TAXES AND EXPENDITURES IN THE U.S.: PUBLIC OPINION SURVEYS AND INCIDENCE ANALYSIS COMPARED

The usefulness of surveys for eliciting fiscal opinions of voters is investigated. Using data from the U.S. Advisory Commission in Intergovernmental Relations annual surveys of attitude toward government and taxes, the survey responses are related to economic and political factors and the survey results compared to those predicted by incidence analysis. The results from this analysis and a review of previous studies of this type suggest that there is often no consistent economic foundation for answers to fiscal survey questions. It also appears that some standard survey questions are too general to produce precise estimates of the factors influencing responses.     

USING AN INTEGRATED TYPOLOGY OF DEVIANCE TO ANALYZE TEN COMMON NORMS OF THE U.S. MIDDLE CLASS

In a recent article we presented an integrated typology in which we categorized deviance based on both norms and evaluations. Cross-classifying normative expectations and societal evaluations identifies four types of deviance. Negative deviance implies negatively evaluated underconformity (or nonconformity); rate busting depicts negatively appraised overconformity; deviance admiration designates positively reacted to underconformity (or nonconformity); and positive deviance signifies positively sanctioned overconformity. To assess the efficacy of this typology in relation to a system of norms, ten middle-class norms—previously defined as the predominant ones in the United States by Tittle and Paternoster (2000)—were evaluated in relation to our integrated typology. Those norms are: loyalty, privacy, prudence, conventionality, responsibility, participation, moderation, honesty, peacefulness, and courtesy. Each potentiality is identified; for example, regarding the norm of loyalty, apostasy is the negative deviance form (negative deviance has already been outlined in relation to all ten norms); rebellion is the deviance admiration type; fanaticism is the rate busting scenario; and altruism is the positive deviance kind.     

DURKHEIM'S MACROFOUNDATIONS OF TIME: AN ASSESSMENT AND CRITIQUE

In this article, Durkheim's theory of time will be assessed in reference to his theory of transactions (organic solidarity). Specifically, Durkheim associated time with a metaphorical conception of the transaction that separated: (1) macrofoundations from microstates, and (2) external constraints from subjective states. This separation led to a conception of time as dominated by linear, rigid sequential, and categorical images. Counterposed to this metaphor are more dynamic, interpersonal, and cybernetic conceptions of temporality and transactions, which can be integrated with Durkheim's scheme to suggest another way of bridging the micro-macro distinction—through the use of time and temporality. This integration will be discussed in relation to five conceptions of time that will, in turn, be used to evaluate and critique Durkheim's macrofoundations. These conceptions are: (1) the evolutionary-transformational, (2) the categorical, (3) the iterative, (4) the rigid sequential, and (5) the negotiated sequential. The article concludes by suggesting that Durkheim's emphasis on the rigid sequential conception can inform and be informed by modern-day emphases on iterative and negotiated sequential conceptions.     

AN EXAMINATION OF LINEAR AND NONLINEAR CAUSAL RELATIONSHIPS BETWEEN COMMODITY PRICES AND U.S. INFLATION

This article uses both linear and nonlinear causality tests to examine the causal relationships between changes in commodity prices and U.S. inflation. Prior to the Great Moderation, there is evidence that changes in commodity price indices linearly lead inflation. The stability of the causal relationship appears to vary over time with a stronger bivariate link established before the Great Moderation. Further, there is evidence of significant nonlinear causality from raw industrials and metals indices to inflation with most of this detected nonlinear relationship being captured using the Baba, Engle, Kraft, and Kroner asymmetric generalized autoregressive conditional heteroskedasticity model. This implies that the observed nonlinear Granger causality is largely driven by unanticipated shocks and volatility spillovers in the run‐up of commodity prices in late 2000. (JEL C18, C22, E31)     

SERVICES OUTSOURCING AND INNOVATION: AN EMPIRICAL INVESTIGATION

We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic outsourcing, profits, and innovation using plant‐level data. We find a positive effect of international outsourcing of services on innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing, but the magnitude is smaller. We also find that international services outsourcing has a positive effect on profitability, as predicted by theory, whereas this is not true for domestic sourcing. The results are robust to various specifications and an instrumental variables analysis. (JEL F19, O31)     

VIETNAM RECONSIDERED: AN ATTITUDINAL SURVEY OF U.S. ARMY GENERAL OFFICERS

The 173 individuals who held U.S. Army general officer commandpositions in Vietnam during the period 1965–1972 weresurveyed in September 1974 about various aspects of that conflict.Their responses reflected a general dissatisfaction with Washingtonmanagement of the war. Perceptions of media coverage of thewar were very negative. A striking absence of consensus wasapparent in many areas of the survey     

AN EXPERIMENT ON INNOVATION AND COLLUSION

This paper examines the relationship between product innovation and the success of price collusion using novel laboratory experiments. Average market prices in low innovation (LO) experiments are significantly higher than those in high innovation, but otherwise identical experiments. This price difference is attributed to LO experimental subjects' greater common market experience. The data illustrate how collusion can be perceived as the “only way to make it” in LO markets where product innovation is not a viable strategy for increasing profits. They suggest that product homogeneity can be a proximate cause, and product innovation an ultimate cause, of collusion. (JEL L41, L10, C92)     

TRENDS IN RANKINGS OF ECONOMICS DEPARTMENTS IN THE U.S.: AN UPDATE

Economics departments in the U.S. are ranked based on (1) the number of pages published in thirty-six economics journals, (2) publications in five of the top journals, (3) output per faculty member, and (4) an index of the concentration of research in a department. Evidence shows that the top twenty departments have generally retained their positions since the 1970s, but rather large changes have occurred in departments ranked from 240 to 100. An "Economists Hall of Fame" is developed listing the top fifty individual producers of research in the thirty-six journal set and the top five journals.     

BONDING AND BRIDGING ACTIVITIES OF U.S. PENTECOSTALS

A growing body of literature weighs the influence of religion on civic life. Largely missing from prior analysis is Pentecostals. With novel religious beliefs and practices, Pentecostals might be expected to focus more on in-group bonding activities than out-group bridging activities. We test this expectation using national data from the 2005 Baylor Religion Survey. We contrast three measures of Pentecostalism: denominational affiliation, speaking in tongues at a place of worship, and self-described Pentecostal/charismatic identity. Results affirm high rates of bonding activity (church attendance and other congregation activity) for contemporary Pentecostals. Results for Pentecostal bridging are more complicated. People in Pentecostal denominations and those who speak in tongues participate less in community organizations and politics. However, this is more a function of social class and general conservatism than religious culture or sense of identity. Comparable to other conservative Protestants, the vitality of Pentecostal groups seems no impediment to democratic society.     

MARKET STRUCTURE AND PRICE-COST MARGINS:A COMPARATIVE ANALYSIS OF U.K. AND U.S. MANUFACTURING INDUSTRIES

This paper reports a comparative study of market structure- performance relations in U. K. and U.S. manufacturing indus- tries. The multivariate regression results support the hypothesis of homogeneity of the links between market structure and the price-cost margin dimension of performance in manufacturing industries of the two countries. Furthermore, the results indicate that the differences in the legal and cultural environments of U.K. and U.S. industries do not significantly affect the pattern of similarity in the links.     

MULTI-LEVEL VULNERABILITY OF ADOLESCENT MARRIAGES: AN ECO-SYSTEM MODEL FOR CLINICAL ASSESSMENT AND INTERVENTION

This paper utilizes the Transitionally Unintegrated-Externally Open family system type derived from Wertheim (1973,1975) to address the multiple factors that may enhance or reduce the vulnerability of the adolescent marriage. Facilitating and constraining factors on the development of marital system autonomy and competence are identified at the individual, marital, familial and extra-familial levels. Guidelines for clinical assessment and intervention are presented.     

RETURNS TO SKILLS AND PERSONNEL MANAGEMENT: U.S. DEPARTMENT OF DEFENSE SCIENTISTS AND ENGINEERS

Personnel records are used to examine compensation, recruitment, and retention of a group of highly skilled workers: civilian scientists and engineers in U.S. Department of Defense laboratories. In contrast to those of the private sector, returns to skills were largely flat for this group from 1982 to 1996. Despite this, quality and performance of recruits relative to earlier cohorts, and of those retained relative to those who left, remained stable. One explanation is the importance of defense industry–specific human capital. These results hold for three different pay plans, including the federal government's primary plan and two intended to introduce greater flexibility in personnel management. (JEL J31 , J44 , J45 , M52 )     

THE SWINGS OF U.S. INFLATION AND THE GIBSON PARADOX

In recent business cycles, U.S. inflation has experienced a reduction of volatility and a severe weakening in the correlation to the nominal interest rate (Gibson paradox). We examine these facts in an estimated dynamic stochastic general equilibrium model with money. Our findings point at a flatter New Keynesian Phillips Curve (higher price stickiness) and a lower persistence of markup shocks as the main explanatory factors. In addition, a higher interest‐rate elasticity of money demand, an increasing role of demand‐side shocks, and a less systematic behavior of Fed's monetary policy also account for the recent patterns of U.S. inflation dynamics. (JEL E32, E47)     

SCHOOL QUALITY AND RETURNS TO EDUCATION OF U.S. IMMIGRANTS

Using the U.S. labor market as a common point of reference, this article investigates the influence of source country school quality on the returns to education of immigrants. Based on 1980 and 1990 census data, we first estimate country-of-origin specific returns to education. Results reveal that immigrants from Japan and northern Europe receive high returns and immigrants from Central America receive low returns. Next we examine the relationship between school quality measures and these returns. Holding per capita GDP and other factors constant, immigrants from countries with lower pupil-teacher ratios and greater expenditures per pupil earn higher returns to education.)     

FDI AND INCOME INEQUALITY: EVIDENCE FROM A PANEL OF U.S. STATES

This study employs state‐level panel data to explore the relationship between inward foreign direct investment (FDI) and income inequality in the United States. Using panel cointegration techniques that allow for cross‐sectional heterogeneity and cross‐sectional dependence, we find that, in the long run, FDI exerts a significant and robust negative effect on income inequality in the United States. This result for the United States as a whole does not imply that FDI narrows income gaps in each individual state. There is considerable heterogeneity in the long‐run effects of FDI on income inequality across states, with some states (21 out of 48 cases) exhibiting a positive relationship between FDI in income inequality.(JEL F21, D31, C23)     

UNEMPLOYMENT AND OTHER MEASURES OF LABOR MARKET INEFFICIENCY: A COMPARISON OF U.K. AND U.S. LABOR MARKETS 1931–96

Although unemployment is often used as a measure of labor market inefficiency, economic theory indicates that market inefficiency is determined by both the gap between and the elasticities of supply and demand. Using time series data for the United States and United Kingdom, this article investigates how good the unemployment rate is as a measure of labor market inefficiency by calculating the deadweight loss associated with unemployment rates over time. Results show that the loss arising from unemployment is low across time and countries and that the unemployment rate is often a weak proxy for comparing labor market inefficiency. (JEL J6 )     

THE EFFECTS OF ASSET PURCHASES AND NORMALIZATION OF U.S. MONETARY POLICY

This paper examines changes in the effects of unconventional monetary policies in the United States. To this end, we estimate a Markov-switching VAR model with absorbing regimes to capture possible structural changes. Our results detect regime changes around the beginning of 2011 and the middle of 2013. Before 2011, the U.S. large-scale asset purchases (LSAPs) had relatively large impacts on the real economy and prices, but after the middle of 2013, their effects were weaker and less-persistent. In addition, after the middle of 2013, which includes the monetary policy normalization period, the asset purchase (or balance sheet) shocks had slightly weaker effects than during the early stage of the LSAPs but stronger effects than during the late stage of the LSAPs, while interest rate shocks had insignificant effects on the real economy and prices. Finally, our results suggest that the positive responses of durables and capital goods expenditures to interest rate shocks weakened the negative impacts of interest rate hikes after the middle of 2013 including the period of monetary policy normalization. (JEL C32, E21, E52)     

COMPETITION AND PRODUCTIVITY GROWTH: THE CASE OF THE U.S. TELEPHONE INDUSTRY

The article focuses on the relation of competition to changes in productivity. Specifically, it compares the experience of AT&T Long Lines, operating in an increasingly competitive market, with that of eight local telephone monopolies. Both the estimation of total factor productivity growth and the analysis of shifts in cost functions show a markedly faster change in efficiency in the effectively competitive market than for the local monopolies. The article also examines three channels through which competition produces differential changes in efficiency. The results support, by implication, a policy of permitting entry and increasing competition in local telephone markets. ( JEL L11, L96)     

SCHOOLS OF ACTIVITY AND INNOVATION

Explanations of artistic innovation have generally focused on political or psychological factors influencing individual socialization. This article suggests an alternative approach focusing on the organizational processes in an art world, specifically the production of concert music. Concerts are produced through the collective activity of musical specialists. Compatible collaborators identify each other by constructing "schools of activity" that group conventional concert practices and practitioners. Different schools, however, do not simply represent alternative conventions, rather they represent degrees of convention that correspond to varying aesthetic interests in innovation and virtuosity. The first part of this article examines the organization of artistic activity and the formation of schools. The second part presents data from the concert world illustrating the organization of alternative types of artistic practice.     

DEPRESSED WAGES ALONG THE U.S.-MEXICO BORDER: AN EMPIRICAL ANALYSIS

Portions of the United States near the Mexican border are experiencing massive inflows of both legal and illegal migrants of Mexican origin. The resultant concentration of low skill labor in these areas of the southwestern states supposedly has led to an excess supply of labor and subsequent depressed labor market conditions, particularly for blue collar workers and Mexican-American nationals. This paper analyzes the degree to which the labor market in this area is depressed. The results presented here tend to verify hypotheses suggested by several other authors but indicate that the magnitude of the problem as reflected by low wages along the border is much less severe than generally believed. The importance of this study is that it measures a phenomenon that heretofore has been accepted with very little empirical verification.