Economics for an Imperfect World: Essays in Honor of Joseph E. Stiglitz

Introduction......Page 10
1 Joseph E. Stiglitz and Economics for an Imperfect World......Page 12
I Imperfect Information......Page 18
2 A Small Pearl for Doctor Stiglitz’s Sixtieth Birthday: When Risk Averters Positively Relish ‘‘Excess Volatility’’......Page 20
3 On the Role of Good Faith in Insurance Contracting......Page 26
4 Markets under Stress: The Case of Extreme Event Insurance......Page 44
5 Per-Mile Premiums for Auto Insurance......Page 62
6 Capital Adequacy Regulation: In Search of a Rationale......Page 92
7 Learning Revisited......Page 120
8 Regulating Nonlinear Environmental Systems under Knightian Uncertainty......Page 136
9 Conflicting Preferences and Voluntary Restrictions on Choices......Page 154
10 Punctuality: A Cultural Trait as Equilibrium......Page 172
11 A Few Righteous Men: Imperfect Information, Quit-for-Tat, and Critical Mass in the Dynamics of Cooperation......Page 192
12 Market Structure, Organizational Structure, and R&D Diversity......Page 204
13 Patent Oppositions......Page 230
14 The Economics of Vertical Restraints......Page 256
II Macroeconomics, Public Economics, and Development......Page 278
15 Stumbling Toward a Macroeconomics of the Medium Run......Page 280
16 Waiting for Work......Page 292
17 Welfare Economics in Imperfect Economies......Page 308
18 Optimality or Sustainability?......Page 340
19 Labor Market Flexibility and the Welfare State......Page 358
20 The Fiscal Politics of Big Governments: Do Coalitions Matter?......Page 376
21 Indirect Taxation and Redistribution: The Scope of the Atkinson-Stiglitz Theorem......Page 396
22 Optimum Income Taxation When Earnings Are Imperfectly Correlated with Productivity......Page 414
23 Can Government Collect Resources without Hurting Investors? Taxation of Returns from Assets......Page 428
24 Reforming the Taxation of Human Capital: A Modest Proposal for Promoting Economic Growth......Page 448
25 Births, Recoveries, Vaccinations, and Externalities......Page 478
26 The Road Less Traveled: Oligopoly and Competition Policy in General Equilibrium......Page 494
27 Trade, Geography, and Mmonopolistic Competition: Theory and an Application to Spatial Inequalities in Developing Countries......Page 510
28 Public Policy for Growth and Poverty Reduction......Page 528
29 Risk, Reform, and Privatization......Page 544
30 Can Privatization Come Too Soon? Politics after the Big Bang in Post- Communist Societies......Page 558
Appendix......Page 576
31 Information and the Change in the Paradigm in Economics......Page 578
32 Joseph E. Stiglitz Bibliography......Page 650
Index......Page 692