Europe Travel & Tourism

Internet Public Library: Europe Travel & Tourism The Internet Public Library This collection All of the IPL Advanced -- Subject Collections Arts & Humanities Archives & Records Management Culture Fine Arts History Language Libraries Literature Museum Studies Philosophy Religion Arts & Humanities News Fine Arts & Humanities Libraries History of Arts & Humanities Business Accounting Agriculture Banking Business Administration Business Directories Business & Economics News Commerce & Trade Consumer Issues & Services E-Commerce Economics Employment Entrepreneurship Finance History of Business & Economics Industry Insurance International Business Labor & Workplace Marketing & Advertising Non-Profit Organizations Real Estate Statistics Tax Computers Computer Hardware Computer Science Computer Software Cyberculture Internet Platforms Programming System Administration Computers & Internet News History of Computers & Internet Education Adult Education Alternative Education Early Childhood and Pre-school Education News Higher Education K-12 Education Special Education Teachers & Administrators Vocational Education Entertainment Arts & Crafts Books Entertainment & Leisure News Fashion Food Games History of Entertainment & Leisure Hobbies Home & Garden Movies Music Outdoor Recreation Paranormal Phenomena Pets Radio Sports Television Theater Travel & Tourism Health Alcohol, Drugs & Tobacco Alternative Medicine Anatomy & Physiology Consumer Information Disabilities Diseases, Disorders & Syndromes Donors & Transplants Exercise & Fitness First Aid General Medicine Geriatrics Health & Medical Sciences News Health Care Management & Policy History of Medicine Injuries Medical Technology Men's Health Mental Health Medications & Pharmaceuticals Nursing Nutrition & Diet Occupational Health & Safety Oral Health & Dentistry Pain Treatment & Management Pediatrics Preventive Medicine Professional Resources Sexuality Specializations Surgery Veterinary Medicine Women's Health Law & Government Law Law Enforcement Government Political Science History of Law, Government & Political Science Regional Africa Asia Australia Caribbean Europe Middle East North America South America South Pacific Science & Tech Agriculture & Aquaculture Astronomy Chemistry Communications Controversial Earth Sciences Electronics Energy Engineering Environmental Sciences & Ecology History of Science & Technology Horology (Time) Life Sciences Mathematics Paleontology Physics Science & Technology News Science & Technology Libraries Transportation Social Science Anthropology Archaeology Customs, Etiquette, Folklore Education Ethnicity, Culture & Race Gender & Sexuality Geography History History of Social Sciences People by Age Group Political Science Psychology Social Issues & Social Welfare Social Sciences News Sociology Ready Reference Almanacs Calendars Dictionaries English Non-English Translation More… Style & Writing Guides Quotations Telephone & Address Genealogy Biographies Encyclopedias Geography Reading Room Books Magazines Newspapers KidSpace TeenSpace Special Collections Blogs Literary Criticism Science Fair More… Associations on the Net Blogs Exhibits Literary Criticism Native American Authors POTUS Science Fair Searching Tools FARQs Pathfinders Search this Site Web Searching Accessibility Info About the IPL Teach with the IPL Ask a Question Contact Us Search YOU ARE HERE: Home » Subject Collections » Entertainment & Leisure » Travel & Tourism » Regional & Country Information » Europe » Europe Travel & Tourism SEE ALSO Magazines • Associations on the Net Sub-headings: Travel and Tourism Resources in this category: You can also view Magazines , Associations on the Net under this heading. -- All About Spain - Travel and Tourism :: http://www.red2000.com/spain/index.html Online virtual guidebook. Bratislava Guide :: http://www.bratislavaguide.com/ A guide to Bratislava, Slovakia, designed for visitors to the city. The authors are residents of the city and post information on arts and culture, news, dining, shopping, and other activities for tourists. Bruges Info :: http://www.brugesinfo.com/ Bruges, Belgium travel information guide, your travel resource to the Venice of the North. Explore over 500 photos of Bruges, weather and maps, Bruges hotel, and bed and breakfasts for accomodations Central Europe Online :: http://www.einnews.com/centraleurope "Produced daily, Central Europe Online contains a comprehensive mix of Daily News from the Czech Republic, Slovakia, Poland, Hungary, and Slovenia with country home pages, special features, Travel and Cultural Information, and useful links to other sites." Chris De Witt's Berlin Wall Web Page :: http://www.appropriatesoftware.com/berlinwall/welcome.html Chris De Witt's Berlin Wall Web Pages are a great resource to students of history who want to learn more about Berlin's divided past. This web site guides visitors on a virtual tour of Berlin's past and present with loads of photos and essays about the city. The site provides its visitors a more intimate look into a city with a significant role in world history. The Cyber Cafes of Europe :: http://kiosek.com/eurocybercafes/ Complete, browsable directory of cyber cafés in Europe, browsable by country, with links to café homepages where available. Europe for Visitors :: http://europeforvisitors.com/ "More than 2,500 pages of European travel articles, photos, and links from Durant Imboden, author of Buying Travel Services on the Internet ." Germany Tourism :: http://www.germany-tourism.de/ This site about Germany promotes tourism throughout the country, providing information about destinations, upcoming events, travel tips, and an information center. Site visitors can also use a route planner, view 600 panoramic pictures of the country, and view several short videos. The German National Tourist Board oversees the site. Go To Georgia :: http://www.parliament.ge/gotogeorgia.htm Produced by Georgia's Parliament, this website provides information about the culture, economics, governance, tourism, sports, human rights protection, civic society, and other topics related to the country of Georgia. Guia Madrid Rural :: http://www.guiamadridrural.com/ Travel information for the Madrid area. Regional maps and guides to campsites, hotels, hostels, and rural homes. Includes information on outdoor activities and transportation in the area. In Spanish with limited English. Lonely Planet's Guide to Travel in Russia :: http://www.lonelyplanet.com/destinations/europe/russia/ On-line publication of a published book by the originating company. Offers information about how to travel in as well as the history of Russia. Paris Net :: http://www.parisnet.net/ Guide to Paris including travel tips, shopping, fashion, business and personal contacts, Paris gastronomie, etc. Rail Europe :: http://www.raileurope.com/us/index.htm Information about train passes, flights, and car rental for travel in Europe, including trains in Britain and Russia. This is a commercial site and therefore you can order tickets here, including group travel arrangements but it also has alot of useful free information. The Budget Traveller's Guide to Sleeping In Airports :: http://www.sleepinginairports.net/airports.htm This useful website has compiled commentary from thousands of travellers on the experience of sleeping in particular airports. The site rates the best airports in which to sleep in terms of cleanliness, safety, comfort, etc. Search the site according to world region or by country. Over 600 airports around the world are included. The Spirit of Romania :: http://www.spirit.ro/ This site provides travel information for Romania with listings of popular sites, photo galleries, an interactive map of the country and a fact sheet about currency, health and other important travel facts. (Site may take a while to load, especially on a dial-up connection.) La Torre de Pisa :: http://torre.duomo.pisa.it/index_eng.html "The Tower of Pisa is the bell tower of the Cathedral. Its construction began in the august of 1173 and continued (with two long interruptions) for about two hundred years, in full fidelity to the original project, whose architect is still uncertain." This site provides a history of the tower, short film and photo archives that allows you to "navigate between the orders (as the various floors are termed) of the Tower of Pisa.""One of the great landmarks and architectural icons of the Western world now has an official Internet home. View thousands of images on afloor-by-floor photographic tour, enjoy a 360-degree view from the belfry via Quicktime VR, or read about the history of the tower -- which began in 1173 and was under construction for about two hundred years, during which time it began to incline. Text in English and Italian describes contemporary efforts to safeguard and preserve this remarkable monument." Transport for London :: http://www.tfl.gov.uk/tfl/ "Transport for London provides detailed advice on using the various transport services in London, including Underground, Bus and River services. You will find information on our wide range of tickets, tube (subway) and bus maps to assist you in planning your journey along with useful tips for visitors to London." UK Orbit Shopping Directory :: http://www.ukorbit.com/ Tells you which shops accept your credit, debit, charge or store cards. Which shops offer free delivery, price matching, discounts or credit. Ultimate Italy :: http://ultimateitaly.com/ Ultimate Italy is a resource to discover Italy focusing on everything about the "best of Italy"; the cities, Italian piazzas, the latest picks of restaurants, pizzerias, bars and caffes, italian lifestyle, the nature from Italian national parks, Alps to the breathtaking Islands. You can find not only Italy travel & tourism information but an insight into the famous people of Italy, Italian fashion,the culture, history and arts. Virtual Finland :: http://virtual.finland.fi/ "Should you have any questions about Finland - any at all - the answer probably lies here, where you can get all sorts of information in several languages." VisitEurope.com :: http://www.visiteurope.com/ Comprehensive travel site for people planning to visit Europe. Each country has its own profile, highlighting popular places to visit, hotel and transportation information, trip planning, and news. The site also features tips for first time visitors, a trip planning guide, a calendar of events, and information for travelers with special interests. © 1995-2005 The Regents of the University of Michigan. All rights reserved.

Russia Travel

Russia Travel Information | Lonely Planet Destination Guide worldguide | shop | thorn tree forum | travel services | travel ticker | theme guides | on the road | postcards | travel links : Explore Russia Russia Hardship wrapped in history inside splendour. At a Glance Fast Facts WORLDGUIDE Introduction Background Info See Image Gallery Events Transport Money RELATED Thorn Tree Forum Postcards Travel Links More Places Check out our other destinations: Within Russia Moscow St Petersburg View Map Click here Feature Attraction Mamaev Kurgan Known as Hill 102 during the battle of Stalingrad, Mamaev Kurgan was the site of four months of fierce fighting. It's now a moving memorial to all who ... more Churchill's 'riddle wrapped in a mystery inside an enigma' remains an apt description of Russia; most outsiders have only a hazy idea of its realities. A composite of the extravagant glories of old Russia and the drab legacies of the Soviet era, it's a country that both befuddles and beguiles. This is a land of snow and deadly winters, but also of rivers that meander across meadows and a midsummer sun that never sets. Its people, in the words of a Russian proverb, 'love to suffer', yet they also love to party and can be disarmingly generous and hospitable. Dangerous Territories Travellers are strongly advised against travel to Chechnya, Dagestan and neighbouring Ingushetia. Military clashes, kidnapping of aid workers and foreigners, violent crimes and muggings are prevalent. Other areas of concern include North Ossetia, Stavropol, Karachayevo-Cherkessiya and Kabardino-Balkariya. Events in all these places are difficult to gauge and can change rapidly. On-the-ground consular support regarding these destinations can be negligible or non-existent. SPONSORED LINKS Enquire Accomodation Reviews Find Lonely Planet author reviewed places to stay * Required Fields Country * Please select Argentina Australia Austria Belgium Brazil Canada China Cuba Czech Republic Denmark Egypt England Estonia Finland France Germany Hungary Iceland India Ireland Israel & the Palestinian Territories Italy Japan Malaysia Mexico Morocco Netherlands New Zealand Poland Portugal Russia Scotland South Africa South Korea Spain Sweden Taiwan Thailand Turkey USA United Arab Emirates Vietnam City * Please select Travel Services · Flights · Hostels · Hotels · Travel Insurance More Services › Travelcasts Pod-up on St Petersburg and hear author Simon Richmond's insider tips. Listen now › Disclaimer: We've tried to make theinformation on this web site as accurate as possible, but it isprovided 'as is' and we accept no responsibility for any loss, injuryor inconvenience sustained by anyone resulting from this information.You should verify critical information (like visas, health and safety,customs and transportation) with the relevant authorities before youtravel. text & images © lonely planet 2005 about us | privacy | feedback | advertising FAQs worldguide | shop | thorn tree forum | travel services | travel ticker | theme guides | on the road | postcards | travel links

Germany Travel > Munich

Munich Germany Travel Planner - Hotels Restaurants Languange Tipping Internet Access  You are here: About > Travel > Europe for Visitors > Germany Austria Switzerland > Germany Travel > Munich > Munich Germany Travel Planner - Hotels Restaurants Languange Tipping Internet Access Travel Go Europe Essentials European Vacation Planning Map Europe Travel 101 - Before you Go European Distances The Best of Europe European Photo Gallery Articles & Resources Europe Travel Planning What to do In Europe Lodging - Hotels and More European Travel Maps Sex and Nudism Travel Photography Transportation Benelux Countries France Germany Austria Switzerland Greece Italy and Malta Travel Info Scandinavian Travel Spain and Portugal United Kingdom and Ireland Buyer's Guide Before You Buy Top Picks Italy Travel Guidebooks Europe Travel Guidebooks German Travel Guidebooks Product Reviews Forums Help FREE Newsletter Sign Up Now for the Europe for Visitors newsletter! See Online Courses   Search Europe for Visitors Map of Germany showing Munich James Martin Stay up to date! Map of Germany showing Munich James Martin Email to a friend Print this page Munich Transportation Information Munich International Airport Munich Public Transportation Riding the Rails in Germany Munich Travel Information Facts about Munich Munich Weather Forecast Munich's English Garden Germany Travel Resources Germany Map and Travel Info German Rail Map Munich Travel Links Most Popular Europe Map - Distances Between Cities in Western Europe Europe's Best Nudist Beaches Europe Picture Galleries Italy Pictures Europe Travel 101 - Before You Travel to Europe for the Firs... What's Hot Power Adapters Noord-Holland - Delights of North Holland Travel Visiting Pompeii Italy Guidebooks Naples - Getting There Related Topics France for Visitors Greece for Visitors United Kingdom / Ireland for Visitors Eastern Europe for Visitors Italy for Visitors Munich Germany Travel Planner - Munich Information From James Martin , Your Guide to Europe for Visitors . FREE Newsletter. Sign Up Now! Munich Essentials for the Traveler Part 1: Munich Essentials - How to get there, where to find hotels, how to stay connected. Destination: Munich Germany Founded: June 14th, 1158 by Henry the Lion, Duke of Saxony. It's Germany's third largest city. Munich has the second biggest number of working people in Germany. Munich has 10 Universities as well as 45 Museums and Collections. Munich Germany Quick Facts Munich is located near the geographical center of the Southern German region of Bavaria. The population of Munich is 1.2 million people, about 280,000 of which are foreigners. About 80% of Munich was bombed by the Allies during World War II and subsequently rebuilt. Getting to Munich From Munich's airport, Franz Josef Strauss Flughafen, you can get to the Hauptbahnhof (the city's main train station) by S-Bahn #8. The bus station is near the train station, which is located on the northwest corner of the old city. [ map ] Languages While German is, of course, the main language used in Munich, English is widely spoken and taught in schools. Most restaurants in the town center offer English menus, many with quite interesting translations. It is easy to get by with little or no German language knowledge. Hotels (Note: 2002 prices cited) There are many hotels within walking distance of the main train station. The average price of a reasonable (or inexpensive) hotel with private bath and breakfast is around 100 €. We stayed at the Hotel Europäischer Hof for 99 €. The Hotel Monaco , nearby on Schillerstrauss, was voted the best two star hotel in Germany. Doubles at the Monaco start at 110 €. The recommended youth hostel is found on nearby Senefelderstrasse. Euro Youth Hotel is number 5 on the left side of the road coming from the train station. Restaurants If you find yourself in the tourist center near the Marienplatz, The Neues Rathaus (The New City Hall) has two "kellers", a winestaube and a beer cellar. The winestaube has music (accordion when we were there) starting at 5. The beer celler has good food, but don't be persuaded to sit in one of the empty rooms, enter the hall from the Diener Street entrance and try to find a table in the big, noisy, main room where Munichers eat. They do try to funnel English speaking people into dull, empty rooms. Tipping While service is included in the bill, generally waiters are tipped 5% for good service. Internet Access in Munich Internet access is right in the main train station. Just follow the signs to the Times Square Bistro. They charge .5 Euro for 5 minutes, a bit steep for Europe, but you can sit anywhere in front of a big LCD screen, order a beer and feel you're part of a bar scene rather than crammed into a steamy room full of beige boxes. The Bistro features a friendly owner, too. Just take a seat and start surfing--the time is recorded automatically. There are other internet services near the station on the south side of Bayer Strasse. Nudity and the English Garden Now here's a controversy for you--the tourist powers that be are worried that there aren't enough attractive natives baring it all in the middle of Munich. Yup, that's right, nudity was once a feature of designated areas of the Englischer Garten and the practice is fading--you used to be able to count on gawking at naked people downing liters of beer in the beer gardens. Perhaps you can apply to be a token Munich nudist and make money while vacationing--if I hear anything I'll let you know. Anyway, Munich's Englischer Garten is the largest in Europe and twice the size of Central Park. And you can still practice your nudity there while slugging down some strong beer. Other Sage Advice for Munich Germany Many museums in Munich are closed on Monday. Pick up a copy of "The Inside Track," the EurAide newsletter, at the ticketing office in the train station. The newsletter offers many tips on getting around and enjoying Munich. The EurAide office is near track 11, room three at the station. Get advice, find excursions, passes and travel deals there. Next page > Walks in Munich - Hitler's Munich > Page 1 , 2 , 3 More on Munich for the traveler • Part 2: Walks in Munich • Part 3: Visiting Dachau        Topic Index | Email to a Friend Our Story | Be a Guide | Advertising Info | Work at About | Site Map | Icons | Help User Agreement | Ethics Policy | Patent Info. | Privacy Policy | Kids' Privacy Policy ©2005 About, Inc., A part of the New York Times Company . All rights reserved. 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European vacation for more

Europe hotels and vacation deals from EuroVacations.com Hotel Location City/Country: - Select a City - Aix-en-Provence, France Amsterdam, Netherlands Antwerp, Belgium Athens, Greece Avignon, France Barcelona, Spain Basel,Switzerland Beaune, France Belfast, N. Ireland Bergen, Norway Berlin, Germany Bern, Switzerland Bilbao, Spain Bordeaux, France Bratislava, Slovakia Brig, Switzerland Brugge, Belgium Brussels, Belgium Budapest, Hungary Caen, France Cannes, France Chamonix, France Chur, Switzerland Cologne, Germany Como, Italy Copenhagen, Denmark Cordoba, Spain Cork, Ireland Crete, Greece Davos, Switzerland Dresden, Germany Duesseldorf, Germany Dublin, Ireland Dubrovnik, Croatia Edinburgh, Scotland Engelberg, Switzerland Florence, Italy Frankfurt, Germany Freiburg, Germany Geneva, Switzerland Ghent, Belgium Glasgow, Scotland Granada, Spain Graz, Austria Grindelwald, Switzerland Gstaad, Switzerland Hamburg, Germany Heidelberg, Germany Helsinki, Finland Innsbruck, Austria Interlaken, Switzerland Istanbul, Turkey Kilkenny, Ireland Krakow, Poland Lausanne, Switzerland Liege, Belgium Linz, Austria Lisbon, Portugal London, England Lourdes, France Lucerne, Switzerland Lugano, Switzerland Lyon, France Luxembourg, Luxembourg Madrid, Spain Malaga, Spain Malmo, Sweden Marseille, France Milan, Italy Monte Carlo, Monaco Montreux, Switzerland Moscow, Russia Munich, Germany Mykonos, Greece Naples, Italy Nice, France Normandy, France Oslo, Norway Oxford, Great Britain Pamplona, Spain Paris, France Plymouth, Great Britain Porto, Portugal Positano, Italy Prague, Czech Republic Provence, France Rhodes, Greece Rome, Italy Rothenburg ob Tauber, Germany Salzburg, Austria San Sebastian, Spain Santorini, Greece Santa Margherita, Italy Seville, Spain Sorrento, Italy Split,Croatia St. Moritz, Switzerland St. Petersburg, Russia Stockholm, Sweden Strasbourg, France Tallinn,Estonia Tuscany, Italy Valencia, Spain Venice, Italy Vienna, Austria Warsaw, Poland Waterford, Ireland Wurzburg, Germany York, England Zagreb, Croatia Zell Am See, Austria Zermatt, Switzerland Zurich, Switzerland Check-In Date: (MM/DD/YY) Check-Out Date: (MM/DD/YY) Number of Hotel Guests: Room 1 # of Adults 1 2 3 4 # of Children -- 1 2 Child Age 1 -- 2 3 4 5 6 7 8 9 10 11 Child Age 2 -- 2 3 4 5 6 7 8 9 10 11 Room 2 # of Adults -- 1 2 3 4 # of Children -- 1 2 Child Age 1 -- 2 3 4 5 6 7 8 9 10 11 Child Age 2 -- 2 3 4 5 6 7 8 9 10 11 Please wait while we check prices and confirm availability YOUR EUROPEAN HOTEL SPECIALIST B ook from over 1,000 quality hotels in Europe with eurovacations.com. W e know that the hotel you choose for your vacation in Europe can make your vacation special. Every hotel we offer has been inspected by our team of travel experts, and we know what makes a great hotel. As part of the Rail Europe Group, we've been helping travelers get the most out of their European vacation for more than 60 years. FLORENCE 4th Night Free Hotel Paris 11/7 to 12/29 /05 PRAGUE 4th Night Free Golden Star 11/1 to 12/27/05 LONDON 3rd Night Free Marlborough 12/19 to 2/28/06 Extra night will be automatically calculated into your price. England & Scotland : London, England Ireland France : Provence, France Paris, France Italy: Florence, Italy Rome, Italy Venice, Italy Spain : Barcelona, Spain plus Amsterdam, Netherlands , Munich, Germany , Vienna & Salzburg, Austria , Switzerland , and Eastern Europe SHOPPING CART 0 ITEMS Current Savings The more you book the more you save. Watch your savings grow with our shopping cart . Save more with each item you book! We have partnerships with major airlines and hotel chains. We offer you steep discounts when you Book Air + Hotel Our exciting, free newsletter and special e-deals alerts have great offers on European hotels, travel tips, and more! Click here to subscribe And don't worry, we have a very strict privacy policy Read our latest issue Home . Hotel . Air + Hotel . Car . Rail . Packages . How To Vacation In . View Shopping Cart Affiliates . About Us . FAQ’s . Help © 2004 Eurovacations.com. All rights reserved. Eurovacations® is a registered trademark of Eurovacations.com. Use of the Website constitutes acceptance of the Eurovacations Terms and Conditions and Privacy Policy . 1-877-471-3876 State of California Seller of Travel Certificate of Registration # 205-2601

European Vacation There's a

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