Atlantic Economic Journal

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Lifetime Achievement Award to Ralph W. Pfouts.
The thirty-fifth anniversary of the International Atlantic Economic Society was celebrated in October 2008 at our Montreal conference. As part of that event, the first Lifetime Achievement Award was . . .

Government funding policy towards communicable diseases.(ORIGINAL PAPER)
Introduction The paper investigates the impact of government support of a potential entrant in an industry given a monopoly firm producing a pharmaceutical drug for the treatment of a communicable . . .

Disaggregating education production.(ORIGINAL PAPER)
Introduction A particular weakness of the education production function literature is that production is measured after a series of treatments and reflects aggregation across treatments. The liter . . .

Partitions and coalitional stability with non-dominant and dominant members.(ORIGINAL PAPER)
Introduction The development of game theory has been characterized by the search for separate equilibria in cooperative and non-cooperative games. But, as Aumann (2003) has commented, game theory . . .

Housing attribute preferences in a Northern Mexico metropolitan economy.(ORIGINAL PAPER)
Introduction International studies of housing attribute valuations have been conducted for numerous metropolitan markets. Examples include Africa, Europe, Asia, and North America. Similar research . . .

Income inequality, human capital, and income growth: evidence from a state-level VAR analysis.(ORIGINAL PAPER)
Introduction There is now a large and growing literature, both theoretical and empirical, examining the relationship between income inequality and economic growth. In much of the theoretical liter . . .

Exchange rates and concurrent leasing and selling in durable-goods monopoly.(ORIGINAL PAPER)
Introduction One of the more enduring puzzles of the theoretical durable-goods literature is the real world existence of large numbers of firms that simultaneously sell and lease their durable out . . .

Ability, openness, and managerial decision making.
Introduction Managerial decision making is very important for various kinds of organizations. Companies spend significant amounts of resources to find CEOs to match their needs. As a manager plays . . .

Good and bad news on capital market return ellipticity.(ANTHOLOGY)
Since the seminal paper of Owen and Rabinovitch (1983; "On the Class of Elliptical Distributions and Their Application to the Theory of Portfolio Choice." Journal of Finance 38 (3), 745-752) the key . . .

Business cycle dynamics in a small open economy.(ANTHOLOGY)
The small open economy (SOE) real business cycle model of Mendoza (AER, 1991, 797-818) uses Greenwood, Hereowitz, and Hoffman (AER, 1988, 402-17) preferences in order to yield a countercyclical trad . . .

Clarence C. Morrison: 1932-2008.
To live in hearts we leave behind, is not to die. Thomas Campbell [ILLUSTRATION OMITTED] There is a loud silence with the passing of our dear friend and colleague, Clarence C. Morrison, Profes . . .

A tribute to Clarence Morrison.
On August 6, 2008, Clarence C. Morrison (age 76) passed away. With his passing, many of us lost a trusted and honorable friend and/or mentor, the International Atlantic Economic Society (IAES) lost . . .

Black-white wage differentials in a multiple sample selection bias model.
Introduction In estimating the wage differentials between black and white workers, it is important to adjust for the sample selection bias in the wage equation. It has been demonstrated that most . . .

On indexed bonds and aggregate demand elasticity.
Introduction Inflation indexed government bonds, which were first issued by the Commonwealth of Massachusetts during the Revolutionary War, (1) have become rather popular and widely used in the in . . .

Gray marketing: does it hurt the manufacturers?
Introduction Parallel importing has attracted increasing interest in the international practice, and concern to manufacturers and retailers since the mid-1980s (Mitchell 1998; Eagle et al. 2003). . . .

A short-run crude oil price forecast model with ratchet effect.
Introduction Crude oil markets have been heavily influenced by OPEC's behavior for almost 30 years. In the 1980s, OPEC changed its pricing policies to allow the marketplace to have a larger impact . . .

Pump prices and oil prices: a tale of two directions.
Introduction It has been argued that gasoline prices adjust more quickly to crude oil price increases than to price decreases. Empirical results supporting this contention can be found in Asplund . . .

The JEC revisited: did debt undermine stability?(ORIGINAL PAPER)
Introduction The Joint Executive Committee (JEC) of the eastern trunk line railroads (1879-1887) is one of the most thoroughly studied cartels in the entire economic literature, because it is one . . .

A puzzle or a choice: uniform pricing for motion pictures at the box.
Introduction Price variation over differentiated products is the profit-maximizing solution corresponding to differing price elasticities of demand. A significant exception, the uniform price acro . . .

Incremental state higher education expenditures.(ORIGINAL PAPER)
Introduction This study analyzes various measures of state expenditures on higher education using a panel of data from 45 states for the years 1986 through 2005. (1) Results of panel stationarity . . .

Rational inattention and choice under risk: explaining violations of expected utility through a Shannon Entropy formulation of t
Introduction The falsification of expected utility theory (EU) through experiment has led to a fruitful literature over the past 50 years in order to try to account for this discrepancy. While at . . .

Socioeconomic factors influencing longevity in Japan.(ANTHOLOGY)
Although there are no obvious reasons for this phenomenon, it is sometimes stated that, in Japan, after they are separated from their partners (due to death, divorce, etc), old men arc prone to dyin . . .

Where Lies the signaling effect of the SRP? Announcement vs. execution.(ANTHOLOGY)
Kracher and Johnson (1997 "Repurchase Announcements, Lies and False Signals," Journal of Business Ethics, vol. 16, pp. 1677-1685) argue that companies announcing Share Repurchase Program (SRP) with . . .

Remorse, risk aversion and efficiency in eBay coin auctions.(ANTHOLOGY)
Internet auctions are popular. Their ease of entry, low transaction costs, and the pervasiveness of computers make these markets accessible to almost anyone and, ultimately, very competitive. Here i . . .

Does team racial composition affect team performance in the NBA?(ANTHOLOGY)
Does Team Racial Composition Affect Team Performance in the NBA? Many amateur and professional sports teams ate composed of athletes flora different racial and demographic groups. In the National . . .

Influence of the number of statewide referenda involving emotionally-charged issues on voter turnout, 2006.(Formula)(Report)
Introduction As Putnam (2000, p. 35) states, "Voting is by a substantial margin the most common form of political activity, and it embodies the most fundamental democratic principle of equality .. . . .

Do campaign contributions and lobbying expenditures by firms create "political" capital?(Report)
Introduction In this paper we examine a simple yet important question: Are firm political contributions and lobbying a way of buying long-term influence? Specifically, our analysis examines the ex . . .

PAC contributions from sectors of the financial services industry, 1998-2002.(Financial Services Modernization Act of 1999)(poli
Introduction The purpose of this paper is to examine the relationship between campaign contributions from political action committees (PACs) representing the financial services industry and member . . .

Premarital birth among young Hispanic women: evidence from semiparametric competing risks analysis.(Statistical table)(Report)
Introduction The Aid to Families with Dependent Children (AFDC) program [replaced by Temporary Assistance for Needy Families (TANF)] was often blamed for increasing illegitimate births, declining . . .

Imperfect competition in German food retailing: evidence from state level data.(Industry overview)(Report)(Statistical data)
Introduction The European food retailing market is characterized by high and rising concentration and increased vertical dependency (Dobson et al. 2003). Politicians and economists have raised con . . .

Determinants of the allocation of volunteer time: church-related versus other non-market activities.(Report)(Statistical data)
Introduction Dating from Gary Becker's (1965) seminal work on time allocation, economists have studied a variety of time allocation decisions. One of the more interesting uses of the time allocati . . .

Single versus multi-market approach: an application to the Greek cotton market.(Statistical table)(Report)
Introduction A number of complications arise in multi-market models that create confusion regarding the proper application of the theory. Complications due to the simultaneous nature of the price . . .

Motor vehicle output and GDP, 1968-2007.(Report)(Statistical data)
Literature According to a recent National Bureau of Economic Research Working Paper by Barsky and Killian (2004), a "model that explains how an oil price shock may lower real GDP is the sectoral s . . .

Additional evidence on the effect of class attendance on academic performance.(ANTHOLOGY)
JEL A20 * C12 Professors often claim that students who attend their classes regularly receive better grades and learn more than those who do not. Romer (Journal of Economic Perspectives 7, 1993), . . .

Hedging with a new risk-aversion concept.(ANTHOLOGY)(Formula)(Brief article)
JEL D80 In this note, we apply a new definition of risk aversion to the standard hedging model where the firm (producer) is concerned with the negative impact of the shocks. From the perspective o . . .

Gun ownership and the gun control index.(ANTHOLOGY)
Keywords Gun control * Gun ownership JEL K1 Most prior research on gun control has attempted to establish a link between gun control laws and crime rates. A smaller set of work has attempted to . . .

Patent infringement and royalty rates: is litigation a 'deterrent'?(ANTHOLOGY)
JEL K41 Patent infringement cases require that a damages expert put forth a reasonable royalty calculation to assist the trier of fact in determining damages absent the ability of the patent holde . . .

Inflation in post-conflict countries: the case of Sierra Leone.(ANTHOLOGY)
JEL 050 Little formal analysis has been done on the causes of monetary disequilibrium in countries that have been ravaged by civil conflict over sustained periods of time. Sierra Leone is a case i . . .

Economics, sociology, politics, and religion: success of marketing students.(ANTHOLOGY)
JEL D71 Various recent studies show the positive impact of a person's religiosity or spirituality on his or her ethical inclination and leadership effectiveness. UCLA's Higher Education Institute' . . .

Responsibility to punish: discouraging free-riders in public goods games.(Report)
Introduction John Nash brought economists' attention to the potential for dissonance between social and individual optimums with his groundbreaking work in game theory. Similarly, the recent growt . . .

An exploration of asset returns in a production economy with relative habits.
Introduction Habit forming preferences have been notably successful in solving the equity premium puzzle. One of their most popular representations is due to Abel (1990, 1999, 2006), who shows tha . . .

Training, job upgrading, job creation and job destruction.(Report)
Introduction Equilibrium models of labour markets characterized by search frictions developed in Mortensen and Pissarides (MP hereafter) (1994, 1999a, b) are relatively new analytic tools which ha . . .

Relative responsiveness of bargaining solutions to changes in status-quo payoffs.
Introduction It is a well-known fact that several prominent bargaining solutions--such as the Nash, Kalai/Smorodinsky, equal gains, and equal sacrifice solutions, which will be defined rigorously . . .

An inquiry into the contemporary differential between female and male voter turnouts.
Introduction Following Downs' (1957) introduction of the rational voter model, there have followed numerous studies to enhance, test, and better understand the theory or variants thereof, includin . . .

The J-curve revisited: an empirical analysis for Canada.(Report)
Introduction Understanding the relationship between the exchange rate and the trade account is essential to a successful monetary and trade policy, both of which are particularly important for a s . . .

Running the numbers on lotteries and the poor: an empirical analysis of transfer payment distribution and subsequent lottery sal
This paper uses weekly lottery sales data to demonstrate a link between the distribution of government transfer payments, such as Aid to Families with Dependent Children (1) (welfare), social securi . . .

Funding shocks and optimal university admissions and financial aid policies.
Introduction On August 1, 2006, Stanford University announced that Philip H. Knight, founder and chairman of Nike, Inc., would give $105 million to its Graduate School of Business (GSB). (1) The e . . .

Did stealing signs help the 1951 NY Giants?(ANTHOLOGY)(The Echoing Green)(Book review)
JEL C10 * D00 * D80 In his recent book, The Echoing Green, Joshua Prager suggests the legendary 1951 pennant race between the New York Giants and the Brooklyn Dodgers might have been affected by t . . .

What drives road rage?(ANTHOLOGY)(Survey)
JEL R10 In 2007, for the second year in a row, Auto Vantage commissioned Prince Market Research (PMR), an independent market research company, to conduct a national opinion poll on the topic of ro . . .

Defined contribution beta when combined with a defined benefit plan.(ANTHOLOGY)
JEL G11 * G23 This research is prompted by an analysis of the retirement allocations of civilian employees of the United States Navy. These employees have the option of participating in a Defined . . .