The US Current Account, New Economy Services, and Implications for Sustainability

The paper considers the implications for sustainability of the US current account of widespread uptake of New Economy services around the world. The main contribution is to estimate new income elasticities for international trade in New Economy services and incorporate these in a simple model of the current accounts. Widespread uptake of New Economy services around the world improves the potential for a sustainable US external balance through two channels. First, uptake of New Economy services raises global growth. Second, it narrows the asymmetry in income elasticity of US trade. But, reasonable estimates of these two structural improvements are not sufficient to stabilize the US current account deficit.     

A multidisciplinary assessment of waste paper recovery from an institutional source

A multidisciplinary study of waste paper recovery from a complex of state government office buildings was undertaken for the purpose of developing, evaluating and recommending cost-reducing modifications in the present operations. Previous research on resource recovery has focused on either the total mixed municipal stream or specific residual materials within that stream. Little work has investigated the recycling potential of wastes from a particular institution such as state government which generates a considerable volume of waste paper. A major thrust of this research was a survey of the office workers and custodians who must participate in a waste paper recycling program. The economic viability of waste paper recovery programs is highly contingent on voluntary willingness of office workers to sort reclaimable residuals at the point of discard. This study demonstrated that office workers were receptive to recycling program, but that mere receptivity could not guarantee a successful program unless the participants were adequately advised on how to make distinctions between salvageable and nonsalvageable materials. Reluctance to support any administrative role change was found among custodial workers. This study also illustrated the financial advantages of manual separation at the source, as well as the impact of central storage and other modifications on the economics of the present system.     

U.S. monetary policy indicators and international stock returns: 1970-2001

It is documented in the literature that U.S. and many international stock returns series are sensitive to U.S. monetary policy. Using monthly data, this empirical study examines the short-term sensitivity of six international stock indices (the Standard & Poor 500 [S&P] Stock Index, the Morgan Stanley Capital International [MSCI] European Stock Index, the MSCI Pacific Stock Index, and three MSCI country stock indices: Germany, Japan, and the United Kingdom) to two major groups of U.S. monetary policy indicators. These two groups, which have been suggested by recent research to influence stock returns, are based on the U.S. discount rate and the federal funds rate. The first group focuses on two binary variables designed to indicate the stance in monetary policy. The second group of monetary indicators involves the federal funds rate and includes the average federal funds rate, the change in the federal funds rate, and the spread of the federal funds rate to 10-year Treasury note yield. Dividing the sample period (1970-2001) into three monetary operating regimes, we find that not all policy indicators influence international stock returns during all U.S. monetary operating periods or regimes. Our results imply that the operating procedure and/or target vehicle used by the Federal Reserve Board (Fed) influences the efficacy of the policy indicator. We suggest caution in using any monetary policy variable to explain and possibly forecast U.S. and international stock returns in all monetary conditions.     

Die „Als-Obs” in der Finanzwirtschaftslehre

Ohne Zusammenfassung     

An ill-informed choice: empirical evidence of the link between employers’ part-time or temporary employment strategies and workplace performance in Canada

Many employers seek flexibility through part-time or temporary employment to achieve improved competitiveness and success. Using strategic choice theory, this study is a longitudinal examination of employers’ strategic decisions of reducing labour costs and using part-time or temporary workers on workplace performance. Workplace performance is measured through profitability, productivity and change in net operating revenue. Statistics Canada’s Workplace and Employee Survey longitudinal workplace data are used for the analysis. Results show that reducing labour costs strategy has no effect on profitability, productivity or change in net operating revenue, and using part-time or temporary workers strategy shows decreased profitability and productivity, and that there is no effect on the change in net operating revenue in Canadian workplaces studied. Based on these findings, we recommend that employers, in Canada and elsewhere, not only carefully weigh reducing labour costs and employing part-time or temporary workers strategies for workplace performance, but also reconsider such strategies and instead seek alternative means of improving workplace performance.     

Children’s Snacks,their Ads and Consumer Sovereignty

Abstract

The concept of sovereign consumer preferences is challenged from three sides: child consumers, unhealthy food and advertising. The two theoretical concepts of merit goods and libertarian paternalism are implemented in order to classify situations in which full consumer sovereignty does not apply. An empirical analysis of ads for children’s snacks reveals the libertarian paternalist perspective as helpful for understanding the demand for and justification of ‘soft’ governmental intervention in the case of the advertised snacks, whilst the ads for these snacks may well be demerit goods. The banning or heavy taxation of these ads is therefore advocated.     

Understanding the Political Motivations That Shape Rwanda's Emergent Developmental State

Twenty years after its horrific genocide, Rwanda has become a model for economic development. At the same time, its government has been criticised for authoritarian tactics and the use of violence. Missing from the often polarised debate are the connections between these two perspectives. Synthesising existing literature on Rwanda in light of a combined year of fieldwork, we argue that the Government of Rwanda is using the developmental infrastructure to deepen state power and expand political control. We first identify the historical pressures that have motivated the ruling Rwanda Patriotic Front (RPF) to reimagine the political landscape. Sectarian unrest, political rivalry, wider regional insecurity and aid withdrawal have all pressured the RPF to identify growth as strategic. However, the political transformation extends beyond a prioritisation of growth and encompasses the articulation of ideologies and new mindsets, the provision of social services and infrastructure and the reordering of the social and physical layout of the territory. Growth and social control go hand in hand. As such, this paper's main contribution is to bring together the two sides of the Rwandan debate and place the country in a broader sociological literature about the parallel development of capitalist relations and transformations in state power.     

On Returning Inflation to Target

To gauge the breadth of current inflation and prospects for inflation returning to target, we consider disaggregated measures of CPI infl ation to evaluate trends and then consider diff erent scenarios for the realisation for wages and prices.