Relative risk aversion, relative prudence and comparative statics under uncertainty: The case of (μ, σ)‐preferences

From the expected‐utility approach, relative risk aversion being smaller than one and relative prudence being smaller than two emerge as preference restrictions that fully determine the optimal responses of decisions under uncertainty to certain shifts in probability distributions. We characterize the magnitudes of relative risk aversion and relative prudence in terms of the two‐parameter, mean‐standard deviation approach. We demonstrate that this characterization is instrumental in obtaining comparative static results in the two‐parameter setting. We further relate our findings to the results in the expected‐utility framework.     

Price Changes and Some Underlying Aspects of Measurement of Poverty

The paper deals with effects of price changes on measurement of poverty. It is shown that there are situations, when prices and nominal incomes change, a higher nutritional intake or an increase in commodity consumption of the poor can be associated with higher poverty gaps and a higher poverty index of the society. A positive relationship of this kind is quite counter-intuitive in the context of poverty measurement. This is caused by the adjustment of the poverty line and/or incomes of one situation by the prices of the other for the purpose of comparison.

     

Offshoring in the New Global Political Economy

abstract    This essay challenges claims by economists and management scholars that 'offshoring' is simply another form of trade with mutual benefits. I argue that reducing wages through offshoring leads to wealth creation for shareholders but not necessarily for countries and employees, and that many displaced workers have difficulty 'trading up' to higher skilled jobs. Offshoring is a new phenomenon that entails the organizational and technological ability to relocate specific tasks and coordinate a geographically dispersed network of activities. It decouples the linkages between economic value creation and geographic location. The result is the creation of global commodity markets for particular skills and a shift in the balance of market power among firms, workers, and countries.     

The distributional impact of unification and the 1992–93 recession on West German households

The 1992–93 recession in the western states of Germany has been attributed, in substantial measure, to the macroeconomic consequences of policies to finance unification. Studies of the costs of unification have not attempted to measure the burden of the recession. We estimate a dynamic, panel model of household incomes using data from the German Socio-Economic Panel (GSOEP) and use it to forecast what these incomes would have been in 1992–94 without a recession. Using a ratio of actual to forecast incomes, we compare the relative burden of the recession across households. Our findings suggest that western households below the median income bore the brunt of the combined impact of unification and the recession of 1992–93.
JEL classification: P3, D3, E3.     

Lobbying, multisector trade, and sustainability of free‐trade agreements

Abstract.  This paper is concerned with the sustainability of free‐trade agreements (FTA). FTA sustainability is influenced by governments' valuations of political contributions, discount factors, the lobbying position of the specific‐interest groups in the intra‐industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby‐supported FTA is more sustainable than the lobby‐opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability. JEL Classification: F12, F13, F15.     

The historical origins of the Philippine economy: a survey of recent research of the Spanish colonial era

This article surveys recent research of the Spanish colonial era in the Philippines since the late eighteenth century. While highlighting imperfections in our understanding, the article establishes the parameters with which the Philippine economy entered the twentieth century. It outlines the intensification of Spanish colonial rule through changes in the taxation system, particularly the expansion of forced tobacco cultivation until its abolition in 1882. Since then, the Spanish set out to further change and intensify colonial rule but contradictions in the system of colonial rule caused the effort to come to an abrupt end in 1898.     

经济管理类专业计算机相关课程的设置与开放实验教学的研究

文章根据新形势下经济管理类专业对计算机及相关技术的特殊要求,讨论了计算机相关课程的设置,提出了实验教学改革的想法,即如何构建和管理开放实验室。     

Reform of European Merger Policy

The paper highlights the main drivers for merger policy reform in the European Union, including the consequences of the recent appeal court reverses. It discusses some of the substantive and procedural issues that the reform package should address, and outlines the reforms in progress. The author concludes that much of the reform package will be beneficial, but some important opportunities have been missed in this inevitably patchwork process.