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This paper reexamines the empirical relation between inflation and interest rates concentrating on the tax effect proposed by Darby and Feldstein. Using the random walk intercept model, relative responses of taxable yields and tax-exempt yields to expected inflation are estimated. The results show that for the sample period 1953–1982, the nominal yields on Treasury bills rise at a rate greater than one-for-one with expected inflation, while the nominal yields on default-free municipal bonds rise approximately one-for-one with expected inflation. Thus, the tax-adjusted Fisher hypothesis by Darby and Feldstein is empirically supported. The components of Treasury bills are also extracted and their variances are compared. It is shown that variation of expected inflation is not overwhelmingly larger than that of the after-tax real rate. Therefore, on an after-tax basis, changes in the real rate explain a substantial portion of changes in the nominal rate of interest.
In this article, Dr. Pierenkemper investigates a new occupational category—the industrial white collar employee—in the late-nineteenth century Krupp Steel Casting Works in Essen, Germany. In contrast to previous historians, Pierenkemper demonstrates that white collar employees were far from homogeneous: differing among themselves, they were also largely isolated from the labor market as a whole. He concludes that widespread intrafirm occupational mobility underlay this distinctive work environment, and suggests that management may have consciously encouraged such moving about to segment its work force.
In the late eighteenth century, the competitive position of French industry was seriously undermined by the sudden influx of inexpensive English goods—the products of the First Industrial Revolution. Responding to this challenge, French government officials established trade fairs—such as the Paris Industrial Exposition of 1806—to promote the introduction of commercially viable technologies. In this article, Professor Hafter takes a close look at this 1806 exposition. She discovers that, in addition to praising English-style machinery, the exposition's judges also praised traditional French production methods—a choice, she suggests, that reflected the uneven pattern of French industrialization.