A simple method of estimating price elasticities in international trade

The differential production theory approach is applied to world trade matrices of 1971 and 1975, which yields a price elasticity estimate of the demand for foreign food of about ?0.7. The elasticity estimates for raw material and manufactures are both between ?0.3 and ?0.4.     

A META‐ANALYSIS ON THE RELATIONSHIP BETWEEN INCOME INEQUALITY AND ECONOMIC GROWTH

In recent years there is a growing interest in determining the impact of inequality on economic growth. Theoretical papers as well as empirical applications have, however, produced controversial results. Although there is a considerable part of the literature that considers inequality detrimental to growth, more recent studies have challenged this result and found a positive effect of inequality on growth. In this paper, we provide a contribution to the empirical puzzle by using meta‐analysis to systematically describe, identify and analyse the variation in outcomes of empirical studies. We find that estimation methods, data quality and sample coverage systematically affect the results. The results point out that it will be particularly useful to increasingly focus research on determining the impact of income inequality on economic growth using single‐country data at the regional level, or a relatively homogeneous set of countries with adequate controls for country‐wide differences in economic, social and institutional characteristics.     

Discounting Indices Proposed for Capital Investment Evaluation: A Further Examination

A recent publication [2 Bernhard , Richard H. , “ A Comprehensive Comparison and Critique of Discounting Indices Proposed for Capital Investment Evaluation ,” The Engineering Economist , Volume 16 , Number 3 , Spring 1971 .[Taylor &; Francis Online] , [Google Scholar]] in this journal presented a comprehensive comparison and critique of discounting indices proposed for (i) the examination of whether a proposed independent project should be accepted and (ii) selection of a project from a set of mutually exclusive projects. The present paper examines procedures available in the literature of engineering and managerial economics and in practice for selecting projects from a given number of proposed capital investment projects, if a given capital constraint does not permit the undertaking of all proposed projects. It appears that the present state of the art is subject to much controversy and confusion. The ensuing presentation intends to rectify this situation. In addition, a procedure for the above selection problem is developed. Usage of this procedure is recommended for the many policy makers who are continually faced with the trade-off between elaborate methods on the one hand and cursory /approximations on the other.     

Bootstrapping for standard errors of instrumental variable estimates

Theil and Finke (1983) used the distance from the equator as an instrumental variable (IV) in the estimation of a cross-country demand system. Here we obtain standard errors of the IV estimates using Efron's (1979) bootstrap technique.     

La dimension internationale des politiques urbaines dans le Tiers Monde

Urban policics in dweloping countries are subject to both internal and external determinants. As elsrwhere, internal determinants, social relations and conflicts evolve over urbun space. external determinants are not only related to the general mechanisms of dependency, but also to specific modes of intervention by European and North American countries: such as consultancy firms producing urban studies and plans, lateral cooperative organisms, international institutions, suppliers of key materials for urbanization (cars. buses, pipes), training centres for planners and other technicians, etc. All urban policies in the Third World have this international dimension. It has been said that urban sociology has become the sociology of urban policies. In this case, urban sociology of the Third World has become that of the sociology of urban po1icies in their international dimensions, and it can only be done by examining each end of the chain, each side of the system of relations. Neither side can be studied without the. other in understanding and analysing the phenomenon which links them. The urban sociology of the Third World could provide the opportunity to reconsider from new points or departure, the relations between European or North American roeiologists on the anc hand, and Latin American or African sociologists on the other.     

Virtual research universes and research management

The analysis of large research production, such as universities, towns, cities or even countries, can be performed in several ways. These various approaches can range from the experts' feeling to a more precise analysis of co-authors' productivity. The various results obtained introduce the concept of 'virtual research universes' where the global perception of the production hides the sharp reality of objectives and subjects. The ability to apply the various methodologies and tools to make such analysis can reduce misunderstanding and misleading positions, especially in funding, planning and project evaluation. This paper takes as an example the production of physics laboratories in Marseille (from the INSPEC databae), and shows how the various levels of analysis can move from virtual to real research universes, thus helping the experts in their decision process.     

Another look at the maximum entropy correlation coefficient

A simulation experiment based on 10,000 trials shows that the Fisher transform of the maximum entropy correlation coefficient has a smaller bias than that of the sample correlation coefficient when the parent correlation ρ satisfies |ρ|?0.8, and a smaller root-mean-square error when |ρ|?0.95.     

BIASED TECHNOLOGICAL SHOCKS, RELATIVE WAGE RIGIDITIES AND LOW-SKILLED UNEMPLOYMENT

The contrast between the evolution over the last decades of the European Union (EU) and the US unemployment rates, especially for the low-skilled, is well known. A consensus view is that these different outcomes can be explained by the interactions between common shocks and specific institutional setups. In this paper, we emphasize the interactions between technological changes and wages rigidities. We construct a fully calibrated general equilibrium model with two types of jobs and two types of workers, and with search unemployment. Our simulations show that with wage rigidities, technological changes suffice to generate a continuous rise in the low-skilled unemployment rate and an almost unchanged high-skilled unemployment rate. Without wage rigidities, the unemployment rates remain unchanged but the wage dispersion widens.