Speculative Prices and Popular Models

[Symposium: Bubbles]

By Robert J. Shiller

Journal of Economic Perspectives, Spring 1990

The key idea of rational expectations models is to assume that people know (or behave as if they know) the true model that describes the economy. However, popular economic models (the models that are used by the broad masses of economic actors to form the...

The Stock Market Boom and Crash of 1929 Revisited

[Symposium: Bubbles]

By Eugene N. White

Journal of Economic Perspectives, Spring 1990

This paper will sort through many of the hypotheses offered to explain the 1929 boom and bust. Most of the factors cited by historians played trivial or insignificant roles. The central issue is whether fundamentals or a bubble drove the bull market upwar...

On Testing for Speculative Bubbles

[Symposium: Bubbles]

By Robert P. Flood and Robert J. Hodrick

Journal of Economic Perspectives, Spring 1990

The possibility that movements in prices could be due to the self-fulfilling prophecies of market participants has long intrigued observers of free markets. This paper surveys the current state of the empirically-oriented literature concerning rational dy...

Line-Item Veto: Where Is Thy Sting?

By John R. Carter and David Schap

Journal of Economic Perspectives, Spring 1990

Proponents of giving the president the authority to use a line-item veto argue that the institutional change is needed to limit special-interest legislation and restrain spending. Opponents respond that it would grant too much added power to the president...

The Econometrics of Kinked Budget Constraints

By Robert Moffitt

Journal of Economic Perspectives, Spring 1990

In the last several years, a branch of applied econometrics has developed that is devoted to the development of techniques for the estimation of demand and other functions when the budget constraint is "piecewise-linear,+ or "kinky"—that is, when th...

Distinguished Fellow: Houthakker's Contributions to Economics

By Robert A. Pollak

Journal of Economic Perspectives, Spring 1990

Hendrik Houthakker's contributions to economics defy capsule description. A better strategy than providing abstracts of the books and articles on his long and impressive vita is discussing one or two topics in detail, placing at least some of his contribu...

Socialist Economics: The Disequilibrium School and the Shortage Economy

By Jozef M. van Brabant

Journal of Economic Perspectives, Spring 1990

This article focuses on the debate between Richard Portes and Janos Kornai as the respective exponents of two interpretations of economic behavior in centrally planned economies: the disequilibrium school, and the theory of the shortage economy. My object...

Puzzles: Queues, Coups and More

By Barry Nalebuff

Journal of Economic Perspectives, Spring 1990

This is my ninth and last column of puzzles.

Retrospectives: Ceteris Paribus

By Joseph Persky

Journal of Economic Perspectives, Spring 1990

In Webster's Dictionary is an example of how to use "ceteris paribus": [S]taple-growing states are, ceteris paribus, more favorable to slave labor than manufacturing states." I suspect it would take a minor treatise to elucidate fully the ceteris paribus ...

Recommendations for Further Reading

By Bernard Saffran

Journal of Economic Perspectives, Spring 1990

Anomalies: Preference Reversals

By Amos Tversky and Richard H. Thaler

Journal of Economic Perspectives, Spring 1990

The preference reversal phenomenon has been established in numerous studies during the last two decades, but its causes have only recently been uncovered. This phenomenon, or cluster of phenomena, challenges the traditional assumption that the decisionmak...

Correspondence

By Andrew R. Dick and John R. Lott

Journal of Economic Perspectives, Spring 1990

Correspondence and responce regarding: The Role of Potential Competition in Industrial Organization Response: The Role of Potential Competition in Industrial Organization

Notes

Journal of Economic Perspectives, Spring 1990

Front Matter

Journal of Economic Perspectives, Spring 1990

Symposium on the State and Economic Development

[Symposium: The State and Economic Development]

By Pranab Bardhan

Journal of Economic Perspectives, Summer 1990

The role of the state in economic development is one of the oldest topics in economics, yet controversies rage with similar passion and camps are divided on lines today broadly similar to the early writings. Though the authors of the papers in this sympos...

Government Failures in Development

[Symposium: The State and Economic Development]

By Anne O. Krueger

Journal of Economic Perspectives, Summer 1990

By the 1970s and early 1980s, governments in most developing countries were mired down in economic policies that were manifestly unworkable. Whether market failures had been present or not, most knowledgeable observers concluded that there had been coloss...

Market Failure and Government Failure

[Symposium: The State and Economic Development]

By Mrinal Datta-Chaudhuri

Journal of Economic Perspectives, Summer 1990

For several decades a debate has been raging in development economics on the relative virtues of the free market as opposed to state intervention, with neither side convincing the other. While this sterile debate continues, experiences accumulated from re...

Industrial Policy in an Export-Propelled Economy: Lessons from South Korea's Experience

[Symposium: The State and Economic Development]

By Larry E. Westphal

Journal of Economic Perspectives, Summer 1990

Korea provides an illuminating case of state intervention to promote economic development. Like many other third world governments, Korea's government has selectively intervened to affect the allocation of resources among industrial activities. It has use...

The Latin American State

[Symposium: The State and Economic Development]

By Albert Fishlow

Journal of Economic Perspectives, Summer 1990

The role of the state in Latin American economic development is undergoing fundamental reconsideration. This essay focuses on the reasons underlying the new commitment to reduced state participation. In particular, I suggest that the impetus comes less fr...

Innovation and Cooperation: Implications for Competition and Antitrust

[Symposium: Collaboration, Innovation and Antitrust]

By Thomas M. Jorde and David J. Teece

Journal of Economic Perspectives, Summer 1990

This paper begins by describing the nature of the innovation process. We then explore socially beneficial forms of cooperation that can assist the development and commercialization of new technology, and suggest modifications to current U.S. antitrust law...