Portfolio Choice in the Presence of Non-Tradable Income: An Experimental Analysis

Abstract. This paper reports the results of an experiment on portfolio choice in the presence of non-tradable income. The non-tradable income part could either be riskless or risky (background risk). In many cases, we observe behavior that is qualitatively consistent with the predictions of normative theory. However, correlations between financial and non-tradable wealth are neglected. The computation of aggregated risk profiles helps subjects to partly overcome the deviations from normative theory due to neglect of correlations.     

New borders: Evidence from the former Soviet Union

New Borders: Evidence from the Former Soviet Union. — We study the effects of trade barriers and the persistence of past linkages on trade flows in the former Soviet Union (FSU). Estimating a gravity equation on 1987–1996 trade between nine Russian regions and fourteen FSU republics, we find that Russian regions traded nearly twice as much with each other as with republics in the reform period (1994–1996). In contrast, they did not trade significantly more with each other than with republics in the prereform period (1987–1990). Our results suggest that the bias towards domestic trade in the reform period is primarily a result of tariffs. We also find that past linkages, such as infrastructure, production and consumption chains, and business networks, have limited the reorientation of trade.     

Microelectronics in the Clothing Industry: Firm Strategy and the Skills Debate

This article examines the impact of CAD/CAM on the UK clothing industry. It questions the extent to which computerisation has led to a greater choice over production strategy and argues that upskilling has not occurred.     

Klassische Nationalökonomie gestern und heute

Ohne ZusammenfassungDieser Artikel ist dieungekürzte Fassung des Beitrages Klassische Nationalökonomie des Verfassers zum Staatslexikon (Band IV).     

Why won't managers co-operate? Innovation and productivity in engineering

Drawing from her experience of participant-observation in an electrical engineering factory Caroline White contributes to the debate on Britain's continuing industrial problems. She concludes that the fundamental opposition of capital and labour in the capitalistproduction process explains the failure to tap the workers' reservoir of both commitment and creativity.