Independence and the regulatory state—Telecommunications in Scotland and the rest of the United Kingdom

In the autumn of 2014 the residents of Scotland, but not other parts of the UK, will vote on whether to leave the UK and to become a separate state, with a positive vote leading to an independent parliament expected to be elected in 2016. It would remain within the EU and in compliance with its acquis communitaire. This paper identifies issues that would have to be addressed in preparing for and creating a new system of governance for telecommunications markets on that tight timescale.     

Violent visions of an ownership society: The land administration project in Petén, Guatemala

This article is a case study of phase one of the World Bank's land administration project in Petén, Guatemala. Although the project's stated aims are merely to formalize an existing set of individual landed property rights, this development intervention necessarily changes the property regime, thereby changing underlying relationships that land as property embodies. Impact evaluations conducted by development economists may fail to substantively address displacement and violence that occur as a short-term effect of the project and long-term disparate impacts of the project that may exacerbate existing inequalities. The case of Petén also highlights the possibility for violent enforcement of property boundaries, where conflict surges between the disenfranchised and those who gain power under the new property regime.     

A portfolio model of capital flows to emerging markets

Since the crises of the late 1990's, most emerging market economies have built up substantial positive holdings of US dollar treasury bills, while at the same time experiencing a boom in FDI capital inflows. This paper develops a DSGE model of the interaction between an emerging market economy and an advanced economy which incorporates two-way capital flows between the economies. The novel aspect of the paper is to make use of new methods for analyzing portfolio choice in DSGE models. We compare a range of alternative financial market structures, in each case computing equilibrium portfolios. We find that an asymmetric configuration where the emerging economy holds nominal bonds and issues claims on capital (FDI) can achieve a considerable degree of international risk-sharing. This risk-sharing can be enhanced by a more stable monetary policy in the advanced economy.     

Social relationships and social anxiety appeals in direct-to-consumer advertising

The use of social relationships as a promotional tool in direct-to-consumer (DTC) advertising has received limited attention despite relational impacts on illnesses and empirical evidence supporting social relationships’ positive influence with some patients. This content analysis provides insights into social relationship appeals’ use in DTC magazine ads for each drug-class category. Further, the current study introduces the concept of social anxiety appeals into the DTC advertising literature, which had previously focused more on fear appeals, such as the fear of pain. Social relationships appeared in 42.5% of the 421 DTC ads included in the sample. Social anxiety appeals appeared in 28.5% of ads with social relationships. Types of social relationships depicted (nonromantic, romantic, non-human pets or cartoon characters, and family) vary across drug-class categories. The current study affirms that DTC advertisers frequently appeal to the theoretical importance of relationships as an aid to improved health. It also raises ethical issues when neither the implied improvements in relationships nor decreased social anxiety are direct consequences of prescribed use of the advertised pharmaceutical.     

Forward guidance and expectation formation: A narrative approach

How forward guidance influences expectations is not fully understood. To study this, I construct central bank data that includes forward guidance and its attributes, central bank projections, and quantitative easing, which I combine with survey data. I describe how, when, and where forward guidance has worked. I estimate that forecasters revised their interest rate forecasts in the intended direction by five basis points on average following a forward guidance change. I provide estimates for The Federal Reserve, European Central Bank, Bank of England, Bank of Canada, Reserve Bank of Australia, Reserve Bank of New Zealand, Sveriges Riksbank, and Norges Bank.     

Guanxi and its influence on the judgments of Chinese auditors

Over a decade ago China launched a large-scale programme to develop science parks with on site business incubators. A major goal of this project was to redesign the economic architecture by creating institutions that would greatly improve the nation's innovation system. Science parks, following the western model, were considered appropriate institutions. This is because they could harness China's many public research institutes and universities and so help promote both existing indigenous firms and emerging new technology-based private firms. Since its inception, however, the programme has evolved to serve multiple purposes, of which innovation system reform is arguably only one, minor goal. This article investigates the evolution of China's two-pronged strategy to develop science parks and business incubators in pursuit of institutional reform of its innovation system.     

How well do patent citations measure flows of technology? Evidence from French innovation surveys

Patent citation data are used in a growing body of economics and business research on technological diffusion. Until now, there exists little evidence on whether patent citations are a good measure of knowledge flows. Our paper assesses the legitimacy of using European patent citations as a measure of technology flows. It uses information from the Community Innovation Survey collected by the French Service des Statistiques Industrielles (SESSI), which contain firms’ responses to questions about their innovative activity. We show that patent citations are indeed related to firms’ statements about their acquisition and dispersion of new technology, but that the strength and statistical significance of this relationship varies across geographical regions and across channels of knowledge diffusion.