Download e-book for iPad: American economic policy in the 1980s by Martin Feldstein

By Martin Feldstein

ISBN-10: 0226240932

ISBN-13: 9780226240930

ISBN-10: 0226241734

ISBN-13: 9780226241739

Destined to turn into the normal advisor to the commercial coverage of the USA through the Reagan period, this publication offers an authoritative list of the commercial reforms of the Nineteen Eighties. In his advent, Martin Feldstein offers compelling research of guidelines with which he was once heavily concerned as chairman of the Council of monetary Advisers throughout the Reagan management: financial and alternate fee coverage, tax coverage, and funds matters. different major economists and policymakers study quite a few family and foreign concerns, together with financial and alternate expense coverage, rules and antitrust, in addition to exchange, tax, and price range guidelines. The members to this quantity are Alberto Alesina, Phillip Areeda, Elizabeth Bailey, William F. Baxter, C. Fred Bergsten, James Burnley, Geoffrey Carliner, Christopher DeMuth, Douglas W. Elmendorf, Thomas O. Enders, Martin Feldstein, Jeffrey A. Frankel, Don Fullerton, William M. Isaac, Paul L Joskow, Paul Krugman, Robert E. Litan, Russell B. lengthy, Michael Mussa, William A. Niskanen, Roger G. Noll, Lionel H. Olmer, Rudolph Penner, William Poole, James M. Poterba, Harry M. Reasoner, William R. Rhodes, J. David Richardson, Charles Schultze, Paula Stern, David Stockman, William Taylor, James Tobin, W. Kip Viscusi, Paul A. Volcker, Charles E. Walker, David A. clever, and Richard G. Woodbury.

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A large proportion of letters (and mail items in general) are sent by businesses, and economic analysis shows that firms generally manage to shift (at least part of) their costs to customers. Put differently, cost increases in postal items will, in general, lead to price increases for final goods or services, using mail as an input. Under uniform pricing in the postal sector, banks, for instance, have no reason to charge rural customers more for the mailing of their bank statements than they charge their urban customers.

This argument is most obvious when the transaction falls directly on the operator. However, even when the transaction cost is on the demand side, it may be borne in part by the operator (through a ‘tax incidence’ effect). See Ambrosini et al. (2006) for a description of the obligations in the different countries according to three dimensions: scope of products, quality requirements and price regulation. This is true at least for mail services. Some financial services provided by post banks fall into the second category.

2 Profit-maximizing solution Writing profits as a function of ␮ and x yields ␲ ϭ N␮ p(x,␮)x Ϫ F(␮) Ϫ N␮cx , ˛ where p(x,␮) is the inverse demand function. A10), the comparison between the social optimum (x*,␮*) and the profit-maximizing solution (x␲,␮␲) is not entirely obvious. 7 We can gain some further insight by noting that for any level of x, the derivative of W with respect to ␮, at the profit-maximizing level of ␮ is simply ѨW ϭ ѨUS ϩ ѨUA ϩ Ѩ␲ ϭ ѨUS ϩ ѨUA , Ѩ␮ Ѩ␮ Ѩ␮ Ѩ␮ Ѩ␮ Ѩ␮ because Ѩ␲/Ѩ␮ vanishes by definition when profit is maximized.

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American economic policy in the 1980s by Martin Feldstein

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