Economics and Finance Books and Journals Online

ECONOMICS and FINANCE BOOKS AND JOURNALS ONLINE

cambridge.org/core-economics

ECONOMICS and FINANCE BOOKS AND JOURNALS from Cambridge University Press

Cambridge’s Economics and Finance list is renowned for the breadth and quality of its publishing.

Our book list is home to the work of some of the most important economists in the history of the discipline, most notably John Maynard Keynes, as well as the work of almost 30 Sveriges Riksbank Nobel Prize laureates, including Kenneth Arrow, Herbert Simon, Robert Solow and Joseph Stiglitz.

This is complemented by a cluster of key journals such as Econometric Theory, Journal of Economic History and Journal of Financial and Quantitative Analysis.

For further details visit: cambridge.org/core-economics

JOURNALS VOL. 52, NO. 5 OCTOBER 2017

JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS

Banks’ Internal Capital Markets and Deposit Rates

Itzhak Ben-David, Ajay Palvia, and Chester Spatt Did Saving Wall Street Really Save Main Street? The Real Effects of TARP on Local Economic Conditions

Allen N. Berger and Raluca A. Roman

What Affects Innovation More: Policy or Policy Uncertainty?

Editors: Hendrik Bessembinder, Arizona State University, USA; Jennifer Conrad, University of North Carolina, USA; Jarrad Harford, University of Washington, USA and Paul Malatesta, University of Washington, USA

Utpal Bhattacharya, Po-Hsuan Hsu, Xuan Tian, and Yan Xu Why Do Fund Managers Identify and Share Profitable Ideas?

Steven S. Crawford, Wesley R. Gray, and Andrew E. Kern Economic Risk Premia in the Fixed-Income Markets: The Intraday Evidence

Pierluigi Balduzzi and Fabio Moneta

Cash Reserves as a Hedge against Supply-Chain Risk

Manoj Kulchania and Shawn Thomas

To Group or Not to Group? Evidence from Mutual Fund Databases

Saurin Patel and Sergei Sarkissian

Corporate Environmental Policy and Shareholder Value: Following the Smart Money

Chitru S. Fernando, Mark P. Sharfman, and Vahap B. Uysal

PUBLISHED ON BEHALF OF THE UNIVERSITY OF WASHINGTON MICHAEL G. FOSTER SCHOOL OF BUSINESS

Does Information Asymmetry Affect Corporate Tax Aggressiveness?

Tao Chen and Chen Lin

Equilibrium-Informed Trading with Relative Performance Measurement

Zhigang Qiu

Leverage Effect, Volatility Feedback, and Self-Exciting Market Disruptions

Peter Carr and Liuren Wu

Hedge Fund Return Dependence: Model Misspecification or Liquidity Spirals?

Richard Sias, Harry J. Turtle, and Blerina Zykaj CoMargin

Jorge A. Cruz Lopez, Jeffrey H. Harris, Christophe Hurlin, and Christophe Pérignon Entrepreneurial Litigation and Venture Capital Finance

Douglas Cumming, Bruce Haslem, and April Knill VOL. 52, NO. 5, OCTOBER 2017

The Journal of Financial and Quantitative Analysis (JFQA) publishes theoretical and empirical research in financial economics. Topics include corporate finance, investments, capital and security markets, and quantitative methods of particular relevance to financial researchers. With a circulation of 3000 libraries, firms, and individuals in 70 nations, the JFQA serves an international community of sophisticated finance scholars—academics and practitioners alike.

A Multivariate Model of Strategic Asset Allocation with Longevity Risk

Emilio Bisetti, Carlo A. Favero, Giacomo Nocera, and Claudio Tebaldi Long-Term versus Short-Term Contingencies in Asset Allocation

Mahmoud Botshekan and André Lucas

Time-Disaggregated Dividend–Price Ratio and Dividend Growth Predictability in Large Equity Markets

Panagiotis Asimakopoulos, Stylianos Asimakopoulos, Nikolaos Kourogenis, and Emmanuel Tsiritakis PUBLISHED BY CAMBRIDGE UNIVERSITY PRESS FOR THE UNIVERSITY OF WASHINGTON MICHAEL G. FOSTER SCHOOL OF BUSINESS IN COOPERATION WITH THE ARIZONA STATE UNIVERSITY W. P. CAREY SCHOOL OF BUSINESS AND THE UNIVERSITY OF NORTH CAROLINA KENAN-FLAGLER BUSINESS SCHOOL

 cambridge.org/JFQA ISSN: 2398063X

BEHAVIOURAL PUBLIC POLICY NEW

Editors: George A. Akerlof, Georgetown University, USA; Adam Oliver London School of Economics and Political Science, UK and Cass R. Sunstein Harvard Law School, USA

Behavioural Public Policy (BPP) is an interdisciplinary and international peer-reviewed journal devoted to behavioural research and its relevance to public policy. The study of human behaviour is important within many disciplinary specialties and in recent years the findings from this field have begun to be applied to policy concerns in a substantive and sustained way. BPP welcomes articles from economists, psychologists, philosophers, anthropologists, sociologists, political scientists, primatologists, evolutionary biologists, legal scholars and others.

 cambridge.org/BPP

V O LU M E 1 • I S S U E 2 • N O V E M B E R 2017

JOURNALS THE JOURNAL OF ECONOMIC HISTORY Editors: Professor Ann M. Carlos, University of Colorado and Professor William J. Collins, Vanderbilt University PUBLISHED ON BEHALF OF THE ECONOMIC HISTORY ASSOCIATION

The Journal of Economic History (JEH) is devoted to the multidisciplinary study of history and economics, and is of interest not only to economic historians but to social and demographic historians, as well as economists in general. The journal has broad coverage, in terms of both methodology and geographic scope. Topics covered include money and banking, trade, manufacturing, technology, transportation, industrial organisation, labour, agriculture, servitude, demography, education, economic growth, and the role of government and regulation.

▸▸ cambridge.org/JEH

ENTERPRISE AND SOCIETY

T H E I N T E R N AT I O N A L JOURNAL OF BUSINESS HISTORY

Editor: Andrew Popp, University of Liverpool, UK PUBLISHED ON BEHALF OF THE BUSINESS HISTORY CONFERENCE

Enterprise & Society (ESO) offers a forum for research on the historical relations between businesses and their larger political, cultural, institutional, social, and economic contexts. The journal aims to be truly international in scope. Studies focused on individual firms and industries and grounded in a broad historical framework are welcome, as are innovative applications of economic or management theories to business and its context.

▸▸ cambridge.org/ESO

SEPTEMBER 2017 • VOLUME 18 • NUMBER 3 ISSN 1467-2227 • ONLINE ISSN 1467-2235 P U B L I S H E D I N A S S O C I AT I O N W I T H THE BUSINESS HISTORY CONFERENCE

JOURNALS Vol. 33, No. 6

December 2017

ECONOMETRIC THEORY

ECONOMETRIC THEORY Editor: Peter C. B. Phillips Cowles Foundation for Research in Economics, Yale University, USA

Since its inception, Econometric Theory (ECT) has aimed to endow econometrics with an innovative journal dedicated to advance theoretical research in econometrics. It provides a centralized professional outlet for original theoretical contributions in all of the major areas of econometrics, and all fields of research in econometric theory fall within the scope of ECT. In addition, ECT fosters the multidisciplinary features of econometrics that extend beyond economics.

Editor: Peter C.B. Phillips Yale University

▸▸ cambridge.org/ECT

MACROECONOMIC DYNAMICS MACROECONOMIC DYNAMICS Volume 21, Number 7, October 2017 Contents ARTICLES

1519

The Effects of Negative Population Growth: An Analysis Using a Semiendogenous R&D Growth Model Hiroaki Sasaki and Keisuke Hoshida

1545

Minimum Wage and Severance Payments in a Frictional Labor Market: Theory and Estimation Carolina Silva

1561

Secular Fertility Declines, Baby Booms, and Economic Growth: International Evidence Robert Tamura and Curtis Simon

1601

Aging and Fiscal Sustainability in a Small Euro Area Economy Gabriela Castro, José R. Maria, Ricardo Mourinho Félix, and Cláudia Rodrigues Braz

1673

Social Choice and Time Consistency with Low-Probability Events Claudio A. Bonilla

1706

Deep-Rooted Determinants of the Fertility Transition Across Countries Alberto Basso and David Cuberes

1712

Contractionary Technology Shocks Francesco Giuli and Massimiliano Tancioni

1752

MD INTERVIEW

An Interview with Neil Wallace David Altig and Ed Nosal

VOLUME 21, NUMBER 7, OCTOBER 2017

MACROECONOMIC DYNAMICS

Pages 1519–1835

An Evaluation of Constitutional Constraints on Capital Taxation Begoña Domínguez and Zhigang Feng

Vol. 21, No. 7, October 2017

Macroeconomic Dynamics (MDY) publishes theoretical, empirical or quantitative research of the highest standard. Papers are welcomed from all areas of macroeconomics and from all parts of the world. Major advances in macroeconomics without immediate policy applications will also be accepted, if they show potential for application in the future. Occasional book reviews, announcements, conference proceedings, special issues, interviews, dialogues, and surveys are also published.

Macroeconomic Dynamics

Editors: William A. Barnett, University of Kansas and Center for Financial Stability, NY

1790

NOTES

▸▸ cambridge.org/MDY

On the Numerical Accuracy of First-Order Approximate Solutions to DSGE Models Christopher Heiberger, Torben Klarl, and Alfred Maussner

1811

A Note on the Characterization of the Neoclassical Production Function Andreas Irmen and Alfred Maussner

1827

EDITOR: WILLIAM A. BARNETT

JOURNALS Editors: Michael R. Reed, University of Kentucky, USA and Sayed Saghaian University of Kentucky, USA PUBLISHED ON BEHALF OF THE SOUTHERN AGRICULTURAL ECONOMICS ASSOCIATION

Journal of AGRICULTURAL and APPLIED ECONOMICS

JOURNAL OF AGRICULTURAL AND APPLIED ECONOMICS

As of 2015 (Vol 47), articles are published on an open access basis.

VOLUME 49, NO. 4, NOVEMBER 2017

The Journal of Agricultural and Applied Economics (JAAE) is a forum for creative and scholarly work in agricultural economics and related areas. Contributions on methodology and applications in business, extension, research, and teaching phases of agricultural and applied economics are equally encouraged.

Cambridge Core For further information about this journal please go to the journal website at: cambridge.org/jaae

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AGRICULTURAL AND RESOURCE ECONOMICS REVIEW PUBLISHED ON BEHALF OF THE NORTHEASTERN AGRICULTURAL AND RESOURCE ECONOMICS ASSOCIATION (NAREA)

The purpose of the Agricultural and Resource Economics Review (ARER) is to foster and disseminate professional thought and literature relating to the economics of agriculture, natural resources, and community development. This journal is published three times a year: April, August, and December. In addition to normal refereed articles, it also publishes invited papers presented at the annual meetings of the NAREA.

Agricultural and Resource Economics Review

The ofϔicial publication of the Northeastern Agricultural and Resource Economics Association (NAREA)

As of 2016 (Vol 45), articles are published on an open access basis.

 cambridge.org/ARER

Agricultural and Resource Economics Review Volume 46, Issue 2, August 2017

Editor: David Abler, Pennsylvania State University, USA

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JOURNALS VOLUME 83 ISSUE 3 SEPTEMBER 2017 ISSN: 2054-0892

JOURNAL OF DEMOGRAPHIC ECONOMICS

JOURNAL OF DEMOGRAPHIC ECONOMICS Editor: Professor David de la Croix, Université Catholique de Louvain, Belgium

Research Paper Luca Marchiori, Olivier Pierrard and Henri R. Sneessens The EU–US Unemployment Puzzle Revisited: Institutions, Demography, and Capital Flow

PUBLISHED ON BEHALF OF THE DEPARTMENT OF ECONOMICS, UNIVERSITÉ DE LOUVAIN-LA-NEUVE Shorter Paper

Marion Mercier and Philip Verwimp Are We Counting all the Poor?

Data Section

Demographic variables such as fertility, mortality, migration and family structures notably respond to economic incentives and in turn affect the economic development of societies. Journal of Demographic Economics (JODE) welcomes both empirical and theoretical papers on issues relevant to Demographic Economics with a preference for combining abstract economic or demographic models together with data to highlight major mechanisms.

Claude Diebolt, Gabriele Franzmann, Ralph Hippe and Jürgen Sensch The Power of Big Data: Historical Time Series on German Education Corrigendum

Carol H. Shiue A Culture of Kinship: Chinese Genealogies as a Source for Research in Demographic Economics–Corrigendum

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JOURNAL OF INSTITUTIONAL ECONOMICS

ISSN 1744-1374

Editors: Geoffrey M. Hodgson, University of Hertfordshire, UK; Richard N. Langlois, University ofInstitutional Economics Connecticut, USA; Jason Potts, RMIT University, Australia and Esther-Mirjam, Sent University of Nijmegen, The Netherlands vol 13 • no 3 • SEPTEMBER 2017

Contents

499 Exploring the (behavioural) political economy of nudging Christian Schubert

PUBLISHED ON BEHALF OF THE JOIE FOUNDATION

523 Network assemblage of regime stability and resilience: comparing Europe and China Hilton L. Root 549 The rise and decline of nations: the dynamic properties of institutional reform Russell S . Sobel 575 Individualistic values, institutional trust, and interventionist attitudes Hans Pitlik and Martin Rode 599 Standard-setting activities and new institutional economics Armelle Mazé

623 Mill ownership and farmer’s cooperative behavior: the case of Costa Rica coffee farmers Astrid Hopfensitz and Josepa Miquel-Florensa

649 Skin in the game: comparing the private and public regulation of isotretinoin Raymond J . March 673 How does relationship-based governance accommodate new entrants? Evidence from the cycle-rickshaw rental market Tarun Jain 699 The formation of terrorist groups: an analysis of Irish republican organizations Antony W. Dnes and Graham Brownlow REVIEW ARTICLE

725 Price theory as prophylactic against popular fallacies Peter J . Boettke and Rosolino A. Candela

Journal of Institutional Economics A multi-disciplinary forum for research on economic institutions

vol 13 • no 3 • SEPTEMBER 2017

vol 13 • no 3 • SEPTEMBER 2017

The Journal of Institutional Economics (JOIE) is an interdisciplinary journal that is of interest to all academics working in the social sciences, particularly in economics and business studies.

Contributions from politics, geography, anthropology, sociology and philosophy are also welcomed.

JOIE aims to provide all authors with an expert verdict on their articles within fifty days of submission.

Journal of Institutional Economics

Journal of

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Cambridge Core For further information about this journal please go to the journal website at:

cambridge.org/joi

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JOURNALS

1355770X_22-5_1355770X_22-5 04/09/17 6:57 AM Page 1

ISSN: 1355-770X

CONTENTS

ENVIRONMENT AND DEVELOPMENT ECONOMICS

491

VIS TARAZ Adaptation to climate change: historical evidence from the Indian monsoon

517

MOHAMMAD IQBAL IRFANY and STEPHAN KLASEN Affluence and emission tradeoffs: evidence from Indonesian households’ carbon footprint

546

AGHA ALI AKRAM and ROBERT MENDELSOHN Agricultural water allocation efficiency in a developing country canal irrigation system

571

BISWAJIT RAY, PROMITA MUKHERJEE and RABINDRA N. BHATTACHARYA Attitudes and cooperation: does gender matter in community-based forest management?

594

GREGMAR I. GALINATO and ASIF ISLAM The challenge of addressing consumption pollutants with fiscal policy

624

PUBLISHED ON BEHALF OF THE BEIJER INSTITUTE OF ECOLOGICAL ECONOMICS, ROYAL SWEDISH ACADEMY OF SCIENCES

Volume 22 Part 5 October 2017

Editor: Eswaran Somanathan, Indian Statistical Institut, New Delhi, India

VOLUME 22 PART 5 OCTOBER 2017

JACOPO BONAN, STEFANO PAREGLIO and MASSIMO TAVONI Access to modern energy: a review of barriers, drivers and impacts

Environment and Development Economics

ENVIRONMENT AND DEVELOPMENT ECONOMICS Published in association with the Beijer Institute

Environment and Development Economics (EDE) is positioned at the intersection of environmental, resource and development economics. The Journal is divided into two main sections, Theory and Applications, which includes regular academic papers and Policy Options, which includes papers that may be of interest to the wider policy community. EDE also publishes occasional Policy Fora (discussions based on a focal paper).

Cambridge Core For further information about this journal please go to the journal website at:

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cambridge.org/ede

Environment and Development Economics Volume 22 Part 5 October 2017

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Journal of Benefit-Cost Analysis V O LU M E 8 | I S S U E 2 | S U M M E R 2017

Editors: Glenn C. Blomquist, University of Kentucky, USA and William H. Hoyt, University of Kentucky, USA PUBLISHED ON BEHALF OF THE SOCIETY OF BENEFIT-COST ANALYSIS

Article China’s Cap on Coal and the Efficiency of Local Interventions: A Benefit-Cost Analysis of Phasing out Coal in Power Plants and in Households in Beijing Jin, Yana / Andersson, Henrik / Zhang, Shiqiu Implementation Skills and Perspectives

Consumer’s Guide to Regulatory Impact Analysis: Ten Tips for Being an Informed Policymaker Dudley, Susan / Belzer, Richard / Blomquist, Glenn / Brennan, Timothy / Carrigan, Christopher / Cordes, Joseph / Cox, Louis A. / Fraas, Arthur / Graham, John / Gray, George / Hammitt, James / Krutilla, Kerry / Linquiti, Peter / Lutter, Randall / Mannix, Brian / Shapiro, Stuart / Smith, Anne / Viscusi, W. Kip / Zerbe, Richard Symposium on “Valuing Mortality Risk Reductions in Low- and MiddleIncome Countries” Estimating the Values of Mortality Risk Reductions in Low- and Middle-Income Countries Robinson, Lisa A.

Extrapolating the Value Per Statistical Life Between Populations: Theoretical Implications Hammitt, James K. Income Elasticities and Global Values of a Statistical Life Viscusi, W. Kip / Masterman, Clayton J. Building a Set of Internationally Comparable Value of Statistical Life Studies: Estimates of Chinese Willingness to Pay to Reduce Mortality Risk Hoffmann, Sandra / Krupnick, Alan / Qin, Ping

 cambridge.org/JBCA

VOLUM E 8 I SS UE 2 (S UM ME R 2017) ISSN 2194-5888

Journal of

Benefit-Cost Analysis Analysis

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VOLUM E 8 | I SS UE 2 | S UM ME R 2017

The Journal of Benefit- Cost Analysis (JBCA) is the only journal devoted exclusively to benefit-cost analysis, the leading evidence-based analytical method for determining if the consequences of specific public actions make society better off overall. JBCA publishes theory, empirical analyses, case studies, and techniques. The interdisciplinary nature, with contributors from a wide range of disciplines and areas of public policy, is unique.

Journal of Benefit-Cost Analysis

JOURNAL OF BENEFIT-COST ANALYSIS

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14747456_16-4_14747456_16-4 05/10/17 3:07 PM Page 1

VOLUME 16 | NUMBER 4 | OCTOBER 2017

WORLD TRADE REVIEW Symposium on State-Owned Enterprises in China Guest Editors: Petros C. Mavroidis and Merit E. Janow

Editor: Professor L. Alan Winters, University of Sussex,

WTO and SOEs: Article XVII and Related Provisions of the GATT 1994 ANDREA MASTROMATTEO

601

NMEs and the Double Remedy Problem THOMAS J. PRUSA

619

The Treatment of Chinese SOEs in China’s WTO Protocol of Accession PHILIP I. LEVY

635

TPP, American National Security and Chinese SOEs RAJ BHALA

655

China’s Export Restrictions and the Limits of WTO Law MARK WU

673

Competition Policy and State-Owned Enterprises in China WILLIAM E. KOVACIC

693

Sunshine over Shanghai: Can the WTO Illuminate the Murky World of Chinese SOEs? ROBERT WOLFE

713

Case Summaries Eli Lilly and Company v. The Government of Canada, Case No. UNCT/14/2

733

Ansung Housing Co., Ltd. v. People’s Republic of China

737

The World Trade Review (WTR) was established at the initiative of the Secretariat of the World Trade Organization (WTO) in close cooperation with Cambridge University Press. It is an independent journal - the Editor and all but one member of the Editorial Board are drawn from university faculties - that includes articles written from economic, legal, political and interdisciplinary perspectives on issues of relevance to the multilateral trading system.

Canada – Anti-Dumping Measures on Imports of Certain Carbon Steel Welded Pipe from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Canada–Welded Pipe), DS483

741

European Union – Measures Affecting Tariff Concessions on Certain Poultry Meat Products (EU–Poultry Meat (China)), DS492

746

China – Anti-dumping Measures on Imports of Cellulose Pulp from Canada (China–Cellulose Pulp), DS483

750

United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China (US–Anti-Dumping Methodologies (China)), DS471

WORLD TRADE REVIEW Economics Law International Institutions

VOLUME 16 | NUMBER 4 | OCTOBER 2017

PUBLISHED ON BEHALF OF THE WORLD TRADE ORGANISATION

571 583

WORLD TRADE REVIEW

WORLD TRADE REVIEW

VOLUME 16 | NUMBER 4 | OCTOBER 2017

Free Markets, State Involvement, and the WTO: Chinese State-Owned Enterprises in the Ring PETROS C. MAVROIDIS AND MERIT E. JANOW A Network Anatomy of Chinese State-Owned Enterprises LI-WEN LIN

753

Russian Federation – Measures on the Importation of Live Pigs, Pork and Other Pig Products from the European Union (Russia–Pigs (EU)), DS475

757

Book Reviews

771

Reviewers: World Trade Review 2017

775

Cambridge Core For further information about this journal please go to the journal website at:

cambridge.org/wtr

 cambridge.org/WTR

JOURNAL OF PENSION ECONOMICS & FINANCE

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VOLUME

16

ISSUE

4

OCTOBER

2017

ARTICLES

4

OCTOBER

2017

Journal of Pension Economics & Finance

ISSUE

4 | OCTOBER

586 BOOK REVIEWS

ISSUE

16 |

419 How much do means-tested benefits reduce the demand for annuities?

Monika Bütler, Kim Peijnenburg, Stefan Staubli 450 Personal pensions with risk sharing Lans Bovenberg, Theo Nijman 467 Defined benefit pension schemes: a welfare analysis of risk sharing and labour market distortions Nick Draper, Ed Westerhout, André Nibbelink 485 Early claiming of higher-earning husbands, the survivor benefit, and the incidence of poverty among recent widows Jeffrey Diebold, Jeremy Moulton, John Scott 509 In or out? Poverty dynamics among older individuals in the UK Ricky Kanabar 554 Stimulating annuity markets Ben J. Heijdra, Jochen O. Mierau, Timo Trimborn 584 Stimulating annuity markets – ERRATUM Ben J. Heijdra, Jochen O. Mierau, Timo Trimborn 585 Supplemental plan offerings and retirement saving choices: an analysis of North Carolina school districts – CORRIGENDUM Robert L. Clark, Emma Hanson, Melinda Sandler Morrill, Aditi Pathak

16

VOLUME

2017

The Journal of Pension Economics and Finance (JPEF) is the only academic journal focusing on the economics and finance of pensions and retirement income. The ageing population, together with the shrinking workforce, heralds a growing pensions crisis, which has become a key public policy issue in developed countries and elsewhere. JPEF publishes original research papers, covering a variety of topics, including pension fund management, the regulation of pensions, and pensions and labour markets.

VOLUME

Journal of Pension Economics & Finance

Editors: Monika Bütler, University of St. Gallen, Switzerland; Olivia S. Mitchell The Wharton School Journal of the of Pension Economics & Finance University of Pennsylvania, USA and J. Mike Orszag Willis Towers Watson, UK

Published in association with the International Organisation of Pension Supervisors (IOPS) and the Organisation for Economic Co-operation and Development (OECD)

 cambridge.org/JPEF

Cambridge Core For further information about this journal please go to the journal website at:

cambridge.org/jpef

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Published in association with the International Organisation of Pension Supervisors (IOPS) and the Organisation for Economic Co-operation and Development (OECD)

JOURNALS VOLUME 39 • ISSUE 3 • SEPTEMBER 2017 • ISSN 1053-8372

JOURNAL OF THE HISTORY OF ECONOMIC THOUGHT Editor: Stephen Meardon, Bowdoin College and Texas A&M International University, USA

JOURNAL OF THE

HISTORY OF ECONOMIC THOUGHT

PUBLISHED ON BEHALF OF THE HISTORY OF ECONOMICS SOCIETY

The Journal of the History of Economic Thought (JHET) is a quarterly, refereed journal that welcomes papers reflecting the full spectrum of scholarly analysis within the history of economic thought and history of economic methodology. The mission of the journal is to further the objectives of the History of Economics Society. These are to promote interest in and inquiry into the history of economics and related parts of intellectual history, facilitate communication and discourse among scholars working in the field of the history of economics, and disseminate knowledge about the history of economics.

PUBLISHED FOR THE HISTORY OF ECONOMICS SOCIETY

 cambridge.org/JHET

HEALTH ECONOMICS, POLICY AND LAW

volume 12 . part 4 . october 2017

SPECIAL ISSUE: Healthcare and Health Innovation in Europe: Regulating for public benefit or for commercial profit?

PUBLISHED ON BEHALF OF THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE

GUEST EDITOR: Amanda Warren-Jones

Health Economics, Policy and Law (HEPL) serves as a forum for scholarship on health and social care policy issues from these perspectives, and is of use to academics, policy makers and practitioners. HEPL is international in scope and publishes both theoretical and applied work.

Considerable emphasis is placed on rigorous conceptual development and analysis, and on the presentation of empirical evidence that is relevant to the policy process.

volume 12 . part 4 . october 2017

Editor: Dr Adam Oliver, London School of Economics and Political Science

ISSN 1744-1331

HEALTH ECONOMICS, POLICY and LAW

CONTENTS

Editorial

Health care and health innovation in Europe: regulating for public benefit or for commercial profit?

Amanda Warren-Jones

411

Health equality, social justice and the poverty of autonomy Christopher Newdick

435

Innovation, informed consent, health research and the Supreme Court: Montgomery v Lanarkshire – a brave new world?

Jean V. McHale

453

Healthcare innovation and patent law’s ‘pharmaceutical privilege’: is there a pharmaceutical privilege? And if so, should we remove it?

Graham Dutfield

471

Regulatory theory: commercially sustainable markets rely upon satisfying the public interest in obtaining credible goods Amanda Warren-Jones

495

Legal and organisational innovation in the Italian pharmacy system: commercial vs public interest Alceste Santuari

Articles

 cambridge.org/HEPL Cambridge Core For further information about this journal please go to the journal website at:

Cambridge.org/HEPL

HEALTH ECONOMICS, POLICY AND LAW

403

volume 12 . part 4 . october 2017

HEALTH ECONOMICS, POLICY and LAW

JOURNALS Vol. 12, No. 1, 2017

ASTIN Bulletin

 cambridge.org/ASB

681 715

737

ASTIN Bu l let i n

787

The Journal of the International Actuarial Association

803

Editor In Chief

Wine Economics American Association of Wine Economists Editors

Editorial

Introduction to the Issue Karl Storchmann

Kym Anderson Orley Ashenfelter Articles The Hedonic Approach to Vineyard Site Selection: Adaptation to Climate Change Victor Ginsburgh and Grape Growing in Emerging Markets Orley Ashenfelter Robert Stavins of Wineries’ Decisions to Seek VQA Certification in the Canadian Karl Storchmann Determinants Wine Industry Albert I. Ugochukwu, Jill E. Hobbs and Joel F. Bruneau

Vo l . 47 No . 3

JOURNAL OF WINE ECONOMICS

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What Determines Exports of Luxury Products? The Case of Cognac Antoine Bouët, Charlotte Emlinger and Viola Lamani

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Dimensions of Expertise in Wine Evaluation Robert H. Ashton

M aria d e L o u rd e s C e n te n o

Editors

J an D h ae n e

D an ie l B au e r

M ary H ard y

E n ric o B iff is

C h ristian H ip p

P ie rre D e v o ld e r

J e an L e m aire

D av id D ic k so n

G ary P ark e r

M o n tse rrat G u illé n

E d u ard P o n d s

M ario W ü th ric h

R o b e rt R e itan o

Do Good Things Come in Small Packages? Bottle Size Effects on Willingness to Pay for Pomegranate Wine and Grape Wine Andreas C. Drichoutis, Stathis Klonaris and Georgia S. Papoutsi

Book Reviews

Uwe Schmock

943

R e n é S c h n ie p e r G ary Ve n te r

PUBLISHED ON BEHALF OF THE AMERICAN ASSOCIATION OF WINE ECONOMISTS (AAWE) Cambridge Core For further information about this journal please go to the journal web site at:

Vol . 47 No. 3

cambridge.org/asb

Bianca Bosker: Cork Dork: A Wine-Fueled Adventure among the Obsessive Sommeliers, Big Bottle Hunters, and Rogue Scientists Who Taught Me to Live for Taste Reviewed by Richard E. Quandt

Vol. 12, No. 1, 2017

Articles A Comparative Study of Two-Population Models for the Assessment of Basis Risk in Longevity Hedges Andrés M. Villegas, Steven Haberman, Vladimir K. Kaishev and Pietro Millossovich A Bayesian Joint Model for Population and Portfolio-Specific Mortality Frank Van Berkum, Katrien Antonio and Michel Vellekoop Testing for a Unit Root in Lee–Carter Mortality Model Xuan Leng and Liang Peng Probability of Sufficiency of Solvency II Reserve Risk Margins: Practical Approximations Eric Dal Moro and Yuriy Krvavych An Economic Premium Principle Under the Dual Theory of the Smooth Ambiguity Model Yoichiro Fujii, Hideki Iwaki and Yusuke Osaki Lifelong Health Insurance Covers with Surrender Values: Updating Mechanisms in the Presence of Medical Inflation Jan Dhaene, Els Godecharle, Katrien Antonio, Michel Denuit and Hamza Hanbali Broken-Heart, Common Life, Heterogeneity: Analyzing the Spousal Mortality Dependence Yang Lu Ratemaking of Dependent Risks J. M. Andrade E Silva and M. De Lourdes Centeno The Full Tails Gamma Distribution Applied to Model Extreme Values Joan Del Castillo, Jalila Daoudi and Isabel Serra Beyond the Pearson Correlation: Heavy-Tailed Risks, Weighted Gini Correlations, and a Gini-Type Weighted Insurance Pricing Model Edward Furman and Ri cardas ˇ Zitikis Bayesian Analysis of Big Data in Insurance Predictive Modeling Using Distributed Computing Yanwei Zhang

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Journal of Wine Economics

Issue 3

CONTENTS

ASTIN Bulletin

ASTIN BULLETIN

Volume 47

Cambridge Core For further information about this journal please go to the website at:

Kelli A. White: Napa Valley Then and Now Reviewed by Orley Ashenfelter Gisela H. Kreglinger: The Spirituality of Wine Reviewed by Kenneth G. Elzinga

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PUBLISHED ON BEHALF OF THE INSTITUTE AND FACULTY OF ACTUARIES Comparing the riskiness of dependent portfolios via nested L-statistics Ranadeera G.M. Samanthi, Wei Wei and Vytaras Brazauskas

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Explicitly incorporating virtues into actuarial education Anthony Asher

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An analysis of operational risk events in US and European Banks 2008–2014 Yifei Li, Neil Allan and John Evans

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BRITISH ACTUARIAL JOURNAL

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Application of bivariate negative binomial regression model in analysing insurance count data Feng Liu and David Pitt

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Papers from actuarial journals worldwide

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Book review

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Contents

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What Solvency II firms can learn from the Swiss Solvency experience M. Eves and P. Keller

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Solvency II Technical Provisions – what actuaries will be doing differently S. Dreksler, J. Kirk and J. Piper

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Transforming consumer information A. Ritchie, J. Corrigan, S. Graham, A. Hague, A. Higham, J. Holt, P. Mowbray and H. Robinson

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Is there a place in the UK Defined Contribution pensions market for a International research, bridging the gap between theory and practice

guaranteed savings product?

Report of the Investment Products for Retirement Savings Working Party S. Eason, P. Barker, G. Foroughi, J. Harsant, D. Hunter, S. Jarvis, G. Jones, V. Knava, P. Murphy, K. Murray, J. Muthulingam, N. Odozi, T. Page, K. Washoma and A. Webb Abstract of the London discussion

624 657

Pension Plan Solvency and Extreme Market Movements: A Regime Switching Approach – Funding Report for the Actuarial Profession N. Abourashchi, I. Clacher, D. Hillier, M. Freeman, M. Kemp and Q. Zhang Abstract of the Leeds discussion

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A unified approach to mortality modelling using state-space framework: characterisation, identification, estimation and forecasting Man Chung Fung, Gareth W. Peters and Pavel V. Shevchenko

This part contains sessional research meeting papers and discussions covering the period March 2012 – July 2012

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Demographic risk in deep-deferred annuity valuation Min Ji and Rui Zhou

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Telematic driving profile classification in car insurance pricing Wiltrud Weidner, Fabian W.G. Transchel and Robert Weidner

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VOLUME 11 – PART 2

ANNALS OF ACTUARIAL SCIENCE

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Summary of Professor Sir Brian Hoskins’ lecture ‘The Challenge of Climate Change’

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HIGHLIGHT EBOOK TITLES THE HIDDEN RULES OF RACE Barriers to an Inclusive Economy

Dorian T. Warren is a Fellow at the Roosevelt Institute, an MSNBC Contributor, and Board Chair of the Center for Community Change. His forthcoming book is entitled The Three Faces of Unions: Inclusion & Democracy in the U.S. Labor Movement.

Felicia Wong is President and CEO of the Roosevelt Institute, where she leads work on Roosevelt’s comprehensive economic program and narrative to rewrite the rules.

She is a political scientist with expertise in race and education politics, held senior executive roles in the private and nonprofit sectors, and served as a White House Fellow.

Series: Cambridge Studies in Stratification Economics: Economics and Social Identity

Anyone focused on social change knows that there are a set of written and unwritten rules that incentivize and fortify the status quo. The work of social change — the work of undoing racism — is in changing those rules. In The Hidden Rules of Race, the team at Roosevelt has created a clear and actionable analysis, instrumental to identifying some of the most important interventions we can make, and to help us do the work better.

– Rashad Robinson, Executive Director, Color of Change Race matters. As our racial landscape dramatically changes, we must pay more attention to the racial inequities that continue to plague many communities of color. In The Hidden Rules of Race, we get a roadmap to why and how we must rewrite the racial rules in order to pave the way for racial and economic justice.

– Deepa Iyer, Senior Fellow, Center for Social Inclusion For too long, efforts to combat racial inequalities have been pitted against efforts to combat economic inequalities, in ways that have only empowered those who benefit from both. The authors of The Hidden Rules of Race show how in virtually all spheres of American life, the nation operates with explicit and tacit rules that perpetuate both race and class inequities. They advance proposals that should be central to national debates on how to pursue more truly equal rights and opportunities for all.

– Rogers M. Smith, Christopher H. Browne Distinguished Professor of Political Science, University of Pennsylvania To say that The Hidden Rules of Race gives timely clarity to one of the most pressing and fundamental issues in our society today would be a vast understatement. This is essential reading for economists, policymakers, corporate leaders, and all participants in our modern economy and society who would like to see [black Americans] achieve their maximum potential.

– Lisa D. Cook, Associate Professor of Economics and International Relations, Michigan State

flynn, holmberg, Warren, & Wong

ONLINE ISBN: 9781108277846

author isBn 9781108417549 JKT c M Y K

Andrea Flynn, Dorian T. Warren, Felicia J. Wong, Susan R. Holmberg, Roosevelt Institute

Susan R. Holmberg is a Fellow at the Roosevelt Institute. She writes on inequality, climate change, and corporate governance issues. Her writing has appeared in Democracy Journal, The Atlantic, Salon, The Hill, and Grist.

The Hidden Rules of Race shines an objective light on the discriminatory systems and structures that perpetuate disparities between black and white Americans.

The authors’ call for a comprehensive reorientation of our perspective on economic and racial inequality is bold, timely, andeeply necessary for those of us who wish to build a more inclusive future.

– Darren Walker, President, Ford Foundation

The hidden Rules of Race

Andrea Flynn is a fellow at the Roosevelt Institute, where she researches and writes about race, gender and the social and economic issues that impact women and families. Her writing has appeared in The Atlantic, The New Republic, Cosmopolitan, Salon, The Hill, and Women’s eNews.

University

Why do black families own less than white families? Why does school segregation persist decades after Brown v. Board of Education? Why is it harder for black adults to vote than for white adults?

Will addressing economic inequality solve racial and gender inequality as well? This book answers all of these questions and more by revealing the hidden rules of race that create barriers to inclusion today.

This is the most thorough and intelligent review of the western world’s economic development, corresponding

Monetary Fund in Washington, DC, with

intellectual debates, and lines of thought in economics and

which he was affliated for nearly three decades.

public policy from the end of World War I to the present

Dr. Tanzi is the author or editor of more than

that I have seen. Vito Tanzi is one of the most prominent

twenty-five books, including Government ver-

public finance economists in modern times; probably

sus Markets (2011) and Public Spending in the

the one with the broadest practical experience. Offering

20th Century (2000, with Ludger Schuknecht).

unparalleled deep explanations, his book is a fascinating

A former Undersecretary for Economy and

read. I was compelled enough to read the entire book in

Finance of the Italian government, he was President of the International Institute of Public Finance (IIPF) from 1990 to 1994. Dr. Tanzi

one swoop.

– Hans-Werner Sinn, Emeritus Professor

is known for the Tanzi effect, or Olivera-Tanzi

of Economics and Public Finance,

effect, which refers to the diminished real value

University of Munich

of tax revenues in periods of high inflation due to collection lags. He has served as a consult-

A fascinating discussion of why governments may some-

ant to the World Bank and the United Nations

times aggravate the problems they are set to solve. It offers

and previously taught at George Washington

a wealth of examples from New Zealand to the U.S. to

University and American University.

Italy, from current events to the Great Depression. Read it

Renowned public economist Vito Tanzi presents a sweeping account of the industrialized world's economic development during the 20th century to today. In the tradition of grand economic histories, Tanzi connects the biggest issues of the modern world including extreme gaps in income distribution; increasing complexity of government actions and regulations; and asymmetry of access to information and to political influence between the elite and the rest of society.

if you want to reflect upon the role of the public sector in modern economies. You will learn a lot from Vito Tanzi.

– Alberto Alesina, Nathaniel Ropes Professor of Political Economy, Harvard University

Printed in the United States of America Cover deisgn by Holly Johnson

TE RM ITES of the STATE

ONLINE ISBN: 9781108355681

Fiscal Affairs Department of the International

TANZI

Vito Tanzi

Tanzi. 9781108420938 Jacket. C M Y K

Why Complexity Leads to Inequality

An economist of international renown, Vito

white families? Why does school segregation persist decades after Brown v. Board of Education? Why is it harder for black adults to vote than for white adults? Will addressing economic inequality solve racial and gender inequality as well? This book answers all of these questions and more by revealing the hidden rules of race that create barriers to inclusion today. While many Americans are familiar with the histories of slavery and Jim Crow, we often don’t understand how the rules of those eras undergird today’s economy, reproducing the same racial inequities 150 years after the end of slavery and 50 years after the banning of Jim Crow segregation laws. This book shows how the fight for racial equity has been one of progress and retrenchment, a constant push and pull for inclusion over exclusion. By understanding how our economic and racial rules work together, we can write better rules to finally address inequality in America.

dorian T. Warren, & felicia J. Wong

Printed in the united states of america

Tanzi served for twenty years as Director of the

omy inclu sive econ Barr iers to an

Why do black families own less than

andrea flynn, susan R. holmberg,

Jacket design by catherine casalino

TERMITES OF THE STATE

The hidden Rules of Race

What role do democratic governments play

T E RM ITE S of the

STATE Why Complexity Leads to Inequality

in market economies? And what role should they play? Using a multidisciplinary approach, yet still based on economic theory, this book answers these questions by presenting a detailed and profound analysis of the economic role of the state in modern economies and in democratic societies. It shows how urbanization, technological developments, globalization, and the growing complexity of systems – the “termites of the state” – have been creating growing stress for societies and for economies.

Populism and growing income inequality are just two recent manifestations of this stress.

Written by internationally recognized economist Vito Tanzi, this book should be of keen interest to any instructor, student, or general reader of economics and public policy.

VITO TANZI

HIGHLIGHT EBOOK TITLES THE FED AND LEHMAN BROTHERS Setting the Record Straight on a Financial Disaster Laurence M. Ball, The Johns Hopkins University ONLINE ISBN: 9781108355742

Series: Studies in Macroeconomic History

The bankruptcy of the investment bank Lehman Brothers was the pivotal event of the 2008 financial crisis and the Great Recession that followed. Ever since the bankruptcy, there has been heated debate about why the Federal Reserve did not rescue Lehman in the same way it rescued other financial institutions, such as Bear Stearns and AIG. The compelling story of the Lehman collapse will interest anyone who cares about what caused the financial crisis, whether the leaders of the Federal Reserve have given accurate accounts of their actions, and how the Fed can prevent future financial disasters.

THE SELECTED LETTERS OF JOHN KENNETH GALBRAITH Edited by Richard P. F. Holt, Southern Oregon University ONLINE ISBN: 9781139095853

In his long and cosmopolitan life, Galbraith wrote thousands of letters, and Richard P. F. Holt has selected the most important of these from his archival research. Now available in print for the first time, these letters reveal the charm and brilliance of one the great American liberals of the twentieth century.

THE FED AND

LE HMAN BROTHERS Setting the Record Straight on a Financial Disaster

LAURENCE M. BALL

HIGHLIGHT EBOOK TITLES UNVEILING THE

NORTH KOREAN ECONOMY

UNVEILING THE NORTH KOREAN ECONOMY Collapse and Transition

Collapse and Transition

Byung-Yeon Kim, Seoul National University

BY U N G -Y E O N K I M

ONLINE ISBN: 9781316874882

North Korea is one of the most closed and secretive societies in the world. Despite a high level of interest from the outside world, we have very little detailed information about how the country functions economically. In this valuable book for both the academic and policy-making circles, Byung-Yeon Kim offers the most comprehensive and systematic analysis of the present day North Korean economy in the context of economic systems and transition economics.

ADVANCES IN ECONOMICS AND ECONOMETRICS the Eleventh World Congress of the Econometric Society, held in Montreal, Canada in August 2015. These papers provide state-of-the-art guides to the most important recent research in economics today. This book includes surveys and interpre-

Edited by Bo Honoré, Princeton University, New Jersey; Ariel Pakes, Harvard University, Massachusetts; Monika Piazzesi, Stanford University, California; Larry Samuelson, Yale University, Connecticut

tations of key developments in economics and econometrics, and discussion of future directions for a wide variety of topics, covering both theory and application.

These volumes provide a unique, accessible survey of progress on the discipline, written by leading specialists in their fields. The first volume includes theoretical and applied papers addressing topics such as dynamic mechanism design, agency problems, and networks.

Bo Honoré is Class of 1913 Professor of Political Economy and Professor of Economics at Princeton University. He is Director of the Gregory C. Chow Econometric

ONLINE ISBN VOLUME 1: 9781108227162

Research Program at Princeton University, and was formerly a member of the Board of Trustees of the Danish National Research Foundation. Honoré is a Fellow of the Econometric Society and conducts research in econometrics.

Ariel Pakes is the Thomas Professor of Economics at Harvard University. His

Advances in Economics and Econometrics Eleventh World Congress Volume I

change, and in econometric theory. He is a fellow of the Econometric Society, and American Academy of Arts and Sciences and the 2007 Distinguished Fellow of the Industrial Organization Society.

Series: Econometric Society Monographs

ECONOMETRIC SOCIETY MONOGRAPHS

received the Frisch Medal of the Econometric Society in 1986. He is a Fellow of the

Monika Piazzesi is the Joan Kenney Professor of Economics at Stanford University,

Volume I

ONLINE ISBN VOLUME 2: 9781108227223

research has been in industrial organisation, the economics of technological

Advances in Economics and Econometrics

This is the first of two volumes containing papers and commentaries presented at

Honoré, Pakes, Piazzesi and Samuelson

Theory and Applications, Eleventh World Congress

and she is also the Program Director of the NBER Asset Pricing Group. She conducts research in finance and macroeconomics. Piazzesi is a fellow of the Academy of Arts and Sciences, the Econometric Society, and the Society of Financial Econometrics.

A 2 volume collection of papers and commentaries presented at the Eleventh World Congress of the Econometric Society, held in Montreal, Canada in August 2015. The papers provide stateof-the-art guides to the most important recent research in economics. Written by the leading specialists in their fields, these volumes include surveys and interpretations of key developments in economics and econometrics, and discussion of future directions for a wide variety of topics, covering both theory and application.

Larry Samuelson is the A. Douglas Melamed Professor of Economics at Yale Univereconomic theory, with an emphasis on game theory. He has served as a co-editor of Econometrica and the American Economic Review.

ESM 58

sity and is Director of the Cowles Foundation of Yale University. His research is in

Edited by Bo Honoré Ariel Pakes Monika Piazzesi Larry Samuelson

HIGHLIGHT EBOOK TITLES Subtitle

Back copy

Harnessing Creativity to Drive Biomedical Innovation

Title

MANAGING DISCOVERY IN THE LIFE SCIENCES

Author

Title

MANAGING DISCOVERY IN THE LIFE SCIENCES Harnessing Creativity to Drive Biomedical Innovation

Philip A. Rea, Mark V. Pauly, Lawton R. Burns; University of Pennsylvania ONLINE ISBN: 9781316459263

In this book, distinguished scholars Philip A. Rea, Mark V. Pauly, and Lawton R. Burns explore the science and management behind marketable biomedical innovations. They look at how the science actually played out through the interplay of personalities, the cultures within and between academic and corporate entities, and the significance of serendipity not as a mysterious phenomenon but one intrinsic to the successes and failures of the experimental approach.

Illustration credit

Designed by Cover designer

EXPERT FAILURE Roger Koppl, Syracuse University, New York ONLINE ISBN: 9781316481400

Series: Cambridge Studies in Economics, Choice, and Society

The humble idea that experts are ordinary human beings leads to surprising conclusions about how to get the best possible expert advice. This book argues that, in the market for expert opinion, we need real competition in which rival experts may have different opinions and new experts are free to enter. Roger Koppl develops a theory of experts and expert failure, and uses a wide range of examples - from forensic science to fashion - to explain the applications of his theory, including state regulation of economic activity.

PHILIP A. REA, MARK V. PAULY and LAWTON R. BURNS

KEY EBOOK SERIES

The Cambridge Studies in Stratification Economics: Economics and Social Identity series encourages book proposals that emphasize structural sources of group-based inequality, rather than cultural or genetic factors. The series is interdisciplinary, drawing authors from various fields including economics, sociology, social psychology, history, and anthropology, with all projects focused on topics dealing with group-based inequality, identity, and economic well-being.

THE POLITICS OF BL ACK NESS

NEW SERIES

M I TC H E L L -WA LT HOU R

CAMBRIDGE STUDIES IN STRATIFICATION ECONOMICS: ECONOMICS AND SOCIAL IDENTITY

THE POLITICS OF

BLACK NESS Racial Identity and Political Behavior in Contemporary Brazil GL A DYS L. M I TCH E L L -WA LT HOU R

General Editor: William A. Darity Jr, Duke University, North Carolina

CAMBRIDGE STUDIES IN ECONOMICS, CHOICE, AND SOCIETY

“In this era of intransigence and intolerance, The Ethics of Influence is a vitally needed book. It embraces what all of us—left, right, and center—mutually want: a balance between the goals of welfare, autonomy, dignity, and self-government.

What’s more, it is a hoot to read. Roll Over Mill and Marx; tell Hayek and Gramsci the news.”

This interdisciplinary series promotes original theoretical and empirical research as well as integrative syntheses involving links between individual choice, institutions, and social outcomes.

Contributions are welcome from across the social sciences, particularly in the areas where economic analysis is joined with other disciplines, such as comparative political economy, new institutional economics, and behavioral economics.

In recent years, “nudge units,” or “behavioral insights teams,” have been created in the United States, the United Kingdom, Germany, and other nations. All over the world, public officials are using the behavioral sciences to protect the environment, promote em-ployment and economic growth, reduce poverty, and increase national security. In this book, Cass R. Sunstein, the eminent legal scholar and best-selling coauthor of Nudge, breaks new ground with a deep yet highly readable investigation into the ethical issues surrounding nudges, choice architecture, and mandates, addressing such issues as welfare, autonomy, self-government, dignity, manipulation, and the constraints and responsibilities of an ethical state. Complementing the ethical discussion, The Ethics of Influence: Government in the Age of Behavioral Science contains a wealth of new data on people’ s attitudes toward a broad range of nudges, choice architecture, and mandates.

SUNSTEIN

CAMBRIDGE STUDIES IN ECONOMICS, CHOICE, AND SOCIETY

– George A. Akerlof, Nobel Laureate in Economics, 2001

General Editors: Timur Kuran, Duke University; Peter J. Boetke, George Mason University

– David Halpern, CEO, Behavioural Insights Team, and author, Inside the Nudge Unit

“Behavioural regulation has spread to governments worldwide. This brilliant book tackles the many myths that have evolved around the use of behavioural economics in politics. Cass Sunstein explains in clear words how (and why) the core values of an Ethical State – welfare, autonomy, dignity, and self-government – are indeed best served by governments that carefully base their policies on an empirical foundation and use behavioural insights as additional effective policy tools.”

– Professor Lucia A. Reisch, Behavioural Economist, Copenhagen Business School

“Cass Sunstein knows more than anyone about nudging, and in this very insightful book he brings his acute reasoning to understanding the ethics behind choice architecture. Here he considers sources from Mill to Hayek to Ostrom, and argues that choice architecture is unavoidable and in many cases that it’s the right thing to do. Just as importantly, he talks about when nudging is wrong and when it is manipulative. All in all, it is an essential book for anyone interested in the ethics of behavioral intervention, either by governments or firms.”

– Eric J. Johnson, Norman Eig Professor of Business, Columbia University

THE ETHICS of INFLUENCE

CASS R. SUNSTEIN is Robert Walmsley University Professor at Harvard University. From 2009 to 2012, he was Administrator of the White House Office of Information and Regulatory Affairs. He is the founder and director of the Program on Behavioral Economics and Public Policy at Harvard Law School. Mr. Sunstein is the author of many articles and books, including the best-selling Nudge: Improving Decisions about Health, Wealth, and Happiness (with Richard H. Thaler, 2008), Simpler: The Future of Government (2013), Why Nudge?

(2014), Conspiracy Theories and Other Dangerous Ideas (2014), Wiser: Beyond Groupthink to Make Groups Smarter (2014), Valuing Life: Humanizing the Regulatory State (2014), Choosing Not to Choose: Understanding the Value of Choice (2015), and Constitutional Personae: Heroes, Soldiers, Minimalists, and Mutes (2015).

“As more governments and businesses turn to ‘nudging,’ pioneer Sunstein turns his brilliant mind to building an ethical framework for these powerful approaches.

New findings on public attitudes to nudges – showing surprisingly high levels of support even among traditionally skeptical Americans – are combined with Sunstein’s trademark clarity of thought to offer a timely framework that will be influential across the world.”

THE ETHICS of INFLUENCE Government in the Age of Behavioral Science

Cover Image: “Still Standing.”

Tommy Ingberg Photography. 2012.

Jacket design: Alice Soloway Printed in the United States of America

CASS R. SUNSTEIN

KEY EBOOK SERIES to the role of financial intermediaries in procuring a beneficial allocation of capital. But by the end of the century some financial historians had begun to turn the tide, and the phrase ‘finance-growth nexus’ became part of the lexicon of modern economics. Recent experience has added another dimension in that countries with broader, deeper and more active financial systems might be prone to financial crises, particularly if regulatory structures are inadequate. In this book, Peter L. Rousseau and Paul Wachtel have gathered together some of today’s most distinguished financial historians to examine this finance-growth nexus from historical and modern perspectives. Some essays examine the nexus in a particular

The titles in this series investigate themes of interest to economists and economic historians in the rapidly developing field of macroeconomic history. The four areas covered include the application of monetary and finance theory, international economics and quantitative methods to historical problems; the historical application of growth and development theory and theories of business fluctuations; the history of domestic and international monetary, financial and other macroeconomic institutions; and the history of international monetary and financial systems.

historical or cross-country context. Others, in the light of recent experience, explore the expanded nexus of finance, growth, crises, and regulation.

Peter L. Rousseau is Professor of Economics at Vanderbilt University, Tennessee and secretary-treasurer of the American Economic Association.

He is a macroeconomist and economic historian who studies the role of financial markets and institutions in growth and development. He has published extensively in leading economic journals, including the Journal of Political Economy, the Journal of Monetary Economics, the Journal of Financial Economics, and the Journal of Economic History.

Paul Wachtel is Professor of Economics at New York University’s Stern School of Business. He has published extensively on macroeconomics, monetary policy, and central banking. He is the co-editor of Comparative

Financial Systems and Economic Growth

STUDIES IN MACROECONOMIC HISTORY

Rousseau and Wachtel

Throughout much of the twentieth century, economists paid little heed

Financial Systems and Economic Growth Credit, Crises, and Regulation from the 19th Century to the Present Edited by Peter L. Rousseau and Paul Wachtel

Economic Studies and a consultant to the Central Bank of Croatia.

Cover illustration: Bank of the United States, with a view of Third Street, Philadelphia. The New York Public Library Collections

General Editors: Michael D. Bordo, Rutgers University, New Jersey Associate Editor: Owen F. Humpage, Federal Reserve Bank of Cleveland; Christopher M. Meissner, University of California, Davis; Kris James Mitchener, Santa Clara University, California; David C. Wheelock, Federal Reserve Bank of St Louis

cultural context of the Austrian School of Economics… Any reader fascinated by intellectual history and the play between idealizations and

Dekker

“… a brilliant exploration of the historical, scientific, philosophical and

HISTORICAL PERSPECTIVES ON MODERN ECONOMICS

circumstances will find Dekker’s approach very illuminating.”

“Erwin Dekker’s thoughtful book firmly situates the so-called ‘Austrian School’ of economics within its Viennese background, showing its members can be better thought of as students of civilization than as disciplinary economists… The Viennese Students of Civilization is to be welcomed as an important contribution to twentieth century intellectual economic history and current political thought.”

Haaro Mass, Centre Walras-Pareto for the history of economic and political thought, University of Lausanne

“In this thoughtful account of interwar Vienna and the Austrian tradition, Erwin Dekker reveals a humanistic scholarly sensibility quite rare amongst

General Editor: Harro Maas, Université de Lausanne, Switzerland

historians of economics. He adroitly interweaves the exploration of economics, sensibility and culture, yielding a book that will appeal to a correspondingly broad readership.”

Robert Leonard, Université du Québec à Montréal (UQAM)

Cover image:

The Viennese Students of Civilization

Peter Boettke, George Mason University, Virginia

This series contains original works that challenge and enlighten historians of economics. For the profession as a whole, it promotes better understanding of the origin and content of modern economics.

The Viennese Students of Civilization The Meaning and Context of Austrian Economics Reconsidered Erwin Dekker

KEY EBOOK SERIES Scotchmer’s life and work; analyses her pioneering contributions to the economics of patents and innovation incentives with a special focus on the modern theory of cumulative innovation; and describes her pioneering work on law and economics, evolutionary game theory, and general equilibrium/club theory. This book also

ECONOMETRIC SOCIETY MONOGRAPHS

provides a self-contained introduction to students who want to learn more about the various fields Professor Scotchmer worked in, with a particular focus on patent incentives and cumulative innovation.

Stephen M. Maurer is Adjunct Professor of Public Policy at the University of California at Berkeley. A longtime friend and colleague the late Professor Scotchmer, he

On the Shoulders of Giants

with introductions by leading economists and legal scholars. This book introduces

Maurer

This book presents eleven classic papers by the late Professor Suzanne Scotchmer

co-authored eight articles and book chapters with her from 1999-1014. Trained as

The Econometric Society Monographs series is designed to promote the publication of original research contributions of high quality in economic theory and theoretical and applied econometrics. The editors of the Monographs series now welcome focused manuscripts of 100 to 150 pages that treat or survey cutting-edge or perennially important topics. For instance, these may address themes covered in the Society's recent World Congress volumes and similar series.

a lawyer, Maurer specializes in innovation, antitrust, and science policy. Maurer is the editor and co-author of the book WMD Terrorism: Science and Policy Choices (2007).

ECONOMETRIC SOCIETY MONOGRAPHS

On the Shoulders of Giants Colleagues Remember Suzanne Scotchmer’s Contributions to Economics

ESM 57

Edited by Stephen M. Maurer

General Editors: Jeffrey Ely, Northwestern University, Illinois; Donald W. K. Andrews, Yale University, Connecticut

THEMES IN MODERN ECONOMETRICS Themes in Modern Econometrics provides an organized sequence of textbooks in econometrics aimed directly at the student population, and is the first series in the discipline to have this as its express aim. Written at a level accessible to students with an introductory course in econometrics behind them, each book addresses topics or themes that students and researchers encounter daily. While each book is able to stand alone as an authoritative survey in its own right, the distinct emphasis throughout is on pedagogic excellence.

Managing Editor: Peter C. B. Phillips, Yale University, Connecticut General Editors: Eric Ghysels, University of North Carolina, Chapel Hill; Richard J. Smith, University of Warwick

Structural Vector Autoregressive Analysis

Lutz Kilian and Helmut Lütkepohl

Thomas Mazzoni

THIRD EDITION

Geert Bekaert and Robert Hodrick

intermediation and banking, and payments systems. The writing, as always, is lucid, precise, and engaging. I can think of no other undergraduate textbook in macro- or monetary economics that infects the reader with as much passion for the craft of economics as this one.”

– Professor Joydeep Bhattacharya, Department of Economics, Iowa State University

Cost-Benefit AnAlysis

“This book is the most rigorous and accessible treatment of monetary issues based on dynamic, micro-founded models of monetary exchange for advanced undergraduate students. It answers fundamental questions: Why is fiat money valued? Can money coexist with interest-bearing assets? What is the role of banks and central banks? It also addresses topical questions relative to payment systems, liquidity risk, and the effects of the national debt on future growth. It is a must-read for all students eager to learn advanced monetary economics.”

– Professor Guillaume Rocheteau, Department of Economics, University of California, Irvine

A COURSE IN

Concepts and Practice Fourth Edition

Fourth Edition

Bruce Champ Scott Freeman Joseph Haslag

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ENVIRONMENTAL ECONOMICS

Modeling Monetary Economies

Modeling Monetary Economies

“In this book, Professor Haslag, a first-rate economist with a theoretical bent, takes the

reader into the landscape of modern monetary economics to help us make sense of the deep DANIEL J. do,PHANEUF questions: what does money why do we have money, why is banking important, why is inflation bad, and many others. The book uses the overlapping generations model as its TILL REQUATE workhorse to study a vast range of issues such as money supply, inflation, financial

Theory, Policy, and Practice

Anthony E. Boardman | david h. Greenberg Aidan r. Vining | david L. Weimer

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Now in its third edition, this bestselling and thoroughly classroom-tested textbook is a complete resource for finance students.

Detailed case studies from the field of finance help students relate to econometric theory and understand how techniques are used in relevant financial contexts

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Sample instructions and worked examples from the latest version of the popular statistical package EViews guide students to apply the techniques to their own data, Daniel Hausman, McPherson, implement models and interpretMichael results

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Gives advice on planning and executing a project in empirical finance, including a discussion of how to build efficient frontiers, and conduct event studies and tests of asset pricing models

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End-of-chapter review questions allow students to selfassess their understanding of the material

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Learning outcomes and key concepts frame each chapter, outlining the most important topics and guiding students towards the main chapter takeaways.

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Seco n d edition

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for MBA and other serious business students to help them develop the economic way of thinking by applying the theory to a variety of problems that business students, as future managers

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Quote author, Affiliation.

“A tour de force...” - Jean Tirole

of real-world firms, will find relevant. This third edition has been designed to work with conventional on-campus courses as well

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IndustrIal OrganIzatIOn as online and hybrid courses--at the end of each chapter the authors list related video lectures tied directly to the chapters prepared by Richard McKenzie and available on YouTube.

These video lectures help students understand complex lines of argument covered in the chapters and help them review for

tests and are designed to fit the needs of students taking online or hybrid courses. Each chapter also concludes with links to topical online readings and discussion and review questions. This

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M a rprovides k ea complete t s course an d s tforr at e g I e s combination in microeconomics advanced business students.

Paul Bellefl amme and martin Peit z

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Microeconomics for MBAs

Online Resources www.cambridge.org/belleflamme2 Additional exercises

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This is the first textbook in microeconomics written exclusively

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New material and detailed case studies on panel unit root and cointegration tests, quantile regression, and correlation modelling ensure that the text is fully up to-date with important modern topics

third edition

MCKENZIE & LEE

Jean tirole, Toulouse School of Economics, 2014 Nobel Laureate in Economic Sciences

IndustrIal OrganIzatIOn

• Includes chapter review questions, exercises and suggestions for further reading, as well as additional online exercises, to support student learning.

‘Paul Belleflamme and Martin Peitz’s Industrial Organization: Markets and Strategies offers a fully up-to-date treatment of modern industrial organization, including recent work on intellectual property, new forms of price discrimination, competition policy and two-sided markets.

Theoretically inclined, clearly written, and mathematically accessible to a wide audience (including advanced undergraduates), it usefully provides motivation through short business-strategy or competition-policy cases.

A tour de force and a must-read for students, researchers and practitioners of the field.’

Bellefl amme Peit z

• Draws on numerous real-world cases to engage students and lead them to connect theories to real situations.

and

• Presents formal models in detail and summarizes the main insights of these models in short ‘lessons’.

9781107139480 McKenzie & Lee PPC C M Y K

• Familiarizes students with the most important models for understanding the strategies chosen by firms with market power.

A thorough glossary provides a quick and complete reference for econometric terminology

Freely available resources include: Additional chapter review questions, in both written and multiple-choice formats, with answers provided PowerPoint and TeX slides Links to useful websites EViews computer code samples Downloadable datasets Comprehensive glossary

Third Edition

Thoroughly revised according to classroom feedback, Industrial Organization: Markets and Strategies offers an up-to-date and rigorous presentation of modern industrial organization that blends theory with real-world applications and derives implications for firm strategy and competition policy. The second edition includes new and revised formal models, student questioning and case studies.

A full chapter on the basic mathematics and statistics underlying econometrics provides support for students encountering econometrics for the first time

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Microeconomics for MBAs The Economic Way of Thinking for Managers

THIRD EDITION

INTRODUCTORY

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ECONOMETRICS FOR FINANCE

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Economic Analysis, Moral Philosophy, and Public Policy

Key features: • A comprehensive and illustrated discussion of the most common empirical approaches in finance prepares students to use econometrics in practice

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Modeling Monetary Economies: Fourth Edition

“This is my favorite textbook for my undergraduate course in monetary economics. It requires only a small investment in order to familiarize the students with the overlapping generations model. Thereafter, the book covers a broad set of topics by building simple extensions of the basic model. My students love it and I can also highly recommend it to any reader interested in money, banking, and monetary policy.”

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Phaneuf_Requate

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Daniel J. Phaneuf is Professor of Agricultural and Applied Economics at the University of Wisconsin-Madison.

THIRD EDITION

Thoma s F. C argill

Bekaert and Hodrick

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The Financial SySTem, Financial RegulaTion and cenTRal Bank Policy

I N T E R N AT I O N A L FINANCIAL MANAGEMENT

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A First Course in

I N T E R N AT I O N A L FINANCIAL MANAGEMENT

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The Financial SySTem, Financial RegulaTion and cenTRal Bank Policy

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Professor Thomas F. Cargill has taught and conducted research on financial and monetary economics at the University of California, Davis; University of Hawaii at both Honolulu and Saigon (Ho Chi Minh City), Vietnam; California State University, Sacramento; Purdue University, Indiana; and since 1973, the University of Nevada, Reno.

He has written extensively as a single and joint author on US financial and central banking issues and has also conducted similar research on China, Korea, Japan, and Vietnam. His work has been published in The Journal of Economic History, Journal of Money, Credit and Banking, The Journal of Finance, Journal of Political Economy, Review of Economics and Statistics, and International Finance. His work has also been published by Cambridge University Press, Hoover Institution Press, the MIT Press and Oxford University Press.

This unique graduate textbook offers a compelling narrative of the growing field of environmental economics that integrates theory, policy, and empirical topics. Authors Daniel J. Phaneuf and Till Requate present both traditional and emerging perspectives, incorporating cutting-edge research in a way that allows students to easily identify connections and common themes. Their comprehensive approach gives instructors the flexibility to cover a range of topics, including important issues – such as tax interaction, environmental liability rules, modern treatments of incomplete information, technology adoption and innovation, and international environmental problems – that are not discussed in other graduate-levels texts. Numerous data-based examples and end-of-chapter exercises show students how theoretical and applied research findings are complementary, and enable them to develop skills and interests in all areas of the field.

Cambridge University Press is a leading textbook publisher, delivering high quality teaching materials and learning solutions that inspire students to achieve.

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C argill

9781107035676 Cargill PPC C M Y K

ECONOMICS AND FINANCE Textbooks

Traditional money and banking textbooks are long, expensive, and full of so much institutional and technical modeling detail that students can’t understand the big picture. Thomas F. Cargill presents a new alternative: a short, inexpensive book without the ‘bells and whistles’ that teaches students the fundamentals in a clear, narrative form.

In an engaging writing style, Cargill explains the three core components of money and banking, and their interactions: 1), the financial system, 2), government regulation and supervision, and, 3), central bank policy. Cargill focuses on the interaction between government financial policy and central bank policy and offers a critique of the central bank’s role in the economy, the tools it uses, how these tools affect the economy, and how effective these policies have been, providing a more balanced perspective of government policy failure versus market failure than traditional textbooks.

CHRIS BROOKS

INTRODUCTORY

ECONOMETRICS FOR

FINANCE 3rd Edition

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