New Releases by Robert J Gordon

This paper develops the theory of price measurement when quality change is "nonproportional", yielding increases in the user value of a given product in a different proportion than the increase in production cost associated with the quality improvement. The theoretical section demonstrates that "nonproportional" quality change is treated consistently by properly defined input and output price indexes; that both types of indexes should he based on quality adjustments that use the criterion of user value rather than production cost; and that if improvements in energy efficiency are embodied in a good by its manufacturer, the prices of new models should be adjusted for the user value of these cost savings. The proposed approach is applied in a case study of the commercial aircraft industry. In contrast to the official price index for aircraft that rises at a 2.5 percent annual rate between 1957 and 1972,a new index is developed that declines at a 7.1 percent annual rate over the same period. The new index implies that output and productivity in the aircraft industry grew much faster than previously believed between 1957 and1972,while total factor productivity in the airline industry grew much less rapidly. The proposed quality adjustments for individual aircraft types are corroborated by price ratios observed in the used aircraft market.

The most striking aspects of recent U.S. wage and price behavior are the small year-to-year variations in the rate of change of wages, the modest 1977-79 acceleration in the rate of change of both wages and the consumption deflator net of food and energy, and an unprecedented gap between the inflation rates recorded by the CPI and personal consumption deflator. A small and simple econometric model is used to forecast the consequences of various policies for the future growth of the monetary base. No policy will be able to prevent an acceleration in the growth rate of the personal consumption deflator net of food and energy from its recent 7 percent track to 8 percent or above in the first half of 1980. The gross personal consumption deflator will climb even faster, with the difference depending on the behavior of oil and food prices. Thereafter, the effect of slack labor markets will begin to allow inflation net of food and energy to decelerate substantially. A 6 percent rule for the monetary base is too conservative and causes the unemployment rate to rise to 8.5 percent in 1982. An 8 percent rule for the base is preferable, allows the unemployment rate to begin to fall after late 1981, and still achieves a deceleration of inflation net of food and energy from 8 percent in mid-1980 to 6 percent in 1983. Thereafter, the growth of the base should be slowed down to keep the economy from overshooting again

Monograph on race relations, ethnic factors and labour relations of African migrant workers in the work environment and living conditions of a mining compound in Namibia - includes a bibliography pp. 269 to 276, diagrams, illustrations, references and statistical tables.