The treatment of tax incidence in most principles textbooks is incomplete and misleading. This anomaly results from treating tax incidence as a short‐run phenomenon. This paper briefly reviews the theory regarding tax incidence and surveys the leading textbooks in regard to their treatment of...

This paper analyzes the welfare implications of price regulation in competitive market structures. The analysis is performed in a general equilibrium framework where individuals are producers of the goods they consume. These produced goods in the economy are designated as good A, good B, and q,...

Price theory has traditionally analyzed resource allocation in the money‐exchange market. In all modern economies, however, governments also allocate resources. The process which resolves competing claims on government‐allocated resources has been called the political market. In the...

The topic of this paper is the modeling of the firm's demand for money relative to its portfolio of wealth. The specific goal of this research is the establishment of predictors of the business demand for money, which are normally neglected in aggregate models. Since the neglected predictors...

It is widely recognized that expectations of future events have significant impact on exchange rates movements. The role of expectations in exchange rate movements can be considered as a source of exchange rate estimation error. In a sense it is a pity that the majority of empirical evidence on...

Many economists find it necessary to forecast inflation locally or nationally based on the annual Consumer Price Index (CPI) value before the figures are released from the Bureau of Labor Statistics. There is no regular “official release date,” although the BLS usually targets the 20th of...

Suppose God were a convex combination of Laplace and Jeremy Bentham. As did Laplace, God sees a world determined by differential equations and initial conditions,

Over the past decade, Allan Cartter's model of the utility maximizing union and the institutional principles upon which it is based have provided the basis for much of the neoclassical study of union behavior. The most fundamental component of Cartter's model is the union's utility function,...

The rational expectations‐permanent income hypothesis (REPIH) is nothing new. The initial REPIH of Hall (1978) suggested that no other variable observed in earlier periods, given the inclusion of consumption lagged one period, should have any explanatory power for current consumption (Hall,...

The process of occupational upgrading has received a significant amount of attention from labor economists in recent years. This is not surprising given that approximately ten percent of the American labor force will change occupations each year (Byrne, 1975; Rosenfeld, 1979) and that labor mobility...