THE EMPIRICAL RELIABILITY OF MONETARY AGGREGATES AS INDICATORS: 1983–1987

It is widely believed that monetary aggregates have failed to predict economic performance over 1983-87. This paper observes that the traditional definition of money (M1 lessother checkable deposits, or M1A) shows no evidence of structural change, and yields lower prediction errors for both real GNP and inflation over 1983-87Q2 than the errors obtained using M1 or M2. If there is a mystery, it is not why MIA has done so well, but why economists abandoned it for M1 or what was once called M1B (currency, demand deposits, and other checkable deposits).     

SCARCITY AND RICARDIAN RENTS FOR CRUDE OIL*

This paper estimates scarcity rent/user cost and Ricardian rent for crude oil in Oklahoma. A model of firm behavior is proposed incorporating both development and production decisions considering crude oil as a nonrenewable natural resource. Profit maximization conditions derived from the model are applied to take into account cost differentials associated with oil found at varying depths. It is shown that oil with the highest cost is the marginal unit and it is the marginal output that determines Ricardian rent. Time series data is used to estimate equations derived from the necessary conditions. It is found that scarcity rent is a significant proportion of the price of crude oil and has increased in the past decade.     

Tattooing and Civilizing Processes: Body Modification as Self‐control*

Malgré la révolution en cours dans le tatouage en Amérique du Nord, les universitaires restent attachés à l'idée que les « fanatiques du tatouage » seraient des inadaptés sociaux. Dans cet article, des données obtenues au cours d'une observation participante de trois ans parmi des fanatiques du tatouage au Canada ouvrent la porte à une critique des interprétations psycho‐sociales privilégiées du tatouage comme étant une conduite irrationnelle, impliquant des risques (voir Carroll et coll., 2002; Roberts et Ryan, 2002). À la lumière de la sociologie figurationnelle (Elias, 1983; 1994; 1996), le tatouage est ici vu comme un acte de communication à caractère sociable et régi affectivement plutôt que comme un cas pathologique d'automutilation. Despite the ongoing revolution in the use of tattoos in North America, academic understandings of tattooing remain grounded in conceptions of “tattoo enthusiasts” as social misfits. In this paper, data from three years of participant observation with tattoo enthusiasts in Canada help critique preferred social‐psychological interpretations of tattooing as irrational, “risk‐taking behaviour” (see Carroll et al., 2002; Roberts and Ryan, 2002). Through the lens of figurational sociology (Elias, 1983; 1994; 1996), tattooing is interpreted in this paper as a pro‐social and affectively regulated act of communication, rather than a pathological instance of self‐injury.     

TREND OF SUBJECTS PUBLISHED IN ECONOMICS JOURNALS 1969–2007

We describe the evolution of subject areas published in economics over four decades and calculate the percentage of articles published in each Journal of Economic Literature (JEL) subject category, with and without weighting by Eigenfactor.com 's Article Influence (AI). Finance, Development, and Industrial Organization have seen their share of total articles rise over the past four decades while Microeconomics, Macroeconomics, and Labor have seen their share fall. We use JEL codes to define specialty journals and find that more specialty journals tend to increase the overall percentage share for that subject. This effect is ambiguous when re‐weighted by AI. (JEL A11, A14)     

THE TERMS OF TRADE AND THE INTERNATIONAL COORDINATION OF FISCAL POLICY

This paper develops an example of a noncooperative game between fiscal authorities in two countries. The key strategic link between countries is the terms of trade. An equilibrium without cooperation is characterized by excessive tax rates and public spending levels in each country. The outcome is analogous to the Nash equilibrium of the static optimal tarif game in trade theory. But in this model there is also a dynamic distortion caused by noncooperative behaviour. This dynamic distortion depresses capital accumulation and reduces the equilibrium capital stock in each country. Numerical examples suggest a significant welfare benefit of cooperation.