Flunking economics?

Economists are in revolt over President Clinton's health care reform proposal. Many contend that the Administration is abandoning free-market principles and embracing price controls that could have disastrous consequences. But others argue that traditional rules of supply and demand don't apply to the health care sector.     

Employee assistance plans in Canada

In Canada as in the United States, employee assistance plans have evolved from their early concentration on employees' alcohol-related problems to a much more comprehensive concern with employees' total well-being. Studies have documented the effectiveness of this approach.     

Portfolio Capital Flows: Hot or Cold?

A distinction is often made between short-term and long-termcapital flows: the former are deemed unstable hot money andthe latter are deemed stable cold money. Using time-series analysisof balance of payments data for five industrial and five developingcountries, we find that in most cases the labels "short-term"and "long-term" do not provide any information about the time-seriesproperties of the flow. In particular, long-term flows are oftenas volatile as short-term flows, and the time it takes for anunexpected shock to a flow to die out is similar across flows.long-term flows are also at least as unpredictable as short-termflows, and knowledge of the type of flow does not improve theability to forecast the aggregate capital account.     

The impact of tax on foreign direct investment: Empirical evidence and the implications for tax integration schemes

We estimate the impact of taxation on foreign direct investment (FDI) flows, using data on flows between seven countries for 1984 through 1989, and a sophisticated measure of the cost of capital. We find that the choice between domestic investment and total outward FDI is not significantly affected by taxation but that taxation does affect the location of outward FDI. These results are used to examine the impact of tax integration systems. Giving a tax credit to foreign shareholders may induce a large increase in inward FDI from exemption countries but not from partial-credit countries. For the United States, the total effect would be small.     

Methods for estimating the population contribution to environmental change.

"This paper introduces general methods for quantitative analysis of the role of population in environmental change. The approach is applicable over a wide range of environmental issues, and arbitrary regions and time periods. First, a single region is considered, appropriate formulae derived, and the limitations to quantitative approaches discussed. The approach is contrasted to earlier formulations, and shown to avoid weaknesses in a common approximation. Next, the analysis is extended to the multiple region problem. An apparent paradox in aggregating regional estimates is illuminated, and the risk of misleading results is underscored. The methods are applied to the problem of climate change with two case studies, an historical period and a future scenario, used to illustrate the results. The contribution of change in population to change in green house gas emissions is shown to be significant, but not dominant in both industrialized and developing regions."     

Spouses' materialism: Effects of parenthood status,personality type,and sex

This study responds to a call for broadened conceptualizations of materialism and its role in self-definition (Richins & Dawson, 1992). Data from 202 spouses were analyzed for relationships among materialism, parenthood status, and personality type, defined as spousal warmness or coolness (Csikszentmihalyi & Rochberg-Halton, 1981). Testable hypotheses were based on the concept of object-subject interchangeability (Claxton & Murray, 1994) as a mechanism of self-definition. The hypothesis was supported that cool spouses without children would have the highest materialism score. Total sample materialism scores were related to parenthood status and to several interactions among parenthood status, personality type, and sex of respondent. Analyzed by sex of respondent, men's materialism scores were related to parenthood status and to the interaction between parenthood status and personality type. Women's materialism scores were not related to any independent variables or interactions. Consumer policy implications are discussed.

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Zusammenfassung Materialismus von Ehegatten: Effekte von Elternschaft, Persönlichkeitstyp und Geschlecht Die Studie reagiert auf die Forderung nach einer breiteren Konzeptualisierung der Materialismus-Variable und der Rolle von Materialismus bei der Selbst-Definition. Die Daten stammen von 202 Ehegatten und wurden auf die Beziehungen hin analysiert, die zwischen Materialismus, Elternschaft und Persönlichkeitstyp (definiert als eheliche WÄrme und eheliche Nüchternheit) bestehen. Die Hypothesen basieren auf dem Konzept der Objekt-Subjekt-Austauschbarkeit als Mechanismus der Selbst-Definition. BestÄtigt wurde die Hypothese, da\ nüchterne Ehegatten ohne Kinder den höchsten Materialismuswert haben. Insgesamt waren die Materialismuswerte abhÄngig von der Variable Elternschaft und von mehreren Wechselwirkungen zwischen Elternschaft, Persönlichkeitstyp und Geschlecht des Antwortenden. Eine geschlechtsspezifische Analyse zeigt, da\ die Materialismuswerte der MÄnner mit Elternschaft und mit der Wechselwirkung zwischen Elternschaft und Persönlichkeitstyp verbunden sind. Bei den Materialismuswerten der Frauen zeigte sich keine Beziehung zu einer der unabhÄngigen Variablen oder den Wechselwirkungen. Der Beitrag schlie\t mit einigen verbraucherpolitischen Implikationen.

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The study is based on the first author's dissertation. The authors gratefully acknowledge the assistance of a 1993 summer research grant from East Carolina University, and the reviewers' helpful comments.