Pressure and Politics in Financial Accounting Regulation: The Case of the Financial Conglomerates in the Netherlands

This article examines the political process of promulgating two controversial laws which pertain to the reporting of Dutch financial conglomerates. Central to the study is the exploration of the lobbying efforts observed during the process, and the interaction between the government, the supervisors of banks and insurance companies, the industry and its associations, and the users and auditors of annual reports of financial conglomerates. Previous studies in accounting-rule development have often ignored influences that do not fall within the formal regulatory procedures. By adopting an inductive research approach, this study explores in some detail the behaviour of participants, including their use of informal lobbying methods. Pluralist theory is used to explain the nature of the political process and the behaviour of interested parties. The findings indicate that the Dutch political process in accounting matters is indeed pluralistic. Although auditors and producers of accounts seem to have greater possibilities to participate, the users of corporate reports are able to voice their opinion effectively. Overall, the users' preferences were acknowledged in the final rules governing the reporting by financial conglomerates.     

Food security and structural adjustment: Empirical evidence on the food price dilemma in Southern Africa

This article considers effects of price on food security and the food equation in the developing areas of South Africa. Firstly, the food (or hunger) equation is examined in more detail. Secondly, thefood price dilemma is analysed using empirical data obtained elsewhere in sub‐Saharan Africa. Thirdly, the situation in the developing areas of South Africa is examined. Empirical evidence in sub‐Saharan and Southern Africa accentuates the skewness and concentration in the market participation profile of rural households with respect to especially staples. Supply response to higher prices in these areas is also limited. These findings place the food price dilemma on centre stage in Southern Africa.     

INTEREST,DISTRIBUTION OF VALUE ADDED AND INFLATION: INFLATION-INDUCED DIFFICULTIES IN THE INTERPRETATION OF DUTCH NATIONAL ACCOUNTS*

The present paper examines the inflationary bias of sectoral income transactions in national accounting data. An inconsistency of these data is pointed out. Alternative income measures are estimated by adjusting the standard national accounting data for inflationary gains and losses. These gains and losses arise from financing by loan capital. Several issues concerning income concepts and alternative methods for the measurement of inflationary gains and losses are discussed. It is concluded that an adjustment of sectoral income data for these gains and losses produces a very different picture of the sectoral distribution of income.     

The Volume and Price of Indonesian Exports, 1823 To 1940: The Long-Term Trend and its Measurement 1

This article is concerned with indices of export volume and prices in Indonesia from 1823 to 1940. It discusses the sources from which the quantitative information on exports is derived. Previous indices are shown and their shortcomings are considered. Next, Laspeyres quantity indices and Paasche unit value and price indices for agricultural and total exports are presented. These indices are based on fixed weights for eight sub-periods. The paper also discusses the features and shortcomings of the more sophisticated Divisia index, and concludes with some remarks on the long-term trend of exports from Indonesia.     

Should Higher Education Subsidies Depend on Parental Income?

In many countries, student grants, tuition fees, and subsidizedloans depend on parental income. This paper examines the efficiencyand distributional effects of such conditioning, and assesseswhether it is optimal practice when the government wants toreduce after-tax income inequality in the most efficient manner.Increasing the mean level of education among the work-forcecompresses wage differentials by level of education and therebythe pre-tax income distribution. Hence, subsidizing educationmay be part of an optimal redistribution policy. However, educationsubsidies mainly benefit high-ability students, limiting theirredistributive virtues. Conditioning education subsidies onparental income may enable the government to reduce inframarginalsubsidies, mainly benefiting high-ability students, while preservingthe marginal subsidy, and thus the favourable effect on themean education level which leads to wage compression.     

THE ECONOMICS OF COMMUTING AND THE URBAN LABOUR MARKET

ABSTRACT. The spatial distribution of households and firms, or urban spatial structure, is a core element of the study of urban economics and the crucial determinant of commuting patterns. This paper examines developments in the analysis of urban spatial structure and commuting are related to the urban labour market—that is the analysis of labour supply and labour demand in a spatial context. These developments have been overlooked in the traditional approach to urban structure and commuting where most attention has been devoted to the markets for land and housing rather than the market for labour. Yet a little reflection suggests that the labour market might have a great deal to do with the location decisions of households and firms, and hence with commuting patterns. We argue that much criticism of the economic analysis of urban structure and commuting can be addressed by explicit incorporation of the labour market into the conventional model of urban location. This criticism includes findings that the theory cannot explain the tendency for richer households to live farther from the central business district and commute farther to work (Wheaton, 1977) and findings of substantial unexplained or 'wasteful' commuting according to conventional theory (Hamilton, 1982). The paper begins by outlining the basic model of residential location and commuting (Section 2). We then consider extensions that involve the introduction of labour supply decisions and which determine the value of commuting time (Section 3). More recent extensions involve the introduction of decentralized workplaces (Section 4) and, logically, the issues of job search and migration (Section 5). We conclude with a summary of the progress in incorporating labour market behaviour into the analysis of urban structure and commuting and our suggestions for further research in this area.     

Who's afraid of an open insurance market?

Although until recently foreign markets were profitable only for insurers dealing with commercial risks, it may be assumed that the development of the free insurance market will have an impact also on the insurance of consumer risks. The insurer may remain passive in the hope that the prospective policy-holder will take the initiative to cross the border, or he may actively involve himself by advertising his services in the foreign country. In these endeavours, the insurer will need the support of the insurance intermediary. It is therefore to be expected that the popularity of the so-called broker's cover will increase vastly. This will not enhance the transparency of the insurance market. The option, open to the EC Member States, to decide whether or not to go for freedom of choice of law rule, does not make it easier to coordinate and harmonize private international insurance law among the Member States.