Economics and Finance : upso

The Wealth and Poverty of Regions

Mario Polese — 2013-02-21

Author:: Mario Polese
ISBN:: 9780226673158
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226673172.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

As the world becomes more interconnected through travel and electronic communication, many believe that physical places will become less important. But as this book argues geography will matter more than ever before in a world where distance is allegedly dead. This book surveys the globe, from London and Cape Town to New York and Beijing, contending that regions rise—or fall—due to their location, not only within nations but also on the world map. The book reveals how concentrations of industries and populations in specific locales often result in minor advantages that accumulate over time, resulting in reduced prices, improved transportation networks, increased diversity, and not least of all, “buzz”—the excitement and vitality that attracts ambitious people. The book maps out how a heady mix of size, infrastructure, proximity, and cost will determine which urban centers become the thriving metropolises of the future, and which become the deserted cities of the past.

Trade in Services in the Asia-Pacific Region

Takatoshi Ito and Anne O. Krueger — 2013-02-21

Author:: TakatoshiItoAnne O.Krueger
ISBN:: 9780226386775
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226386782.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

In recent years the tremendous growth of the service sector—including international trade in services—has outstripped that of manufacturing in many industrialized nations. As the importance of services has grown, economists have begun to focus on policy issues raised by them and have tried to understand what, if any, differences there are between production and delivery of goods and services. This volume is a book-length attempt to analyze trade in services in the Asia-Pacific region. Contributors provide overviews of basic issues involved in studying the service sector; investigate the impact of increasing trade in services on the economies of Taiwan, Korea, and Hong Kong; present detailed analyses of specific service sectors (telecommunications, financial services, international tourism, and accounting); and extend our understanding of trade in services beyond the usual concept (measured in balance of payment statistics) to include indirect services and services undertaken abroad by subsidiaries and affiliates.

Topics in Empirical International Economics

Magnus Blomstrom and Linda S. Goldberg — 2013-02-21

Author:: MagnusBlomstromLinda S.Goldberg
ISBN:: 9780226060835
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226060859.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

In this volume emanating from the National Bureau of Economic Research's (NBER) program in international economics, economists address recent developments in three important areas. The first section of the book focuses on international comparisons of output and prices, and includes chapters that present new measures of product market integration, new methodology to infer relative factor price changes from quantitative data, and an ongoing capital stock measurement project. The next section features articles on international trade, including such issues as deterring child labor exploitation in developing countries, exchange rate regimes, and mapping U.S. comparative advantage across various factors. The book concludes with research on multinational corporations and includes a discussion of the long-debated issue of whether growth of production abroad substitutes for or is complementary to production growth at home. The chapters in the volume are dedicated to Robert E. Lipsey, who, for more than a half century at the NBER, contributed significantly to the broad field of empirical international economics.

Themes in the Economics of Aging

David A. Wise — 2013-02-21

Author:: David A.Wise
ISBN:: 9780226902845
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226903330.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

In the past few years, the economic ramifications of aging have garnered close attention from a group of NBER researchers led by David A. Wise. This volume continues to analyze a nexus of age-related issues. This volume begins by looking at the implications of private and public personal retirement plans, focusing in particular on the impact of 401(k) programs on retirement strategies in light of potential social security reform and factors such as annuitization and on asset accumulation. Next, the often-observed relationship between health and wealth is dissected from two different perspectives and correlated with striking increases in health-care spending over the past two decades, despite the improved health of older populations. The volume concludes with an investigation of the retirement effects of various social security provisions in both U.S. and German systems. This collection expands the current investigative focus and broadens the dialogue on a rapidly growing area of social and economic concern.

Targeting Investments in Children

Phillip B. Levine and David J. Zimmerman — 2013-02-21

Author:: Phillip B.LevineDavid J.Zimmerman
ISBN:: 9780226475813
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226475837.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

A substantial number of American children experience poverty: about 17 percent of those under the age of eighteen meet the government's definition, and the proportion is even greater within minority groups. Childhood poverty can have lifelong effects, resulting in poor educational, labor market, and physical and mental health outcomes for adults. These problems have long been recognized, and there are numerous programs designed to alleviate or even eliminate poverty; as these programs compete for scarce resources, it is important to develop a clear view of their impact as tools for poverty alleviation. This book tackles the problem of evaluating these programs by examining them using a common metric: their impact on earnings in adulthood. The volume's chapters explore a variety of issues, such as the effect of interventions targeted at children of different ages, and study a range of programs, including child care, after-school care, and drug prevention.

Studies on the Abuse and Decline of Reason

F. A. Hayek and Bruce Caldwell — 2013-02-21

Author:: F. A. HayekBruceCaldwell
ISBN:: 9780226321097
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, History of Economic Thought
DOI:: 10.7208/chicago/9780226321127.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

This book presents a study of social phenomena. How to best and most accurately study social interactions has long been debated intensely, and there are two main approaches: the positivists, who ignore intent and belief and draw on methods based in the sciences; and the nonpositivists, who argue that opinions and ideas drive action and are central to understanding social behavior. The author's opposition to the positivists and their claims to scientific rigor and certainty in the study of human behavior is a running theme of the book, which argues that the vast number of elements whose interactions create social structures and institutions make it unlikely that social science can predict precise outcomes. Instead, it contends, we should strive to simply understand the principles by which phenomena are produced. For this text, this modesty of aspirations went hand in hand with the author's concern over widespread enthusiasm for economic planning. As a result, these chapters are relevant to ongoing debates within the social sciences, and to discussion about the role government can and should play in the economy.

Studies of Labor Market Intermediation

David H. Autor — 2013-02-21

Author:: David H.Autor
ISBN:: 9780226032887
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226032900.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

From the traditional craft hiring hall to the Web site Monster.com, a multitude of institutions exist to facilitate the matching of workers with firms. The diversity of such Labor Market Intermediaries (LMIs) encompasses criminal records providers, public employment offices, labor unions, temporary help agencies, and centralized medical residency matches. This book analyzes how these third-party actors intercede where workers and firms meet, thereby aiding, impeding, and, in some cases, exploiting the matching process. By building a conceptual foundation for analyzing the roles that these understudied economic actors serve in the labor market, this book develops both a qualitative and quantitative sense of their significance to market operation and worker welfare. Cross-national in scope, this book coalesces research on a set of market institutions that are typically treated as isolated entities, thus setting a research agenda for analyzing the changing shape of employment in an era of rapid globalization and technological change.

The Structure of Wages

Edward P. Lazear and Kathryn L. Shaw — 2013-02-21

Author:: Edward P.LazearKathryn L.Shaw
ISBN:: 9780226470504
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226470511.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

The distribution of income, the rate of pay raises, and the mobility of employees are crucial to understanding labor economics. Although research abounds on the distribution of wages across individuals in the economy, wage differentials within firms remain a mystery to economists. An effort to examine linked employer–employee data across countries, this book analyzes labor trends and their institutional background in the United States and eight European countries. A team of contributors reveal how a rising wage variance rewards star employees at a higher rate than ever before, how talent becomes concentrated in a few firms over time, and how outside market conditions affect wages in the twenty-first century. The book examines wage and income differences from a comparative perspective within and between countries such as Denmark, Italy, and the Netherlands.

Structural Impediments to Growth in Japan

Magnus Blomstrom, Jennifer Corbett, and Fumio Hayashi — 2013-02-21

Author:: MagnusBlomstromJenniferCorbettFumioHayashi
ISBN:: 9780226060217
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226060231.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

As Japan's decade-long economic stagnation continues, there has been much analysis of the immediate macroeconomic problems that confront the Japanese economy. This book-length academic treatment of this issue looks past the short-run challenges to the future of Japan, and highlights the intermediate and longer-term issues that country faces. A team of contributors present nine chapters offering a comprehensive assessment of those economic difficulties and addressing a range of specific issues, from financial restructuring and the impact of the aging Japanese population to corporate behavior, public lending, employment practices, and innovative capacity. In each chapter, contributors identify and outline problems and concerns, carefully pose provocative questions, and in many instances present concrete suggestions for improvement.

Social Security Programs and Retirement around the World

Jonathan Gruber and David A. Wise — 2013-02-21

Author:: JonathanGruberDavid A.Wise
ISBN:: 9780226310176
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226310008.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

The future of social security is troubled, both in the United States and in most other developed countries with aging populations. As improvements in health care and changes in life styles enable retirees to live longer than ever before, the stress on national budgets will increase substantially. This book examines the consequences of reforming retirement benefits in a dozen nations. Drawing on the work of an international group of economists, the chapters argue that social security programs provide strong incentives for workers to leave the labor force by retiring and taking the benefits to which they are entitled. By penalizing work, social security systems magnify the increased financial burden caused by aging populations, thus contributing to the insolvency of the system. This book is a model of comparative analysis that evaluates the effects of illustrative policies for countries facing the impending rapid growth of social security benefits.

Social Security Programs and Retirement around the World

Jonathan Gruber and David A. Wise — 2013-02-21

Author:: JonathanGruberDavid A.Wise
ISBN:: 9780226309484
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226309507.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Many countries have social security systems that are currently financially unsustainable. Economists and policy makers have long studied this problem and identified two key causes. First, as declining birth rates raise the share of older persons in the population, the ratio of retirees to benefits-paying employees increases. Second, as falling mortality rates increase lifespan, retirees receive benefits for longer than in the past. Further exacerbating the situation, the provisions of social security programs often provide strong incentives to leave the labor force. This book offers comparative analysis from twelve countries and examines the issue of age in the labor force. Chapters analyzes the relationship between incentives to retire and the proportion of older persons in the workforce, the effects that reforming social security would have on the employment rates of older workers, and how extending labor force participation will affect program costs. Dispelling the myth that employing older workers takes jobs away from the young, this volume challenges a raft of existing assumptions about the relationship between old and young people in the workforce.

Social Security Programs and Retirement around the World

Jonathan Gruber and David A. Wise — 2013-02-21

Author:: JonathanGruberDavid A.Wise
ISBN:: 9780226310183
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226309989.001.0001
Published in print:: 2004
Published Online:: 2013-02-21

This book represents the second stage of an ongoing research project studying the relationship between social security and labor. The first volume revealed enormous disincentives to continued work at older ages in developed countries. Provisions of many social security programs typically encourage retirement by reducing pay for work, inducing older employees to leave the labor force early and magnifying the financial burden caused by an aging population. At a certain age there is simply no financial benefit to continuing to work. In this volume, the authors turn to a country-by-country analysis of retirement behavior based on micro-data. The result of research compiled by teams in twelve countries, the volume shows an almost uniform correlation between levels of social security incentives and retirement behavior in each country. The estimates also show that the effect is strikingly uniform in countries with very different cultural histories, labor market institutions, and other social characteristics.

Social Security Policy in a Changing Environment

Jeffrey R. Brown, Jeffrey B. Liebman, and David A. Wise — 2013-02-21

Author:: Jeffrey R.BrownJeffrey B.LiebmanDavid A.Wise
ISBN:: 9780226076485
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226076508.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

This book analyzes the changing economic and demographic environment in which social insurance programs that benefit elderly households will operate. It also explores how these ongoing trends will affect future beneficiaries, under both the current social security program and potential reform options. This book probes the challenge posed to Social Security by an aging population. The chapters examine trends in private sector retirement saving and health care costs, as well as the uncertain nature of future demographic, economic, and social trends—including marriage and divorce rates and female participation in the labor force. Recognizing the ambiguity of the environment in which the Social Security system must operate and evolve, this book explores factors that policymakers must consider in designing policies that are resilient enough to survive in an economically and demographically uncertain society..

Social Security Pension Reform in Europe

Martin Feldstein and Horst Siebert — 2013-02-21

Author:: MartinFeldsteinHorstSiebert
ISBN:: 9780226241081
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226241913.001.0001
Published in print:: 2002
Published Online:: 2013-02-21

Social Security in the United States and in Europe is at a critical juncture. In this book, a number of chapters discuss the challenges facing Social Security reform in the aging societies of Europe. A remarkable range of European nations — Germany, France, Finland, the Netherlands, Poland, Romania, Italy, Sweden, the United Kingdom, and Hungary — have implemented or are about to implement mixed Social Security systems that combine a traditional defined benefit of the pay-as-you-go system with an individual retirement account defined contribution of a capital-funded system. The chapters here highlight the problems that the European pension reform process faces and how it differs from that of the United States.

Social Security

Jagadeesh Gokhale — 2013-02-21

Author:: Jagadeesh Gokhale
ISBN:: 9780226300337
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226300368.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Many of us suspect that Social Security faces eventual bankruptcy. But the government projects its future finances using long outdated methods. Employing a more up-to-date approach, this book argues that the program faces insolvency far sooner than previously thought. To assess Social Security's fate more accurately under current and alternative policies, the book constructs a detailed simulation of the forces shaping American demographics and the economy to project their future evolution. It then uses this simulation to analyze six prominent Social Security reform packages—two liberal, two centrist, and two conservative—to demonstrate how far they would restore the program's financial health and which population groups would be helped or hurt in the process.

Shareholder Democracies?

Mark Freeman, Robin Pearson, and James Taylor — 2013-02-21

Author:: Mark Freeman, Robin Pearson, James Taylor
ISBN:: 9780226261874
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226261881.001.0001
Published in print:: 2011
Published Online:: 2013-02-21

Understanding the challenges of corporate governance is central to a comprehension of the economic dynamics driving corporations today. Among the most important institutions in capitalism today, corporations and joint-stock companies had their origins in Europe during the seventeenth and eighteenth centuries. And as they became more prevalent, the issue of internal governance became more pressing. At stake—and very much contested—was the allocation of rights and obligations among shareholders, directors, and managers. This account of the development of corporate governance in Britain and Ireland during its earliest stages highlights the role of political factors in shaping the evolution of corporate governance as well as the important debates that arose about the division of authority and responsibility. Political and economic institutions confronted similar issues, including the need for transparency and accountability in decision making and the roles of electors and the elected, and this book emphasizes how political institutions—from election procedures to assemblies to annual reporting—therefore provided apt models upon which companies drew readily.

Shared Capitalism at Work

Douglas L. Kruse, Richard B. Freeman, and Joseph R. Blasi — 2013-02-21

Author:: Douglas L.KruseRichard B.FreemanJoseph R.Blasi
ISBN:: 9780226056951
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226056968.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

The historical relationship between capital and labor has evolved in the past few decades. One particularly noteworthy development is the rise of shared capitalism, a system in which workers have become partial owners of their firms and thus, in effect, both employees and stockholders. Profit sharing arrangements and gain-sharing bonuses, which tie compensation directly to a firm's performance, also reflect this new attitude toward labor. This book analyzes the effects of this trend on workers and firms. The chapters focus on four main areas: the fraction of firms that participate in shared capitalism programs in the United States and abroad, the factors that enable these firms to overcome classic free rider and risk problems, the effect of shared capitalism on firm performance, and the impact of shared capitalism on worker well-being. This book provides essential studies for understanding the increasingly important role of shared capitalism in the modern workplace.

Seeking a Premier Economy

David Card, Richard Blundell, and Richard B. Freeman — 2013-02-21

Author:: DavidCardRichardBlundellRichard B.Freeman
ISBN:: 9780226092843
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226092904.001.0001
Published in print:: 2004
Published Online:: 2013-02-21

In the 1980s and 1990s, successive United Kingdom governments enacted a series of reforms to establish a more market-oriented economy, closer to the American model and further away from its Western European competitors. Today, the United Kingdom is one of the least regulated economies in the world, marked by transformed welfare and industrial relations systems and broad privatization. Virtually every industry and government program has been affected by the economic reforms, from hospitals and schools to labor unions and jobless benefit programs. This book focuses on the labor and product market reforms that directly impacted productivity, employment, and inequality. The questions asked are provocative: How did the United Kingdom manage to stave off falling earnings for lower paid workers? What role did the reforms play in rising income inequality and trends in poverty? At the same time, what reforms also contributed to reduced unemployment and the accelerated growth of real wages? The comparative microeconomic approach of this book yields the most credible evaluation possible, focusing on closely associated outcomes of particular reforms for individuals, firms, and sectors.

Science and Engineering Careers in the United States

Richard B. Freeman and Daniel L. Goroff — 2013-02-21

Author:: Richard B.FreemanDaniel L.Goroff
ISBN:: 9780226261898
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226261904.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

Beginning in the early 2000s, there was an upsurge of national concern over the state of the science and engineering job market that sparked a plethora of studies, commission reports, and a presidential initiative, all stressing the importance of maintaining American competitiveness in these fields. This book provides an academic study to probe the issues that underlie these concerns. This volume provides new information on the economics of the postgraduate science and engineering job market, addressing such topics as the factors that determine the supply of PhDs, the career paths they follow after graduation, and the creation and use of knowledge as it is reflected by the amount of papers and patents produced. Chapters also explore the tensions between industry and academe in recruiting graduates, the influx of foreign-born doctorates, and the success of female doctorates. The book raises new questions about stimulating innovation and growth in the American economy.

Scanner Data and Price Indexes

Robert C. Feenstra and Matthew D. Shapiro — 2013-02-21

Author:: Robert C.FeenstraMatthew D.Shapiro
ISBN:: 9780226239651
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226239668.001.0001
Published in print:: 2002
Published Online:: 2013-02-21

Every time you buy a can of tuna or a new television, its bar code is scanned to record its price and other information. These “scanner data” offer a number of attractive features for economists and statisticians, because they are collected continuously, are available quickly, and record prices for all items sold, not just a statistical sample. But scanner data also present a number of difficulties for current statistical systems. This book assesses both the promise and the challenges of using scanner data to produce economic statistics. Three chapters in this book present the results of work in progress at statistical agencies in the U.S., United Kingdom, and Canada, including a project at the U.S. Bureau of Labor Statistics to investigate the feasibility of incorporating scanner data into the monthly Consumer Price Index. Other chapters demonstrate the enormous potential of using scanner data to test economic theories and estimate the parameters of economic models, and provide solutions for some of the problems that arise when using scanner data, such as dealing with missing data.

Saving the Nation

Margherita Zanasi — 2013-02-21

Author:: Margherita Zanasi
ISBN:: 9780226978734
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226978741.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

Economic modernity is so closely associated with nationhood that it is impossible to imagine a modern state without an equally modern economy. Even so, most people would have difficulty defining a modern economy and its connection to nationhood. This book explores this connection by examining the first nation-building attempt in China after the fall of the empire in 1911. Challenging the assumption that nations are products of technological and socioeconomic forces, the book argues that it was notions of what constituted a modern nation that led the Nationalist nation-builders to shape China's institutions and economy. In their reform effort, they confronted several questions: What characterized a modern economy? What role would a modern economy play in the overall nation-building effort? And how could China pursue economic modernization while maintaining its distinctive identity? The book shows how these questions were negotiated and contested within the Nationalist Party. Silenced in the Mao years, these dilemmas are reemerging today as a new leadership once again redefines the economic foundation of the nation.

Risky Behavior among Youths

Jonathan Gruber — 2013-02-21

Author:: JonathanGruber
ISBN:: 9780226310138
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226309972.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

Every day young people engage in risky behaviors that affect not only their immediate well-being but their long-term health and safety. These chapters apply diverse economic analyses to a wide range of unsafe activities, including teen drinking and driving, smoking, drug use, unprotected sex, and criminal activity. Economic principles are further applied to mental health and performance issues such as teenage depression, suicide, nutritional disorders, and high school dropout rates. Together, the chapters yield notable findings: price and regulatory incentives are critical determinants of high-risk behavior, suggesting that youths do apply some sort of cost/benefit calculation when making decisions; the macroeconomic environment in which those decisions are made matters greatly; and youths who pursue high-risk behaviors are significantly more likely to engage in similar behaviors as adults. This volume provides both a data source for public policy makers and a clear affirmation of the usefulness of economic analysis to our understanding of risky behavior.

The Risks of Financial Institutions

Mark Carey and Rene M. Stulz — 2013-02-21

Author:: MarkCareyRene M.Stulz
ISBN:: 9780226092850
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Financial Economics
DOI:: 10.7208/chicago/9780226092980.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

Until about twenty years ago, the consensus view on the cause of financial-system distress was fairly simple: a run on one bank could easily turn to a panic involving runs on all banks, destroying some and disrupting the financial system. Since then, however, a series of events—such as emerging-market debt crises, bond-market meltdowns, and the Long-Term Capital Management episode—has forced a rethinking of the risks facing financial institutions and the tools available to measure and manage these risks. This book examines the various risks affecting financial institutions and explores a variety of methods to help institutions and regulators more accurately measure and forecast risk. The contributors—from academic institutions, regulatory organizations, and banking—bring a wide range of perspectives and experience to the issue. The result is a volume that points a way forward to greater financial stability and better risk management of financial institutions.

Risk Aspects of Investment-Based Social Security Reform

John Y. Campbell and Martin Feldstein — 2013-02-21

Author:: John Y.CampbellMartinFeldstein
ISBN:: 9780226092553
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic Systems
DOI:: 10.7208/chicago/9780226092560.001.0001
Published in print:: 2000
Published Online:: 2013-02-21

The United States' current social security system operates on a pay-as-you-go basis; benefits are paid almost entirely out of current revenues. As the ratio of retirees to taxpayers increases, concern about the high costs of providing benefits in a pay-as-you-go system has led economists to explore other options. One involves “prefunding,” in which a person's withholdings are invested in financial instruments, such as stocks and bonds, the eventual returns from which would fund his or her retirement. The risks such a system would introduce — such as the volatility in the market prices of investment assets — are the focus of this offering from the National Bureau of Economic Research. Exploring the issues involved in measuring risk and developing models to reflect the risks of various investment-based systems, economists evaluate the magnitude of the risks that both retirees and taxpayers would assume. The insights that emerge show that the risk is actually moderate relative to the improved return, as well as being balanced by the ability of an investment-based system to adapt to differences in individual preferences and conditions.

Research Findings in the Economics of Aging

David A. Wise — 2013-02-21

Author:: David A.Wise
ISBN:: 9780226903064
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226903088.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

The baby boom generation's entry into old age has led to an unprecedented increase in the elderly population. The social and economic effects of this shift are significant, and in this book, a group of leading researchers takes an eclectic view of the subject. Among the broad topics discussed are work and retirement behavior, disability, and their relationship to the structure of retirement and disability policies. While choices about when to retire are made by individuals, these decisions are influenced by a set of incentives, including retirement benefits and health care, and this volume includes cross-national analyses of the effects of such programs on these decisions. Furthermore, the volume also offers in-depth analysis of the effects of retirement plans, employer contributions, and housing prices on retirement. It explores well-established relationships among economic circumstances, health, and mortality, as well as the effects of poverty and lower levels of economic development on health and life satisfaction. By combining micro and macro evidence, this volume continues a tradition of expanding the research agenda on the economics of aging.

The Regionalization of the World Economy

Jeffrey A. Frankel — 2013-02-21

Author:: Jeffrey A.Frankel
ISBN:: 9780226259956
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226260228.001.0001
Published in print:: 1997
Published Online:: 2013-02-21

Regional economic arrangements such as free trade areas (FTAs), customs unions, and currency blocs, have become increasingly prevalent in the world economy. Both pervasive and controversial, regionalization has some economists optimistic about the opportunities it creates and others fearful that it may corrupt fragile efforts to encourage global free trade. Including both empirical and theoretical studies, this volume addresses several questions: Why do countries adopt FTAs and other regional trading arrangements? To what extent have existing regional arrangements actually affected patterns of trade? What are the welfare effects of such arrangements? Several chapters explore the economic effects of regional arrangements on patterns of trade, either on price differentials or via the gravity model on bilateral trade flows. In addition, this book examines the theoretical foundation of the gravity model. Making extensive use of the gravity model of bilateral trade, several chapters explore the economic effects of regional arrangements. In addition, this book examines the theoretical foundation of the gravity model.

Regional and Global Capital Flows

Takatoshi Ito Ito and Anne O. Krueger — 2013-02-21

Author:: Takatoshi ItoItoAnne O.Krueger
ISBN:: 9780226386768
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226387017.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

The volume of capital flows between industrial and developing countries has grown dramatically in the past decade and has become a major issue in a world that is increasingly “globalized.” Here, two experts on this topic have assembled a group of scholars who address different types of capital flows—bank lending, bonds, direct foreign investment—and the implications they hold for economic performance. With its particular focus on the Asian financial crises, this work presents a new model which is concerned with the role of private capital flows.

Reforming the Welfare State

Richard B. Freeman, Birgitta Swedenborg, and Robert H. Topel — 2013-02-21

Author:: Richard B.FreemanBirgittaSwedenborgRobert H.Topel
ISBN:: 9780226261928
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226261911.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Over the course of the twentieth century, Sweden carried out one of the most ambitious experiments by a capitalist market economy in developing a large and active welfare state. Sweden's generous social programs and the economic equality they fostered became an example for other countries to emulate. Of late, Sweden has also been much discussed as a model of how to deal with financial and economic crisis, due to the country's recovery from a banking crisis in the mid-1990s. At that time economists heatedly debated whether the welfare state caused Sweden's crisis and should be reformed—a debate with clear parallels to current concerns over capitalism. Bringing together leading economists, this book examines Sweden's policies in response to the mid-1990s crisis and the implications for the subsequent recovery. Among the issues investigated are the way changes in the labor market, tax and benefit policies, local government policy, industrial structure, and international trade affected Sweden's recovery. The way that Sweden addressed its economic challenges provides valuable insight into the viability of large welfare states, and more broadly, into the way modern economies deal with crisis.

The Rate and Direction of Inventive Activity Revisited

Josh Lerner and Scott Stern — 2013-02-21

Author:: JoshLernerScottStern
ISBN:: 9780226473031
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226473062.001.0001
Published in print:: 2012
Published Online:: 2013-02-21

While the importance of innovation to economic development is widely understood, the conditions conducive to it remain the focus of much attention. This volume offers theoretical and empirical contributions to questions relating to the economics of innovation and technological change while revisiting the findings of a classic book. Central to the development of new technologies are institutional environments, and among the topics discussed here are the roles played by universities and other nonprofit research institutions, and the ways in which the allocation of funds between the public and private sectors affects innovation. Other chapters examine the practice of open research and how the diffusion of information technology influences the economics of knowledge accumulation.

Prudential Supervision

Frederic S. Mishkin — 2013-02-21

Author:: Frederic S.Mishkin
ISBN:: 9780226531885
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Financial Economics
DOI:: 10.7208/chicago/9780226531939.001.0001
Published in print:: 2002
Published Online:: 2013-02-21

Since banking systems play a crucial role in maintaining the overall health of the economy, the adverse effects of poorly supervised systems may be quite severe. Without some form of vigilant external oversight, banking systems could fall prey to excessive risk taking, moral hazard, and corruption. Prudential supervision provides that oversight, using government regulation and monitoring to ensure the soundness of the banking system and, by extension, the economy at large. The contributors to this volume examine the current state of prudential supervision, focusing on fundamental issues and key pragmatic concerns. Why is prudential supervision so important? What kinds of excess must it guard against? What particular forms does it take? Which of these are the most effective deterrents against mismanagement and system overload in today's rapidly shifting financial climate? The contributors foresee a continued movement beyond simple regulatory rules in banking and toward a more active evaluation and supervision of a bank's risk management practices.

Producer Dynamics

Timothy Dunne, J. Jensen, and Mark J. Roberts — 2013-02-21

Author:: TimothyDunneJ.JensenMark J.Roberts
ISBN:: 9780226172569
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Microeconomics
DOI:: 10.7208/chicago/9780226172576.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

The Census Bureau has recently begun releasing official statistics that measure the movements of firms in and out of business and workers in and out of jobs. The economic analyses in this book exploit this newly available data on establishments, firms, and workers, to address issues in industrial organization, labor, growth, macroeconomics, and international trade. The volume brings together a group of economists to probe topics such as firm dynamics across countries; patterns of employment dynamics; firm dynamics in nonmanufacturing industries such as retail, health services, and agriculture; employer-employee turnover from matched worker/firm data sets; and turnover in international markets.

The Problems of Disadvantaged Youth

Jonathan Gruber — 2013-02-21

Author:: JonathanGruber
ISBN:: 9780226309453
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226309477.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

One of the most important public policy issues in the United States is how to improve the life prospects of disadvantaged youth who, in their formative years, face low-quality school systems, poor access to health care, and high-crime environments. This book includes a broad range of research examining various aspects of disadvantage, and ways of increasing the ability of low-income youth to improve their circumstances later in life. Taking an empirical economics perspective, its nine chapters assess the causal impacts of disadvantage on youth outcomes, and how policy interventions can alleviate those impacts. Each chapter develops a framework to describe the relationship between youth and later life outcomes, addressing such factors as educational opportunity, health, neighborhood crime rates, and employment. The book documents the serious short- and long-term negative consequences of childhood disadvantage and provides nuanced evidence of the impact of public policy designed to help needy children.

Price Index Concepts and Measurement

W. Diewert, John Greenlees, and Charles R. Hulten — 2013-02-21

Author:: W.DiewertJohnGreenleesCharles R.Hulten
ISBN:: 9780226148557
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226148571.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

The report of the National Research Council Panel on Conceptual, Measurement, and Other Statistical Issues in Developing Cost-of-Living Indexes (COLI) addresses all the fundamental issues in consumer price measurement. The authors compare hedonic and matched-model indexes for apparel prices in the United States using Sears catalogue data over the period 1914–1993, and compare the resulting indexes with the corresponding Bureau of Labor Statistics apparel index over the same period. This book provides a brief detail of the COLI concept, quality change and new goods, and index scope. The Consumer Price Index (CPI) is constructed in part using a Laspeyres-type fixed weight index formula that does not reflect the potential for consumer substitution in response to relative price changes. The COLI approach to CPI index construction is superior to either the Cost-of-Goods Index or test approaches, but it should be noted that the test approach can be useful on occasion as a supplement to the economic approach to index construction. Thus, the book provides a discussion of how the new manuals tried to present reasonable principles rather than specific rules. These manuals also tried to harmonize their contents so that they would not contradict each other.

Preventing Currency Crises in Emerging Markets

Sebastian Edwards and Jeffrey A. Frankel — 2013-02-21

Author:: SebastianEdwardsJeffrey A.Frankel
ISBN:: 9780226184944
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226185057.001.0001
Published in print:: 2002
Published Online:: 2013-02-21

Economists and policymakers are still trying to understand the lessons recent financial crises in Asia and other emerging market countries hold for the future of the global financial system. This book explores the causes of and effective policy responses to international currency crises. Topics covered include exchange rate regimes, contagion (transmission of currency crises across countries), the current account of the balance of payments, the role of private sector investors and of speculators, the reaction of the official sector (including the multilaterals), capital controls, bank supervision and weaknesses, and the roles of cronyism, corruption, and large players (including hedge funds). Balancing detailed case studies, cross-country comparisons, and theoretical concerns, this book aims to contribute to ongoing efforts to understand and prevent international currency crises.

The Power of Productivity

William W. Lewis — 2013-02-21

Author:: William W. Lewis
ISBN:: 9780226476766
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226477008.001.0001
Published in print:: 2004
Published Online:: 2013-02-21

The disparity between rich and poor countries is the most serious, intractable problem facing the world today. The chronic poverty of many nations affects more than the citizens and economies of those nations; it threatens global stability as the pressures of immigration become unsustainable and rogue nations seek power and influence through extreme political and terrorist acts. To address this tenacious poverty, a vast array of international institutions has pumped billions of dollars into these nations in recent decades, yet despite this infusion of capital and attention, roughly five billion of the world's six billion people continue to live in poor countries. What isn't working? And how can we fix it? This book provides answers to these questions. The book draws on extensive microeconomic studies of thirteen nations over twelve years—conducted by the Institute itself—to counter virtually all prevailing wisdom about how best to ameliorate economic disparity. The research, which included studying everything from state-of-the-art auto makers to black-market street vendors and mom-and-pop stores, conclusively demonstrates that, contrary to popular belief, providing more capital to poor nations is not the best way to help them; nor is improving levels of education, exchange-rate flexibility, or government solvency enough. Rather, the key to improving economic conditions in poor countries, the book argues, is increasing productivity through intense, fair competition and protecting consumer rights. As the book explains, this sweeping solution affects the economies of poor nations at all levels.

Perspectives on the Economics of Aging

David A. Wise — 2013-02-21

Author:: David A.Wise
ISBN:: 9780226903057
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226903286.001.0001
Published in print:: 2004
Published Online:: 2013-02-21

This book investigates several important issues in the economics of aging, including the accumulation of wealth and the relationship between health and financial prosperity. Examining the changes in savings behavior and investment priorities in the United States over the past few decades, it points to a dramatic shift from employer-managed, defined benefit pensions to employee-controlled retirement savings plans. Further, the legislative reforms of the 1980s and the booming stock market of the 1990s did their share to influence individual wealth accumulation patterns of Americans. The book also explores the relationship between health status and economic status. Considering issues like pension income and health, mortality, and medical care, it presents evidence from the United States, Britain, South Africa, and Russia. The volume culminates with wide-ranging discussions on a number of key topics in the field including the innovations that have contributed to a decline in mortality rates; the various medical advances that have benefited populations over time; and the determinants of expenditures on health. The findings with regard to cross-sectional differences in health outcomes and health care utilization also pose troubling questions for policymakers seeking to democratize health care across regions and races.

Overcoming the Saving Slump

Annamaria Lusardi — 2013-02-21

Author:: AnnamariaLusardi
ISBN:: 9780226497099
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226497105.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

The great majority of working Americans are unprepared to face the difficult task of planning for retirement. In fact, the personal savings rate has been holding steady at zero for several years, down from 8 percent in the mid-1980s. This book explores the many challenges facing workers in the transition from a traditional defined benefit pension system one that requires more individual responsibility, analyzing the considerable impediments to saving and evaluating financial literacy programs devised by employers and the government. Mapping the changing landscape of pensions and the rise of defined contribution plans, the author and others investigate new methods for stimulating saving and promoting financial education, drawing on the experience of the United States as well as countries that have privatized their welfare systems, including Sweden and Chile. This volume pinpoints where human resources departments, the financial industry, and government officials have succeeded—or failed—in bridging the way to a new retirement system.

Other People's Money

Barry Eichengreen and Ricardo Hausmann — 2013-02-21

Author:: BarryEichengreenRicardoHausmann
ISBN:: 9780226194554
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226194578.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

Recent crises in emerging markets have been heavily driven by balance-sheet or net-worth effects. Episodes in countries as far-flung as Indonesia and Argentina have shown that exchange rate adjustments that would normally help to restore balance can be destabilizing, even catastrophic, for countries whose debts are denominated in foreign currencies. Many economists instinctually assume that developing countries allow their foreign debts to be denominated in dollars, yen, or euros because they simply don't know better. Presenting evidence that even emerging markets with strong policies and institutions experience this problem, this book recognizes that the situation must be attributed to more than ignorance. Instead, the chapters of this book suggest that the problem is linked to the operation of international financial markets, which prevent countries from borrowing in their own currencies. A comprehensive analysis of the sources of this problem and its consequences, this book takes the study one step further, proposing a solution that would involve having the World Bank and regional development banks themselves borrow and lend in emerging market currencies.

Optional Law

Ian Ayres — 2013-02-21

Author:: Ian Ayres
ISBN:: 9780226033464
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226033488.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

Spurred by the advances in option theory that have been remaking financial and economic scholarship over the past thirty years, a revolution is taking shape in the way legal scholars conceptualize property and the way it is protected by the law. This book explores how option theory is overthrowing many accepted wisdoms and producing tangible new tools for courts in deciding cases. It identifies flaws in the current system and shows how option theory can radically expand and improve the ways that lawmakers structure legal entitlements. It shows that an option-based system gives parties the option to purchase—or the option to sell—the relevant legal entitlement. Choosing to exercise a legal option forces decisionmakers to reveal information about their own valuation of the entitlement. And, as with auctions, entitlements in option-based law naturally flow to those who value them the most. Seeing legal entitlements through this lens suggests a variety of new entitlement structures from which lawmakers might choose. The book provides a theory for determining which structure is likely to be most effective in harnessing parties' private information. It proposes a practical approach to the foundational question of how to allocate and protect legal rights.

New Developments in Productivity Analysis

Charles R. Hulten, Edwin R. Dean, and Michael Harper — 2013-02-21

Author:: Charles R.HultenEdwin R.DeanMichaelHarper
ISBN:: 9780226360621
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226360645.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

The productivity slowdown of the 1970s and 1980s and the resumption of productivity growth in the 1990s have provoked controversy among policymakers and researchers. Economists have been forced to reexamine fundamental questions of measurement technique. Some researchers argue that econometric approaches to productivity measurement usefully address shortcomings of the dominant index number techniques while others maintain that current productivity statistics underreport damage to the environment. This book proposes approaches to these issues. The result is an exposition of contemporary productivity analysis.

A New Architecture for the U.S. National Accounts

Dale W. Jorgenson, J. Landefeld, and William D. Nordhaus — 2013-02-21

Author:: Dale W.JorgensonJ.LandefeldWilliam D.Nordhaus
ISBN:: 9780226410845
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic Systems
DOI:: 10.7208/chicago/9780226410876.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

This book brings together a group of contributors to initiate the development of a comprehensive and fully integrated set of United States national accounts. The purpose of the new architecture is not only to integrate the existing systems of accounts, but also to identify gaps and inconsistencies and expand and incorporate systems of nonmarket accounts with the core system. Since the United States economy accounts for almost thirty percent of the world economy, it is not surprising that accounting for this huge and diverse set of economic activities requires a decentralized statistical system. This volume outlines the major assignments among institutions that include the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Department of Labor, the Census Bureau, and the Governors of the Federal Reserve System. An important part of the motivation for the new architecture is to integrate the different components and make them consistent. This volume is a first step toward achieving that goal.

The Natural Origins of Economics

Margaret Schabas — 2013-02-21

Author:: Margaret Schabas
ISBN:: 9780226735696
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226735719.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

References to the economy are ubiquitous in modern life, and virtually every facet of human activity has capitulated to market mechanisms. In the early modern period, however, there was no common perception of the economy, and discourses on money, trade, and commerce treated economic phenomena as properties of physical nature. Only in the early nineteenth century did economists begin to posit and identify the economy as a distinct object, divorcing it from natural processes and attaching it exclusively to human laws and agency. This book traces the emergence and transformation of economics in the eighteenth and nineteenth centuries from a natural to a social science. Focusing on the works of several prominent economists—David Hume, Adam Smith, Thomas Malthus, David Ricardo, and John Stuart Mill—the book examines their conceptual debt to natural science and thus locates the evolution of economic ideas within the history of science.

Monetary Policy with Very Low Inflation in the Pacific Rim

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226378978
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226379012.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

Extremely low inflation rates have moved to the forefront of monetary policy discussions. In Asia, a number of countries—most prominently Japan, but also Taiwan and China—have actually experienced deflation over the last fifteen years. This book explores the factors that have contributed to these circumstances and forecasts some of the potential challenges faced by these nations, as well as some potential solutions. The chapters of this book attribute low inflation and deflation in the region to a number of recent phenomena. Some of these episodes, they argue, may be linked to rapid growth on the supply side of economies. Here, inadequate demand policy can produce what is referred to as a “liquidity trap” in which the expectation of falling prices encourages agents to defer costly purchases, thereby discouraging growth. Low inflation rates can also be traced to the presence of a “zero-lower bound” on interest rates, as well as the inflation-targeting phenomenon. Targets have been set so low, the chapters argue, that in some cases a few bad shocks lead to deflation.

Mexican Immigration to the United States

George J. Borjas — 2013-02-21

Author:: George J.Borjas
ISBN:: 9780226066325
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226066684.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

From debates on Capitol Hill to the popular media, Mexican immigrants are the subject of widespread controversy. By 2003, their growing numbers accounted for 28.3 percent of all foreign-born inhabitants of the United States. This book analyzes the economic impact of this historically unprecedented exodus. Why do Mexican immigrants gain citizenship and employment at a slower rate than non-Mexicans? Does their migration to the U.S. adversely affect the working conditions of lower-skilled workers already residing there? And how rapid is the intergenerational mobility among Mexican immigrant families? This volume provides a historical context for Mexican immigration to the U.S. and reports new findings on an immigrant influx whose size and character will force us to rethink economic policy for decades to come.

Medical Care Output and Productivity

David M. Cutler and Ernst R. Berndt — 2013-02-21

Author:: David M.CutlerErnst R.Berndt
ISBN:: 9780226132266
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226132303.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

With the United States and other developed nations spending as much as 14 percent of their GDP on medical care, economists and policy analysts are asking what these countries are getting in return. Yet it remains frustrating and difficult to measure the productivity of the medical care service industries. This volume takes aim at that problem, while taking stock of where we are in our attempts to solve it. Much of this analysis focuses on the capacity to measure the value of technological change and other health care innovations. A key finding suggests that growth in health care spending has coincided with an increase in products and services that together reduce mortality rates and promote additional health gains. Concerns over the apparent increase in unit prices of medical care may thus understate positive impacts on consumer welfare. When appropriately adjusted for such quality improvements, health care prices may actually have fallen. This volume not only clarifies one of the more nebulous issues in health care analysis, but in so doing addresses an area of pressing public policy concern.

Measuring the Subjective Well-Being of Nations

Alan B. Krueger — 2013-02-21

Author:: Alan B.Krueger
ISBN:: 9780226454566
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226454573.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

Surely everyone wants to know the source of happiness, and indeed, economists and social scientists are increasingly interested in the study and effects of subjective well-being. Putting forward a rigorous method and new data for measuring, comparing, and analyzing the relationship between well-being and the way people spend their time—across countries, demographic groups, and history—this book aims to help set the agenda of research and policy for decades to come. It does so by introducing a system of National Time Accounting (NTA), which relies on individuals' own evaluations of their emotional experiences during various uses of time, a distinct departure from subjective measures such as life satisfaction and objective measures such as the Gross Domestic Product. The chapters here summarize the NTA method, provide illustrative findings about well-being based on NTA, and subject the approach to a rigorous conceptual and methodological critique that advances the field.

Measuring the Gains from Medical Research

Kevin M. Murphy and Robert H. Topel — 2013-02-21

Author:: Kevin M.MurphyRobert H.Topel
ISBN:: 9780226551784
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226551791.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

In 1998, health expenditures in the United States accounted for 12.9 percent of national income—the highest share of income devoted to health in the developed world. The United States also spends more on medical research than any other country—in 2000, the federal government dedicated $18.4 billion to it, compared with only $3.7 billion for the entire European Union. In this book, health economists ask whether we are getting our money's worth. From an economic perspective, they find, the answer is a resounding “yes”: in fact, considering the extraordinary value of improvements to health, we may even be spending too little on medical research. The evidence these chapters present and the conclusions they reach are surprising: that growth in longevity since 1950 has been as valuable as growth in all other forms of consumption combined; that medical advances producing 10 percent reductions in mortality from cancer and heart disease alone would add roughly $10 trillion—a year's GDP—to the national wealth; and that the average new drug approved by the FDA yields benefits worth many times its cost of development. The chapters in this book are packed with these and many other revelations, their analysis demonstrating the massive economic benefits we can gain from investments in medical research.

Measuring Capital in the New Economy

Carol Corrado, John Haltiwanger, and Daniel Sichel — 2013-02-21

Author:: CarolCorradoJohnHaltiwangerDanielSichel
ISBN:: 9780226116129
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226116174.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

As the accelerated technological advances of the past two decades continue to reshape the United States' economy, intangible assets and high-technology investments are taking larger roles. These developments have raised a number of concerns, such as: how do we measure intangible assets? Are we accurately appraising newer, high-technology capital? The answers to these questions have broad implications for the assessment of the economy's growth over the long term, for the pace of technological advancement in the economy, and for estimates of the nation's wealth. This book offers new approaches for measuring capital in an economy that is increasingly dominated by high-technology capital and intangible assets. As the chapters show, high-tech capital and intangible assets affect the economy in ways that are notoriously difficult to appraise. In this detailed analysis of the problem and its solutions, the chapters study the nature of these relationships and provide guidance as to what factors should be included in calculations of different types of capital for economists, policymakers, and the financial and accounting communities alike.

Measuring and Managing Federal Financial Risk

Deborah Lucas — 2013-02-21

Author:: DeborahLucas
ISBN:: 9780226496580
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226496597.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

The U.S. government is the world's largest financial institution, providing credit and assuming risk through diverse activities. But the potential cost and risk of these actions and obligations remain poorly understood and only partially measured. Government budgetary and financial accounting rules, which largely determine the information available to federal decision makers, have only just begun to address these issues. However, recently there has been a push to rethink how these programs are valued and accounted for, and some progress has been made in applying modern valuation methods—such as options pricing, risk-adjusted discount rates, and value at risk—to these types of obligation. This book contains new research, both empirical and methodological, on the measurement and management of these costs and risks. The analyses encompass a broad spectrum of federal programs, including housing, catastrophe insurance, student loans, social security, and environmental liabilities. Collectively, the chapters here demonstrate that the logic of financial economics can be a useful tool for studying a range of federal activities.

Means-Tested Transfer Programs in the United States

Robert A. Moffitt — 2013-02-21

Author:: Robert A.Moffitt
ISBN:: 9780226533568
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226533575.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

Few United States government programs are as controversial as those designed to aid the poor. From tax credits to medical assistance, aid to needy families is surrounded by debate—on what benefits should be offered, what forms they should take, and how they should be administered. The past few decades, in fact, have seen this debate lead to broad transformations of aid programs themselves, with Aid to Families with Dependent Children replaced by Temporary Assistance to Needy Families, the Earned Income Tax Credit growing from a minor program to one of the most important for low-income families, and Medicaid greatly expanding its eligibility. This volume provides an overview of how such programs actually work, offering information on the nation's nine largest “means-tested” programs—that is, those in which some test of income forms the basis for participation. For each program, contributors describe origins and goals, summarize policy histories and current rules, and discuss the recipient's characteristics as well as the different types of benefits they receive. Each chapter then provides an overview of scholarly research on each program, bringing together the results of the field's most rigorous statistical examinations. The result is a portrayal of the evolution and current state of means-tested programs, one that charts a number of shifts in emphasis—the decline of cash assistance, for instance, and the increasing emphasis on work.

Managing Currency Crises in Emerging Markets

Michael P. Dooley and Jeffrey A. Frankel — 2013-02-21

Author:: Michael P.DooleyJeffrey A.Frankel
ISBN:: 9780226155401
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226155425.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

The management of financial crises in emerging markets is a vital and high-stakes challenge in an increasingly global economy. For this reason, it is also a highly contentious issue in today's public policy circles. In this book, leading economists—many of whom have also participated in policy debates on these issues—consider how best to reduce the frequency and cost of such crises. The contributions here explore the management process from the beginning of a crisis to the long-term effects of the techniques used to minimize it. The first three chapters focus on the earliest responses and the immediate defense of a currency under attack, exploring whether unnecessary damage to economies can be avoided by adopting the right response within the first few days of a financial crisis. Next, contributors examine the adjustment programs that follow, considering how to design these programs so that they shorten the recovery phase, encourage economic growth, and minimize the probability of future difficulties. Finally, the last four papers analyze the actual effects of adjustment programs, asking whether they accomplish what they are designed to do—and whether, as many critics assert, they impose disproportionate costs on the poorest members of society. Recent high-profile currency crises have proven not only how harmful they can be to neighboring economies and trading partners, but also how important policy responses can be in determining their duration and severity.

Making the Grade

William A. Fischel — 2013-02-21

Author:: William A. Fischel
ISBN:: 9780226251301
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Microeconomics
DOI:: 10.7208/chicago/9780226251318.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

A significant factor for many people deciding where to live is the quality of the local school district, with superior schools creating a price premium for housing. The result is a “race to the top,” as all school districts attempt to improve their performance in order to attract homebuyers. Given the importance of school districts to the daily lives of children and families, it is surprising that their evolution has not received much attention. This book argues that the historical development of school districts reflects Americans' desire to make their communities attractive to outsiders. The result has been a standardized, interchangeable system of education not overly demanding for either students or teachers, one that involved parents and local voters in its governance and finance. Innovative in its focus on bottom-up processes generated by individual behaviors rather than top-down decisions by bureaucrats, this book provides a new perspective on education reform that emphasizes how public schools form the basis for the localized social capital in American towns and cities.

Law and Happiness

Eric A. Posner and Cass R. Sunstein — 2013-02-21

Author:: Eric A.PosnerCass R.Sunstein
ISBN:: 9780226676005
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226676029.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Since the earliest days of philosophy, thinkers have debated the meaning of the term happiness and the nature of the good life. But it is only in recent years that the study of happiness—or “hedonics”—has developed into a formal field of inquiry, cutting across a broad range of disciplines and offering insights into a variety of crucial questions of law and public policy. This book brings together the best and most influential thinkers in the field to explore the question of what makes up happiness—and what factors can be demonstrated to increase or decrease it. The book offers an account of the way that hedonics can productively be applied to psychology. It also considers the unexpected relationship between happiness and health problems. It further views hedonics through the lens of cost–benefit analysis, another chapter considers the relationship between happiness and taxation, and the book also examines the role crime—and fear of crime—can play in people's assessment of their happiness, and much more.

Latin American Macroeconomic Reforms

Jose Gonzalez, Vittorio Corbo, Anne O. Krueger, and Aaron Tornell — 2013-02-21

Author:: JoseGonzalezVittorioCorboAnne O.KruegerAaronTornell
ISBN:: 9780226302676
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226302683.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

Hidden behind a number of economic crises in the mid- to late 1990s—including Argentina's headline-grabbing monetary and political upheaval—is the fact that Latin American economies have, generally speaking, improved dramatically in recent years. Their success has been due, in large part, to macroeconomic reforms, and this book brings together economists and policymakers to assess a decade of such policy shifts, highlighting both the many success stories and the areas in which further work is needed. Contributors offer both case studies of individual countries and regional overviews, covering monetary, financial, and fiscal policy. Contributors also work to identify future concerns and erect clear signposts for future reforms. For instance, now that inflation rates have been stabilized, one suggested “second stage” monetary reform would be to focus on reducing rates from high to low single digits. Financial sector reforms, it is suggested, should center on improving regulation and supervision. And, contributors argue, since fiscal stability has already been achieved in most countries, new fiscal reforms need to concentrate on institutionalizing fiscal discipline, improving the efficiency and equity of tax collection, and modifying institutional arrangements to deal with increasingly decentralized federal systems. The analysis and commentary in this volume—authored not only by academic observers but by key Latin American policymakers with decades of firsthand experience—will prove important to anyone with an interest in the future of Latin America's continuing economic development and reform.

Labor Markets and Firm Benefit Policies in Japan and the United States

Seiritsu Ogura, Toshiaki Tachibanaki, and David A. Wise — 2013-02-21

Author:: SeiritsuOguraToshiakiTachibanakiDavid A.Wise
ISBN:: 9780226620947
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226620954.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

This volume, the fourth to result from a collaboration between the National Bureau of Economic Research and the Japan Center for Economic Research, presents a selection of thirteen chapters addressing issues in the employment practices, labor markets, and health, benefit, and pension policies of the United States and Japan. After an opening chapter assessing the recent ascendance of the U.S. economy, chapters diverge to tackle a range of specific issues. Focusing less on international comparison than on the assembly of high-quality research, contributors hone in on a variety of individual topics. Chapters delve into issues of youth employment, participatory employment, information sharing, fringe benefits, and drug coverage in Japan, as well as the dynamics of medical savings accounts, private insurance coverage, and benefit options in the U.S.

Labor in the New Economy

Katharine G. Abraham, James R. Spletzer, and Michael Harper Harper — 2013-02-21

Author:: Katharine G.AbrahamJames R.SpletzerMichael HarperHarper
ISBN:: 9780226001432
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Microeconomics
DOI:: 10.7208/chicago/9780226001463.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

As the structure of the economy has changed over the past few decades, researchers and policy makers have been increasingly concerned with how these changes affect workers. This book examines a variety of important trends in the new economy, including inequality of earnings and other forms of compensation, job security, employer reliance on temporary and contract workers, hours of work, and workplace safety and health. In order to better understand these issues, scholars must be able to accurately measure labor market activity. Thus, the book also addresses a host of measurement issues: from the treatment of outliers, imputation methods, and weighting in the context of specific surveys to evaluating the strengths and weaknesses of data from different sources. At a time when employment is a central concern for individuals, businesses, and the government, this volume provides insight into the recent past.

International Trade in Services and Intangibles in the Era of Globalization

Marshall Reinsdorf and Matthew J. Slaughter — 2013-02-21

Author:: MarshallReinsdorfMatthew J.Slaughter
ISBN:: 9780226709598
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226709604.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

Quantitative measures of international exchange have historically focused on trade in tangible products or capital. However, services have recently become a larger portion of developed economies and international trade, and will only increase in the future. This book examines new and emerging patterns of trade, especially the growing importance of transactions involving services or intangible assets such as intellectual property. Chapters here analyzes the challenges involved in measuring trade in intangibles, the comparative advantages enjoyed by United States service industries, and the heightened international competition for jobs, capital investment, economic growth, and tax revenue that results from trade in services.

International Trade in East Asia

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226378961
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226379005.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

The practice of trading across international borders has undergone a series of changes with great consequences for the world trading community, the result of new trade agreements, a number of financial crises, the emergence of the World Trade Organization, and countless other less obvious developments. This book provides a summary of empirical factors of international trade specifically as they pertain to East Asian countries such as China, Japan, Korea, and Taiwan. Comprised of twelve studies, it highlights many of the trading practices between countries within the region as well as outside of it. The chapters bring into focus some of the region's endemic and external barriers to international trade and discuss strategies for improving productivity and fostering trade relationships. Studies on some of the factors that drive exports, the influence of research and development, the effects of foreign investment, and the ramifications of different types of protectionism will resonate with the financial and economic communities who are trying to keep pace with this dramatically altered landscape.

International Taxation and Multinational Activity

James R. Hines — 2013-02-21

Author:: James R.Hines
ISBN:: 9780226341736
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226341750.001.0001
Published in print:: 2001
Published Online:: 2013-02-21

Because the actions of multinational corporations have a clear and direct effect on the flow of capital throughout the world, how and why these firms behave the way they do is a major issue for national governments and their policymakers. With an unprecedented ability to adjust the scale, character, and location of their global operations, international corporations have become increasingly sensitive to the kind and degree of tax obligations imposed on them by both host and home countries. Tax rules affect the volume of foreign direct investment, corporate borrowing, transfer pricing, dividend and royalty payments, and research and development. National governments that tax the profits of international firms face important challenges in designing tax policies to attract them. This collection examines the global ramifications of tax policies, offering up-to-date, theoretically innovative, and empirically sound perspectives on a problem of immense significance to future economic growth around the globe.

International Financial Markets

Leonardo Auernheimer — 2013-02-21

Author:: LeonardoAuernheimer
ISBN:: 9780226032146
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226032153.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

As the globalization of financial markets continues, we urgently need to understand the crises that have plagued these markets and the policies best suited to preventing such crises in the future. In this book, a group of economists and policymakers blend conceptual analysis and policy discussion in seven integrated papers, analyzing the nature of capital flows, alternative exchange-rate regimes, and the roles of international financial institutions. After a guided tour by the editor and a historical exploration, theorists and policy analysts examine the benefits and pitfalls of capital movements and controls. In the second portion, papers examine the recent experiences of Argentina and Mexico. The volume concludes with a roundtable discussion of the report of the International Financial Institutions Advisory Commission, in which the chair of the commission both comments on the report and responds to questions about it.

International Financial Issues in the Pacific Rim

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226386829
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226387086.001.0001
Published in print:: 2008
Published Online:: 2013-02-21

The imbalanced, yet mutually beneficial, trading relationship between the United States and Asia has long been one of international finance's most perplexing mysteries. Although the United States continues to post a substantial trade deficit—and China reaps the benefits of a surplus—the dollar has yet to sink in the face of ever-increasing account disparities. This book explains why the United States enjoys a seemingly symbiotic relationship with its trading partners despite stark inequities in the trade balance, especially with Asia. This study also debunks the assumed link between economic openness and low inflation in the region, identifies the serious gap between academic and private-sector researchers' understanding of exchange rate volatility, and analyzes the liberalization of Asian capital accounts. It will have broad implications for global trade and economic policy issues in Asia and beyond.

International Dimensions of Monetary Policy

Jordi Gali and Mark Gertler — 2013-02-21

Author:: JordiGaliMarkGertler
ISBN:: 9780226278865
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Macro- and Monetary Economics
DOI:: 10.7208/chicago/9780226278872.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

United States monetary policy has traditionally been modeled under the assumption that the domestic economy is immune to international factors and exogenous shocks. Such an assumption is increasingly unrealistic in the age of integrated capital markets, tightened links between national economies, and reduced trading costs. This book brings together fresh research to address the repercussions of the continuing evolution toward globalization for the conduct of monetary policy. In this book, the chapters examine the real and potential effects of increased openness and exposure to international economic dynamics from a variety of perspectives. Their findings reveal that central banks continue to influence decisively domestic economic outcomes—even inflation—suggesting that international factors may have a limited role in national performance.

International Differences in the Business Practices and Productivity of Firms

Richard B. Freeman and Kathryn L. Shaw — 2013-02-21

Author:: Richard B.FreemanKathryn L.Shaw
ISBN:: 9780226261942
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226261959.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

In recent years, globalization and the expansion of information technologies have reshaped managerial practices, forcing multinational firms to adjust business practices to different environments and domestic companies to adjust to their foreign competitors. This book examines the phenomenon of widespread differences in managerial practices across firms, establishments within firms, and countries. This volume brings together eight studies that combine qualitative and quantitative insider analysis of business practices such as the use of teams, incentive pay, lean manufacturing, and quality control, revealing the elements that determine which practices are adopted and why. The book aims to offer a much-needed model for measuring the productivity and performance of international firms in a fast-paced global economy.

International Differences in Entrepreneurship

Josh Lerner and Antoinette Schoar — 2013-02-21

Author:: JoshLernerAntoinetteSchoar
ISBN:: 9780226473093
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226473109.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Often considered one of the major forces behind economic growth and development, the entrepreneurial firm can accelerate the speed of innovation and dissemination of new technologies, thus increasing a country's competitive edge in the global market. As a result, cultivating a strong culture of entrepreneurial thinking has become a primary goal throughout the world. Surprisingly, there has been little systematic research or comparative analysis to show how the growth of entrepreneurship differs among countries in various stages of development. This book aims to fill this void by explaining how a country's institutional differences, cultural considerations, and personal characteristics can affect the role that entrepreneurs play in its economy. Developing an understanding of the origins of entrepreneurs, as well as the choices they make and the complexity of their activities across countries and industries, is of central importance to this volume. In addition, chapters consider how environmental factors of individual economies, such as market regulation, government subsidies for banks, and support for entrepreneurial culture, affect the industry and the impact that entrepreneurs have on growth in developing nations.

The Intended and Unintended Effects of U.S. Agricultural and Biotechnology Policies

Joshua S. Graff Zivin and Jeffrey M. Perloff — 2013-02-21

Author:: Joshua S.Graff ZivinJeffrey M.Perloff
ISBN:: 9780226988030
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226988061.001.0001
Published in print:: 2012
Published Online:: 2013-02-21

Using economic models and empirical analysis, this volume examines a wide range of agricultural and biofuel policy issues and their effects on American agricultural and related agrarian insurance markets. Beginning with a look at the distribution of funds by insurance programs—to support farmers but often benefiting crop processors instead—the book then examines the demand for biofuel and the effects of biofuel policies on agricultural price uncertainty. Also discussed are genetically engineered crops, which are assuming an increasingly important role in arbitrating tensions between energy production, environmental protection, and the global food supply. Other chapters discuss the major effects of genetic engineering on worldwide food markets. By addressing some of the most challenging topics at the intersection of agriculture and biotechnology, this volume informs crucial debates.

The Inflation-Targeting Debate

Ben S. Bernanke and Michael Woodford — 2013-02-21

Author:: Ben S.BernankeMichaelWoodford
ISBN:: 9780226044712
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Financial Economics
DOI:: 10.7208/chicago/9780226044736.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

Over the past fifteen years, a significant number of industrialized and middle-income countries have adopted inflation targeting as a framework for monetary policymaking. As the name suggests, in such inflation-targeting regimes, the central bank is responsible for achieving a publicly announced target for the inflation rate. While the objective of controlling inflation enjoys wide support among both academic experts and policymakers, and while the countries that have followed this model have generally experienced good macroeconomic outcomes, many important questions about inflation targeting remain. This book explores the many underexamined dimensions of inflation targeting—its potential, its successes, and its limitations—from both a theoretical and an empirical standpoint, and for both developed and emerging economies. The book opens with a discussion of the optimal formulation of inflation-targeting policy and continues with a debate about the desirability of such a model for the United States. The concluding chapters discuss the special problems of inflation targeting in emerging markets, including the Czech Republic, Poland, and Hungary.

Health Care Issues in the United States and Japan

David A. Wise and Naohiro Yashiro — 2013-02-21

Author:: David A.WiseNaohiroYashiro
ISBN:: 9780226902920
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226903248.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

Recent data show wide disparity between Japan and the United States in the effectiveness of their health care systems. Japan spends close to the lowest percentage of its gross domestic product on health care among OECD countries, the United States spends the highest, yet life expectancies in Japan are among the world's longest. Clearly, a great deal can be learned from a comprehensive comparative analysis of health care issues in these two countries. In this book, chapters explore the structural characteristics of the health care systems in both nations, the economic incentives underlying the systems, and how they operate in practice. Japan's system, they show, is characterized by generous insurance schemes, a lack of gatekeepers, and fee-for-service mechanisms. The United States' structure, on the other hand, is distinguished by for-profit hospitals, privatized health insurance, and managed care. But despite its relative success, an aging population and a general shift from infectious diseases to more chronic maladies are forcing the Japanese to consider a model more closely resembling that of the United States.

Health at Older Ages

David M. Cutler and David A. Wise — 2013-02-21

Author:: David M.CutlerDavid A.Wise
ISBN:: 9780226132310
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226132327.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

Americans are living longer—and staying healthier longer—than ever before. Despite the rapid disappearance of pensions and health care benefits for retirees, older people are healthier and better off than they were twenty years ago. In this book, a team of economists analyzes the foundations of disability decline, quantifies this phenomenon in economic terms, and proposes what might be done to accelerate future improvements in the health of our most elderly populations. The volume argues that educational attainment, high socioeconomic status, an older retirement age, and accessible medical care have improved the health and quality of life of seniors. Along the way, it outlines the economic benefits of disability decline, such as an increased rate of seniors in the workplace, relief for the healthcare system and care-giving families, and reduced medical expenses for the elderly themselves.

Health and Labor Force Participation over the Life Cycle

Dora L. Costa — 2013-02-21

Author:: Dora L.Costa
ISBN:: 9780226116181
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226116198.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

The twentieth century saw significant increases in both life expectancy and retirement rates—changes that have had dramatic impacts on nearly every aspect of society and the economy. Forecasting future trends in health and retirement rates, as we must do now, requires investigation of such long-term trends and their causes. To that end, this book draws on new data—an extensive longitudinal survey of Union Army veterans born between 1820 and 1850—to examine the factors that affected health and labor force participation in nineteenth-century America. Contributors consider the impacts of a variety of conditions—including social class, wealth, occupation, family, and community—on the morbidity and mortality of the group. The chapters investigate and address a number of special topics, including the influence of previous exposure to infectious disease, migration, and community factors such as lead in water mains. They also analyze the roles of income, health, and social class in retirement decisions, paying particular attention to the social context of disability. The book offers a clear view of the workings and complexities of life, death, and labor during the nineteenth century.

Hayek's Challenge

Bruce Caldwell — 2013-02-21

Author:: Bruce Caldwell
ISBN:: 9780226091914
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226091921.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

Friedrich A. Hayek is regarded as one of the preeminent economic theorists of the twentieth century, as much for his work outside of economics as for his work within it. During a career spanning several decades, he made contributions in fields as diverse as psychology, political philosophy, the history of ideas, and the methodology of the social sciences. This book offers us an intellectual biography of this pivotal social theorist. The book begins by providing the necessary background for understanding Hayek's thought, tracing the emergence, in fin-de-siècle Vienna, of the Austrian school of economics—a distinctive analysis forged in the midst of contending schools of thought. The second part of the book follows the path by which Hayek, beginning from the standard Austrian assumptions, gradually developed his unique perspective on not only economics but a broad range of social phenomena. The third part offers both an assessment of Hayek's arguments and, in an epilogue, an estimation of how Hayek's insights can help us to clarify and reexamine changes in the field of economics during the twentieth century. As Hayek's ideas matured, he became increasingly critical of developments within mainstream economics: his works grew increasingly contrarian and evolved in striking—and sometimes seemingly contradictory—ways. The book's analysis situates Hayek in a broader intellectual context, unpacking the often difficult turns in his thinking, and showing how his economic ideas came to inform his ideas on the other social sciences.

Hard-to-Measure Goods and Services

Ernst R. Berndt and Charles R. Hulten — 2013-02-21

Author:: Ernst R.BerndtCharles R.Hulten
ISBN:: 9780226044491
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Microeconomics
DOI:: 10.7208/chicago/9780226044507.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

The celebrated economist Zvi Griliches's entire career can be viewed as an attempt to advance the cause of accuracy in economic measurement. His interest in the causes and consequences of technical progress led to his pathbreaking work on price hedonics, now the principal analytical technique available to account for changes in product quality. This book, a collection of papers from a National Bureau of Economic Research (NBER) conference held in Griliches's honor, is a tribute to his many contributions to current economic thought. Here, scholars of economic measurement address issues in the areas of productivity, price hedonics, capital measurement, diffusion of new technologies, and output and price measurement in “hard-to-measure” sectors of the economy. The book furthers Griliches's vital work that changed the way economists think about the U.S. National Income and Product Accounts.

Growth and Productivity in East Asia

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226386805
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226387079.001.0001
Published in print:: 2004
Published Online:: 2013-02-21

Considering the examples of Australia and the Pacific Rim, this book offers a contemporary explanation for national productivity that measures contributions not only from capital and labor, but also from economic activities and relevant changes in policy, education, and technology. The book has organized a group of collaborators from several Asian countries, the United States, and other parts of the globe who ably balance both macroeconomic and microeconomic study with theoretical and empirical approaches. The book gives special attention to the causes for the unusual success of Australia, one of the few nations to maintain unprecedented economic growth despite the 1997 Asian financial crisis and the 2001 global downturn. A new database comprising eighty-four Japanese sectors reveals new findings for the last thirty years of sectoral productivity and growth in Japan. Studies focusing on Indonesia, Taiwan, and Korea also consider productivity and its relationship to research and development, foreign ownership, and policy reform in such industries as manufacturing, automobile production, and information technology.

Government & The American Economy

Price V. Fishback and Douglass C. North — 2013-02-21

Author:: Price V. Fishback, Douglass C. North
ISBN:: 9780226251271
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226251295.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

The American economy has provided a level of well-being that has consistently ranked at or near the top of the international ladder. A key source of this success has been widespread participation in political and economic processes. This book chronicles the significance of America's open-access society and the roles played by government in its unrivaled success story. America's democratic experiment, the book shows, allowed individuals and interest groups to shape the structure and policies of government, which, in turn, have fostered economic success and innovation by emphasizing private property rights, the rule of law, and protections of individual freedom. In response to new demands for infrastructure, America's federal structure hastened development by promoting the primacy of states, cities, and national governments. More recently, the economic reach of American government expanded dramatically as the populace accepted stronger limits on its economic freedoms in exchange for the increased security provided by regulation, an expanded welfare state, and a stronger national defense.

Governance, Regulation, and Privatization in the Asia-Pacific Region

Takatoshi Ito and Anne O. Krueger — 2013-02-21

Author:: TakatoshiItoAnne O.Krueger
ISBN:: 9780226386799
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226386966.001.0001
Published in print:: 2004
Published Online:: 2013-02-21

Over the last twenty-five years, there has been an acceleration in the move from government regulation towards privatization. This book provides a thoroughgoing account of the relative success of the different approaches to privatization as undertaken in Korea, China, Australia, and Japan. In most contexts, privatization is expected to yield greater efficiency and cost effectiveness while avoiding the corruption and bloated budgets of government regulation or monopoly control. But broad-scale privatization, if ill designed, has also yielded its share of difficulties in East Asia. Privatization has sometimes has created a vacuum in corporate governance for some of the region's most important industries and, in some cases, merely reinstated the monopoly-like configurations. The chapters presented in this book discuss the experiences of privatization in several industries, including railroad and telecom, corporate governance problems, accounting issues, and challenges for the future in East Asian countries. The first section is theoretical in nature and proposes boundaries among government protection, market freedom, and shareholder expectations. The second part is constituted by country case studies, beginning with an analysis of both the Korean financial crisis that followed its 1997 law to privatize large, public sector corporations and the new ways Korean corporations finance themselves. Following is an evaluation of China's approach to privatization, with an in-depth look at the financial transitions of companies slated for initial public offering.

The Governance of Not-for-Profit Organizations

Edward L. Glaeser — 2013-02-21

Author:: Edward L.Glaeser
ISBN:: 9780226297859
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Financial Economics
DOI:: 10.7208/chicago/9780226297866.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

Not-for-profit organizations play a critical role in the American economy. In health care, education, culture, and religion, we trust not-for-profit firms to serve the interests of their donors, customers, employees, and society at large. We know that such firms do not try to maximize profits, but what do they maximize? This book attempts to answer that question, assembling experts on the economics of the not-for-profit sector to examine the problems of the health care industry, art museums, universities, and even the medieval church. Contributors look at a number of different aspects of not-for-profit operations, from the problems of fundraising, endowments, and governance to specific issues such as hospital advertising. The picture that emerges is complex and surprising. In some cases, not-for-profit firms appear to work extremely well: competition for workers, customers, and donors leads not-for-profit organizations to function as efficiently as any for-profit firm. In other contexts, large endowments and weak governance allow elite workers to maximize their own interests, rather than those of their donors, customers, or society at large. Taken together, these papers greatly advance our knowledge of the dynamics and operations of not-for-profit organizations, revealing the under-explored systems of pressures and challenges that shape their governance.

Globalization in Historical Perspective

Michael D. Bordo, Alan M. Taylor, and Jeffrey G. Williamson — 2013-02-21

Author:: Michael D.BordoAlan M.TaylorJeffrey G.Williamson
ISBN:: 9780226065984
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226065991.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

As awareness of the process of globalization grows and the study of its effects becomes increasingly important to governments and businesses (as well as to a sizable opposition), the need for historical understanding also increases. Despite the importance of the topic, few attempts have been made to present a long-term economic analysis of the phenomenon, one that frames the issue by examining its place in the long history of international integration. This volume collects eleven chapters doing exactly that and more. The first group of chapter explores how the process of globalization can be measured in terms of the long-term integration of different markets—from the markets for goods and commodities to those for labor and capital, and from the sixteenth century to the present. The second set of contributions places this knowledge in a wider context, examining some of the trends and questions that have emerged as markets converge and diverge: the roles of technology and geography are both considered, along with the controversial issues of globalization's effects on inequality and social justice, and the roles of political institutions in responding to them. The final group of essays addresses the international financial systems that play such a large part in guiding the process of globalization, considering the influence of exchange rate regimes, financial development, financial crises, and the architecture of the international financial system itself.

Globalization and Poverty

Ann Harrison — 2013-02-21

Author:: AnnHarrison
ISBN:: 9780226317946
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226318004.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

Over the past two decades, the percentage of the world's population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization's perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. This book bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the chapters show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further the book's various arguments. This book provides the more nuanced understanding necessary to move that debate beyond the slogans.

The Gender Impact of Social Security Reform

Estelle James, Alejandra Edwards, and Rebeca Wong — 2013-02-21

Author:: Estelle James, Alejandra Edwards, Rebeca Wong
ISBN:: 9780226392004
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226392028.001.0001
Published in print:: 2008
Published Online:: 2013-02-21

As populations age and revenues diminish, government and private pension funds around the world are facing insolvency. The looming social security crisis is especially dire for women, who live longer than men but have worked less in the formal labor force. This study examines alternative social security systems and their disparate impacts on men and women. Emphasis is placed on the new multi-pillar systems that combine a publicly managed benefit and a mandatory private retirement saving. The book compares the gendered outcomes of social security systems in Chile, Argentina, and Mexico, and presents empirical findings from Eastern and Central European transition economies as well as several OECD countries. Women's positions have improved relative to men in countries where joint pensions have been required, widows who have worked can keep the joint pension in addition to their own benefit, the public benefit has been targeted toward low earners, and women's retirement age has been raised to equality with that of men. The book will force economists and policy makers to reexamine the design features that enable social security systems to achieve desirable gender outcomes.

G7 Current Account Imbalances

Richard H. Clarida — 2013-02-21

Author:: Richard H.Clarida
ISBN:: 9780226107264
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Financial Economics
DOI:: 10.7208/chicago/9780226107288.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

The current account deficit of the United States is more than six percent of its gross domestic product—an all-time high. And the rest of the world, including other G7 countries such as Japan and Germany, must collectively run current account surpluses to finance this deficit. How long can such unevenness between imports and exports be sustained, and what form might their eventual reconciliation take? Putting forth scenarios ranging from a gradual correction to a crash landing for the dollar, this book brings together economists from around the globe to consider the origins, status, and future of those disparities. Its collaborators here examine the role of the bursting of the dot-com bubble, the history of previous episodes of current account adjustments, and the possibility of the Euro surpassing the dollar as the leading international reserve currency. Although there are areas of broad agreement—that the imbalances will ultimately decline and that currency revaluations will be part of the solution—many areas of contention remain regarding both the dangers of imbalances and the possible forms of adjustment.

Founding Choices

Douglas A. Irwin and Richard Sylla — 2013-02-21

Author:: Douglas A.IrwinRichardSylla
ISBN:: 9780226384740
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Economic History
DOI:: 10.7208/chicago/9780226384764.001.0001
Published in print:: 2011
Published Online:: 2013-02-21

The political decisions made by the founding fathers were crucial to the success of the early republic. But the economic decisions they made were just as pivotal, ensuring the general welfare and common defense of the United States for decades to come. This book explores these economic choices and their profound influence on American life, westward expansion, and influence abroad. Among the topics covered are finance, trade, and monetary and banking policy, with a focus on the factors guiding those policies and their end result.

Fiscal Policy and Management in East Asia

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226386812
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226387062.001.0001
Published in print:: 2007
Published Online:: 2013-02-21

Managing fiscal policy—the revenues and spending of an individual nation—is among the most challenging tasks facing governments. Wealthy countries are constrained by complex regulation and taxation policies, while developing nations often face high inflation and trade taxes. This book examines the problems and challenges facing public finance in the developing countries of East Asia as well as Japan and the United States. It explores the inefficient tax systems of many developing countries, the relationship between public and private sector economic behavior, and the pressing issue of future obligations that governments have undertaken to provide pensions and health care for their citizens. The book features both overviews and analyses of the countries discussed.

Financial Sector Development in the Pacific Rim

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226386843
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226386867.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

The reform in Asian financial sectors—especially in banking and stock markets—has been remarkable since the currency crisis of 1997–98. East Asia is now a major player in international finance, providing serious competition to the more traditional financial centers of London and New York. This book provides a collection of theoretical and empirical analyses of the growing capital markets in the region. Bringing together authors from various East Asian and Pacific nations, this volume examines the institutional factors influencing financial innovation, the consequences of financial development, widespread consolidation occurring through mergers and acquisitions, and the implementation of policy reform. The book offers the comparative analysis necessary to answer broad questions about economic development and the future of Asia.

Financial Markets Volatility and Performance in Emerging Markets

Sebastian Edwards and Marcio G. P. Garcia — 2013-02-21

Author:: SebastianEdwardsMarcio G. P.Garcia
ISBN:: 9780226184951
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Macro- and Monetary Economics
DOI:: 10.7208/chicago/9780226185040.001.0001
Published in print:: 2008
Published Online:: 2013-02-21

Capital mobility is a double-edged sword for emerging economies, as governments must weigh the benefits of investment against the potential economic costs and political consequences of currency crises, devaluations, and instability. This book addresses the delicate balance between capital mobility and capital controls as developing countries navigate the convoluted global network of private investors, hedge funds, large corporations, and international institutions such as the International Monetary Fund. A group of experts examine rapidly globalizing financial markets with regard to capital flows and crises, domestic credit, international financial integration, and economic policy. Featuring detailed analyses and cross-national comparisons of countries such as Brazil, Argentina, Uruguay, and Korea, this book will shape economists' and policymakers' understanding of the effectiveness of restrictions on capital mobility in the world's most fragile economies.

The Fable of the Keiretsu

Yoshiro Miwa and J. Ramseyer — 2013-02-21

Author:: Yoshiro Miwa, J. Ramseyer
ISBN:: 9780226532707
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226532721.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

For Western economists and journalists, the most distinctive facet of the post-war Japanese business world has been the keiretsu, or the insular business alliances among powerful corporations. Within keiretsu groups, argue these observers, firms preferentially trade, lend money, take and receive technical and financial assistance, and cement their ties through cross-shareholding agreements. This book demonstrates that all this talk is really just urban legend. In their analysis, the chapters here show that the very idea of the keiretsu was created and propagated by Marxist scholars in post-war Japan. Western scholars merely repatriated the legend to show the culturally contingent nature of modern economic analysis. Laying waste to the notion of keiretsu, the book debunks several related “facts” as well: that Japanese firms maintain special arrangements with a “main bank,” that firms are systematically poorly managed, and that the Japanese government guided post-war growth. In demolishing these long-held assumptions, this book aims to offer a reliable chronicle of the realities of Japanese business.

Explorations in the Economics of Aging

David A. Wise — 2013-02-21

Author:: David A.Wise
ISBN:: 9780226903378
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226903385.001.0001
Published in print:: 2011
Published Online:: 2013-02-21

The next two decades will mark a new phase in the demographic transition of the United States as baby boomers become eligible for Social Security and Medicare. Drawing on evidence from the United States and other nations, this book yields important new findings on how economic decisions by households and policy choices by governments will influence the effects of this demographic shift. It explores topics such as the implications of differential mortality rates by income on Social Security, the link between cognition and economic outcomes, and scale variations in self-reported work disability.

Europe and the Euro

Alberto Alesina and Francesco Giavazzi — 2013-02-21

Author:: AlbertoAlesinaFrancescoGiavazzi
ISBN:: 9780226012834
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226012858.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

It is rare for countries to give up their currencies and thus their ability to influence such critical aspects of their economies as interest and exchange rates. Yet ten years ago a number of European countries did exactly that when they adopted the euro. Despite some dissent, there were a number of arguments in favor of this policy change: it would facilitate exchange of goods, money, and people by decreasing costs; it would increase trade; and it would enhance efficiency and competitiveness at the international level. A decade is an ideal time frame over which to evaluate the success of the euro and whether it has lived up to expectations. To that aim, this book looks at a number of important issues, including the effects of the euro on reform of goods and labor markets; its influence on business cycles and trade among members; and whether the single currency has induced convergence or divergence in the economic performance of member countries. While adoption of the euro may not have met the expectations of its most optimistic proponents, the benefits have been many, and there is reason to believe that the euro is robust enough to survive recent economic shocks.

Emerging Labor Market Institutions for the Twenty-First Century

Richard B. Freeman, Joni Hersch, and Lawrence Mishel Mishel — 2013-02-21

Author:: Richard B.FreemanJoniHerschLawrence MishelMishel
ISBN:: 9780226261577
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226261812.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

Private sector unionism is in decline in the United States. As a result, labor advocates, community groups, nongovernmental organizations, and individuals concerned with the well-being of workers have sought to develop alternative ways to represent workers' interests. This book provides an in-depth assessment of how effectively labor market institutions are responding to this drastically altered landscape. It provides case studies of new labor market institutions and new directions for existing institutions. The chapters examine the behavior and impact of new organizations that have formed to solve workplace problems and to bolster the position of workers. They also document how labor unions employ new strategies to maintain their role in the economic system. While non-union institutions are unlikely to fill the gap left by the decline of unions, the findings suggest that emerging groups and unions might together improve some dimensions of worker well-being. The book is the story of workers and institutions in flux, searching for ways to represent labor in the new century.

Electricity Deregulation

James M. Griffin and Steven L. Puller — 2013-02-21

Author:: James M.GriffinSteven L.Puller
ISBN:: 9780226308562
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226308586.001.0001
Published in print:: 2005
Published Online:: 2013-02-21

The electricity market has experienced enormous setbacks in delivering on the promise of deregulation. In theory, deregulating the electricity market would increase the efficiency of the industry by producing electricity at lower costs and passing those cost savings on to customers. As this book shows, successful deregulation is possible, although it is by no means a hands-off process-in fact, it requires a substantial amount of design and regulatory oversight. This book brings together experts from academia, government, and big business to discuss the lessons learned from experiences such as California's market meltdown as well as the ill-conceived policy choices that contributed to those failures. More importantly, the book that comprise the book offer a number of innovative prescriptions for the successful design of deregulated electricity markets, and provide a deliberation on the many risks and rewards of electricity deregulation.

The Economics of School Choice

Caroline M. Hoxby — 2013-02-21

Author:: Caroline M.Hoxby
ISBN:: 9780226355337
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226355344.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

Now that the U.S. Supreme Court has declared school voucher programs constitutional, the many unanswered questions concerning the potential effects of school choice will become especially pressing. Contributors to this volume draw on state-of-the-art economic methods to answer some of these questions, investigating the ways in which school choice affects a wide range of issues. Combining the results of empirical research with analyses of the basic economic forces underlying local education markets, this book presents evidence concerning the impact of school choice on student achievement, school productivity, teachers, and special education. It also tackles difficult questions such as whether school choice affects where people decide to live and how choice can be integrated into a system of school financing that gives children from different backgrounds equal access to resources. Contributors discuss the latest findings on Florida's school choice program as well as voucher programs and charter schools in several other states. The resulting volume not only reveals the promise of school choice, but examines its pitfalls as well, showing how programs can be designed that exploit the idea's potential but avoid its worst effects.

The Economics of Crime

Rafael Di Tella, Sebastian Edwards, and Ernesto Schargrodsky — 2013-02-21

Author:: Rafael DiTellaSebastianEdwardsErnestoSchargrodsky
ISBN:: 9780226153742
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226153766.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Latin America has one of the highest crime rates in the world, creating climates of fear and lawlessness in several countries. Despite this situation, there has been a lack of systematic effort to study crime in the region or the effectiveness of policies designed to tackle it. This book makes an important contribution to the current debate on causes and solutions by applying lessons learned from recent developments in the economics of crime. The book presents a survey of the crime problem in Latin America, which takes a very broad and appropriately reductionist approach to analyze the determinants of the high crime levels, focusing on the negative social conditions in the region, including inequality and poverty, and poor policy design, such as relatively low police presence. The chapters illustrate three channels through which crime might generate poverty, that is, by reducing investment, by introducing assets losses, and by reducing the value of assets remaining in the control of households. The book also highlights the fact that although crime rates in Latin America are extremely high and have been growing in many countries in the last two decades, there are cities within the region that have experienced a different dynamic. Part of the strategies applied in these cities seems to have been simply an investment in the capacity of the state to attack these problems, which resulted in a combination of more intense and effective repressive measures together with social support programs.

The Economics of Climate Change

Gary D. Libecap and Richard H. Steckel — 2013-02-21

Author:: Gary D.LibecapRichard H.Steckel
ISBN:: 9780226479880
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Development, Growth, and Environmental
DOI:: 10.7208/chicago/9780226479903.001.0001
Published in print:: 2011
Published Online:: 2013-02-21

The book responds to proceedings of the past couple of decades, especially the efficacy of collective action in light of reports of the Intergovernmental Panel on Climate Change (IPCC). The types of adaptation to climate that are described in this volume have received less attention in the economics literature than have policies for mitigation of emissions. The chapters in this volume provide important new empirical information on and analyses of the economics of climate change. They examine responses to past climatic events and in so doing indicate the range of possible future adaptations. This knowledge is critical for understanding how society has reacted to similar occurrences in the past and for developing effective, new private and governmental policies to address them. The chapters describe research findings regarding historical climate-related events as they have been faced in the American economy; the responses of individuals, organizations, and government institutions to those climate challenges; and assessments of their successes in addressing potential disruptions and in promoting the continued economic growth and welfare. The chapters also provide new data sources for measuring and evaluating how economic agents have adjusted to and progressed even in light of formidable environmental concerns.

Economics for Humans

Julie A. Nelson — 2013-02-21

Author:: Julie A. Nelson
ISBN:: 9780226572024
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226572055.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

At its core, an economy is about providing goods and services for human well-being. But many economists and critics preach that an economy is something far different: a cold and heartless system that operates outside of human control. This work asks a compelling question: If our economic world is something that we as humans create, aren't ethics and human relationships—dimensions of a full and rich life—intrinsically part of the picture? Is it possible to take this thing we call economics and give it a body and a soul? The book argues against the well-ingrained notion that economics is immune to moral values and distant from human relationships. Here, the book locates the impediment to envisioning a more considerate economic world in an assumption that is shared by both neoliberals and the political left. Despite their seemingly insurmountable differences, it notes that they both make use of the metaphor, first proposed by Adam Smith, that the economy is a machine. This pervasive idea, the book argues, has blinded us to the qualities that make us work and care for one another—qualities that also make businesses thrive and markets grow. We can wed our interest in money with our justifiable concerns about ethics and social well-being. And we can do so if we recognize that an economy is not a machine, but a living, beating heart that circulates blood to all parts of the body while also serving as an emblem of compassion and care.

Economic Turbulence

Clair Brown, John Haltiwanger, and Julia Lane — 2013-02-21

Author:: Clair Brown, John Haltiwanger, Julia Lane
ISBN:: 9780226076324
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Econometrics
DOI:: 10.7208/chicago/9780226076348.001.0001
Published in print:: 2006
Published Online:: 2013-02-21

Every day, in every sector of our economy, a business shuts down while another starts up, jobs are created while others are cut, and workers are hired while others are laid off. This constant flux, or turbulence, is a defining characteristic of our free market system, yet it mostly inspires angst about unemployment, loss of earnings, and the overall competitiveness of corporations. But is this endless cycle of fluctuation really so bad for America? Might something positive be going on in the economy as a result of it? In this work, three economists seek to answer these questions by exploring the real impact of volatility on American workers and businesses alike. According to the authors, while any number of events—shifts in consumer demand, changes in technology, mergers and acquisitions, or increased competition—can contribute to economic turbulence, our economy as a whole is, by and large, stronger for it, because these processes of creation and destruction make it more flexible and adaptable. The authors also acknowledge and document the adverse consequences of this turbulence on different groups of workers and firms, and discuss the resulting policy challenges. Basing their argument on an up-close look into the dealings and practices of five key industries—financial services, retail food services, trucking, semiconductors, and software—they demonstrate the positive effects of turbulence on career paths, employee earnings, and firm performance.

Economic Policy Reforms and the Indian Economy

Anne O. Krueger — 2013-02-21

Author:: Anne O.Krueger
ISBN:: 9780226454528
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226454542.001.0001
Published in print:: 2002
Published Online:: 2013-02-21

India is the second most populous country in the world and also one of the poorest. From the late 1940s to 1980, India's per capita income grew at an average annual rate of only two percent. Expansionist economic reforms during the 1980s boosted economic growth but also unfortunately resulted in high inflation and a balance of payments crisis. As a consequence, in 1991 the government announced sweeping new changes in economic policies. This book evaluates the effects of those changes and identifies areas of the Indian economy still in urgent need of reform. After an overview of Indian economic policies and development since independence, papers focus on the country's fiscal situation, the environment for private economic activity, education, the reservation of certain activities for small-scale industry, and determinants of differentials in rates of growth across the different Indian states. Contributors include academic specialists on India and policy reform, high-level Indian administrators, and present and past policymakers.

The Economic Consequences of Demographic Change in East Asia

Takatoshi Ito and Andrew K. Rose — 2013-02-21

Author:: TakatoshiItoAndrew K.Rose
ISBN:: 9780226386850
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, South and East Asia
DOI:: 10.7208/chicago/9780226386881.001.0001
Published in print:: 2010
Published Online:: 2013-02-21

Recent studies show that almost all industrial countries have experienced dramatic decreases in both fertility and mortality rates. This situation has led to aging societies with economies that suffer from both a decline in the working population and a rise in fiscal deficits linked to increased government spending. East Asia exemplifies these trends, and this book offers an in-depth look at how long-term demographic transitions have taken shape there and how they have affected the economy in the region. Chapters in this book explore such topics as comparative demographic change, population aging, the rising cost of health care, and specific policy concerns in individual countries. The book provides an overview of economic growth in East Asia as well as more specific studies on Japan, Korea, China, and Hong Kong.

Economic Aspects of Obesity

Michael Grossman and Naci Mocan — 2013-02-21

Author:: MichaelGrossmanNaciMocan
ISBN:: 9780226310091
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Behavioural Economics
DOI:: 10.7208/chicago/9780226310107.001.0001
Published in print:: 2011
Published Online:: 2013-02-21

In the past three decades, the number of obese adults in the United States has doubled and the number of obese children almost tripled, which may lead to increased medical expenditures, productivity loss, and stress on the health care system. Economic analysis now shows that weight gain is the result of individual choices in response to economic environments and demonstrates that incentives can influence individual behaviors affecting weight. Determinants are varied and include year- and area-specific food prices, availability of food outlets and recreational facilities, health insurance, and minimum wage levels. This book aims to provide foundation for evaluating the costs and benefits of various proposals designed to control obesity rates.

Economic and Financial Crises in Emerging Market Economies

Martin Feldstein — 2013-02-21

Author:: MartinFeldstein
ISBN:: 9780226241098
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, International
DOI:: 10.7208/chicago/9780226241104.001.0001
Published in print:: 2003
Published Online:: 2013-02-21

In the late 1990s, economic and financial crises raged through East Asia, devastating economies that had previously been considered among the strongest in the developing world. The crises eventually spread to Russia, Turkey, and Latin America, and impacted the economies of many industrialized nations as well. In today's increasingly interdependent world, finding ways to reduce the risk of future crises—and to improve the management of crises when they occur—has become an international policy challenge of paramount importance. This book rises to that challenge, presenting accessible papers and commentaries on the topic not only from academic economists, but also from high-ranking government officials (in both industrial and developing nations), senior policymakers at international institutions, and major financial investors. Six non-technical papers, each written by a specialist in the topic, provide economic background, introducing sections on exchange rate regimes, financial policies, industrial country policies, IMF stabilization policies, IMF structural programs, and creditor relations. Next, personal statements from the major players give firsthand accounts of what really went on behind the scenes during the crises, giving us a rare glimpse into how international economic policy decisions are actually made. Finally, wide-ranging discussions and debates sparked by these papers and statements are summarized at the end of each section. The result is an overview of the key issues at work in these crises, written by the people who move markets and reshape economies.

The Distributional Aspects of Social Security and Social Security Reform

Martin Feldstein and Jeffrey B. Liebman — 2013-02-21

Author:: MartinFeldsteinJeffrey B.Liebman
ISBN:: 9780226241067
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226241890.001.0001
Published in print:: 2002
Published Online:: 2013-02-21

Social security is the largest and perhaps the most popular program run by the federal government. Given the projected increase in both individual life expectancy and sheer number of retirees, however, the current system faces an eventual overload. Alternative proposals have emerged, ranging from reductions in future benefits to a rise in tax revenue to various forms of investment-based personal retirement accounts. As this volume suggests, the distributional consequences of these proposals are substantially different and may disproportionately affect those groups who depend on social security to avoid poverty in old age. Together, these studies show that appropriately designed investment-based social security reforms can effectively reduce the long-term burden of an aging society on future taxpayers, increase the expected future income of retirees, and mitigate poverty rates among the elderly.

Developments in the Economics of Aging

David A. Wise — 2013-02-21

Author:: David A.Wise
ISBN:: 9780226903354
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Public and Welfare
DOI:: 10.7208/chicago/9780226903361.001.0001
Published in print:: 2009
Published Online:: 2013-02-21

The number of Americans eligible to receive Social Security benefits will increase from forty-five million to nearly eighty million in the next twenty years. Retirement systems must therefore adapt to meet the demands of the largest aging population in America's history. In this book, a group of analysts examine the economic issues that will confront policy makers as they seek to design policies to protect the economic and physical health of these older Americans. The volume looks at such topics as factors influencing work and retirement decisions at older ages, changes in life satisfaction associated with retirement, and the shift in responsibility for managing retirement assets from professional money managers of traditional pension plans to individual account holders of 401(k)s. The book also addresses the complicated relationship between health and economic status, including why health behaviors vary across populations and how socioeconomic measures correlate with health outcomes.

Demography and the Economy

John B. Shoven — 2013-02-21

Author:: John B.Shoven
ISBN:: 9780226754727
Publisher:: University of Chicago Press
Subjects:: Economics and Finance, Macro- and Monetary Economics
DOI:: 10.7208/chicago/9780226754758.001.0001
Published in print:: 2011
Published Online:: 2013-02-21

Demographics is a vital field of study for understanding social and economic change and it has attracted attention in recent years as concerns have grown over the aging populations of developed nations. Demographic studies help make sense of key aspects of the economy, offering insight into trends in fertility, mortality, immigration, and labor force participation, as well as age, gender, and race specific trends in health and disability. This book explores the connections between demography and economics, paying special attention to what demographic trends can reveal about the sustainability of traditional social security programs and the larger implications for economic growth. The volume brings together some of the leading scholars working at the border between the two disciplines, and it provides an eclectic overview of both fields. Chapters also offer deeper analysis of a variety of issues such as the impact of greater wealth on choices about marriage and childbearing and the effects of aging populations on housing prices, Social Security, and Medicare.