A look at ‘overshooting’ in a two-tier float exchange rate system

This note examines the celebrated ‘overshooting’ hypothesis in the context of a two-tier float exchange rate regime. It is shown that monetary expansion leads to depreciation of both spot exchange rates and there is a presumption in favor of financial exchange rate ‘overshooting’.     

DS-optimal designs in one way ANOVA

Characterization and construction of optimal designs using the familiar optimality criteria, for example A-, D- and E-optimality are well studied in the literature. However the study of the Distance Optimality (DS-) criterion introduced by Sinha (1970) has very recently drawn attention of researchers. In the present article, we consider the singularly estimable full rank problem of estimating the full set of elementary treatment contrasts using the DS optimality criterion in the set up of a one way ANOVA model. Using a limit argument it turns out that a CRD in which difference between any two allocation numbers is at the most unity is uniquely DS-optimal. Acknowledgement. We are thankful to Prof. B. K. Sinha for suggesting the problem to us and many helpful discussions with him. We are also thankful to the referees for drawing our attention to the reference of Bischoff (1995) and many helpful comments.     

The real exchange rate and intervention under the managed float: Dilemmas of a central banker

Conclusion This paper has attempted to rationalize some recent widespread trends in the balance of payments of several countries. It has been argued that the exchange-market intervention techniques followed by certain countries especially in the presence of high capital mobility, may have contributed to the observed instability. Such a notion is not new. The innovation of the note is to demonstrate that even a gradulaist and anticipated popular intervention policy can be potentially destabilizing.The usual disclaimer applies with respect to all remaining errors.     

Country size and ‘insulation’ from external disturbances

Summary This paper considers the relationship between economic size and vulnerability to external disturbances. In order to analyze this issue effectively a model comprising three different-sized economies is constructed. The issue of economic size and insulation is approached from this alternative perspectives depending upon the relative size of (a) the `recipient' country and (b) the transmitting country. The results of the analysis indicate that, contrary to popular belief, a small country under floating exchange rates is less severely affected by external economic events than a large economy regardless of the type of external disturbance and the degree of domestic wage indexation.This paper has been improved by the helpful comments of a referee. We alone are solely responsible for all remaining errors.     

Recreating heritage in the southwest of Scotland

This paper studies the role of heritage tourism in the creation of uniform identity. The recently developed heritage tourism products in the southwest of Scotland are encouraging the promotion of the dominant heritage of Scotland, largely marginalising the regional one. This paper examines the cases of the heritage of Robert the Bruce that stresses Scotland's militaristic tradition, the eventful organisation of the Border Gathering which showcases Highland culture and the marginalisation of the Covenanting heritage of the region. The data are gathered through a questionnaire survey, in-depth interview, non-participant observation, archival records and other secondary sources. It shows how tourism is gearing towards recreating and establishing heritage which is largely new to the region. The paper argues that the promotion of dominant heritage is meaningfully directed towards forming a uniform and homogenous identity. The introduction of the dominant heritage in the region is important because it encourages commonality within Scotland, which plays an enormous part in advancing Scottish nationalism. This study helps us understand how tourism can be a medium to advance a nationalistic message.     

Labour Use and its Adjustment in Indian Manufacturing Industries

Abstract

This study provides an empirical investigation of the adjustment process of labour in Indian manufacturing industries, which evolved through structural transformation in the era of globalization. The analysis is based on a dynamic model applied to a panel of 22 two-digit manufacturing industries for the time period of 22 years covering 1980/1981 to 2001/2002. It is assumed that as competition increases industries adjust their employment to a desired level which is both industry and time specific. The results indicate that the manufacturing sector has shown a considerable dynamism in adjusting its workforce. The long-run labour demand responds greatest to the output, followed by capital and least by wages. It is observed that Indian manufacturing is not inefficient in labour use as modest speed of adjustment has led employment size closer to the optimal level.     

Did the commodity price spike increase rural poverty? Evidence from a long‐run panel in Bangladesh

We assess the effects of the dramatic rise in agricultural commodity prices during 2007–2008 on income dynamics and poverty among rural households in Bangladesh. A unique panel data set allows us to put the effects of recent events in the context of long‐run trends in income and poverty. We use data from a nationally representative longitudinal survey of rural households in Bangladesh collected in four waves in 1988, 2000, 2004, and 2008. Nargis and Hossain (Nargis, N., Hossain, M., 2006. Income dynamics and pathways out of rural poverty in Bangladesh, 1988–2004. Agric. Econ. 35, 425–435) analysed income dynamics and poverty incidence for the first three waves, finding a declining trend in both the incidence and severity of poverty, aided in particular by human capital development and off‐farm employment opportunities. We update and extend the analysis to include data collected in 2008, at the height of a spike in agricultural prices. We find that the price of a balanced food basket increased by more than 50% during 2000–2008, while household income rose only 15%. As a result the incidence and severity of rural poverty in Bangladesh sunk to pre‐2000 levels during 2004–2008. Thus, the price spikes in 2007–2008 helped push an additional 13 million people into poverty in rural Bangladesh. Moreover, we find that the determinants of poverty have not been time‐invariant. In particular, agricultural production, which had previously been associated with a higher incidence of poverty, served as a hedge against higher food prices during 2004–2008.     

Image Repair Campaign Strategies Addressing Race: Paula Deen,Social Media,and Defiance

This multi-method study examines how the use of social media in a crisis campaign involving race-related issues may affect a public figure’s credibility and perceived response appropriateness. First, image repair theory is used to analyze Paula Deen’s image repair campaign in the wake of the National Enquirer’s revelation that she admitted to using the “N-word” during a lawsuit deposition. Our analysis shows her response strategies were unsuccessful because her apology did not center on the allegations, and she was contradictory in her bolstering, minimization, and mortification strategies. We build on the Deen case study results by exploring the effectiveness of tweeted message strategies in a race-related crisis via Twitter. We use a mixed-design experiment examining how public figure type (politician v. TV celebrity) and response strategy (moral defense, performance defense, defiance defense, no defense) affect perceptions of a female public figure’s credibility and perceptions of the appropriateness of the response. Results show that any of the three responses are better than no response when addressing charges of racial insensitivity. A defiance defense, as newly tested strategy, and moral defense worked better for the TV celebrity condition than the politician condition. Implications are discussed.