Global and world cities: a view from off the map

Attention to global and world cities has directed the field of urban studies to the significance of international and transnational processes in shaping city economies. This article evaluates these approaches, from a position off their maps. I argue that the circulation of these approaches in academic and policy realms adversely impacts on cities which do not fall into these categories by setting up the idea of the global city as a ‘regulating fiction’, a standard towards which they aspire. It establishes a small sector of the global economy as most desirable in planning the future of cities. By contrast, mega–cities function as the dramatic ‘other’ of world and global cities, and highlight the developmentalist discourse through which most cities in poor countries are assessed as fundamentally lacking in qualities of city–ness. I argue that the long–standing categories of western/third–world cities have been translated into the apparently transnational accounts of global and world cities. Western cities continue to be the primary site of production of apparently unlocated urban theory; so–called third–world cities (and other cities off the map of the world cities cartography) are interpreted through a developmentalist lens and, where they are referred to at all, are framed in terms of ‘difference’ or irrelevance. This article draws attention to the emergence of an alternative set of theoretical approaches, which are more inclusive in their geographical reach and which are concerned with the diverse dynamics of ordinary cities. These approaches have not yet realized that they have the potential to broaden the base for theorizing about cities and, with this in mind, the article explores the potential for a more cosmopolitan urban theory. The policy stakes in this are high, and the article notes that there are important political reasons to promote the analysis of ordinary cities in the face of the persistence of ambitions in many cities to become ‘world cities‘. L’attention accordée aux villes planétaires et mondiales a orienté le champ des études urbaines vers l’importance des processus internationaux et transnationaux dans la configuration économique des villes. Partant d’un point situé hors de leur cartographie, l’article évalue ces approches. La circulation de celles–ci dans les sphères politiques et intellectuelles a une incidence néfaste sur les villes qui n’appartiennent pas à ces catégories, car elle instaure l’idée d’une ville planétaire en tant que ‘fiction régulatrice’, norme à laquelle aspirent les villes. Un secteur restreint de l’économie mondiale est ainsi établi comme le plus recherché dans la planification urbaine. Par contraste, les megacities fonctionnent comme l’impressionnant ‘autre’ des villes mondiales et planétaires, valorisant le discours développementaliste selon lequel l’évaluation des villes des pays pauvres indique le plus souvent des lacunes fondamentales dans les qualités propres à une ville. Les anciennes catégories de villes (Occident/tiers–monde) ont été converties en justifications apparemment transnationales des villes planétaires et mondiales. Les villes occidentales restent le site de production principal d’une théorie urbaine manifestement non–localisée; les villes dites du tiers monde (et autres villes ignorées de la cartographie des villes mondiales) sont interprétées à travers une optique développementaliste et, si on en parle, sont dépeintes en termes de ‘différence‘ ou d’inadéquation. Cet article souligne l’émergence d’un autre ensemble d’approches théoriques, plus inclusives dans leur géographie et soucieuses des diverses dynamiques des villes ordinaires. Sachant que ces démarches ne sont pas encore conscientes de pouvoir étendre la base théorique sur les villes, l’article explore la possibilité d’une théorie urbaine plus cosmopolite. Les enjeux stratégiques sont sérieux et il existe des raisons politiques importantes d’encourager l’analyse des villes ordinaires face aux ambitions persistantes dans de nombreuses villes de devenir les ‘villes mondiales’.     

Foreign trade,resource allocation,and structural adjustment in Yugoslavia: 1976–1980

A multisector computable general-equilibrium model for the Yugoslav economy is used to analyze some of the internal and external causes of the foreign-exchange crisis of the 1976–1980 period. Methodologically, its modeling approach, appropriately modified for institutional differences, can be used to study the behavior of socialist economies in which prices play a role in resource allocation. Empirically, the results suggest that internal policy errors and systemic factors were the predominant force behind Yugoslavia's growing foreign-exchange shortage between 1976 and 1980. J. Comp. Econ., March 1985, 9(1), pp. 46–70. University of California, Berkeley, California 94720.     

A tax-based motive for the underpricing of initial public offerings

This paper presents a model of entrepreneurial wealth maximization for the pricing of initial public offerings (IPOs). It is an extension of one previously presented in the literature. The model shows that personal tax rates on ordinary income and capital gains may, in part, determine IPO pricing: an increase in the capital gains tax rate should lower the degree of underpricing. An empirical analysis of the effect of the Tax Reform Act of 1986, which raised the capital gains tax rate, shows that the average degree of underpricing did decrease as predicted, and that this occurs after controlling for other possible influences.     

The Bank of England quarterly model of the UK economy

The Bank of England first acquired a macroeconomic model of the UK economy in early 1973, and used it for forecasting in June and July of that year. The initial model was obtained from the London Business School (LBS), but the last 14 years or so have, on the part of both the Bank and the LBS, led to developments which now make the models no closer to each other than to other large scale models of the UK. This article describes the structure and central properties of the current version of the Bank model, which has some 663 variables, 134 of which are modelled by behavioural equations, 153 by technical equations, 212 identities and 164 exogenous variables. In order to provide a transitional step between the kind of models with which most macroeconomists are familiar and the full scale version of the Bank model, one part of the article presents a very simple stylized version of the full model. This is a stepping stone to the full model which is described and analysed on a sectoral basis in Part 3, with a complete listing of equations in Part 4. Some of the simulation properties, and hence full model dynamic responses, are considered in Part 5.     

The e-mediated (Google Earth) gaze: an observational and semiotic perspective

This paper provides an observational and introductory semiotic analysis of the sharing of recorded images through Google Earth to provide a benchmark against conventional imagery, based upon a theoretical discourse, and to question the changing nature of image recording and sharing and of the consequential constructions of a place that occur. It gives consideration to the complex sociological relationships between new technologies and the ability to now view destinations online, with photos, street views and a myriad range of information sources. Many photos are shared by tourists, and many by local people, and there are contested constructs of the destination image as a result.     

Accrual accounting and Australian fiscal policy

Australian governments have recently moved from cash accounting to accrual accounting. Accrual accounting has been accompanied at the national government level by the introduction of a new key fiscal policy measure: the ‘fiscal balance’. This paper explains and evaluates this new fiscal measure. It concludes that, given the present fiscal policy of the Australian government, fiscal balance is a superior fiscal policy measure to the ‘cash’ budget balance measure which it replaced. However, from the alternative ‘golden rule’ policy standpoint, fiscal balance is not a meaningful fiscal policy measure — although its stock counterpart, net financial liabilities, certainly is.     

Adverse Selection and Competing Deposit Insurance Systems in Pre-Depression Texas

In 1910, Texas instituted a unique deposit insurance program for its state chartered banks by providing a choice between two separate plans: the depositors guaranty fund, similar to insurance schemes in several other states, and the depositors bond security system, which required the procurement of a privately issued guarantee of indemnity. While, under most deposit insurance schemes, the incentive to monitor the financial condition of individual banks simply devolves from depositors to regulators, the bond security system established in Texas distinguished itself by attempting to reintroduce market discipline through the indemnity requirement. Using a probit model with heteroscedasticity, we find evidence that the choice of insurance coverage led to risk-sorting among the banks, with relatively conservative and financially secure institutions opting for the comparatively rigorous bond security system. In addition, the bank failure record indicates the risk differentials between banks in the two plans persisted over time and even possibly grew, suggesting the bond security system at least partially avoided the moral hazard incentives associated with the fixed-rate depositors guaranty plan. These findings support the general view that market discipline is effective in banking.     

SERIAL ISSUE EVIDENCE FOR THE RELATION BETWEEN THE RISK STRUCTURE AND MATURITY: A DECOMPOSITION METHODOLOGY

The risk structure of the interest rates literature shows that coupon effects can cause changes in yield spreads as maturity lengthens. These effects make it difficult to empirically isolate the default risk component of the spread for coupon-paying bonds. Attempts to calculate zero-coupon risk structures suffer from the relative scarcity of zero-coupon corporate bonds. We show that yield spreads for coupon-paying bonds that are identical except for default risk decompose into a relative duration component, a premium discount coupon component, and a default component. We present closed-form solutions for measuring the first two components so that the default risk portions can be isolated as residuals. We further present an empirical application of the decomposition metrics for sixteen exchange-traded serial issues and nonparametrically examine the relation between the default premia and maturity. We find various maturity relations.