Globalization versus Protectionism: Consequences for Long–Term Growth and Welfare in the South

This paper develops an endogenous growth model with two intrinsically symmetric regions, the North and the South. The analysis shows that globalization tends to increase long–term economic growth, but the South may become deindustrialized and suffer a welfare loss. I none the less find that protectionism need not reverse international inequalities: on the contrary, owing to locational hysteresis the South may lageven further behind. However, with continued globalization welfare in the South will unambiguously increase.
JEL Classification Numbers: F12, F13, F15.     

A general qualitative technique for the comparison of economic structures

Quantitative methods normally do not fully exhaust nor sufficiently show the structural information contained in sets of data. Therefore the authors introduce a new general technique for analyzing structures which is based on qualitative methods. The proposed technique can be divided into several steps. First, the given structural information is prepared with the help of graph theoretical tools. Then the obtained results are condensed in several steps to manageable vectors (key values), the most important step being the construction of graph theoretical decay patterns. These strongly condensed data allow the use of statistical methods and offer the chance to compare even a large number of structures simultaneously. After having introduced the necessary theoretical tools, the authors then present the results of some empirical investigations which showed the usefulness of the proposed technique. Compared with the corresponding quantitative methods, the empirical investigations also showed that our technique is relatively robust with respect to short-comings in the primary material. This result opens up opportunities for obtaining more actual yet costsaving structural information.     

The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: Does age of relationship matter?

The authors examine the effect of relational constructs (e.g., satisfaction, trust, and affective and calculative commitment) on customer referrals and the number of services purchased, as well as the moderating effect of age of the relationship on these relationships. The research reported, based on data obtained from a large sample of customers of an insurance company, combines archival and survey data. The results provide evidence that supports the moderating effect of relationship age on the relationship between satisfaction, affective and calculative commitment, and the number of services purchased. Peter C. Verhoef is a postdoctoral researcher affiliated with the Department of Marketing and Organization in the School of Economics at Erasmus University, Rotterdam. He is also a member of the Erasmus Research Institute in Management (ERIM). In 2001, he received his Ph.D. in marketing from Erasmus University. In his dissertation, he investigated how companies can affect the lifetime value of customers. His research interests include customer relationship management, waiting times, and private labels. His work has been or will be published in theJournal of Consumer Psychology, Journal of Retailing, Decision Support Systems, and various other journals. Philip Hans Franses is a professor of applied econometrics at the Econometric Institute and a professor of marketing research in the Department of Marketing and Organization, both at Erasmus University, Rotterdam. His research interests include applied econometrics, marketing, empirical finance, political science, and environmetrics. He publishes on these topics in various journals. Janny C. Hoekstra is a professor in direct marketing at the University of Groningen. Her research interests include the development of the marketing concept, market orientation, customer lifetime value, direct marketing, and e-commerce. She has published papers in theJournal of Retailing, Industrial Marketing Management, European Journal of Marketing, Journal of Direct Marketing, andJournal of Market-Focused Management, among others.     

Unemployment and Labor–market Reform: A Contract Theoretic Approach

Why do many democracies fail to reform their labor–market institutions? To answer this question we study the feasibility of reforms that include compensation to insiders for the removal of labor–market regulations. Under asymmetric information, a reformer who wants to buy the approval of voters has to pay them an informational rent in addition to the pure costs of compensation that would arise under symmetric information. In this setting, unemployment may be constrained Pareto–efficient. Labor–market reforms may fail politically because none of the reform packages proposed wins the approval of a majority of voters. We also discuss the role of capital taxation in a reform program. JEL classification: D70; E61; J68     

THE EFFECT OF GRADING PRACTICES ON GENDER DIFFERENCES IN ACADEMIC PERFORMANCE

This paper adds to the debate about the sources of the gender gaps in student outcomes by highlighting explanations related to interactions between teachers and students. The evidence comes from the lower secondary school in Norway. The teachers' grading practices are the focal point of the analysis. First, it is shown that girls are exposed to easier grading than boys. Thereafter, evidence is provided that both boys and girls are negatively affected when the teacher practises easy grading. The boys' responses to easy grading are more uniformly negative than the girls' responses. Some exploratory analyses that make use of information about the students' school motivations are provided to make sense of these findings.     

Collective decisions with interdependent valuations

Many collective decision problems have in common that individuals’ desired outcomes are correlated but not identical. This paper studies collective decisions with private information about desired policies. Each agent holds private information which mainly concerns his own bliss point, but private information also affects all other agents. We concentrate on two specific mechanism, the median and mean mechanisms establish the existence of symmetric Bayesian Nash equilibria of the corresponding games and compare the performance of the mechanisms for different degrees of interdependencies. Applications of our framework include the provision of public goods and the design of decision processes in international organizations.     

North-South multipliers

This paper describes multiplier (magnifier) effects in the impact of growthof industrial countries on growth, exports and terms of trade of developing countries. The data are mainly derived from World Bank projections for the 1980s. This is supplemented by historical data on the effects of the slow-down in 1973–1980 compared with previous years, provided by the IMF. The overall multiplier effect on LDC growth has been prevented by compensatory action (mainly rapid expansion of commercial bank lending) but only at the cost of rapidly increasing debt burdens - a postponement rather than a solution of the problem.