Flexible exchange rates as shock absorbers

In this paper we analyze empirically the effect of terms of trade shocks on economic performance under alternative exchange rate regimes. We are particularly interested in investigating whether terms of trade disturbances have a smaller effect on growth in countries with a flexible exchange rate arrangement. We also analyze whether negative and positive terms of trade shocks have asymmetric effects on growth, and whether the magnitude of these asymmetries depends on the exchange rate regime. We find evidence suggesting that terms of trade shocks get amplified in countries that have more rigid exchange rate regimes. We also find evidence of an asymmetric response to terms of trade shocks: the output response is larger for negative than for positive shocks. Finally, we find evidence supporting the view that, after controlling for other factors, countries with more flexible exchange rate regimes grow faster than countries with fixed exchange rates.     

Modeling Distribution Services and Assessing Their Welfare Effects in a General Equilibrium Framework

Most international trade models fail to account for the fact that almost all goods must pass through the distribution sector. The authors compare different approaches to modeling distribution within an Applied General Equilibrium framework and find that such modeling may significantly affect trade opening simulations. They also predict large potential gains from streamlining distribution. For instance, a 10% reduction in Japan's final goods distribution margins would benefit it as much as worldwide free trade would. They also find that, compared to trade opening, reducing margins leads to smaller inter‐sectoral production shifts and thus may engender less political opposition.     

Jointness in production and farmers' willingness to supply non-marketed ecosystem services

This paper highlights how farmers' willingness to supply non-marketed ecosystem services (ES) is influenced by whether or not the non-marketed ES are produced jointly with agricultural products. When marketed products and non-marketed ES share some production inputs the production relationships between the two may be complementary, competitive or substitutive. Using a cost minimization framework, it is shown how complementary relationships lead to costless voluntary provision of non-marketed ES (typically the case for ES that are supportive of provisioning ES for marketed farm products). It is also shown how competitive production relationships lead to provision of non-marketed ES at lower cost than when non-marketed ES are direct substitutes for farm products or are produced outside of agriculture. The paper closes by showing how the minimum willingness to accept (WTA) payment for ES that are complementary/competitive is less than or equal to the minimum WTA for the same ES produced in substitute or independent production relationships.     

Disagreement over the emergence of private property rights: alternative meanings, alternative explanations

This paper is an exercise in the history of thought, which compares Austrian and neoclassical theories of the emergence of private property rights, and examines, in part, the extent to which Austrians can be said to offer a commonly-agreed upon explanation that parallels Carl Menger's exemplary story of the emergence of money. We address the sources of disagreement (and apparent conflict) among emergence theorists in both schools. We try to show that some of the disagreement hinges on an unclear meaning of the term “emergence,” which is resolvable, while other sources of disagreement are fundamental at the methodological level. JEL Code B25, E40, E53     

The Effects of Public Ownership and Regulatory Independence on Regulatory Outcomes

We examine the effects of public ownership and regulatory agency independence on regulatory outcomes in EU telecommunications. Specifically, we study regulated interconnect rates paid by entrants to incumbents. We find that public ownership of the incumbent positively affects these interconnect rates, and suggest that governments influence regulatory outcomes in favor of incumbents in which they are substantially invested. However, we also find that the presence of institutional features enhancing regulatory independence from the government mitigates this effect. In order to study regulatory independence, we introduce a new cross-country time-series database—the European Union Regulatory Institutions (EURI) Database. This database describes the development of institutions bearing on regulatory independence and quality in telecommunications in the 15 founding EU member states from 1997 to 2003 *We thank Laurent Pipitone for superb research assistance. Geoff Edwards thanks the Sasakawa Foundation and the Institute of Management, Innovation and Organization at the Haas School of Business for generous financial assistance, and London Business School for non-financial support. Leonard Waverman thanks the Global Communications Consortium for support     

Developing holistic leaders: Four domains for leadership development and practice

Leadership development and practice have traditionally been quite narrow, with a decided focus on the analytical realm of leadership. However, the contemporary climate of corporate scandal and resultant loss of societal confidence, coupled with the evolving demands, needs, and expectations of employees, point to the potential need for a more holistic approach to leadership. Thus, this article proposes how management education and leadership development programs can develop holistic leaders that are adept at operating in the analytical, conceptual, emotional, and spiritual domains of leadership practice. An integrated model for holistic leadership development and practice that addresses all four of these domains is proposed, and grounded in both established and emerging leadership development theory. Additionally, a leadership development classification scheme is proposed based on classroom, job, and organizational contexts.     

WORLD OUTLOOK

After six years of steadily rising OECD output, fears of a significant rise in world inflation are now increasing. In the last year there has been a slight pick-up in inflation with producer prices up nearly d per cent. But prompt action by the Federal Reserve to raise interest rates before the presidential election appears to have damped inflationary expectations in the US and has given Japan and Germany an opportunity to tighten monetary policy without causing major currency fluctuations. It is also apparent that the other possible source of world inflation, commodity prices, is not a problem. OPEC over-production has ensured that the oil price remains weak and other commodity prices appear to have stopped rising after a brief acceleration at the beginning of the year. Nevertheless the major imbalances in world trade are declining only slowly and without a change in fiscal policy in the major economies it is difficult to believe that minor changes in monetary policy will be sufficient if the process of adjustment begins to falter. Despite these risks, we take a sanguine view of world prospects. Tighter monetary policy should effect a slowdown in world growth next year (already indicated by recent developments, particularly in the US) and this should be sufficient to control inflation which we expect to peak at just under 5 per cent at the beginning of next year. From 1990 onwards we see steady growth accompanied by low inflation.     

Land use and commodity production

An agricultural land use system á la Von Thünen is adduced. Sraffa's theory of production, prices, and distribution is situated within this system. The specific inter-relations of the Von Thünen model and the Sraffa model are then discussed. The discussion is particularly focussed around the problem of the determination of land rent in relation to both production and consumption. Some final comments are appended on the process of land use change.     

中国农村社区公共物品投资的决定因素分析

本文使用具有全国代表性的抽样调查数据,对农村社区公共物品投资的决定因素进行了初步的分析。本文通过理论分析提出了两个理论假说,进而提出在我国公共投资中要注意的问题:既要考虑各地对公共投资有不同的需求,还要考虑区域协调发展。研究结果表明,除了一些政策因素以外,当地经济发展水平是影响农村公共投资的重要因素,一般来说,在工商业较发达的村公共投资活动也相对较多。对于外出务工人员较多的村,由于本地公共投资对外出务工人员的收入等作用较小,因此这部分村民就不那么愿意对村里进行公共投资。从政策实施角度看,本研究发现,上级政府的公共投资更多地投向贫困地区、偏远山区、农业生产条件差的地区或少数民族地区。这种投资战略有助于统筹区域发展,降低区域差异。