MANUFACTURING REFORM AND THE CHANGING ROLE OF THE PRODUCTION SUPERVISOR: THE CASE OF THE AUTOMOBILE INDUSTRY*

This research assesses current changes in the nature of the supervisory role in the automobile industry. It locates these changes in the context of a transition from mass production to lean or just-in-time production. the emergence of a supervisory role, with supervisors performing critical functions as effective managers of integrated work areas is explored by focusing on two lean producers, Nissan UK and Mazda's Flat Rock plant in the US. Noting the increased responsibility of the supervisor under lean production, the extent of the supervisors’enhanced status and authority are considered. However, a case study of an established vehicle producer in the UK, involving interviews with a sample of forty supervisors draws out the structural and organizational difficulties faced by existing manufacturers in their attempts to reformulate the role of the supervisor.     

THE ECONOMETRIC ANALYSIS OF ECONOMIC POLICY

The application of econometric analysis to the process of economic policy formulation is considered. A framework is provided by the theory of reduction, specifically reductions where key information losses would invalidate policy. Consequently, model evaluation; the role of econometric models; forecasting; exogeneity; causality; constancy and invariance; unobservables; seasonality; and data integrability are considered, together with specific policy issues where econometrics can clarify the problems.     

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.     

THE BUS INDUSTRY: FRANCHISE AND THE LOSS OF FREEDOM

Political pressure exists for the bus industry to be brought under local authority control by means of 'Quality Contracts.'These would take away from management the freedom for marketing, and especially for marketing by price, that was returned to them by the 'deregulation' of 1985. The proposed franchises would return the industry to the 'bad old days' and prevent its continued improvement through market forces from taking place. The Department of Transport considered the idea of franchises in 1985, but concluded that it would merely lead to monopoly power.     

THE CONSTITUTIONAL PROPOSAL OF THE EUROPEAN CONVENTION: AN APPRAISAL AND EXPLANATION

The recent European Convention was constructed so that the median voter on the convention had a bias in favour of centralisation. The conclusions of the Convention were therefore not surprising. The European Constitutional Group has made a number of suggestions for change to the Convention that could reverse its centralising approach.     

INTERACTION OF LAND POLICY AND LAND-BASED TAX POLICY: THE VERMONT LAND GAINS TAX

In 1973, the State of Vermont became the first jurisdiction in the United States to enact a land gains tax. The tax had two purposes: raising revenue and deterrring land speculation and subdivision, which were changing the rural, village character of the state's landscape. The land gains tax derived from many of the same forces as Act 250, Vermont's 1970 land use planning and environmental control legislation. Both measures had many positive effects during the 1970s and 1980s, but, following continued growth, land speculation and subdivision, and loss of farmland in the state in the mid-1980s, both the land gains tax and land use planning and regulation were readdressed by the legislature in 1987 and 1988.     

ARE THE OUTPUT EFFECTS OF MONETARY POLICY ASYMMETRIC? EVIDENCE FROM A SAMPLE OF EUROPEAN COUNTRIES

ABSTRACT This paper examines whether the effects of monetary policy on output in Europe are asymmetric. Data from the 1953–90 period are used to identify money-supply shocks and their effects on output for a panel of 18 European countries. Many different specifications and estimation methods strongly support asymmetry: negative money-supply shocks are shown to have a statistically significant effect on output, whereas the effect of positive shocks is statistically insignificant. A similar asymmetry governs the output effects of interest rate changes. The sources of these asymmetries are traced to similar behavior for consumption and investment. These findings imply that positive money-supply shocks may be an ineffective anti-recession policy, and more generally, that the monetary component of the optimal stabilization policy should be less activist than generally thought.     

REGIONALISM AND FREE-MARKET REFORM: THE CASE OF POLAND

In Poland, there is a widening gap between well-developed core regions and depressed peripheral ones. This article argues, on the one hand, that any EU- or government-funded assistance to less developed areas should be accompanied by nationwide liberalisation and, on the other, that lack of reform and increasing regional disparities might fuel discontent in the worst-off regions, which, in turn, might make politicians adopt a fully-blown interventionist policy.     

THE ECONOMICS OF HEALTH AND SAFETY AT WORK: AN INTERDICIPLINARY REVIEW OF THE THEORY AND POLICY

Abstract This paper engages in an interdisciplinary survey of the current state of knowledge related to the theory, determinants and consequences of occupational safety and health (OSH). It first describes the fundamental theoretical construct of compensating wage differentials, which is used by economists to understand the optimal provision of OSH in a perfectly competitive labour market. The plethora of incentives faced by workers and firms in job and insurance markets that determine the ultimate level of OSH are discussed in detail. The extensive empirical evidence from the hedonic wage and stated choice approaches used to assess the value of OSH is reviewed. The causes of inefficiency and inequity in the market for OSH, such as externalities, moral hazard in compensation insurance, systematic biases in individual risk perception/well‐being and labour market segregation are subsequently examined. The implications of government intervention and regulation for tackling the aforementioned inefficiencies in OSH are then considered. Finally, the survey identifies areas of future research interests and suggests indicators and priorities for policy initiatives that can improve the health and safety of workers in modern job markets.     

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.     

PRIVATISATION AND EFFICIENCY IN THE UK WATER INDUSTRY: AN EMPIRICAL ANALYSIS*

ABSTRACTS The post-privatisation structure of the UK water industry involves the separation of environmental services from other outputs previously produced under an integrated system by the publicly-owned water authorities. This paper examines the extent to which the integrated authorities benefitted from joint production. Estimating a dynamic multi-product cost function from pooled cross-section, time-series quality adjusted data drawn from the accounts of the water authorities for the period 1979/80–1987/88, prior to privatisation, significant elements of joint production are found. Divestiture of the industry, arguably justified on other criteria, implies the loss of substantial areas of cost complimentary.     

THE MAKE-BUY DECISION AND MANAGING MARKETS: THE CASE OF MANAGEMENT BUY-OUTS

This paper attempts to develop the issue of the internalization of transactions (the make-buy decision). Butler and Carney (1983) have developed the concept of managing markets where under certain conditions transactions will not be internalized. This paper, as well as attempting to complete this picture, also draws attention to a largely ignored aspect of organization theory - the issue of when a transaction which is already internalized will be externalized. In examining the sale of subsidiaries by parent companies an attempt is made to draw the boundaries of Williamson's divisionalized form of organization. The necessary and sufficient conditions for sale to the management are developed in the theoretical discussion, followed in the second section by empirical evidence from a survey of management buy-outs.