Characterization of cost-minimizing extraction programs from many deposits of an exhaustible resource to meet exogenously given demand is pursued. The role of set-up costs is focussed upon since such types of costs appear pervasive in some sectors of resource extraction. Weitzman (1975) analyzed...

This paper reconciles two pronounced trends in U.S. corporate governance: the increase in pay levels for top executives, and the increasing prevalence of appointing CEOs through external hiring rather than internal promotions. We propose that these trends reflect a shift in the relative...

During the debate that led up to the implementation of a bilateral free trade agreement between Canada and the U.S. on January 1, 1989, much was made of economists' claims that both nations could expect significant welfare improvements as a result of the removal of tariffs on traded goods. The...

This paper examines what has happened to immigrant earnings in Canada and test two alternative hypotheses of Chiswick and Borjas re changing immigrant earnings differentials. The paper use a 1973 survey containing detailed information on immigrant status, family background, and a direct measure...

This paper develops an open economy model with heterogeneous final goods producers who simultaneously choose whether to export their goods and whether to use imported intermediates. The model highlights mechanisms whereby import policies affect aggregate productivity, resource allocation, and...

Dynamic Euler equations restrict multivariate forecasts. Thus a range of links between macroeconomic variables can be studied by seeing whether they hold within the multivariate predictions of professional forecasters. We illustrate this novel way of testing theory by studying the links between...

A common goal in economics is to attribute changes in a variable (Y) between two points in time to various causes, when the only information available is an equation expressing Y as a matrix product of several variables, and the values of all variables at the two dates. Past methods of...

We consider a competitive extraction industry comprising many small firms, each with a slightly different quality of mineral holdings. With "rapidly" declining quality of holding per firm we observe rent declining over and interval. We do not work with the planning solution, commonly invoked in...

The focus of this paper is to motivate the application of transitional phase polynomials to a model of trade union growth in Canada. The advantage and limitations of this approach to capture the effects of a gradual structural change are compared with the more traditional dummy variable...

This paper examines the existence and properties of competitive equilibrium in economies with moral hazard. The nature of competitive equilibrium depends on whether insurers can observe an insured's total purchases of insurance. If insurers can observe this, an individual will purchase all his...