Pricing rules in a mixed economy: an expanded example

Conclusion The purposes of this paper are two-fold. First, to establish the conditions under which piecemeal welfare policy is still useful. Second, to demonstate a method which can be used to remove the outstanding problem that arises in attempts to apply the General Theory of the Second Best. In both cases, policy-makers can turn to the real-world data on prices, quantities, and incomes.The authors demonstrate how the data can be related back to the form of the utility function. If the underlying utility function is found to have a certain property (in particular, if it is additive), then piecemeal welfare policy is appropriate, and definitive pricing rules for nationalized industries are established. Policy-makers are shown how economic theory and data can be combined to resolve puzzling problems. The general principles developed in this paper can be applied to a wide range of other policy problems.     

Fetal protection policies: A threat to employee rights?

Corporations utilizing toxic substances in the workplace are faced with the possibility that the use of those substances will cause reproductive damage in their employees. In the face of complex and confusing government regulation on the issue and scientific uncertainty about the effects of many substaces, several major corporations have sought to minimize legal liability for any potential reproductive damage by excluding the fertile female worker from the workplace, Yet, by adopting such fetal protection policies, corporations have opened themselves up to a host of new problems and threatened the rights of workers.     

The Impact of Union Membership on Intent to Leave: Additional Evidence on the Voice Face of Unions

The impact of union membership on employees' intent to leave their jobs was examined to testthe effect of unions' “voice” face. Regression analyses showed a significant, negative relationship between union membership and employees' intent to leave. In addition, the data revealed significant interactions between union membership and job satisfaction and between union membership and organizational commitment. Dissatisfied nonunion members are much more likely to intend to leave their jobs than are union members. Similarly, nonunion members with low organizational commitment are much more likely to intend to leave their jobs than are union members. Bothof these results support the conclusion that union membership reduces employees' intention toleave their jobs, and provides evidence that the voice face of unions matter. An earlier version of this research was presented at the 2004 Association on Employee Practices and Principles Conference, Ft. Lauderdale, Florida.     

Different Paths to Neo-Liberalism? Comparing Australia and New Zealand

Australia and New Zealand are best known for their systems of industrial relations based on compulsory arbitration. However, recent years have seen trends in both countries toward neo-liberalism—trends that represent the end of compulsory arbitration. This paper traces the path taken toward neo-liberalism, the speed of the journey, and the destination reached in both countries. In attempting to explain the differences between them, it is institutional factors—industrial and political—that are given highest priority.     

Product returns on the Internet: A case of mixed signals?

In two studies, we investigate the interrelationship between return policy leniency and retailer quality. In the first study, we content analyze the return policies of e-tailers randomly selected from those listed at BizRate.com. Then we relate the return policy characteristics to these quality ratings. Consistent with signaling theory, we find that as the ratings of e-tailer quality increase, return policy leniency increases in non-consumable product categories. However, the positive quality/return policy leniency relationship does not hold in consumable product categories. In a follow-up experiment, we investigate how consumers interpret the return policy signal. Specifically, we find that consumers' ability to control their shopping experience and their general trust of e-tailers moderate their reactions to return policies that differ in leniency. Finally, we discuss the theoretical and managerial implications of this research.     

Human resource strategies,workplace reform and industrial restructuring in Australia and New Zealand

In recent years, Australia and New Zealand have pursued two different routes of labour market reform. New Zealand opted for a radical experiment in the deregulation of industrial relations and other areas. Australia pursued a co-operative and co-ordinated approach to reform within the centralized arbitral system. Both reform initiatives were designed to stimulate improvements in organizational performance and cost competitiveness. In this paper, we argue that there are three main types of strategies that management can use to reduce labour cost and improve performance: productivity-enhancement, costminimization and work-intensification strategies. We argue that the former is a long-term sustainable strategy whereas the latter two are negative short-term strategies that may have deleterious longer-term effects. This paper reports the results of a cross-national survey in New Zealand and Australia into the extent of adoption of these management strategies. The results are presented by industry, employment size, mode of operation and countries as a whole. The research findings indicate that New Zealand's decentralization has encouraged a higher degree of employer experimentation with both positive and negative workplace change strategies, especially in the private sector. Australia's more centralized system limited the use of cost-minimization strategies but not productivity-enhancing strategies in the public and not-for-profit sector. The research found evidence of work intensification in both countries.     

Money, banking, and monetary policy

An important function of banks is to issue liabilities, like demand deposits, that are relatively safe and liquid. We introduce a risk of theft and a safe-keeping role for banks into modern monetary theory. This provides a general equilibrium framework for analyzing banking in historical and contemporary contexts. The model can generate the concurrent circulation of cash and bank liabilities as media of exchange, or inside and outside money. It also yields novel policy implications. For example, negative nominal interest rates are feasible, and for some parameters optimal; for other parameters, strictly positive nominal rates are optimal.