“Womb for Rent”: International Service Trade Employing Assisted Reproduction Technologies (ARTs)

Infertility affects approximately 2–3 million married couples in the USA and a larger cohort of unmarried men and women. For those not inclined to adopt, science has provided another option, one based on assisted reproduction through artificial insemination, commonly known as in vitro fertilization (IVF). Under this framework a woman, designated as a “surrogate”, bears a baby on behalf of the intended parents with the objective of relinquishing her rights to the child after birth. The subcontract for the services of a “surrogate” or more specifically for the use of her “womb” can be viewed as part of the literature on outsourcing of production by a vertically integrated family. The lack of universal enforcement of “surrogacy” contracts in the USA creates a demand for outsourcing of surrogacy services. One beneficiary of this uncertainty in enforcement is India which provides gestational services to intended international parents.     

On the transaction values of land use rights in rural China

Land Use Rights (LURs) in China affect farmers’ productivity through investment incentives and the way land is allocated across households. LURs have implication and trade-offs between equity and growth. This paper examines how Chinese farmers might respond if the Chinese government made it legal for farmers to buy or sell LURs. Livelihood choices, labor substitution, market infrastructure, a lack of property right protections, entrepreneurship, bureaucracy, and political will are all influential factors that will determine whether such a program would work. The purpose of this paper is to examine the economics of transaction in LURs, estimate the value at which LURs could transact in equilibrium, and to analyze factors that would affect these price changes. We evaluate farmer’s intention to buy and sell LURs and how much they are willing to pay and receive for LURs.     

Survey measures of risk aversion and prudence

This paper utilizes a thought experiment conducted by the Bank of Italy to estimate absolute and relative risk aversion along with absolute and relative prudence for a broad cross-section of Italian households. Upper and lower bounds are calculated for each parameter, and comparisons are made across socio-demographic groups. Evidence is found of decreasing absolute risk aversion, decreasing absolute prudence, increasing relative risk aversion, and increasing relative prudence.     

Computer knowledge and earnings: evidence for Australia

This paper uses data on wage and salary workers in Australia in 1993 to examine the relation between computer knowledge and earnings. A unique feature of the data set that is used is detailed information on the types and levels of computer skills possessed by individual workers. The main objectives of the study are to contribute to understanding the magnitude and sources of the relation between computer knowledge and earnings. Similar to existing research it is found that there is a large and significant return to computer knowledge, but that the magnitude of the return is substantially reduced in regressions that include detailed occupation controls. Using the detailed information on workers’ computer skills the main finding is that earnings are significantly positively related to the number of types of skills and average level of skills possessed by a worker.     

The NBA and the influx of international basketball players

The determinants of salaries for professional athletes in the National Basketball Association (NBA) are examined to investigate how international athletes have fared relative to athletes trained in the United States. It is found that international basketball players were paid a large premium above other players of similar skills and characteristics for the 1996–97 and 1997–98 seasons, after which the premium disappeared. This temporary premium is likely attributable to a?‘winner's curse’?experienced by NBA teams before investing significant resources in scouting and evaluating international players.     

Construction of an economic index to measure the causes of economic insecurity

This paper is an updated study on the causes of economic insecurity in the United States. The authors have constructed an aggregate composite index that measures objectively the major causes of economic insecurity (CEI) in the United States. The CEI index consists of 11 variables that can cause economic insecurity. The time period under investigation is 1960 through 2001. A rising CEI index indicates that the causes of economic insecurity in the United States have increased in relative importance, which results in an increase in economic insecurity. Conversely, a falling CEI index indicates that the causes of economic insecurity have declined in relative importance, which results in a reduction of economic insecurity. However, despite substantial economic growth in the American economy from 1960 through 2001, the CEI index overall showed little improvement. The major conclusion is that the CEI index was 9 percent higher in 2001 than it was in 1960. This result was due largely to the increase in divorce, violent crime, rising out-of-pocket expenditures for health care, inflation, and unemployment. The results for subperiods are dramatically different, and we think more interesting, than the overall results. During the 1960s, there was a small decline in the CEI index. The 1970s showed a dramatic increase in the CEI index, which reflected both high unemployment rates and inflation rates during this period. The 1980s experienced fluctuating levels in the index but little overall change, and the 1990s experienced a sharp decline in the CEI index due largely to a robust economy. The CEI index has increased more recently, which reflects largely the recent 2001 business recession. The correlation coefficient of the CEI index with the University of Michigan's well-known Index of Consumer Sentiment is ?676. This figure shows that as the CEI index rises, consumer sentiment about the American economy becomes pessimistic and negative.     

Impacts of monetary and macroeconomic factors on food prices in eastern and southern Africa

Eastern and southern Africa has been experiencing relatively large increases in real food prices since the early 1980s. Real food prices in some African countries grew as much as 11% per year during the 1980-1996 period. The huge volatility in food prices coincided with the implementation of structural adjustment programmes in several African countries. This study examines the impacts of monetary and macroeconomic factors on real food prices in eastern and southern Africa. Using the technique of cointegration and error correction modelling to test the long-run relationship between real food prices and the factors that influence their behaviour in selected African countries. Demand elasticities for food are estimated for selected countries. The empirical results show that changes in domestic food production, coupled with income, trade, exchange rate and monetary policies have significant impacts on real food prices, with wide implications for food availability and food security in the region.     

A multivariate cointegrated model testing for temporal causality between exports and outward foreign investment: the Spanish case

Historically, outward foreign direct investment has been contemplated as an alternative way of firms' internationalization. In this line, a relational substitution between exports and foreign direct investment would be expected. However, this seems to contrast with recent developments in the ‘new trade theory’ which show that the volume of trade and the emergence of multinational firms may be positively related one to the other. This paper investigates if some empirical evidence exists either supporting a substitution or a complementary relationship between both forms of internationalization. With this aim, an aggregate time series approach was adopted using quarterly aggregate data (seasonal adjusted) from the Spanish economy covering the period 1970.I–1992.III. A vector autoregressive model was employed for both multivariate cointegration analysis and Granger temporal causality testing. The strength and direction of causal relationships are shown through the dynamic variance decomposition and the impulse response technique. Once controlling for relative market size and prices, the results provide evidence of a positive long-term Granger causality going from foreign direct investment to exports, although not in the opposite direction.     

Efficiency characteristics of a market for state contingent claims

This paper concludes that a market for state-contingent claims (UK horserace betting) displays evidence of pervasive but heterogeneous forms of inefficiency, in significant contrast to earlier investigations. Using hitherto unavailable data, comparison of notional returns implicit in parallel sets of bookmaker and parimutuel odds identifies inefficiency in terms of zones of distinct but contrasting forms of cross-;market returns differential. The inefficiency is rationalized in terms of both buyer and supplier behaviour; its durability is explained in terms of limited arbitrage opportunities.     

Explorations - Introduction: Towards Lesbian,Gay, and Bisexual Perspectives in Economics: Why and How They May Make a Difference

The economics profession has only recently begun to include research on lesbians and gay men, but we argue that a lesbian economics has long existed, with documentation of anti-lesbian discrimination, discussion of its private and social costs, and practical work for change. This tradition, along with the newer traditions built upon work with gay men and bisexual people, provides a basis for feminists to expand work in economics on lesbian and gay issues. The articles in the symposium propose ideas for future research, for learning from other disciplines, and for creating a more welcoming academic climate.