The behaviour of expected short-term real interest rates in the UK

The existence of persistent technical inefficiency offers the opportunity for a ‘free lunch’ not typically implied by the neoclassical theory of the firm. When external effects are related to the use of particular inputs, reduction of persistent technically inefficient levels of input use represents a means of reducing external impacts. An important example is found in agriculture where substantial environmental impacts are generated by particular inputs. Within this context, this paper considers the usefulness of data envelopment analysis (DEA) for estimation of potential input reductions and assessment of potential reductions of environmental impacts of agricultural inputs. An application for French cereal production provides estimates that indicate that substantial potential exists for reduction of input use and environmental impacts.     

Economics of scale and scope in multiproduct firms: evidence from US railroads

Recently, there has been a surge of interest in analysing scale economies in US railroad firms. The analysis of scale economies in existing studies is, however, limited in view of recent advances in the theory of the multiproduct firm. In this paper, the previous work is extended to address the issue of scale and scope economies in multiproduct firms. The findings show that US railroads experience mild overall economies of scale, but rather marked product-specific economies of scale with respect to both freight and passenger services. However, there appear to be diseconomies of scope associated with the joint production of the two services. Based on these results, this study indicates that US railroad firms would have no tendency to behave as a natural monopoly in the absence of regulation.     

Tourism's contribution to the demand for London's lively arts

How much of the attendance at London's lively arts comes from tourism? This question steers the inquiry, which involves model that distinguishes resident demand from tourist demand. Data for the empirical work are time series on individual arts companies, and accordingly the estimation method allows for autocorrelation and heteroscedasticity. Estimation indicates that, consonant with time-allocation logic, tourist demand depends importantly upon income whereas resident demand does not. It is shown that tourists, whose arts participation rate averages only 8%, account for 65% of attendance and that the elasticity measuring the attendance response to tourism equals 0.645.

It must be concluded that if it were not for overseas visitors to London, it is doubtful whether West End theatres could remain open throughout the summer.

Society of West End Theatre (1982, pp. 6–7)     

An empirical investigation of interregional production relations and comparative advantage in US manufacturing, 1960–70

Hypothesized differences in mean changes in shares of European Community (EC) import markets over the period 1976-84 are tested for each of 36 less-developed countries. Means are calculated for cases in which MFN tariffs are re-established and for cases in which duty-free treatment is restored under the EC generalized system of preferences. They are compared with means for cases in which tariffs remained constant. We attempt to control for both product-specific and cyclical influences on imports. In contrast to some previous results, our findings suggest that denial (restoration) of preferential treatment, i.e. a tariff increase (decrease), has its expected negative (positive) effect.     

Growth: some combined cross- sectional and time series evidence from OECD countries

The uncovered interest rate parity hypothesis and three variants of the monetary approach to exchange rate determination are assessed under a vector autoregression representation of the available information variables, using monthly data on six major US dollar exchange rates over the period 1978–90. A large information set is used, and the time series properties of the information variables are taken into account. The cross-equation restrictions imposed on the estimated parameters are tested statistically and the economic significance of the models is evaluated independently on the basis of appropriate volatility tests. A weak test for exchange rate bubbles, based on a decomposition of market noise, is proposed.     

On the economics of regulated early closing hours: some evidence from Canada

In many countries such as Australia, Canada and Britain, the hours of daily retail operation are controlled through the political process. This paper tests one hypothesis for why regulation is adopted. The hypothesis is that early closing hours are a low cost institutional response to net social costs that can arise when time is used competitively to redistribute customers spatially. Competition produces this result when stores's marginal customers value longer shopping hours more highly than the average customer. Evidence is presented on the characteristics of 45 Ontario cities that had the choice of whether or not to adopt early closing hours and logit analysis is used to test the model's predictions. The estimates of the probability of choosing early closing hours are then used to test the model's prediction on store density. In general, the evidence is consistent with the hypothesis that municipal control over shopping hours in Ontario is appropriate.     

The economics of university computer provision: a case study in public production and cost

Is the provision of computer services in British universities provided efficiently? The pattern of expenditure in the last twenty years is explored and a study is made of current spending across universities. Variations in unit computing costs and the output of computing expreience is studied for British universities using conventional cost and production function estimation. In addition the three-demensional production surface for the output of computer provision is estimated using distance weighted techniques. This case study has more general applicability to other areas of public production and cost.     

Market structure and corporate charitable donations: some Canadian evidence for 1976 and 1981

The business of business, not charity.

Say eleemosynary its more confusing.

Whatever, as long as we don't given 'em any cash.

Harv Antione, ‘The Buzz Words of Entrepreneurship’

in Apocryphal Northern Tales

This paper investigates the general determinants of corporate charitable donations in Canada and, in particular, the impact of imperfectly-competitive market structure. We utilize a profit-maximizing model and assume that charitable donations occur only if, by performing an advertising/public relations function, they increase revenue; or if, by acting as a fringe benefit, they result in a reduction in wage costs. In this context, because only firms in imperfect markets generate the rents from which donations can be made, we anticipate a positive relationship between donations and a measure of imperfect competition (concentration). The data is a cross-section sample of 38, 3- and 4-digit SIC manufacturing industries pooled for 1976 and 1981. The major findings are that: the results are generally compatible with the predictions of the model; concentration is a significant determinant of donations although non-linear; the cost of giving (the tax rate) is appropriately positive; and there are significant negative relationships for measures of foreign ownership and wage rates.     

Household formation by the young in the United States

A model of household formation by the young is specified and estimated. It was found that the headship rate for the young in the United States depends on income, the cost of housing, the number of families receiving AFDC payments, the age at first marriage for females and for males, and the percentage of males enrolled in college. Household formation by the young is much more sensitive to changes in income and the price of housing than household formation by the entire adult population. The estimated results are used to examine the change in the headship rate from 1961 to 1979 and from 1979 to 1987.     

Testing economic theories of voter behaviour using micro-data

Three hypotheses often encountered in economic analyses of voter behaviour are tested using an extensive data set derived from six consecutive national election studies in the Netherlands in the period 1971–1986. These hypotheses are: (i) the party choice and turnout decisions are taken sequentially and independently by voters; (ii) social gorups play a central role in the decisionmaking processes in the political sphere; (iii) the effect of individual-level variables on party choice is stable over time. The results provide support for the first hypothesis and partial support for the second, where the specific categorization of individuals to be chosen is a matter that needs further investigation. The third hypothesis is rejected by the data: the relationship between the variables chosen and party choice proved to be unstable.