HYSTERESIS IN UNEMPLOYMENT EVIDENCE FROM 48 U.S. STATES

Studies using standard unit-root tests generally cannot reject the hypothesis of a unit root in unemployment rates. These findings have been interpreted as supporting the hysteresis hypothesis. We demonstrate that the failure to reject the null may be due to the low power of the tests. We analyze unemployment rates of 48 U.S. contiguous states using a more powerful panel-based test which exploits cross-section restrictions on the constituent series. The critical values are simulated tailored to our sample size. We reject the null decisively, casting some doubt on the hysteresis hypothesis for the United States.     

SOCIAL DRINKING VERSUS ADMINISTERING ALCOHOL

Alcohol consumption tends to make some people (unwillingly) tell the truth, hence social drinking can serve as a signal in social contact games. We provide empirical evidence which shows that social drinking can serve as a trust facilitating mechanism. Liver cirrhosis mortality and the rate of abstainers are used to construct a novel index of moderate alcohol consumption, which correlates with trust levels in a cross‐country analysis.(JEL L14, D82, D71)     

World Cities and Global Commodity Chains: an introduction

The purpose of this special anniversary issue is to assess the possible cross-fertilization between two prominent analytical frameworks: the World City Network framework, in which researchers have studied the emergence of a globalized urban system for the provision of a host of advanced corporate services; and the Global Commodity Chain framework, in which researchers have scrutinized the interconnected functions, operations and transactions through which specific commodities are produced, distributed and consumed in a globalized economy. These two approaches have developed in parallel but have rarely been brought together. This introductory essay identifies the common roots and recent history of these two frameworks, and outlines how the six articles contribute to their theoretical and empirical cross-fertilization.     

Professional Ideology, Middle Range Theories and Knowledge Building for Social Work Practice

Please address requests for reprints to Professor F. M. Loewenberg, School of Social Work, Bar-Ilan University, 52100 Ramat Gan, Israel. Summary More effective social work practice will require increased effortstoward knowledge building and theory development. Until a unifiedsocial work theory is available social workers will choose eclecticallyrelevant theoretical formulations from the large number of middlerange theories available to them from other professional disciplines.New middle range theories and innovative theoretical formulationsappear continually, resulting in a smorgasbord of theories,from which social work practitioners can choose. This articleexamines the effectiveness of an aclectic theory base for apractice profession. In the discussion of the findings noteis taken of the need for explicating social work's professionalideology as a next step in knowledge building.     

THE DEMISE OF HOSPITAL PHILANTHROPY

We develop a one-period model of hospital and donor behavior to analyze how insurance for hospital care, various public subsidies, and other factors affect donations to hospitals. Theoretically, increased insurance coverage has an ambiguous effect on private giving. Empirical tests using time series and cross-sectional data show that the growth of private insurance and especially the introduction of Medicare and Medicaid substantially reduces private giving to hospitals. Effects of public subsidies for construction depend on whether the subsidy more closely resembles a matching or lumpsum grant.     

TWO-PART PRICING FOR A MULTI-PRODUCT MONOPOLIST

This paper examines profit-maximizing multi-part pricing arrangements by multi-product monopolists. The results indicate that prices set by such firms will deviate from the marginal-cost-pricing efficiency norm when multi-part tariffs can be set on only a subset of the firm's product line. Per unit prices will be set above marginal cost when the monopolist sells goods that are substitutes, while per unit prices for complements may be set above or below marginal cost. In either case, the pricing strategy will involve increasing the demand for goods on which an entry fee can beset.