Tax Policy, Asset Prices, and Growth: A General Equilibrium Analysis

This paper presents a multisector general equilibrium model that is capable of providing integrated assessments of the economy's short- and long- run responses to tax policy changes. The model contains an explicit treatment of firm's investment decisions according to which producers exhibit forward- looking behavior and take account of adjustment costs inherent in the installation of new capital. This permits an examination of both short-run effects of tax policy on industry profits and asset prices as well as 1ong-term effects on capital accumulation. The model contains considerable detail on U.S. industry, corporate financial policies, and the U.S. tax system. Simulation results reveal that the effects of tax policy differ significantly depending on whether the policy is oriented toward new or old capital measures like the investment tax credit stimulate investment without conferring significant windfall gains on corporate shareholders. Corporate tax rate reductions with the same revenue cost, on the other hand, yield large windfalls to shareholders while providing only a modest stimulus to investment in plant and equipment.

Is the Gold Standard Still the Gold Standard among Monetary Systems?

Critics have raised a number of theoretical and historical objections to the gold standard. Some have called the gold standard a "crazy" idea. The gold standard is not a flawless monetary system. Neither is the fiat money alternative. In light of historical evidence about the comparative magnitude of these flaws, however, the gold standard is a policy option that deserves serious consideration. In a study covering many decades in a large sample of countries, Federal Reserve Bank economists found that "money growth and inflation are higher" under fiat standards than under gold and silver standards. Nor is the gold standard a source of harmful deflation. Alan Greenspan has testified before Congress that "a central bank properly functioning will endeavor to, in many cases, replicate what a gold standard would itself generate." This study addresses the leading criticisms of the gold standard, relating to the costs of gold, the costs of transition, the dangers of speculation, and the need for a lender of last resort. One criticism is found to have some merit. The United States would not enjoy the benefits of being on an international gold standard if it were the first and only country whose currency was linked to gold.A gold standard does not guarantee perfect steadiness in the growth of the money supply, but historical comparison shows that it has provided more moderate and steadier money growth in practice than the present-day alternative, politically empowering a central banking committee to determine growth in the stock of fiat money. From the perspective of limiting money growth appropriately, the gold standard is far from a crazy idea

Invitation to the Eleventh Annual John F. Sonnett Memorial Lecture Series: Waste Not, Wait Not: A Consideration of Federal and State Jurisdiction

Invitation to Waste Not, Wait Not: A Consideration of Federal and State Jurisdiction by Chief Judge Lawrence H. Cooke of the New York Court of Appeals (1979-1984).https://ir.lawnet.fordham.edu/events_programs_sonnett_miscellaneous/1001/thumbnail.jp

Predicting and Understanding Order of Heteroepitaxial Quantum Dots

Heteroepitaxial self-assembled quantum dots (SAQDs) will allow breakthroughs in electronics and optoelectronics. SAQDs are a result of Stranski-Krastanow growth whereby a growing planar film becomes unstable after an initial wetting layer is formed. Common systems are Ge$_{x}$Si$_{1-x}$/Si and In$_{x}$Ga$_{1-x}$As/GaAs. For applications, SAQD arrays need to be ordered. The role of crystal anisotropy, random initial conditions and thermal fluctuations in influencing SAQD order during early stages of SAQD formation is studied through a simple stochastic model of surface diffusion. Surface diffusion is analyzed through a linear and perturbatively nonlinear analysis. The role of crystal anisotropy in enhancing SAQD order is elucidated. It is also found that SAQD order is enhanced when the deposited film is allowed to evolve at heights near the critical wetting surface height that marks the onset of non-planar film growth.Comment: under revie

Conductor having two frequency-selective surfaces

An antenna having two frequency-selective surfaces is disclosed. The antenna includes a first frequency-selective surface (FSS) having multiple holes to form a mesh, a second FSS having a multiple holes to form a mesh, and a perfect electric conductor located between the first FSS and the second FSS.Board of Regents, University of Texas Syste

How Did We Get into This Financial Mess?

As policymakers confront the ongoing U.S. financial crisis, it is important to take a step back and understand its origins. Those who fault "deregulation," "unfettered capitalism," or "greed" would do well to look instead at flawed institutions and misguided policies. The expansion in risky mortgages to underqualified borrowers was encouraged by the federal government. The growth of "creative" nonprime lending followed Congress's strengthening of the Community Reinvestment Act, the Federal Housing Administration's loosening of down-payment standards, and the Department of Housing and Urban Development's pressuring lenders to extend mortgages to borrowers who previously would not have qualified. Meanwhile, Freddie Mac and Fannie Mae grew to own or guarantee about half of the United States' $12 trillion mortgage market. Congressional leaders pointedly refused to moderate the moral hazard problem of implicit guarantees or otherwise rein in their hyperexpansion, instead pushing them to promote "affordable housing" through expanded purchases of nonprime loans to low income applicants. The credit that fueled these risky mortgages was provided by the cheap money policy of the Federal Reserve. Following the 2001 recession, Fed chairman Alan Greenspan slashed the federal funds rate from 6.25 to 1.75 percent. It was reduced further in 2002 and 2003, reaching a record low of 1 percent in mid-2003 - where it stayed for a year. This set off what economist Steve Hanke called "the mother of all liquidity cycles and yet another massive demand bubble." The actual causes of our financial troubles were unusual monetary policy moves and novel federal regulatory interventions. These poorly chosen policies distorted interest rates and asset prices, diverted loanable funds into the wrong investments, and twisted normally robust financial institutions into unsustainable positions

Can Inter-Industry Wage Differentials Justify Strategic Trade Policy?

This paper examines the relationship between labor market imperfections and trade policies. The available evidence suggests that pervasive industry wage differentials of up to 20 percent remain even after controlling for differences in observed measures of workers' skill and the effects of unions. Theoretical analysis indicates that given non-competitive wage differentials of this magnitude policies directed at encouraging employment in high-wage sectors could significantly enhance allocative efficiency. For the United States and other developed countries, such policies are more likely to involve export promotion than import substitution. Increased international trade flows (at least through 1984) have been associated with increased employment in high-wage U.S. manufacturing industries relative to low-wage U.S. manufacturing industries.