Alternative Perspectives on Post-Keynesian Price Theory

We present an overview of recent developments in methodological and epistemological discussion in post-Keynesian work. We use these developments as a basis for judging various contributions to the post-Keynesian literature on pricing, in particular the arguments presented by Lee in recent issues of this journal, whilst acknowledging the positive contribution of Lee's work, we argue that his critique of post-Keynesian pricing theory is flawed and that his 'empirical pricing model' is consequently ill-founded.     

Teaching the Minimum Wage in Econ 101 in Light of the New Economics of the Minimum Wage

The author argues that the recent controversy over the effect of the minimum wage on employment offers an opportunity for teaching introductory economics. Research findings on the minimum wage could be used to motivate alternative models of the labor market, such as monopsony and search models, and to teach students how economists test hypotheses with data.     

Foundations of an Institutional Theory of Regulation

Although the work of Clarence Ayres is held in high regard within the tradition of American Institutionalism, it has made little impact upon the study of technology more generally. Moreover, even within the Institutionalist tradition, his work is seen to embody a tension - on the one hand his dichotomy between technology and institutions is too strict, but to the extent that it is "softened," his main contributions are undermined. This paper argues that Ayres' work does have something to contribute to current technology debates, but that this contribution cannot be made if his conception is "softened" in the way that recent contributions suggest.     

Prostitution services: an exploratory empirical analysis

This study provides an empirical analysis of the market for some male prostitution services in the UK. Flexible working hours, part-time working, and multiple job holding are considered as important labour market characteristics in this service sector. Statistical models helping explain the provision of a deviant and a more mainstream sexual service is reported, utilizing cross-section data drawn from individual prostitute advertisements. The significance of various declared intrinsic endowments of the prostitutes are examined in relation to the offer of these services, including age, ethnicity, physique, and masculine demeanour.     

Parental preferences and choice of school

This paper provides a UK high resolution microeconometric study of parental preferences and the choice process for secondary schools. Given the particular geographical features of the region, first preference almost entirely related to one of two state schools, which is a situation that perhaps better reflects the real nature of the options faced by most parents in the UK. In contrast to earlier work, distance and access considerations were explicitly incorporated in the preference and choice models estimated and found to be a significant influence on parental decisions. Further significant factors were found, dependent upon the parents' actual choice of school.     

A coming ‘Magnesian’ age? Small states,the global system,and the international community

Since Plato, we have considered that the ideal polis, or political community, is the small state, akin to the idyllic ‘Magnesia’ of the Laws. The Platonic ideal, however, generally has been considered unrealistic. Even in the ancient world, the Alexandrine model ‐ an expanding, pluralistic network of large trading cities under a single aegis ‐ came to contradict it. Subsequent history, especially the imperialism of the nineteenth century which swallowed up many small polities around the world, seemed to prove that only large and powerful entities were ‘fit’ to survive. Why, then, are there still so many small‐sized countries in the world today? Why is their number actually increasing? Decolonisation, the end of bipolarity, democratisation, trade liberalisation and the digital revolution are five factors that have given small states more freedom. Yet many are vulnerable, and the economics of their situations are precarious. The workings of the global system, particularly the globalisation of business, may harm them even while promoting their freedom. The international community, a large part of which is now in fact made up of small states, should be prepared to act, for the global public good as well as out of sheer political and also environmental self‐interest, to help safeguard the livelihood of the world's many and varied small states, whose ‘Magnesian’ venues and values can be of both functional and normative importance for mankind as a whole.     

BANKING LICENCES, BAILOUTS AND REGULATOR ABILITY

I analyse a model in which it is socially optimal for banks to manage depositor funds but in which concerns about fraud discourage depositing and justify regulation. The regulator screens bankers and decides the level of charter value which they will receive as incentive to prevent fraud. She can also encourage deposits by insuring them. The optimal policy depends upon the regulator's screening ability: high ability regulators rely upon charter value and low ability regulators rely upon deposit insurance. I relate these findings to the regulation of transition economy banks, to operational risk management, and to banking competition policy.