PAYING FOR CROSSRAIL : THE BUSINESS CASE

A new railway is being planned across London. Incremental fares revenue will only pay about a quarter of the £10 billion¹ expected cost, so the Greater London Assembly (GLA) is considering 'alternative funding mechanisms'. These include new taxes on businesses that are presumed to benefit from the scheme. Taxes would deter the very investment Crossrail is supposed to support. The GLA would do better to change the scheme to reduce the need for subsidy and strengthen the business case.     

ECONOMIC IMPORTANCE OF THE SUGAR INDUSTRY FOR FIJI

For more than a century, the sugar industry has been perceived as the backbone of the Fijian economy, given its contributions to gross domestic product (GDP) and employment generation. However, because of the non-renewal of land leases and the gradual withdrawal of preferential prices by the European Union, the industry is on the verge of collapse. We use the Fiji computable general equilibrium model to simulate the economy-wide impact of a 30% reduction in sugar production. Among our key results, we find that in the long run a 30% reduction in sugar production leads to a 2.1% fall in exports, and government expenditure and real consumption fall by 1.9% and 1.6%, respectively. These declines in the aggregate demand components are reflected in a fall of approximately 1.8% in Fiji's GDP. The negative repercussion of declining economic growth is reflected in a 1.5% decline in real national welfare.     

THE IMPACT OF IMMIGRATION ON THE LABOR MARKET

The literature on the impact of immigration on the labor market is highly controversial. The aim of this paper is to review the existing literature and draw some general conclusions on how wages and employment respond to immigration. Economic studies indicate that the impact of immigration on the average wage and employment of native workers is null or slightly positive. However, because adjustments take time, the immediate labor market effects of unexpected (as opposed to expected) migration episodes can be detrimental. Immigration also can have distributional consequences. In particular, the skill composition of immigrants matters in determining their impact on native labor market outcomes. An inflow of immigrants will tend to reduce the wages of competing native workers (with skills similar to those of the migrants), and increase those of complementary workers (with skills that complement those of immigrants). By affecting the skill composition of the workforce, immigration can create winners and losers among native workers via changes in the wage structure.     

ON THE PARAMETERIZATION OF TECHNIQUES FOR REPRESENTING REGIONAL ECONOMIC STRUCTURES

This paper is concerned with two parameterized methods of regionalising input–output coefficients: the Flegg et al. Location Quotient (FLQ) and its augmented version (AFLQ). For applying the two techniques, a parameter δ has to be estimated. In this regard, the paper faces two matters that are still open in the literature: the existence of a range of δ that can be used in different regions and the estimation of the most appropriate value of δ. For this aim, a Monte Carlo simulation has been carried out in order to generate ‘true’ multiregional I-O tables randomly. From the simulation, analyses based on probability distributions and regression were also carried out. Finally, these simulation results have been compared with those of an empirical case. Results confirm that there is actually a range of values of δ within which the best δ is more likely to fall. For the FLQ, this range is centred on 0.3 with an associated probability of 33% (if the width of the range is set at 0.1), whereas, for the AFLQ, the relevant range is between 0.3 and 0.4 with a probability by 38%. Finally, this paper provided a way to estimate the best δ for a given region, without knowing the relevant and detailed economic structure at sectoral level.     

MEDDLING IN OTHER MEN'S AFFAIRS: THE CASE FOR ANARCHY

This paper calls into question the foundational myth of political theory, the myth of the necessity of the state. The anarchic counterposition is briefly sketched before some central anti-anarchic arguments are considered and rejected.     

DESIGNING ECONOMIC INSTRUMENTS FOR THE ENVIRONMENT IN A DECENTRALIZED FISCAL SYSTEM

Abstract When external effects are important, markets will be inefficient, and economists have considered several broad classes of economic instruments to correct these inefficiencies. However, the standard economic analysis has tended to take the region, and the government, as a given; that is, this work has neglected important distinctions and interactions between the geographic scope of different pollutants, the enforcement authority of various levels of government, and the fiscal responsibilities of the various levels of government. It typically ignores the possibility that the externality may be created and addressed by local governments, and it does not consider the implications of decentralization for the design of economic instruments targeted at environmental problems. This paper examines the implications of decentralization for the design of corrective policies; that is, how does one design economic instruments in a decentralized fiscal system in which externalities exist at the local level and in which subnational governments have the power to provide local public services and to choose tax instruments that can both finance these expenditures and correct the market failures of externalities?     

THE CASE FOR A COMMUNITY TRANSACTION ENGINE: GETTING COASE FOR THE TWENTY‐FIRST CENTURY

New types of marketplace are now becoming viable. They can slash transaction costs, bring new resources into the economy and expand economic opportunity. These markets can be grown by the private sector. But, to deliver their full potential, they need a change in the mindset of government.     

EXPLORING THE MENTAL MODELS OF COMPETITIVE STRATEGISTS: THE CASE FOR A PROCESSUAL APPROACH

Recently there have been a number of studies published which seek to further our understanding of the competitive structures of markets. These studies have used aggregated perceptual data in an attempt to uncover industry-level mental models of business environments. In this article we argue that such studies are predicated on the assumption that there are high levels of consensus within and between organizations in a given industry concerning the bases of competition and the positioning of particular organizations. In the present study we employ a similar methodology but focus on the mental models of individuals in order to examine empirically the nature and extent of such consensus. the research was carried out in the UK grocery retailing industry. Twenty-three managers from two organizations were each interviewed using a variant of the cognitive taxonomic interview procedures devised by Porac and his associates. the study revealed considerable variation in terms of the nature of the cognitive categories elicited from the participants and the overall complexity of their taxonomies relating to competitive structures, both within and between the organizations. However, the study also revealed considerable intra-organizational agreement regarding the categories which describe the self-identity of the research participants’organizations and their major competitors. We consider the implications of these findings for understanding processes of strategy development and implementation in organizations.     

ETHNICITY AND THE IMMIGRATION OF HIGHLY SKILLED WORKERS TO THE UNITED STATES

This paper examines ethnicity among highly skilled immigrants to the United States. The paper focuses on five classic components of ethnicity - country of birth, race, skin color, language, and religion - among persons admitted to legal permanent residence in the United States in 2003 in the three main employment categories (EB-1, EB-2, and EB-3), using data collected in the U.S. New Immigrant Survey. Initial findings include: (1) The visa categories have distinctive ethnic configurations. India dominates EB-2 and European countries EB-1. (2) The ethnicity portfolio contains more languages than religions. (3) Language is shed before religion, and religion may not be shed at all, except among the ultra highly skilled of EB-1. (4) Highly skilled immigrants are mostly male; they are not immune from lapsing into illegality; they have a shorter visa process than their cohortmates; smaller proportions than in the cohort overall intend to remain in the United States. (5) Larger proportions in EB-2 and EB-3 sent remittances than in the cohort overall. (6) A little measure of assimilation - using dollars to describe earnings in the country of last residence, even when requested to use the country's currency - suggests that highly skilled immigrants are more likely to "think in dollars" than their cohortmates. Further work is taking a deeper look at these patterns in a multivariate context, attentive to selectivity processes and the Globalista impulse.     

DEMOGRAPHIC EFFECTS ON ECONOMIC GROWTH AND CONSEQUENCES FOR THE PROVISION OF PENSIONS

As the population of an economy ages saving declines and, through that channel, economic growth can decline too. Returns to physical capital fall, making the provision of pensions more and more difficult. The income of the working population deteriorates and they respond by having fewer children. This intensifies the problem even further.     

THE LONG-TERM ECONOMIC GAIN FROM NEW MODELS OF HEALTHCARE PROVISION: THE OPPORTUNITIES FOR PHARMACEUTICAL COMPANIES

The case for competition in healthcare has become much stronqer. Health economists have failed to notice the erosion of the old arguments for state monopoly.     

REGIONAL ECONOMIC INTEGRATION AND ITS IMPACTS ON GROWTH, POVERTY AND INCOME DISTRIBUTION: THE CASE OF VIETNAM

Trade liberalization and regional economic integration have recently accelerated in East Asia, where several free trade areas have been established or are under negotiation. Vietnam, after acquiring Association of Southeast Asian Nations (ASEAN) membership in 1995, has signed a bilateral trade package with the United States and participated in the China-ASEAN free trade area. This paper attempts to analyze the impact on Vietnam of ongoing regional economic integration, focusing on growth, poverty reduction and income distribution. For this purpose, we have constructed a globally linked Computable General Equilibrium (CGE) model and made use of Global Trade Analysis Project (GTAP) database version 6.0 and Vietnam's living standards surveys. The simulation analysis shows that the regional economic integration generally has a positive impact. It both enhances welfare and improves income-distribution for Vietnam. Household income and consumption increase, and poor and rural household groups benefit more than urban high income groups.     

LABORATORY EXPERIMENTS FOR ECONOMIC POLICY MAKING

Abstract In this paper, we assess the scope and the specific contribution of laboratory experiments for economic policy making. We review experiments which have addressed a specific problem, institution, mechanism design or tool relevant in economic policy. We have two research questions. What type of policy questions can be addressed in the laboratory? And what is the specific value added of economic experiments for policy making. The survey contains experiments on competition policy, auctions, regulated markets, and emission permits.     

BROADBAND AND ECONOMIC DEVELOPMENT: A MUNICIPAL CASE STUDY FROM FLORIDA

In this paper, we explore whether broadband investment by municipalities has an effect on economic growth. To do so, we employ an econometric model to compare economic growth between counties in the State of Florida. Our econometric model shows that Lake County – a small county in central Florida – has experienced significantly greater growth in economic activity relative to comparable Florida counties since making its municipal fiber-optic network generally available to businesses and municipal institutions in the county. Our findings are consistent with other analyses that postulate that broadband infrastructure can be a significant contributor to economic growth.     

ORGANIZATIONAL OPTIONS FOR PROVIDING URBAN WASTE MANAGEMENT SERVICES: THE CASE OF INDONESIA

Rising incomes and rapid growth require better approaches to organizing and delivering solid waste management services in developing countries. This paper uses Indonesia as a case context for exploring organizational options to urban waste management, including provision by municipal agencies, semi-commercial enterprises, private firms, and neighborhood organizations. Semi-commercial enterprises were found to cover significantly higher shares of routine expenditures than municipal agencies. Few differences were found among different indicators of labor and equipment productivity among organizational types, however. The major difference is that non-public organizations more vigorously seek out revenues. Promising ways to increase revenues and stop leakages are to link solid waste payment with payment of electricity bills and to negotiate revenue-sharing schemes with neighborhood leaders.