A QUALITY-ADJUSTMENT MODEL OF THE ACADEMIC LABOR MARKET: THE CASE OF ECONOMISTS

This paper uses some new data on the initial academic placements of new Ph.D. economists to test a quality-adjustment model, which is consistent with the hypothesis that most academic appointments follow a "downstream" pattern. By the use of weighted least squares the authors confirm the importance of the perceived quality of the faculty of the degree granting program, the publishing performance of former graduates of these programs, and the student/faculty ratio of these programs in economics over the period 1960 to 1978. Finally, it is shown that contrary to popular opinion, the extent of the "downstream" pattern has not been magnified in the so-called buyers markets of the 1970's.     

ELECTORAL POLITICS AND THE EXECUTIVE VETO: A PREDICTIVE THEORY

We argue that winner-take-all voting in states and the unequal distribution of electoral votes across states in presidential elections makes incumbent presidents rationally place more weight on the preferences of voters in closely contested, larger states when making policy decisions. This hypothesis is tested by examining whether presidential veto decisions are influenced by the floor votes of senators from these electorally crucial states. In a pooled sample of 325 individual bills from 1970 through 1988, we find significant evidence of this behavior by incumbent presidents.     

THE DEMAND FOR CIGARETTE SMUGGLING

When taxes raise the full price of a good above that in nearby jurisdictions consumers have an incentive to cross into the lower-price jurisdiction to make purchases. Using a simple microeconomic model of the consumer's border-crossing decision, we derive an econometric model to test the significance of border crossing and estimate the magnitude of the resulting sales. Examining cigarette sales in the continental U.S. over the period 1960 to 1986, we find strong evidence that border crossing is a significant factor in explaining sales differentials between states. Implications for demand estimation and excise tax policy are discussed.