Table Of ContentRESOURCE ALLOCATION AND ECONOMIC POLICY
Also by Michael Allingham
EQUILIBRIUM AND DISEQUILIBRIUM
GENERAL EQUILIBRIUM
Also by M. L. Burstein
MONEY
ECONOMIC THEORY: EQUILIBRIUM AND CHANGE
STUDIES IN THE DEMAND FOR DURABLE GOODS (co-author)
RESOURCE ALLOCATION
AND ECONOMIC POLICY
Edited by
MICHAEL ALLINGHAM
AND
M. L. BURSTEIN
©Michael Allingham and M. L. Burstein 1976
Softcover reprint of the hardcover 1st edition 1976
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First published 1976 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in New York
Dublin Melbourne johannesburg and Madras
ISBN 978-1-349-02675-3 ISBN 978-1-349-02673-9 (eBook)
DOI 10.1007/978-1-349-02673-9
This book is sold subject
to the standard conditions
of the Net Book Agreement
This book is for Mavis Cole
Contents
Preface ix
Notes on the Contributors
XI
PART I: RESOURCE ALLOCATION
Introduction 3
1 Price Adjustment Michael Allingham 5
2 A Reconsideration of the Theory of Inflation Robert W.
Clower 14
3 Paternalism and Prices G. C. Archibald and David Donaldson 26
4 The Changing Economics of Education Z. Griliches 35
5 Mathematical Programming in Long-term Planning - Hungary
P. Bod 44
6 Interactions Between Planned and Market Economies-
Hungary M. M. Tardos 52
7 Economic Theory and Political Strategy - Cambodia
M. L. Burstein 61
8 Aid in a System of Taxes and Prices - Cambodia W. F.
Beazer 72
PART II: ECONOMIC POLICY
Section 1: Petroleum Economics
Introduction 87
9 Public Investment in Energy Production under Price
Uncertainty Michael Kennedy 89
10 The Vertical Integration of Oil Firms Michael E. Canes 103
11 The Macroeconomic Effects of the Higher Oil Price
]. R. Sargent 121
12 Conflict and Co-operation in an Era of High Oil Prices
Michael jefferson 136
Section 2: Financial Economics
Introduction 151
13 Monetary Policy, the Stock Market and the Real Economy: A
Keynesian Conspectus M. L. Burstein 153
vii
viii Contents
14 Equity Values in Periods of Inflation Henry C. Wallicb and
Norman E. Mains 164
15 'Keynesian' and 'Monetarist' Indicators of the United Kingdom
Economy Gordon T. Pepper and Geoffrey E. Wood 182
16 Money and Inflation: Some International Comparisons
RichardT. Selden 199
17 Economic Foundations of Stock Market Regulation Irwin
Friend 225
Index of Persons 245
Index of Subjects 249
Preface
This volume contains the proceedings of a conference sponsored by the
University College at Buckingham and the Institute of Economic Affairs,
and held in London in June 1975. The editors, on behalf of the authors,
who must be considered the real proprietors of the book, gratefully
acknowledge the support of the College and the Institute which made the
conference possible.
MA
London
MB
August 1975 Suffolk
ix
Notes on the Contributors
Michael Allingham teaches at the London School of Economics, and has
previously taught at Edinburgh, Essex, Northwestern, Pennsylvania and
Bristol Universities.
G. C. Archibald is Professor of Economics at the University of British
Columbia. Prior to that he taught at the London School of Economics and
the University of Essex, and edited the Canadian journal of Economics in
1973-4.
W. F. Beazer teaches at the University of Virginia, and has done develop
ment work for IDA, the US DoD (AID), and other agencies.
P. Bod works at the Mathematical Institute of the Hungarian Academy of
Sciences in Budapest, and has written extensively on multi-sectional plan
ning.
M. L. Burstein taught in the United States and Canada, as well as at
Warwick, before supervising the establishment of the School of Economics
at Buckingham.
Michael Canes taught at Rochester University before joining the research
staff of the American Petroleum Institute.
Robert Clower is Professor of Economics at the University of California,
Los Angeles, and Editor of Economic Inquiry, the journal of the Western
Economic Association.
David Donaldson is Associate Professor of Economics at the University of
British Columbia. He took his B.A. in Mathematics at the University of
Toronto in 1960 and his Ph.D. in Economics at Stanford University in
1966. His previous publications are in welfare economics.
Irwin Friend is director of the Rodney L. White Center of the Wharton
School, University of Pennsylvania, and an authority on the analysis of
securities markets and their regulatory processes.
Z. Grilliches is Professor of Economics at Harvard University, and has
previously taught at Chicago. He was president of the Econometric Society
in 1975.
Michael jefferson is an economist with Shell International, and has worked
widely in petroleum economics.
Michael Kennedy teaches at Texas University, and has published important
research in the economics of the world petroleum economy.
Norman Mains studied at Colorado and Warwick Universities and was
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