Stuart D. Allen

Entrepreneurship and Human Capital: Evidence of Patenting Activity from the Academic Sector.

This paper presents empirical evidence of the relationship between faculty entrepreneurial activity—quantified in terms of the propensity of U.S. university faculty to work directly with industry on research activities that lead to patents—and human capital, measured in terms of faculty tenure and age. Patenting reflects a unique dimension of faculty entrepreneurship, namely, collaborative activity that results in joint intellectual property. We find that faculty with tenure are more likely to engage in such activity, thus providing suggestive evidence of an externality associated with permanent employment. We also find that older faculty are more likely to engage with industry, to a point, holding tenure constant. Tenure and age proxy, respectively, what we call the “accumulated advantage” of faculty and their absorptive capacity. Because faculty patenting with industry involved both parties, our findings reflect that such faculty experience and expertise are important to industry to enter into a patenting relationship. Finally, we find that male faculty are more likely to patent with industry than female faculty.

Government borrowing and monetary accommodation

This paper re-examines the relationship between Treasury borrowing and monetary growth examined previously with annual data by Barro, Niskanen and Hamburger and Zwick. Our analysis, based on quarterly data, produces evidence of a positive and significant impact of total Treasury borrowing upon the growth of the monetary base for the 1954/I-1961/II and 1961/III-1974/IV periods but an insignificant coefficient for the Barro expenditure variable. When the coefficient instability during the 1961/III-1980/IV period is corrected by a dummy variable technique thy debt coefficient is positive and significant and remains stable for this two decade period.

The influence of elections on federal reserve behavior

A political business cycle is tested in a monetary reaction function. Positive evidence is a result of the 1930s and 1940s and not post-war elections. In addition, there is no evidence of such a cycle in a rational expectations model.

The effect of federal deficits and debt on the tax-adjusted, short-term, real interest rate

The stock versus flow effect of the federal debt/deficit on a real interest rate is examined in a reduced-form equation. The evidence shows a positive and significant linkage between the federal debt and an ex-post, tax-adjusted, short-term, real interest rate.

Financial Market Effects on Aggregate Money Demand: A Bayesian Analysis

This paper evaluates the extent to which aggregate data yield robust inferences about the linkages between financial market effects and aggregate M1 and M2 holdings. In particular, the authors investigate whether stock market returns, stock market volume, and a new brokerage costs measure affect money demand. They employ recent advances in Bayesian econometric methods to control for model specification uncertainty, and provide a complete sensitivity analysis of their results to alternative prior distributions. The impact of nonstationarity on inferences is briefly explored with an error correction model. Copyright 1989 by Ohio State University Press.

A multinominal logit analysis of the influence of policy variables and board experience on FOMC voting behavior

Previous studies have used probit or logit models to analyze two states of monetary policy (tighter or looser). In this paper we employ multinominal logit to permit Federal Reserve monetary policy to assume one of three alternative states (tighter, looser, or no change) as a function of three independent economic variables (unemployment, real growth, and inflation) and the amount of experience of the Board of Governors. The results indicate that the Federal Reserve reacted differently under Burns, Miller and Volcker and between Volckers two operating procedures in the formulation of monetary policy.

Deficits and money growth in the United States : A comment

Joines (1985) argues that the Federal Reserve accommodates war-induced deficit spending but not non-war-induced deficit spending. Using a first-difference form of a reaction function to obtain a stationary time series of the monetary base, we find that the Federal Reserve has accommodated federal government deficit spending in the post-World War II period.

The Political Business Cycle: How Significant?

This article provides evidence that the seasonally adjusted unemployment rate conforms to a four-year pohtical business cycle such as the one hypothesized by Nordhaus (1976) but only when the incumbent party wins the presidential election. The unemployment rate, however, is only reduced by a cumulative effect of .3 to .6 percentage points m the two years preceding a presidential victory.

Klein's Price Variability Terms in the U.S. Demand for Money: A Note

One recent innovation in the empirical work on the demand for money has been the inclusion of a measure of the past or future variability of the inflation rate or the interest rate. 1 One particularly unique empirical and theoretical treatment is developed by Klein [12] who reports a positive and significant effect on the U.S. demand for money by a price uncertainty variable, S( /P), which allegedly measures the quality of cash balances. These results substantiate his theoretical development that an increase in the uncertainty of the inflation rate lowers the quality of the services from a stock of money which thereby increases the demand for money. The S( /P) term represents a measure of the past variability of the rate of change of prices and is analogous to an adaptive expectations term for the rate of inflation. 2

Money Demand and the Term Structure of Interest Rates: Some Consistent Estimates

Heller and Khan (1979, hereafter HK) employ a quadratic function of the term structure of interest rates to obtain quarterly coefficient estimates of its level, slope and curvature. These estimates are substituted for the interest rate variable in a short-run money demand function, HK conclude that their specification is stable during the turbulent 1972-1974 period. This note shows that HKs stability findings are dependent upon their use of the Cochrane—Orcutt iterative technique (hereafter CORC), not the inclusion of term structure variables. We show that money demand equations incorporating term structure information, specifically the specifications of HK, Bilson and Hale (1980, hereafter BH) and our own (which uses a cubic function of the term structure) are not stable when the Hatanaka (1974, hereafter HAT) procedure is employed to correct for serial correlation.