Book Reviews

Colin Macandrews (Ed.), Central Government and Local Development in Indonesia, Singapore: Oxford University Press, East Asian Social Science Monographs, 1986, pp. 270, 36 Tables, 2 Figures, 4 Maps.

Himpunan Peraturan Perundang-undangan Republik Indonesia di Bidang Ketenaga-kerjaan [Labour Legislation in Indonesia], Vols I-III, Jakarta: P.T. Twins, 1986.

Michael A. Costello, Thomas R. Leinbach and Richard Ulack, with Marilou Palabrica-Costello and Bambang Suwarno, Mobility and Employment in Urban Southeast Asia: Examples From Indonesia and the Philippines, Boulder: Westview Press, 1987, pp. xvi + 191. $Us 26.50.

Susan Abeyasekere, Jakarta: A History, Singapore: Oxford U.P., 1987, pp. xvii + 280. Cloth: $45.00.

David P. Chandler and M.C. Ricklefs (Eds), Nineteenth and Twentieth Century Indonesia: Essays in Honour of Professor J.D. Legge, Clayton, Vic. : Monash University Centre of Southeast Asian Studies, 1986, pp. 281. $14.00.

Graeme J. Hugo, Terence H. Hull, Valerie J. Hull, Gavin W. Jones, The Demographic Dimension in Indonesian Development, Singapore: Oxford University Press, 1987, pp. xxv + 417. $50.00.

I Ketut Nehen and Ian R. Wills, Land Preparation in West Java: Benefits and Costs of Alternative Techniques, Agency For Agricultural Research and Development, Indonesia, and International Rice Research Institute, 1986, pp. xii + 159.

Michael Smith et al., Asia's New Industrial World, London: Methuen, 1985, pp. vi + 136. £2.95.

Australian Institute of Urban Studies, Review of Australian Assistance to the Indonesian Water Supply and Sanitation Sector, A Report for the Australian Development Assistance Bureau, 1986, pp. xxxiii + 305, $26.00 plus postage.     

The impact of the financial and economic crisis on world trade and trade policy

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The impact of the financial and economic crisis on world trade and trade policy     

Qual der Wahl? – Finanzpolitik zwischen Konsolidierung und Konjunkturstabilisierung

Einige ?konomen und Politiker fordern, den aktuellen wirtschaftlichen Abschwung in Deutschland durch ein Konjunkturprogramm zu d?mpfen. In der Regel werden Steuererleichterungen, eine Senkung der Sozialabgaben oder eine Erh?hung der ?ffentlichen Investitionen vorgeschlagen. Welche Wirkungen h?tten diese Ma?nahmen auf Einkommen, Besch?ftigung, Preisentwicklung und Budgetsaldo? Kann der Einsatz dieser Instrumente tats?chlich eine Konjunkturstabilisierung herbeiführen? Prof. Dr. Ullrich Heilemann, 63, ist Direktor des Instituts für Empirische Wirtschaftsforschung (IEW) der Universit?t Leipzig; Stefan Wappler, 30, Dipl.-Volkswirt, Doz. Dr. Georg Quaas, 56, und Hagen Findeis, 26, Dipl.-Volkswirt, sind dort wissenschaftliche Mitarbeiter.     

Theoretically robust but empirically invalid? An experimental investigation into tax equivalence

Summary. The idea that the final distribution of the tax burden (economic incidence) does not depend on the initial distribution of tax liabilities (statutory incidence) is referred to as the Liability Side Equivalence principle. This paper tests this principle in the laboratory and finds that subjects who actually have to pay the tax carry a higher tax burden. It is argued that this violation of Liability Side Equivalence is due to the fact that a change in the distribution of tax liabilities induces a shift in behaviorally relevant social norms. This shift, in turn, affects the impact of the tax. Our results explain some striking empirical observations and have important theoretical and practical implications.     

On optimal portfolio diversification with respect to extreme risks

Extreme losses of portfolios with heavy-tailed components are studied in the framework of multivariate regular variation. Asymptotic distributions of extreme portfolio losses are characterized by a functional γ _ξ =γ _ξ (α,Ψ) of the tail index α, the spectral measure Ψ, and the vector ξ of portfolio weights. Existence, uniqueness, and location of the optimal portfolio are analysed and applied to the minimization of risk measures. It is shown that diversification effects are positive for α>1 and negative for α<1. Strong consistency and asymptotic normality are established for a semiparametric estimator of the mapping ξ ↦ γ _ξ . Strong consistency is also established for the estimated optimal portfolio.     

Grand Societal Challenges and Responsible Innovation

Grand societal challenges (GSCs) represent complex, multi-level, multi-dimensional problems that require concerted efforts by various actors – public, private, and non-profit – to be successfully addressed. Businesses – alone or in conjunction with governmental and non-profit organizations – are relevant actors in this regard, as they represent a source of innovation. Responsible innovation (RI) is a framework that allows for the governance and evaluation of innovations with regard to their potential harmful consequences and positive contributions to societal challenges. Moreover, it stipulates that this evaluation process should be facilitated by appropriate governance structures at various levels. The aim of this article is to expand theorizing on GSCs and RI and to encourage research that explores their links. We outline pertinent characteristics of GSCs that make current conceptualizations of corporate social responsibility and social innovation limited in addressing GSCs. We explicate the reflexive and participative capacities of RI governance as a complementary and promising way forward. Finally, we introduce the contributions to this Special Issue as illustrations of relevant theoretical and empirical groundwork around GSCs and RI, and outline the agenda for future research.