms and thereby brings about a rise in indirect employment. This paper attempts to evaluate relative magnitudes of both effects of robotization on employment. The method of analysis depends on the application of an econometric model. The results of the survey at the individual firm level are also utilized. The forecast for the current five years (1985–1990) is that robotization will result in a net effect of a 23 thousand person decrease in employment.     

Index Number Concepts,Measures and Decompositions of Productivity Growth

This paper explores the definitions and properties of total factor productivity growth (TFPG) indexes, focusing especially on the Paasche, Laspeyres, Fisher, Törnqvist, and implicit Törnqvist ones. These indexes can be evaluated from observable price and quantity data, and certain of these are shown to be measures of TFPG concepts and theoretical indexes that have been proposed in the literature. The mathematical relationships between these and quantity aggregates, financial measures, and price and quantity indexes are explored. Decompositions of the productivity growth indexes are also given. The paper concludes with a brief overview of some limitations on our analysis.     

Peliosis of the spleen with intraperitoneal hemorrhage

We encountered a patient with steroidrelated peliosis of the spleen, a rare disease characterized by multiple blood-filled cavities in the splenic parenchyma, with spontaneous intraperitoneal hemorrhage. The ultrasonographic, computed tomographic, and angiographic images were compared with pathologic findings of the material obtained surgically.