A recent Newsweek article entitled “Why We’re Married to the Market” observed: “Seldom, if ever, has Main Street been so enthralled with Wall Street. We have become a nation of stock junkies—splurging on mutual funds, scouring market tables, and studying personal-finance columns” (Samuelson 1998). Journalists, policymakers, and observers from all walks of life have been taking note of the incre...

Are there systematic political economy factors that shape preferences for foreign aid, a key component of American foreign policy? We analyze votes in the House of Representatives from 1979 to 2003 that would increase or decrease foreign aid by considering the political, economic, and ideological characteristics of legislators and their districts. To understand who supports and opposes foreign ...

The application of Samuelson's theorem on value invariance to the case of intertemporally optimizing "rms is shown to require a judiciously chosen economic depreciation formula which depends on both current stock and current #ow variables, in order to prevent the "rms from changing their actions in the face of the tax regime. We illustrate by deriving depreciation rules which achieve non-distor...

Theoretically and experimentally, we generalize the analysis of acquiring a company (Samuelson and Bazerman 1985) by allowing for competition of both, buyers and sellers. Näıvety of both is related to the idea that higher prices exclude worse qualities. While competition of näıve buyers increases prices, competition of näıve sellers promotes efficiency enhancing trade. Our predictions are teste...

In this paper, the link between capital inflows and real exchange rate movements in LDCs is revisited theoretically and empirically. On the theoretical side we present a simple model to show that the real exchange rate depends mainly on “real fundamentals” such as terms of trade or productivity differentials. Empirically, we take into account the heterogeneity of the sample, the dynamics of the...

In this paper, the link between capital inflows and real exchange rate movements in LDCs is revisited theoretically and empirically. On the theoretical side we present a simple model to show that the real exchange rate depends mainly on “real fundamentals” such as terms of trade or productivity differentials. Empirically, we take into account the heterogeneity of the sample, the dynamics of the...

We integrate three hitherto unconnected strands of economic theory; Lewis’ dual economy model, the Balassa-Samuelson model and, segmented labour market theory. With our hybrid model we investigate the implications of migration with labour market segmentation for an economy’s internal competitiveness, where migrants are concentrated in the secondary labour market and this segment supplies unskil...

This study examines the government policy of public goods provision and its effects on economic growth welfare under intergenerational altruism. The considers an endogenous model with altruistic overlapping generations. preferences current youth exhibit a future bias, thus, democratically elected governments are subject to this bias. optimal rule for supply bias differs from original Samuelson ...