LOUD AND CLEAR? CAN WE HEAR WHEN THE SARB SPEAKS?

Inflation targeting is a forward‐looking framework for monetary policy that has brought unprecedented transparency to the process of monetary policy. This paper aims to assess the degree to which the South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) has, since the introduction of inflation targeting, successfully communicated to the public its policy analysis, and, in particular, the expected future policy changes. It follows international literature in constructing a numerical index that is used to reflect the information content of the SARB's communications, specifically the monetary policy statements that accompanied each of the MPC meetings since 2000. This method allows us to judge, systematically, the degree to which the MPC has communicated successfully, and the evolution of that success over the past nine years. We find evidence that the MPC has succeeded in signalling their likely future policy decision with consistency over this period.     

COINTEGRATION AND DYNAMIC TIME SERIES MODELS

ABSTRACT. This paper provides a survey of some of the recent developments in the field of econometric modelling with cointegrated time series. In particular, we describe the testing and estimation procedures which have become increasingly popular in the recent applied literature. In addition to the 'two-stage' procedure proposed by Engle and Granger, we consider extensions to the modelling of dynamic models with cointegrated variables, such as the estimation of models with multiple cointegration vectors, simultaneous systems, models with seasonally integrated and cointegrated variables. Furthermore, we illustrate the practical application of the techniques describes in the paper by means of a tutorial data set.     

Managerial and firm influences on export behavior

Export researchers have generally interpreted small enterprise export behavior as either being exclusively dependent on firm factors or specific characteristics of decision-makers. These approaches are inadequate for explaining what is obvious managerial activity resulting from strategic choices among alternate foreign market expansion paths for the firm. This study empirically examines the interaction of decision maker and firm factors on intended export behaviors among eighty-nine Canadian manufacturing firms and finds that they explain a significant and substantive part of the variance in export entry behavior, but have limited success in accounting for variances in export performance. The author acknowledges assistance from the American Marketing Association doctoral dissertation grant (1979) and the Canadian Federation of Independent Business Fellowship Award (1979) for funding the study from which this data was drawn.     

Equilibrium with investors using a diversity of deviation measures

It has been argued that investors who optimize their portfolios with attention paid only to mean and standard deviation will all end up choosing some multiple of a certain master fund portfolio. Justification for the capital asset pricing model of classical portfolio theory, which relates individual assets to such a master fund, has come from this direction in particular. Attempts have been made to provide solid mathematical support by showing that the imputed behavior of investors is a consequence of price equilibrium in a market in which assets are traded subject to budget constraints, and optimization is carried out with respect to utility functions that depend only on mean and standard deviation.     

Uber Drivers and Employment Status in the Gig Economy: Should Corporate Social Responsibility Tip the Scales?

As the gig economy continues to grow, the legal status of its workers remains a source of confusion and controversy. Uber and other transportation network companies (TNCs) typically disclaim employee status, depriving drivers of social insurance among other benefits. Further, such companies typically deny liability to third party victims for damages due to auto accidents, sexual assaults, and other negative outcomes arising out of their business. Legal and regulatory systems in the U.S. and elsewhere continue to struggle with how to determine and apply a consistent standard as to employee classification. We argue that corporate social responsibility should figure prominently in the equation. Private companies already are required to cover social costs of doing business in a variety of contexts (e.g., workers compensation, family leave, public and workplace accommodations for disabled individuals), and it makes sense that they also should be required to underwrite other important implications associated with employee status as part of their responsibilities to society. This is especially so where, as with Uber and other TNCs, a company’s core profit-making operations include activities that carry the direct potential for causing substantial harm both to individual clients and to the public at large.     

Measuring Attitudes Towards Inequality

Individuals' attitudes to inequality aversion are measured using survey data, based on the leaky-bucket experiment, for several groups of students in Australia and Israel. Three forms of social welfare function are estimated. It is found that measures of inequality aversion can be obtained with some precision and that these estimates are substantially lower than the values typically used by those measuring inequality and examining optimal tax structures. Furthermore, a welfare function based on the Gini inequality measure is generally found to give a better fit than forms based on constant relative or constant absolute inequality aversion.
JEL Classification : C 91; D 63