Using Coupon Incentives in Recycling Aluminum: A Market Approach to Energy Conservation Policy

A field experiment was conducted on a stratified sample of 354 recyclers and nonrecyclers to test the effects of coupon incentives on consumers' intentions and behavior in recycling aluminum. Results indicate that modest coupon incentives positively influenced recyclers' behavior, but did not influence nonrecyclers. Over the range of incentives tested, evidence suggests that increased recycling frequency is directly related to the coupon value. Implications for incorporating coupon promotional programs into the development of energy conservation policy, and areas for future research are discussed.     

An Experimental Analysis of Contingent Capital with Market‐Price Triggers

We report an experiment that evaluates three market‐based regimes for triggering the conversion of contingent capital bonds into equity: a “fixed‐trigger” regime, where a price threshold triggers mandatory conversion; a “regulator” regime, where regulators make conversion decisions based on prices; and a “prediction market” regime, where regulators also observe a market that predicts conversion. Consistent with theory, we observe inefficiencies and conversion errors in the fixed‐trigger and regulator regimes. The prediction market somewhat improves the regulator's performance, but inefficiencies and conversion errors persist. The regulator regime has conversion errors over the widest range of shocks.     

On the Rate Structure of the American Life Insurance Market

This article re-examines the conclusion of previous studies that price dispersion is extreme in the American whole life insurance market. We take an axiomatic approach to the problem of measuring “price” dispersion in the market for the multiparameter whole life contracts, studying the distribution across contract offers of a price index which is uniquely determined by two conditions. In contrast to the accepted wisdom, we find that the derived measure of price dispersion is only 3.6% and that much of this dispersion can be accounted for by measurement error.     

Baking for the common good: a reassessment of the assize of bread in Medieval England1

This article reassesses the structure of the assize of bread and its relevance for bakers and consumers in late medieval England. It has long been thought that the laws governing the manufacture and sale of bread, although adhering to a logical relationship between weight and price, were nevertheless ill‐considered in formulation, calculation, and enactment and did not, in reality, provide the stable allowance recommended for bakers. By examining the economic and moral ideology underlying the assize of bread it is possible to demonstrate that legislators were actually employing a rationale that best fitted contemporary circumstances and retail practices. There nevertheless remained one fundamental flaw in its construction, which was to have implications for its enforcement.     

Dealing with Time Inconsistency: Inflation Targeting versus Exchange Rate Targeting

Adopting a single instead of multiple targets can be an effective way to overcome the classic time‐inconsistency problem. The choice of a single mandate depends on the trade openness and the credibility. Reduced‐form empirical results show as central banks become less credible, they are more likely to adopt a pegged exchange rate, and the tendency to peg depends on trade openness. In a model with “loose commitment,” as credibility falls, either an inflation target or a pegged exchange rate is more likely to be adopted. A relatively closed (highly open) economy would adopt an inflation target (exchange rate peg).