The 'New Class': Analysis of the Concept, the Hypothesis and the Idea as a Research Tool

A bstract . The concept of the 'New Class' often is invoked to explain not only why the capitalist countries of the West are drifting leftwards into socialism but also why socialist nations of East Europe have totalitarian governments, tolerate gross economic inefficiencies, and exploit their workers. Certain critical issues underlying such an approach that are relevant to political economists , especially those interested in the changing boundary between the public and private sectors of the economy , are examined. The concept is found to rely on hypotheses which are not (easily) testable and the argument for its existence to be based on premises that are dubious. Special attention is given to hypotheses in public finance employing the concept in an attempt to explain increasing public expenditures ; these are found wanting.     

Culture and Economic Systems

A bstract .   Applying a cluster analysis to the results of the World Value Study, this article shows that the OECD nations have five distinct patterns of cultural characteristics. Moreover, these five cultural systems are almost the same as a classification of economic systems that have been derived from a cluster analysis of their economic institutions. A comparison of the cultural characteristics of East and West Germany suggests that the economic system has relatively little influence on the cultural systems. Instead, in a democracy, where the economic system is not imposed by force, the cultural characteristics are more likely to determine the economic system, rather than the reverse.     

Medicines transparency at the European Medicines Agency (EMA) in the new information age: the perspectives of patients

The concept of transparency has gained widespread appeal in the European pharmaceutical domain, not least at the European Medicines Agency (EMA). Agency policies have two main objectives: (1) to enable the reuse of data (e.g. clinical study reports) and (2) to empower patients to directly and indirectly make more informed decisions on medicines. Past research has almost exclusively focused on the perspectives of external researchers intending to reanalyse data made publically available. Few studies, however, have explored what can be learnt from the perspectives of other actors (e.g. health care professionals, patients, the regulators themselves, industry and others). This empirical study explores the EMA’s transparency policies from the perspectives of patients. After presenting the results of a survey (N = 1010) with a sample of individuals diagnosed with five specific medical conditions (HIV/AIDS, multiple sclerosis, rheumatoid arthritis, osteoporosis and idiopathic pulmonary fibrosis) from four EU countries (Germany, Spain, France and the UK), the authors argue that EMA’s transparency policies do not adequately address the real-world complexities of communicating with patients. In turn, the paper concludes that the perspective of patients provides an essential contribution to understanding the full net effects (positive, negative and/or limited) of EMA’s transparency policies.     

Nonparametric tests of collectively rational consumption behavior: An integer programming procedure

We present an IP-based nonparametric (revealed preference) testing procedure for rational consumption behavior in terms of a general collective model, which includes consumption externalities and public consumption. An empirical application to data drawn from the Russia Longitudinal Monitoring Survey (RLMS) demonstrates the practical usefulness of the procedure. Finally, we present extensions of the testing procedure to evaluate the goodness-of-fit (accounting for optimization error as well as measurement error) of the collective model subject to testing.     

SOCIAL CONFLICT,GROWTH AND FACTOR SHARES

Standard growth theory is based on atomistic agents with no strategic interactions among them. In contrast, we model growth as resulting from a one‐off, strategic game between ‘workers’ and owners of capital (‘capitalists’) on factor shares, in an otherwise standard ‘AK’ growth model. The resulting distribution of income between factors further determines the marginal revenue product of capital and the rate of growth. We analyse the properties of four equilibria: competitive, Stackelberg equilibrium, a hybrid non‐cooperative regime and cooperative, in terms of labour shares, growth and welfare. Our model thus endogenizes key aspects of the ‘social contract’.     

Monetary policy flexibility,risk management,and financial disruptions

This paper argues that the monetary policy that is appropriate during an episode of financial market disruption is likely to be quite different than in times of normal market functioning. When financial markets experience a significant disruption, a systematic approach to risk management requires policymakers to be preemptive in responding to the macroeconomic implications of incoming financial market information, and decisive actions may be required to reduce the likelihood of an adverse feedback loop. The central bank also needs to exhibit flexibility—that is, less inertia and gradualism than would otherwise be typical—not only in moving decisively to reduce downside risks arising from a financial market disruption, but also in being prepared to take back some of that insurance in response to a recovery in financial markets or an upward shift in inflation risks.     

Markups in the Euro area and the US over the period 1981–2004: a comparison of 50 sectors

This article provides estimates of price–marginal cost ratios or mark-ups for 50 sectors in eight Euro area countries and the US over the period 1981–2004. The estimates are obtained applying the methodology developed by Roger (J Polit Econ 103:316–330, 1995) on the EU KLEMS March 2007 database. Five stylized facts are derived. First, perfect competition can be rejected for almost all sectors in all countries; markup ratios are generally larger than 1. Second, average markups are heterogeneous across countries. Third, markups are heterogeneous across sectors, with services having higher markups on average than manufacturing. Fourth, services sectors generally have higher markups in the euro area than the US, whereas the pattern for manufacturing is the reverse. Fifth, there is no evidence that there is a broad range change in markups from the 1980s to the 1990s.     

On the computation of stable sets and strictly perfect equilibria

Summary. In this paper a procedure is described that computes for a given bimatrix game all stable sets in the sense of Kohlberg and Mertens (1986). Further the procedure is refined to find the strictly perfect equilibria (if any) of such a game. Recieved: December 29, 1999; revised version: February 17, 2000     

A study of e‐retailing management: analysing the expectations and perceptions of Spanish consumers

This article analyses various elements that influence the purchasing behaviour of online consumers. These elements include the aesthetic aspects of a web site and the interactive processes that take place at the time of purchase. The study analyses the expectations and perceptions of a sample of Spanish online customers. On the basis of these attitudes, the sample of respondents is segmented. In addition, the main factors that determine online service satisfaction are identified. The segments of respondents are then positioned with respect to these identified factors in online service quality. The analysis thus allows differentiation of both customers and service quality. The paper concludes with recommendations for online retailers who wish to operate a successful ‘virtual’ retail outlet.