Should all Choices Count? Using the Cut-Offs Approach to Edit Responses in a Choice Experiment

Should we give equal weight to all responses in a choice experiment? Previous Choice Modelling papers have considered the issue of the internal consistency of choices—such as the extent to which strictly-dominated options are chosen. In this paper, a different focus is employed, namely the extent to which people choose options which violate their stated upper or lower limits for the acceptable levels for individual attributes. Since hypothetical over-statement of WTP has been a focus in stated preference studies, we concentrate on violations of stated upper limits of WTP, and explore the effects of “editing” such choices using a variable censoring rule and alternative approaches to re-classifying choices. The empirical case study is a choice experiment on eco-tourists in Rwanda. Our main conclusion is that the suggested approach offers a useful way of imposing consistency on choices, and that editing choices in this manner has an appreciable impact on estimated willingness to pay. However, issues remain with regard to explaining why people apparently violate their stated maximum willingness to pay.     

Private equity, ‘union recognition’ and value extraction at the Automobile Association: The GMB as an emergency service?

This article evaluates union recognition and ‘value extraction’ in a private equity buy‐out. The article reviews private equity, investor value and ownership interests, details union recognition at the Automobile Association (AA) before and after its acquisition by private equity, and reviews the GMB's wider campaign of opposition to private equity ownership.     

International Competition for Multinational Investment

We examine the economic justification for providing investment subsidies to foreign-owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering subsidies to multinationals may be in the national interest if the investment raises the net value of domestic production. When agglomerative forces are sufficiently strong, a subsidy that attracts the first foreign firm may induce several to enter, establishing a thriving modern sector. With a limited number of foreign enterprises, countries may compete to attract investment. This subsidy competition transfers much of the rents to the multinationals.
JEL classification: F 12; F 23     

Global GDP shares in the 21st century — An equilibrium approach

Using a 9-region model of the world economy, we investigate the implications of the diffusion of total factor productivity (TFP) for global GDP shares during the 21st century. The nine regions are: Africa, Asia (excluding China, India and Japan), China, Europe, India, Japan, Latin America, North America and Oceania. According to our projections, TFP catch-up at a plausible rate implies that the share of the high-income regions will more than halve by 2050 and almost halve again in the subsequent 50 years. These projected shares are little affected by variations in demographic outcomes, saving behaviour and international capital flows, but are reduced substantially should TFP catch-up be slower.     

‘Thinking Outside the Box’? Trade Union Organizing Strategies and Polish Migrant Workers in the United Kingdom

This article focuses on the responses of British trade unions to the arrival of Polish workers since the 2004 enlargement of the European Union. It is argued that existing definitions and explanations of UK trade union engagement with migrant workers do not capture the strategies that have been used to engage with these migrant workers. We suggest that there have been two sets of responses. First, recruitment and organization activity has centred on inclusion and has been undertaken on new terrains using innovative strategies. Second, we point to the importance of new linkages locally, regionally, nationally and internationally in organizing these new labour market entrants.     

Racial Harassment,Ethnic Concentration,and Economic Conditions*

In this paper, we analyse the association between the spatial concentration of ethnic minorities and racial harassment. Ethnic concentration relates to racial harassment through at least three channels: hostility in the attitudes of majority individuals that finds expression in harassment behaviour, the probability that minority individuals meet majority individuals, and the cost of expressing hostility aggressively. Thus, harassment cannot simply be modelled as a stronger form of hostility. Using unique data for Britain, we show that, in areas of higher local ethnic concentration, experience of harassment is lower, even though hostility on the side of the majority population is not.     

Tradable permit allocations and sequential choice

This paper investigates initial allocation choices in an international tradable pollution permit market. For two sovereign governments, we compare allocation choices that are either simultaneously or sequentially announced. We show sequential allocation announcements result in higher (lower) aggregate emissions when announcements are strategic substitutes (complements). Whether allocation announcements are strategic substitutes or complements depends on the relationship between the follower’s damage function and governments’ abatement costs. When the marginal damage function is relatively steep (flat), allocation announcements are strategic substitutes (complements). For quadratic abatement costs and damages, sequential announcements provide a higher level of aggregate emissions.