von Thünen: Capital,Production Functions,Marginal Productivity Wages,and the Natural Wage

This paper puts seminal contributions to theory of production functions and maximization of explicit quantitative objective functions by Johann Heinrich von Thünen into a systematic historical perspective. We show that his comprehensive ‘Tableau Economiques’ do imply two exact parametric production functions. Moreover, the renowned ‘geometric mean wage’ formula is restated as an exact CES marginal labor productivity wage for σ = 2. We review four alternative modes of normative (natural) wage calculations without an explicit production function, and conclude that von Thünen's natural wage differentiation formulas are bona fide alternatives for deriving the natural wage formula.     

Ambient Taxes Under m-Dimensional Choice Sets, Heterogeneous Expectations, and Risk-Aversion

We consider the design of ambient taxes forrisk-neutral and risk-averse polluters whenpolluters and the regulatory agency haveasymmetric information about environmentalrelationships and probabilities associatedwith random events. Unlike prior work, we showthat under these conditions, optimal ambienttaxes must be firm-specific, and accompaniedby additional incentives to influencepolluters' choices of abatement techniques.     

PRODUCTIVE RECESSIONS AND JOBLESS RECOVERIES

We explore international variation in business cycle dynamics to gain insights into the recent pattern of robust productivity growth during downturns (productive recessions) and weak employment growth during recoveries (jobless recoveries) seen in some advanced economies. We find that sectoral change is associated with productive recessions but that labor market rigidity can impede reallocation and reduce the probability of a productive recession. We also find evidence of a link between productive recessions and jobless recoveries and that recessions dominated by reductions to employment, rather than changes in average employee hours, are more likely to be associated with jobless recoveries. (JELF44, E32)     

PUBLIC ENTERPRISE IN THE EUROPEAN UNION: prospects and constraints

ABSTRACT * : The author highlights the problems and prospects of public enterprises within the European Union, as well as the major adjustments considered necessary for these enterprises to fulfil their role. He argues that general criteria determining whether the production of goods and services should be in the public sector cannot be readily established in the European Union, since public supply does not solely depend on the specific economic characteristics of the particular good or service, but also on the prevailing social, cultural and economic conditions in each country, on the economic policy pursued, and on the structural characteristics of its private and public sectors, including entrepreneurial and trade union behaviour.     

The maintenance, funding and modification of retiree medical benefits

Retiree medical benefits are an ever-growing concern as costs escalate and the date for implementation of Statement of Financial Accounting Standards No. 106 approaches. These authors summarize case law relevant to employers' right to modify or terminate benefits and discuss methods of funding theses liabilities.     

Cutting-edge technologies

Low llevel radioactive wastes are generated from reactor sources as well as fsrom non-reactor sources. In recent years, about 50,000 m³ per year of such wastes have been generated in the USA and about 10,000 m³ per year in Canada. Direct disposal of these wasters in shallow ground has been a favoured method in both countries in the past. However, with recent advances in waste management. technologies are being applied to achieve optimum goals in terms of protection of human health and safety and the environment, as well as cost-effectiveness. These technologies must be applied from the generation sources through waste minimization and optimum segregation-followed by waste processing, conditioning, storage, and disposal. A number of technologies are available and can be applied as appropriate, given the physical, chemical, and radiological characteristics of the waste. Interim and retrievable storage can be accomplished in a wide variety of storage structures, and several types of engineered disposal facility designs are now available. By applying an integrated approach to radioactive waste management. potential advers impacts on human health and safety and the environment can be minimized.     

LABOR TURNOVER IN THE USA AND JAPAN: A TALE OF TWO COUNTRIES

Abstract. The labor turnover rate in Japan is less than half the US level. A small-scale survey of companies that operate in both Japan and the USA was conducted to examine reasons for the discrepancy. The main findings are that Japanese human resource policies, including steep seniority-earnings profiles, extensive fringe benefits, participatory management, and a reluctance to recruit experienced workers from other firms, contribute to the lower Japanese turnover rate. Additionally, workers of Japanese descent in the USA have a somewhat lower labor turnover rate than other Americans, suggesting some role for cultural differences.