LABOR MARKET IMPACTS OF SMOKING REGULATIONS ON THE RESTAURANT INDUSTRY

This paper examines the impact of smoking regulations on restaurant employment in West Virginia, a state with a high rate of smoking prevalence. Using a confidential establishment‐level dataset, our results suggest that smoking bans reduced restaurant employment by between 0.7 and 1.5 workers, depending on model specification. We find that smoking restrictions have heterogeneous impacts across establishments, with the largest impacts on mid‐sized establishments, defined as those with 10–29 employees. Our results also suggest that the impact of smoking restrictions was larger in counties with higher rates of smoking prevalence. (JEL L51, D78, H0)     

Maximising sustainability of Dutch dairy farming systems for different stakeholders: A modelling approach

A multi-attribute sustainability function is included into a dairy farm LP-model by using Weighted Goal Programming. The created Weighted Linear Goal Programming (WLGP)-model is used to maximise sustainability of different Dutch dairy farming systems and to analyse the impact of: (1) maximisation of individual sustainability aspects (economic, social and ecological sustainability) and (2) maximisation of overall sustainability using stakeholder preferences. Maximising the individual aspects of both dairy farming systems, i.e. conventional and organic, shows the trade-offs between different aspects of sustainability. For conventional as well as organic dairy farming maximum scores are highest for external social sustainability. The conventional dairy farm achieves a slightly higher score for overall sustainability than the organic dairy farm for all stakeholders (i.e. consumers and producers). This shows that it is possible for conventional dairy farms, similar to the conventional farm used in the analysis especially regarding the stocking density and under Dutch policy conditions, to achieve equal sustainability scores in comparison with organic dairy farms. It is concluded that the WLGP model is a suitable tool to analyse the sustainability of different dairy farming systems.     

A note concerning a credit rule for monetary policy

A technique introduced by Friedman is used to analyze the ability of the Federal Reserve to control the money supply. We find that the necessary conditions for control are so restrictive that a constant growth rate for the money stock may not be achievable. We suggest, therefore, a steady growth rate for Federal Reserve Credit.     

Nonhomothetic Preferences and International Trade

This study examines whether nonhomothetic preferences underlie the “missing trade” problem associated with factor content of trade models. We first find that per capita income goes a long way in explaining differences in goods consumption across countries. We then find a striking correlation between the factor content of consumption and per capita income, and show that accounting for this is a key part of resolving the case of the missing trade. However, nonhomothetic preferences over broad categories of expenditure play only a small role in this phenomenon. Rather, we find that as income grows, spending is directed towards the relatively capital‐intensive version of a given good. Since recent research shows that capital intensity is correlated with quality ( Schott, 2004 ), our results suggest that within‐product quality differences are likely important for explaining the factor content of trade, whereas nonhomothetic preferences over broad categories of expenditure are much less so.     

Resource based relative value scale: a new challenge and opportunity for health care cost management

Beginning in 1992, the use of resource based relative value scale (RBRVS) will greatly change the way physicians are reimbursed for services to Medicare patients. This new system will also have implications for trust funds and corporate providers of health care benefits.     

Estimating the effects of monetary policy shocks: does lag structure matter?

This paper examines the implications of lag structure for estimating the effects of monetary policy shocks in a VAR. A symmetric lag structure in which all variables have the same lag length and an asymmetric lag structure in which the lag length differs across variables but is the same for a particular variable in each equation of the model are examined. This is important in light of the fact that the true lag structure is generally not known. Four commonly used identification schemes are employed to identify monetary policy shocks. Monte Carlo simulations strongly indicate that the lag structure of a VAR model does matter when assessing the quantitative effects of monetary policy shocks. Given the inherent uncertainty about the true lag structure in practice, it is thus important that one compare the impulse response functions from both symmetric lag and asymmetric lag VARs in assessing the effects of monetary policy shocks.