Telecommunications in China

Recently, a ten-man delegation of the United States' IEEE (Institute of Electrical and Electronics Engineers) visited the People's Republic of China, at the invitation of the Chinese Electronics Society. It was the first formal visit arranged under the auspices of these two organizations. The delegation represented wide-ranging interests in telecommunications, computer technology and engineering education. This report reflects one delegation member's observations in the field of telecommunications.     

Cointegration and common trends on the West German labour market

In this paper we analyze the West German labour market by means of a cointegrated structural VAR model. We find sensible stable long-run relationships that are interpreted as a labour demand, a wage setting and a goods market equilibrium. In order to study the dynamic behaviour of the model we identify two common trends that push unemployment. We find that goods market shocks have only transitory impacts on unemployment. In the long run, it is almost equally determined by technology and labour supply factors. However, transitory shocks have major importance in the shorter run since adjustment processes are rather sluggish. First version received: Sept. 1998/Final version accepted: Feb. 2000     

Strategic Environmental Policy, Clean Technologies and the Learning Curve

In the political discussion, it is often emphasized that the environmental service industry (which produces a clean factor of production) benefits from an early and strong environmental policy. This is especially likely if the costs of production are decreasing over time due to learning curve effects. Surprisingly, the environmental service industry has not been integrated into the theory of strategic environmental policy yet. Our main question is whether a national leadership in environmental policy can pay off if profits of the environmental service industry are taken into account. We consider a two-period model with one firm in each country competing on a third market. Emissions can be substituted by the clean factor when deciding upon the production technology. The unit costs of producing the clean factor in the second period are decreasing in the quantity produced in the initial period. We derive the optimal environmental policy for both periods from a national point of view and show that the presence of the environmental service industry can indeed lead to a national leadership in pollution control.     

The stability of German money demand: Tests of the cointegration relation

The Stability of German Money Demand: Tests of the Cointegration Relation. — In this study, two money demand functions are specified in single equation error correction as well as triangular error correction form involving real M1 (M3), real GNP, a short-and a long-term interest rate. Using various tests, it is shown that there may be a cointegration relation even after the German Monetary Union (GMU) was established in 1990. But the long-run coefficients of GNP and the interest rate probably have a structural break in 1973, when the Bundesbank changed its monetary regime, and in 1990, when the GMU was formed. The tests support weak exogeneity of real GNP and the interest rate.     

Development of policy in the ITU

As one of the oldest functional-purpose international organisations, the ITU is dedicated to voluntary agreements. These concern allocation of a scarce, internationally shared resourced, the radio frequency spectrum; standardisation of telecommunication services and systems; and joint planning. The organisation's policy making in pursuit of these objectives is outlined. Powers given to different organs are explained. Several cases are cited as illustrations of policy problems and their solutions. In summary, the rationale for the ITU's complex, federated structure is described.     

Visions to stay home by Visual services for home delivery

An appraisal of future, comprehensive visual telecommunication services is presented. Central to this appraisal is an identification of benefits the services may yield, and a separate examination of problems that might offset the benefits. While it appears that service providers and product suppliers will gain substantially from such services, benefits to users are not so evident.