Derek Pyne

Revealed Preference Tests of the Stolper-Samuelson Theorem

This article conducts revealed preference tests of the Stolper-Samuelson theorem. If the Stolper?Samuelson theorem holds, one would expect to find a countrys relatively scarce factor of production (in this case labor) harmed from trade liberalization and thus opposing trade liberalization. The reverse would be true for its relatively abundant factor of production (in this case capital). Therefore, this article examines representations made before the Canadian House of Commons committee studying the Canadian?U.S. Free Trade Agreement. Assuming representations coincide with the self-interest of the presenters, the effects of trade liberalization on factor returns are inferred. It finds strong support for the proposition that labor behaves as the Stolper?Samuelson theorem would predict and qualified support for capital behaving as the Stolper?Samuelson theorem would predict.

Does the Choice of Introductory Microeconomics Textbook Matter

The author examines the effects of different introductory microeconomics textbooks on student performance in subsequent economics courses (specifically, Intermediate Microeconomics I and Money and Banking). In some cases, the effects are significant and sizeable. There is also evidence of other variables affecting student performance in later courses, such as taking first-year microeconomics by distance, math background, effects of having taken other economics courses, and the time between introductory economics and later courses.

The Economics of Scams

Abstract This paper offers one of the first economic analyses of scams. Its major finding is that, unlike other crimes, imperfect enforcement may increase victimization by deterring only low-ability scammers whose failed attempts would otherwise alert potential victims before encounters with high-ability scammers. High-ability scammers may actually benefit from partial enforcement, which reduces their competition. These results may be reinforced when failed attempts are punished.