The effect of a currency union on trade: Lessons from the Irish experience

This paper studies the introduction of an exchange rate between Ireland and the UK in 1979 to shed light on the effects of a common currency on the composition of international trade. No evidence is found from time series or panel regressions that the change of exchange rate regime had a significant effect on Anglo-Irish trade. This finding is consistent with previous studies of currency unions between larger, developed countries but conflicts with findings based on more heterogeneous country groupings. The reasons for this discrepancy are discussed.     

Strategic restraint in contests

Economic policy is modelled as the outcome of a (political) game between two interest groups. The possible ex-post (realized) outcomes in the game correspond to the proposed policies. In the literature policy proposals are exogenous. We extend such games by allowing the endogenous determination of the proposed policies. In a first stage the groups decide which policy to lobby for and then, in a second stage, engage in a contest over the proposed policies. Our main result is that competition over endogenously determined policies induces strategic restraint that reduces polarization and, in turn, wasteful lobbying activities.     

Further participatory adaptation is required for community leaders to champion conservation agriculture in Africa

There is a recognized need for the participation of local communities in designing and implementing agricultural interventions for the sustainable intensification in smallholder systems. This study examines the perspectives of local community leaders towards the widely promoted, but not widely adopted, practice of Conservation Agriculture (CA) in African smallholder systems. Perceptions from 47 community leaders (both from traditional local authorities and farmer organizations) across six African countries are documented regarding how CA matches the wants, needs and capabilities of farmers in their communities. While community leaders generally perceived CA as potentially beneficial, they also indicated that CA is not currently perceived as feasible within their communities and hence has limited relevance. Three key themes were identified that limit both CA use and sustainable intensification more generally: [1] a perceived reluctance of farmers to engage with the community platform as part of a higher input, market-oriented production system; [2] informational constraints due to non-functional exchange mechanisms; and [3] a lack of local adaptation of CA underscored by the persistence of top-down, linear research and extension approaches. Through greater understanding of local perspectives, a clearer picture emerges of the need for greater participatory engagement and local adaptation if sustainable intensification of African smallholder agricultural systems is to be achieved.     

State lotteries and externalities to their participants

The degree of participation in state lotteries can either increase or decrease expected returns. It is theoretically possible for unfair bets to become more than fair as participation in lotteries changes. In addition, the purchase of every combination of numbers can be more than a fair bet and such a purchase may increase the expected return to other lottery players.     

The Economic Consequences of the Obama Reelection: How Stagnation Has Vanquished Growth

The stagnation of the American economy during the past decade is attributable to faulty policies at both the macro and micro level. The efforts to organize stimulus programs and manipulation tax rates create uncertainties that offset any supposed gains from Keynesian policies. At the same time, the failure to address major structural flaws in labor, real estate, free trade and positive rights have resulted in cumulative dislocations that require a shrinkage of government across the board to facilitate any reversal of economic fortune.     

Reviews

“THE POLL TAX” Flannery, Kate, 1987: More than Just a Poll Tax. Centre for Local Economic Strategies, £5.00. MacGregor, Susanne, 1988: The Poll Tax and the Enterprise Culture. Manchester: Centre for Local Economic Strategies, £3.95.

“ECONOMIC THEORY AND THE LOCAL ECONOMY” Smith, D., 1987: The Rise and Fall of Monetarism: The Theory and Politics of an Economic Experiment. Penguin, £3.95.

Holland, S., 1987: The Market Economy: From Micro to Mesoeconomics and The Global Economy: From Meso to Macroeconomics, Weidenfeld, £12.95 each.

Green, F. and Sutcliffe, B., 1987: The Profit System: The Economics of Capitalism. Penguin, £5.95.

“THE SERVICES REVOLUTION?” Rajan, A., 1987: Services: The Second Industrial Revolution? London: Butterworths, £27.50.

“ENVIRONMENT AND ECONOMY IN EUROPE” Joyce, F. E. and Schneider, G. (editors), 1988: Environment and Economic Development in the Regions of the European Community. Aldershot: Avebury/Gower, £18.50 hb.

“POLITICS OF PRIVATISATION” Ascher, K., 1987: The Politics of Privatisation: Contracting Out Public Services. London: Macmillan Education Ltd. £30.00 cloth, £8.95 paper.

“RECRUITMENT AND TRAINING POLICY” Davies, T. and Mason, C., 1986: Shutting out the Inner City Worker. University of Bristol, School for Advanced Urban Studies, £4.30.

Chapman, P. G. and Tooze, M. J., 1987: The Youth Training Scheme in the United Kingdom. Avebury: Gower Publishing Company, £22.50.

“JOB GENERATION RESEARCH” Storey, D. J. and Johnson, S., 1987: Job Generation and Labour Market Change. London: Macmillan.