Expectations,substitution, and scrapping in a putty-clay model

The paper presents a framework for analyzing the effect of changing expectations about future prices on a firm's choice of technique, and on its anticipated scrapping of capital equipment. Assuming a putty-clay technology, particular attention is paid to the way in which the scrapping age depends on the degree of ex ante input substitution. Numerical illustrations — based on data for Norwegian manufacturing for the years 1964–1983, an ex ante technology represented by a Generalized Leontief cost function in materials, energy, labor, and capital, and an ARMA representation of the price expectation mechanism — are presented. The results indicate that the price changes in this period may have had a substantial impact on planned scrapping, and on the chosen production techniques.     

CONSUMPTION GROWTH ACCOUNTING

The methodology in this paper combines an input–output structural decomposition approach with the supply-side perspective of mainstream growth accounting. In explaining the intertemporal change in consumption per worker, three sets of effects are distinguished. First, contributions due to several types of technological changes are considered. Second, effects caused by changes in international trade are discerned. Third, composition effects that reflect structural shifts in demand (including changes in tastes) are quantified. As an empirical illustration, we analyze the developments in the U.K. between 1979 and 1990.     

Popularising Delphi method

The article reports on a methodical part of a combined substantive and methodical investigation experimenting with a new type of Policy Delphi method. The common problem defined for both parts was the question whether Delphi method could be transformed in an instrument of controlling technological change by employees. The question was answered positively by the participating (bank) employees, all union members engaged with an automatisation project, themselves. Self rating scales, an evaluation questionnaire and numerous data collected about the research process showed that the most relevant social categories of participants managed to serve as “experts” according to the high levels of cognition, effort, involvement and self-confidence required in a Delphi research project. Participants with low job level, women and non-trained union members joined in very well. The special steps required to broaden a successful participation of all categories, particular methods and techniques of information transmitting questioning and reporting, did not violate the quality of scientifically valid information gathering. So the result was a practical and scientific instrument.     

The economics of urban yard space: An “implicit-market” model for housing attributes

A theoretical housing model is developed embodying the approach of the recent hedonic price literature. Instead of focusing on a scalar “housing service” consumption measure, the model portrays housing as a commodity with two attributes: floor space and yard space. Developers react to a consumer bid-rent function, which relates dwelling rent to floor space, yard space, and location, in choosing the profit-maximizing characteristics of their housing complexes. The spatial behavior of the developer's choice variables is investigated (an interesting question is whether yards are larger farther from the urban center), and a comparative static analysis of the housing market equilibrium is presented.     

Linking Public Investment to Private Investment. The Case of Spanish Regions

Public investment constitutes one of the main instruments of regional policies. The existence of a direct link between infrastructure and regional income per capita is usually accepted. Literature also describes a positive effect of public investment on private capital accumulation. This paper seeks to provide new empirical evidence on this latter relationship for the case of Spanish regions over the period 1965–1997 using panel data methodology. The results show a positive effect of productive and social public investment (especially in education) on private investment. The spillover effects generated by the productive infrastructures located in other regions do not seem to encourage the private investment in neighbouring regions. Public consumption and interest rate exert a negative influence on private capital accumulation. These results are robust to changes in the econometric specification.     

Benchmarking in the Dutch Waste-Water Treatment Sector

The Dutch water boards have recently completed a performance measurement and evaluation project for waste-water treatment. This project was intended to strengthen the boards' accountability to their stakeholders and to identify starting points for performance improvement. The Balanced Scorecard was used as a framework to develop a broad set of performance indicators. This article describes the benchmarking project and how the Dutch water boards intend to use the results to improve performance. Finally, the Dutch project is compared with the UK's Best Value project.     

Versicherungsvertragliche Anzeigepflicht und Garantiehaftung für culpa in contrahendo

To sanction the insurant’s obligation to disclose the risk-relevant circumstances by the insurer’s exemption from performance does not comply with the ordinary pattern of pre-contractual liability. Instead of making the insurant responsible for the consequences of his breach of duty, the German Insurance Act subjects him to a guarantee which is comparable to the one imposed by the German Civil Code in the case of initial impossibility. The insurant has to guarantee that the facts which he did not, or at least not entirely, disclose do not cause any obligation of the insurer. The structure of this sanction is equivalent to the insurer’s so-called liability of performance. But contrary to the latter it can be justified by the specific importance of the insurant’s pre-contractual obligation of disclosure.