On some alternative criteria for justice between generations

This paper is concerned with Rawls' principle of just savings. Both the intergenerational maxi–min solution and the Nash equilibrium are analyzed in the context of a simple growth model and a specific preference structure. The results are compared to the Utilitarian solution. The maxi–min solution is intertemporally inconsistent and all the Nash equilibria are Pareto inefficient. The latter part of the paper analyzes intergenarational strong equilibria, the α-core and the β-core. It is shown that for the model in question the set of strong equilibria is empty, and that both the α- and β-cores are roughly speaking equal to the set of all Pareto efficient programmes of accumulation.     

An epidemiological study of injury in mines: implications for safety promotion

The role of various factors in coal mine-related injuries was investigated using a case-control design. The study setting was two neighbouring underground coal mines in India. Cases comprised mine workers (n = 150) who had sustained a prior mine-related injury from a population of 1000 underground workers. Controls were selected from those mineworkers with no history of a prior mine-related injury using frequency matching (n = 150) from the same source population. Data were collected from the cases and controls using a structured survey questionnaire. Based on the responses of the participants, each factor was grouped into three categories. High-low plots and Chi-square tests were conducted to explore the differences between the cases and controls. Bivariate logistic regression was run to estimate the crude odds of injuries, while multivariate logistic regression estimated the adjusted odds of injuries to the workers for the various variable categories. High-low plots and the Chi-square test clearly revealed that the cases and controls significantly differed in their responses for the variables studied. Accident-involved workers take more risks, are negatively affected, job dissatisfied, feel more production pressure, job stress, work hazards and are less job involved and are more dissatisfied with safety environment and social climate of the mines compared to the controls. The multivariate odds of injuries to high risk taking, negatively affected and job dissatisfied workers are 1.21, 9.34 and 2.00 times more compared to their lowest counterparts. Similarly, workers satisfied with the overall safety practice and safety equipment availability and maintenance are 1.5 and 3.12 times less likely to be injured than the workers with little or no satisfaction with the above factors. It is therefore concluded that negative affectivity and job dissatisfaction are the two major personal level factors that contribute more towards accident/injury in the mines studied. Identification and elimination/reduction of negative attitudes are of utmost importance.     

Energy use in eight rural communities in India

A study of eight rural communities in India indicates that levels of energy consumption vary widely among the communities and that consumption depends on socioeconomic and agroclimatic factors. Irrigation is the most significant factor influencing energy consumption and demand. Fuelwood is not used mainly by the low-income households but by the higher-income households. There is a progressive trend towards monetizationof fuelwood, animal wastes and agricultural residues. Energy planning for rural communities should be location and household-specific, and disaggregated information should be generated for this purpose using baseline surveys.     

Managerial risk-taking incentives, product market competition and welfare

Managers’ compensation may increase with the variance of the firm's profits. This paper investigates how this affects their choice of strategic variables, and how that affects managerial compensation. The social welfare aspects of this interaction are analyzed in a duopoly setting with uncertain linear demand and linear marginal cost. Compared to a situation in which the managers’ compensation does not depend on the variance of profits, social welfare may be either higher, lower, or remain unaffected, depending on the slope of the marginal cost curve and whether the competing firms produce goods that are demand substitutes or complements.     

Contents Volume 24 2003

Volume Contents

Contents Volume 24 2003     

Optimal and competitive programs in reachable multi sector models

Summary. We show that in multi-sector optimal growth models, where the technology satisfies a simple reachability condition, infinite horizon programs which satisfy the competitive conditions are optimal. We provide examples of a variety of production models where the reachability condition is satisfied. An example is also provided where the reachability condition is not satisfied and there are competitive programs which are not optimal. The results of the paper are of interest from the standpoint of decentralization in intertemporal economies. Received: March 24, 1994; revised version: October 10, 1998     

Exploring reallocation’s apparent weak contribution to growth

Two recent meta-analyses use variants of the Baily et al. (Brookings Papers Econ Act Microecon 1:187–267, 1992) (BHC) decompositions to ask whether recent robust growth in aggregate labor productivity (ALP) across 25 countries is due to lower barriers to input reallocation. They find weak gains from measured reallocation and strong within-plant productivity gains. We show these findings may be because BHC indices decompose ALP growth using plant-level output-per-labor (OL) as a proxy for the marginal product of labor and changes in OL as a proxy for changes in plant-level productivity. We provide simple examples to show that (1) reallocation growth from labor should track marginal changes in labor weighted by the marginal product of labor, (2) BHC reallocation growth can be positively correlated, negatively correlated, or uncorrelated with actual growth arising from the reallocation of inputs, and that (3) BHC indices can mistake growth from reallocation as growth from productivity, principally because OL is neither a perfect index of marginal products nor plant-level productivity. We then turn to micro-level data from Chile, Colombia, and Slovenia, and we find for the first two that BHC indices report weak or negative growth from labor reallocation. Using the reallocation definition based on marginal products we find a positive and robust role for labor reallocation in all three countries and a reduced role of plant-level technical efficiency in growth. We close by exploring potential corrections to the BHC decompositions but here we have limited success.