American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article Trade Costs James E.Anderson Ericvan Wincoop 691 751 This paper surveys the measurement of trade costs: what we know and don't know but may usefully attempt to learn. Partial and incomplete data on direct measures of costs go with inference on implicit costs from trade flows and prices. Total trade costs in rich countries are large. The ad valorem tax equivalent is about 170 percent when pushing the data hard. Poor countries face even higher trade costs. There is a lot of variation across countries and across goods within countries, much of which makes economic sense. In our survey, theory provides interpretation and perspective and suggests improvements for the future. Some new results are presented to properly apply and interpret gravity theory and handle aggregation. http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=1&issue_date=September 2004 10.1257/0022051042177649 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article International Technology Diffusion WolfgangKeller 752 782 This paper surveys what is known about the extent of international technology diffusion and channels through which technology spreads. Productivity differences explain much of the variation in incomes across countries, and technology plays a key role in determining productivity. The pattern of worldwide technical change is determined largely by international technology diffusion because a few rich countries account for most of the world's creation of new technology. Cross-country income convergence turns on whether technology diffusion is global or local. There is no indication that international diffusion is inevitable or automatic, but rather, domestic technology investments are necessary. Better understanding of what determines the effectiveness of technology diffusion sheds light on the pace at which the world's technology frontier may expand. http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=2&issue_date=September 2004 10.1257/0022051042177685 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article Rational Exuberance Stephen F.Le Roy 783 804 This article reviews the theory of speculative bubbles. Bubbles are a promising candidate as an explanation for the stock price run-up and collapse of the 1990s in the United States. The theory considers both irrational and rational bubbles, with emphasis on the latter. Rational bubbles, defined as the excess of security or portfolio prices over present values, can occur under conditions that are well understood. One argument relies on the assumed Pareto-optimality of equilibrium that rules out rational bubbles, but it is suggested that this argument is implausible. http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=3&issue_date=September 2004 10.1257/0022051042177711 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article Review of Mokyr's Gifts of Athena Hal R.Varian 805 810 http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=4&issue_date=September 2004 10.1257/0022051042177667 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article Celebrating Ned AxelLeijonhufvud 811 821 http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=5&issue_date=September 2004 10.1257/0022051042177658 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article The Years of Emerging Market Crises: A Review of Feldstein JohnWilliamson 822 837 http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=6&issue_date=September 2004 10.1257/0022051042177702 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article Book Reviews 838 890 http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=7&issue_date=September 2004 10.1257/0022051042177694 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article Annotated Listing of New Books 891 991 http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=8&issue_date=September 2004 10.1257/0022051042177676 American Economic Association Nashville, TN 0022-8282 Journal of Economic Literature http://www.aeaweb.org/journal.html 42 3 September 2004 http://www.aeaweb.org/articles/issue_detail.php?journal=JEL&volume=42&issue=3&issue_date=September 2004 Journal Article JEL Classification System 992 1003 http://www.aeaweb.org/articles/article_detail.php?journal=JEL&volume=42&issue=3&article=9&issue_date=September 2004 10.1257/0022051042177720