Intra-Household Resource Allocation, Consumer Preferences and Commodity Tax Reforms: Australian Evidence

Empirical analysis of household expenditure behaviour has traditionally ignored the issue of resource allocation between household members, assuming that they have identical or unitary preferences. This paper relaxes that assumption, develops a household sharing rule and proposes intra-household demand systems that are able to identify differences in the preferences of members from conventional data. The resulting price and expenditure elasticities are used to demonstrate that collective demand models suggest different directions for commodity tax reforms to those implied by the traditional unitary model.     

Intertemporal Substitution and Terms-of-Trade Shocks

The paper examines the relationship between transitory terms‐of‐trade shocks and private saving. Using a model allowing for nonseparability between the consumption of tradables and nontradables, the paper estimates the intertemporal elasticity of substitution while accounting for the intratemporal elasticity of substitution between the consumption of tradables and nontradables. Empirical analysis of data for five industrial countries indicates that in response to transitory terms‐of‐trade shocks, intertemporal substitution of consumption and intratemporal substitution of consumption between tradables and nontradables both have large effects on private saving.     

Import Protection Bias

Rodrik (1995) notes that trade regimes tend to be biased towards import protection, while the standard political economy models either yield no prediction on the bias of the trade regime or predict, counterfactually, a bias towards the export sector. This constitutes an important shortcoming in the political economy of trade literature. In this paper, the Grossman and Helpman (1994 ) “Protection for Sale” model is extended by adding government expenditure. This expenditure may be financed via a combination of tariff revenue and a distorting wage tax. In addition to the government expenditure, export subsidies need to be financed either via tariff revenue or a distorting wage tax. With this addition, plausible values of the model's parameters yield import protection bias.     

Corporate self-greenewal: Strategic responses to environmentalism

The rise of environmentalism in the past decade has become a major transforming force in pollutive and hazard prone industries. Corporate environmental responsiveness is not simply a peripheral and one of the many ‘social’ or ‘ethical’ issues facing business. It is becoming a central concern for competitiveness, productivity, and profitability. It is creating strategic transformation of companies in a diverse range of industries such as, Autos, Chemicals, Oil, Fast Foods, Power Generation, Pharmaceuticals, etc. The process of environmentally directed self-renewal, called ‘greenewal’ here, affects all aspects of companies. It implies changes in products, production systems, waste management practices and internal systems. It seeks to make companies simultaneously more competitive and environmentally responsible. This paper describes the pressures of and responses to environmentalism in a selected set of industries. It examines the processes of greenewal that companies are undergoing. It identifies implications for strategic greening of firms.     

Demographic & related differences in ethical views among small businesses

This study examines the effects of demographic characteristics on ethical perceptions. While earlier research has produced conflicting results regarding the predictive power of these variables, significant and definite insights were obtained with proper controls. The following predictors of ethical attitudes are examined: age, gender, marital status, education, dependent children status, region of the country and years in business, while controlling for job status. A nation-wide random sample of employees was used in obtaining a response rate of fifty-three percent (total n of 423). Indices of aspects of business ethical attitudes were constructed using factor analysis. Linear multiple regression analysis indicated the significant predictive variables. Age was found to be a most-significant predictor. Older workers had stricter interpretations of ethical standards. Gender and region predicted attitudes about job-discrimination practices only, with women and persons from the Midwest most strongly opposed to the practice. All the other variables proved to be unreliable ethics predictors.Paul Serwinek is a research affiliated with Wayne State University. He has done extensive research in business management and consulting work in the field of insurance agency employee job satisfaction.SPSS PC Plus Computer Program used.     

Asymmetric Adjustment Costs, Asymmetric Pricing and Employment: Evidence from the UK

This paper uses an asymmetric multivariate model to investigate asymmetries in employment and pricing behaviour by firms. This generalises the approach of Granger and Lee (1989) and also exploits the cross equation restrictions on the equations for prices and employment implied by a restricted cost function—the dual to a Cobb‐Douglas production function. Our results suggest that both prices and employment respond asymmetrically to shocks to costs and demand.     

The Structure of Protection in Indonesia in 1989 1

Around the mid-1980s, Indonesia's protectionist regime supported an industrial structure in which industries were mainly oriented towards producing for the domestic market. Since then, trade policies have shifted to a more outward-looking strategy, stimulating the growth and diversification of non-oil manufactured exports. This paper attempts to quantify the nominal and effective rates of protection resulting from trade policies at the end of the 1980s. After an introduction in which the 1989 trade policies are discussed, estimates of nominal and effective rates of protection are presented. It is shown that though the level of protection has declined since 1987, it still varies widely across economic sectors. Furthermore, despite the more open trade strategy, the paper's findings show that the trade regime remains biased against exports. Finally, by examining some trade policy issues, the paper presents further ways of rationalising the structure of protection in Indonesia's industrial sector.