State‐owned Enterprises: NWSC's Turnaround in Uganda

Abstract: Oversight agencies in the water sector emphasize performance monitoring based on outputs, such as customers served, volume delivered, and service quality. However, bureaucratic tendencies can curtail operational innovation and creativity. In situations where managers lack full operating knowledge and capacities, proactive and consultative monitoring and regulation can yield benefits. This study reviews the results of Uganda's National Water and Sewerage Corporation's (NWSC) approach to performance monitoring (and ‘self‐regulation’). The purpose of this study is to outline corrective actions undertaken by the NWSC Management and Staff to turn around performance, the sequencing of those steps, and the outcomes from this reform program. The NWSC focuses on promoting improvements in technical processes and input selection. Improvements in service quality and network expansion resulted from aligning performance improvement initiatives with the organization's financial performance and team development. The program's success required managing organizational rigidities and moving towards full cost‐recovery. In particular, organizational incentives and information flows encouraged managers to reduce rules and procedures that hindered strong performance. African proverbs are interspersed throughout the article to underscore key themes and lessons for those designing, implementing, and evaluating infrastructure sector reform initiatives.     

The Price-Quality Relationship—Revisited

Using price data collected in Indianapolis and Lafayette, Indiana, rank order correlations between price and quality were computed. These were compared to correlations based on price data obtained from the publications of consumer product testing organizations. It was found that price-quality correlations based on the price data furnished by consumer product testing organizations may not reflect price-quality correlations for specific markets. A second finding of the study suggests the existence of variability across store types with respect to price-quality correlations.     

Types and Amounts of Information Used by Efficient Consumers

This paper describes a research methodology which assesses the efficiency of consumer decision-making based on the types and amounts of informational cues used. A simple operational method is used to classify consumers into three levels of consumer efficiency based on how well they perform in assessing the optimal choice. The information chosen by perfectly efficient consumers, or those scoring at the maximum level of efficiency, is examined for indicators of optimal information seeking and decision-making techniques.     

Book of Intdernational Economics Affairs: MULTINATIONAL ENTERPRISES — A CONTINUING SAGA

AMERICAN MULTINATIONALS AND AMERICAN INTERESTS, by C. Fred Bergsten, Thomas Horst and Theodore H. Moran ALTERNATIVES TO THE MULTINATIONAL ENTERPRISE, by Mark Casson THE ECONOMICS OF MULTINATIONAL ENTERPRISE, by Neil Hood and Stephen Young     

A Non-parametric Estimation of Productivity with Idiosyncratic and Aggregate Shocks: The Role of Research and Development (R&D) and Corporate Tax

We develop a non-parametric technique framework for estimating firm-level Total Factor Productivity (TFP). Our paper has two major novelties: first, we propose a modelling of productivity with both firm-idiosyncratic factors and aggregate shocks. Second, we apply the Bayesian Markov Chain Monte Carlo (MCMC) technique that offers a numerical integration of productivity outside the posterior overcoming the restrictive assumptions about the relationship between productivity and variable production inputs. We implement our methodology in a group of 4,286 manufacturing firms from France, Germany, Italy, and the UK (2001–14). The results show that: (i) aggregate shocks matter for firm TFP evolution. The global financial crisis of 2008 caused severe, albeit short, adverse effects on TFP; (ii) there is substantial heterogeneity across countries in the way firms react to changes in R&D and taxation. German and UK firms are more sensitive to fiscal changes than R&D, while the opposite is true for Italian firms. R&D and taxation effects are symmetrical for French firms; (iii) the UK productivity handicap continues for years after the financial crisis; and (iv) there are substantial knowledge spillovers among German and Italian firms.