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Europe travel, travel in europe, europe travel guide, europe travel stories and travel advice on Seniority.co.uk Main Directory Entertainment Fun & Games Health Home & Hobbies Money News & Tech Shopping Sport Travel Travel Africa \ Americas \ Asia \ Europe \ Other \ Money Conversion \ Advertise With Us Europe travel, travel in europe Europe travel guides to help you plan your travel in Europe: | View All Europe Travel Articles | Recommended Europe Travel Websites Previous Contributions: -- Select previous Contribution -- LATEST CONTRIBUTION ---------------------------------------- Places to Visit in Southeast Spain - Seb Jay PREVIOUS CONTRIBUTIONS ---------------------------------------------- Stockholm A Great Destination That Is Kind To Your Budget - Marc A. De Jong Frankfurt Germany - 12 Insider Tips - Marcus Hochstadt Holiday in Portugal - Part 4 - Roy Stephens Holiday in Portugal - Part 3 - Roy Stephens Holiday in Portugal - Part 2 - Roy Stephens Holiday in Portugal - Part 1 - Roy Stephens Roman Holiday - Lyndon Travellers Tales - Dorothy Wharton A short break in Lucerne - Grahame Stovold Monster of the Monastery - Liana Metal Trip to Norway, Part 1 - Roxanne Johnson Trip to Norway, Part 2 - Roxanne Johnson Trip to Norway, Part 3 - Roxanne Johnson Trip to Norway, Part 4 - Roxanne Johnson Trip to Norway, Part 5 - Roxanne Johnson Italian Lakes - Frank Brown Russia - a New Look, Part 1 - Harlan Hague Russia - a New Look, Part 2 - Harlan Hague Russia - a New Look, Part 3 - Harlan Hague Russia - a New Look, Part 4 - Harlan Hague Russia - a New Look, Part 5 - Harlan Hague Russia - a New Look, Part 6 - Harlan Hague Russia - a New Look, Part 7 - Harlan Hague Russia - a New Look, Part 8 - Harlan Hague Russia - a New Look, Part 9 - Harlan Hague My trips to London - Jean Ward Cruising - Sylvia Williams Exploring Medieval Towns - Arthur and Elisabeth Jordan From Vienna to Dublin - Christian Wolf Iceland - Land of Contrasts - Leiah St. Peter - John Burkholder Ballooning in Switzerland, Part 1 - Helene Ballooning in Switzerland, Part 2 - Helene Millennium Wedding and Holiday in France, Part 1 - Joy Robinson Millennium Wedding and Holiday in France, Part 2 - Joy Robinson Manchester - the Other City - Pat Farley The City of York - Liz Ross Bamberg - Hidden Jewel - Anne Holder Nuremberg - the Heart of Europe - Frances Evans Voyage of Discovery - James Carron Greek Islands - Jack Burgess Short Break in Amsterdam - James Carron Fairy Flags and the Isle of Skye - Marlene Graham Reflections on Malta - John Covington View List "Places to Visit in Southeast Spain" by Seb Jay Southeast Spain along the Costa de Almeria is an unspoilt paradise. A world away from the high-rise hotel blocks and apartments that are associated with some other coastal areas of Spain, this Costa is subdued and altogether much more inviting. Mile upon mile of sandy beach stretches out along the coastline, truncated ever so often by headlands that crash out into the sea. For discerning families looking for a quiet Spanish holiday getaway, the Costa Almeria is the place to go. Beyond the beaches There are a wide variety of places to visit that are within a short drive of the Costa de Almeria coastline. Here are some of the best… Tabernas - Home to the 'Westerns' of the 1960s and 1970s, Tabernas is formed of desert-like rocky outcrops and canyons that have played host to some of the most memorable movies of this era. Clint Eastwood's A Fist Full of Dollars, A Few Dollars More and The Good, The Bad & The Ugly were filmed here, as was The Magnificent Seven. The movie sets (there are three 'wild west' towns to visit) are now tourist attractions, with live wild west shows, stagecoach rides and working saloon bars to enjoy. Calar Alto Observatory - The province of Almeria lays claim to one of the sunniest spots in Europe. On average there are over 3100 hours of sunshine to be had in the area each year. Taking advantage of the exceptionally clear skies in this part of Spain is the Calar Alto Observatory - a collection of five giant telescopes, three of which are operated by the Max-Plank Institute in Germany. Although chiefly a scientific research establishment the white telescope domes are a spectacular sight at any time of the day or on a moonlit night. It is also possible to arrange visits to one or more of the domes by appointment in the Sierra de los Filabres. Sierra Nevada Mountains - When on the Costa de Almeria you cannot fail to notice the magnificent peaks of the Sierra Nevada Mountains to the west of the province. Snow capped for some six months of the year, the Sierra Nevada Mountain range is an all-year-round paradise. During the summer and autumn, hiking is the #1 activity, the mountainside yielding a fine network of paths to explore. During the winter and spring the Sierra Nevada becomes Europe's most southerly ski resort. Granada - A short distance downslope from the Sierra Nevada mountains is the beautiful town of Granada and its most famous of attractions - the Alhambra. A palace residence of Moslem kings that dates back to the 9th century, the Alhambra is a fortress (alcazaba), palace (alcazar) and a city (medina) all rolled into one. Cabo de Gata-Nijar Natural Park - On the south-easternmost tip of Almeria is the 29,000-hectare Cabo de Gata-Nijar Natural Park. Pristine beaches, jagged cliffs, salt flats and lagoons await all who explore this natural paradise. With eagles, peregrines, cormorants and razorbills on show, this is the place to come if you enjoy wildlife. Getting to Southeast Spain Travelers should opt to fly into Almeria City airport on the Costa de Almeria coast. Car hire can be booked in advance for pick up from the airport upon your arrival. Visit http://www.your-carhire.com . About The Author Seb Jay is a professional writer specializing in the creation of original web content for http://www.your-carhire.com . Europe travel guides to help you plan your travel in Europe: | View All Europe Travel Articles Previous Contributions: -- Select previous Contribution -- LATEST CONTRIBUTION ---------------------------------------- Places to Visit in Southeast Spain - Seb Jay PREVIOUS CONTRIBUTIONS ---------------------------------------------- Stockholm A Great Destination That Is Kind To Your Budget - Marc A. De Jong Frankfurt Germany - 12 Insider Tips - Marcus Hochstadt Holiday in Portugal - Part 4 - Roy Stephens Holiday in Portugal - Part 3 - Roy Stephens Holiday in Portugal - Part 2 - Roy Stephens Holiday in Portugal - Part 1 - Roy Stephens Roman Holiday - Lyndon Travellers Tales - Dorothy Wharton A short break in Lucerne - Grahame Stovold Monster of the Monastery - Liana Metal Trip to Norway, Part 1 - Roxanne Johnson Trip to Norway, Part 2 - Roxanne Johnson Trip to Norway, Part 3 - Roxanne Johnson Trip to Norway, Part 4 - Roxanne Johnson Trip to Norway, Part 5 - Roxanne Johnson Italian Lakes - Frank Brown Russia - a New Look, Part 1 - Harlan Hague Russia - a New Look, Part 2 - Harlan Hague Russia - a New Look, Part 3 - Harlan Hague Russia - a New Look, Part 4 - Harlan Hague Russia - a New Look, Part 5 - Harlan Hague Russia - a New Look, Part 6 - Harlan Hague Russia - a New Look, Part 7 - Harlan Hague Russia - a New Look, Part 8 - Harlan Hague Russia - a New Look, Part 9 - Harlan Hague My trips to London - Jean Ward Cruising - Sylvia Williams Exploring Medieval Towns - Arthur and Elisabeth Jordan From Vienna to Dublin - Christian Wolf Iceland - Land of Contrasts - Leiah St. Peter - John Burkholder Ballooning in Switzerland, Part 1 - Helene Ballooning in Switzerland, Part 2 - Helene Millennium Wedding and Holiday in France, Part 1 - Joy Robinson Millennium Wedding and Holiday in France, Part 2 - Joy Robinson Manchester - the Other City - Pat Farley The City of York - Liz Ross Bamberg - Hidden Jewel - Anne Holder Nuremberg - the Heart of Europe - Frances Evans Voyage of Discovery - James Carron Greek Islands - Jack Burgess Short Break in Amsterdam - James Carron Fairy Flags and the Isle of Skye - Marlene Graham Reflections on Malta - John Covington View List Europe travel, travel in europe, europe travel guides on Seniority OVER 50s ADVERTISING | PRIVACY | Ts & Cs | SITEMAP | ADD YOUR URL | CONTACT Seniority.co.uk Ltd. 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Federal Reserve Bank of Minneapolis - The Region - European Vacation (December 2003) I'm at: Home > Publications > The Region > December 2003 > Article Publications Expand All Collapse All The Region Index by Issue Interviews President's Columns fedgazette Index by Issue Topics Index Annual Report Quarterly Review Community Dividend Banking and Policy Studies Articles Toolbox ( advanced search ) December 2003 European Vacation There's a simple reason Americans work longer hours than Europeans, says economist Ed Prescott. And it isn't what you think Douglas Clement Editor It's no secret that Europeans work less than Americans do. Every Labor Day the media tell us that Europeans have just enjoyed weeks of summer vacation while Americans have been toiling away. These stories often depict Americans as hard-working drones who revere material possessions above all else. Europeans meanwhile bask in the good life of long lunches and months at the beach. There is some truth to the portrayal, at least in terms of hours worked. The International Labor Organization reports that the average American worked 1,815 hours in 2002, well above the comparable figures for France (1,545) and Germany (1,444), for example. (The average South Korean, on the other hand, worked over 2,400 hours.) But if it's widely acknowledged that Americans work more hours than Europeans, it remains a puzzle quite why there's such a large difference. With similar economies and social structures—at least relative to the rest of the world—it would seem that labor patterns should also be alike. Social scientists have been hard-pressed to explain the disparity. Most accounts focus on cultural explanations. The most popular is the notion that Europeans have a fuller appreciation of la dolce vita —the sweet life—the Italian version of the idea that life is to be enjoyed, not endured. Work is a means to an end, not an end in itself. The idea of cultural and religious influences on economic activity isn't new. German sociologist Max Weber wrote The Protestant Ethic and the Spirit of Capitalism nearly a century ago, attributing the rise of capitalist economies to the “Protestant work ethic.” It was an immensely persuasive theory in its time, and derivative explanations have held great sway ever since. “Why do Europeans and Americans differ so much in their attitude toward work and leisure? I can think of two reasons,” opines a recent Time magazine essay. “Broadly speaking, Americans value stuff—SUVs, 7,000-sq.-ft. houses—more than they value time, while for Europeans it's the opposite. Second, ... in the puritanical version of Christianity that has always appealed to Americans, religion comes packaged with the stern message that hard work is good for the soul. Modern Europe has avoided so melancholy a lesson.” “It all comes down to what people feel is important and how they feel about their lives,” argues a September 2003 U.S. News & World Report editorial. “We value more money and more stuff; they value more leisure time. ... We are proud of being busy—it is a virtue; being idle is perceived as a vice.” Economic explanations Economists have always been suspect of such cultural explanations. Standard economic theory assumes that people's preferences are, on average, homogeneous, and that choices depend largely on economic factors. Still, while economists agree that dollars and cents lie behind the work pattern differential, there is little harmony among them as to the right economic explanation. Some economists say work regulations keep Europeans from working longer hours and point favorably to recent European reforms on vacation time. Others argue that greater inequality in the United States motivates workers to try harder to get ahead. Most of these explanations come from the perspective of labor economics and its core belief that social structures and institutions such as unions are the major determinants of labor patterns. But in a recent series of papers and lectures, Edward C. Prescott, senior monetary adviser to the Minneapolis Fed and economist at Arizona State University, looks at the labor supply question through the prism of the growth model—a different perspective altogether—and provides a convincing and remarkably straightforward explanation for the dramatic differences in hours worked. It is an explanation that has far-reaching implications for policymakers—and for anyone else who's ever received a paycheck. According to Prescott, the reason for these large differences in labor supply is not culture. “French, Japanese, and U.S. workers all have similar preferences,” he writes. “The French are not better at enjoying leisure. The Japanese are not compulsive savers.” The reason for the wide range in working hours is, in a word, taxes. Europeans supply less labor because there's a much larger wedge in most European countries between what a worker is paid and what that worker actually gets to keep after taxes are taken out. This tax wedge, argues Prescott, distorts the trade-off people make between consumption and leisure by making consumption more expensive. And since people work, ultimately, to earn money to pay for consumption goods, they'll supply less labor if consumption goods become relatively more expensive. The cheaper alternative: leisure. Hello, Riviera. If the concept seems straightforward, its evolution was anything but. Like most ideas that seem obvious in retrospect, the awareness that taxes distort labor markets dramatically and account for major international differences in work patterns came about indirectly and as a revelation to those who happened upon it. The discovery Prescott's discovery about the role of taxes in labor supply variation began, simply enough, in his classroom at the University of Minnesota, where he taught from 1980 to 2003. “I was making up exercises for my students,” he recalled in a recent interview. “I said, 'use this nice little growth model.'” The “nice little model” he presented to his students is the workhorse of modern macroeconomics; it says, mathematically, that a nation's total output (or gross domestic product, GDP) is dependent on three sources: labor, capital and the efficiency (or productivity) with which it merges them to create economic value. The other key part of this standard theory is, in the jargon of economics, a utility function: a formula representing the notion that households try to maximize their happiness by finding the best possible combination of leisure and consumption, given their resources. Prescott wanted his students to become familiar with this model by looking at how it performed in different nations over time, and how key variables—capital endowments, productivity, labor supply—could account for differences among nations in per capita GDP. “I wanted to try to get across the basic ideas and the importance of productivity,” said Prescott. “And then I thought, let's put a few taxes in.” The intuition was far more significant than Prescott suspected, but that became clear only after looking at the relative contributions of capital, productivity and labor. The data, compiled by the United Nations and the Organization for Economic Cooperation and Development, showed that in the mid-1990s among developed countries—the United States, much of Europe and Japan—relative levels of capital differ little and explain just a small portion of the variation in per capita GDP (see adjacent table). “The capital factor is not an important factor in accounting for differences in incomes across the OECD countries,” writes Prescott in his 2002 Richard T. Ely Lecture to the American Economic Association. “[It] contributes at most 8 percent to the differences in income between any of these countries.” Capital, Labor, Productivity and GDP 1993-96 Country Capital/ Output Ratio (1990) Hours worked per Week per Person 15-64 Productivity: GDP per hour Worked; US=100 GDP per Person 15-64; US=100 Germany 2.7 19.3 99 74 France 2.2 17.5 110 74 Italy 2.6 16.5 90 57 Canada na 22.9 89 79 United Kingdom 2.6 22.8 76 67 Japan 2.5 27.0 74 78 United States 2.3 25.9 100 100 Source: Federal Reserve Bank of Minneapolis Research Department Staff Report 321 and Working Paper 618 . Productivity, on the other hand, is very important, at least for some national differences. Japan and the United States, for example, have similar levels of labor and capital, but per capita GDP in Japan is far below that in the United States because its productivity is less than three-quarters that of the United States. But what of European countries like France, Italy and Germany? Why are their levels of per capita GDP so much lower? All these nations have capital endowments comparable to the United States. Their productivity levels also are similar to U.S. rates, or in the case of France, even higher. The data suggest that the differences in wealth are due almost exclusively to the markedly lower number of hours worked in these European countries. Germany, for instance, had a slightly higher capital endowment than the United States and an equal level of productivity, but just 74 percent of the U.S. per capita GDP. The evident reason: Its workers supplied just over 19 hours of labor per week compared to nearly 26 hours a week per American worker. While many believe that cultural differences lead to fewer hours worked in Europe than in the United States, Prescott doubts it. After all, data from the early 1970s show that the French actually worked more hours per week than did Americans at that time. Has French culture changed radically over the last two decades? Probably not: They still like good wine, aged cheese and, inexplicably, Jerry Lewis. Prescott's hunch was that differences in marginal tax rates might explain the differences in labor supplied and thus account for differences in per capita GDP. Enter the tax wedge “What is important is the price of consumption relative to leisure,” Prescott writes in the lecture he gave in April 2003 as he accepted Northwestern University's prestigious Erwin Plein Nemmers Prize in Economics. “And it is determined by the consumption tax rate and the labor income tax rate.” (See the lecture, “ Why Do Americans Work So Much More Than Europeans? ”) By introducing these taxes into the growth model, and making standard microeconomic assumptions, Prescott derived what he calls “the key equilibrium relation.” 1 It's a mathematical formula for labor supply that says workers will supply labor dependent on, among other things, their preference for consumption now over consumption later (spend or save?), their preference for leisure relative to consumption (play or work?) and the effective tax rate. Holding the first two variables fixed and looking empirically at different national tax rates enables Prescott to see if tax differences can account, fully or partially, for variations in labor hours supplied. Estimating the effective tax rates in these countries was, in itself, a major accounting exercise. Consumption taxes include value-added taxes, sales taxes, excise taxes and property taxes. Labor is subject to both income taxes and Social Security taxes. For each nation under consideration, Prescott and his students crunched the numbers, determined a tax rate, plugged it into the formula along with fixed estimates of the other variables, and derived predictions of labor hours supplied per week per worker. How good were the predictions? Dead-on for Germany and the United Kingdom, a bit low for Canada and the United States, and a bit high for the other countries (see table below). Given measurement inaccuracies, the rough nature of the tax-rate estimates and the difficulty of international comparisons, writes Prescott, the model's predictions were “surprisingly close to the actual.” Tax Rates and Labor Supply 1993-96 Country Tax Rate (percent) Actual Hours Worked per Week per Person 15-64 Predicted Hours Worked per Week per Person 15-64 Difference (Predicted Minus Actual) Germany 59 19.3 19.5 0.2 France 59 17.5 19.5 2.0 Italy 64 16.5 18.8 2.3 Canada 52 22.9 21.3 -1.6 United Kingdom 44 22.8 22.8 0.0 Japan 37 27.0 29.0 2.0 United States 40 25.9 24.6 -1.3 Source: “ Why Do Americans Work So Much More Than Europeans ?” Federal Reserve Bank of Minneapolis Research Department Staff Report 321. Here, notes Prescott, “the important observation is that the low labor supplies in Germany, France and Italy are due to high tax rates. In these countries if someone works more and produces 100 additional euros of output, that individual gets to consume only 40 euros of additional consumption and pays directly or indirectly 60 euros in taxes.” Put in such stark terms, it seems obvious that many Europeans might opt to work less, while Americans and Japanese, taxed more lightly, would be keen to put in extra hours. Confirmation and implications Prescott found further confirmation for his hypothesis when he looked at tax rates and labor supply in the early 1970s (see table below). While his model's predictions of labor hours supplied diverge from the actual in several cases—Italy and Japan, in particular—Prescott observes that “when European and U.S. tax rates were comparable, European and U.S. labor supplies were roughly equal.” Tax Rates and Labor Supply 1970-74 Country Tax Rate (percent) Actual Hours Worked per Week per Person 15-64 Predicted Hours Worked per Week per Person 15-64 Difference (Predicted Minus Actual) Germany 52 24.6 24.6 0.0 France 49 24.4 25.4 1.0 Italy 41 19.2 28.3 9.1 Canada 44 22.2 25.6 3.4 United Kingdom 45 25.9 24.0 -1.9 Japan 25 29.8 35.8 6.0 United States 40 23.5 26.4 2.9 Source: “ Why Do Americans Work So Much More Than Europeans ?” Federal Reserve Bank of Minneapolis Research Department Staff Report 321. As for the outliers, Italy and Japan, Prescott suggests that other factors may be significant. In Italy, cartels may have played a role in depressing labor supply below its predicted value. In Japan, significant measurement errors in actual hours worked could account for the overly high prediction by the model. And what seems another anomaly is very likely an indirect confirmation of the importance of marginal tax rates on labor supply, according to Prescott. In the United States, actual hours worked per person increased by 10 percent from the 1970s to the 1990s, though the marginal tax rate remained at 40 percent. Prescott argues that U.S. tax reforms in the 1980s changed the effective marginal tax faced by married couples—dropping the rate in half for the second earner's income—even though it remained nominally at 40 percent. “In the 1993-96 [period],” he writes, “the marginal income tax on the labor income associated with switching between a one-earner and a two-earner household is only 20 percent, not 40 percent.” The issue warrants more attention, he says, and indeed, his colleagues Larry Jones, Rodolfo Manuelli and Ellen McGrattan have recently released a paper on this exact question. (See “ Wives at Work .”) On the whole, Prescott states, the results show that “people are remarkably similar across countries” and not only for these relatively prosperous and homogeneous nations, but for Chile, Mexico and Argentina, as well, where other economists have found similar relationships. “Apparently, idiosyncratic preference differences average out and result in the [representative] household having almost identical preferences across countries.” The policy implications are enormous for high-tax countries. If France were to lower its effective tax rate from 60 percent to 40 percent, estimates Prescott, its people would work more (taking 6.6 percent less leisure) and—remember their high productivity?—would generate considerably more output. Tax revenues wouldn't diminish, because the 40 percent rate would be levied on a higher base. And overall French “welfare gains,” as economists put it, would increase nearly 20 percent. In the United States, reducing marginal tax rates would have a more modest impact, according to the model: A 10 percent rate reduction would produce a 7 percent welfare gain. But even in the United States, Prescott's findings have huge implications for the viability of the Social Security system. (See “ Shrinking a deadweight loss .”) Foreign affairs In recent months, Prescott has traveled widely, presenting his findings not only to American audiences but to economists and policymakers in London, Berlin, Toulouse, Tokyo and elsewhere overseas. And in fact, says Prescott, Europeans tend to be more receptive than Americans. “The economists there understand that there is a problem,” he said after returning from France in mid-September. “I got some excellent suggestions when I presented the paper, the best so far.” But at all venues, he observes, the common denominator is surprise. Prescott is the first to admit that he, too, thought the results were startling, unexpected. “I find it remarkable that virtually all of the large difference in labor supply between France and the United States is due to differences in tax systems,” he writes in his Ely lecture. “I expected institutional constraints on the operation of labor markets and the nature of the unemployment benefit system to be more important.” Moreover, he concedes that cultural explanations might carry the day in a few settings. “Scandinavians seem to be a little bit different,” he said recently, referring to research by Richard Rogerson, an economist at Arizona State University. “My theory is when one of those Swedes looks at you when you're not working, it's pretty intimidating.” More seriously, he allows that in small, homogeneous cultures, social pressures can be quite strong. But even in large, heterogeneous nations, tax wedges don't always tell the whole story, according to Prescott. “Taxes are not the only reason that the labor factors differ,” says Prescott's Ely lecture. Unemployment benefits and housing subsidies—not taxes—distorted labor mobility in the United Kingdom between the first and second World Wars, contributing significantly to that country's interwar depression. New Deal policies supporting cartels in America's heavy industries distorted wages and employment in the last half of the 1930s, contributing to the depth and duration of the Great Depression in the United States. Similarly, cartels in 1970s Italy may have suppressed employment there. Prescott relies on work by University of California, Los Angeles economists Harold Cole and Lee Ohanian in making these conjectures. Still, while taxes aren't the all-powerful explanatory factor for all nations and eras, Prescott contends that in major developed countries in the time period under consideration, the labor supply impact of tax wedges is a powerful and undeniable fact. Other academics As befits the work of any prominent scholar, Prescott's theory has attracted close academic scrutiny—beyond the initial reaction of surprise—from both adherents and critics. In one recent paper, Peter Lindert, an economist at the University of California, Davis, refers to Prescott's study as dependent upon “a theoretical model heavily laden with assumptions. It is educated, intelligent, plausible fiction—but fiction nonetheless.” On the other hand (as Lindert points out) Prescott's model and findings are cited quite favorably by Nobel Laureate Robert Lucas in his 2003 presidential address to the American Economic Association. Lindert calls for empirical tests. Steven Davis at the University of Chicago Graduate School of Business and Magnus Henrekson of the Stockholm School of Economics oblige with a careful econometric analysis of the impact of labor income and consumption taxes on employment and work activity. In their study of rich countries in the mid-1990s, they find that a 12.8 percentage point difference in tax rates is associated with 122 fewer market work hours per adult per year and nearly a 5 percentage point decrease in employment—population ratios—an indirect affirmation of Prescott's theory. A very different perspective was presented earlier this year in a series of lectures by British economist Richard Layard, co-director of the Centre for Economic Performance at the London School of Economics. Layard takes issue with GDP itself as a satisfactory measure of human welfare—or utility, as Jeremy Bentham and subsequent economists have termed it—noting that “happiness has not increased, despite huge increases in living standards.” To summarize a lengthy argument, Layard's idea is that a tax wedge on labor income could actually increase utility by decreasing a sort of pollution: overwork brought on by the inherent human desire to do better than our peers, regardless of our absolute level of income. Keeping up with the Joneses, in other words, leads to overwork, ill health and unhappiness—rivalry distorts the leisure/labor decision. Appropriate public policy should diminish this pollution by taxing it. “In an efficient economy,” Layard writes, “there will be substantial levels of corrective taxation ... 60 percent would not seem inappropriate, and that is in fact the typical level of marginal taxation in Europe—if you allow for direct and indirect taxes.” Prescott responds Prescott's reactions to these ideas vary widely. Sitting in his seventh-floor office at the Minneapolis Fed, he reads through the first pages of Lindert's paper, then drops it on his desk. “It doesn't seem to be coherent,” he says. Davis and Henrekson's study, on the other hand, intrigues him. That might seem predictable given its broad support of Prescott's findings, but Davis and Henrekson employ a technique Prescott generally scorns: statistical regression. “Progress, don't regress,” he says with a smile, quoting the slogan featured prominently on his Internet home page. Regardless of their method, Prescott is drawn to the findings and has invited Davis to Minneapolis to get a closer look at their work. But Prescott's response to Layard's argument—more complete and nuanced—conveys a sense of Prescott himself. He begins by summarizing Layard's case in a phrase: “I'm happy if I have a lot more income—than you,” he says, grinning and quite aware that he does. As to the overwork such rivalry might cause, “that just says there's a consumption externality.” Then he conveys the concept with a story. “I always tried to create a positive externality in Pittsburgh for my neighbors who had these beautiful lawns,” he jokes of his grad school days at Carnegie Mellon University. “By my having a messy lawn, their lawns looked so much better. I mowed it, but I didn't do much else with my lawn. And it gave me utility to see them happier.” He tells the story with a verbal wink, acknowledging silently that his Pittsburgh yard care externality may well have been less than zero. The conspiratorial smile changes to professorial zeal as he begins to dissect Layard's reasoning: “Suppose everybody cares about relative consumption as well as own consumption. You work out the equilibrium, it's not Pareto optimal. Let's deal with the case where everybody enters symmetrically. So it's simple to make the ordering. Well, you can make everybody better off by just putting a tax on consumption so that they work less. That's a very standard model. Now what would be the empirical evidence for and against that?” In under five minutes, Prescott has crystallized an argument, communicated it to a visitor in plain language and personal anecdote, then converted it to the idiom of economics and laid out steps for its confirmation or refutation. It's vintage Prescott: analytically brilliant, unexpectedly funny and several beats ahead of everyone else. That last bit is the essence of a conversation with the economist. When you ask him a question, it sometimes seems that his reply is off-topic; then it dawns on you that Ed Prescott is answering the question you should have asked. A pattern of surprise Prescott's willingness to entertain alternatives, to listen to critics, to incorporate the unexpected is deeply characteristic of his work. That flexibility is, in fact, the paradoxical outcome of a rigid research discipline. In setting model parameters, for instance, or reporting research results, “the investigator has no degrees of freedom,” he says. “You have to tie your hands and if there's a deviation from your predictions, you report it. You can speculate on why, but you've got to be totally honest.” Intellectual honesty also means allowing findings to modify, even subvert initial hypotheses. It happens frequently, says Prescott. Much of the work for which he's best known—theories on time inconsistency, real business cycles, the equity premium and growth theory—has been developed in an ongoing process of research and revelation. “When I work out the implications, I'm quite often surprised: The findings change my views quite dramatically,” he says. “When I did the real business cycles work with Finn Kydland, I was certain that monetary shocks were the reason the economy fluctuated with the business cycles. Our findings were just the opposite. When I did some work with Rajnish Mehra on the equity premium puzzle, I was certain that the reason for the high historical difference in the return on equity relative to debt was just a premium for bearing aggregate, nondiversifiable risk. We found it wasn't.” For time inconsistency and the impact of taxes on labor supply, as well, surprise has been an intrinsic part of the process. Future direction As striking as his labor supply findings are—and though many aspects of it remain unresolved—Prescott senses that the big theoretical questions in economic growth lie elsewhere, and he is now turning his attention to them. “I think I've had my say on labor supply,” he concludes. In his Ely lecture, he lays out three sources of economic growth: capital, labor and productivity. The first two are important in understanding why some nations remain poor while others prosper, but the central question, contends Prescott, is what determines productivity? “Given productivity, our macro models are great,” he says. “But we treat it as exogenous. We've got to have a better understanding of mapping between policies and productivity.” In other words, what can governments do to enhance productivity? Prescott's main candidates are efficient financial markets, competition among producers and trading clubs. And currently, the last is his major focus. “What is a trading club?” he asks rhetorically. “Well, first, free movement of goods between the member states. But it's much, much more than that. ...” Prescott continues at length, with a discourse ranging from Toyota factories in Wales to trade among the U.S. states in the 19th century. He speaks quickly, and as he does there is a sense that each research question he asks leads him to a dozen more, each more interesting than the last. He will travel soon to Warsaw and then Bogotá to explore these ideas with other economists and policymakers. “It's going to be fascinating to see what's happening in Poland,” he remarks. In Colombia, “the president is trying to do some good things there, and we have to go down and help out.” He's not a policymaker himself. “I leave that to other people,” he says. “I'm no good at it. My comparative advantage is working out implications of theory.” And in so doing, it seems there is just one constraint: Even for Ed Prescott, a scholar who understands labor supply dynamics as well as anyone on earth, there are only 24 hours in a day. “Time,” observes the economist, “is the most valuable resource.” 1 The two assumptions: (1) that people decide between leisure and consumption based on their relative prices, at the margin, and (2) that in a competitive market, wages are equal to their marginal product of labor. The “key equilibrium relation” also depends on the share of a nation's output due to capital. Top of document Advanced Search Glossary See also: Shrinking a deadweight loss

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Bernalillo: Hyatt Regency Tamaya Resort & Spa - Traveler Reviews - Fantastic family vacation! - TripAdvisor Hyatt Regency Tamaya Resort & Spa: Traveler Reviews Sign in • Sign up Home > United States > New Mexico > Bernalillo > Hotels > Hyatt Regency Tamaya Resort & Spa > Traveler Reviews Bernalillo tourism: Overview Hotels Flights Attractions Dining Deals Getaways Forums Maps, etc. Search (e.g., Boston hotels, Las Vegas, Paris art museum) Bernalillo Bernalillo Overview Bernalillo Hotels Hyatt Regency Tamaya Resort & Spa All Bernalillo Hotels Flights to Bernalillo Bernalillo Deals Bernalillo Attractions Bernalillo Restaurants Bernalillo Forums Bernalillo Maps Bernalillo Discount Hotels Bernalillo Vacation Packages Nearby Cities You may also be interested in these hotels within five miles of Bernalillo: Corrales Hotels Hyatt Regency Tamaya Resort & Spa e-mail this page to a friend Traveler Reviews Write a review . What was your experience with Hyatt Regency Tamaya Resort & Spa? 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Bernalillo Hyatt Regency Tamaya Resort & Spa 1300 Tuyuna Trail Santa Ana Pueblo Bernalillo, New Mexico 87004 United States Deals on Nearby Bernalillo Hotels Days Inn Bernalillo Bernalillo Super 8 Motel Quality Inn & Suites Hacienda Vargas Days Inn of Rio Rancho Ramada Limited Albuquerque North/Rio Rancho Super 8 Motel-Rio Rancho Hilton Garden Inn Albuquerque North/Rio Rancho Best Western Rio Rancho Inn and Conference Center Extended StayAmerica Albuquerque - Rio Rancho Extended StayAmerica Albuquerque - Rio Rancho Comfort Inn & Suites North Ramada Limited Albuquerque Holiday Inn Express - Balloon Fiesta Park Motel 6 Albuquerque North Courtyard Albuquerque La Quinta Inn Albuquerque North Howard Johnson Express Inn Albuquerque North Quality Suites Albuquerque Albuquerque Marriott Pyramid North Baymont Inn & Suites Albuquerque Hampton Inn Albuquerque North Country Inn & Suites Albuquerque I-25 North Nuevo Dia Guest Accomodations Bed and Breakfast Crossland Economy Studios Albuquerque - Northeast Hacienda Antigua Bed and Breakfast Drury Inn & Suites Albuquerque Homewood Suites by Hilton Albuquerque - Journal Center Nativo Lodge Albuquerque Studio 6 Albuquerque North Residence Inn Albuquerque North Best Western Executive Suites US Suites Albuquerque Los Poblanos Inn Amerisuites Albuquerque Midtown Clubhouse Inn & Suites Albuquerque Equus Hotel Suites Hampton Inn Albuquerque - University / Midtown Albuquerque Marriott Comfort Inn Midtown Econo Lodge Midtown AmeriSuites Albuquerque Uptown Candlewood Suites Albuquerque Super 8 Motel Midtown Residence Inn Albuquerque Sheraton Albuquerque Uptown Red Roof Inn - Midtown MCM Elegante Fairfield Inn Albuquerque University Area Read more Bernalillo tourism Hyatt Regency Tamaya Resort & Spa : Traveler Reviews #1 of 5 hotels in Bernalillo Compare rates with: Average price*: $ 222 1300 Tuyuna Trail | Santa Ana Pueblo, Bernalillo, New Mexico 87004, United States Rooms: 350 Hotel class: TripAdvisor traveler rating: Call now to book: 1-800-434-6835 from hotels.com Map this hotel: Expedia.com Hotel photos: Expedia.com Virtual tour: VFM Interactive Southwestern Pueblo-style Resort (January 2001) with open-air courtyards. This description is based on information provided by the hotel. Sponsored links * Hotel deal search: Hyatt Regency Tamaya Resort & Spa Click here for best prices for Hyatt Regency Tamaya Resort & Spa Hyatt Regency Tamaya Resort & Spa : Great rooms, Great rates Expedia.com Don't just travel. Travel right! Hyatt Regency Tamaya Resort & Spa : More rooms for more value hotels.com We Know Hotels Inside And Out. Click or call now: 1-800-434-6835 Hyatt Regency Tamaya Resort & Spa : Click for all Hyatt Rates Hyatt.com- Official Site Get our guaranteed best rate on the Internet and no booking fees. Hyatt Regency Tamaya Resort & Spa : Great Rooms from $146 Orbitz.com The faster, easier way to find the hotel you want. Just Orbitz and go! All results: View all 42 Bernalillo travel deals Airfare: Find deals on airfare to Bernalillo (arriving in Albuquerque, NM) TripAdvisor Traveler Rating Based on 42 reviews worldwide What to expect Rooms Service Value Cleanliness Pool Recommendations couples and romantics honeymooners families with small children families with teenagers business travelers Traveler Reviews (13-17 of 42) (English) Traveler reviews (13-17 of 42) Previous | Next RATING: DATE: Show: All languages English (42) Traveler rating: Bernalillo: Hyatt Regency Tamaya Resort & Spa : "Fantastic family vacation!" Mar 24, 2005 : A TripAdvisor Member, baltimore Compare prices with: I stayed at this hotel in: April, 2005 My ratings for this hotel are: Rooms Service Value Cleanliness Dining Activities and gym Pool I traveled to this hotel with: family members I recommend this hotel for: business travelers, couples and romantics, honeymooners, singles, families with small children, families with teenagers, active/adventure travelers, tourists My visit was for: leisure We returned from Hotel Tamaya in late March 05 and it was fantastic. All the staff were top notch. Donald in the stables and the whole crew were first rate. The restaurants were great! When you go down - be sure to check out Sky City and the Jemez Trail - you'll also love Santa Fe. The hotel was five start in every way and I can't say enough about the activities coordinators, front desk staff, room service staff or concierge. Be sure to check the website for the free breakfast promotion. I would go back again and again! This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor, Inc. 7 out of 8 TripAdvisor users found this review to be helpful. Write a review of this hotel Post your photos of this hotel Did you find this review helpful? Traveler rating: Bernalillo: Hyatt Regency Tamaya Resort & Spa : "Wonderful Stay" Mar 1, 2005 : A TripAdvisor Member, Colorado Spgs, Colorado Compare prices with: I can't say enough about the Hyatt Hotel and Spa. It is by far the most beautiful place my Partner and I have stayed. The service was excellent and the staff was very attentive. We are planning another trip to the Hyatt very soon. If you want a classy and relaxing time, this is the place to go! The the rooms are very beautiful and I loved everything about the Hotel. You just don't want to leave and room service is so good. Everyone from the bell boys to the desk clerks treat you like royalty everytime they see you. The room was spacious and cozy. The views are gorgeous no matter where your room is. They offer a variety of things to keep you busy from golfing to horseback riding. We didnt get a chance to take advantage of this as it was very cold, however, we will be going back this summer to enjoy all that we missed. This resort is worth every penny!!! This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor, Inc. 6 out of 7 TripAdvisor users found this review to be helpful. Write a review of this hotel Post your photos of this hotel Did you find this review helpful? Traveler rating: Bernalillo: Hyatt Regency Tamaya Resort & Spa : "I'm a Hotel Snob and had a great time" Jan 11, 2005 : A TripAdvisor Member, Edgewood, New Mexico Compare prices with: I stayed at this hotel in: February, 2005 My ratings for this hotel are: Rooms Service Value Cleanliness Activities and gym I traveled to this hotel with: spouse/partner I recommend this hotel for: couples and romantics, honeymooners, families with small children, large groups, seniors, active/adventure travelers, tourists My visit was for: in-town getaway My husband and I went to the Tamaya for several days in celebration of our Anniversary. One night was booked through the hotel in conjunction with a New Years Eve Package, one night through Priceline, one night through Hotwire. I called in advance to request a "room type" and was happily accomodated. When we arrived we were very pleased overall with the property, the location, amenities and certainly our room. We had a beautiful view of the mountains from the East side of the property. There was a card and a box of chocolates from a local chocolatier expressing their wishes for a "Happy Anniversary." The staff bent over backwards in every way to greet us, accomodate us, ask if everything was ok, compliment us...not in an over the top way either...I wasn't ducking for cover everytime I saw one of them. In referrence to some of the other reviews here I would like to say...I am a local and thought there was a nice balance of culture without having it shoved down my throat. I have reactive airway disease and asthma and while there was indeed potpourri and candles everywhere I had absolutely no problem. Probably due to the fact that smoking is NOT allowed in any areas of the hotel or restaurants. I'll take potpourri and candles any day over cigarette smoke. The workout facilities were very nice as was the spa facility. It was obviously winter but I would tout it as a winter getaway, temps were in the 50's during the day and the one day it rained we stayed in the spa and took a nap in the afternoon. What's not a getaway about that? You can't control the weather so make the most of it anyway. I did suggest a few minor changes in the spa that could have made my stay better but they were more conveniences than anything. I dind't eat in any of the restaurants on the property but the Ballroom was absolutely beautiful for the NYE party. Way above and beyond anything else I have ever encountered. I will indeed return and would prefer this spa getaway to any that I have had in Vegas, the food though pricey was much cheaper, more in room amenities ...and NO Smoke. This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor, Inc. 7 out of 8 TripAdvisor users found this review to be helpful. Write a review of this hotel Post your photos of this hotel Did you find this review helpful? Traveler rating: Bernalillo: Hyatt Regency Tamaya Resort & Spa : "Great perks, but spotty on service & cultural issues" Dec 26, 2004 : Compare prices with: My partner and I stayed here two nights, including Thanksgiving. For such a place, with so many amenities, how can one complain? Well, I can. That said, I'd still go back--for a low price. But first, some of the qualities that are worthy of a resort *. The wonderful amenities that folks have already pointed out (though we found them uniquely special for us) included the giant outdoor rock/waterfall hot tub, the extensive fitness room (with headphones hooked up to the machines to listen to multiple TVs and radio), the spa steam/sauna/hot tub and exquisite locker rooms, and the outdoor grounds along the Rio Grande and the Sandia mountains in the near distance. As many people prior have pointed out, the staff will go the extra mile to help you (though they may need some prodding -- see below), as the concierge did in helping us find a vegetarian-friendly restaurant on Thanksgiving. My complaints: I called up nearly a week ahead of time asking for 'special' requests (like a non-smoking room and a mountain view on an upper floor). The over-the-phone staff were kind and honest and assured me my requests would be honored because it was such a relatively slow time of year. Yet, what I was not impressed with was when I checked in at the front desk, the staffer had trouble finding my reservation for both nights and then after noting and affirming my 'special' requests my partner and I were given a lower-floor room with a view of the inner courtyard main door. When I returned to the front desk to ask for another room, a different staffer (new, in training), initially had trouble honoring my request. A manager stepped in, listened to my requests and apparently over-rode the system. Thirty minutes after checking into the new room I was nicely called and asked if the room was satisfactory. Kudos. Next jeer. On the Hyatt's website, I found that the hotel usually offered several cultural activities. So, nearly a week ahead of my reservation, I called and spoke with Ben, the concierge. He was helpful in telling me that practically nothing was happening the days I was there except the guided nature hike in the bosque. Surprise, surprise! When my partner and I arrived, we found a laundry list of activities planned during our stay. I asked the front desk staff about each activity and asked about making reservations; they assured me I could show up for each without a reservation. After checking into our room, we took a stroll around the complex, ending at the in-house concierge, querying this staffer about the tennis courts and bicycles. She assured us because it was a slow time of year and getting cooler, we'd have no trouble using the courts and bicycles, practically whenever we wanted (this proved accurate). However, she carefully noted, other planned activities did require reservations, such as several of the cultural activities we had just asked the front desk about. Of course, the traditional bread-making, which we’d very much wanted to participate in, was already full with folks who had reserved in advance!! That said, she encouraged us to just 'show-up' at the different activities, such as the bread-baking the next morning, without reservations. She slyly and strongly encouraged us to always consult with her about in-house functions and to not trust what the front-desk or concierge says. She added that there was a 'communication problem' in the hotel that apparently no one had interest in addressing. (Note, the in-house concierge (called 'resort reservations') is distinct from the main concierge (which handles everything external to the hotel). We did attend the bread baking the next day and, of course, one needed reservations to participate. Standing aside listening was rude, pointless, and inappropriate (and staff rightly ignored us). Last jeer. What is most unique about this resort, and was a very attractive feature for us, is that it is located on the Santa Ana Pueblo and listed as a commercial enterprise of the tribe. As folks who do our best to support indigenous peoples’ struggles for equality, sovereignty, respect, we were very glad to have a chance to support such an endeavor. However, the actual control the Pueblo has over the resort is unclear to us. Though the fact of the resort’s location is well-milked as a commodity for guests, the relationship a guest would have with actual people from the Pueblo is muted and controlled in ways that at times are quite disconcerting. One could forget the resort is located on the Santa Ana Pueblo because most of the staff one encounters are white (especially the front desk/concierge, up-front service staff). This was jarring for us (we have nothing against white people—we’re white—but we would expect in an enterprise owned by Pueblo folk to meet Pueblo folk as something other than drivers and housekeepers). Some of the spa staff were people of color. Naturally, the dancers and drummers who graciously shared from the Pueblo’s traditional dances were from the Pueblo (though strangely they were performing inside the hotel's bar, for folks who obviously had no understanding of the significance of what they were watching). There's also a small cultural museum with very limited hours (it was never open when we were there, though apparently with a phone call tours could be arranged). If one considers the immense history of the physcial and cultural genocide of the indigenous peoples of this hemisphere, then it stands to reason that this resort might want to be a bit humble with its entertainment/commercial commodification of the tribe. Sadly, compared to many similar such places in Hawaii and elsewhere in Indian Country, the Hyatt was humble. But why not require (or strongly recommend?) guests to at least watch a 30-minute video history of the tribe and in particular its relationship to European-America (which makes up the majority of the guests)? Gosh, people who stay here (especially young folks) might think 500 years of European colonialism have been just super for this tribe. You need to be patient and persistent in getting special requests met. If you're into the commodification of the 'exotic' then this place will suit you without any responsibility on your part. If you want more of a relationship with the people, their land and their history (including your participation), then you'll need to go beyond the confines of this resort. This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor, Inc. 10 out of 25 TripAdvisor users found this review to be helpful. Write a review of this hotel Post your photos of this hotel Did you find this review helpful? Traveler rating: Bernalillo: Hyatt Regency Tamaya Resort & Spa : "Pretentious without the right." Dec 18, 2004 : A TripAdvisor Member, Denver, CO Compare prices with: While the bed was comfy, it was difficult to sleep with the drunk people running down the hallway screaming. Room service took FOREVER (promised 30 minutes, took over an hour). Everything was incredibly expensive but was NOT worth it. We ordered room service - 3 kids meals and one adult meal was over $90. At the restaurant, I ordered crab cakes and while they were delicious, they were expensive and the size of a half-dollar at best and there were only two of them. They charged for EVERYTHING and more than the quoted price. Parking was quoted at $10 but was $15/night. We were told internet service was free, but was $12/night. When we asked the cleaning crew to come up around 11:30 am, they wrote it down and promised to come back at that time and then arrived at 2 and we had to wait out in the hallway while they finished. They did a shoddy job - leaving the trash can on top of the toilet and no new towels even though requested. There is also a smell throughout - they burn a strong insence and have potpouri everywhere so I had a migraine the entire time. The spa is fantastic, but stay elsewhere and drive in for a day at the spa. The pools are all outdoors and it's worth a trip to the hot tub even when it's nippy, but the other pools are too cold to swim in if it's cool out. If you do opt to stay at this hotel, consider stopping at the grocery on the way and stock up - they have a little fridge in the room and it's a heck of a lot cheaper (and likely tastier) than ordering from room service. This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor, Inc. 4 out of 12 TripAdvisor users found this review to be helpful. Write a review of this hotel Post your photos of this hotel Did you find this review helpful? Traveler reviews (13-17 of 42) Previous | Next Sponsored links * Hotel deal search: Hyatt Regency Tamaya Resort & Spa Click here for best prices for Hyatt Regency Tamaya Resort & Spa Hyatt Regency Tamaya Resort & Spa : Great rooms, Great rates Expedia.com Don't just travel. Travel right! Hyatt Regency Tamaya Resort & Spa : More rooms for more value hotels.com We Know Hotels Inside And Out. Click or call now: 1-800-434-6835 Hyatt Regency Tamaya Resort & Spa : Click for all Hyatt Rates Hyatt.com- Official Site Get our guaranteed best rate on the Internet and no booking fees. Hyatt Regency Tamaya Resort & Spa : Great Rooms from $146 Orbitz.com The faster, easier way to find the hotel you want. Just Orbitz and go! All results: View all 42 Bernalillo travel deals About TripAdvisor TripAdvisor provides recommendations for hotels, resorts, inns, vacations, travel packages, vacation packages, travel guides and lots more. Recommendations for hotels, resorts, inns, vacations, travel packages, travel guides and lots more! 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