Regional policy design: An analysis of relocation, efficiency and equity

Despite substantial regional expenditure at both national and community level, European regional policies do not appear to deliver. Evidence suggests that neither efficiency gains nor reduced regional inequalities result. If there is any positive impact at all, then it is at most a redistributional one. If transfers are mainly redistributional in nature, would policies based on non-distortionary financing be a better route to follow? We consider the alternatives to a distortionary regional policy that forces the delocation of activities. Are non-distortionary policies always relatively more efficient than distortionary ones? We analyse these questions employing a new economic geography model, which also takes into account the importance of knowledge spillovers for productivity, industry location and policy. We show that the effectiveness of different regional policies depends on (i) intra-industry knowledge spillovers, (ii) inter-industry knowledge spillovers and (iii) trade costs. Our analysis suggests that the European approach to the elimination of regional inequalities may, relatively, be the more costly alternative.     

Addressing the Underemployment of Persons with Disabilities: Recommendations for Expanding Organizational Social Responsibility

The underemployment of persons with disabilities continues to be a societal problem; many persons with disabilities have difficulty securing and maintaining employment. This difficulty contributes to the relatively higher rates of poverty among persons with disabilities as well as their underutilization as productive members of society. This research examines factors that contribute to this underemployment problem. Based on this examination, we develop questions organizations must consider for addressing the problem. These questions are based on creating working relationships for persons with disabilities at an individual level that may be an extension of an organization’s corporate social responsibility program. Individuals with disabilities have a right to obtain and maintain successful employment opportunities; this research outlines the factors at play and provides suggestions for employers to consider in addressing this social problem.     

Hospital RNs' and CNOs' perceptions of the impact of the nursing shortage on the quality of care

The results of analyses of the 2002 and 2004 National Sample Surveys of RNs and the 2004 National Sample of CNOs document the widespread perception that the shortage of nurses is a major problem for the overall quality of patient care in hospitals. In the eyes of the majority of hospital RNs and CNOs surveyed, care processes involving communication, timely response to pages and telephone calls, delays in patient discharges, and the time patients had to wait for tests and procedures were all affected negatively by the nursing shortage. These results are not encouraging.     

Is the shortage of hospital registered nurses getting better or worse? Findings from two recent national surveys of RNs

The results of two recent national surveys of RNs that were conducted at a time when the nursing shortage in the U.S. was in full force (2002) and 2 years later (2004) were compared. The findings provide a mixed assessment: on the one hand, there is evidence that the shortage has eased since 2002 and that there have been notable improvements in the lives of nurses; on the other hand, the shortage has had a negative impact on hospitals and nurses, and longstanding problems associated with the workplace environment remain.     

A Preliminary Investigation into the Role of Positive Psychology in Consumer Sensitivity to Corporate Social Performance

Research on positive psychology demonstrates that specific individual dispositions are associated with more desirable outcomes. The relationship of positive psychological constructs, however, has not been applied to the areas of business ethics and social responsibility. Using four constructs in two independent studies (hope and gratitude in Study 1, spirituality and generativity in Study 2), the relationship of these constructs to sensitivity to corporate social performance (CSCSP) were assessed. Results indicate that all four constructs significantly predicted CSCSP, though only hope and gratitude interacted to impact CSCSP. Discussion focuses upon these findings, limitations of the study, and future avenues for research.     

Is there Regional Tax Competition? Firm Level Evidence for Belgium

Summary This is the first paper that looks at regional tax competition within one single country. In many countries in Europe, regions within a country differ substantially in their economic development and attractiveness to firms. Belgium is a typical example of a country where the economic situation of its three regions is very different. Our findings are indicative of regional tax competition, with a lower Effective Tax Rate (ETR) in the peripheral region of Wallonia than in Flanders. In addition to location variables, our empirical model explaining firm level heterogeneity in ETRs includes firm characteristics, sector membership and variables capturing statutory tax breaks. We thank the Research Council of the Catholic University of Leuven for funding this research. A special thanks goes to Jozef Konings, Willem Buijink, Laurence van Lent, Wim Moesen, Christophe Croux and Frans Vanistendael, for providing useful feedback on this project. We also thank participants of a LICOS-K.U.Leuven seminar and a doctoral workshop at the Universities of Maastricht and Antwerp for useful comments.     

Can financial innovation help to explain the reduced volatility of economic activity?

The stabilization of economic activity in the mid 1980s has received considerable attention. Research has focused primarily on the role played by milder economic shocks, improved inventory management, and better monetary policy. This paper explores another potential explanation: financial innovation. Examples of such innovation include developments in lending practices and loan markets that have enhanced the ability of households and firms to borrow and changes in government policy such as the demise of Regulation Q. We employ a variety of simple empirical techniques to identify links between the observed moderation in economic activity and the influence of financial innovation on consumer spending, housing investment, and business fixed investment. Our results suggest that financial innovation should be added to the list of likely contributors to the mid-1980s stabilization.     

Trade liberalisation and regional integration: the search for large numbers

We surveyed the empirical literature using multi–country computable general equilibrium (CGE) models to analyse potential and actual regional trade agreements (RTAs). The studies indicate that these RTAs improve welfare, that trade creation greatly exceeds trade diversion, and that they are consistent with further global liberalisation. The welfare gains are bigger when models incorporate aspects of “new trade theory” such as increasing returns, imperfect competition, and links between trade liberalisation, total factor productivity growth, and capital accumulation. We also conjectured that an RTA expands market size and stability, allowing firms to pursue economies of fine specialisation, generating additional “Smithian” efficiency gains.     

Information source usage in the migration decision

This paper examines the characteristics of information source usage in the migration decision. Its first task is to put forth a conceptual frame-work. This draws upon a framework developed earlier by one of the authors, but extends it to include phases of the migration decision-awareness, interest, and evaluation-under the hypothesis that the intensity of information source usage and the type of information gathered varies by phase. The second task involves reporting the results of a survey based upon a questionnaire that incorporated the conceptual framework. This instrument was administered to 274 migrants to Columbus, Ohio. In reporting the empirical findings of the survey, three questions are addressed: (1) What is the pattern, frequency and effectiveness of information source usage by migrants? (2) What type of information is obtained from each information source? (3) Does information source usage and/or type of information obtained vary by phases of the migration decision process?