Editors' Introduction: The Effects of New Work Practices on Workers

The effects of employee involvement have been widely studied, including a special issue of this journal ( Ichniowski et al. 1996 ). This issue examines the effects of involvement and related programs on employees. This introduction examines several relevant theories and describes the methodological challenges. Of the many outcomes of interest ranging from employee satisfaction to health and safety, we focus our literature review on one: wages. The results of the studies we review vary widely, as do the programs those studies examine. Our reading is that many programs have no effect on wages, while on average, the effect is a small increase in wages after companies introduce new work systems with higher employee involvement.     

Mobility and its alternatives in a national R & D system

Abstract . A framework is presented for understanding the relationship between the mobility of researchers and the effectiveness of an R & D system. Alternative structural factors that can provide similar results are described. Data taken from a study of Israel illustrate the extent to which mobility and its alternatives are found in this country, which has a particularly effective national R & D system.     

Pricing Risk-Adjusted Deposit Insurance: An Option-Based Model

This paper presents a methodology for arriving at empirical estimates of deposit insurance premiums from market data by using isomorphic relationships between equity and a call option, and insurance and a put option. The data utilizes the market value of equity to solve for the asset value and its volatility. Market perceptions of FDIC bailout policies are explicitly modeled so as to eliminate the bias in inverted values of assets and their volatility. Sensitivity analyses are performed to show that rank orderings based on premiums are robust to changes in specification, thus facilitating allocation of aggregate premium across banks.     

Bridging the generation gap: Expert systems as part of large scale computer systems

Using expert system technology in industrial applications often involves the construction of programs of which the knowledge base is only a part and which have to be integrated into existing hardware and software environments. At Shell Research at Thornton it has been found that even within well explored areas such as fault diagnosis there is a need to incorporate non-expert tools within a knowledge system in order to perform tasks such as database management, screen handling and substantial numerical calculation. This is not always easy. A system to determine diesel engine condition from an analysis of the used oil has been developed using the SAGE package and subsequently redeveloped in Prolog to over-come such integration problems. An interesting side effect has been the discovery of the usefulness of Prolog in solving long standing problems concerning user access to complex relational databases.     

Unions and the Duration of Workers' Compensation Claims

This paper examines the effect of union status on workers' compensation claim duration in Canada. I find that unionized workers have shorter claims than nonunionized workers and that relatively little of this difference can be attributed to differences in worker or job characteristics. I interpret this as being consistent with a strong union effect that reduces union member's claim duration. Plausible explanations for this finding and directions for future research are also discussed.     

Stock market regulations and international financial integration: the case of Spain

International financial integration effects on the Spanish stock market are studied, both for the conditional mean and conditional variance. New institutional regulations in Spain are taken into account and their efficiency consequences are addressed. Results suggest an increasing international integration but nontrivial opportunities for financial diversification may still be relevant.     

Rainfall or price variability: what determines rangeland management decisions? A simulation-optimization approach to South African savannas

Savannas cover the greater part of Africa and Australia and almost half of South America and contribute to the livelihoods of more than 350 million people. With the intensification of land use during the second half of the 20th century, savannas have become increasingly degraded through bush encroachment as a consequence of increased grazing pressure. Research on rangeland dynamics, however, provides contradicting answers with regard to the causes and possible remedies of bush encroachment. In this article we present results from an application of a simulation-optimization model to the case of extensive rangeland management in South Africa. Our model differs from previous approaches in that it explicitly accounts for the influence of stochastic prices and rainfall on economically optimal management decisions. By showing the implications of neglecting price variation and stochasticity in rangeland models we provide new insights with regard to the determinants of bush encroachment and rangeland managers' economic return. We demonstrate that, in the case of South Africa, optimal rangeland management is likely to lead to bush encroachment that eventually makes livestock holding unprofitable. Yet, we identify the costs of fire management to be a limiting factor for managers to counteract bush encroachment and explore the impact of policy measures to reduce fire control costs on the ecological and economic sustainability of livestock holding.     

The land cost of agrarian sustainability. An assessment

Improving the sustainability of farms often incurs additional costs for farmers. These costs come from allocating land to the maintenance of the ecological processes (energy and material flows, natural population regulation) required for the agroecosystem to function. Since these costs are not recovered on the markets, farmers see a fall in profits, the financial viability of their farms is compromised, and they suffer the consequences of the environmental services they are providing. All this makes it essential to implement government policies designed to compensate farmers for their efforts. The issue of how to assess sustainability has generated widespread debate within ecological economics, specifically as to whether it is possible to place a monetary value on it and if so, how this should be done. In a previous article we showed that agrarian sustainability involves a land cost, therefore this cost can be translated into monetary values. The purpose of this study is to develop this concept in practical terms by applying it to organic farming. We calculated the land cost of agrarian sustainability (LACAS) in order to compare organic versus conventional management in olive farming, as this crop is grown extensively in Spain and other Mediterranean countries. The results show that the agro-environmental subsidy is not enough to encourage olive growers to make the conversion from conventional to organic methods, because the land cost of sustainability is not adequately offset. They also show that improving agroecosystems can allow the land to take on more functions without increasing the land cost. In our case, encouraging the multifunctionality of the land has permitted a reduction in this cost. The LACAS could be a useful tool, not only for drawing up government policies designed to support organic farming, but also for improving the sustainability of the agrarian sector.