MARKET FORCES AND AIRCRAFT SAFETY: THECASEOFTHEDC-10

The May 25th, 1979 Chicago DC-10 crash provides the opportunity to test an important proposition in the theory of consumer product safety: Can market forces provide safety when products are too complex to permit buyer prepurchase inspection? This paper combines economic theory with modern finance theory to measure the cost of the crash to shareholders of the plane's manufacturer, McDonnell Douglas. The results indicate that the DC-10 crash resulted in a $200 million loss to McDonnell Douglas stockholders and that this amount exceeds any reasonable estimate of regulatory or liability costs.     

THE POLITICAL ECONOMY OF U.S. WHEAT LEGISLATION

Both taxpayer subsidies to U.S. wheat producers and domestic deadweight losses increased as a result of the U.S. wheat program adopted in 1985. A calculation of the costs and benefits of alternative wheat policies shows that mandatory production controls with no taxpayer expense could have made wheat producers as well off as the adopted policy. Becker's theory of competition among interest groups and Peltzman's theory of the equilibrium amount of regulation are shown to be consistent with the observed policy choice if the list of fnfected interest groups includes agricultural input suppliers and grain marketing firms.     

Thomas William Cramp, Almoner: The Forgotten Man in a Female Occupation

Correspondence to Andrew Sackville, Social Sciences Department, Edge Hill College of Higher Education, St Helens Road, Ormskirk, Lancashire, L39 4QP. Summary This paper uses archive sources to reconstruct the activitiesof a pioneer almoner who had the unique distinction of beingthe only man in what at that time was a female occupation. Againstthe background of an account of the development of almoningas an occupation, it examines both the hospital work and theinvolvement in his professional association of Mr Thomas WilliamCramp, the Almoner at the Metropolitan Hospital, London, from1902 to 1923. The paper also questions why Mr Cramp has beenwritten out of the great majority of historical accounts ofalmoning/medical social work.     

Price Versus Quantity: Market-Clearing Mechanisms When Consumers are Uncertain about Quality

High-quality producers in a market where quality varies can reap superior profits by charging higher prices, selling greater quantities, or both. Empirical analyses of the mutual fund and automobile industries show that high-quality producers sell more units than their low-quality competitors, but at no higher price (or retail markup) per unit. Our theoretical models find that if qualities are known by consumers and production costs are constant, then having a higher quality secures the producer both higher price and higher quantity. The market may clear in a different fashion if there is "quality uncertainty"; that is, if some consumers can discern quality but others cannot. Then, high- and low-quality producers may end up setting a common price, which allows the high-quality producer to sell substantially more. In this context, quality begets quantity.     

WHY UNDERSTANDING SMOKING BANS IS IMPORTANT FOR ESTIMATING THEIR EFFECTS: CALIFORNIA'S RESTAURANT SMOKING BANS AND RESTAURANT SALES

A large literature has sought to determine whether smoking bans help or hinder restaurants. Much of the literature improperly specifies its econometric equations and thus mistakenly infers causality. Examining the relationship between restaurant smoking bans and restaurant revenues in 267 California communities, we reach two main conclusions. First, California's municipal restaurant smoking bans are endogenous in a critical way—restaurant sales growth (or something correlated with restaurant sales growth) appears to cause restaurant bans, not vice versa. Consequently, failure to control properly for trends can produce spurious "evidence" of causation. Second, ban heterogeneity (e.g., state versus local) can be exploited to sort out—or rule out—causal effects. In other words, pooling data and treating smoking bans implemented at different levels as homogenous (as many studies do) ignores an important source of information and is likely to lead to erroneous conclusions. Our analysis holds lessons for the many studies that have examined the arguably more important question of how smoking bans affect smoking rates. ( JEL L51)     

THE BOOKER DECISION AND DISCRIMINATION IN FEDERAL CRIMINAL SENTENCES

I test how federal criminal sentences changed after the Supreme Court decision U.S. v. Booker changed the sentencing guidelines from “mandatory” to “advisory.” Conditional on final guideline cell, results show Booker significantly reduced sentences, especially for women and defendants with a terminal high school degree, but less so for college graduates. This suggests discrimination among federal judges. When accounting for judges' control over final offense level, evidence regarding high school graduates and college graduates is unchanged, but evidence that sentences fell for women and the default group weakens substantially. This latter result suggests, perhaps, a new methodology by which judges applied offense levels and guideline‐conditional sentences post‐Booker.     

Autism, Empathy and Questions of Moral Agency

In moral psychology, it has long been argued that empathy is a necessary capacity of both properly developing moral agents and developed moral agency ( Blair, 2008 ; Hume et al., 1978 ). This view stands in tension with the belief that some individuals diagnosed with autism—which is typically characterized as a deficiency in social reciprocity (including empathy)—are moral agents. In this paper we propose to explore this tension and perhaps trouble how we commonly see those with autism. To make this task manageable, we will consider whether high functioning individuals diagnosed with an autism spectrum disorder are capable of empathetic responses. If they are, then they possess a capacity that, on the view above, is required for moral agency. If they are not so capable, and yet sometimes engage in moral behaviour, this casts some doubt on the claim that empathy is required for moral agency. This second possibility will necessitate an exploration of the capacity of some individuals with autism to engage in moral behaviour, giving us further grounds to re-see these individuals as moral agents.     

Accounting for Poverty: Conflicting Constructions of Family Survival in Scotland, 1855–1925

Abstract  As in England, the moral implications of pauperism were significant in the operation of the Scottish Poor Law. While the ways in which kin were distributed reflect patterns of survival embedded in local cultures, those failing to conform to an idealised family model, especially unmarried mothers, were disadvantaged, as contested relief claims indicate. Analysis considers encounters between local Inspectors and applicants using a framework that draws upon perspectives from political, moral, and particularly social economy. The outcomes of negotiation reveal how individual agency was compromised by adaptation to circumstances as much as by official and popular frames of reference.