CHILD CARE USE BY LOW‐INCOME FAMILIES IN RURAL AREAS

Using data from interviews with 323 low‐income women living in rural counties in 11 states, child care arrangements for 672 children under 13 are described in relation to women's employment status, partner availability, and child age. As found in previous studies of rural areas, informal care is frequently used, regardless of full‐ or part‐time work or partner availability. Single mothers rely more on regulated care arrangements than mothers with partners and are more likely to pay for informal care than other mothers. Work in part‐time and service jobs suggests the need for flexible arrangements. Public data on child care availability and access in rural areas, the cost of care, and state subsidy programs suggest reasons for rural women's child care decisions. Policy implications of the study findings are shared.     

FIRM MARKET SHARE, PRICE FLEXIBILITY, AND IMPERFECT INFORMATION

This paper argues that firms with larger market shares will be relatively better informed about demand conditions. The main implications are 1) more rapid price adjustments in concentrated industries, 2) price leadership in industries with dominant firms, and 3) price setting behavior by the concentrated side of the market.     

INFLATION AND GOVERNMENT DEFICITS

There is a pronounced positive correlation of inflation and government deficits in the United States since World War II. The purpose of this paper is to test the three leading explanations of this correlation. These three explanations are: (a) a deficit increases prices through a wealth effect; (b) a deficit results in the Federal Reserve purchasing debt, thus increasing the money supply and prices; and (c) expected inflation increases the deficit (which is the change in the nominal value of bonds). No support is found for either of the first two hypotheses. The results indicate that expected government deficits have no significance for future inflation.