A new look at indirect taxation in developing countries

This paper reconsiders some of the traditional arguments made against indirect taxes on consumption. Such taxes, despite the extensive criticism to which they have been subjected in the academic literature, remain the mainstay of public finance in most developing countries and are likely to continue to do so. Brief discussions of the design of excise taxes and the incidence of indirect taxes on the poor illustrate the sorts of issues where more detailed tax-specific and country-specific research is needed to replace conventional generalizations about the effects of indirect taxes.     

Investor Reaction to the Ambiguity and Mix of Positive and Negative Argumentation in Favorable Analyst Reports

This study experimentally tests the hypothesis that investor reaction to favorable investment ratings is influenced by attributes of analysts’ supporting arguments. Specifically, I argue that argument ambiguity and the mix of positive and negative argumentation interact to influence how investors process and, in turn, react to information contained in analysts’ arguments. When positive arguments are unambiguous, I predict and find that investors react to the content of the arguments because they perceive the arguments provide sufficient support for the rating. In this case, investors react more favorably when the report includes strictly positive argumentation (i.e., one‐sided argumentation) than when it includes a mix of positive and negative argumentation (i.e., two‐sided argumentation). In contrast, when positive arguments are ambiguous, two‐sided argumentation acts as a credibility cue and leads to a higher likelihood of investment than one‐sided argumentation. These results provide important insights about the conditions under which investors react to justifications in favorable analyst reports and shed light on how analysts can credibly convey favorable information.     

Women,gender and policy‐making in the South African context

Equality, including gender equality, is a fundamental principle of the South African constitution. This article is intended as a briefing document for researchers and policy‐makers on some of the more qualitative gender considerations involved in policy‐making and analysis. The article is not based on original research or data analysis, but is informed by a range of papers and studies which throw up gender questions about conventional ways of seeing. The article starts by dealing briefly with the distinction between ‘equity’ and ‘efficiency’ arguments for gender equality. After summarising past and current developments in establishing gender machinery within government, it goes on to suggest how traditional economic theory obscures or distorts gender issues. Finally it discusses the use and abuse of concepts commonly encountered in both poverty studies and discussions of gender.     

The geographical concentration of labour-market disadvantage

This paper argues that British 'welfare to work' policies areinadequate, given the geographical concentration of worklessnessin northern regions and in cities and former coalfields. Whileunemployment has been converging geographically, inactivityhas not. All the 'welfare to work' target groups - youth unemployed,long-term unemployed, lone parents, the long-term sick, andpartners of the unemployed - have closely similar geographicaldistributions. Official arguments that there are adequate jobvacancies everywhere are shown to be flawed. The geography ofworklessness is largely explained by the weakness of adjustmentthrough migration and commuting to the loss of jobs in manufacturingand mining, the cities being particularly affected by 'urbanrural manufacturing shift'. Policy needs to promote more relevantemployment in high unemployment areas, through increased spendingon derelict land reclamation and on transport and other infrastructure.The case for more supportive policies towards manufacturingshould also be considered.     

Organizational Membership and Environmental Ethics: A Comparison of Managers in State-owned Firms,Collectives, Private Firms and Joint Ventures in China

This study empirically examines the relationship between organizational type and the environmental, ethical orientation of managers in the People's Republic of China (PRC) on three dimensions—stewardship and long- and short-term utilitarianism. It was found that Chinese managers uniformly self-report strong ethical commitments to environmental protection. In addition, organizational type was found to be a significant predictor for the different ethical dimensions. Overall, managers in state-owned firms uniformly reported the strongest values. Managers in private firms, on the other hand, self-reported lower values and appeared relatively more skeptical of emergent utilitarian arguments that economic performance and environmental performance are compatible in the short term.     

Reciprocity in trade relations between South Africa and Europe

This article sets out the arguments, from South Africa's perspective, for a free trade agreement (FTA) with Europe. It argues against signing the Lome Convention. These arguments have more force if the right kind of FTA can be negotiated, because the greater the benefit South Africa derives from such an agreement, the more the credibility of domestic economic policies will be enhanced. Some requirements for the ‘right’ type of FTA are discussed.     

Supply-side economics: The rise to prominence

Conclusions At this point, I would like to summarize the main arguments presented in this article. I will then briefly comment on what I feel are the main implications of these arguments.     

Strangers in a strange land: citizenship and the immigration debate in Lesotho

Lesotho, a small sovereign country located within the borders of the Republic of South Africa, displays a paradox as regards immigration. It lacks the attributes of a typical receiving country, but it has been attractive to immigrants, especially from those countries in sub-Saharan Africa which are not members of the Southern African Development Community (SADC). Lesotho's attraction to immigrants is explained largely by its ability to offer better remuneration for skilled workers than many non-SADC sub-Saharan African countries, and by its strategic location as an easy transit gate into South Africa, widely perceived as the ‘Europe’ of the continent. However, the influx of immigrants into Lesotho has generated a wave of anti-foreigner feelings among sections of the population and heightened the debate about the relevance of foreigners to national development. The paper reiterates the principal conventional arguments against immigration: that it compromises jobs, raises crime rates, intensifies the spread of diseases, undermines the homogeneity of the state and nation and exerts additional strain on the country's already overstretched resources. Demonstrating the limits of these arguments, the paper argues that for Lesotho, grappling with unemployment and manpower shortages, immigration is an asset rather than a liability because it creates jobs, brings in skills that are otherwise in short supply and raises the country's international profile and competitiveness.     

One world money, then and now

The case for monetary simplification and unification has been made since the middle of the nineteenth century. It rests on four principal arguments; reduced transaction costs; establishing credibility; preventing bad policy in other states; political integration via money. In this paper we argue that the case for monetary integration is becoming increasingly less persuasive. In making our case we posit a different concept of money to the one that underlay the nineteenth century discussions which we term “Newtonian” since it was based on the assumption of a single reference external to the state reflected in the definition of value in terms of precious metals. In the twentieth century, views of money have shifted to a more “Einsteinian” or relativistic conception. Measures of value that move relative to each other are helpful in terms of dealing with large shifts in relative prices that affect different countries very differently. In the current age of globalization, “Einsteinian” money is capable of accommodating shifts that were politically destructive in the “Newtonian” world.     

Reply

Conclusion There are strong theoretical arguments in favor of the private sector approach. If there also would have been theoretical arguments in favor of the banking approach, then Boeschoten would have been right in claiming that the degree to whether the private sector or the banking approach is valid has to be verified empirically. However, the theoretical arguments put forward by Boeschoten in support of the banking approach are either incorrect or empirically not very relevant. Thus, the degree to which either approach is valid does not seem to be a purely empirical question.The views expressed in this paper are those of the author and do not necessarily reflect the views of the International Monetary Fund. The author thanks David Coe and Frank Lakwijk for their valuable comments on an earlier version.     

Farm size,land yields and the agricultural production function: An analysis for fifteen developing countries

The paper analyzes the relationship between factor inputs, land yields and labor productivity for farms of different size on the basis of FAO farm management data for 15 developing countries. For all but three countries a strong negative correlation is found between farm size on the one side, and factor inputs and yields per hectare on the other. The fitting of unconstrained production functions to the above data suggests that in only few cases the decline in yields for increasing farm size can be attributed to decreasing returns to scale. The higher yields observed in small farms are mainly to be ascribed to higher factor inputs and to a more intensive use of land. Therefore, where conspicuous labor surpluses exist, the superiority of small farming provides solid arguments in favor of land redistribution. Such an agrarian reform would determine higher output, higher labor absorption and a more equitable income distribution, thus contributing in a decisive manner to the alleviation of rural poverty. The paper also provides estimates of cross-sectional production functions for the 15 countries analyzed. Empirical relations are found between the output elasticities of land, labor and intermediate inputs and physical indicators of their scarcity. The paper concludes by proposing a simple method for deriving a long-term production function for agriculture.     

物业管理合同法律性质之辨析

随着经济的迅速发展,物业管理的作用日益凸现出来,然而,物业管理合同的法律性质素有争议。因此,有必要通过比较分析,进一步明确该合同的法律性质,并建议法律将该合同有名化。     

Targets' Accounting Conservatism and the Gains from Acquisition*

We present evidence on the effects of target firms' accounting conservatism in a merger and acquisition transaction. Conservatism is distinct from other accounting or accrual quality constructs examined in prior work. Its unique features can lead to potential benefits for both the targets and the acquirers. The use of conservatism by targets reduces acquirers' risks of acquiring underperforming assets or overpaying for well-performing assets. In addition, targets' conservatism results in greater production of verifiable information that can help the acquirers better estimate and realize synergies of the combined firm. Consistent with these arguments, we find that firms with greater accounting conservatism are more likely to receive a bid. We also find that targets' conservatism increases the deal premium and the announcement returns of both the targets and the acquirers, respectively. Overall, these results indicate that conservatism provides benefits to both sellers and buyers of equity in an acquisition transaction.     

Public policy and the quality of life: How relevant is economics? Public policy and the quality of life: Market incentives versus government planning Randall G. Holcombe greenwood press, 1995, 190 pp.

This article summarizes and critiques Holcombe's arguments on the influence of private ownership and markets on the quality of life. Holcombe summarizes the free market-oriented literature and provides interesting anecdotes in arguing that markets are superior to public policies and more cost-effective in pursuing social goals such as health care, environmental protection, and housing. This critique argues that Holcombe's approach is much too narrow in that it reduces the quality of life to commercial value, cost minimization, and property rights. Economic analysis can become more relevant to the public discourse by recognizing that social values are broader than cost minimization and efficiency. Public sensibilities on equity, justice, equal opportunity, and human dignity shape the sociocultural context for evaluating the impact of public policy on the quality of life. Ideas are offered for enhancing the relevance of economics to policy discussions on the quality of life.     

Rent seeking,federal mandates,and the quality of public education

Summary and Conclusions This paper has examined two opposing hypotheses purported to explain the imposition of mandates on lower level governmental activities. These hypotheses were labeled the spillovers and rent-seeking arguments. The first argument implied that consumers benefit from the intervention, while the latter one suggests that mandates increase the rents of the bureaucrats-producers. Evidence relating to the provision of public education was found to be more consistent with the rent-seeking thesis.Overall, the conclusions emerging from this study complement prevous works concerning the collusive nature of interactions between government regulators and private firms. There, the firms often use government to achieve what proves to be too costly via the market. There is no reason to believe that things would differ with regard to collusion between local units of government and those at higher levels. Given that bureaucrats, like all other individuals, are utility-maximizers, they too have an incentive to use government to increase their rents. Educational mandates appear to have served this role.     

City-regional Systems and Competitive Internet Economies

A live issue currently in eonomic development relates to the importance of city-regional business environments for the growth and competitiveness of internet-related industries. Drawing on theories of regional innovation systems, this study evaluates the importance of place-related factors in the development of internet firms in two UK city-regions. The findings highlight the importance of demand economies, external networks, key local firms and individuals, and government research expenditure. Institutional arguments about local-regional systems are not drivers for growth, but play a more complex role in shaping knowledge and technological infrastructure.     

WEALTH INEQUALITY AND EFFICIENCY IN THE COMMONS PART I: THE UNREGULATED CASE

Does more inequality lead to more efficiency in the managementof common property resources? To answer this question, an attemptis made to develop relevant theoretical models and to articulatethem with empirical evidence drawn mainly from social sciencestudies. The paper is divided into two parts. In this, the firstpart, assuming away the possibility of regulatory instruments,we construct a series of arguments pointing to the ambiguousimpact of wealth inequality on the efficiency of the equilibriumoutcome.     

Real money balances as factor saving media: A note

Conclusion A variety of specifications and arguments have been presented in the past in dealing with money in the production system. The most plausible role of money in production seems that it saves production factors as an indirect servicing medium facilitating exchanges and other transaction activities. Based on this hypothesis, real money balances were introduced into the input demand equations in a simultaneous production-equation system. It has been found thatm ₁ plays a more significant factor-saving role thanm ₂ and it saves capital more than labor. Considering the theoretical merits and the statistical consistency of our model, it is suggested that in macro model building real money balances should be treated as input-saving media appearing in the input demand equations rather than direct production factors to be included in the production function.     

Why did the communist party reform in China,but not in the Soviet Union? The political economy of agricultural transition

The dramatic transition from Communism to market economies across Asia and Europe started in the Chinese countryside in the 1970s. Since then more than a billion of people, many of them very poor, have been affected by radical reforms in agriculture. However, there are enormous differences in the reform strategies that countries have chosen. This paper presents a set of arguments to explain why countries have chosen different reform policies.     

股份合作社是农村土地产权制度改革的最佳形式

有关农村土地产权制度改革的各种论点在学术界已经闹的沸沸扬扬,目前来说3种论点占据了主流,分别是土地产权的国有化理论、私有化理论以及维持现行集体所有制不变而在具体实现形式上加以改革和创新.基于我国基本国情,建议维持现行的农村土地产权集体所有制不变,并采用股份合作社形式的制度安排.股份合作社是农村产权制度改革的最佳形式,能...