On the distributional effects of income in an aggregate consumption relation

Abstract .  In this paper we analyse the influence of characteristics of the income distribution in modelling aggregate consumption expenditure. We model the aggregate consumption relation of a heterogeneous population, using a statistical distributional approach of aggregation, and apply it to UK-Family Expenditure Survey data. A bootstrap test based on a non-parametric estimation methodology, which accounts for the presence of continuous and discrete variables, suggests that the mean and the dispersion of the income distribution significantly influence aggregate consumption expenditure. Also, the parameters of the aggregate relation are time varying. These findings have implications for constructing empirically sound models of aggregate consumption expenditure.     

Mass Media Orientation and External Communication Strategies: Exploring Organisational Differences

This study assesses relationships between mass media orientations of communication professionals in organisations and their external communication strategies. We assume that mass media orientations within an organisation may affect an organisation’s external communication strategies of bridging and buffering. A survey among 150 Dutch communication professionals working for both for-profit and public organisations as well as NPOs was conducted. Our study shows that preferences for specific communication strategies are related to different forms of media orientation. Having media attention as an organisational goal is more strongly associated with buffering, that is, one-way and symmetric communication, yet a more negative attitude toward the media also hinders an organisation from bridging activities. Overall, few differences between the three types of organisations regarding communication strategies and media orientations were found.     

Mittelstand und EU-Osterweiterung

Viele Umfragen deuten auf eine massive Abwanderung des deutschen Mittelstands in die neuen EU-Beitrittsl?nder hin. Inwieweit kann dieser Exodus empirisch untermauert werden? In welchen Aktivit?ten engagieren sich die deutschen mittelst?ndischen Unternehmen in den Beitrittsl?ndern? Welche Chancen und Risiken erwarten sie von der Osterweiterung?     

The Paradox of Liberalization — Understanding Dualism and the Recovery of the German Political Economy

What do the recent trends in German economic development convey about the trajectory of change? Has liberalization prepared the German economy to deal with new challenges? What effects will liberalization have on the co‐ordinating capacities of economic institutions? This article argues that co‐ordination and liberalization are two sides of the same coin in the process of corporate restructuring in the face of economic shocks. Firms seek labour co‐operation in the face of tighter competitive pressures and exploit institutional advantages of co‐ordination. However, tighter co‐operation with core workers sharpened insider–outsider divisions and were built upon service sector cost cutting through liberalization. The combination of plant‐level restructuring and social policy change forms a trajectory of institutional adjustment of forming complementary economic segments which work under different rules. The process is driven by producer coalitions of export‐oriented firms and core workers’ representatives, rather than by firms per se.     

Diabetes im hohen Alter meistern

Diabetes mellitus ist eine klassische Alterserkrankung, die zudem selten allein kommt. Daher sind die wichtigsten Therapieziele für geriatrische Patienten mit Diabetes mellitus die Bewahrung der Lebensqualit?t, der Erhalt der physischen, psychischen und sozialen Kompetenz sowie Eigenst?ndigkeit.     

(Non-)Existence of Equilibria in Multicommunity Models

This paper reconsiders equilibrium existence in models with migration and voting over local public goods. We show that under some straightforward assumptions on preferences and income distributions, the basic structure of multicommunity models (i.e., perfect mobility, majority rule, single crossing property) implies that no equilibrium with jurisdictions conducting different policies can exist. Stratification equilibria—with sorting of the population according to income classes—are therefore not as natural as is sometimes suggested. Mechanisms that can serve to support stratification (i.e., tight housing markets, returns to scale in the provision of publicly consumed goods) are discussed.     

The Politics of Social Pacts

The paper develops an analytical framework for the politics of negotiated voluntary wage restraint in the context of social pacts. It argues that, in contrast to earlier political exchanges, tripartite negotiations on wage restraint under restrictive economic policies are not based on a political exchange whereby governments had to compensate trade unions for wage restraint. Rather, governments can threaten trade unions with tight monetary policy and trade unions can either engage in negotiated adjustment or suffer restrictions. Social pacts are therefore an instrument of adjustment by governments to a new economic environment, and not a tool of economic policy.     

Military expenditure in post-conflict societies

Post-conflict situations face a high risk of reversion to conflict. We investigate the effect of military expenditure by the government during the first decade post-conflict on the risk of reversion. We contrast two theories as to the likely effects. In one, military spending deters conflict by reducing the prospects of rebel success. In the other it acts as a signal to the rebels of government intentions. In the signalling model, low military spending signals that the government intends to adhere to the terms of the peace settlement and so reduces the risk of renewed rebellion. We investigate the effects of post-conflict military spending on the risk of conflict, using our existing models of military expenditure and of conflict risk. We find that, consistent with the signalling model, high military spending post-conflict significantly increases the risk of renewed conflict. This effect of military spending is distinctive to post-conflict period, and becomes progressively more pronounced over the decade. Received: April 2004, Accepted: December 2004, JEL Classification: H56, F35, O10     

Unintended Consequences: Does Aid Promote Arms Races?*

Using global data for the period 1960–99, we model military expenditure. Neighbours’ military spending and development aid are important determinants of military expenditure. An implication of the model is that there are regional arms races which are fuelled by aid. Potentially, aid is encouraging a ‘regional public bad’. There may, however, be an offsetting public good effect if military spending deters rebellions. In a simultaneous equation model, we find no deterrence effect of spending on the risk of civil war. Hence, there appears to be no regional public good effect offsetting the public bad arising from a neighbourhood arms race.