Global and world cities: a view from off the map

Attention to global and world cities has directed the field of urban studies to the significance of international and transnational processes in shaping city economies. This article evaluates these approaches, from a position off their maps. I argue that the circulation of these approaches in academic and policy realms adversely impacts on cities which do not fall into these categories by setting up the idea of the global city as a ‘regulating fiction’, a standard towards which they aspire. It establishes a small sector of the global economy as most desirable in planning the future of cities. By contrast, mega–cities function as the dramatic ‘other’ of world and global cities, and highlight the developmentalist discourse through which most cities in poor countries are assessed as fundamentally lacking in qualities of city–ness. I argue that the long–standing categories of western/third–world cities have been translated into the apparently transnational accounts of global and world cities. Western cities continue to be the primary site of production of apparently unlocated urban theory; so–called third–world cities (and other cities off the map of the world cities cartography) are interpreted through a developmentalist lens and, where they are referred to at all, are framed in terms of ‘difference’ or irrelevance. This article draws attention to the emergence of an alternative set of theoretical approaches, which are more inclusive in their geographical reach and which are concerned with the diverse dynamics of ordinary cities. These approaches have not yet realized that they have the potential to broaden the base for theorizing about cities and, with this in mind, the article explores the potential for a more cosmopolitan urban theory. The policy stakes in this are high, and the article notes that there are important political reasons to promote the analysis of ordinary cities in the face of the persistence of ambitions in many cities to become ‘world cities‘. L’attention accordée aux villes planétaires et mondiales a orienté le champ des études urbaines vers l’importance des processus internationaux et transnationaux dans la configuration économique des villes. Partant d’un point situé hors de leur cartographie, l’article évalue ces approches. La circulation de celles–ci dans les sphères politiques et intellectuelles a une incidence néfaste sur les villes qui n’appartiennent pas à ces catégories, car elle instaure l’idée d’une ville planétaire en tant que ‘fiction régulatrice’, norme à laquelle aspirent les villes. Un secteur restreint de l’économie mondiale est ainsi établi comme le plus recherché dans la planification urbaine. Par contraste, les megacities fonctionnent comme l’impressionnant ‘autre’ des villes mondiales et planétaires, valorisant le discours développementaliste selon lequel l’évaluation des villes des pays pauvres indique le plus souvent des lacunes fondamentales dans les qualités propres à une ville. Les anciennes catégories de villes (Occident/tiers–monde) ont été converties en justifications apparemment transnationales des villes planétaires et mondiales. Les villes occidentales restent le site de production principal d’une théorie urbaine manifestement non–localisée; les villes dites du tiers monde (et autres villes ignorées de la cartographie des villes mondiales) sont interprétées à travers une optique développementaliste et, si on en parle, sont dépeintes en termes de ‘différence‘ ou d’inadéquation. Cet article souligne l’émergence d’un autre ensemble d’approches théoriques, plus inclusives dans leur géographie et soucieuses des diverses dynamiques des villes ordinaires. Sachant que ces démarches ne sont pas encore conscientes de pouvoir étendre la base théorique sur les villes, l’article explore la possibilité d’une théorie urbaine plus cosmopolite. Les enjeux stratégiques sont sérieux et il existe des raisons politiques importantes d’encourager l’analyse des villes ordinaires face aux ambitions persistantes dans de nombreuses villes de devenir les ‘villes mondiales’.     

Markets,torts, and social inefficiency

We provide a model wherein oligopolists produce differentiated products that also have a safety attribute. Consumption of these products may lead to harm (to consumers and/or third parties), lawsuits, and compensation, either via settlement or trial. Firm‐level costs reflect both safety investment and production activities, as well as liability‐related costs. Compensation is incomplete, both because of inefficiencies in the bargaining process and (possibly) because of statutorily established limits on awards. We compare the market equilibrium safety effort and output levels to what a planner who is able to set safety standards, but takes the market equilibrium output as given, would choose.     

Block Share Purchases and Corporate Performance

This paper investigates the causes and consequences of activist block share purchases in the 1980s. We find that activist investors were most likely to purchase large blocks of shares in highly diversified firms with poor profitability. Activists were not less likely to purchase blocks in firms with shark repellents and employee stock ownership plans. Activist block purchases were followed by increases in asset divestitures, decreases in mergers and acquisitions, and abnormal share price appreciation. Industry-adjusted operating profitability also rose. This evidence supports the view that the market for partial corporate control plays an important role in limiting agency costs in U.S. corporations.     

Communicating quality: a unified model of disclosure and signalling

Firms communicate product quality to consumers through a variety of channels. Economic models of such communication take two alternative forms when quality is exogenous: (i) disclosure of quality through a credible direct claim; or (ii) signalling of quality via producer actions that influence buyers' beliefs about quality. In general, these two literatures have ignored one another. We argue that firms should be viewed as choosing which means of communication they will employ. We show that integration of these two alternatives leads to new implications about disclosure, signalling, firm preferences over type, and the social efficiency of the channel of communication employed.     

Conceptualizing Professionalism

A bstract The main argument presented here is that economics provides a necessary but not sufficient analysis of professionalism. A sufficient analysis can only be generated by recognizing the sociological significance of professionals, and in particular the institutionalization of a professional ethic. In this way we suggest that economics needs sociology to provide an effective conceptualization of professionalism as a form of organization and as a mode of behavior. Equally, however, sociology needs economics, because while the sociological context provides an explanation of the way power is institutionalized, an economic focus is necessary to maintain a role for individual agency. These arguments are illustrated with a discussion of the historical and institutional complexities of professional organization; we look particularly at nursing and certain routinized areas of legal work and accountancy.     

Changes in Indirect Taxes in Australia: A Dynamic General Equilibrium Analysis

Over the last thirty years, the effects of indirect taxation changes have been analysed using comparative static general equilibrium models. We use a new method to analyse current changes in Australia's indirect taxes: dynamic computable general equilibrium modelling. Comparative static methods compare the situation in a given year (usually unspecified) with and without a policy change. The dynamic method shows the effects of a policy change through time. Comparative static methods are usually restricted to estimates of long-run changes in allocative efficiency. The dynamic method provides information not only on efficiency but also on adjustment processes, including variations in employment. With our dynamic method, the effects of policy changes are analysed as deviations from explicit forecasts. We find that these forecasts are important for the policy results. For Australia's current set of indirect tax changes, our main conclusions are (i) the short-run employment effects depend critically on the wage response; (ii) merchandise exporters benefit but tourism is harmed; and (iii) the long-run welfare effectsare likely to be negative, reflecting a decline in the terms of trade and increased compliance costs.