Decreasing marginal impatience in a two-country world economy

By using a two-country model with endogenous time preference, this paper examines the dynamic implication of decreasing marginal impatience (DMI). To ensure stability, we assume that one country has DMI whereas the other has increasing marginal impatience (IMI). The resultant equilibrium dynamics differ from what can be inferred from the analysis of the standard IMI model (e.g., Devereux and Shi in J Int Econ 30:1–25, 1991). An increase in fiscal spending, in either country with DMI or IMI, has always contrasting long-run effects on domestic and foreign consumption and hence on domestic and foreign welfare; and the same policy definitely raises the interest rate in the long run.     

Territorial Differentiation and Societal Change in the United States and Canada *

Abstract A theory based on four stages of social and cultural changes for large territorial units is presented and three hypotheses are deduced linking territorial differentiation to societal change. The stages are measured by die degree to which the territorial units of a society display similar characteristics, and whether the units are diverging or converging from one another. Hypothesis I asserts that the form of societal change among territorial units over time is curvilinear. Hypothesis II maintains that changes in technological efficiency lead to changes in territorial differentiation on selected social and cultural characteristics. Finally, according to Hypothesis III, changes in territorial differentiation on technological efficiency are directly related to changes in territorial differentiation on selected social and cultural characteristics. The hypotheses are tested in terms of changes in the United States and Canada and receive strong support from the direction and magnitude of the relations.     

Optimizing the Use of Televised Instruction

Experiments with various techniques of teaching have generally not permitted students to elect the combination of techniques they most prefer. Gordon discusses preliminary results that contrast with some of the findings reported to date.     

Universal service subsidies and cost overstatement: Evidence from the U.S. telecommunications sector

Utility subsidies are often defended as promoting universal service. However, specific support formulas may be poorly targeted and/or designed. The U.S. high-cost loop support (HCLS) program (formerly referred to as the Universal Service Fund (USF)), has been a key component of the FCC's USF program. With proposed initiatives for universal access to broadband, it is useful to critically evaluate how the HCLS creates a moral hazard problem. This study finds that companies receiving HCLS subsidies have an incentive to report high costs to the FCC in order to qualify for still higher support payments. Using data from 1136 rural telecom firms in 50 states (1992-2002), this study shows that some companies respond to current incentives by overstating costs (or incurring higher costs) as they approach the subsidy cutoff points. Compared to the no-subsidy group, companies at the point of greatest subsidy jump appear to overstate costs more due to larger marginal benefits. Such perverse incentives need to be recognized in future universal service initiatives.     

Do free-market economists practice what they teach?

Conclusion There is then a fundamental inconsistency between theory and application for political economists who both rely on standard microeconomics for their support of the free market and scorn government intervention. Theory matters in free-market critiques of public policy. It matters, however, not only in determining the content of those critiques, but also, from a methodological standpoint, in the sense of whether the world-view presupposed by theory is one that leaves room for any meaningful critique to take place at all. It should not be news that the authorities in charge of public policy are ignorant. Surprisingly, if we start from the presumptions of perfect-knowledge economics we would be logically led to conclude that those authorities indeed never make mistakes, or if they do that it must have been planned that way all along. Fortunately, political economists working in the Austrian tradition are, as they have been since B?hm-Bawerk’s and Mises’s devastating critiques of Marxian economics and socialism, free from having to maintain this curious point of view. He also studied with Professor Sennholz at Grove City College.     

The World Bank and Poverty: The Plight of the World's Impoverished Is Still a Major Concern of the International Agency.

Abstract . Since the early 1980s, the World Bank has taken on new tasks in addition to its regular development finance function: preventing economic collapse in borrower countries, helping heavily indebted countries cope with their international payments difficulties, and encouraging basic economic policy reform and structural adjustment in developing countries. Many critics worry that, as the World Bank has taken on these new responsibilities, it has lessened its concern about poverty. The Bank and its friends argue that poverty alleviation remains a central element of the Bank's agenda, but the world situation is different than it was during the 1970s and new kinds of action are needed today. The Bank believes that economic reform and structural adjustments are crucial elements of a modern anti-poverty program. Many critics believe that structural adjustment programs may seriously hurt the poor. Exploring the arguments and reporting the ways the World Bank has sought to respond to this controversy, the author concludes that the issue is a fundamental disagreement about whether the new modes of Bank lending and the Bank's new policy emphasis will have a positive or negative effect on the poor.     

Consumer socialization and frequency of shopping with children

This study examines co-shopping frequency (mothers shopping with children) from a consumer socialization perspective. It also compares consumer orientations and socialization behaviors of heavier, moderate and lighter co-shoppers. Results indicate that these groups differ in desires to develop children’s consumer competence, consumer roles played by children, consumption motivations and values, and potential efforts to mediate marketing influence.     

A market test for natural monopoly in local exchange

Is the incumbent local exchange carrier (LEC) a natural monopolist? The analysis indicates that the LEC cost function is not supportable: LECs appear to be either nonsustainable natural monopolies or non natural monopolies over the set of services they currently offer. However, recent technological changes suggest that whether LECs are natural monopolies over their current offerings is immaterial for policy making, because competitors are enjoying economies of scope in offering both LEC and non LEC services. Based on these results, deregulation of LECs is discussed in a Type I/Type II error framework.     

Impact of deregulation on point-to-point demand in the USA

The authors describe a methodology designed to evaluate the impact of deregulation on point-to-point demand in the USA. They briefly review the rationale for regulation and the likely impacts of deregulation. After summarizing previous approaches to the demand for long-distance calls, they present preliminary results of a new study of the demand for toll messages. They conclude that the approach provides a first step towards determining the impact of new (competitive) services on existing point-to-point suppliers.     

How Compatible are Public Choice and Austrian Political Economy?

The Review of Austrian Economics - Public Choice relies heavily on equilibrium analysis in its models of government failure. Austrians are suspicious of equilibrium analysis owing to its reliance...