Devaluation,Inflation, and the Balance of Payments: A Short-Run Monetary Approach*

In this paper a model is presented to analyze, in a monetary setting, the effects of a once-and-for-all adjustment in the exchange rate in a small economy committed to a fixed exchange-rate system. The effects of such an adjustment are shown to be transitory. After a devaluation the domestic rate of inflation accelerates in relation to the rate of inflation in the rest of the world. The increase in prices reduces the real value of the nominal stock of money and, in order to restore real liquidity to its previous level, foreign-exchange reserves start to flow into the country. However, as monetary equlibrium is reached, the flow of reserves tends to stop and the domestic rate of inflation converges to the world rate.     

A test of McClements' method for the estimation of equivalence scales

An attempt was made to determine equivalence scales for children by using the McClements technique to estimate the Prais-Houthakker expenditure model using Australian data. It was found that the method was used by McClements to identify the system introduced an unacceptable degree of subjective bias.     

Development Rights and the Differential Assessment of Agricultural Land: Fractional Valuation of Farmland is Ineffective for Preserving Open Space and Subsidizes Speculation

Abstract . The relative fiscal efficacy of using differential assessment as a means of preserving agricultural land is examined. A simple model of land use and land rent determination is developed and tested. An implication is that differential assessment merely delays or retards, but does not prevent, the conversion of land to developed uses. Differential assessment is viewed as a tax expenditure, or special tax reduction, that in essence leases development rights, Landowners are also shown to be overcompensated for the development rights implicitly acquired by the public sector. The fee simple purchase of development rights or regulatory control over the use of development rights can be employed to preserve farm land at a lower fiscal cost.     

Internal Wage Structures and Organizational Performance

This paper considers whether a hierarchical or compressed wage structure is positively associated with relatively high levels of organizational performance. To date, there has been little empirical research in this area (especially in the UK). Thus we present an operational measure of a compressed/hierarchical wage structure, using UK manufacturing micro–data in five industrial sectors, and examine its relationship with labour productivity. We find that the wage compression argument holds in one sector but not for the majority of sectors and that taking into account other, intra–industry characteristics, namely size and ownership differences, further weakens the relationship.     

Seafood Quality: Issues for Consumer Researchers

The benefits and risks of consuming seafood have received much media attention recently yet little research has been done in the area of seafood quality. This paper provides a background of the issues involved and proposes a research agenda for the study of consumers and seafood quality. Implications for public policy are drawn.     

Do strained bilateral relations affect tourists’ desire to visit a country that is a target of animosity?

ABSTRACT

This study examines the attractiveness of destination tourism offerings when the destination country and the source market country are engaged in ongoing political and economic conflict. The study is set in the Russia–United States (US) context, where Russia is the tourism-generating region and the US are the vacation destination. Specifically, the study investigates how the desire of Russian tourists to vacation in the US is affected by perceptions of the US as a country and as a vacation destination, animosity toward the US, and Russian tourists? level of national attachment and ethnocentric tendencies. The study found that country image, destination image, and general animosity have a direct effect on intention to visit. The effects of consumer ethnocentrism and national situational animosity on intention to visit are mediated by destination image and country image respectively.