1989 Quarter 1 | Vol. 25, No. 1
The determinants of direct air fares to Cleveland: how competitive?
by Paul W. Bauer and Thomas J. Zlatoper
Using a model developed to examine the determinants of air fares, the authors discuss the relationship between airline industry competitiveness and fare increases.
PDF file 466K
Bank capital requirements and the riskiness of banks: a review.
by William P. Osterberg and James B. Thomson
A study of the impact of capital requirements on bank portfolio decisions, showing that the variance of earnings and the incentive to increase leverage are reduced with risk- and leverage-related deposit rates, and that the impact of increased capital requirements on portfolio behavior is generally ambiguous.
PDF file 340K
Turnover, wages, and adverse selection.
by Charles T. Carlstrom
An argument that adverse selection in the labor market can explain why frequent job-changers have lower average wages and flatter age-earnings profiles than workers who change jobs infrequently. Adverse selection also provides a basis for examining the welfare implications of low-productivity workers in the labor market.
PDF file 907K
1989 Quarter 2 | Vol. 25, No. 2top
Removing the hazard of Fedwire daylight overdrafts.
by E.J. Stevens
An analysis of the potential effects of three recent proposals for pricing Federal Reserve daylight overdrafts, demonstrating that reducing the attendant moral hazard in daylight overdraft credit depends on how, rather than on how much, pricing affects overdrafts, and that this should be a criterion for choosing among the pricing proposals.
PDF file 317K
Capital subsidies and the infrastructure crisis: evidence from the local mass-transit industry.
by Brian A. Cromwell
The author examines and summarizes empirical evidence from two recent studies of the mass-transit industry that suggest federal capital subsidies have important effects on infrastructure decisions of state and local governments.
PDF file 417K
Employment distortions under sticky wages and monetary policies to minimize them.
by James G. Hoehn
A discussion of sticky nominal wages, showing that nominal income or price-level targeting policies result in smaller distortions than do policies that target output or money.
PDF file 485K
1989 Quarter 3 | Vol. 25, No. 3top
The stability of money demand, its interest sensitivity, and some implications for money as a policy guide.
by John B. Carlson
An examination of recent empirical research on money demand, which states that the interest elasticity of money demand is greater than most economists previously thought. The author discusses the policy implications of this research for both the M1 and M2 measures.
PDF file 608K
Accounting for the recent divergence in regional wage differentials.
by Randall W. Eberts
An explanation of the recent interruption in the long-term trend of regional wage convergence, showing that changes in the value that each census region places on worker characteristics account for much of the shift to wage divergence since 1980.
PDF file 794K
Why we don't know whether money causes output.
by Charles T. Carlstrom and Edward N. Gamber
An examination of the commonly accepted positive correlation between money and real output, including a review of several models of business cycles and an explanation of how money can be neutral and yet still appear to affect real output.
PDF file 778K
1989 Quarter 4 | Vol. 25, No. 4top
Deposit-institution failures: a review of empirical literature.
by Asli Demirgüç-Kunt
A review of the current literature on deposit-institution failures, emphasizing the various methods used to model the determinants of insolvent and failed institutions.
PDF file 1,715K
Settlement delays and stock prices.
by Ramon P. DeGennaro
An analysis of whether investors consider the length of the settlement delay between the time a stock trade is executed and the security is delivered. By modeling stock returns and conducting regression tests, the author concludes that stock prices do reflect the effects of the settlement delay.
PDF file 603K
The effect of bank structure and profitability on firm openings.
by Paul W. Bauer and Brian A. Cromwell
An examination of the effects of price and availability of credit from commercial lending organizations on the start-up rates of new businesses within specific markets, finding that profitable and competitive banking markets are associated with higher rates of firm births.
PDF file 428K
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