The impact of coffee price changes on rural households in Uganda

Employing household survey data covering the periods 1992–1993, 1995–1996, and 1999–2000, this article shows for the case of Uganda that a coffee market liberalization followed by a price boom was associated with substantial reductions in poverty, which could even be sustained when prices went down again. Coffee is not planted by the richest farmers and the gains from higher coffee prices accrued to poorer and richer coffee farmers alike. Nor were poorer farmers hurt disproportionately when prices fell. In addition, we find strong spillovers from coffee production to other agriculture, which tends to favor the poor, and to nonagricultural activities. These multiplier effects are concentrated in coffee regions. In an economic environment characterized by a booming agricultural sector, coffee farmers were able to accommodate the negative price shock, in particular through agricultural diversification. General agricultural growth also cushioned possible negative multiplier effects in coffee regions. Overall, the case of coffee in Uganda thus lends support to the view that agricultural trade liberalization is beneficial for the poor.     

A Public Sector Marketing Model to Measure the Social and Environmental Values of Public Strategies: An Empirical Study on a Green Public Service

This article develops a public sector marketing model to measure the social and environmental values of public strategies. Applying partial least squares path modeling, the authors empirically test the model by conducting a quantitative survey (N = 603) among users of a green public service in the form of a public bike-sharing system. The findings reveal that users simultaneously perceive public outcomes on the social value and environmental value dimensions. The effect estimated on the perceived social value dimension of the green public service was slightly stronger than the effect on the environmental value dimension. Thus, users primarily perceive self-centered values, before considering values generated for the environment. The findings also show that engaging citizens now in the actual usage of green public services can foster green consumption intentions in the future.     

Harmonisation of Old-age Security Within the European Union

Not sufficiently harmonised national pension systems withinthe European Union distort the allocation of labour and endangerredistributive activities. This paper identifies the most decentralisedlevel of harmonisation which guarantees efficient allocationand enables redistribution. For this, we build on theoreticalresults from the literature to evaluate the realised distributionof the legal power between the European Union and the MemberStates and the resulting level of harmonisation. We find thatharmonisation is sub-optimally low. Binding rules guaranteedby the European Union are needed implying that the Member Stateshave to concede more fundamental responsibilities to the EuropeanUnion. (JEL F22, H55, K33, N34)     

National and international policies for tropical rain forest conservation—A quantitative analysis for Cameroon

This paper provides a numerical general equilibrium assessment of policies to reduce tropical deforestation in Cameroon. Market failure—mainly in the form of national and international externalities—and policy failures—such as highly distorted product markets—are identified as major sources of overexploitation. The ecological effects of deforestation control are shown to depend crucially upon its impact on land use patterns whereas its efficiency effects hinge on the manner in which a specified set-aside target is achieved. If the international community wants to ensure a higher level of protection of these forests, and to do so within a market-based system, the provision of conditional financial resources is neceassary.     

What happens after working part time? Integration, maintenance or exclusionary transitions in Britain and western Germany

We address the issues raised by Günther Schmid's proposalto develop transitional labour markets, by examining theoreticalexplanations and empirical evidence affecting transitions throughpart-time work. By analysing British and German Household Paneldata, we outline the changing characteristics of part-time employmentand employees in the early 1990s. We show that only a tiny numberof women were able to use part-time work as a bridge back intoa full-time job. A substantial proportion ends up dropping outof employment, especially in Germany. Having previous employmentexperience is more likely to hinder exclusionary transitionpatterns, whereas the presence of more than one child, especiallyin Germany, is associated with dropping out. We conclude byassessing the implication of these findings for both policyreform and theoretical developments.     

The European Commission’s new NAIRU: Does it deliver?

The non-accelerating inflation rate of unemployment (NAIRU) is a key component of potential output and as such critically affects output gap estimates. In May 2014, the European Commission changed its specification of the NAIRU for several countries and lowered its NAIRU estimates – in the case of Spain from 26.6% to 20.7% for 2015. To test the dependence of the new NAIRU on unemployment versus structural factors, we run counterfactual simulations applying 1SD shocks to actual unemployment and to the structural variable – real unit labour costs. We find that the NAIRU in its new specification is still largely determined by actual unemployment. This calls in question both the interpretation of potential output estimates as barriers to more vigorous inflation-stable economic activity and the accuracy of structural deficit figures.     

A political-economy perspective on social expenditures: corruption and in-kind versus cash transfers

This paper presents a novel political-economy perspective on the composition of social expenditures. We take into account the possibility that institutions are weak, i.e. there is corruption, and analyze how this affects the government’s choice between cash and in-kind transfers. Our results show that the share of in-kind transfers (e.g. basic health care, public housing or food stamps), whose appropriation by corrupt politicians is more easily observed than in the case of cash transfers, increases with corruption. This positive relationship exists, however, only in highly democratic countries. We argue that voters use their political influence in democratic countries to ensure that a higher share of transfers is provided in kind thereby shielding transfers from appropriation by corrupt politicians.