Deflation has emerged as a new concern for Asian policy makers. The traditional view is that deflation can lead to a vicious cycle of falling demand and prices, and is thus a dangerous condition. However, another school of thought emphasizes the role of positive supply shocks and takes a more...

This paper argues that California s self-help county tax legislation, which funds additional highway spending, amounts to a natural experiment that can be used to construct a valid instrument to determine highway congestion s causal effect on the growth rates of GDP, employment, wages, and...