Presents a reply to the comments of Stanley Masters on an article on the effect of plant size on interindustry wage differentials. Hypothesis of Masters on the plausibility of a spillover effect on wage differentials; Arguments against the claims of Masters. (Abstract copyright EBSCO.)

The authors conducted the Leuthold free rider experiment in Israeli classrooms and found more significant free riding than that found by Leuthold. The authors address classroom differences that may account for these results.

Utilizing a sample of 51 countries for which price leveldata for 1980 were available from stage IV of the ICP project,the paper examines the possible role of taxes in explaining thedeparture of national price levels from purchasing power parities.The results obtained in the paper suggest that...