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Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Notes on Hotelling's economic's of exhaustible resources. The paper provides some extensions of Hotetling's fundamental paper on the economic theory of exhaustible resources. One of the main modifications introduced in this paper concerns the assumption of complete versus incomplete exhaustion of the resource. Under complete exhaustion the concept of 'full marginal cost' must include a term which refleets the alternative cost of producting an extra unit at the terminal time. Under incomplete exhaustion this term vanishes To derive these results, we present a novel formula for the 'full marginal cost' of extracting exhaustible resources. The principle that marginal profit has to increase over time exponentially at a rate equal to the rate of interest (r per cent rule) is shown to be valid only under special conditions. The modifications to this rule are discussed. [ABSTRACT FROM AUTHOR]

Comments on an article about the treatment of serial correlation in the regression residuals of estimated economic relationships. Information on the test of the acceptability of the common assumption that the observed serial correlation was caused by the errors of the regression equation; Use of the estimated regression coefficient.

Introduces a series of articles about exchange rates which appeared in the 1982 issue of the 'Journal of Canadian Economics.'

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article focuses on the activities related to the "Canadian Journal of Economics" for the period May 1, 2009 to April 30, 2010, discussed during the 44TH Annual General Meeting of The Canadian Economics Association (CEA). Information on the operational activities including volume size along with the number of submissions for 2009 and previous years, is presented.

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the determinants of editorial board membership, for 17 leading journals in economics, from 1997 to 2009. We find that the researcher's scientific profile and connections to the editors in charge are significant predictors of editorship. Ceteris paribus, after controlling for unobserved researcher heterogeneity, scholars with links to editors in the co‐authorship network are more likely to serve as editors and this advantage decreases sharply with the social distance. Being a present or former departmental colleague or protégé of an editor‐in‐charge is positively associated with the probability of appointment to the board. Résumé: Liens sociaux et comités éditoriaux en économie. Cet article explore les éléments déterminants relatifs à la composition des comités éditoriaux de 17 revues économiques de premier plan entre 1997 et 2009. Nous avons constaté que le profil scientifique du chercheur ainsi que ses relations avec les éditeurs augmentent la probabilité d'être membre d'un comité éditorial. Toutes choses étant égales par ailleurs, et après avoir neutralisé l'hétérogénéité non observée des chercheurs, il apparaît que les chercheurs en lien avec des éditeurs dans un réseau de corédaction sont davantage susceptibles de devenir éditeurs à leur tour, et que cet avantage s'amenuise drastiquement avec la distance sociale. Le fait d'avoir été collègue au sein d'un même département ou mentoré par un éditeur est associé de fac¸on positive à la probabilité d'intégrer le comité éditorial. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Reports on news items concerning the Canadian Economics Association (CEA) as of October 1, 2001. Minutes of the 35th CEA annual general meeting on June 3, 2001; Results of the 2001 election; Activities related to the 'Canadian Journal of Economics.'

This paper examines the macro economic properties of imperfectly competitive economies by modelling the labour market from the perspective of optimal contract theory. The point is to demonstrate that important properties of imperfectly competitive economies (such as underemployment equilibria, multipliers, and the prospect of co-ordination failures) are not the consequence of arbitrary labour relations but can emerge with privately optimal labour contracts. [ABSTRACT FROM AUTHOR]

This paper examines the effect of the international competitiveness of home producers on their pricing. Evidence based on the 1970-75 period supports the claim that in the Canadian manufacturing sector domestic prices are set in accordance with a mixture of two pricing hypotheses: the 'Eastman-Stykolt pricing hypothesis' (ESPH) and the 'monopolistic pricing hypothesis' (MPH). However, in the 1975-80 period, when their competitiveness increased, prices were set solely according to the MPH. For the purposes of assessing the impact of free trade, this paper shows the circumstances under which each or a mixture of these pricing hypotheses employed in the Harris / Cox model on the gains from freer trade would be appropriate. [ABSTRACT FROM AUTHOR]

Previous estimates of the finding costs for oil and natural gas reserves have been impeded by the joint-cost problem in exploration. The solutions have been either to estimate the finding cost for an oil-gas aggregate or to allocate total finding costs between oil discoveries and gas discoveries according to rules chosen by the researcher. In this paper the joint-cost problem is circumvented by estimating a multiple-output, exploration cost function which is used to calculate the predicted values of marginal finding costs for oil and gas. These values are then compared with independent estimates of the shadow prices of reserves for oil and gas to help settle the debate over whether marginal finding costs provide a good measure of rent. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between financial decisions and output decisions in oligopolistic markets. Assuming a duopoly market structure in which financial decisions and output decisions follow in sequence, we analyse how bankruptcy costs that are incurred when the firm is unable to meet current debt obligations affect the firm's behaviour in output markets. With fixed bankruptcy costs, firms have an incentive to increase output levels if they take on more debt. Proportional bankruptcy costs lead to a u-shaped relationship between output and debt. Foresighted owners of firms are led to take into account the strategic output effects of financial structure when considering an optimal financial structure for the firm. [ABSTRACT FROM AUTHOR]

Abstract. This paper analyses how inventory, output, and sales of a monopolist firm respond to both production cost and demand disturbances. If cost shocks dominate, output exceeds sales variability and sales and inventory holdings are-positively related, as empirical evidence indicates. Sales and inventory holdings are negatively related, as the theoretical literature generally suggests, only if demand shocks dominate. Greater inventory flexibility or persistance of shocks contributes to the smoothing of production to demand disturbances, but leads to the amplification of the production response to cost disturbances. [ABSTRACT FROM AUTHOR]

In several recent papers models have been developed to explain either why particular goods have been socialized or, more generally, the 'size of government.' In this paper we develop a version of these models to explain the decision in Canada to move to a system of socialized medical insurance to the mid-1960s. Income distribution data is then used to largely confirm that the model appears consistent as an explanation of the federal-provincial structure that has arisen and of the conflicts that have resulted. [ABSTRACT FROM AUTHOR]

Abstract. This paper concerns the effects of a tax levied on one factor of production in one sector of an economy when that factor or some other factor can freely migrate into or out of the economy in question. No simple treatment of the interaction between partial factor taxes and factor mobility is available, especially none that brings out the effects of factor taxes on the size of an economy and the derivative welfare implications of this scale effect. Nor is there accessible any decisive analysis of how the consumption; preferences of the mobile factor of production determine the impact of the factor tax; in fact, the issue has gone unrecognized in the literature. The purpose of this paper, therefore, is to provide a thorough treatment of such questions when a mobile or migrating factor is available in elastic supply. The theory articulated in this paper applies to any study of migration, growth, or decline of regions and of the effects of non-uniform taxation as between, communities, states, or provinces. [ABSTRACT FROM AUTHOR]

Abstract. The first section of the paper constitutes Harry Johnson's assessment of modern macroeconomic thought and, more important, Harry's perception of how the profession at large misinterpreted the theoretical thrust of the General Theory. and the implications that have followed in the wake of this misunderstanding. The final part of the paper focuses briefly on his contributions to understanding the functioning of macro institutions. Sandwiched between these two is a brief analysis of those of his writings which, while they deal with macro theory or policy, are as much a commentary on, or contribution to, the process by which knowledge is generated and accumulated in our discipline. [ABSTRACT FROM AUTHOR]

Abstract. Previously published studies attempting to test the economic model of property crime have generally found that the expected severity of punishment acts as a significant deterrent to prospective offenders. This study, employing 1971 data for Ontario census division areas, confirms the earlier studies with respect to most variables, but does not find sentence lengths to be significantly related to property crime rates. A different empirical representation of 'expected sentence length' is used in this paper, and its superiority over previously used measures is noted. Other hypotheses related to the deterrent effect of sentences are also empirically rejected. The paper concludes with possible explanations of why prospective offenders might respond to the certainty of punishment while apparently exhibiting indifference to its severity. [ABSTRACT FROM AUTHOR]

Protection and real profits. This paper introduces the element of profits into the Stolper and Samuelson analysis of protection. Profits may arise in the short run when some factors are not movable and even in long-run equilibrium in cases discussed in the paper. It is shown that, in the short run, protection is likely to increase profits in the protected industry, while real wages will not necessarily rise even if the protected industry is lab our-intensive. In the long run, no general proposition emerges. However conditions are presented in which protection will increase rents in the protected industry even in the long run. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Some believe that relatively lenient environmental standards give developing countries a comparative advantage in pollution–intensive goods. Thus, freer trade will harm their environment. This paper brings together the literature on openness and growth, and on the environmental Kuznet’s curve, to demonstrate that the opposite may be true. A simultaneous–equations system is derived which incorporates multiple effects of trade liberalization on the environment. Estimation using pooled provincial data on Chinese water pollution, suggests that freer trade aggravates environmental damage via the terms of trade, but mitigates it via income growth. Simulations suggest that the net effect in China was beneficial. JEL Classification: Fl3, Q28, 0l9 Est–ce que la libéralisation du commerce est nuisible pour l’environnement? Un nouveau test. Certains croient que des normes environnementales relativement peu contraignantes donnent un avantage comparatif aux pays en voie de développement dans la production de biens qui polluent intensivement. Donc, un commerce plus libre contribuera à nuire à l’environnement. Ce mémoire synthétise la littérature spécialisée sur l’ouverture des marchés et la croissance, ainsi que sur la courbe de Kuznets, pour montrer que l’inverse est vrai. On dérive un système d’équations simultanées qui incorpore les multiples effets de la libéralisation du commerce sur l’environnement. La calibration de ce système, en utilisant de manière intégrée les données provinciales de pollution de l’eau en Chine, suggère qu’un commerce plus libre aggrave l’état de l’environnement par le truchement du jeu des termes d’échange, mais que cet effet est mitigé par l’effet de croissance des revenus. Des simulations suggèrent que l’effet net en Chine est positif. [ABSTRACT FROM AUTHOR]

This paper is concerned with the determination of the optimal time horizon for the cake–eating problem under uncertainty. It is shown that if the uncertain exhaustible resource stock is a discrete random variable admitting at most a finite number of values, the optimal planning horizon is infinite (finite) according as the marginal utility of extraction–cum–consumption is infinite (a finite positive value) as the latter approaches zero, thereby extending the scope of the similar result under perfect certainty. Other results show that uncertainty will generally lengthen the planning horizon, implying a more conservative extraction policy under uncertainty, and that the extraction policy aimed at extracting an amount equal to the expected value of the uncertain resource stock takes longer than the expected value of the optimal planning horizon. JEL Classification: D81 and Q31 Combien de temps pour manger un gâteau de taille inconnue? L’horizon temporel optimal en régime d’incertitude. Ce mémoire s’attaque à la détermination de l’horizon temporel optimal dans le cas du problème du gâteau–à–manger en régime d’incertitude. On montre que si le stock incertain de la ressource épuisable est une variable aléatoire discontinue qui ne peut prendre qu’un nombre fini de valeurs, l’horizon temporel est infini (fini) selon que l’utilité marginale de l’extraction–cum–consommation est infinie (prend une value finie positive) quand celle–ci approche zéro, et ce faisant élargit la portée d’un résultat similaire obtenu en régime de certitude parfaite. D’autres résultats montrent que l’incertitude accroît généralement l’horizon temporel, ce qui suggère qu’une politique d’extraction plus conservatrice va prévaloir en régime d’incertitude, et que la politique d’extraction visant à extraire une quantité égale à la valeur anticipée d’un stock de ressource incertain prend plus de temps que la valeur anticipée de l’horizon temporel optimal. [ABSTRACT FROM AUTHOR]

In this paper we examine the determinants of self-employment success for microcredit borrowers. Theories of social capital and neighbourhood effects are integrated in an attempt to account for earnings differentials among a unique sample of microfinance borrowers. We posit that social capital — social relations that facilitate individual action — is essential for microentrepreneurial success. Based on a survey and data collected by the authors, it is demonstrated that social capital is a positive determinant of self-employment earnings. The role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance are also highlighted. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Technology change induces a structural change in both the values tableau and the prices tableau of an economy. The measurable change in the values tableau reveals the labour-saving effect and the measurable change in the pacts tableau reveals the cost-reducing effect. A measure-preserving transformation between the values tableau and the prices tableau provides the basis for an unambiguous definition of the aggregate capital-labour ratio notion as a function of the rate of profit. The paper shows that the direction of shifts in the capital-functions of an economy depend on the relative strength of the labour. saving effect versus the cost-reducing effect of technological change. If the cost-reducing effect of technological change is greater (less) than the labour saving effect, then the capital-labour ratio decreases (increases) and the system generates a rising (failing) tendency for the rate of profit. [ABSTRACT FROM AUTHOR]

The first purpose of this paper is to specify certain micro-economic determinants of 'external' economies and then analyse the consequences of these economies for production and welfare in a simple general-equilibrium model. The second purpose is to explore the circumstances under which the implied industry production functions are consistent with the ad hoc specifications used in trade theory and growth theory. The motivation for the latter exercise is that, despite progress in general-equilibrium analysis of internal economies, these industry production functions allow us to capture the very powerful analytical advantages of competitive general-equilibrium and duality theory. [ABSTRACT FROM AUTHOR]

This paper presents a case against the use of the sum of compensating variations as a cost-benefit test. We argue that: (1) the ethical judgments implied by the test are not defensible; (2) positive sums of compensating variations occur without potential Pareto Improvements, resulting in social preference reversals without simultaneous Scitovsky reversals; (3) when lump-sum transfers are feasible, a positive sum of compensating variations is necessary but not sufficient for a Potential Pareto Improvement; (4) in order to eliminate preference reversals and intransitivities, all households must have almost identical quasi-homothetic preferences -- a condition that is not satisfied in real economies. [ABSTRACT FROM AUTHOR]

This paper investigates conditions ensuring uniqueness of the pattern of endogenous strategic timing. A given normal form game, G, is embedded in an extensive form game, H, possessing two explicit periods. Choice of the earlier time is costlier than is choice of the later. With two players, the results here reinforce the validity of an approach due to D'Aspremont and Gérard-Varet. With three players, however, an example demonstrates that H can have another completely distinct equilibrium from that defined by these two authors. This new equilibrium involves two 'leaders' and a single 'follower.' [ABSTRACT FROM AUTHOR]

The feasibility of a monetarist policy rule has been the subject of a good deal of research all of which has implicitly assumed a unitary state. In this paper, the question is re-examined for the case of a federal state with deficit financing non-federal governments. The results of the paper indicate that the decision of non-federal governments to deficit finance significantly lessens the feasibility of the monetarist policy rule and that this conclusion is true regardless of the degree to which economic agents perceive government debt as comprising a part of net wealth. [ABSTRACT FROM AUTHOR]