Cross-subsidization Due to Inframarginal Support in Agriculture: A General Theory and Empirical Evidence

A general theory of cross-subsidization due to inframarginal support is developed. Two sources of output distortion are identified: exit deterrence and extramarginal output. Some firms would not be in business without the subsidy. Cost savings due to declining average costs are always greater than the losses incurred where price equals marginal cost. Moreover, it is theoretically possible for inframarginal subsidies to expand output more than equivalent fully coupled subsidies. Empirical analysis of U.S. dairy subsidies isolates these components of cross-subsidization and finds distortions from inframarginal support to be substantial, with implications for trade negotiations, dispute settlement, and policy formulation.     

Beach safety education for primary school children

Childhood drowning remains a serious public health problem worldwide. The Australian Water Safety Council has set as one of its highest priorities the reduction of drowning deaths in children aged 0–14 years. However, concerns have recently been raised that many students completing primary school still lack the ability to recognize potential aquatic risks, cope with emergencies or assist someone else in danger. In this study, 107 primary school children aged 11–12 completed a one day training programme led by surf lifesaving instructors. Pre, post and eight week follow-up measures showed statistically significant improvements in recognition of the red ‘beach closed’ flag, aquatic safety signs, how to identify a rip current and choosing the safest place to swim at a beach that included a rip current in the picture. Following training students were more willing to provide first aid assistance to family members and friends in an emergency situation. Findings reinforce the value of school-based training that provides a general foundation for aquatic safety, with the caveat that current programmes must be evaluated to ensure their content has a robust prevention focus.     

Explaining fiscal decentralization and the role of ethnic Diversity

This paper considers the causes of fiscal decentralization with a specific focus on the role of ethnic diversity. To do so, I employ an instrument for ethnic diversity based on the origin of anatomically modern human life. Using two measures of decentralization that capture decision making autonomy and accounting for the depth of divisions between ethno-linguistic groups using the structure of language trees, I find that ethnic diversity has a positive effect on the degree of decentralization. It is the amount of fractionalization towards the leaves of the trees, where groups are more numerous and less distinct, that drive decentralization.     

Maintenance workers and new technology: the case of Longbridge

The introduction of new technology at BL's Longbridge plant was accompanied by changes in organisation and practice of maintenance workers. This article examines the management policies behind such changes, and the dynamic relationship between technology, skill and managerial initiative in their implementation.     

The taxation of capital income in an open economy: the importance of resident-nonresident tax treatment

The authors develop a simulation model of the United States and the rest of the world to demonstrate how international capital mobility alters the incidence and capital formation incentives of taxes on capital income. The model explicitly recognizes that U.S. and foreign investors hold a different mix of assets in each country. Only a modest degree of international mobility is necessary to substantially alter closed-economy patterns of tax incidence. Differences in the tax treatment of residents and foreigners are particularly important in evaluating tax reductions at the individual level or the integration of corporate and individual income taxes.     

Democracy and trade unions*

In the context of the current debate over the Government's proposals to regulate by statute the internal democratic arrangements of trade unions, this article examines the origins of the debate, the case for legislative intervention, the actual proposals and their wider implications.