Essays in Honor of Joseph E. Stiglitz

  Contents
    Introduction       1
1   Joseph E. Stiglitz and Economics for an Imperfect World               3
    Richard Arnott, Bruce Greenwald, Ravi Kanbur, and Barry
    Nalebuff
I   Imperfect Information          9
2   A Small Pearl for Doctor Stiglitz’s Sixtieth Birthday: When Risk
    Averters Positively Relish ‘‘Excess Volatility’’        11
    Paul A. Samuelson
3   On the Role of Good Faith in Insurance Contracting              17
    Avinash Dixit and Pierre Picard
4   Markets under Stress: The Case of Extreme Event
    Insurance      35
    Dwight Jaffee and Thomas Russell
5   Per-Mile Premiums for Auto Insurance             53
    Aaron S. Edlin
6   Capital Adequacy Regulation: In Search of a Rationale               83
    Franklin Allen and Douglas Gale
7   Learning Revisited        111
    Margaret Bray
8   Regulating Nonlinear Environmental Systems under Knightian
    Uncertainty      127
    William Brock and Anastasios Xepapadeas
9   Conflicting Preferences and Voluntary Restrictions on
    Choices      145
    Jacob Glazer and Andrew Weiss
10 Punctuality: A Cultural Trait as Equilibrium           163
                           ¨
    Kaushik Basu and Jorgen W. Weibull
11 A Few Righteous Men: Imperfect Information, Quit-for-Tat, and
    Critical Mass in the Dynamics of Cooperation            183
    Serge Moresi and Steven Salop
12 Market Structure, Organizational Structure, and R&D
    Diversity     195
    Joseph Farrell, Richard J. Gilbert, and Michael L. Katz
13 Patent Oppositions        221
    Jonathan Levin and Richard Levin
14 The Economics of Vertical Restraints          247
    Patrick Rey
II  Macroeconomics, Public Economics, and Development                    269
15 Stumbling Toward a Macroeconomics of the Medium Run                    271
    Robert M. Solow
16 Waiting for Work        283
    George A. Akerlof, Andrew K. Rose, and Janet L. Yellen
17 Welfare Economics in Imperfect Economies              299
                                                         ¨       ¨
    Kenneth Arrow, Partha Dasgupta and Karl-Goran Maler
18 Optimality or Sustainability?        331
    Geoffrey Heal
19 Labor Market Flexibility and the Welfare State           349
    A. B. Atkinson
20 The Fiscal Politics of Big Governments: Do Coalitions
    Matter?     367
    Luisa Lambertini and Costas Azariadis
21 Indirect Taxation and Redistribution: The Scope of the Atkinson-
    Stiglitz Theorem      387
    Robin Boadway and Pierre Pestieau
22 Optimum Income Taxation When Earnings Are Imperfectly
    Correlated with Productivity         405
    David L. Bevan
23 Can Government Collect Resources without Hurting Investors?
    Taxation of Returns from Assets         419
    Raaj Sah and Kenji Wada
24 Reforming the Taxation of Human Capital: A Modest Proposal
    for Promoting Economic Growth            439
    Paul A. David
25 Birth, Recoveries, Vaccinations, and Externalities         469
    Mark Gersovitz
26 The Road Less Traveled: Oligopoly and Competition Policy in
    General Equilibrium        485
    J. Peter Neary
27 Trade, Geography, and Monopolistic Competition: Theory and
    an Application to Spatial Inequalities in Developing
    Countries      501
    Anthony J. Venables
28 Public Policy for Growth and Poverty Reduction             519
    Nicholas Stern
29 Risk, Reform, and Privatization        535
    David M. Newbery
30 Can Privatization Come Too Soon? Politics after the Big Bang in
    Post-Communist Societies         549
    Karla Hoff
    Appendix       567
31 Information and the Change in the Paradigm in
    Economics       569
    Joseph E. Stiglitz
32 Joseph E. Stiglitz Bibliography       641
    Index     683