Motives for Giving: A Reanalysis of Two Classic Public Goods Experiments

Experimental work in economics prompted the development of theories of other‐regarding behavior. In this article we reanalyze two classic public goods experiments and focus on the nature of individuals' responses to others' behavior in order to help distinguish alternative motives for giving, including altruism, warm glow, reciprocity, and inequality aversion. Analysis that allows for asymmetric feedback responses generates support for inequality aversion motives but little for reciprocity (matching), altruism, and warm glow. We conclude that individual‐level analysis of existing public goods data can provide more insightful, informative estimates of treatment effects.     

On inferring standard deviations from path dependent options

Path dependent option prices are employed to derive implied standard deviations of the underlying security price process without recourse to numerical procedures. We empirically illustrate our methodology by inferring the volatility of gold prices.     

True Spreads and Equilibrium Prices

Stocks and other financial assets are traded at prices that lie on a fixed grid determined by the minimum tick size. Observed prices and quoted spreads do not correspond to the equilibrium prices and true spreads that would exist in a market with no minimum tick size. Using Monte Carlo Markov Chain methods, this paper estimates the equilibrium prices and true spreads. For large stocks, most of the quoted spread is attributable to the rounding of prices and the adverse selection component is small. The true spread and the adverse selection component are greater for mid-sized stocks.     

INTERPRETING THE DYNAMICS OF PUBLIC SECTOR BUDGETING: A DIALECTIC OF CONTROL APPROACH

Developing a dialectic of control theoretical framework, the paper shows how the theory may be applied to explain turbulence in public sector budgeting. Applying the framework to fieldwork research in two large UK local authorities, the study explores the knowledge and intentionality of actors engaged in budgeting. Focusing on a crisis in educational funding, cognitive issues based around unreliability of cost and planning data were significant factors behind tactical successes for local budgetees. Central government, however, was able to exert power through its ability to change the rules, leading to new structures for public education provision. The dialectical framework avoids the reductionism and functionalism that characterises some of the budget gaming literature and also has potential implications for interpreting step changes in public funding.     

Productivity and international competitiveness of agriculture in the European Union and the United States

This study looks at international competitiveness of agriculture in the European Union and the United States. The most intuitive concept is that of price competitiveness. We calculate relative prices for 11 member states of the European Union and the United States for the period 1973–2002. We assume that markets are perfectly competitive and in long‐run equilibrium, so that the observed price always equals average total cost, as measured by the cost dual to the production function. This assumption is used in our calculation of relative competitiveness and productivity gaps between the European Union and the United States and in our decomposition of relative price movements between changes in relative input prices and changes in relative productivity levels.     

THE PRIVATE FINANCE INITIATIVE IN LOCAL GOVERNMENT

This paper distinguishes between the Private Finance Initiative (PFI) and the more general Public Private Partnerships (PPP). It traces the growth of the initiative since its start in 1992 to the current day and considers the implications of PFI for the public finances. A number of economic issues are discussed including bidding costs, financing costs and whole life costing. The importance of risk transfer in the value for money analysis of PFI projects is emphasised and the extent to which risk actually is transferred is questioned. Finally, the contribution of PFI towards modernising public service is recognised but the Audit Commission's recommendation that a wider range of procurement tools ought to be considered is noted.