How important is improving food availability for reducing child malnutrition in developing countries?

Do increases in the food supply per person in a country, i.e., national food availability, contribute substantially to reductions in malnutrition among its children? This paper sets out to answer this controversial question using panel data from 63 developing countries over 1970–1996. This paper gives evidence in support of a statistically significant and strong positive impact of national food availability on child nutrition, finding that increased food supplies have resulted in significant reductions in malnutrition since the 1970s despite population increases over the period. However, per‐capita food supplies have a declining marginal impact: their effect is quite strong for countries with very low food availability (e.g., most countries in sub‐Saharan Africa and South Asia), but weak or non‐existent for those with high levels (e.g., most countries in the Near East and North Africa). Further, non‐food factors, such as women's education and status and the quality of health environments, are also important determinants of children's nutritional status. Depending on the state of food availability in any particular geographic area and relative costs, these factors may merit greater priority in policies to reduce malnutrition.     

Synthetic Floating‐Rate Debt: An Example of an Asset‐Driven Liability Structure

An asset‐driven liability (ADL) structure is analogous to a liability‐driven investment (LDI) strategy. In both cases, the intent is to reduce the risk arising from a mismatch of assets and liabilities by aligning the interest rate sensitivity of cash flows on both sides of the balance sheet. Increasingly, defined‐benefit pension plans have adopted LDI strategies that reduce their equity assets and increase the average duration of their debt assets to better match the typical long duration of their retirement obligations to its employees. To illustrate the concept of ADL, the authors use the example of a corporate issue of traditional fixed‐rate debt that is transformed into synthetic floating‐rate debt using an interest rate swap (in which the corporation receives the fixed rate on the swap and pays at money market reference rate like three‐month LIBOR). The use of such long‐term, floating‐rate debt reduces interest rate risk when the firm has operating revenues that are positively correlated to the business cycle. However, a problem arises in that there is limited demand for such debt securities from institutional investors, many of which, because of LDI guidelines, prefer long‐term, fixed‐rate securities. Derivatives provide a way of resolving this mismatch between issuer and investor interests. In the article, the authors present a detailed example of the cash flows on the “receive‐fixed” interest rate swap (and its valuation for financial reporting) to show how the synthetic ADL debt structure obtains the desired outcome.     

New directions in local accountability: Can the people be trusted?

Everyone is talking about accountability but it is a hard concept to pin down. The Audit Commission commends some of the Governments’ reforms, but believes that ultimately it will be people who will determine whether a better system of accountability emerges.     

Deane–Draper stores: employee empowerment in a retail environment

This case focuses on the application of employee empowerment principles to a large retail group. It provides the opportunity to analyse the manner of the strategy implementation and the consequent impact on both individuals and the organization. The case establishes significant financial underperformance in one part of a retail group and investigates the use of ‘employee empowerment’ techniques - following Carlzon (1987) - to provide a solution. The case illustrates the dysfunctional activity associated with implementing empowerment without either appropriate management control or staff training, together with the dire financial implications. The Teaching Resource Note discusses alternative approaches that might have been adopted.     

Monopoly Power and Stagflation

Post Keynesian economists have followed Joan Robinson's criticism of general equilibrium theory as abolishing history by allowing all contracts to be executed today for all future contingencies. This was the justification for the support of financial innovation to provide for the completeness of futures markets. The recent crisis has shown that force of history. Instead, many evolutionary and Keynesian economists have suggested the approach of cumulative causation as an approach that includes history and eschews equilibrium. This approach may provide a way to take history seriously in economic analysis.     

Recreational behavior of onshore and offshore oil industry employees in Newfoundland,Canada

Abstract

This paper discusses the results of surveys of oil industry employees in Newfoundland, Canada, working both onshore and offshore on rigs and supply boats. The surveys reveal the different recreational behavior of respondents compared to local residents, and the unique and restricted environments in which they live and work while offshore. The analysis covers the leisure time activities both offshore and onshore, and the effects of the relocation to Newfoundland upon the recreational behavior of the sample. Conclusions discuss the significance of relocation upon recreation behavior, and implications for planning, provision, and operation of leisure opportunities in coastal zone areas affected by hydrocarbon development.