The Scholarship of Teaching Economics

The authors report on the results of a telephone survey of 1,001 employees of seven large corporations conducted for the Business Roundtable as part of its public policy program. A set of 20 questions keyed to the Voluntary National Content Standards in Economics was embedded in the survey. A measure of economic literacy was constructed from the survey results. Greater economic literacy was associated with more overall education, more college economics coursework, high incomes, and being male. An examination of individual test questions revealed that previous college economics had substantial effects on employees' current economic literacy.     

Transitions to low carbon transport futures: strategic conversations from London and Delhi

Climate change is a global problem and across the world there are major difficulties being experienced in reducing carbon dioxide (CO₂) emissions. The transport sector in particular is finding it difficult to reduce CO₂ emissions. This paper reports on two studies carried out by the authors in London (UK) and Delhi (India). It considers the common objectives for transport CO₂ reduction, but the very different contexts and baselines, potentials for change, and some possible synergies.Different packages of measures are selected and scenarios developed for each context which are consistent with contraction and convergence objectives. CO₂ reduction potentials are modelled and quantified by package and scenario. London is considering deep reductions on current transport CO₂ emission levels; Delhi is seeking to break the huge projected rise in transport CO₂ emissions.The scale of policy intervention required to achieve these goals is huge and there is certainly little public discussion of the magnitude of the changes required. The paper argues for a ‘strategic conversation’ at the city level, using scenario analysis, to discuss the priorities for intervention in delivering low carbon transport futures. A greater focus is required in developing participatory approaches to decision making, alongside network investments, urban planning, low emission vehicles and wider initiatives. Aspirations towards equitable target emissions may assist in setting sufficiently demanding targets. Only then is a wider awareness and ownership of potential carbon efficient transport futures likely to take place.     

Does mandatory food safety training and certification for restaurant employees improve inspection outcomes?

The purpose of this study was to explore the relationship between mandatory food safety training and certification and inspection results of chain restaurants and independent restaurants, using current food safety inspection results of food service establishments in Central Florida. More specifically, this study examines whether there is any statistically significant difference in the violation frequency among chain and independent restaurants. Reducing the risk of any foodborne illness is a critical strategy that industry stakeholders should pursue in an area dominated by tourism such as Orlando, Florida. A one-way ANOVA was used to determine the differences between the two types of restaurants. Findings indicate that there is significant difference between chain and independent restaurants for critical violations. No difference was found when comparing chain verses independent restaurants for non-critical violations.     

Exchange rate determination: a theory of the decisive role of central bank cooperation and conflict

Economists’ faith that variable exchange rates benevolently equilibrate has been empirically disconfirmed. That faith is here tackled at its theoretical core with an exchange rate model that although ultra abstract, includes the undeniable fundamentals of market power and differential goals of central bankers and large-scale private players. It permits a game theoretic analysis under the assumption that all agents maximize their payoffs. The paper then relaxes the assumption of maximising agents, allowing for a more complex and thus realistic second version of the model that is interpretable within SKAT, the Stages of Knowledge Ahead Theory of risk and uncertainty. In an experimental setting, this second version of the model points to: a) the inability of agents in central banks, governments and the private real and financial sectors to operate in maximising ways; b) destructive central bank conflict; and c) the widely discrepant outcomes arising from the dynamics of individual personality differences. The paper’s theoretical and empirical findings thus both point to the merits of a single world currency.     

Explaining employers' illicit envelope wage payments in the EU‐27: a product of over‐regulation or under‐regulation?

The aim of this paper is to evaluate the prevalence in the 27 member states of the European Union of a little discussed illicit wage arrangement in which formal employees are paid two wages by their formal employers – an official declared salary and an additional undeclared wage, thus allowing employers to evade their full social insurance and tax liabilities. Reporting the results of a 2007 Eurobarometer survey involving 26,659 face‐to‐face interviews, the finding is that one in 18 formal employees received such an envelope wage from their formal employer and that envelope wage payments are more prevalent in member states with lower (rather than higher) levels of state intervention. The tentative conclusion is that illicit envelope wage payments are a product of under‐regulation, rather than over‐regulation, and that further research is now required to test the validity analysis of this thesis in other global regions.     

Measuring the quality of managerial learning on the job

This article describes the development of an instrument to measure the quality of managerial learning on the job. The instrument can be used to analyse the quality of the individual learning process on the job. The literature shows that two factors determine the quality of the learning process: the learning potential of the job context and the way in which the manager approaches their work. So the instrument has two components. The first component measures the four types of work experience that offer potential opportunities for individual learning. These are transitions, task-related characteristics, obstacles and support. The second component, the so-called learning behaviour, analyses the way the individual approaches the potential learning opportunities present in the job. This can also be divided into four categories: emergent learning, planned learning, instruction-oriented learning and meaning-oriented learning. Based on these two components, an instrument has been developed to measure the quality of learning on the job. This has been shown to be valid and reliable in a sample of European managers.     

ECONOMIC IMPACTS OF INCREASED MEXICO-U.S. LABOR MOBILITY: A Computational General Equilibrium Analysis

ABSTRACT

China has emerged as the fastest-growing economy in the world. In this context, I discuss the antecedents, characteristics, and consequence of China’s rise in the world economy with reference to the “four W” framework (What, When, Where, and Why). This article provides insights into the role of exports and FDI in China’s rise. Theoretical as well as real-life factors contributing to this success are also listed. Comparative analysis with other emerging countries, such as India, is provided. In addition, directions for future research are outlined.     

Public–Private Partnerships and Supply Chain Security: C‐TPAT as an Indicator of Relational Security

Following the attacks of September 11th, public and private entities recognized a need to protect the global supply chain from terrorist disruption. In response to this need, the U.S. Government partnered with industry to create the Customs‐Trade Partnership Against Terrorism (C‐TPAT) program. This research investigates the public–private partnership (PPP) relational aspects of C‐TPAT. C‐TPAT encourages firms to voluntarily improve their security competence and that of their supply chain partners. We introduce the concept of relational security in the context of PPPs. We define relational security as all activities that establish, cultivate, and maintain successful security exchanges between parties. We establish C‐TPAT as one indicator of relational security by demonstrating its ability to establish, cultivate, and maintain successful security exchanges between parties. Results indicate certified firms outperform noncertified firms in security performance, firm performance, and resilience.