The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Apr, 1957, Volume 25, Issue 2
https://doi.org/0012-9682(195704)25:2<314:EAMWUB>2.0.CO;2-J
p. 314-324
Hans Brems
The present paper is an attempt to relate the theory of wages, the theory of fiscal policy, and the theory of international trade to one another. The purpose is to illuminate the dilemma faced by certain Western European economies subjected to a threefold pressure from powerful labor unions asking for higher wages, from the Organization for European Economic Cooperation asking for freer trade, and from international competition. The medium is a simplified model marrying the elasticity and the absorption approaches to international trade theory and assuming that fiscal policy is successfully applied to keep the balance of trade equalling zero. The system of equations is solved for domestic output to which domestic employment is assumed to be in proportion. The effect upon the solution of manipulating domestic factor prices is determined. Available empirical measurements of demand elasticities are applied to the solution.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
