Economic and fiscal impact analysis of energy development projects: Coal liquefaction in the Illinois Basin

This paper addresses the problem of anticipating the local economic, demographic and fiscal impacts occurring from the siting of coal liquefaction facilities in the Illinois Basin. This region (primarily western Kentucky) will contain some of the most ambitious liquefaction projects in the U.S., yet no comprehensive method for the estimation of these impacts currently exists. It is suggested that the solution might lie with the development of an integrated econometric impact evaluation model. The potential economic, demographic and fiscal impacts of these projects are also described, preliminary analyses using existing economic impact assessment methods are presented, and certain policy analysis applications are highlighted.     

The missing link: a political hot potato

The Maitland Commission's report, The Missing Link, contains a cascade of recommendations - political, financial, institutional and operational. But, by setting a timetable for implementation of its recommendations before the next ITU Plenipotentiary the Commission has ensured that The Missing Link will be a political hot potato for the rest of the decade.     

Financial Architecture and Economic Performance: International Evidence

The paper examines the relation between the architecture of an economy's financial system—its degree of market orientation—and economic performance in the real sector. I find that while market-based systems outperform bank-based systems among countries with developed financial sectors, bank-based systems fare better among countries with underdeveloped financial sectors. Countries dominated by small firms grow faster in bank-based systems and those dominated by larger firms in market-based systems. The findings suggest that recent trends in financial development policies that indiscriminately prescribe market-oriented financial-system architecture to emerging and transition economies might be misguided because suitable financial architecture, in and of itself, could be a source of value. Journal of Economic Literature Classification Numbers: G1, G21, O1, 04.     

Protecting employee safety rights: OSHA or arbitration?

This paper analyzes the protection of employees against employer retatliation for seeking a safe and healthy workplace. It discusses the exercise of rights guaranteed by the Occupational Safety and Health Act (OSHA) of 1970 and compares the legal protection of Section 11(c) of that Act with the grievance arbitration mechanism found in most union contracts. It also considers the importance of union representation in the ability and protection of employees seeking to exercise their OSHA rights. Administrative and legislative recommendations are made to improve the OSHA procedures, and questions are raised regarding adapting arbitration procedures to the OSHA mechanism.     

How quantitative is education?

The quantitative aspects of two general subjects in education are examined and discussed. They are mass or standardized testing and teaching ability. Questions of whether each of these subjects is quantitative in some sense and the consequences of the findings are discussed and explored. On the basis of the exposition presented in the paper, the conclusion is reached that: (a) the quantitative aspects of testing are such that the consequences of testing can be evaluated; (b) one is forced to be much less sanguine about the possibility of listing the consequences associated with an evaluation of teaching ability.     

Corporate cash holdings,uncertainty avoidance,and the multinationality of firms

We examine the relationship between uncertainty avoidance, multinationality and firm cash holdings. We develop several hypotheses from corporate finance and multinational firm theory, positing that cultural factors as well firm multinationality influence corporate cash holdings. In particular, firms in countries with high uncertainty avoidance hold more cash as a way to hedge against undesired states of nature. At the same time, firm multinationality moderates the effects culture has on the firm's holdings of liquid assets. Based on a large panel of firms in fifty countries, we present evidence consistent with these hypotheses. Firms in countries with high levels of uncertainty avoidance tend to hold more cash. Against commonly held views in cash management, the degree of multinationality of the firm is positively correlated with holdings of cash. At the same time, the effect of national culture on firm's cash holdings is lower for multinationals. These results are economically significant.