Government Employment and Wages and Labour Market Performance

Government wage, benefit, and employment decisions are not taken on a profit-maximizing basis, and have a substantial impact on aggregate labour market performance and unemployment. In a two-sector labour market model with free mobility of labour, an increase in government wages or benefits reduces private sector employment, and government employment is not an effective counter-cyclical instrument. Empirical tests for Greece confirm that the expansion of the public sector in the 1980s contributed to the deterioration of labour market performance.     

Two-Stage Determinants of the Organic Food Retailing Landscape: The Case of Manhattan,New York

Retail sales of organic food products have been increasing faster than any other category of food and have penetrated mainstream retail grocery outlets. The majority of the literature on organic markets explores the socioeconomic characteristics of consumers, linking these traits to the probability of buying organic food, and it suggests that access to organic food is an important but overlooked factor in such studies. More recently, research focusing on food retailer marketing strategies for organic food finds that traditional strategies such as price promotions are largely unsuccessful with increasing sales for the organic food consumer. This article focuses on the retailer decision to offer organic food for sale. We model the decision as a two-stage process, where the retailer’s first decision is whether to sell organic food, and the second decision determines how many different organic products to offer for sale. In doing so, by using data collected in stores, we assess the organic food retail landscape in Manhattan, NY. We find that the decision to offer organic food for sale depends on the neighborhood socioeconomic characteristics, and the amount of organic food offered for sale depends on the size of the store.     

Short or long-term contract? Firm’s optimal choice

This article studies the behaviour of a firm searching to fill a vacancy. The main assumption is that the firm can offer two different kinds of contracts to the workers, either a short-term contract or a long-term one. The short-term contract acts as a probationary stage in which the firm can learn about the worker. After this stage, the firm can propose a long-term contract to the worker or it can decide to look for another worker. We show that, if the short-term wage is fixed endogenously, it can be optimal for firms to start a working relationship with a short-term contract, but that this policy decreases unemployment and welfare. On the contrary, if the wage is fixed exogenously, this policy could be optimal also from a welfare point of view.     

Stabilization and Association Agreements (SAAs), Europe Agreements,and Public Procurement

This paper initially presents Stabilization and Association Agreements (SAAs) provisions in terms of trade openness to the EC competition. It also makes reference to Europe Agreements (EUs) provision in this matter. It aims more precisely at specifying the impact of public procurement provisions of those Agreements to five Western Balkan public procurement markets. Combining the extent of “Buy National” policies within these countries, with information on the current international competitiveness, the paper identifies those industries that are likely to be particularly sensitive to the abolition of “Buy National” practices due to the provisions of the SAAs. These results can help national authorities overcome part of the negative impacts due to the EU competition.     

Inflation Transmission in Greater China

This paper examines inflation dynamics in Greater China. Using an asymmetric error correction model, we investigate how inflation in Hong Kong and Macao are related to inflation in Chinese Mainland. Our results based on data from July 1997 to December 2012 reveal that a long‐term equilibrium relation exists between inflation in Chinese Mainland and inflation in both Hong Kong and Macao, the two Special Administrative Regions of China. The degree of inflation pass‐through is higher for Macao than for Hong Kong. Moreover, we find no evidence of asymmetries in either Hong Kong and Macao's adjustment speeds towards long‐run equilibrium or in the short‐run pass‐through of accelerating or decelerating inflation in the Mainland. Collectively, our results show a close relationship among price dynamics of the three economies and call for a reconsideration of the exchange rate anchor in the Greater China Region.     

Taxes, Transfers, and Voter Behavior in U.S. Midterm Elections

The effects of changes in per capita real GDP, real taxes and real government transfer payments on midterm congressional election outcomes during the 1946–2002 period are examined. Voters are found to take all of these, except taxes and transfers at the state and local government levels, into account in casting their ballots. However, the weights they place on each are found not to be the same. Consequently, the common practice of summarizing the economic conditions faced by voters through disposable income seems to be inappropriate. Also, omission of tax and transfer variables from the vote equation, and using vote swing rather than vote share as the dependent variable is found to result in underestimation of the coefficient of per capita GDP growth.     

Tracking Progress Towards Statistical Capacity Building Efforts: The African Statistical Development Index

This paper presents the development of the African Statistical Development Index, a composite index that aims at supporting the monitoring and evaluation of the implementation of the Reference Regional Strategic Framework for Statistical Capacity Building in Africa. It also helps to identify, for each African country, weaknesses and strengths of the National Statistical Systems so that support interventions can be developed. The paper first gives the rationale behind the development of the index as well as the context. It then elaborates on the methodology used to develop the index, including the selection of components and variables, the scaling of the variables, the weighting and aggregation schemes, and the validation process. The methodology is applied to a sample of African countries. Finally, the paper compares the proposed index to existing statistical capacity building indicators and highlights the related limitations.