Capitalization of local fiscal differentials: Inferences from a disequilibrium market model

This study analyzes tax capitalization within the framework of a disequilibrium market model. In particular, this study examines whether local fiscal differentials influence the rate of change in neighborhood house prices over time. Local fiscal differentials existing in 1970 are found to have no influence on the rate of change in neighborhood house prices over the period 1970–1972; therefore, the study concludes that, other things being equal, these local fiscal differentials have been completely capitalized in price levels.     

Phillips ‘loops’ in South Africa∗

Professor Phillips published his famous Phillips curve article in 1958. In his research, however, he observed that wages were rising more rapidly during the upswing of the business cycle, when unemployment was falling, than during the downturn, when unemployment was rising. When data on the respective variables was plotted, a distinct ‘loop’ was found. In the analysis of South African labour statistics, it was found that such a ‘loop’ existed in the White labour market. However, in the case of the Black labour market, only a weak image of a ‘loop’ was found. The real economic forces producing such a ‘loop’ were almost completely absent. This has implications not only for labour management and economic policy in general, but also for development strategies, because it implies that if Black labour had been left to market forces only, they would have been worse off than they are now.     

A Tale of Two Pizzas: Building Up from a Basic Product Versus Scaling Down from a Fully-Loaded Product

Consumers in the U.S. and Italy were asked to either build up from a consumable base product (pizza) by adding components or scale down from a fully-loaded product by subtracting components. In each country consumers ended up with significantly more ingredients, and a pizza for a higher cost, in the Scale Down Condition than in the Build Up Condition. Results are discussed in terms of the principle of loss aversion underlying phenomena such as the endowment effect, marketing implications of this effect, and future research needs.     

Does leaning against the wind improve exchange-rate performance?

This paper develops a model in which real disturbances cause the exchange rate to overshoot its new long-run equilibrium level because of speculative risk aversion combined with the well-known lagged effect of the exchange rate on trade flows. In this context, it is demonstrated that there exists an optimal degree of leaning against the wind, which stabilizes the exchange rate at the new equilibrium, but which requires the government to have accurate information about the exchange rate-trade flow lag. Without this information, leaning against the wind may increase the deviations of the exchange rate from its long-run level.     

Taxation within Cournot oligopoly

When the production of output causes pollution, we often consider taxation as a means to reduce it. This paper examines various forms of taxation to control pollution within Cournot oligopoly. It shows that two commonly used forms can actually increase pollution. In contrast, both of these forms unambiguously reduce pollution within the competitive model. The paper provides conditions, in terms of demand and technology, that make taxation effective in the Cournot oligopoly case. Another implication of the analysis is that, outside the price-taking framework, asymmetry of cost functions is particularly important and deserves careful attention when we examine the effect of taxation.     

Technology transfer as a learning and developmental process: an analysis of Norwegian programmes on technology transfer

This paper focuses on understanding technology transfer. The point of departure is to construct a model for transfer of technology based on organizational theory. The model identifies the transfer as a socio-technical learning and developmental process (TLD process). Technology is understood as a social construction where human choice and values determine the outcome. A successful transfer of new technology depends on a socio-technical change process, where the success is reached when the local company profitably integrates technology in its day-to-day operation.The TLD model is used as the basis for an empirical analysis of Norwegian programmes on technology transfer. This work is introduced by giving an overview of the literature evaluating the programmes. This literature, strongly influenced by qualitative methodology, does not give much insight into the basic elements of the TLD process. Therefore, the next step in the research is to investigate the models for the programmes in operation.The main conclusion is that no programme design is consciousiy based on understanding technology transfer as a socio-technical learning and developmental process. Firstly, technology is usually considered as a material artefact and not as a carrier of knowledge and cultural values. Secondiy, the traditional developmental model is bureaucratic and top-down. The intention is to furnish companies with technology and not to let the potential use of new technology be integrated into a planned learning and developmental process.The key point in this paper is to advocate that policymakers and managers of technology transfer programmes redesign their programmes to incorporate the important and necessary learning and developmental processes. If this is taken seriousiy, it will be possible to take full advantage of technology transfer as an important element in technology policy.     

Demographic characteristics of the population of Greater Soweto, 1993

"This research note provides information and findings on some aspects of urbanisation in Greater Soweto. It outlines the demographic characteristics of the population, namely the characteristics of households; household preferences for services; perceptions on accommodation; age and gender profiles; education levels; the origin of the inhabitants and mobility in and migration to Greater Soweto. Some findings are particularly important for future planning of services and low-income or subsidised housing."