Asset specificity and economic organization

This paper examines the optimization problem of firm and market organization in which both production cost and transaction cost differences are expressed as a function of asset specificity. In general, markets enjoy advantages by aggregating the demands of many buyers, thereby realizing economies of scale or scope. Such production cost savings need to be assessed in relation to the transaction cost advantages that internal organization sometimes enjoys over markets in adapting to changed circumstances. As it turns out, both production cost economies and the transaction cost differences between firm and market organization vary systematically with the characteristics of the investments. This paper employs a unified framework to assess the choice of organization form. The condition of asset specificity is featured.     

Institutional Resilience in a Changing World Economy? The Case of the German Bankking and Chemical Industries

This paper examines whether there has been a transformation towards company-specific and unitarist industrial relations in Germany. On the basis of 25 case studies of employment practices in German and foreign-owned banks and chemical firms as well as industry data, the research found that the German system has so far remained relatively stable. Companies in the two industries studied generally still comply with the labour market institutions of multi-employer collective bargaining, workplace representation and initial vocational training. Pressures have been accommodated by changes within the system rather than by a radical change of the system.     

Mortgage Pricing: Some Provisional Empirical Results

We test some of the qualitative properties of mortgage pricing models. The models use option pricing techniques, focusing on prepayment as a call option. They imply a quite nonlinear relationship between mortgage price and coupon, interest rates and volatility. We test for both the first and second derivatives of the effects of these variables using data on Ginnie Mae mortgage backed securities. We find that the model is largely supported by the data.     

Parental job loss and the education enrollment of youth

Parental job loss from layoffs and business failures that occur when youth complete high school are found to be negatively related with enrollment at university and community college. Estimates using longitudinal data on Canadian youth and their parents are employed to identify both immediate and lagged effects of parental job loss on education enrollment. Parental job losses are also followed by significant falls in parental income. If the main pathway by which parental job loss affects youth education outcomes is via these income reductions, it that implies financial constraints on post-secondary education enrollment are important.     

Henry George's Political Critics

A bstract .   Twelve political criticisms of George were paramount after he formed his own political party in 1887: (1) his refusal to join with other reformers to link his proposals with theirs, or to absorb theirs into his own campaign; (2) his singular focus on ground rent to the exclusion of other forms of monopoly income, such as that of the railroads, oil and mining trusts; (3) his almost unconditional support of capital, even against labor; (4) his economic individualism rejecting a strong role for government; (5) his opposition to public ownership or subsidy of basic infrastructure; (6) his refusal to acknowledge interest-bearing debt as the twin form of rentier income alongside ground rent; (7) the scant emphasis he placed on urban land and owner-occupied land; (8) his endorsement of the Democratic Party's free-trade platform; (9) his rejection of an academic platform to elaborate rent theory; (10) the narrowness of his theorizing beyond the land question; (11) the alliance of his followers with the right wing of the political spectrum; and (12) the hope that full taxation of ground rent could be achieved gradually rather than requiring a radical confrontation involving a struggle over control of government.     

Enthusiastic Embrace or Critical Reception? The German HRM Debate

This paper discusses the reception of human resource management (HRM) in Germany. A review of the German HRM debate shows that this is dominated by business administration academics specializing in this field. In the past, these scholars as well as practitioners have generally embraced the techniques as well as the ideology of HRM. This finding can be explained by a relatively low emphasis on empirical research, a neglect of industrial relations issues, and a strong impact of theories and concepts developed in the USA. Today, however, there appears to be a change towards a more critical appreciation of the US HRM model and a more positive assessment of the German HRM model.     

Henry George and Europe: As Dissident Economist and Path-breaking Philosopher, He was a Catalyst for British Social Reform

Abstract . Henry George's influence was greater in the United Kingdom than in the United States. The 80s and 90s there were particularly favorable for the reception of his revolutionary ideas. Though, thanks to such thinkers as Alfred Russell Wallace and James and John Stuart Mill, a land reform movement already existed, its sudden rise to national significance was due to George. George's writing and speaking skills and his dedication moved many serious citizens into the political Left and heavily influenced men and women who became leaders of British non-Marxian socialism, at the formation and consolidation of their movement. While George's followers broke with both the Wallace and socialist movements, George's rhetorical talents awakened the broad circles of thinking people to a consciousness of the full range of the social question.