Convergence in a Two-Sector Nonscale Growth Model

Much of the convergence debate has focused solely on output. Recent empirical evidence suggests that crucial inputs, such as technology and capital, may exhibit markedly distinct convergence patterns. We examine the convergence characteristics of a two-sector nonscale model of growth that features population growth and endogenous technology. The model replicates key economic ratios and speeds of convergence with relative ease. Most important, however, is that capital and technology differ strikingly in their convergence paths and speeds. The nonconstancy of the convergence rates and the nonproportionality of the endogenous variables during transition suggests further refinements for the empirical tests of convergence.     

Teachers' beliefs about using a professional development plan

Professional development plans (PDPs) have recently been introduced in Dutch schools to support teachers' professional development. However, teachers' beliefs regarding the use of PDPs have not been systematically researched, whereas research on the use of PDPs indicates that the implementation is not always successful and depends on how use is perceived by users. Some teachers may doubt the usefulness and purpose of a PDP, and this might influence their reactions to its introduction. Using Fishbein and Ajzen's theory of planned behaviour, the current study explored teachers' characteristics (such as age and years of experience in education) and their beliefs about intention to use a PDP. Clusters of teachers with similar characteristics and beliefs were identified to permit the design of interventions specific to each cluster. Semi‐structured interviews were conducted to reveal these beliefs and characteristics for a sample of 41 teachers working in schools where using a PDP was mandatory. The results showed that most teachers had a positive attitude towards using a PDP. However, because using a PDP was mandatory, they felt pressured to produce one. Moreover, it was not a priority. This was because of their high workload. The present study contributes to the literature by adding knowledge of teachers' beliefs about the use of PDPs. This knowledge may help the PDP to become a more effective device in promoting teachers' professional development.     

Saving and Investing Over the Life Cycle and the Role of Collective Pension Funds

Summary This paper surveys the academic literature on optimal saving and investment over an individual’s life cycle. We start out with a simple benchmark model with separable and smooth preferences, one aggregate risk factor and riskless wage income. Within this simple setting, optimal saving and investment behavior are explored from the perspective of individuals. Subsequently, we investigate various constraints to optimal individual decision making. We discuss how collective pension schemes may help to relieve some of the market incompleteness that arises from these constraints while at the same time introducing new types of constraints. Finally, various extensions to the benchmark setting are analyzed: a more elaborate modelling of human capital, additional risk factors, and other types of preferences. We thank Peter Kooreman for helpful comments on an earlier version and Roel Mehlkopf for research assistance.     

Reconstructing growth theory: A survey

Summary Recent developments in the theory of economic growth aim at endogenising long-run growth. The paper discusses models in which technological change arises as a by-product of certain economic activities as well as models where some economic actions are explicity aimed at technological improvements. In addition, separate sections are devoted to the specific reconstruction of growth theory by M. Scott and models explaining stages of economic development. For expositional purposes the algebra is kept to a minimum. The focus is on theoretical models for a closed economy. Empirical work is only mentioned in passing.We are indebted to S. Kuipers, F. van der Ploeg and A. van Schaik for useful comments on an earlier version.     

Labour Intensification, Work Injuries and the Measurement of Percentage Utilization of Labour (PUL)

Labour intensification has often been assumed to be related to industrial safety, but surprisingly different views of this relationship have been held and systematic enquiry is lacking. A measure called the percentage utilization of labour (PUL) claims to monitor the intensity of labour in British manufacturing and therefore potentially affords the opportunity for a much more systematic investigation into the effects of labour intensity on industrial safety than has ever been possible before. This paper introduces the PUL measure and indicates why it might be thought particularly likely to register an increase in the 1980s. It then examines variation in PUL and in industrial injury rates in British manufacturing, both in the early part of the 1980s and over a longer period, in order to assess whether changes in PUL have tended to be associated with changes in safety. No consistent relationship is found. The evidence presented is reviewed, and the relationship between industrial injury rates, intensification of labour and the adequacy of the PUL measure for safety research is reconsidered.     

Equally Weighted Portfolios of Randomly Selected Stocks and the Individual Investor

The article contrasts 500 randomly formed equally weighted portfolios (1/N) to 221 actively managed stock funds, individual stocks, and the IBrX-50 index, representing indexed stock funds, considering transaction costs. The sample are the 50 stocks in IBrX-50 index in January 2007 throughout 60 months. Investors are likely to achieve greater returns and return-to-risk ratios with a randomly formed 1/N portfolio than with a stock fund, particularly those targeting retail investors, or one of the 50 stocks also randomly drawn. These portfolios would also outperform the IBrX-50. Robustness tests with variations in size and frequency of rebalancing do not change conclusions.     

Beyond “Pink It and Shrink It” Perceived Product Gender,Aesthetics, and Product Evaluation

Marketing research on product personality suggests that products possess gender; however, the process by which a product becomes masculine or feminine is unknown. This research identifies product aesthetics as a source of product masculinity and femininity and investigates the influence of product gender created by aesthetics on consumer behavior. Building on prior work on anthropomorphism and evolutionary psychology (EP), the authors broadly hypothesize that specific physical characteristics identified as representing masculinity and femininity—and thus considered attractive in the mate selection process—will have a similar effect on products. The first study identifies the impact of the aesthetic dimensions of form (proportion, shape, and lines), color (tones, contrast, and reflection), and material (texture, surface, and weight) on defining a product's gender. The second study shows that products that are strongly gendered, particularly those that are strong in both the masculine and feminine dimensions, result in positive affective and behavioral responses. Thus, this research identifies product aesthetics as a significant source of product gender while highlighting the theoretical contribution of EP to consumer behavior. Managerial implications for product design are then discussed, offering guidelines for creating strongly gendered products.     

Innovation Performance and Innovation Policy: the Case of the Netherlands

Recent productivity growth has been sluggish in the Netherlands. Baumol suggests that future productivity performance might be hampered by inadequate arrangements and institutions between the four sectors that drive innovation and growth: large firms, small firms, the universities and the government. In this paper we present the facts and figures of innovation and growth performance in the Netherlands. We also discuss Dutch innovation policies. While our findings show that the Netherlands still ranks highly in terms of actual levels of productivity and innovation, the developments in both areas are reason for concern. A structural reform of the industry-science interface in the Netherlands could lead to an improvement in the situation for the Netherlands in the medium term.JEL classification: E61, O10, O30