Governance and control as mediating instruments in an inter-firm relationship: towards collaboration or transactions?

This paper explores the mediation of governance and control structures in an inter-firm relationship between a semiconductor producer and its contractor. As mediating instruments the contract and the control structures are not just pre-given results of distanced managerial decision-making, but are generated in and constitutive of the relationship. They offer the possibility to interpret and to interact and they contribute to more or less unexpected transformations in the relationship. In particular, the study explores how the mediation of the governance and control structures has socialising and/or individualising consequences. The paper particularly offers insights into how the mediation of the governance and control structures is impacted by changes in boundary spanners (i.e. managers who represent their organisations in an inter-firm relationship). The paper draws on Roberts 2001. Trust and control in Anglo-American systems of corporate governance: the individualizing and socializing effects of processes of accountability. Human Relations, 54 (12), 1547–1572. and distinguishes four patterns of governance that may be consequential of mediation by governance and control structures: immobilised governance, individualised governance, socialised governance and complementary governance. The study illustrates that accounting is not so much a force that creates transparency for distanced others, but a constitutive mechanism that produces a collaborative inter-firm relationship with socialised governance. It provides a basis for discussion and debate in the relationship.     

The Stability of Price Dispersion under Seller and Consumer Learning*

In many markets, it is possible to find rival sellers charging different prices for the same good. Earlier research has attempted to explain this phenomenon by demonstrating the existence of dispersed price equilibria when consumers must make use of costly search to discover prices. We ask whether such equilibria can be learned when sellers adjust prices adaptively in response to current market conditions. With consumer behavior fixed, convergence to a dispersed price equilibrium is possible in some cases. However, once consumer learning is introduced, the monopoly outcome first found by Diamond (Journal of Economic Theory3 (1971), 156–68) is the only stable equilibrium.     

The antecedents of union commitment and participation: evaluating moderation effects across unions

This article evaluates whether the nature of the union moderates the antecedents of union commitment and participation, based on a study of member attitudes in Voice, formerly the Professional Association of Teachers, and the National Unions of Teachers, often seen as the most ‘moderate’ and ‘militant’ teacher unions, respectively.     

Private demands for public capital: evidence from school bond referenda

This paper develops a framework for estimating demand for school infrastructure investment that is financed through local bond referenda. Our framework takes explicit account of the irregular and discrete nature of local capital investment and the objective functions of local school boards. Our empirical model consists of a three-equation system composed of a proposed spending equation, a vote equation, and a selection equation. Estimated income and price elasticities of demand for school infrastructure are similar to those found in studies of current school spending. We also find that school boards act like risk-averse, budget-maximizing agenda-setters.     

Soil management in relation to sustainable agriculture and ecosystem services

Requirements for research, practices and policies affecting soil management in relation to global food security are reviewed. Managing soil organic carbon (C) is central because soil organic matter influences numerous soil properties relevant to ecosystem functioning and crop growth. Even small changes in total C content can have disproportionately large impacts on key soil physical properties. Practices to encourage maintenance of soil C are important for ensuring sustainability of all soil functions. Soil is a major store of C within the biosphere – increases or decreases in this large stock can either mitigate or worsen climate change. Deforestation, conversion of grasslands to arable cropping and drainage of wetlands all cause emission of C; policies and international action to minimise these changes are urgently required. Sequestration of C in soil can contribute to climate change mitigation but the real impact of different options is often misunderstood. Some changes in management that are beneficial for soil C, increase emissions of nitrous oxide (a powerful greenhouse gas) thus cancelling the benefit. Research on soil physical processes and their interactions with roots can lead to improved and novel practices to improve crop access to water and nutrients. Increased understanding of root function has implications for selection and breeding of crops to maximise capture of water and nutrients. Roots are also a means of delivering natural plant-produced chemicals into soil with potentially beneficial impacts. These include biocontrol of soil-borne pests and diseases and inhibition of the nitrification process in soil (conversion of ammonium to nitrate) with possible benefits for improved nitrogen use efficiency and decreased nitrous oxide emission. The application of molecular methods to studies of soil organisms, and their interactions with roots, is providing new understanding of soil ecology and the basis for novel practical applications. Policy makers and those concerned with development of management approaches need to keep a watching brief on emerging possibilities from this fast-moving area of science. Nutrient management is a key challenge for global food production: there is an urgent need to increase nutrient availability to crops grown by smallholder farmers in developing countries. Many changes in practices including inter-cropping, inclusion of nitrogen-fixing crops, agroforestry and improved recycling have been clearly demonstrated to be beneficial: facilitating policies and practical strategies are needed to make these widely available, taking account of local economic and social conditions. In the longer term fertilizers will be essential for food security: policies and actions are needed to make these available and affordable to small farmers. In developed regions, and those developing rapidly such as China, strategies and policies to manage more precisely the necessarily large flows of nutrients in ways that minimise environmental damage are essential. A specific issue is to minimise emissions of nitrous oxide whilst ensuring sufficient nitrogen is available for adequate food production. Application of known strategies (through either regulation or education), technological developments, and continued research to improve understanding of basic processes will all play a part. Decreasing soil erosion is essential, both to maintain the soil resource and to minimise downstream damage such as sedimentation of rivers with adverse impacts on fisheries. Practical strategies are well known but often have financial implications for farmers. Examples of systems for paying one group of land users for ecosystem services affecting others exist in several parts of the world and serve as a model.     

The influence of tax and expenditure policies on economic growth in The Netherlands: An empirical analysis

Summary This paper explores the influence of government policies in explaining output, emploment and investment in The Netherlands during the period 1966–1989. The paper develops an empirical macroeconomic model estimated with annual data relating to the period 1958–1989. It finds that restrictive fiscal policies in the eighties have had adverse short-term effects on output and employment. Furthermore, the drop in the rate of increase in tax and social security contribution rates in this period has boosted output, employment and investment. However, the shift in public expenditure from investment to consumption has exerted a negative impact on these variables, largely offsetting the positive impact of the tax policies.At the moment of writing, Ed W.M.T. Westerhout was a staff member of the Directorate for Economic Policy, Ministry of Economic Affairs. Currently the is affiliated to the Central Planning Bureau, P.O. Box. 80510, 2508 GM The Hague.We thank Peter van Bergeijk, Lans Bovenberg, Rob Mulder, Pieter Waasdorp and two anonymous referees for uselfut suggestions and comments.     

The determinants of the demand for private health insurance under Medicare

Since the introduction of Medicare in 1984, the proportion of the Australian population with private health insurance has declined considerably. Insurance for health care consumption is compulsory for the public health sector but optional for the private health sector. In this paper, we explore a number of important issues in the demand for private health insurance in Australia. The socio-economic variables which influence demand are examined using a binary logit model. A number of simulations are performed to highlight the influence and relative importance of various characteristics such as age, income, health status and geographical location on demand. A number of important policy issues in the private health insurance market are highlighted. First, evidence is provided of adverse selection in the private health insurance pool, second, the notion of the wealthy uninsured is refuted, and finally it is confirmed that there are significant interstate differences in the demand for private health insurance.     

Are cultural values associated with organizational and union commitment and citizenship behavior? A study of Chinese manufacturing workers

This paper examines the association between individual-level cultural values and employees’ commitment to, and citizenship behaviors towards, their employing organization and union. Based on a study of Chinese manufacturing workers, several significant findings emerged, most notably that workers distinguished clearly between the organization and union as foci for commitment and that horizontal, but not vertical, collectivism was positively associated with union commitment and union citizenship behavior. Our results suggest the need to differentiate between horizontal and vertical collectivism when considering the effects of cultural values on attitudes towards unions and collective action.     

A Constructivist Learning Approach to Income Inequality, Poverty and the “American Dream”

In the constructivist approach to economic education, an understanding of economic reality is built on the student’s own economic experiences. The process results in active and engaged learning. This paper reports on in-class experiments aimed at developing a learning module focused on income inequality and poverty. How much income is required to maintain a modest, middle income, poverty line or “American Dream” living standard?     

Stamps versus postal permits: A decisional guide for return postage in mail questionnaires

Considerable evidence indicates that stamped return envelopes prompt higher rates of response than business reply permits. The authors use a measure of margin efficiency gains between return postage types to develop optimum cost guidelines to aid mail survey researchers in their choices between return mailer types.