Showing papers in "The American Economic Review in 1963"

Uncertainty and the Welfare Economics of Medical Care

Abstract: Publisher Summary This chapter focuses on the way in which the operation of the medical-care industry and the efficacy with which it satisfies the needs of society differ from a norm. The term norm that the economist usually uses for the purposes of such comparisons is the operation of a competitive model, that is, the flows of services that would be offered and purchased and the prices that would be paid for them. The interest in the competitive model stems partly from its presumed descriptive power and partly from its implications for economic efficiency. If a competitive equilibrium exists at all and if all commodities relevant to costs or utilities are in fact priced in the market, then the equilibrium is necessarily optimal. There is no other allocation of resources to services that will make all participants in the market better off. The most obvious distinguishing characteristics of an individual's demand for medical services is that it is not steady in origin as, for example, for food or clothing but is irregular and unpredictable. Medical services, apart from preventive services, afford satisfaction only in the event of illness, a departure from the normal state of affairs.

Capital Theory and Investment Behavior

Abstract: Tax policy and investment behaviour: tax policy and the cost of capital services, estimates of the parameters of the investment function, the effects of tax policy on investment behaviour, Robert E. Hall and Dale W. Jorgenson application of the theory of optimum capital accumulation: theory of investment behaviour, econometrics of investment behaviour, estimates of the parameters of the investment functions, impact of tax policy on investment behaviour, Robert E. Hall and Dale W. Jorgenson technology and decision rules in the theory of investment behaviour: introduction, technology, objective function, optimal investment policy, decision rules, Dale W. Jorgenson the economic impact of investment incentives: introduction, postwar investment incentives in the United States, the economic analysis of investment incentives, current policy alternatives, direct impact, total impact, Dale W. Jorgenson the economic theory of replacement and depreciation: introduction, replacement, depreciation, form of the replacement distribution, Dale W. Jorgenson investment and production - a review: introduction, form of the production function - cross sections, form of the production function - time series, returns to scale, Dale W. Jorgenson the investment tax credit and counter-cyclical policy: summary, introduction, impact of the investment tax credit, alternative investment tax credits, appendices - the investment equation, optimization procedures, Roger H. Gordon and Dale W. Jorgenson inflation-proof depreciation of assets: the first-year system, administrative aspects, ... against two others, future economic impact, a better way, Alan J. Auerbach and Dale W. Jorgenson inflation and corporate capital recovery: introduction, theoretical frame-work, empirical implementation, capital recovery during the postwar period, proposed systems for capital recovery, Dale W. Jorgenson and Martin A. Sullivan the efficiency of capital allocation: introduction, technology and preferences, general equilibrium model, appendix - list of instrumental variables, Dale W. Jorgenson and Kun-Young Yun tax policy and capital allocation: introduction, tax policy, technology and preferences, general equilibrium model, tax reform, appendix - list of instrumental variables, Dale W. Jorgenson and Kun-Young Yun. (Part contents).

Equity Yields, Growth, and the Structure of Share Prices

Abstract: The first half of 1962 witnessed one of the most precipitous decliues in stock market prices in recent history. In terms of the volume of trading and the magnitude of the daily erosion of stock values, one must look back to the crashed of 1929 and 1937 to find parallels. Moreover, the decline was not confined to U. S. stock prices, for a world-wide revaluation of equity values was transmitted from New York. For most professional financial observers of these developments, two aspects of the decline served as the foci of their analysis. There was first the sharp drop in the level of share prices. Second, and perhaps more interesting, there was a marked change in the structure of share prices, i.e. the relationships among equities of different characteristics.