Optimal fiscal policy in the Uzawa-Lucas model with externalities

Summary. This paper devises a fiscal policy by means of which the first-best optimum equilibrium is attained as a market equilibrium in the Uzawa-Lucas model when average human capital has an external effect on productivity. The optimal policy requires the use of a subsidy to investment in human capital which can be financed by a tax on labor income. Lump-sum taxation is not required to balance the government budget either in the steady state or in the transitional phase. Physical capital income should not be taxed. Alternatively, the optimal growth path can be attained by means of a subsidy to human capital. Received: March 21, 2002; revised version: September 4, 2002 RID="*" ID="*" Financial support from the Spanish Ministry of Science and Technology through PNICDYIT grant SEC2002-03663 is gratefully acknowledged.     

Measuring the financial sustainability and its influential factors in local governments

The economic crisis has led international organizations and previous research to point out the need for measuring and controlling financial sustainability in governments. Based on the main international pronouncements, this article seeks to contribute to the measurement and management of the financial sustainability, analysing the income statement evolution and identifying its influential factors. An empirical study of Spanish municipalities is then undertaken to test the relationship between the measure of the financial sustainability and three dimensions proposed by International Federation of Accountants (IFAC) (revenues, debt and services). Our findings indicate that the income statement is a good approach for the financial sustainability assessment, because it reveals relevant information about its three dimensions, allowing to identify the specific factors which could provoke sustainability problems on public services.     

Knowledge interaction towards inclusive learning: Promoting systems of innovation and competence building

This paper draws on recent conceptual approaches to economic growth, in which the accumulation of knowledge is the fundamental driving force behind growth. This fact is reflected in the trend in developed economies towards an increasing investment in advanced technology, R&D, education, and culture. Concepts such as learning ability, creativity, and sustained flexibility gain greater importance as guiding principles for the conduct of individuals, institutions, nations, and regions. It is thus legitimate to question the traditional way of viewing the role that contemporary institutions play in the process of economic development and to argue for the need to promote systems of innovation and competence building based on learning and knowledge networks. This broad concept has motivated the work behind the present work, which reviews the strongest themes of the 4th International Conference on Technology Policy and Innovation (ICTPI), which was held in Curitiba, Paraná, Brazil, in August of 2000. Under the broad designation of “learning and knowledge networks,” the conference brought together a range of experts to discuss technology, policy, and management in a context much influenced by a dynamics of change and a necessary balance between the creation and diffusion of knowledge. While the idea of inclusive development developed in previous conferences entails a process of shared prosperity across the globe following local specific conditions, it is crucial to understand the dynamics of the process of knowledge accumulation, which drives a learning society. Thus, this special issue includes a set of extended contributions to the Curitiba conference that are largely grounded on empirical experiences of different regional and national contexts. The aim of this introductory paper is to set the stage for these contributions, with an original contribution on possible views for the learning society.     

Efficiency evaluation in municipal services: an application to the street lighting service in Spain

Efficiency evaluation is very important in the municipal realm because of its impact on the people’s standard of living. However, in most cases the value of public output is hardly significant, and therefore measurement is necessarily limited to estimating technical efficiency, which is calculated using physical inputs and outputs. A major part of municipal services can be provided through different types of public management. This plurality of options lends greater relevance to the evaluation. This paper analyzes efficiency in the public street lighting service in Spanish towns, by means of DEA methodology, pursuing two objectives: to estimate the technical efficiency achieved and to discover whether differences in efficiency can be explained by the type of management, that has been chosen, whether public or private. The results of the analysis allow us to confirm that there is a significant relationship between the variables defined as inputs into the process and efficiency. However, the relationship is not very significant for the variables considered as outputs, in some cases. It was also detected that the factors defining the characteristics of the environment and the type of management, whether public or private, do not have a statistically significant impact on efficiency levels.

Sentences Recognition Memory and Extraversion-Introversion Levels: A Statistical Modelling Approach

This research aimed to analyse individual differences in recognition of semantic memory by means of a statistical modelling approach, because some difficulties arise when traditional experimental designs and statistical hypotheses tests are used. In this field, statistical modelling provides the possibility of obtaining a data-fitted model for each experimental condition. One hundred and thirty five adult students, both males and females, agreed to participate in our study and were classified as high, middle and low extraverts. Sentences with a high semantic organisation were used as material to be recognised. A statistical modelling process was then applied using the lEM program. Differences in recognition memory for hits were found between middle and low extraversion levels, as revealed by the different data-fitted models.     

Ownership Structure of Cooperatives as an Environmental Buffer*

ABSTRACT In this paper, we propose that the ownership structure in the cooperative form acts as an environmental buffer. It is a mechanism to obtain stronger linkages with suppliers by internalizing them, and in this way, obtaining fundamental resources. Using this strategy, the cooperative form can isolate itself from adverse environments and from competition from other organizational forms. Although cooperatives have higher survival probability in any economic context, in rival ideological environments they have less support than other organizational forms. To test these ideas, we have chosen data from the Spanish olive oil milling industry for 1944–98. During this period, Spain changed from a dictatorial to a democratic regime and from a self‐subsistence economy in the post civil‐war period to a broad liberal international economy. The results show that, whereas other organizational forms are affected by economic and ideological influences, the cooperative form isolates itself by changing the competition level.     

Growth,development and tourism in a small economy: evidence from Aruba

This study will focus on tourism economic growth and its development impacts on a microstate and will explore their implications for tourism analysis and planning. The evidence presented in this article reveals that tourism in Aruba can generate desirable and widely distributed impacts. The tourist performance also has been remarkable and consistent. The results also suggest that the export‐led growth strategy has affected the whole of the economy in a positive way. The principal conclusion is that institutional intervention can only become a positive force within a context of rapid integration with the global market. Copyright © 2003 John Wiley & Sons, Ltd.