Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Winter 1989

Anomalies: A Mean-Reverting Walk Down Wall Street

By Werner F. M. De Bondt and Richard H. Thaler

Journal of Economic Perspectives, Winter 1989

Stock prices do appear to be somewhat predictable. In particular, if one takes a long-term perspective (3-7 years) or examines individual securities that have experienced extreme price movements, then stock returns display significant negative serial corr...

Index to Volumes 1 and 2

Journal of Economic Perspectives, Winter 1989

Front Matter

Journal of Economic Perspectives, Winter 1989

Notes

Journal of Economic Perspectives, Winter 1989

Symposium on Women in the Labor Market

[Symposium: Women in the Labor Market]

Journal of Economic Perspectives, Winter 1989

This symposium contains four essays on the general topic of women in the labor market. The essays are varied, not only in focus, but also in philosophical outlook. The topic is of central importance today. Few economic trends have been more pronounced or ...

Distinguished Lecture on Economics in Government: Central Banking and Systemic Risks in Capital Markets

By Andrew F. Brimmer

Journal of Economic Perspectives, Spring 1989

Bagehot's conception of the last resort lending function of the central bank is shared by most economists today. On several occasions, the Federal Reserve has digressed from its overall strategy of monetary control to also undertake a tactical rescue of ...

Symposium on the Budget Deficit

[Symposium: Budget Deficit]

By Janet L. Yellen

Journal of Economic Perspectives, Spring 1989

Is the ballooning federal budget deficit a serious economic problem? The papers in this symposium provide four perspectives on this issue. Robert Barro and Robert Eisner disagree sharply with the "majority" opinion concerning deficits. In contrast, Edward...

Budget Deficits and National Saving: Are Politicians Exogenous?

[Symposium: Budget Deficit]

By Edward M. Gramlich

Journal of Economic Perspectives, Spring 1989

After years of relative abstinence, the United States has experimented with persistent budget deficits on a rather massive scale in the 1980s. Economists have generally been quite critical of this fiscal policy, though there are respectable minority views...

The Ricardian Approach to Budget Deficits

[Symposium: Budget Deficit]

By Robert J. Barro

Journal of Economic Perspectives, Spring 1989

In recent years there has been a lot of discussion about U.S. budget deficits. Many economists and other observers have viewed these deficits as harmful to the U.S. and world economies. The supposed harmful effects include high real interest rates, low sa...

A Neoclassical Perspective on Budget Deficits

[Symposium: Budget Deficit]

By B. Douglas Bernheim

Journal of Economic Perspectives, Spring 1989

Generally speaking, there are three schools of thought concerning the economic effects of budget deficits: Neoclassical, Keynesian, and Ricardian. It is remarkable that from among these three schools of thought, one can find support for every conceivable ...

Budget Deficits: Rhetoric and Reality

[Symposium: Budget Deficit]

By Robert Eisner

Journal of Economic Perspectives, Spring 1989

Whatever the real or imagined ills of the economy, the news media, most politicians and a fair proportion of the economics profession are quick to point to the culprit: "the budget deficit." No matter that few appear to know or care precisely what deficit...

Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders

By Robert W. Hahn

Journal of Economic Perspectives, Spring 1989

In this paper, I consider two tools which have received widespread support from the economics community: marketable permits and emission charges. Until the 1960s, these tools only existed on blackboards and in academic journals, as products of the fertil...

Economic Methodology in a Nutshell

By Daniel M. Hausman

Journal of Economic Perspectives, Spring 1989

This essay is a tendentious survey of standard methodological literature, focusing on the empirical appraisal of theory, microeconomic theory in particular. I shall in particular discuss four approaches to praising or damning microeconomic theory that hav...

The Corporate Bankruptcy Decision

By Michelle J. White

Journal of Economic Perspectives, Spring 1989

Economic theory suggests that bankruptcy should serve as a screening process designed to eliminate only those firms that are economically inefficient and whose resources could be better used in some other activity. However, firms typically file for bankru...

Distinguished Fellow: Reflections of Thomas Schelling

By Richard Zeckhauser

Journal of Economic Perspectives, Spring 1989

Thomas Crombie Schelling thinks about the essence of phenomena. He distills such essences and demonstrates their presence in many important social phenomena. We shall chronicle three stages of his life, designated by the titles of his books: The Strategy ...

Puzzles: Love and Spaghetti, the Opportunity Cost of Virtue

By Ted Bergstrom

Journal of Economic Perspectives, Spring 1989

In honor of St. Valentine's day, we offer a puzzle about love and a puzzle about virtue.

Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Spring 1989

Anomalies: Interindustry Wage Differentials

By Richard H. Thaler

Journal of Economic Perspectives, Spring 1989

Firms advertise widely varying wages for jobs that appear to be very similar, such as secretary, data entry clerk, or "tele-marketing representative." Students who graduate from Cornell's MBA program often receive offers from several firms in the same cit...

Correspondence

By Peter J. Boettke

Journal of Economic Perspectives, Spring 1989

Correpondence regarding: Information and the Coase Theorem Anomalies, Parimutel Betting Markets: Racetracks and Lotteries