IMPACTS OF TAXES TO REDUCE AGRICHEMICAL USE WHEN FARM POLICY IS ENDOGENOUS

The economic impacts of policies to reduce water pollution from agriculture have been explored in a number of studies. A standard assumption in this literature is that farm income support policies are given. However, the modern public choice view of agricultural policy suggests that significant environmental initiatives in agriculture would likely be accompanied by changes in farm income policies to protect those with a significant stake in agriculture. We explore the potential effects of such compensating adjustments on the costs and effectiveness of taxes on polluting chemical inputs in US corn production. We find that compensating farm policy adjustments can greatly increase the costs and reduce the effectiveness of the environmental protection measure. The results also indicate the potentially high costs of poor policy co-ordination.     

Pasinetti,Keynes and the multiplier

This paper explores the relationship between the Keynesian multiplier and Pasinetti's model of pure production. Key assumptions of Pasinetti's model are its multisectoral structure, the definition of all income as a reward to labouring activities and, as a consequence, the operation of a pure labour theory of value. A translation between these models is effected by introducing investment as an exogenous determinant. By drawing from Keynes to apply his concept of the wage unit, it is possible to aggregate from Pasinetti's multisectoral model to a genuinely macroeconomic multiplier. This provides a way of using the scalar Keynesian multiplier without making the restrictive one-commodity assumption. In addition, this formal demonstration enhances our understanding of the relationship between the wage unit and the labour theory of value. Finally, critics have argued that Pasinetti downgrades the importance of institutional analysis; in contrast, the derivation of a scalar Keynesian multiplier contributes to an understanding of how relevant Pasinetti's approach is to the analysis of a monetary production economy.     

The Conflict Between Conservation and Recreation When Visitors Dislike Crowding: A Theoretical and Empirical Analysis of the Spatial Distribution of Recreational Beach Users

We investigate conflicts between wildlife conservation and recreational use that can occur at open-access sites when visitors dislike crowding. A theoretical model is proposed which determines the spatial distributions of visitors to a beach, given their willingness to walk to avoid crowding and the configuration of beach access points. This model is estimated for three sections of coastline in eastern England using data from aerial video photography. Visitor density is strongly and negatively correlated with distance from access points. Willingness to walk has a highly skewed population distribution. We discuss the implications of these findings for the management of conflicts between conservation and recreation at open-access sites.     

Rational Choice with Passion: Virtue in a Model of Rational Addiction

By incorporating a divided self into the rational addiction framework, this paper provides a rationale for and an explicit analysis of two types of budget-shrinking behaviors - actions taken to limit access to lifetime wealth in a given period, and actions taken to change the effective price of the addictive good. Moreover, internal conflict models provide a normative rationale, absent from rational addiction models, for policies that limit access to addictive goods.     

An Evaluation of Award-Winning Elementary Teaching Materials from the Kazanjian Program

In an unusual study, Professor Nappi attempts to measure the effectiveness of teacher-made materials in increasing the economic knowledge of elementary school pupils. In addition, he asks whether special training for teachers using the materials results in greater pupil learning as well. Finally, he seeks to determine the extent to which the teacher's understanding of economics (as measured by the Test of Economic Understanding published by Science Research Associates) brings about a change in pupil knowledge. Experimental and control groups were established for purposes of this study, and the pupil change scores were adjusted for differences in mental ability. It was found that, ceteris paribus, the materials, the special training for teachers, and teacher knowledge of economics all resulted in “comparative advantages” for experimental group pupils.     

Professional Occupations,Knowledge-Driven Firms,and Entrepreneurship: A National and Regional Analysis

The worldwide dominance of Western nations in commercial knowledge-intensive services has declined between 1995 and 2010, but the slippage in revenue was only from 88 to 79 percent. The European Union and North America remain the two largest regions in consumption and in exporting. Four professional service sectors—accounting, law, engineering, and management consultancy—have shown stability or even growth in the past decade. Entry and expansion requirements in these fields, at home and abroad, constitute barriers for both individual professionals and companies. Entrepreneurship is evident in these sectors, as small and medium size enterprises have maintained their viability against large firms. Only accountancy shows a high degree of concentration, but competition in this sector, too, is expected from the emerging economies, especially China. Professional service firms of the West have forged strong linkages with both domestic and foreign clients via relationship marketing. Technology is an important factor via automation. Although each of the four sectors is facing both external and internal challenges, they continue to grow and appear to be meeting the challenges in part by more innovation and transparency.     

Cognition and Affect Interplay: A Framework for the Tourist Vacation Decision-Making Process

The article investigates traditional decision-making choice models and offers a new way of thinking about the tourist vacation-making intricacies. Specifically, this article examines the interrelationship between affect and cognition in the tourist vacation decision-making process and argues that consumers, during each vacation decision-making task, use both affect and cognitive processes in varying degrees depending on their valence and intensity. The traditional view of decision making posits that the consumer is a rational decision maker who proceeds through a series of prescribed steps before finding an optimal decision solution. However, with the growing prominence on the role of affect, “hot” aspects of cognition in psychology, and neuroscience investigations, much of the traditional cognitive-dominated theories are being reexamined. A tourist decision-making framework is presented demonstrating the proposed theory and provides understanding to the influences that affect and cognition have on the decision-making process. After delineating these concepts, propositions are presented followed by the Discussion and Conclusions section that summarizes and discusses challenges associated with studying affect.