Networks,Regional Development and Democratic Control

The networking literature has burgeoned in recent years within a complex cross‐disciplinary field and particularly in economic geography and regional planning. Networks have been analysed both as organizational expressions of globalization, linked to claims about the rise of the network society, and as territorial and cultural systems of exchange. Concepts of networks and networking have been accepted as positive, and sometimes also as progressive or radical within both social science and policy discourses. In this article we analyse regionally embedded economic networks and the EU’s urban and regional policy networks as a new mode of administration, at a variety of spatial scales. Little attention has been paid to the theoretical implications of using the concept of network as a social metaphor or to the operation of actually existing networks, as a result of conceptualizing networks in ways that deny their constitutive inequalities, asymmetries and democratic deficits. This darker side has been pushed into the shadows by the rhetorical emphasis on the benefits claimed for networked organizational forms.     

Contractibility and Transparency of Financial Statement Information Prepared Under IFRS: Evidence from Debt Contracts Around IFRS Adoption

We outline several properties of IFRS that potentially affect the contractibility or the transparency of financial statement information, and hence the use of that information in debt contracts. Those properties include the increased choice among accounting rules IFRS gives to managers, enhanced rule‐making uncertainty, and increased emphasis on fair value accounting. Consistent with reduced contractibility of IFRS financial statement information, we find a significant reduction in accounting‐based debt covenants following mandatory IFRS adoption. The reduction in accounting covenant use is associated with measures of the difference between prior domestic standards and IFRS. Because IFRS adoption changed financial reporting in many ways simultaneously, it is difficult to trace the decline in accounting covenant use to individual IFRS properties, though we report larger declines in accounting covenant use in banks, which have a higher proportion of assets and liabilities that are fair‐valued. Our findings are better explained by reduced contractibility than by increased transparency, which would predict reduced nonaccounting covenant use as well, whereas we observe increases. Overall, we conclude that IFRS rules sacrifice debt contracting usefulness to achieve other objectives, such as provision of accounting information relevant to valuation.     

GLOBALIZATION,GENDER, AND GROWTH

We consider the effect of globalization on fertility, human capital, and growth. We view globalization as creating market opportunities for employment in less developed countries. We construct a specific model of household decision making, drawing on empirical observations in the development economics literature, and show that if the market opportunities produced by globalization are for women, then globalization reduces fertility and increases human capital formation. If the opportunities are for men, then fertility increases and human capital formation falls. We then show that globalization that produces job opportunities for women increases growth and produces a long run steady state with higher per capita consumption than would prevail either without globalization, or with globalization that creates jobs only for men.     

A Remark on Color‐Blind Affirmative Action

Faced with legal challenges to explicitly race‐contingent admissions policies, elite educational institutions have turned to criteria that meet diversity goals without being formally contingent on applicant identity. We establish that under weak conditions that apply generically, such color‐blind affirmative action policies must be nonmonotone, in the sense that within each social group, some students with lower scores are admitted while others with higher scores are denied. In addition, we argue that blind rules can generate greater disparities in mean scores across groups conditional on acceptance than would arise if explicitly race‐contingent policies were permitted.     

DEMOGRAPHIC DEMAND SYSTEMS WITH APPLICATION TO EQUIVALENCE SCALES ESTIMATION AND INEQUALITY ANALYSIS: THE AUSTRALIAN EVIDENCE

This paper proposes and applies an alternative demographic procedure for extending a demand system to allow for the effect of household size and composition changes, along with price changes, on expenditure allocation. The demographic procedure is applied to two recent demand functional forms to obtain their estimable demographic extensions. The estimation on pooled time series of Australian Household Expenditure Surveys yields sensible and robust estimates of the equivalence scale, and of its variation with relative prices. Further evidence on the usefulness of this procedure is provided by using it to evaluate the nature and magnitude of the inequality bias of relative price changes in Australia over a period from the late 1980s to the early part of the new millennium.