Further Evidence Concerning Expense Preference and the Fed
检验了1954-1989年美联储是否存在费用偏好行为，发现数据不支持柯布-道格拉斯生产结构假设，在更灵活的生产技术下，美联储并未表现出费用偏好。
This paper presents further evidence on the existence of expense-preference behavior toward labor in the Federal Reserve System over the period 1954-89. I expand on a model of Fed behavior presented in Boyes, Mounts, and Sowell (1988) (hereafter BMS). BMS's results suggested that the Fed indulged in expense preference. However, one of the assumptions of their model was that the Fed uses a Cobb-Douglas production structure. This paper shows that the data reject the hypothesis that the Fed uses a Cobb-Douglas production structure. Further analysis using the test developed in Mester (1989), which permits a less restrictive production technology, suggests that the Fed did not indulge in expense-preference behavior over the sample period. Copyright 1994 by Ohio State University Press.