Foreign Transfers and Real Exchange Rate Adjustments in a Financially Constrained Dependent Economy

This paper investigates the role of the real exchange rate in determining the effects of foreign transfers. If capital is perfectly mobile between sectors, a pure transfer has no long-run impact on the real exchange rate. A decline in the traded sector occurs because the transfer, being denominated in traded output, substitutes for exports in financing imports. While a pure transfer causes short-run real exchange appreciation, this response is temporary and negligibly small. Transfers allocated to productivity enhancement do generate permanent real exchange rate adjustments in response to the sectoral reallocation of productive factors. The analysis, which employs extensive numerical simulations, emphasizes the tradeoffs between real exchange adjustments, long-run capital accumulation, and economic welfare, associated with alternative forms of transfers.

An analysis of the location decision of young primary care physicians

The major objective of this study is to determine the factors influencing the first-time location decision of young primary care physicians. Employing a county-based data set that includes a host of health industry characteristics, demographic attributes, and economic factors, this study explores the factors that come into play when a young primary care physician decides where to practice medicine. In the demand side of the market, it was found that young physicians have an affinity for locating in moderately populated areas. Supply factors also come into play as young physicians appear most willing to locate in counties free of crime, poverty, and excessive taxes and where there is a strong academic presence. A moderate cost of living was also important.     

Imagined Peasants – Production and Markets in Rural Asia

Books reviewed in this article:
R.E.(Robert Edward) Elson, The end of the peasantry in Southeast Asia: a social and economic history of peasant livelihood, 1800–1900s
Yiping Huang, Agricultural Reform in China: Getting Institutions Right. Trade and Development Series     

Differential Tariffs and Income Inequality in the United States: Some Evidence from the States

Open Economies Review - This paper explores the macroeconomic and distributional consequences of consumption tariffs and materials tariffs. It highlights the contrasting effects of consumption and...     

Speak no evil: Known defects in the FTC's used car rule

In 1981, the Federal Trade Commission issued a trade regulation rule on the sale of used cars. This rule required dealers to disclose known defects to prospective purchasers.Under the law at that time, Congress could veto such a rule. It did so. The veto, however, was challenged in court and the United States Supreme Court ruled the veto unconstitutional thus reinstating the rule.Before the rule could take effect however, the FTC (whose membership had changed in the meantime) decided to reconsider whether the rule should contain known defects disclosure. Subsequently, the Used Car Rule was reissued (effective May 9, 1985) deleting this important consumer protection.This article analyzes and criticizes the rationale for the deletion of the known defects disclosure requirement.

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Sag nichts Böses: Die Behandlung bekannter Mängel in den behördlichen Richtlinien zum Verkauf von Gebrauchtwagen in den USA

Zusammenfassung Die Federal Trade Commission (FTC), die amerikanische Handels- und Wettbewerbsbehörde, erließ 1981 eine Richtlinie über den Gebrauchtwagenverkauf. Nach dieser Richtlinie waren Gebrauchtwagenhändler verpflichtet, bekannte Mängel der Wagen gegenüber Kaufinteressenten offenzulegen. Nach damaligem Recht konnte der Kongreß gegen diese Richtlinie sein Veto einlegen, was er auch tat. Dieses Veto wiederum wurde vor Gericht angefochten, woraufhin der oberste amerikanische Gerichtshof entschied, daß das Veto verfassungswidrig sei, und die ursprüngliche Richtlinie wieder in Kraft setzte.Bevor diese Richtlinie jedoch rechtskräftig werden konnte, beschloß die FTC (deren personelle Zusammensetzung sich inzwischen geändert hat), noch einmal zu überdenken, ob die Richtlinie endgültig die Bestimmung zur Offenlegung bekannter Mängel enthalten solle. Schließlich wurde die Richtlinie im Mai des Jahres 1985 ohne diese wichtige Vorschrift zum Schutz des Verbrauchers wieder in Kraft gesetzt.Der Beitrag analysiert und kritisiert den Hintergrund der Entscheidung, die Vorschrift zur Offenlegung bekannter Fahrzeugmängel entfallen zu lassen.

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Stephen J. Nicks is Assistant Attorney General in the Department of Justice, State of Wisconsin, P.O. Box 7857, Madison, WI 53707, USA.     

Marketing ethics and the techniques of neutralization

The need for conceptual work in marketing ethics is addressed by examining the five techniques of neutralization as a means for partially explaining unethical behaviors by marketing practitioners. These techniques are often used by individuals to lessen the possible impact of norm-violating behaviors upon their self-concept and their social relationships. Borrowed from the social disorganization and deviance literature, the five techniques of neutralization are: (1) denial of responsibility, (2) denial of injury, (3) denial of victim, (4) condemning the condemners and (5) appeal to higher loyalties. Examples of marketing professionals using each of the five techniques are given, and a conceptual model linking the techniques of neutralization with unethical behavior is presented. Finally, relevant research questions are offered for consideration.Scott J. Vitell is Assistant Professor of Marketing at The University of Mississippi. His most important publications include A General Theory of Marketing Ethics (1986) (with Shelby D. Hunt) and Marketing's Contribution to Economic Development: A Look at the Last 30 Years (1985) (with Van R. Wood). Stephen J. Grove is Assistant Professor of Marketing at Clemson University. His articles have appeared in the Journal of Health Care Marketing, the International Journal of Sport Psychology, the Journal of Sport Behavior, the Bulletin of the Association for Business Communication, Simulation and Games, and several national and regional conference proceedings.     

The historical roots of India’s service-led development: A sectoral analysis of Anglo-Indian productivity differences, 1870-2000

India fell further behind the UK in terms of GDP per capita and overall labour productivity between the 1870s and the 1970s, but has been catching-up since. This paper offers a sectoral analysis of these trends. Comparative India/UK labour productivity in agriculture has declined continuously, and agriculture still accounts for around two-thirds of employment in India. Agriculture thus played a key role in India’s falling behind and has subsequently slowed down the process of catching up. Although there have been substantial fluctuations in comparative India/UK labour productivity in industry, this sector has exhibited no long run trend. The only sector to exhibit an upward trend in comparative India/UK labour productivity is services. India’s recent emergence as a dynamic service-led economy thus appears to have long historical roots. Although India has been characterised by relatively low levels of physical and human capital formation overall, its education provision has historically been unusually skewed towards secondary and tertiary levels. This has provided a limited supply of high productivity workers who have been employed predominantly in services.