Borrowing constraints,the cost of precautionary saving and unemployment insurance

When it is costly for individuals to save or to borrow, unemployment insurance (UI) provides an alternative source of liquidity that smooths consumption over time and leads individuals to spend longer unemployed searching for a suitable job. We show in a tractable life-cycle model how the optimal unemployment replacement ratio and the fall in consumption on job loss depend on the cost of self-insurance and the cost of borrowing. This implies that the value of UI depends on age at job loss, consumption needs (such as the presence of children), discount rates, the return on saving, access to credit and the presence of other social insurance programmes. Optimal replacement rates vary substantially with plausible variation in these factors (from less than 20 percent to almost 60 percent).     

Transfer payments and the Phillips Curve

Policy makers are today confronted with a worsening relationship between inflation and unemployment. Voluminous economic literature on the “Phillips Curve” has long attempted to show why inflation and unemployment are normally inversely correlated. More recent literature has sought to identify factors that could worsen the apparent tradeoff. This paper uses the labor sector of the System Dynamics National Model to analyze the potential impacts of increased transfer payments on inflation and unemployment. The results suggest that in the short run, higher transfer payments can prolong job search, thereby boosting unemployment, while simultaneously driving up wages due to reduced labor availability. But over the longer term, rising wages raise the attrractiveness of working, thereby compensating for higher transfer payments. Therefore, higher transfer payments are not permanently inflationary. Key long-run impacts of transfer payments may be to raise relative costs of labor, thereby lowering employment through factor substitution, and to discourage dropout from the labor force so as to maintain eligibility for payments.     

Agricultural development in Southern Africa: Theory,lessons and the food crisis in Africa

In this paper a household economics theory of farm‐household production in the Southern African context is presented which (a) places a new interpretation on the causes of low productivity per person and unit of land in the African farming sector, (b) demonstrates that even where improved food crop technology is widely adopted it may have a very limited impact on marketed production, and (c) contributes to an understanding of why Africa's food production per person continues to fall despite per capita aid inflows which have exceeded those for any other continent over the last decade.     

Singapore-based subsidiaries of US multinationals and singaporean firms: A comparative management study

The objective of this exploratory study is to compare and contrast various aspects of US management with Singapore management. One hundred and four top managers, 99 middle managers and 780 operating employees from 20 manufacturing companies participated in the survey. The chief executive of each company was contacted by mail before the survey was begun.Hypotheses concerning the management philosophies, management practices and management effectiveness were tested for differences between US subsidiaries and Singaporean firms.The results of the research indicate significant statistical differences for the two groups of companies with respect to the management variables. Explanations regarding these differences are presented.A paper comprising a substantial portion of this article was presented by the author at the43rd National Academy of Management Conference held in Dallas, Texas between August 14 and 17, 1983.The author is grateful to Dr Bruce W. Stening, of the Department of Management at the University of Western Australia for his perceptive guidance during the study. The author is with the Department of Management, University of Western Australia.     

Management of Scientific Staff at the Harwell Laboratory of the U. K. Atomic Energy Authority

Harwell's primary role. is to serve as the main research laboratory supporting the U. K. nuclear power development programme; in addition it undertakes research and development outside of the nuclear field for Government and industrial customers. Overall, there is the need to manage a very large number of separate and often disparate items of work and to ensure effective communication with senior managers of the nuclear power programme and with commercial customers on allocation of resources and technical progress. This is done through a version of "matrix management". A large proportion of the technical, commercial and staff management decisions are devolved within Harwell's matrix organisation where teams of staff required for particular items of R & D are formed by arrangements agreed locally between the two axes of the matrix. The smaller groupings of staff created in the matrix are important in providing environments where good staff management practices can be established and where a team spirit aids motivation and technical initiative.