Is the European Economy Turning the Corner?

The European economy looks bleak. Unemployment is hight. Growth over the recovery has been weak. And Germany – the powerhouse – is facing major economic difficulties. However, Jenni Greenslade and Andrew Sentance argue in this article that a turning point is in sight. Some of the depressing influences on recent European economic performance are fading. And there is plenty of capacity for growth without inflationary pressures emerging. It is time to show some cautious optimism about European economic prospects, though the problem of high unemployment is likely to take many years to erode.     

Oxford UP economics

Andrew Schuller, economics editor of the Oxford University Press, outlines his publishing plans for the coming year.     

Management, Politics and Non-Departmental Public Bodies

This article addresses the 'quango' problem facing an incoming government. It explores the difficulties for embarking on policy innovation faced by modern British governments, and then looks at the problems of defining and charting Non-Departmental Public Bodies (NDPBs), before analysing the effects of managerial and structural reform and the issue of politicization. Finally, the article discusses the benefits that an incoming government will reap from many of the reforms of the last decade.     

Volatility transmission along the money market yield curve

Volatility Transmission along the Money Market Yield Curve. - The authors model the volatility of money market interest rates — and the transmission of volatility - along the money market yield curve in the UK, Germany, France and Spain. They find a significant volatility transmission from overnight to longer-term money market rates in France, Spain and the U.K. They also find that the countries with lower (higher) reserve requirements tend to have higher (lower) interbank interest rate volatility. However, reserve requirements generate a perverse seasonal effect at the end of the maintenance period.     

The Role of Infrastructure in Mexican Economic Reform

This article estimates the relationship between the provisionof public infrastructure and private output in sixteen sectorsin Mexico. The sector-specific cost functions depend on wages,the cost of capital, and the nominal values of the stocks ofthree types of infrastructure: electricity, transport, and communications.The article concludes that infrastructure in electricity andcommunications generally reduces the cost of sectoral production,but transportation infrastructure tends to increase costs ofsectoral production. It appears that Mexican public expenditureon electricity and communications has enhanced the productivityof private production, but expenditure on transport may actuallyhave had a detrimental effect on private output. In addition,although in general labor and infrastructure are substitutes,in the case of electricity and communications infrastructure,capital and infrastructure are complements. In the case of transportinfrastructure these conclusions are reversed.     

Searching for uncertain benefits and the conservation of biological diversity

This paper describes a model under which the maximization of option value leads to a preference for biological diversity arising from potential substitutability among species.     

Reviews

Regenerating town centres. Evans, R. 1997: REGENERATING TOWN CENTRES. Manchester: Manchester University Press, £30.00 cased.

Privatised utilities. Marvin, S., Graham, S. and Guy, S. 1996: PRIVATISED UTILITIES AND REGIONAL MANAGEMENT. Harlow: SEEDS (South East Economic Development Strategy), £25.00 plus £3.50 postage and packing.

Women returners. Chisholm, L. (ed) 1997: GETTING IN, CLIMBING UP AND BREAKING THROUGH. London: The Policy Press, £15.25 paper.

Regionalism. John, P. and Whitehead, A. (eds) 1997: POLICY AND POLITICS VOL 25 NO. 1 SPECIAL ISSUE. REGIONALISM IN ENGLAND: CURRENT TRENDS AND FUTURE PROSPECTS. Policy Press.

Socially regulated labour markets. Peck, J. 1996: WORK-PLACE. THE SOCIAL REGULATION OF LABOUR MARKETS. New York and London: The Guilford Press, £16.99 paper £35.00 cased.

Private delivery — public goods. Arnold-Forster, J., Lee, M. and McLeod, J. 1997: HAND IN GLOVE: PRIVATE SECTOR DELIVERING PUBLIC GOODS. London: Fabian Society, supported by Generale des Eaux, £15.00 paper.

Bio-tech. Milhell, D., Kingham, D. and Stott, M. 1997: THE DEVELOPMENT OF THE BIOTECHNOLOGY SECTOR IN OXFORDSHIRE: IMPLICATIONS FOR PUBLIC POLICY. Oxford: Oxford Innovation Limited, £5.00 paper.     

can europe compete post-1992?

Can Europe compete? Andrew Sentance of the CBI suggests the EC may be ill-placed to compete in international markets following the 1992 process; completion of the internal market is no guarantee of a strong recovery.