Economics

North begins his book by stating that "institutions are the rules of the game in a society or, more formally, are the humanly devised constraints that shape human interaction."(3) That being said North then proposes to examine institutions, changes in them, and their impact on economic performance over time.

THIS PAPER DISCUSSES the bias that results from using nonrandomly selected samples to estimate beliavioral relationships as an ordinary specification bias that arises because of a missing data problem. In contrast to the usual analysis of "omitted variables" or specification error ...

made notable and constructive criticisms. Finally, I hope the dedication to my wife indicates how much I appreciate her help and encouragement. In addition to all of the other things she has done for me and for our three children, she helped with both the style and substance of this book.

This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data. The paper also examines the implications of the Solow model for convergence in standards of living, that is, for whether poor countries tend to grow faster than rich countries. The evidence indicates that, holding population growth and capital accumulation constant, countries converge at about the rate the augmented Solow model predicts.

Renewable energy and climate change Demand for energy and associated services, to meet social and economic development and improve human welfare and health, is increasing. All societies require energy services to meet basic human needs (e.g., lighting, cooking, space comfort, mobility and communication) and to serve productive processes. [1.1.1, 9.3.2] Since approximately 1850, global use of fossil fuels (coal, oil and gas) has increased to dominate energy supply, leading to a rapid growth in carbon dioxide (CO 2 ) emissions. [ .6] Greenhouse gas (GHG) emissions resulting from the provision of energy services have contributed significantly to the historic increase in atmospheric GHG concentrations. The IPCC Fourth Assessment Report (AR4) concluded that "Most of the observed increase in global average temperature since the mid-20th century is very likely 2 due to the observed increase in anthropogenic greenhouse gas concentrations."

This paper develops a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary. The proposed tests are based on standard F- and t-statistics used to test the significance of the lagged levels of the variables in a univariate equilibrium correction mechanism. The asymptotic distributions of these statistics are non-standard under the null hypothesis that there exists no level relationship, irrespective of whether the regressors are I(0) or I(1). Two sets of asymptotic critical values are provided: one when all regressors are purely I(1) and the other if they are all purely I(0). These two sets of critical values provide a band covering all possible classifications of the regressors into purely I(0), purely I(1) or mutually cointegrated. Accordingly, various bounds testing procedures are proposed. It is shown that the proposed tests are consistent, and their asymptotic distribution under the null and suitably defined local alternatives are derived. The empirical relevance of the bounds procedures is demonstrated by a re-examination of the earnings equation included in the UK Treasury macroeconometric model. Copyright © 2001 John Wiley & Sons, Ltd.

This article examines five common misunderstandings about case-study research: (a) theoretical knowledge is more valuable than practical knowledge; (b) one cannot generalize from a single case, therefore, the single-case study cannot contribute to scientific development; (c) the case study is most useful for generating hypotheses, whereas other methods are more suitable for hypotheses testing and theory building; (d) the case study contains a bias toward verification; and (e) it is often difficult to summarize specific case studies. This article explains and corrects these misunderstandings one by one and concludes with the Kuhnian insight that a scientific discipline without a large number of thoroughly executed case studies is a discipline without systematic production of exemplars, and a discipline without exemplars is an ineffective one. Social science may be strengthened by the execution of a greater number of good case studies.

This book seeks to integrate research on cause and effect inference from cognitive science, econometrics, epidemiology, philosophy, and statistics+ It puts forward the work of its author, his collaborators, and others over the past two decades as a new account of cause and effect inference that can aid practical

For 98 countries in the period 1960-1985, the growth rate of real per capita GDP is positively related to initial human capital (proxied by 1960 schoolenrollment rates) and negatively related to the initial (1960) level of real per capita GDP. Countries with higher human capital also have lower fertility rates and higher ratios of physical investment to GDP. Growth is inversely related to the share of government consumption in GDP, but insignificantly related to the share of public investment. Growth rates are positively related to measures of political stability and inversely related to a proxy for market distortions.

One strand of endogenous-growth models assumes constant returns to a broad concept of capital. I extend these models to include taxfinanced government services that affect production or utility. Growth and saving rates fall with an increase in utility-type expenditures; the two rates rise initially with productive government expenditures but subsequently decline. With an income tax, the decentralized choices of growth and saving are "too low," but if the production function is Cobb-Douglas, the optimizing government still satisfies a natural condition for productive efficiency. Empirical evidence across countries supports some of the hypotheses about government and growth.

We investigate the causes of civil war, using a new data set of wars during 1960-99. Rebellion may be explained by atypically severe grievances, such as high inequality, a lack of political rights, or ethnic and religious divisions in society. Alternatively, it might be explained by atypical opportunities for building a rebel organization. While it is difficult to find proxies for grievances and opportunities, we find that political and social variables that are most obviously related to grievances have little explanatory power. By contrast, economic variables, which could proxy some grievances but are perhaps more obviously related to the viability of rebellion, provide considerably more explanatory power.

Intensive care is an integral but expensive component of healthcare in developed countries . An estimate in the US is that fully 2% of the population receives intensive care every year , and overall the percentage of patients who receive intensive care before they die is increasing . Projections of the need for mechanical ventilation predict an exponential growth in the coming years due to the aging population and their over-representation among mechanically ventilated cohorts ; this increase in need for mechanical ventilation will be associated with increasing costs of intensive care . Much of the focus of intensive care is on improvements in technology for organ support and resuscitation. Yet quality healthcare also involves appropriate organization of resources, with the potential to both impact patient outcomes and the costs of the care provided. These economic considerations are likely to become increasingly important as the demand for critical care increases in the face of limited resources.

In this Edition of the book, he had endeavored to explain more fully than in the last, the difficult subjects of VALUE, and inserted the subject of MACHINERY and on the effects of its improvement on the interests of the different classes of the State. He strongly points out that the doctrine of the ability of a country to pay additional money taxes, although the aggregate money value of the mass of its commodities should fall, in consequence either of the diminished quantity of labor required to produce its corn at home, by improvements in its husbandry, or from its obtaining a part of its corn at a cheaper price from abroad, by means of the exportation of its manufactured

s Abstract The literature on effects of habitat fragmentation on biodiversity is huge. It is also very diverse, with different authors measuring fragmentation in different ways and, as a consequence, drawing different conclusions regarding both the magnitude and direction of its effects. Habitat fragmentation is usually defined as a landscape-scale process involving both habitat loss and the breaking apart of habitat. Results of empirical studies of habitat fragmentation are often difficult to interpret because (a) many researchers measure fragmentation at the patch scale, not the landscape scale and (b) most researchers measure fragmentation in ways that do not distinguish between habitat loss and habitat fragmentation per se, i.e., the breaking apart of habitat after controlling for habitat loss. Empirical studies to date suggest that habitat loss has large, consistently negative effects on biodiversity. Habitat fragmentation per se has much weaker effects on biodiversity that are at least as likely to be positive as negative. Therefore, to correctly interpret the influence of habitat fragmentation on biodiversity, the effects of these two components of fragmentation must be measured independently. More studies of the independent effects of habitat loss and fragmentation per se are needed to determine the factors that lead to positive versus negative effects of fragmentation per se. I suggest that the term "fragmentation" should be reserved for the breaking apart of habitat, independent of habitat loss.

We compare the geographic location of patent citations to those of the cited patents, as evidence of the extent to which knowledge spillovers are geographically localized. We find that citations to U.S. patents are more likely to come from the U.S., and more likely to come from the same state and SMSA as the cited patents than one would expect based only on the preexisting concentration of related research activity. These effects are particularly significant at the local (SMSA) level, and are particularly apparent in early citations.

The research program of the Center for Economic Studies produces a wide range of theoretical and empirical economic analyses which serve to improve the statistical programs of the U. S. Bureau of the Census. Many of these analyses take the form of research papers. The purpose of the Discussion Papers is to circulate intermediate and final results of this research among interested readers within and outside the Census Bureau. The opinions and conclusions expressed in the papers are those of the authors and do not necessarily represent those of the U. S. Bureau of the Census. All papers are screened to ensure that they do not disclose confidential information. Persons who wish to obtain a copy of the paper, submit comments about the paper, or obtain general information about the series should contact Sang. V.

While the issues raised by Marius Schwartz and Robert Reynolds are quite different from those raised by Martin Weitzman, they have three significant common elements: an at-tempt to impose a dynamic mechanism upon a static equilibrium analysis, the provision of new and ...

We present a simple overlapping generations model of an asset market in which irrational noise traders with erroneous stochastic beliefs both affect prices and earn higher expected returns. The unpredictability of noise traders' beliefs creates a risk in the price of the asset that deters rational arbitrageurs from aggressively betting against them. As a result, prices can diverge significantly from fundamental values even in the absence of fundamental risk. Moreover, bearing a disproportionate amount of risk that they themselves create enables noise traders to earn a higher expected return than do rational investors. The model sheds light on a number of financial anomalies, including the excess volatility of asset prices, the mean reversion of stock returns, the underpricing of closed end mutual funds, and the Mehra-Prescott equity premium puzzle.

A stochastic frontier production function is defined for panel data on firms, in which the non-negative technical inefficiency effects are assumed to be a function of firm-specific variables and time. The inefficiency effects are assumed to be independently distributed as truncations of normal distributions with constant variance, but with means which are a linear function of observable variables. This panel data model is an extension of recently proposed models for inefficiency effects in stochastic frontiers for cross-sectional data. An empirical application of the model is obtained using up to ten years of data on paddy farmers from an Indian village. The null hypotheses, that the inefficiency effects are not stochastic or do not depend on the farmer-specific variables and time of observation, are rejected for these data.

How did the industrialized nations of North America and Europe come to be seen as the appropriate models for post-World War II societies in Asia, Africa, and Latin America? How did the postwar discourse on development actually create the so-called Third World? And what will happen when development ideology collapses? To answer these questions, Arturo Escobar shows how development policies became mechanisms of control that were just as pervasive and effective as their colonial counterparts. The development apparatus generated categories powerful enough to shape the thinking even of its occasional critics while poverty and hunger became widespread. "Development" was not even partially "deconstructed" until the 1980s, when new tools for analyzing the representation of social reality were applied to specific "Third World" cases. Here Escobar deploys these new techniques in a provocative analysis of development discourse and practice in general, concluding with a discussion of alternative visions for a postdevelopment era. Escobar emphasizes the role of economists in development discourse--his case study of Colombia demonstrates that the economization of food resulted in ambitious plans, and more hunger. To depict the production of knowledge and power in other development fields, the author shows how peasants, women, and nature became objects of knowledge and targets of power under the "gaze of experts." In a substantial new introduction, Escobar reviews debates on globalization and postdevelopment since the book's original publication in 1995 and argues that the concept of postdevelopment needs to be redefined to meet today's significantly new conditions. He then calls for the development of a field of "pluriversal studies," which he illustrates with examples from recent Latin American movements.

Arturo Escobar is the Kenan Distinguished Professor of Anthropology at the University of North Carolina, Chapel Hill. His most recent book is "Territories of Difference".

This paper develops the method of matching as an econometric evaluation estimator. A rigorous distribution theory for kernel-based matching is presented. The method of matching is extended to more general conditions than the ones assumed in the statistical literature on the topic. We focus on the method of propensity score matching and show that it is not necessarily better, in

This paper considers how identity, a person's sense of self, affects economic outcomes. We incorporate the psychology and sociology of identity into an economic model of behavior. In the utility function we propose, identity is associated with different social categories and how people in these categories should behave. We then construct a simple game-theoretic model showing how identity can affect individual interactions. The paper adapts these models to gender discrimination in the workplace, the economics of poverty and social exclusion, and the household division of labor. In each case, the inclusion of identity substantively changes conclusions of previous economic analysis.