The random walk property of exchange rates is frequently regarded as carrying strong implications for the kinds of shocks that have driven exchange rates and the models appropriate for analyzing their behavior. This paper conducts stochastic simulations of Dornbusch’s (1976) sticky-price...

This paper decomposes longer-run movements in (major) dollar real exchange rates into components associated with changes in nominal exchange rates and price levels, and their comovements. Though the decompositions suggest some permanent movements, they imply that there are large transitory...

Previous teaching notes focused on the logic and mechanics of a quality-differentiated linear demand structure. This note takes up the question of potential bias in how markets respond to quality-related aspects of consumer choice. Earlier examples demonstrated instances where monopoly interests...

The paper provides a brief exposition on the logic underlying demand for quality-differentiated products. The argument builds and extends on basic constructs from undergraduate microeconomics followed by a brief critique of market responses to consumer preferences for quality variation....

The paper points up limitations in the standard undergraduate treatment of third-degree price discrimination by monopolists. While such treatments allude to qualitative distinctions between higher and lower priced alternatives, failure to capture those distinctions in underlying cost and demand...

Product quality is often a principal consideration in consumer decisions, yet there is no systematic treatment of such considerations in the undergraduate microeconomics core. Several recently published articles/ teaching notes address this matter by exploring the logic underlying quality...