Education
Bachelor of Arts Dartmouth College, 1967. Master of Arts, Doctor of Philosophy University Chicago, 1968, 1970.
Bachelor of Arts Dartmouth College, 1967. Master of Arts, Doctor of Philosophy University Chicago, 1968, 1970.
Assistant Professor of Economics, Ohio State University, 1970-1973. Visiting Assistant Professor of Economics, Association Professor of Economics, University of California, Los Angeles, Calif., United States of America, 1972-1973, 1973-1978. Harry Scherman Research Fellow, National Bureau of Economie Research, New York, New York, United States of America, New York, 1974-1975.
Visiting Fellow, Hoover Institute, Institution, Stanford University,
1977-1978. Professor of Economics, University of California, Los Angeles, Calif., United States of America, United States of America, since 1978. Book Review Editor, Journal of Money, Credit and Banking, 1973-1974.
Editor, J. International Money and Finance, since 1981. Editorial Board, American Economic Review,
1983-.
My thesis (Article No. 1 above) developed two principal concepts: the shock-absorber money demand and investment of transitory income in consumers’ durable goods. The latter idea led to my deriving Friedman’s permanent income estimator from a perpetual inventory of wealth and correcting previous upward-biassed estimates of its current income weight.
An integrated model of consumer expenditures — as opposed to consumption — culminated this line of research (Article No. 7 above). Although shock-absorber money demand was featured in the dynamic-adjustment model introduced in my three textbooks, only in 1976 did I begin work with Carr on its simplified specification.
Anomalies frequently reflect measurement without theory. So I showed that the post-1933 ‘counterexample’ to the natural-rate hypothesis arose from counting WPA (Works Project Administration) workers as unemployed (Article No.
4 above). In a series of papers, the 1971-1974 price controls were shown to systematically bias both price indices and deflated variables. The post-1965 productivity slowdown proved explicable when the effects of age, sex, education and immigration on labour input are computed.
During 1977-1981 I wrote the papers included in The International Transmission of Inflation. These specified, estimated and simulated the quarterly Mark III International Transmission
Model for eight countries and demonstrated that United States monetary policy was the major independent cause of the 1970s world inflation, that both goods and assets are imperfect substitutes internationally, and that nonreserve countries exercised short-run money control to a degree which ultimately destroyed the Bretton Woods System.
Beside these major themes, I developed the tax or ‘Darby Effect’ of inflation on interest rates (Article No.
3 above), with Kami analysed the market structures of ‘credence goods’ industries (No. 2 above), studied the formation of economically rational expectations (No. 6 above) and demonstrated in my social security monograph that ‘bequest assets’ dwarf ‘life cycle’ assets in the United States.