Fragmentation, Engel's Law, and Learning

This paper outlines the conditions under which trade is beneficial for a developing country's growth. A developing country suffers from two disadvantages: low income and a comparative disadvantage in the production of modern manufactured goods—goods which allow a high rate of human capital accumulation through learning by doing. Low income together with Engel's law imply that developing countries consume and produce very few modern goods in autarky and hence grow slowly. With international fragmentation of production, a developing country may find comparative advantage in the production of some stages of modern goods despite an absence of comparative advantage in the production of modern goods under “100% local content.” More resources can then be allocated to the modern goods sector leading to greater learning externalities and hence growth under free trade than in autarky.     

EXPRESSING INVENTORY CONTROL POLICY IN THE TURNOVER CURVE

Estimation of the inventory level for an entire class of items is a valuable time saver when control of inventories at the aggregate level, rather than the item level, is of interest. Inventory approximation by location in supply chain network configuration and evaluation of inventory control policy shifts, are two examples of application. In this article, various popular inventory policies are related to a general function known as an inventory turnover curve that expresses inventory levels from the combined demand of multiple items. By knowing some basic item characteristics of representative items in a product class, the type of inventory policy being used, and the current aggregate inventory level, an inventory turnover curve can be constructed. This resulting turnover curve can be used to estimate inventory levels within 4.6%, on the average, of theoretically predicted ones.     

Tinbergen in De Economist

Jan Tinbergen's scientific writings cover six main areas of research. His articles in De Economist represent these areas; in some cases the contributions to De Economist were of a pioneering nature (business cycles, economic models, economic integration); in others De Economist was the first or even single outlet for Tinbergen's work. This article provides an overview of these contributions. The wide scope of Tinbergen's areas of research goes together with a unity in approach, the characteristics of which are: policy relevance, quantification and measurement, balance in analysis and presentation, and learning from experience. Tinbergen's articles in De Economist bear witness to this approach which at the time also met with scepticism and resistance as this overview shows. According to Houthakker, Tinbergen's main contribution may be that, amidst the pleas of interest groups and the slogans of the laity, an attempt is made that the voice of the professional economic researcher be heard. Tinbergen's work still sets an agenda for both economic research and policy making.     

Economic development and Indigenous Australia: contestations over property,institutions and ideology*

Economic development for remote Indigenous communities cannot be understood unless the relative importance of customary activity, potentially enhanced by native title legal rights in resources, is recognised. The present article uses a three‐sector hybrid economy framework, rather than the usual two‐sector private (or market) and public (or state) model to more accurately depict the Indigenous economy. Examples are provided of the actual and potential significance of the customary sector of the hybrid economy. Focusing on the concepts of property and institutions, it is demonstrated that significant local, regional, and national benefits are generated by the Indigenous hybrid economy. A role is foreshadowed for resource economists and the New Institutional Economics in quantifying these benefits, including positive externalities, so that they might be more actively supported by the state.