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...

The paper begins with a discussion of how quality considerations manifest themselves in consumer choice. The concept of latent separability is used to develop a utility structure for quality-differentiated goods, one consistent with the principle of vertical product differentiation and one that...

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...

The paper explores Microsoft Excel as an alternative to graphic depiction in the analytics of quality-differentiated demand. Using the same linear demand and cost framework developed in earlier papers, Excel is shown to provide more precise point estimates than the more approximate comparisons...

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...