A New Data Base on State-Owned Enterprises

Privatization of state-owned assets was a central economic reformof the 1980s and 1990s. Lack of data has made it impossibleto judge the extent to which privatization has diminished theimportance of state ownership in the economy or changed theperformance of state-owned enterprises. This article introducesa new data base on state-owned enterprises, the first sincethe mid-1980s, which partly fills this information gap. TheBureaucrats in Business data base provides time-series datafor up to 88 countries on the share of state enterprises inthe overall economy, investment, employment, and internal andexternal credit as well as their overall surplus or deficitand the size of transfers to and from national treasuries. Thearticle presents the rationale for the data base, describesits seven measures of state enterprise size and performance,and explores possible uses of the information.     

Prison Industries and the private sector

In 1979, Congress passed the Prison Industry Enhancement (PIE) Act to promote private production within prisons. As of June 1994, 31 states had instituted PIE projects. Using a public choice model, this paper attempts to explain the likelihood that a stat ewould choose to participate in PIE. Using logistic regression, the study finds that states with stronger unions, democratic governors, and high unemployment will be less likely to allow PIE projects. Alternatively, states that exhibit a progressive prison management will be more likely to allow PIE projects.     

Firm Characteristics and the Speed of FDA Approval

This paper empirically examines the effect of firm-specific characteristics on the length of time required by the Food and Drug Administration (FDA) to review and approve new-drug applications between 1990 and 1992. The approach treats regulatory decisions as endogenous and explains the variation in regulatory behavior as a function of differences that exist between firms and drugs. Results show that, controlling for drug-specific characteristics, regulators respond to firm-specific characteristics when evaluating new drug applications. For instance, firms that are less diversified and more R&D-inten-sive receive shorter review times for their new-drug applications than more diversified and less R&D-intensive firms. The reason is that most firm characteristics signal information to reviewers about either firm reputation or application quality. This information reduces reviewers' uncertainty about approving a dangerous or ineffective drug and leads to faster review times. The results suggest that regulators respond to the heterogeneities among firms in the pharmaceutical market in systematic ways.     

Currency forecasting: an investigation of extrapolative judgement

This paper aims to explore the potential effects of trend type, noise and forecast horizon on experts' and novices' probabilistic forecasts. The subjects made forecasts over six time horizons from simulated monthly currency series based on a random walk, with zero, constant and stochastic drift, at two noise levels. The difference between the Mean Absolute Probability Score of each participant and an AR(1) model was used to evaluate performance. The results showed that the experts performed better than the novices, although worse than the model except in the case of zero drift series. No clear expertise effects occurred over horizons, albeit subjects' performance relative to the model improved as the horizon increased. Possible explanations are offered and some suggestions for future research are outlined.     

A model for economic analysis

The production process model is proposed as a way to guide economic evaluation of health care projects, programs, technology, or research. The model is illustrated with data from the development of a home care computer intervention.     

A conceptual model of the impact of advertising on service employees

Although the importance of the service employee in providing satisfying service encounters has frequently been noted, the effects of organizational marketing actions on employees has been virtually ignored. The purpose of this article is to examine the impact of advertising on service employees. Ads can have positive impacts on employee organizational commitment by depicting roles which will encourage congruent expectations among the organization, the employee, and the customer; by clarifying workers' roles in the organization; by communicating the degree to which the organization values employees; and by being accurate in their messages about services, organizational policies, and treatment of employees. This employee organizational commitment is critical to the provision of quality service to consumers.     

Divergent Environmental Regulations and Trade Liberalization

The market and nonmarket consequences of environmental regulations and of trade liberalization under different regulatory regimes are explored in the context of the NAFTA through simulation modeling of the North American sheep and lamb markets. Producers are able to shift much of the cost of regulation to domestic and foreign consumers and thus gain from regulation. In the cases investigated, nonmarket effects are unlikely to reverse the sign of market gains or losses, and "level playing field" regulations may or may not be preferred.     

Productivity Growth in the UK Regions, 1968–1991

This paper provides estimates of total factor productivity growth for the regions of the UK. It shows that the peripheral regions generally performed better than the national average in the 1980's. A model to explain TFP growth found that much of this increase can be attributed to a general upskilling of a more flexible workforce, falling plant sizes, and a 'catch-up' effect in the unionized sector.