This paper uses microeconomic panel data to examine differences in the cyclical variability of employment, hours, and real wages for skilled and unskilled workers. Contrary to conventional wisdom, it finds that, at the aggregate level, skilled and unskilled workers are subject to the same degree of cyclical variation in wages. However, the quality of labor input is found to rise in recessions, inducing a countercyclical bias in aggregate measures of the real wage. The paper also finds substantial differences across industries in the cyclical variation of employment, hours, and wage differentials, indicating important interindustry differences in labor contracting.

Abstract

This paper uses microeconomic panel data to examine differences in the cyclical variability of employment, hours, and real wages for skilled and unskilled workers. Contrary to conventional wisdom, it finds that, at the aggregate level, skilled and unskilled workers are subject to the same degree of cyclical variation in wages. However, the quality of labor input is found to rise in recessions, inducing a countercyclical bias in aggregate measures of the real wage. The paper also finds substantial differences across industries in the cyclical variation of employment, hours, and wage differentials, indicating important interindustry differences in labor contracting.

Volume 40 (1993) comprises four issues, as follows:

March, pages 1-236

June, pages 237-484

September, pages 485-710

December, pages 711-895

Authors

Bennett, Adam G.G. The Operation of the Estonian Currency Board 451

Borensztein, Eduardo, Dimitri G. Demekas, and Jonathan D. Ostry. An Empirical Analysis of the Output Declines in Three Eastern European Countries 1

Calvo, Guillermo A., and Fabrizio Coricelli. Output Collapse in Eastern Europe: The Role of Credit 32

Calvo, Guillermo A., Leonardo Leiderman, and Carmen M. Reinhart. Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors 108

Calvo, Guillermo A., Leonardo Leiderman, and Carmen M. Reinhart. Formulating a Policy Response: Reply to Snowden 868

Caramazza, Francesco. French-German Interest Rate Differentials and Time-Varying Realignment Risk 567

Chadha, Bankim, and Eswar Prasad. Interpreting the Cyclical Behavior of Prices 266

Chadha, Bankim, Fabrizio Coricelli, and Kornelia Krajnyak. Economic Restructuring, Unemployment, and Growth in a Transition Economy 744

Clifton, Eric V., and Mohsin S. Khan. Interenterprise Arrears in Transforming Economies: The Case of Romania 680

Coe, David T., and Reza Moghadam. Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology 542

Coricelli, Fabrizio, and Guillermo A. Calvo. Output Collapse in Eastern Europe: The Role of Credit 32

Coricelli, Fabrizio, Bankim Chadha, and Kornelia Krajnyak. Economic Restructuring, Unemployment, and Growth in a Transition Economy 744

Demekas, Dimitri G., Eduardo Borensztein, and Jonathan D. Ostry. An Empirical Analysis of the Output Declines in Three Eastern European Countries 1

Dooley, Michael, and Mark R. Stone. Endogenous Creditor Seniority and External Debt Values 395

Dooley, Michael, Richard Haas, and Steven Symansky. A Note on Burden Sharing Among Creditors 226

Feldman, Robert A,, and Rajnish Mehra. Auctions: Theory and Applications 485

García, Maria E. Output Fluctuations and Monetary Shocks in Colombia: Comment on Reinhart and Reinhart 871

Gardner, Edward H., and William R.M. Perraudin. Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification 427

Goldberg, Linda S. Foreign Exchange Markets in Russia: Understanding the Reforms 852

Guidotti, Pablo E. Wage and Public Debt Indexation 237

Haas, Richard, Michael Dooley, and Steven Symansky. A Note on Burden Sharing Among Creditors 226

Haque, Nadeem U., and Peter J. Montiel. Fiscal Adjustment in Pakistan: Some Simulation Results 471

Hu, Zuliu. Risk Taking and Optimal Taxation in the Presence of Nontradable Human Capital 622

Hu, Zuliu. The Yield Curve and Real Activity 781

Kawai, Masahiro. Optimal and Sustainable Exchange Rate Regimes: A Two-Country Game-Theoretic Approach 329

Keane, Michael, and Eswar Prasad. Skill Levels and the Cyclical Variability of Employment, Hours, and Wages 711

Khan, Mohsin S., and Eric V. Clifton. Interenterprise Arrears in Transforming Economies: The Case of Romania 680

Knight, Malcolm, Norman Loayza, and Delano Vilianueva. Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach 512

Krajnyak, Kornelia, Bankim Chadha, and Fabrizio Coricelli. Economic Restructuring, Unemployment, and Growth in a Transition Economy 744

Lane, Timothy D. Market Discipline 53

Lee, Jong-Wha. International Trade, Distortions, and Long-Run Economic Growth 299

Leiderman, Leonardo, Guillermo A. Calvo, and Carmen M. Reinhart. Formulating a Policy Response: Reply to Snowden 868

Leiderman, Leonardo, Guillermo A. Calvo, and Carmen M. Reinhart. Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors 108

Lin, Shoukang. A Monetary Model of a Shortage Economy 369

Lizondo, J. Saul. Real Exchange Rate Targeting Under Imperfect Asset Substitutability 829

Loayza, Norman, Malcolm Knight, and Delano Villanueva. Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach 512

MacDonald, Ronald, and Mark P. Taylor. The Monetary Approach to the Exchange Rate: Rational Expectations, Long-Run Equilibrium, and Forecasting 89

Mehra, Rajnish, and Robert A. Feldman. Auctions: Theory and Applications 485

Miller, Marcus, and Alan Sutherland. Contracts, Credibility, and Common Knowledge: Their Influence on Inflation Convergence 178

Moghadam, Reza, and David T. Coe. Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology 542

Montiel, Peter J., and Nadeem U. Haque. Fiscal Adjustment in Pakistan: Some Simulation Results. 471

Muzondo, Timothy R. Mineral Taxation, Market Failure, and the Environment 152

Osband, Kent, and Delano Villanueva. Independent Currency Authorities: An Analytic Primer 202

Ostry, Jonathan D., Eduardo Borensztein, and Dimitri G. Demekas. An Empirical Analysis of the Output Declines in Three Eastern European Countries 1

Papaioannou, Michael G., and Tugrul Temel. Portfolio Performance of the SDR and Reserve Currencies: Tests Using the ARCH Methodology 663

Perraudin, William R.M., and Edward H. Gardner. Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification 427

Prasad, Eswar, and Bankim Chadha. Interpreting the Cyclical Behavior of Prices 266

Prasad, Eswar, and Michael Keane. Skill Levels and the Cyclical Variability of Employment, Hours, and Wages 711

Reinhart, Carmen I., and Vincent R. Reinhart. Output Fluctuations and Monetary Shocks in Colombia: Reply to García 876

Reinhart, Vincent R., and Carmen M. Reinhart. Output Fluctuations and Monetary Shocks in Colombia: Reply to García 876

Reinhart, Carmen R., Guillermo A. Calvo, and Leonardo Leiderman. Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors 108

Reinhart, Carmen R., Guillermo A. Calvo, and Leonardo Leiderman

Formulating a Policy Response: Reply to Snowden 868

Rodriguez, Carlos Alfredo. Money and Credit Under Currency Substitution 414

Santaella, Julio A. Stabilization Programs and External Enforcement: Experience from the 1920s 584

Schutte, Christian, and Parthasarathi Shome. Cash -Flow Tax 638

Shome, Parthasarathi, and Christian Schutte. Cash-Flow Tax 638

Shome, Parthasarathi, and Vito Tanzi. A Primer on Tax Evasion 807

Snowden, P. Nicholas. Formulating a Policy Response; Comment on Calvo, Leiderman, and Reinhart 865

Stella, Peter. Tax Farming: A Radicai Solution for Developing Country Tax Problems? 217

Stone, Mark R., and Michael Dooley. Endogenous Creditor Seniority and External Debt Values 395

Sutherland, Alan, and Marcus Miller. Contracts, Credibility, and Common Knowledge: Their Influence on Inflation Convergence 178

Symansky, Steven, Michael Dooley, and Richard Haas, A Note on Burden Sharing Among Creditors 226

Tanzi, Vito. The Budget Deficit in Transition: A Cautionary Note 697

Tanzi, Vito, and Parthasarathi Shome. A Primer on Tax Evasion 807

Taylor, Mark P., and Ronald MacDonald. The Monetary Approach to the Exchange Rate: Rational Expectations, Long-Run Equilibrium, and Forecasting 89

Temei, Tugrul, and Michael G. Papaioannou. Portfolio Performance of the SDR and Reserve Currencies: Tests Using the ARCH Methodology 663

Villanueva, Delano, and Kent Osband. Independent Currency Authorities: An Analytic Primer 202

Villanueva, Delano, Malcolm Knight, and Norman Loayza. Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach 512

Titles

Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification. By Edward H, Gardner and William R.M. Perraudin 427

Auctions: Theory and Applications. By Robert A. Feldman and Rajnish Mehra 485

The Budget Deficit in Transition: A Cautionary Note. By Vito Tanzi 697

Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology. By David T. Coe and Reza Moghadam 542

Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors. By Guillermo A. Calvo, Leonardo Leiderman, and Carmen M. Reinhart 108

Cash-Flow Tax. By Parthasarathi Shome and Christian Schutte 638

Contracts, Credibility, and Common Knowledge: Their Influence on Inflation Convergence. By Marcus Miller and Alan Sutherland 178

Economic Restructuring, Unemployment, and Growth in a Transition Economy. By Bankim Chadha, Fabrizio Coricelli, and Kornelia Krajnyak 744

An Empirical Analysis of the Output Declines in Three Eastern European Countries. By Eduardo Borensztein, Dimitri G. Demekas, and Jonathan D. Ostry 1

Endogenous Creditor Seniority and External Debt Values. By Michael Dooley and Mark R. Stone 395

Fiscal Adjustment in Pakistan: Some Simulation Results. By Nadeem U. Haque and Peter J. Montiel 471

Foreign Exchange Markets in Russia: Understanding the Reforms. By Linda S. Goldberg 852

Formulating a Policy Response: Comment on Calvo, Leiderman, and Reinhart. By P. Nicholas Snowden 865

Formulating a Policy Response: Reply to Snowden. By Guillermo A.

Calvo, Leonardo Leiderman, and Carmen M. Reinhart 868

French-German Interest Rate Differentials and Time-Varying Realignment Risk. By Francesco Caramazza 567

Independent Currency Authorities: An Analytic Primer. By Kent Osband and Delano Villanueva 202

Interenterprise Arrears in Transforming Economies: The Case of Romania. By Eric V. Clifton and Mohsin S. Khan 680

International Trade, Distortions, and Long-Run Economic Growth. By Jong-Wha Lee 299

Interpreting the Cyclical Behavior of Prices. By Bankim Chadha and Eswar Prasad 266

Market Discipline. By Timothy D. Lane 53

Mineral Taxation, Market Failure, and the Environment. By Timothy R. Muzondo 152

The Monetary Approach to the Exchange Rate: Rational Expectations, Long-Run Equilibrium, and Forecasting. By Ronald MacDonald and Mark P. Taylor 89

A Monetary Model of a Shortage Economy. By Shoukang Lin 369

Money and Credit Under Currency Substitution. By Carlos Alfredo Rodriguezb 414

A Note on Burden Sharing Among Creditors. By Michael Dooley, Richard Haas, and Steven Symansky 226

The Operation of the Estonian Currency Board. By Adam G.G. Bennett 451

Optimal and Sustainable Exchange Rate Regimes: A Two-Country Game-Theoretic Approach. By Masahiro Kawai 329

Output Collapse in Eastern Europe: The Role of Credit. By Guillermo A. Calvo and Fabrizio Coricelli 32

Output Fluctuations and Monetary Shocks in Colombia: Comment on Reinhart and Reinhart. By Maria E. García 871

Output Fluctuations and Monetary Shocks in Colombia: Reply to García. By Carmen M. Reinhart and Vincent R. Reinhart 876

Portfolio Performance of the SDR and Reserve Currencies: Tests Using the ARCH Methodology. By Michael G. Papaioannou and Tugrul Temei 663

A Primer on Tax Evasion. By Vito Tanzi and Parthasarathi Shome 807

Real Exchange Rate Targeting Under Imperfect Asset Substitutability, By J. Saul Lizondo 829

Risk Taking and Optimal Taxation in the Presence of Nontradable Human Capital. By Zuliu Hu 622

Skill Levels and the Cyclical Variability of Employment, Hours, and Wages. By Michael Keane and Eswar Prasad 711

Stabilization Programs and External Enforcement: Experience from the 1920s. By Julio A. Santaella 584

Tax Farming: A Radical Solution for Developing Country Tax Problems? By Peter Stella 217

Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach. By Malcolm Knight, Norman Loayza, and Delano Villanueva 512

Wage and Public Debt Indexation. By Pablo E, Guidotti 237

The Yield Curve and Real Activity. By Zuliu Hu 781

Subjects

To facilitate electronic storage and retrieval of bibliographic data, Staff Papers has adopted the subject classification scheme of the Journal of Economic Literature (Nashville, Tennessee),

C Mathematical and Quantitative Methods

C22 Time-Series Models

Portfolio Performance of the SDR and Reserve Currencies: Tests Using the ARCH Methodology. By Michael G. Papaioannou and Tugrul Temei 663

C23 Models with Panel Data

Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach. By Malcolm Knight, Norman Loayza, and Delano Viilanueva 512

C70 Game Theory and Bargaining Theory—General

Auctions: Theory and Applications. By Robert A. Feldman and Rajnish Mehra 485

D Microeconomics

D40 Market Structure and Pricing—General

Auctions: Theory and Applications. By Robert A. Feldman and Rajnish Mehra 485

D44 Auctions

Auctions: Theory and Applications. By Robert A. Feldman and Rajnish Mehra 485

D59 General Equilibrium and Disequilibrium—Other

A Monetary Model of a Shortage Economy. By Shoukang Lin 369

D60 Economic Welfare—General

Auctions: Theory and Applications, By Robert A. Feldman and Rajnish Mehra 485

E Macroeconomics and Monetary Economics

E2 Consumption, Saving, Production, Employment, and Investment

An Empirical Analysis of the Output Declines in Three Eastern European Countries. By Eduardo Borensztein, Dimitri G. Demekas, and Jonathan D. Ostry 1

E23 Production

Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology. By David T. Coe and Reza Moghadam 542

E3 Prices, Business Fluctuations, and Cycles

Output Fluctuations and Monetary Shocks in Colombia: Comment on Reinhart and Reinhart. By Maria E. García 871

Output Fluctuations and Monetary Shocks in Colombia: Reply to García. By Carmen M. Reinhart and Vincent R. Reinhart 876

E31 Price Level; Inflation; Deflation

Contracts, Credibility, and Common Knowledge: Their Influence on Inflation Convergence. By Marcus Miller and Alan Sutherland 178

Interpreting the Cyclical Behavior of Prices. By Bankim Chadha and Eswar Prasad 266

E32 Business Fluctuations; Cycles

Interpreting the Cyclical Behavior of Prices. By Bankim Chadha and Eswar Prasad 266

Skill Levels and the Cyclical Variability of Employment, Hours, and Wages. By Michael Keane and Eswar Prasad 711

The Yield Curve and Real Activity. By Zuliu Hu 781

E43 Determination of Interest Rates; Term Structure of Interest Rates

Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification. By Edward H. Gardner and William R.M, Perraudin 427

French-German Interest Rate Differentials and Time-Varying Realignment Risk. By Francesco Caramazza 567

E51 Money Supply; Credit; Money Multipliers

Interenterprise Arrears in Transforming Economies: The Case of Romania. By Eric V. Clifton and Mohsin S. Khan 680

Money and Credit Under Currency Substitution. By Carlos Alfredo Rodriguez 414

E52 Monetary Policy (Targets, Instruments, and Effects)

Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification. By Edward H. Gardner and William R.M. Perraudin 427

Independent Currency Authorities: An Analytic Primer, By Kent Osband and Delano Villanueva 202

Real Exchange Rate Targeting Under Imperfect Asset Substitutability. By J. Saul Lizondo 829

E58 Central Banks and Their Policies

Asymmetry in the ERM; A Case Study of French and German Interest Rates Before and After German Unification. By Edward H. Gardner and William R.M. Perraudin 427

E59 Monetary Policy, Central Banking, and the Supply of Money and Credit—Other

Independent Currency Authorities: An Analytic Primer. By Kent Osband and Delano Villanueva 202

E6 Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook

Fiscal Adjustment in Pakistan: Some Simulation Results. By Nadeem U. Haque and Peter J. Montiel 471

Wage and Public Debt Indexation. By Pablo E, Guidotti 237

E61 Policy Objectives; Policy Designs and Consistency; Policy Coordination

Real Exchange Rate Targeting Under Imperfect Asset Substitutability. By J. Saul Lizondo 829

Stabilization Programs and External Enforcement: Experience from the 1920s. By Julio A. Santaella 584

E62 Fiscal Policy; Public Expenditures and Finance; Taxation

Endogenous Creditor Seniority and External Debt Values. By Michael Dooley and Mark R. Stone 395

E65 Studies of Particular Policy Episodes

Interenterprise Arrears in Transforming Economies: The Case of Romania. By Eric V. Clifton and Mohsin S. Khan 680

F International Economics

F13 Commercial Policy; Protection; Promotion; Trade Negotiations

International Trade, Distortions, and Long-Run Economic Growth. By Jong-Wha Lee 299

F15 Economic Integration

Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology. By David T. Coe and Reza Moghadam 542

F3 International Finance

Foreign Exchange Markets in Russia: Understanding the Reforms. by Linda S. Goldberg 852

F31 Exchange Rates; Foreign Exchange Intervention

Asymmetry in the ERM: A Case Study of French and German nterest Rates Before and After German Unification. By Edward H. Gardner and William R.M. Perraudin 427

Contracts, Credibility, and Common Knowledge: Their Influence on Inflation Convergence. By Marcus Miller and Alan Sutherland 178

French-German Interest Rate Differentials and Time-Varying Realignment Risk. By Francesco Caramazza 567

The Monetary Approach to the Exchange Rate: Rational Expectations, Long-Run Equilibrium, and Forecasting. By Ronald MacDonald and Mark P. Taylor 89

The Operation of the Estonian Currency Board. By Adam G.G. Bennett 451

Real Exchange Rate Targeting Under Imperfect Asset Substitutability. By J. Saul Lizondo 829

F32 Current Account Adjustment; Short-term Capital Movements

Money and Credit Under Currency Substitution. By Carlos Alfredo Rodriguez 414

F33 International Monetary Arrangements and Institutions

Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification. By Edward H. Gardner and William R.M. Perraudin 427

French-German Interest Rate Differentials and Time-Varying Realignment Risk. By Francesco Caramazza 567

Optimal and Sustainable Exchange Rate Regimes: A Two-Country Game-Theoretic Approach. By Masahiro Kawai 329

Stabilization Programs and External Enforcement: Experience from the 1920s. By Julio A. Santaella 584

F34 International Lending and Debt Problems

Endogenous Creditor Seniority and External Debt Values. By Michael Dooley and Mark R. Stone 395

A Note on Burden Sharing Among Creditors. By Michael Dooley, Richard Haas, and Steven Symansky 226

F36 Financial Aspects of Economic Integration

Asymmetry in the ERM: A Case Study of French and German Interest Rates Before and After German Unification. By Edward H. Gardner and William R.M. Perraudin 427

F4 Macroeconomic Aspects of International Trade and Finance

Foreign Exchange Markets in Russia: Understanding the Reforms, By Linda S. Goldberg 852

F41 Open Economy Macroeconomics

Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors. By Guillermo A. Calvo, Leonardo Leiderman, and Carmen M. Reinhart 108

Formulating a Policy Response: Reply to Snowden. By Guillermo A. Calvo, Leonardo Leiderman, and Carmen M. Reinhart 867

Formulating a Policy Response: Comment on Calvo, Leiderman, and Reinhart. By P. Nicholas Snowden 865

Optimal and Sustainable Exchange Rate Regimes: A Two-Country Game-Theoretic Approach. By Masahiro Kawai 329

Real Exchange Rate Targeting Under Imperfect Asset Substitutability. By J. Saul Lizondo 829

Wage and Public Debt Indexation. By Pablo E. Guidotti 237

F42 International Policy Coordination

Optimal and Sustainable Exchange Rate Regimes: A Two-Country Game-Theoretic Approach. By Masahiro Kawai 329

F43 Economic Growth of Open Economies

International Trade, Distortions, and Long-Run Economic Growth. By Jong-Wha Lee 299

G Financial Economics

G1 General Financial Markets

Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors. By Guillermo A. Calvo, Leonardo Leiderman, and Carmen M. Reinhart 108

Formulating a Policy Response: Reply to Snowden. By Guillermo A. Calvo. Leonardo Leiderman, and Carmen M, Reinhart 868

Formulating a Policy Response: Comment on Calvo, Leiderman, and Rinehart. By P. Nicholas Snowden 865

Market Discipline, By Timothy D, Lane 53

G11 Portfolio Choice

Portfolio Performance of the SDR and Reserve Currencies: Tests Using the ARCH Methodology. By Michael G. Papaioannou and Tugrul Temei 663

Risk Taking and Optimal Taxation in the Presence of Nontradable Human Capital. By Zuliu Hu 622

G12 Asset Pricing

The Yield Curve and Real Activity. By Zuliu Hu 781

H Public Economics

H2 Taxation and Subsidies

The Budget Deficit in Transition: A Cautionary Note. By Vito Tanzi 697

H21 Efficiency; Optimal Taxation

Risk Taking and Optimal Taxation in the Presence of Nontradable Human Capital. By Zuliu Hu 622

H23 Externalities; Redistributive Effects

Mineral Taxation, Market Failure, and the Environment. By Timothy R. Muzondo 152

H24 Income and Other Nonbusiness Taxes

Cash-Flow Tax. By Parthasarathi Shome and Christian Schutte 638

H25 Business Taxes

Cash-Flow Tax. By Parthasarathi Shome and Christian Schutte 638

H26 Tax Evasion

A Primer on Tax Evasion. By Vito Tanzi and Parthasarathi Shome 807

H3 Fiscal Policies and Behavior of Economic Agents

The Budget Deficit in Transition: A Cautionary Note. By Vito Tanzi 697

Fiscal Adjustment in Pakistan: Some Simulation Results. By Nadeem U. Haque and Peter J. Montiel 471

Market Discipline. By Timothy D. Lane 53

H5 National Government Expenditures and Related Policies

The Budget Deficit in Transition: A Cautionary Note, By Vito Tanzi 697

H6 National Budget, Deficit, and Debt

The Budget Deficit in Transition: A Cautionary Note. By Vito Tanzi 697

H86 Governmental Property

Tax Farming: A Radical Solution for Developing Country Tax Problems? By Peter Stella 217

H87 International Fiscal Issues

Cash-Flow Tax. By Parthasarathi Shome and Christian Schutte 638

J Labor and Demographic Economics

J31 Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.

Skill Levels and the Cyclical Variability of Employment, Hours, and Wages. By Michael Keane and Eswar Prasad 711

J41 Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets

Economic Restructuring, Unemployment, and Growth in a Transition Economy. By Bankim Chadha, Fabrizio Coricelli, and Kornelia Krajnyak 744

Skill Levels and the Cyclical Variability of Employment, Hours, and Wages. By Michael Keane and Eswar Prasad 711

J6 Mobility, Unemployment, and Vacancies

Economic Restructuring, Unemployment, and Growth in a Transition Economy. By Bankim Chadha, Fabrizio Coricelli, and Kornelia Krajnyak 744

K Law and Economics

K42 Illegal Behavior and the Enforcement of Law

Tax Farming: A Radical Solution for Developing Country Tax Problems? By Peter Stella 217

L Industrial Organization

L33 Boundaries of Public and Private Enterprise; Privatization; Contracting Out

Tax Farming: A Radical Solution for Developing Country Tax Problems? By Peter Stella 217

N Economic History

N14 Europe: 1913–71

Stabilization Programs and External Enforcement: Experience from the 1920s. By Julio A. Santaella 584

N2 Financial Markets and Institutions

Foreign Exchange Markets in Russia: Understanding the Reforms. By Linda S. Goldberg 852

O Economic Development, Technological Change, and Growth

O11 Macroeconomic Analyses of Economic Development

Economic Restructuring, Unemployment, and Growth in a Transition Economy. By Bankim Chadha, Fabrizio Coricelli, and Kornelia Krajnyak 744

Fiscal Adjustment in Pakistan: Some Simulation Results. By Nadeem U. Haque and Peter J. Montiel 471

O32 Management of Technological Innovation and R&D

Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology. By David T. Coe and Reza Moghadam 542

O41 One, Two, and Multisector Growth Models

International Trade, Distortions, and Long-Run Economic Growth. By Jong-Wha Lee 299

Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach. By Malcolm Knight, Norman Loayza, and Delano Villanueva 512

O5 Economywide Country Studies

An Empirical Analysis of the Output Declines in Three Eastern European Countries. By Eduardo Borensztein, Dimitri G. Demekas, and Jonathan D. Ostry 1

O52 Europe

Capital and Trade as Engines of Growth in France: An Application of Johansen’s Cointegration Methodology. By David T. Coe and Reza Moghadam 542

O53 Asia including Middle East

Fiscal Adjustment in Pakistan: Some Simulation Results. By Nadeem U. Haque and Peter J. Montiel 471

P Economic Systems

P2 Socialist Systems

The Budget Deficit in Transition: A Cautionary Note. By Vito Tanzi 697

Economic Restructuring, Unemployment, and Growth in a Transition Economy. By Bankim Chadha, Fabrizio Coricelli, and Komelia Krajnyak 744

P20 Socialist Systems—General

Output Collapse in Eastern Europe: The Role of Credit. By Guillermo A. Calvo and Fabrizio Coricelli 32

P21 Planning and Coordination of Socialist Economies

Auctions: Theory and Applications. By Robert A. Feldman and Rajnish Mehra 485

P22 Prices

A Monetary Model of a Shortage Economy. By Shoukang Lin 369

P23 Markets

Auctions: Theory and Applications. By Robert A. Feldman and Rajnish Mehra 485

Monetary Model of a Shortage Economy. By Shoukang Lin 369

P3 Socialist Institutions

The Budget Deficit in Transition: A Cautionary Note, By Vito Tanzi 697

P5 Comparative Economic Systems

An Empirical Analysis of the Output Declines in Three Eastern European Countries. By Eduardo Borensztein, Dimitri G. Demekas, and Jonathan D. Ostry 1

Foreign Exchange Markets in Russia: Understanding the Reforms. By Linda S. Goldberg 852

P50 Comparative Economic Systems—General

Auctions: Theory and Applications. By Robert A, Feldman and Rajnish Mehra 485

In statistical matter throughout this issue,

  • dots (…) indicate that data are not available;

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  • a single dot (.) indicates decimals;

  • a comma (,) separates thousands and millions;

  • “billion” means a thousand million, and “trillion” means a thousand billion;

  • a short dash (—) is used between years or months (for example, 1991–93 or January-October) to indicate a total of the years or months inclusive of the beginning and ending years or months;

  • a stroke (/) is used between years (for example, 1992/93) to indicate a fiscal year or a crop year;

  • a colon (:) is used between a year and the number indicating a quarter within that year (for example, 1993:4);

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