MACROECONOMIC POLICY REFORMS AND PRODUCTIVITY GROWTH IN AFRICAN AGRICULTURE

This article employs a two‐stage procedure to investigate the impact of macroeconomic policy reforms on the agricultural productivity growth of 33 African countries from 1981 to 2001. In the first stage, we measure agricultural productivity using a nonparametric Malmquist productivity index. In the second stage, we build a generalized method of moments (GMM) model with a measure of structural adjustment program (SAP) intensity as a key instrument for macroeconomic policy reforms. We also control for the effects of globalization, civil violence, level of development of physical and financial infrastructure, and other economic variables as well as natural resource factors that directly affect agricultural productivity. Our results indicate a strong positive correlation between the extent of SAP intensity and agricultural productivity, suggesting that the macroeconomic policy reforms improved agricultural productivity growth in the sample countries. (JEL E6, O13, O41)     

Why Do Foreign Firms Leave U.S. Equity Markets?

Foreign firms terminate their Securities and Exchange Commission registration in the aftermath of the Sarbanes–Oxley Act (SOX) because they no longer require outside funds to finance growth opportunities. Deregistering firms’ insiders benefit from greater discretion to consume private benefits without having to raise higher cost funds. Foreign firms with more agency problems have worse stock‐price reactions to the adoption of Rule 12h‐6 in 2007, which made deregistration easier, than those firms more adversely affected by the compliance costs of SOX. Stock‐price reactions to deregistration announcements are negative, but less so under Rule 12h‐6, and more so for firms that raise fewer funds externally.     

THE SEEKING OF STRATEGY WHERE IT IS NOT: TOWARDS A THEORY OF STRATEGY ABSENCE: A REPLY TO BAUERSCHMIDT

In this issue Bauerschmidt critiques a recent Strategic Management Journal paper dealing with the absence of strategy. In this paper (Inkpen and Choudhury, 1995), we argued that strategy absence should be viewed as a legitimate phenomenon of interest. Bauerschmidt maintained that we failed to instill a new strategy paradigm and challenged our arguments as a rhetorical ploy. Unfortunately, Bauerschmidt misinterpreted our intended message. Although we challenged the conventional wisdom that every firm must have an articulated strategy, instilling a new paradigm was not our objective. Our main argument was that the concept of absence may help strategy researchers better understand existing paradigms.     

Fiscal policies and the institution of a tax state in Anglo‐Saxon England within a comparative context1

This article begins by noting that military revolutions and civil wars in early modern Europe provide an unduly narrow framework for understanding the transition from a domain to a tax state. Taking Anglo‐Saxon England as a case study, it is suggested that political restrictions led to the establishment of direct and indirect taxation, thereby providing rulers with revenues which surpassed those from domain resources. The main section of the article uses sources from coinage and wills to poetry and letters in order to give a general idea of the chronological development of a medieval tax state. This analysis challenges the views of the new fiscal historians, who argue that a collapse in a medieval domain state acts as the precondition for the emergence of a tax state. Instead, this article suggests that new policies arose because of the need of Anglo‐Saxon kings and their advisers to take account of the requirements of ecclesiastical authorities, as well as a heavy revenue imperative, in paying for resistance against the Vikings. The article ends with a discussion of the comparative applications of the contexts and catalysts which lead to the adoption of pioneering fiscal policies.     

Trends and Cycles in GDP

The recent experience in the UK of substantial growth in GDP following the recession of the early 1980s has led to renewed interest in the measurement and explanation of business cycles. Development of economic as well as econometric theory has improved our ability both to measure the cycle more accurately and to offer a better explanation of its behaviour. In this Briefing Paper we present an analysis of these two developments.     

Explaining Forward Exchange Bias…Intraday

Intraday interest rates are zero. Consequently, a foreign exchange dealer can short a vulnerable currency in the morning, close this position in the afternoon, and never face an interest cost. This tactic might seem especially attractive in times of fixed-rate crisis, since it suggests an immunity to the central bank's interest rate defense. In equilibrium, however, buyers of the vulnerable currency must be compensated on average with an intraday capital gain as long as no devaluation occurs. That is, currencies under attack should typically appreciate intraday. Using data on intraday exchange rate changes within the European Monetary System, we find this prediction is borne out.     

SOCIALLY OPTIMAL CRIMINAL COURT WAITING TIMES: A PARTIAL INVESTIGATION

Criminal courts provide a forum for conducting prosecutions with a guilty plea or a trial. Since queues are used as the basis for rationing scarce court facilities delays are inevitable, however courts are invariably criticised as being inefficient as a consequence. This focus on court delay defined as the time elapsing between the listing of the case in the court list and its final disposition is misleading. Rather, attention should be drawn to the considerably longer period between the initiation of proceedings and the conclusion of the case. In the case of defendants not granted bail, this pre-trial delay confers both costs and benefits on society and this observation can be used to ascertain socially optimal pre-trial waits.