The supply of consumption goods in centrally planned economies

Estimates are given, based on annual time series from the mid-1950s to 1975, of planner's supply functions for consumption goods in Czechoslovakia, the GDR, Hungary, and Poland. The supply function is specified in the form of a behavioral rule describing the planners' short-run adjustment of consumption away from its long-run trend. The fits are good, and the estimates support the a priori specification and the maintained hypothesis of stable resource-allocation behavior. These supply functions, together with household demand functions estimated in a separate paper, will provide a starting point for disequilibrium estimation of the consumption-goods market for these economies.     

Teacher qualifications and student achievement in urban elementary schools

Teacher quality is a key element of student academic success, but few specific teacher characteristics influence classroom outcomes. This research examines whether teacher licensure test scores and other teacher attributes affect elementary student achievement. The results are based on longitudinal student-level data from Los Angeles. California requires three types of teacher licensure tests as part of the teacher certification process; a general knowledge test, a subject area test (single subject for secondary teachers and multiple subject for elementary teachers), and a reading pedagogy test for elementary school teachers. The student achievement analysis uses a value-added approach that adjusts for both student and teacher fixed effects. The results show large differences in teacher quality across the school district, but measured teacher characteristics explain little of the difference. Teacher licensure test scores are unrelated to teacher success in the classroom. Similarly, student achievement is unaffected by whether classroom teachers have advanced degrees. Student achievement increases with teacher experience, but the linkage is weak and largely reflects poor outcomes for teachers during their first year or two in the classroom.     

Unemployment and welfare consequences of international outsourcing under monopolistic competition

This paper challenges the conventional academic view that international outsourcing is just another form of gainful trade. Contrary to that view, we show that labour‐service outsourcing can reduce the high‐wage country's welfare even when product‐market trade is beneficial, within a model that combines involuntary unemployment and monopolistic competition. Outsourcing's impact on welfare is worsened by a definite loss of jobs and a possible contraction in the range of varieties produced worldwide. While owners of capital benefit from outsourcing under certain conditions, labour's welfare always falls.     

European bank equity risk: 1995–2006

We examine changes in bank equity risk following the formation of the Economic Monetary Union (EMU) in 1999. With the exception of Germany, we observe a decline in bank risk across euro-zone countries. Total risk decreased for 70% of the euro-zone banks in our sample with a statistically significant decrease in total risk observed for 51% of the sample. Similar results are found for idiosyncratic risk and systematic risk. These results are robust to financial crisis effects and test specification. Moreover, we find some evidence of a decrease in bank equity risk for a sample of neighbouring non-euro-zone European countries, consistent with the existence of some spill over effects.     

An Experimental Study of the Effect of Private Information in the Coase Theorem

We investigate, in an experimental setting, the effect of private information on the Coase theorem's predictions of efficiency and allocative neutrality. For a two-person bargaining game, we find significantly more inefficiency and allocative bias in the case of private information compared with the case of complete information. We also find substantial bargaining breakdown, which is not predicted by the Coase theorem. For the case of private information, we reject the Coase theorem in favor of the alternative of a generalized version of the Myerson—Satterthwaite theorem, which predicts inefficiency, allocative bias in the direction of the disagreement point, and some bargaining breakdown.     

The Impacts of Promotions/Marketing, Scheduling, and Economic Factors on Total Gross Revenues for Minor League Baseball Teams

The purpose of this empirical study is to identify the key marketing and scheduling determinants of game attendance at minor league baseball games. Identification of such marketing and scheduling factors can provide the management of minor league teams in similar environments with information to more efficiently pursue the goal of game attendance maximization. To ensure greater comparability of data between teams and hence relevance of results, this study focuses upon a single grouping of teams, the Carolina League, and a single minor league baseball season, 2006. The Carolina League consists of eight teams serving eight metropolitan areas: Lynchburg City, VA; Winston-Salem, NC; Wilmington, DE; Salem City, VA; Myrtle Beach, SC; Prince William County, VA; Lenoir City, NC; and Frederick County, MD.