Implications of structural changes in the U.S. economy for pricing behavior and inflation dynamics

Some key features of the behavior of inflation in the United States appear to have changed in the past 20 years, with potentially important implications for forecasters and policymakers. Recent studies have provided evidence of a decline in both the variability and persistence of inflation. ; Such shifts in the behavior or dynamics of inflation would necessitate changes in the economic relationships used by policymakers and economists to assess current conditions, forecast key economic indicators, and determine the implications of policy changes for future economic activity. ; Willis examines how structural changes in the economy over the past two decades may have affected the price-setting behavior of firms and, in turn, the behavior of aggregate inflation. He concludes that structural changes in the economy over the past 20 years have likely contributed to a decrease in the persistence and volatility of inflation.Inflation (Finance) ; Prices

INTERNATIONAL FOOD STAMPS

Food Security and Poverty,

A NOTE ON THE SOCIAL RETURNS TO PRIVATE R&D

Research and Development/Tech Change/Emerging Technologies,

ARE LARGE FARMS MORE EFFICIENT?

Accurate estimates of returns to scale require that inputs and output are measured without error and that environmental and managerial differences among firms of varying sizes are taken into account. Measurement problems affecting estimates of returns to scale in agriculture include: (1) combining the farm dwelling with capital inputs, (2) correlation of environmental and management characteristics with size and (3) the effect of off-farm employment on small farm output and production costs. Estimates of long run average total cost curves for farms in the corn belt reveal that after the above factors are taken into account, estimated scale economies in agriculture disappear, while there is evidence of diseconomies as farm size increases.Farm Management, Productivity Analysis,

What impact will E-commerce have on the U.S. economy?

In recent years, e-commerce has emerged as the fastest growing sector of the U.S. marketplace. Despite the contraction in the high-tech industry during the recent recession, firms have continued to enter and expand their presence in e-commerce, and consumers have increased the number of purchases made online. E-commerce currently represents a very small share of overall commerce, but it is expected to continue to expand rapidly in coming years. As e-commerce grows, so will its impact on the overall economy. ; The primary route by which e-commerce will affect the economy at large is through its impact on productivity and inflation. Businesses and consumers that use e-commerce benefit from a reduction in costs in terms of the time and effort required to search for goods and services and to complete transactions. This reduction in costs results in higher productivity. An even larger increase in economy-wide productivity levels may result from productivity gains by firms not engaged in e-commerce as they respond to this new source of competition. Continued expansion of e-commerce may also lead to downward pressure on inflation through greater competition, cost savings, and changes in price-setting behavior of sellers. ; Willis examines the economic factors that have contributed to the rapid growth of e-commerce and assesses how the future growth of e-commerce may affect the overall economy. He concludes that if e-commerce continues to grow rapidly, it could lead to an increase in productivity growth and downward inflationary pressures that persist for several years.Electronic commerce ; Productivity

INTERNATIONAL LAND QUALITY INDEXES

Land Economics/Use,

SOURCES OF DIFFERENCES IN RATES OF RETURN TO AGRICULTURAL RESEARCH BETWEEN COUNTRIES: SOME GENERAL OBSERVATIONS

Research and Development/Tech Change/Emerging Technologies,

ECONOMIC RETURN TO PUBLIC INVESTMENT IN AGRICULTURAL RESEARCH AND EXTENSION

Research and Development/Tech Change/Emerging Technologies,

THE EFFECT OF PART-TIME EMPLOYMENT ON STUDENT ALLOCATION OF TIME AND ACADEMIC PERFORMANCE

Labor and Human Capital,