Roger Nils Folsom

Note: * Indicates a refereed publication.

ECONOMIC THEORY AND MATHEMATICAL ECONOMICS

“Non-Market-Clearing Macroeconomic Models: Reformulation and Synthesis.” An attempt to synthesize and generalize discrete and continuous time stock-flow disequilibrium models, including both end-of-period and beginning-of-period delivery conventions as special cases. A very long term project, in process.

“Lancaster’s Qualitative Calculus Revisited.” A long term project, in process.

“A Model of Governmental Growth.” With Rodolfo Alejo Gonzalez. In process.

“Another Look at Lloyd Metzler’s ‘Wealth, Saving, and the Rate of Interest’.” With Rodolfo Alejo Gonzalez. In process.

“Foreign Trade Deficits, Investment Surpluses, and Exchange Rates.” With Rodolfo Alejo Gonzalez. In process.

“Dimensions and Economics: Some Answers.” (A critique of Barnett, QJAE 6 (3, Fall 2003). With Rodolfo Alejo Gonzalez. Submitted for publication.

“Teaching How Banks Create Money: Not Starting At The Wrong End.” To be submitted for publication. Revised from presentations at the following conferences:

The Midwest Economics Association’s Sixty-Eighth Annual Meeting, 18-21 March 2004 (Westin Michigan Avenue Hotel, Chicago, Illinois);

Robert Morris University and McGraw-Hill/Irwin’s Fifteenth Annual Teaching Economics: Instruction and Classroom-based Research conference, 12-14 February 2004 (Moon Township, Pennsylvania); and

Idaho State University’s Fifth Annual Economics and the Classroom conference, 11-13 September 2003 (Jackson Lake Lodge, Grand Teton National Park, Moran, Wyoming).

“Microeconomics’ Teaching Vocabulary: Confusions, Ambiguities, And Inefficiencies.” To be submitted for publication. Revised from presentations at the following conferences:

Idaho State University’s Fifth Annual Economics and the Classroom conference, 11-13 September 2003 (Jackson Lake Lodge, Grand Teton National Park, Moran, Wyoming); and

Robert Morris University and McGraw-Hill/Irwin’s Fourteenth Annual Teaching Economics: Instruction and Classroom-based Research conference, 13-15 February 2003.

* “The Feasibility of a Desirable Minimal State.” With, and initiated by, Rodolfo Alejo Gonzalez. Public Choice, 98 (March 1999): 447-464. Abstracted in the Journal of Economic Literature, 37 (September 1999): 1463, H11.

* “Portfolio Adjustments and the Demand for Money in the Face of Expected Inflation: An Uncertainties Perspective.” Journal of Post Keynesian Economics, 13 (Winter 1990-91): 199-209. Abstracted in the Journal of Economic Literature, 24 (June 1991): 891.

“The U.S. Economy, 1871-1899 and 1961-1989: A Dual Equations of Exchange Comparison.” In process.

* “Extending the Equation of Exchange: Dual Equations, for Output and Input.” Economic Inquiry, 29 (January 1991): 194-201. This paper introduces a much longer unpublished essay, “Dual Equations of Exchange as a Description of the Circular Flow of Economic Activity,” Revised March 1996.

“Can Court Decisions in Tort Litigation Induce Pareto Efficient Asset Holding, Care Taking, and Legal Effort? A Theoretical Analysis.” An expansion and generalization of work by David Haddock and Christopher Curran of Emory University. Presented to the Southwestern Economics Association Conference, March 1985, Houston, Texas, and to the Western Economic Association Annual Meeting, July 1985, Anaheim, California.

* “Bureaucracy, Publicness, and Local Government Expenditures Revisited: Comment.” Primarily by Rodolfo Alejo Gonzalez and Steven L. Mehay. Public Choice 62 (1989): 71-77.

* Mathematical Appendix (comparing characteristics of quadratic functions that have either log or non-log dependent variables) in John Paul Leigh’s “Estimates of the Value of Accident Avoidance At the Job Depend on the Concavity of the Equalizing Differences Curve.” Quarterly Review of Economics and Business 24 (Spring 1984): 56-66, particularly 63-65. Abstracted in the Journal of Economic Literature.

“Advertising as a Barrier to Entry.” With the assistance of Ann Arlene Marquiss Folsom and Janet Anaya. Presented to the Eighth Annual Conference of the Eastern Economic Association, April 1982, Washington, D.C., and to the Sixteenth International Conference of the Atlantic Economic Society, 9 October 1983. Abstracted in the Atlantic Economic Journal 11 (March 1984).

* “Advertising and Brand Loyalty as Barriers to Entry.” With Douglas F. Greer, and with the assistance of Janet Anaya and Ann Arlene Marquiss Folsom. In John M. Connor and Ronald W. Ward, editors, Advertising and the Food System. Proceedings of a symposium sponsored by [U.S. Department of Agriculture] North Central Regional Research Project NC-117 (headquartered at the Department of Agricultural Economics, University of Wisconsin, Madison, Wisconsin), 6-7 November 1980, Airlie, Virginia. Madison: Project NC-117 Monograph 14, University of Wisconsin, September 1983.

“Conjecture on Ranks of Derived Reduced Adjoint Polynomial Matrices.” Presented to the Fifty-Fifth Annual Conference of the Western Economic Association, 19 June 1980, San Diego, California.

* “Stability Conditions for Linear Constant Coefficient Difference Equations in Generalized Differenced Form.” With Dan C. Boger and Harry C. Mullikin. Econometrica 44 (May 1976): 575-591. Abstracted in the Journal of Economic Literature 15 (June 1977): 790. A more detailed version was presented to the December 1973 Econometric Society meetings in New York City.

“Forward versus Back Difference versus Differential Equation Dynamics: Second Order ‘Harrod-Domar’ Models.” Presented to the Forty-Fourth Annual Conference of the Western Economic Association, l6 August 1973, at The Claremont Colleges, Claremont, California.

* “On Consolidating (Forward or Back) Difference and Differential Equation Versions of Dynamic Economic Processes: First Order ‘Harrod-Domar’ Models.” American Economist 18 (Fall 1974): 96-102.

“Marx, Keynes, and the Business Cycle,” a videotaped dialogue among Roger Nils Folsom, Douglas Korty, John Lindauer, Jack Michaelsen, and Lorie Tarshis. Presented to the Eighty-Third Annual Meeting of the American Economic Association, Detroit, Michigan, December 1970. For the producer’s discussion of this videotape project, see Barry Castro, “Videotaped Dialogues in Economics,” American Economic Review 61 (May 1971): 256-259; for comments by Campbell R. McConnell, see 264-265.

“Monetary Change and Velocity in a Keynesian Model.” With Frederick N. Jerding. Presented to the Forty-Fifth Annual Conference of the Western Economic Association, 27 August 1970, University of California at Davis. Abstracted In the Western Economic Journal 8 (September 1970): 294.

* “Real and Money Consumption as Functions of Money Income.” Western Economic Journal 7 (March 1969): 96-99. Abstracted in the Journal of Economic Literature 7 (September 1969): 1000-1001. A longer version (same title), including an alternative derivation using a directional derivative’s inverse, is available.

PUBLIC POLICY Including PUBLIC FINANCE

* “U.S. Foreign Trade Deficits, Investment Surpluses, and `Debtor Nation Status: A Different Perspective.” With Rodolfo Alejo Gonzalez. National Social Science Journal, Vol. 2, No. 6 (1988-1989 West Coast Edition, which appeared in early 1992), pp. 19-40. An expansion of the paper immediately below.

“Foreign Trade Deficits Aren’t a Problem.” With Rodolfo Alejo Gonzalez. The Freeman 40 (August 1990): 310-315. Earlier versions were presented at the Western Economic Meetings at San Diego, California, June 1990, and at the National Social Science Association convention at Reno, Nevada, March 1989. The NSSA conference paper is in the proceedings, Social Science Perspectives Journal, 3 (1989, No. 6): 60-74.

“Why is the Dollar Sinking in Value?,” and “Will the Dollar be Boosted?” Letters to The Wall Street Journal, 15 December 1988 and 13 January 1989, respectively. (See also “Evaluation of the Dollar’s Decline,” WSJ letter by Stuart R. Lynn, 3 January 1989.)

“Responding to the Oil Shock: the U.S. Economy since 1973.” With Rodolfo Alejo Gonzalez. The Freeman 39 (February 1989) 62-65. Presented to the Southwestern Economic Association Annual Conference, 31 March 1989, Little Rock, Arkansas, and abstracted in the Southwestern Journal of Economic Abstracts 10 (1989): 49-50.

“Military Personnel Without Conscription.” with the assistance of Ann Arlene Marquiss Folsom. Chapter 8 in Robert W Poole, Jr., editor, Defending a Free Society, sponsored by the Reason Foundation. New York: Lexington Books, 1983. (A condensation of the paper immediately below.)

“Effective Military Forces — Without Conscription.” with the assistance of Ann Arlene Marquiss Folsom. Unpublished, January 1983, revised August 1983.

* “Can Conscription Work?” With the assistance of Ann Arlene Marquiss Folsom. Cato Institute Policy Analysis, May 1981. (A more statistically detailed version, “The Case Against Conscription,” was the initial foundation for the paper immediately above.)

* “A Generalized Median Voter Model of School District Spending.” With R. Bruce Billings. Western Tax Review 2 (January 1981): 187-199. Presented to the Western Tax Association’s Third Annual Conference on Public Finance, l9 June 1980, San Diego, California.

* “Voter Perception of Property Tax Incidence as Revealed by School Expenditure Decisions,” with R. Bruce Billings. National Tax Journal 33 (December 1980): 459-471. Abstracted in the Journal of Economic Literature l9 (September 1981): 1424-1425.

* “Marginal Effective Income Tax Rates with Averaged Capital Gains and Losses.” With Robert J. Rubin. Public Finance 35 (1980): 259-268. Abstracted in the Journal of Economic Literature 19 (June 1981): 906.

* “Averaging Capital Gains and Losses for Income Tax Purposes.” With Robert J. Rubin, Western Tax Review 1 (May 1980): 128-151. Presented to the Western Tax Association’s Second Annual Conference on Public Finance, 16 June 1979, at Reno, Nevada.

* “Neutral Capital Gains Taxation Under Inflation and Tax Deferral.” (A critique of Brinner, NTJ 1973), National Tax Journal 3l (December 1978): 401-405. Presented to the Western Tax Association’s First Annual Conference on Public Finance, 17 June 1978, San Francisco, California, and abstracted in the Western Tax Review 1 (June 1979).

* “The Case for Heavier Capital Gains Taxation.” Naval Postgraduate School technical report NPS-62F19O6lA. Presented to the Forty-Fourth Annual Conference of the Western Economic Association, 21 August 1969, California State College at Long Beach. Abstracted in the Western Economic Journal 7 (September 1969): 268.

* “Misleading Aggregation [of Government Purchases and Transfer Payments] in the New Federal Budget.” The Federal Accountant 17 (December 1968): 91-95.

“The Effect of Capital Gains Taxes upon Securities Markets: A Critical Review of the Theoretical Literature.” Presented to the Forty-Third Annual Conference of the Western Economic Association, 22 August 1968, Oregon State University, Corvallis. Abstracted in the Western Economic Journal 6 (September 1968): 336.

* “The Effect of Capital Gains Taxes upon Securities Markets, Gains Realizations, and Tax Revenues — A Comment upon one of Harley H. Hinrichs’ Empirical Studies” (NTJ 1963). National Tax Journal 2l (June 1968): 205-209.

* “Capital Gains, Consumption, Capital Gains Taxes and the Supply of Saving.” (A critique of Wallich, NTJ 1965). National Tax Journal 19 (December 1966): 434-437.

PH.D. DISSERTATION, M.A. THESIS, and TAX STUDY

Ph.D. Dissertation: Linear Constant Coefficient Difference or Differential Equations for Economic Models. Claremont Graduate School, cl974. Pp. xxxiv, 725.

Committee: David J. Smyth, Professor of Economics; Kenneth L. Cooke, Professor of Mathematics; Theodore Tsukahara, Jr., Assistant Professor of Economics.

This work examines quite generally specified single Nth order, and systems of S simultaneous Nth order, linear constant coefficient difference and differential equations used in modeling dynamic economic processes. While codifying available results on such equations and their solutions, it shows that the common practice of separately developing analogous difference and differential equation versions of the same dynamic economic process is unnecessary and redundant.

Specify the model in differenced rather than dated form. A generalized difference operator,

covers forward (<=1), central (<=1/2), and back (<=0) differences as special cases.

Given a continuous domain generalized difference operator equation, solution, and “shifted differences” boundary conditions (more general than the usual initial conditions), written in an appropriate notation, the analogous differential equation results “fall out” by taking limits, in either rectangular or polar coordinates. (A special discussion shows the limit relationships between discrete and continuous distributed lags.) But differencing direction — forward or back — is very important for solution behavior: forward difference equation stability is more, and back difference equation stability is less, stringent than differential equation stability.

For systems of S simultaneous Nth order equations, this work discusses polynomial matrices, equivalence transformations to the Smith canonical form, derivatives of reduced adjoint matrices, and a conjecture about the ranks of such matrices. Then it solves such systems not only by converting to a new system of first order equations, but also by two alternative approaches related to each other: equivalence transformations, and columns from derived reduced adjoint matrices (assuming the conjecture valid). These solutions allow for multiple roots in full generality. Although multiple roots cannot affect the long-run asymptotic stability of a difference or differential equation solution, they do cause short-run behavior which cannot arise if all roots are distinct. Thus distributed-lag models frequently impose multiple roots so that the lag takes a “humped” form.

Combined “Walrasian” price and “Marshallian” quantity adjustment demand supply models of stock-flow markets, incorporating a wide variety of special cases, illustrate the applicability of some of these results and notation to economic analysis.

M.A. Thesis: The Full Inclusion of Capital Gains and Losses in the Taxable Income of Individuals. Claremont Graduate School 1964. 178 pp.

Committee: Professors Douglas H. Eldridge, Harold F. McC1elland, Seymour Friedland.

A survey of the issues in the case for taxing capital gains as ordinary income under the federal personal income tax: equity considerations, the effect of special treatment of capital gains and losses on tax law complexity, tax law provisions required to tax capital gains more heavily, and financial and physical capital mobility effects of heavier capital gains taxation.

Nebraska Tax Study: For the results of my primary responsibility (to design, and estimate potential revenue from, state income and sales taxes proposed as alternatives to the state property tax), while Research Associate, Nebraska Legislative Council Tax Survey Staff, see:

Harold F. McClelland, Nebraska State and Local Finance (Lincoln, Nebraska: For an Official Report of the Legislative Council to the 1963 Nebraska Legislature, by the Legislative Council Committee on Taxation, Kenneth L. Bowen, Chairman. November 1962, 435 pp.), “Alternative Revenue Sources,” section III, chapters 11-14, pp. 237-408.

UNPUBLISHED TEACHING MATERIALS

Supplementary Materials for Principles of Macroeconomics, 1995.

Supplementary Materials for Principles of Microeconomics, 1996.

Supplementary Materials for Macroeconomic Analysis, 1997.

Notes and Exercises in Managerial Economics. c1982.

“Dual Equations of Exchange as a Description of the Circular Flow of Economic Activity.” 1990, revised 1994.

“The Economic Role of Government in a Free Society: A Personal Position Paper.” Edited by Ann Arlene Marquiss Folsom. c1986, revised 1994.

With Frank I. Jewett, “A Note on Functions and Graphs and their Use in Macroeconomics.” 1966, revised 1969.

“Gold, Banks, and Money: A Fable.” With Ann Arlene Marquiss Folsom. 1960, mildly revised in 1977.

REFEREEING AND REVIEWING

Articles Refereed for

Journal of Macroeconomics (1994, 1992, 1990, 1988, 1987, 1986, 1979)

Economic Inquiry (1994, 1987)

National Tax Journal (1987, 1986)

Journal of Economics and Business, Temple University (1983)

Journal of Economic Issues (1981)

Eastern Economic Journal (1978)

Public Finance Quarterly (1976, 1975)

Economic Studies, University of Strathclyde (1969)

Books Reviewed for

South Western Publishing (Mathematical Approach to Economic Analysis, 1998)

South Western Publishing (Prospectus: Economic Principles, Economic Policy, 1994)

W.W. Norton (Mathematics for Economists, 1990)

Dryden Press (Prospectus: Intermediate Macroeconomics, 1989)

Academic Press (Mathematics for Economists, 1985)

Addison Wesley (Managerial Economics, 1980)