Exchange Rates, Money and Relative Prices: The Dollar-Pound in the 1920's

This paper applies the analytical framework of the monetary approach to exchange rate determination to the analysis of the Dollar/Pound exchange rate during the first part of the 1920's. The analysis uses monthly data up to the return of Britain to gold in 1925. The equilibrium exchange rate is shown to be influenced by both real and monetary factors which operate through their influence on the relative demands and supplies of monies. Special attention is given to examination of the relationship between exchange rates and the relative price of traded to non-traded goods. In the empirical work the prices of traded goods are proxied by the wholesale price indices and the prices of non-traded are proxied by wages. One of the key findings of the paper is the estimate of the elasticity of the exchange rate with respect to the relative price of traded to non-traded goods. This elasticity is estimated with high precision and is shown to be .415 which provides an independent measure of the relative share of spending on non-traded goods. This estimate is consistent with other estimates obtained in studies of expenditure shares. The paper concluded with a dynamic simulation which indicates the satisfactory quality of the predictive ability of the model.

A New Statistic: The US Census Bureau’s Supplemental Poverty Measure

This article examines the dynamic relationship between macroeconomic performance and measures of poverty in the United States. The article is organized as follows. Section 2 presents insights on the relationship between poverty and macroeconomic performance that emerge from the literature. The emphasis is on empirical studies from 1986 to 2011. Section 3 provides a snapshot of the change in poverty over National Bureau of Economic Research-dated recessions for a variety of poverty measures. Section 4 uses vector autoregressions (VARs) to characterize the response of poverty to innovations in various social indicators and measures of macroeconomic performance. Section 5 expands the empirical analysis to include alternative measures of poverty—a consumption-based poverty rate constructed by Meyer and Sullivan (2010) and an income-based poverty rate constructed by Broda and colleagues (2009) by using a consumer price index that has been adjusted for substitution and quality bias. Section 6 conducts a forecasting exercise for income poverty and consumption poverty. Section 7 concludes and offers suggestions for future research

Myopic Versus Farsighted Behaviors in a Low-Carbon Supply Chain with Reference Emission Effects

The increased carbon emissions cause relatively climate deterioration and attract more attention of governments, consumers, and enterprises to the low-carbon manufacturing. This paper considers a dynamic supply chain, which is composed of a manufacturer and a retailer, in the presence of the cap-and-trade regulation and the consumers’ reference emission effects. To investigate the manufacturer’s behavior choice and its impacts on the emission reduction and pricing strategies together with the profits of both the channel members, we develop a Stackelberg differential game model in which the manufacturer acts in both myopic and farsighted manners. By comparing the equilibrium strategies, it can be found that the farsighted manufacturer always prefers to keep a lower level of emission reduction. When the emission permit price is relatively high, the wholesale/retail price is lower if the manufacturer is myopic and hence benefits consumers. In addition, there exists a dilemma that the manufacturer is willing to act in a farsighted manner but the retailer looks forward to a partnership with the myopic manufacturer. For a relatively high price of emission permit, adopting myopic strategies results in a better performance of the whole supply chain

Measuring consumer detriment under conditions of imperfect information

Copyright @ 2001 Office of Fair Tradin

Indices that capture creative destruction: questions and implications

The paper argues that micro and macro economists interested in the dynamics of creative destruction can gain important insights by using indices that capture the effect of innovation on the relative position of firms. This is due to the uneven and 'destructive' effect that radical innovation has on firm rankings. One such index is the market share instability index. On the financial side, the excess volatility of stock prices and idiosyncratic risk also appear to capture the uneven dynamics of creative destruction. The paper concludes by considering the implications of these propositions for economy-wide growth during periods of radical innovation (e.g. GPTs)

Making sense of higher education: students as consumers and the value of the university experience

In the global university sector competitive funding models are progressively becoming the norm, and institutions/courses are frequently now subject to the same kind of consumerist pressures typical of a highly marketised environment. In the United Kingdom, for example, students are increasingly demonstrating customer-like behaviour and are now demanding even more ‘value’ from institutions. Value, though, is a slippery concept and has proven problematic both in terms of its conceptualisation and measurement. This article explores the relationship between student value and higher education and, via study in one United Kingdom business school, suggests how this might be better understood and operationalised. Adopting a combined qualitative/quantitative approach, this article also looks to identify which of the key value drivers has most practical meaning and, coincidentally, identifies a value-related difference between home and international students