MODELING THE ECONOMIC EFFICIENCY OF IRRIGATION WATER SUPPLY IN DRY AND HUMID REGIONS

This paper tests the economic efficiency of irrigation water as supplied by single purpose and by general purpose public utilities in dry and humid regions, respectively, in terms of underprovision and overprovision. The proposed methodology mixes conceptual frameworks developed by Farrell (1957) and Brueckner (1979, 1982) . A typical agricultural production function uses the institutional attributes of the water-providing authority as an argument. Both short-run and long-run estimates are provided. Although in both cases irrigation water is heavily subsidized, there is no evidence of systematic underprovision or overprovision for the dry north and west, under the single purpose Irrigation Authority. However, water is oversupplied to more humid areas by the general purpose Central Water Authority. Empirical estimates confirm that the efficiency of the single purpose Irrigation Authority cannot be attributed to irrigation technique. The general purpose Water Authority suffers from inefficiency in coordinating rainwater availability with the institutional water supply.     

THE DETERMINANTS OF CAPITAL INTENSITY IN FOREIGN-OWNED MANUFACTURING ACROSS U.S. REGIONS

This paper empirically tests hypothesized influences on the capital intensity of foreign direct investment (FDI) among the 48 contiguous United States. A theoretical profit maximizing model of the firm is developed linking capital intensity to traditional variables (the prices of labor and capital services); the model also takes account of the price of energy, agglomeration effects, educational levels, the importance of labor unions, and state and local public capital. The main focus is on the effects of public capital on the capital intensity of FDI. Public capital is disaggregated as follows: highway, sewer and water, and other (primarily buildings). The operational model defines FDI as the 1986 gross value of property, plant, and equipment of manufacturing affiliates of firms with headquarters in Canada, France, Germany, Japan, the Netherlands, Switzerland, and the United Kingdom. Findings are reported both for total manufacturing and for manufacturing disaggregated into five industry groups. Generally, the results emphasize that highway infrastructure and sewer and water public capital act as powerful incentives to attract capital-intensive FDI across the 48 contiguous United States.     

MIND THE GAP: UNEMPLOYMENT IN THE NEW EU REGIONS

Abstract.  The paper surveys the theoretical and empirical literature on regional unemployment during transition in Central and Eastern Europe. The focus is on optimal speed of transition (OST) models and on comparison of them with the neo-classical tradition. In the typical neo-classical models, spatial differences essentially arise as a consequence of supply side constraints and institutional rigidities. Slow-growth, high-unemployment regions are those with backward economic structures and constraints on factors mobility contribute to making differences persistent. However, such explanations leave the question unanswered of how unemployment differences arise in the first place. Economic transition provides an excellent testing ground to answer this question. Pre-figuring an empirical law, the OST literature finds that the high degree of labour turnover of high unemployment regions is associated with a high rate of industrial restructuring and, consequently, that low unemployment may be achieved by implementing transition more gradually. Moreover, international trade, foreign direct investment and various agglomeration factors help explain the success of capital cities compared to peripheral towns and rural areas in achieving low unemployment. The evidence of the empirical literature on supply side factors suggests that wage flexibility in Central and Eastern Europe is not lower than in other EU countries, while labour mobility seems to reinforce rather than change the spatial pattern of unemployment.     

AN INTERPRETATION OF THE SIGNIFICANCE OF THE SECOND BATTLE OF WATERLOO

Good governance is a pre-condition for economic development. Good governance, in turn, requires peace. The second Battle of Waterloo, in Sierra Leone, showed what the West can do in this regard. A small military intervention, not hemmed in by the typical restrictions on what 'peacekeepers' can do, made a huge difference to the development prospects of the country. This has important implications for the use of external military forces as part of the overall strategy for poverty reduction in Africa.     

THE APPLICABILITY OF THE TRADITIONAL THEORY OF ECONOMIC POLICY

Abstract. The traditional theory of economic policy requires targets, instruments, an empirical economic model, and a social welfare or criterion function to be specified in order to derive the optimal economic policy. Empirical studies of reaction functions suggest that economic policy is carried out in some systematic manner, subject to interference from political factors. This survey addresses the problems of specifying, estimating and applying an economic model when economic policy is following a path specified by a reaction function. Attention is paid to rational expectations, the Lucas'critique, and the policy neutrality proposition. Lack of knowledge of the policy maker's objective function poses the most serious difficulty when applying the theory of economic policy. Various methods of determining this function are reviewed, and the possibility that policy makers might be satisficing is discussed. The role played by political factors is considered in the light of the public choice literature.     

TIME IS OF THE ESSENCE: THE IDEA OF THE COROLLARY OF THE COASE THEOREM AND A POSSIBLE APPLICATION

Extant theories on the application of the Coase Theorem to the development market have focused on the effects of zoning on the environment or upon property prices. As an original contribution to the Coasian research on the interface between the development market and the statutory planning machinery, this article seeks to develop a Coasian proposition informed by what has been called the corollary of the Coase Theorem, which allows for an empirical examination of the impact of property prices on decisions to use resources under different institutional arrangements. Our proposition is that the procedural steps taken to consume resources are not contingent on property prices unless the associated transaction costs are positive or property rights ambiguous.     

THE DEVELOPMENT OF THE RIGHT TO BUY AND THE SALE OF COUNCIL HOUSES

The history of the 'Right to Buy' local government-owned council houses is examined in this paper. It is seen that the right of councils to sell was transformed into the right of tenants to demand such sales. Peter Walker had a pivotal role in this process. Later, Michael Heseltine and Margaret Thatcher emerged as key political players. The other intellectual drivers of this reform are also discussed.     

THE ECONOMICS OF THE GREENHOUSE EFFECT

Abstract. The recognition that economic activity is contributing to climatic change, with attendant costs that may be of large magnitudes, has set in motion a substantial research effort. This paper seeks to review the contribution of economics to analysis of the greenhouse effect and to the policies and instruments suggested as means of mitgiating its damage.
A brief overview of the causes and consequences of global warming is given, and a number of energy-economy forecasting models are examined. As the costs of global warming depend upon the extent to which preventative and adaptive measures are undertaken, the techniques available to evaluate these costs are surveyed.
We examine extant targets for greenhouse gas emissions reduction, and explore the frameworks within which optimal policy targets can be designed. The paper also considers the narrower question of (minimized) abatement costs, and surveys the types of models used to estimate them.
The merits of alternative policy instruments are examined, paying particular attention to the role that risk and uncertainty, and the costs of monitoring and implementation of policy under conditions of imperfect information, may play in the choice of instruments. Problems of international co-operation in the development of abatement policy are examined, and we consider the compensations (across both nations and generations) that are likely to be necessary conditions for effective action.     

REPAIRING THE CRACKS: THE SUPERVISORY ROLE OF THE BANK OF ENGLAND POST-NORTHERN ROCK

Last autumn's run on Northern Rock was arguably of more political than economic importance. However, it is significant that most of the deposits were lost from internet and postal accounts rather than withdrawn by the picturesque queues of small investors, which attracted so much media attention, making it possibly the first cyber run on a bank. More can be learnt from failures than successes, and it now seems appropriate to consider the longer-term implications of the Northern Rock affair for the supervisory responsibilities of the Bank of England.     

中小企业标准暂行规定

近日，国家经贸委、国家计委、财政部、国家统计局联合发布了《中小企业标准暂行规定》(以下简称《规定》)，该《规定》的出台，增强了《中小企业促进法》的可操作性，为今后更好地贯彻实施《中小企业促进法》，为各级政府、中小企业服务机构明确扶持和服务对象，为进一步制定和落实中小企业的各项优惠政策。     

天后归来

娱乐圈里,过惯光环生活的又能甘心平淡的明星们可谓凤毛麟角,以下几位＂隐后＂复出即是例证。除了各种理由四处吸金,天后们投资理财也各有路数。     

THE CHOICE OF MODEL IN THE CONSTRUCTION OF INDUSTRY COEFFICIENTS MATRICES

Kop Jansen and ten Raa's (1990) characterization of product-by-product input–output tables was adopted by the United Nations (1993). Recent OECD and several EU funded projects, however, used industry-by-industry tables, which raises comparable issues concerning their construction. We show how their two main construction models are instances of the transfer principle, with alternative assumptions on the variation of input–output coefficients across product markets. We augment the theory by formulating desirable properties for industry tables and investigate the so-called fixed product and fixed industry sales structure models, which are used by statistical institutes. The fixed industry sales structure model is shown to be superior from an axiomatic point of view.