Confidence in formal institutions and reliance on informal institutions in Bosnia and Herzegovina

This article uses survey data to investigate the relationship between citizens’ confidence in formal institutions and reliance on informal institutions in Bosnia and Herzegovina (BiH). We find an endogenous substituting relationship and that the different institutional structures currently existing in the two entities in BiH are significantly linked to respondents’ confidence in formal and reliance on informal institutions. In addition, perceptions of higher indirect costs of institutions and a lack of their improvement are associated with a lower confidence in formal and a greater reliance on informal institutions; the minority ethnic groups in each region are less confident in formal and rely more on informal institutions compared to the majority group; and more reliance on informal institutions is found amongst males and respondents from urban areas.     

ADOPTING JAPANESE-STYLE MANUFACTURING METHODS: A TALE OF TWO (UK) FACTORIES*

Japanese manufacturing methods such as just-in-time production and total quality control are serving as a model of manufacturing organization which many UK manufacturers are currently emulating. This article describes the implementation of just-in-time production and its supporting practices in two factories owned by the same company. Empirical evidence demonstrates a profoundly political dimension to these innovations, requiring a significant rewriting of organizations’ political and cultural maps.     

Testing Choice Experiment for Benefit Transfer with Preference Heterogeneity

Benefit transfer is a cost-effective method for estimating the value of environmental goods that relies on information obtained in previous studies. The multiattribute approach of choice experiments should provide advantages in terms of benefit transfer, allowing differences in environmental improvements between sites as well as differences in socioeconomic and attitude characteristics between respondent populations. This article investigates the capability of choice experiment method to be used in environmental benefit transfer when a random parameters approach is used to allow for preference heterogeneity: we find that the inclusion of respondents' taste heterogeneity reduces the magnitude of the transfer error.     

A GAME THEORETIC FOUNDATION OF COMPETITIVE EQUILIBRIA WITH ADVERSE SELECTION

We construct an extensive form game that captures competitive markets with adverse selection. It allows firms to offer any finite set of contracts, so that cross‐subsidization is not ruled out. Moreover, firms can withdraw from the market after initial contract offers have been observed. We show that a subgame perfect equilibrium always exists. In fact, when withdrawal is costless, the set of equilibrium outcomes may correspond to the entire set of feasible contracts. We then focus on robust equilibria that continue to exist for small withdrawal costs. We show that the Miyazaki–Wilson contracts are the unique robust equilibrium outcome.     

Estimating the benefits of water quality improvements under the Water Framework Directive: are benefits transferable?

The Water Framework Directive sets an objective of ‘GoodEcological Status’ for water bodies across the EU. Non-pointpollution from agriculture is a major reason for the failureof rivers in the UK to meet this target. In this paper, we usechoice experiment methodology to test the transferability ofbenefit estimates of water quality improvements for two smallcatchments where agricultural-source non-point pollution andirrigation water abstraction are the main threats to ecologicalstatus. We also investigate the most appropriate techniquesto apply to transfer testing, including allowing for correlationbetween preferences for environmental attributes, and testingfor acceptable differences between transferred and originalvalues.     

Reviews

UNITARY AUTHORITIES.

Coopers & Lybrand Deloitte, 1992: Partnership in Prosperity: local government's role in economic development. Association of County Councils: The review of local government — Paper No 6 (February).

THE NISSAN ENIGMA.

Garrahan, P. and Stewart, P. 1992: The Nissan Enigma: Flexibility at Work in a Local Economy. London: Mansell, £35.00 cloth, £12.99 paper.

THE INTELLIGENT REGION.

Cooke, P. and Morgan, K. 1991: The Intelligent Region: Industrial and Institutional Innovation in Emilia-Romagna. Cardiff: Regional Industrial Research, Report 7, PO Box 906, Cardiff CF1 3YN.

STRENGTHENING BRITAIN'S TECHNOLOGICAL PERFORMANCE.

Brunskill, 1.1992: Making It: A Federal approach to industrial policy. London: Institute for Public Policy Research, £10.00 paper.

INVISIBLE MINORITIES.

Wrench, J., Brar, H. and Martin, P. 1991: Invisible Minorities: The employment experiences and needs of black and ethnic communities in Harlow. University of Warwick: Centre for research in Ethnic Relations. Available from Harlow District Council.

RURAL RESTRUCTURING.

Gilg, A.W. (ed), 1992: Restructuring the Countryside: Environmental Policy and Practice, Aldershot: Ashgate Publishing Ltd, £32.50 cloth.     

SAVINGS IN THE ABSENCE OF FUNCTIONING PROPERTY RIGHTS1

Nigeria is a prime example of a developing country with ill‐defined property rights. However, people still manage to save, mostly through traditional and informal means, facilitated by strong family and community institutions. This paper argues that the government should concentrate on strengthening these institutions rather than weakening them by imposing an inappropriate, Western‐style, formal pensions system on the country.     

Job Creation by Assisted Rural Firms: a European North-South Perspective

The present paper reports results from a comparative analysis of the effectiveness of regional policy schemes in areas of Scotland and Greece. Discretionary schemes are of a lower gross cost per job than automatic ones in both countries. Additionality was found to be very high among all schemes in both countries. Results indicate that future policy design should be decentralised and highly adapted to local conditions. In the case of Greece, the dominant top-bottom style of policy making acts as major constraints in the adoption of more decentralised policy design and delivery mechanisms. In the case of Scotland such a task is easier to accomplish.