This paper develops a gravity model of immigration. Tests of the model using panel data for 16 OECD countries for 1991-2000 confirm the model's high explanatory power, and examples illustrate its usefulness for testing other hypothesized determinants of immigration.

Measures of national product can be misleading because there is nonmarket production. There are also distortions due to transactional activities, which are expenditures to support transactions, not actual output consumed. For 1950-89, this study recalculates output for the United States,...

In one of the most original papers published in <i>Challenge,</i> Hendrik Van den Berg and Matthew Van den Berg try to determine whether markets are really complete enough to make the invisible hand a relevant concept. They attempt to calculate what proportion of our transactions does qualify. Some...

The invisible hand metaphor dates to the 18th century but only gained prominence after neoclassical analysis came to dominate economic thinking late 19th century. Neoclassical economists rigorously established the assumptions necessary for an economy to operate in accordance with the metaphor,...

After Harrod and Domar independently developed a dynamic Keynesian circular flow model to illustrate the instability of a growing economy, mainstream economists quickly reduced their model to a supply side-only growth model, which they subsequently rejected as too simplistic and replaced with...