The effect of the establishment of an organized exchange on weak form efficiency: the case of Istanbul Gold Exchange

Evidence is presented from IGE (the Istanbul Gold Exchange) that an institutional regulation such as the establishment of an organized exchange is an important component of informational efficiency that should not be disregarded in the process of financial liberlization.     

Endogenizing leadership in tax competition

In this paper we extend the standard approach of horizontal tax competition by endogenizing the timing of decisions made by the competing jurisdictions. Following the literature on the endogenous timing in duopoly games, we consider a pre-play stage, where jurisdictions commit themselves to move early or late, i.e. to fix their tax rate at a first or second stage. We highlight that at least one jurisdiction experiments a second-mover advantage. We show that the Subgame Perfect Equilibria (SPEs) correspond to the two Stackelberg situations yielding to a coordination problem. In order to solve this issue, we consider a quadratic specification of the production function, and we use two criteria of selection: Pareto-dominance and risk-dominance. We emphasize that at the risk-dominant equilibrium the less productive or smaller jurisdiction leads and hence loses the second-mover advantage. If asymmetry among jurisdictions is sufficient, Pareto-dominance reinforces risk-dominance in selecting the same SPE. Three results may be deduced from our analysis: (i) the downward pressure on tax rates is less severe than predicted; (ii) the smaller jurisdiction leads; (iii) the ‘big-country-higher-tax-rate’ rule does not always hold.     

Product variety and the demographic transition

Why does the rate of population growth decline in the face of economic growth? We show that growing product variety may induce a permanent reduction in the demand for children and a continuous rise in income and consumption.     

Costs and benefits of housing subsidies to tenants from voluntary and involuntary rent control: a comparison between tenures and income groups

This paper estimates the economic subsides to housing for different groups using the 1988 Joseph Rowntree Memorial Trust sample survey of households.An Olsen type model is used to estimate consumber surplus to households from subsidized housing.These estimates are compared to costs, and housing services in the owner occupier market. Poorer families receive larger benefits than richer families. Transfer efficiency is not high; but the local authority sector receives the greatest benefits from controlled rents.     

Entrepreneurship,export orientation,and economic growth

In this paper the relationship between a country’s prevalence of new ventures and its rate of economic growth is investigated, while taking into account new ventures’ export orientation. It is generally acknowledged that new venture creation as well as export activity may both be important strategies for achieving national economic growth. However, to our knowledge no attempt has been made to investigate empirically the role of export-driven new ventures in economic growth. We focus on the national level and use data for a sample of 34 countries over the period 2002–2008. Our results suggest that, on top of a positive relation between entrepreneurial activity in general and subsequent macroeconomic growth, there is an additional positive effect of export-oriented early-stage entrepreneurship in higher-income countries. However, there is no such additional effect in lower-income countries.     

How do cities approach policy innovation and policy learning? A study of 30 policies in Northern Europe and North America

This paper reports on a study of current practice in policy transfer, and ways in which its effectiveness can be increased. A literature review identifies important factors in examining the transfer of policies. Results of interviews in eleven cities in Northern Europe and North America investigate these factors further.The principal motivations for policy transfer were strategic need and curiosity. Local officials and politicians dominated the process of initiating policy transfer, and local officials were also the leading players in transferring experience.A range of information sources are used in the search process but human interaction was the most important source of learning for two main reasons. First, there is too much information available through the Internet and the search techniques are not seen to be wholly effective in identifying the necessary information. Secondly, the information available on websites, portals and even good practice guides is not seen to be of mixed quality with risks of focussing only on successful implementation and therefore subject to some bias. Officials therefore rely on their trusted networks of peers for lessons as here they can access the ‘real implementation’ story and the unwritten lessons. Organisations which have a culture that is supportive of learning from elsewhere had strong and broad networks of external contacts and resourced their development whilst others are more insular or inward looking and reluctant to invest in policy lessons from elsewhere. Solutions to the problems identified in the evidence base are proposed.City to city policy transfer is a very active process in the field of transport. Not enough is yet understood about its benefits or the conditions under which it is most effective. Such understandings should help to promote and accelerate the uptake of effective and well matched policies.     

Technology transfers and the clean development mechanism in a North–South general equilibrium model

This paper analyses the potential welfare gains of introducing a technology transfer from Annex I to non-Annex I in order to mitigate greenhouse gas emissions. Our analysis is based on a numerical general equilibrium model for a world-economy comprising two regions; North (Annex I) and South (non-Annex I). In a cooperative equilibrium, a technology transfer from the North to the South is clearly desirable from the perspective of a ‘global social planner’, since the welfare gain for the South outweighs the welfare loss for the North. However, if the regions do not cooperate, then the incentives to introduce the technology transfer appear to be relatively weak from the perspective of the North; at least if we allow for Southern abatement in the pre-transfer Nash equilibrium. Finally, by adding the emission reductions associated with the Kyoto agreement, our results show that the technology transfer leads to higher welfare in both regions.     

On the Stationarity of Current Account Deficits in the European Union

In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit‐root panel data testing, namely (i) the identification of which panel members are stationary, and (ii) the presence of cross‐sectional dependence. For this purpose, we employ an AR‐based bootstrap approach to the Hadri (2000 ) test. While there is only mixed evidence that current account stationarity applies when examining individual countries, this does not appear to be the case when considering panels comprising both EU and non‐EU members.     

The effect and moderation of gender identity congruity: Utilizing “real women” advertising images

The present article examines the predictive ability of gender identity congruity in explaining women's responses to advertising appeals. The contributions of the article are twofold: (1) to demonstrate whether advertisements that are congruent with female consumers' gender identities elicit strong positive responses and (2) to identify the factors that moderate/mediate the impact of gender identity congruity on consumer responses to advertisements. The research findings provide evidence of the ability of gender identity congruity to elicit positive responses to advertising appeals. The relationship between gender identity congruity and responses to the advertisement is mediated by advertising involvement. The moderating roles of national culture, physical concern, and physical view are also supported. Overall, the congruity theory provides a powerful framework to examine consumer responses to gender portrayals in advertising. ©2009 Wiley Periodicals, Inc.