Sebastian Edwards and Alejandra Cox Edwards in their analysis of the Chilean economic liberalization argue that both capital inflows and outflows may have harmed the Chilean economy. They model the Chilean economy as using labor and fixed factors to produce traded and non-traded goods subject to...

Several authors have argued that if exporting firms anticipate a voluntary export restriction in a future period, and they expect VERs to be allocated in proportion to past exports, then they have an incentive to dump in the earlier period. In this paper we ask: How does a regime characterized...

This paper compares the risk and return of investing in equity mutual funds provided by the world's two largest mutual fund families: Fidelity and Vanguard over a long horizon. We believe this will help guide investors; this study is an example of the calculations that mutual fund companies...

In the spring of 2000, two books predicted a substantial fall in the S&P500 Index. Robert Shiller's <I>Irrational Exuberance</I> found that, historically, a high price earnings ratio, with real earnings averaged over 10 years, accurately predicts a low real rate of return from investing in the S&P500...</i>

This paper is a short, non-technical exposition of the political economy of protection. It asks how do political forces operate to generate protection, and what determines the magnitude and form that protection takes.

Is John Bogle right that Vanguardís index and managed funds are comparable and by his example that investors should hold both? Each Vanguard managed fund produces the same return as the tracking basket of Vanguardís indexed funds plus a differential, a. If a, is positive the managed fund is...

Robert Crandall in the March 19, 1999 Wall Street Journal wrote, "On Wednesday the House passed one of the most blatantly protectionist pieces of legislation since the 1930s. Reacting to the anguished cries from the steel industry and its rapidly declining unionized workforce, the House voted to...

This paper discovers that a campaign contribution to a member of the U.S. House of Representatives by the National Education Association (the major teacher's union) in the 2000 election cycle reduces the probability that a Representative will vote for a pro-choice amendment to the "No Child Left...

Recently, there has been a lot of discussion about whether and how much the U.S. stock market is overvalued, leading some economic gurus to suggest that foreign markets may be good investments. We ask whether this is the case and apply the Gordon formula to predict future real rates of return on...