What should economists measure? The implications of mass production vs. mass customization

Consumer behavior ; Production (Economic theory) ; Productivity

Country-bashing tariffs: do bilateral trade deficits matter?

Balance of trade ; Tariff

Variety, globalization, and social efficiency

This paper puts recent work on the benefits of variety into the context of an exact quantitative analysis of the Dixit-Stiglitz-Krugman model of monopolistic competition. We show that the gains from international trade are almost completely determined by the increase in variety and not economies of scale, and that the social efficiency question is quantitatively insignificant. These results follow from allowing the number of varieties to affect the elasticity of demand facing each firm. Most applications of the DSK model abstract from variety’s effect by assuming that the elasticity of demand facing each firm equals the elasticity of substitution in a CES utility function, thus fixing the output of each firm by the resulting markup over marginal costs. Finally, we develop a precise expression for real per capita income with any number of sectors. ; Also issued as Globalization and Monetary Policy Institute Working Paper No. 15

Astigmatism and Pseudoaccommodation in Pseudophakic Eyes

noAdvanced IOLs with circumferential zones of different power provide pseudoaccommodation. We investigated the potential for power variation with meridian, namely astigmatism, to provide pseudo-accommodation. With appropriate power and axis orientations, acceptable pseudo-accommodation can be achieved

Properties of the non-Gaussian fixed point in 4D compact U(1) lattice gauge theory

We examine selected properties of the gauge-ball spectrum and fermionic variables in the vicinity of the recently discussed non-Gaussian fixed point of 4D compact U(1) lattice gauge theory within the quenched approximation. Approaching the critical point from within the confinement phase, our data support scaling of $T1^{+-}$ gauge-ball states in units of the string tension square root. The analysis of the chiral condensate within the framework of a scaling form for the equation of state suggests non mean-field values for the magnetic exponents $\delta$ and $\beta_{exp}$.Comment: 73K postscript fil

Universality of the gauge-ball spectrum of the four-dimensional pure U(1) gauge theory

We continue numerical studies of the spectrum of the pure U(1) lattice gauge theory in the confinement phase, initiated in our previous work. Using the extended Wilson action $S = -\sum_P [\beta \cos(\Theta_P) + \gamma \cos(2\Theta_P)]$ we address the question of universality of the phase transition line in the ($\beta,\gamma$) plane between the confinement and the Coulomb phases. Our present results at $\gamma= -0.5$ for the gauge-ball spectrum are fully consistent with the previous results obtained at $\gamma= -0.2$. Again, two different correlation length exponents, $\nu_{ng} = 0.35(3)$ and $\nu_{g} = 0.49(7)$, are obtained in different channels. We also confirm the stability of the values of these exponents with respect to the variation of the distance from the critical point at which they are determined. These results further demonstrate universal critical behaviour of the model at least up to correlation lengths of 4 lattice spacings when the phase transition is approached in some interval at $\gamma\leq -0.2$.Comment: 16 page

Income taxes as reciprocal tariffs

Tariff ; Taxation

Income taxes as reciprocal tariffs

This article shows the equivalence between tariffs on international trade and income taxation. Traditionally, income taxes have been seen as lowering society's output through the household's labor-leisure trade-off. Income taxes also reduce the degree to which individuals specialize in market activity, which is similar to the way countries respond to tariffs in international trade. Income taxes discourage individuals from specializing in activities that reflect their comparative advantage. In so doing, income taxes may have their most distorting effects, not by encouraging individuals to work less but by causing them to spend more time working at endeavors for which their talent is limited. Using a general model of interpersonal exchange, the authors demonstrate parallels between income taxes and tariffs. Over a range of income taxes, raising taxes can benefit large groups of similarly skilled individuals and hurt small groups. As in tariff theory, the costs of income taxes are small only if they succeed in raising revenue. Thus, it is very costly for an economy to be on the downward portion of its tax revenue (Laffer) curve. The more heterogeneous the society, the higher the income tax rate that will maximize tax revenues. By overlooking the effects of heterogeneity in the workforce and the potential for workers to flee to home production, policymakers may under- or overestimate the effects of income taxes on various sectors of the economy and tax with unintended consequences.Income tax ; Tariff ; Taxation

Generalized Model of Resonant Polymer-Coated Microcantilevers in Viscous Liquid Media

Expressions describing the resonant frequency and quality factor of a dynamically driven, polymer-coated microcantilever in a viscous liquid medium have been obtained. These generalized formulas are used to describe the effects the operational medium and the viscoelastic coating have on the device sensitivity when used in liquid-phase chemical sensing applications. Shifts in the resonant frequency are normally assumed proportional to the mass of sorbed analyte in the sensing layer. However, the expression for the frequency shift derived in this work indicates that the frequency shift is also dependent on changes in the sensing layer’s loss and storage moduli, changes in the moment of inertia, and changes in the medium of operation’s viscosity and density. Not accounting for these factors will lead to incorrect analyte concentration predictions. The derived expressions are shown to reduce to well-known formulas found in the literature for the case of an uncoated cantilever in a viscous liquid medium and the case of a coated cantilever in air or in a vacuum. The theoretical results presented are then compared to available chemical sensor data in aqueous and viscous solutions