Ecodynamics. A New Theory of Societal Evolution

The purpose of this essay is to provide an alternative approach to studying the rhetoric of policy-oriented economics suggesting that the range of economic-policy possibilities is conditioned by the rhetoric of economics. To this end, Martin Feldstein's pro-privatization rhetoric will be compared to that of President Bush. In doing so, we will aim at showing that just as the political rhetoric of Social Security invokes the authority of "ideographs" such as personal ownership to draw on a society's ideological and cultural repertoire, economic rhetoric undertakes a similar task by employing "economic ideographs" like deadweight loss to resonate with fellow economists through an appeal to the implicit normative premises embedded in the language of economics.     

Improving emergency plans management with SAGA

Emergency plans are the tangible result of the preparedness activities of the emergency management lifecycle. In many countries, public service organizations have the legal obligation to develop and maintain emergency plans covering all possible hazards relative to their areas of operation. However, little support is provided to planners in the development and use of plans. Often, advances in software technology have not been exploited, and plans remain as text documents whose accessibility is very limited. In this paper, we advocate for the definition and implementation of plan management processes as the first step to better produce and manage emergency plans. The main contribution of our work is to raise the need for IT-enabled planning environments, either at the national or organization-specific levels, which can lead to more uniform plans that are easier to evaluate and share, with support to stakeholders other than responders, among other advantages. To illustrate our proposal, we introduce SAGA, a framework that supports the full lifecycle of emergency plan management. SAGA provides all the actors involved in plan management with a number of tools to support all the stages of the plan lifecycle. We outline the architecture of the system, and show with a case study how planning processes can benefit from a system like SAGA.     

Mapping fragmentation: Electronics and automobiles in East Asia and Latin America

"Fragmentation", the relocation of processes or functions across countries in response to cost and other differences, has important implications for development. We discuss the drivers of fragmentation and map it for electronics and automotives in East Asia (EA) and Latin America. For technical reasons, electronics is fragmenting faster world-wide than the auto industry. Electronics networks are more advanced, widespread and integrated in EA than Latin America and the Caribbean (LAC), and are largely responsible for EA's rapid export growth. The auto network is more advanced in LAC but is slower growing and is not integrated into a regional system. Apart from Mexico, LAC lacks an electronics network, partly accounting for the region's weak export performance. We offer insights into the following: Why do industries fragment differently? How can fragmentation be measured? Why does fragmentation in developing countries concentrate on EA and LAC? Why has fragmentation evolved differently in these two regions? Can other developing regions attract and benefit from fragmentation?     

Multi-stakeholder platforms for linking small farmers to value chains: evidence from the Andes

Value chains linked to urban markets and agro-industry present new opportunities for adding value and raising rural incomes. Small farmers, who produce small volumes, struggle to enter these markets. A lack of trust among value chain actors increases transaction costs and short-circuits innovation. This paper explores how multi-stakeholder platforms have been used to address these problems in potato-based value chains in Bolivia, Peru and Ecuador. It uses the Institutional Analysis and Development (IAD) framework to understand how platforms work. Differences in characteristics of the value chains, the participating actors and institutional arrangements have led to the emergence of two types of platforms. The first type brings traders, processors, supermarkets and others together with farmer associations and research and development (R&D) organizations to foster the development of new market opportunities through commercial, institutional and technological innovation. The second type is structured around geographically delimited supply areas, meshing farmers and service providers to address market governance issues in assuring volumes, meeting quality and timeliness constraints and empowering farmers. Evidence from these cases indicates that platforms that bring stakeholders together around value chains can result in new products, processes, norms and behaviours that benefit poor farmers, which could not have been achieved otherwise.     

Discrimination in hire‐purchase lending by retailers of consumer durables in apartheid South Africa

A double‐hurdle partial observability model of hire‐purchase lending is specified and estimated to test for racial discrimination by retailers of consumer durables during apartheid. ‘Discrimination’ is defined as supplying no loans or less desirable loans to certain borrowers, who do not differ from more successful borrowers with respect to creditworthiness but who do differ with respect to race. There is strong evidence of discrimination. In particular, black households are 13 percentage points more likely to desire a hire‐purchase loan but not to have one supplied to them than are other households equivalent in all ways except race. Although the statistical test cannot determine whether race affected lending because lenders were bigoted or because race is correlated with unobserved characteristics correlated in turn with creditworthiness, increased access to formal loans for all South Africans could be promoted by relaxing the Usury Act and by removing from loan applications information that could reveal an applicant's race.     

Empirical Comparisons in Short-Term Interest Rate Models Using Nonparametric Methods

This study applies the nonparametric estimation procedure tothe diffusion process modeling the dynamics of short-term interestrates. This approach allows us to operate in continuous time,estimating the continuous-time model, despite the use of discretedata. Three methods are proposed. We apply these methods totwo important financial data. After selecting an appropriatebandwidth for each dataset, empirical comparisons indicate thatthe specification of the drift has a considerable impact onthe pricing of derivatives through its effect on the diffusionfunction. In addition, a novel nonparametric test has been proposedfor specification of linearity in the drift. Our simulationdirects us to reject the null hypothesis of linearity at the5% significance level for the two financial datasets.     

End‐of‐pipe or cleaner production? An empirical comparison of environmental innovation decisions across OECD countries

While both fundamental types of abatement measure mitigate the adverse environmental impacts of production, cleaner production technologies are frequently more advantageous than end‐of‐pipe technologies for environmental and economic reasons. This paper analyzes a variety of factors that might enhance firms' propensity to implement cleaner production technologies instead of end‐of‐pipe technologies. On the basis of a unique facility‐level data set derived from a recent OECD survey, we find a clear dominance of cleaner production in seven OECD countries: 76.8% of the facilities report that they invest predominantly in cleaner production technologies, above all in new production processes, but not so much in new products. Based on a discrete choice model, our estimation results indicate that regulatory measures and the stringency of environmental policies are more important for end‐of‐pipe technologies, while cost savings, general management systems and specific environmental management tools tend to favor clean production. We conclude that improvements towards cleaner production may be reached by the continuous development and wider diffusion of these management tools. Improvements may also be stimulated by widening the cost gap between the two types of technology, for instance by additionally charging for waste and energy use. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.