POLITICAL PROCESS AND THE FORMATION OF ECONOMIC POLICY

Institutional economics has some useful things to say about government policy-forming processes. It focuses attention on the structural components of government institutions which shape the direction of policy formation and its delivery. In this article, the author discusses how institutional models of government decision-making may be adapted to parliamentary systems of government. This approach has some merit because it rescues analysis of government processes from models based on the US constitutional system.     

Consistency of UK Pension Fund Investment Performance

Transition matrix techniques are used to relate the past and present performance of pension fund portfolios. In particular, funds are ranked to study the tendency of portfolios to remain in the same quartile of the ranking as they were in the previous period. For raw returns, funds in both of the top quartiles are found to be more likely to remain in the same quartile than would be expected by chance. This result can be taken as limited evidence for the consistency of performance. Similar systemic effects are observed on a risk-adjusted basis. There appears to be clear evidence that some fund managers can offer a degree of consistent good performance.     

Multiple regimes and cross-country growth behaviour

This paper provides some new evidence on the behaviour of cross-country growth rates. We reject the linear model commonly used to study cross-country growth behaviour in favour of a multiple regime alternative in which different economies obey different linear models when grouped according to initial conditions. Further, the marginal product of capital is shown to vary with the level of economic development. These results are consistent with growth models which exhibit multiple steady states. Our results call into question inferences that have been made in favour of the convergence hypothesis and further suggest that the explanatory power of the Solow growth model may be enhanced with a theory of aggregate production function differences.     

Jackson,Karl D., (Ed.), Asian Contagion: The Causes and Consequences of a Financial Crisis

The purpose of this article is to identify the extent of inward and outward foreign direct investment (FDI) worldwide. A large number of countries were aggregated on a regional basis to examine their inward and outward stocks as a percentage of gross fixed capital formation for the period 1980–2006. Among the findings was that the annual increase for both inward and outward FDI was less than 1%. Also, countries grouped by the aggregates developed, Africa, Latin America and Caribbean, Asia and Oceania, and developing were found to differ significantly in their means.     

Seizing the upside of a downturn

Is it possible for an economic downturn to be a time of managerial inspiration? We found 50 ways to answer that question with a Yes!     

Exploring transport to arts and cultural activities as a facilitator of social inclusion

This paper explores the relationship between travel and social inclusion in relation to a relatively rarely examined group of travel destinations—arts and cultural activities. This paper examines travel behaviour to arts and cultural activities and how this relates to social inclusion. Research literature associated with these issues is examined and then an analysis of a household travel survey in Melbourne, Australia, is undertaken to explore how travel to arts and cultural activities varies by income, car ownership and location. The paper outlines a range of evidence linking participation in arts and cultural activities and positive outcomes for social inclusion. Arts and cultural activities do not fit well into traditional household travel survey definitions of trip purposes. There is also no definitional difference between travel to activities and ‘participation’ or ‘attendance’ in arts and cultural activities. This is unfortunate since social outcomes may vary by participation or attendance. Travel survey analysis shows that like other activities trip rates to arts and cultural activities increase with income. However higher participation is demonstrated for zero- and one-car households, which contrasts with previous research of work, education and social travel. Higher participation is also demonstrated for those living in inner parts of the city. The paper suggests that most travel to arts and cultural activity is quite localised and hence much travel may be led by the diversity and range of local opportunities provided. These are particularly high in inner parts of the city. A high share of travel is also demonstrated for older people, who are thought to have the time and desire for greater participation in arts and cultural activities.