De produktiestructuur van Nederland in de periode 1950-1966

Summary In 1961 Arrow, Chenery, Minhas and Solow presented their C.E.S. production function, which was based on the relation between the real wage rate and the average labour productivity. They argued that, if the aggregate production function is continuous, lineair and homogeneous, then, with perfect competition and profit maximalization prevailing, the relation between the real wage rate and the average labour productivity is reflection of the production structure. This relation can, therefore, be used for specifying the production structure.In the present paper, the same line of thought is applied to the Dutch economy. Several hypotheses on the relation between wage rate and average labour productivity are tested. Statistically, it turns out that in the Dutch economy the elasticity of substitution between capital and labour is not a constant: it declines with increasing capital-labour ratio. Two statistically acceptable production equations that have this feature are presented.The efficiency parameter appearing as an integration constant in both production equations shows a decline: with labour productivity constant, the capital-labour ratio is falling over time. This means that the relation between labour productivity and capital-labour ratio shifts over time. Another outcome of this study is that technical progress is capitalaugmenting and that it brings about 50 percent of the growth in the labour productivity.De schrijvers zijn dank verschuldigd aan Prof. Dr. F. J. de Jong voor zijn stimulerende kritiek en aan de heren J. G. Althuis, F. J. van Bolhuis, J. D. Flikweert, H. Jager en B. S. Wilpstra, assistenten bij de afdeling Algemene Economie van de Economische Faculteit der Rijksuniversiteit te Groningen, voor hun bereidwillige medewerking aan dit onderzoek.     

Revisiting managerial perspectives on dividend policy

We survey managers of Nasdaq firms that consistently pay cash dividends to determine their views about dividend policy, the relationship between dividend policy and value, and four common explanations for paying dividends. The evidence shows that managers stress the importance of maintaining dividend continuity and widely agree that changes in dividends affect firm value. Managers give the strongest support to a signaling explanation for paying dividends, weak to little support for the tax-preference and agency cost explanations, and no support to the bird-in-the-hand explanation. The study provides new evidence about how managers view dividend life cycles and residual dividend policy. The authors would like to thank two anonymous referees for helpful comments and suggestions, and Maheshan Fernando and Sumeet Chawla for providing research assistance.     

NATIONAL PRODUCT AT CONSTANT PRICES IN THE FEDERAL REPUBLIC OF GERMANY

With few exceptions, only cormmodity flows and values which can be determined by means of commodity flows (flows of goods and services) are calculated in constant prices in the official national accounts of the Federal Republic of Germany. Figures an the industrial origin and the final use of the national product are published, the former according to thirty industries, the latter according to the major types of uses of which in particular private consumption expenditure has been further analysed. The computations at constant prices are based on market prices and not on factor costs. It is only on this basis that a uniform valuation of the production and the expenditure side can be made since the turnover tax, which is the most important indirect tax, is contained in the elements of final demand in varying shares and cannot be eliminated (the tax is part of the price and has cumulative effect). The computation at constant prices presupposes a breakdown of the values in current prices according to quantities and prices. This raises a number of problems, e.g. because seller and buyer may consider differing aspects-production costs, technical attributes, etc., on the one hand, and use etc., on the other hand. In part there exist only vague ideas, or no ideas at all, as to what is to be considered-from a theoretical point of view-as quantity and price. In other cases the two values can only with great difficulties, if at all, be quantified, or there exists no market price and only the production costs are available. The author deals in greater detail with differences in quality and new commodities, the determination and treatment of quantities and prices for services, in particular for trade services (services attached to goods), the computation of government services at constant prices considering the development of productivity in public service, the determination of the values calculated as balances, above all the treatment of changes in the terms of trade for net exports of goods and services, the computation of the contributions of industries to the gross domestic product and, finally, the reconciliation of the production and the expenditure side. In a third section the author deals with index formulae and the base year. In the majority of cases values are deflated; partly, however, they are currently adjusted by means of volume and quantity data. On the production side the two methods are in part combined. In a concluding section a survey is provided of the computation methods used in the Federal Republic of Germany and on the available material for the computations. Mention is made of depreciation at constant prices.     

Industry aspects of takeovers and divestitures: Evidence from the UK

This paper examines takeover and divestiture activity at the industry level for the population of UK firms over the period 1986–2000. Consistent with US research, takeovers in the UK cluster both across industries and over time. The evidence for divestitures indicates clustering across industries only. The paper further investigates whether broad and specific industry shocks (e.g., growth, free cash flow, concentration, deregulation, foreign competition, technology, stock market performance) explain takeover and divestiture clustering at the industry level. The results suggest that broad shocks increase (decrease) the likelihood of takeovers (divestitures), although not significantly for takeovers. Specific industry shocks that increase the likelihood of takeover activity include low growth, the threat of foreign competition and high stock market performance. For divestitures, high industry concentration and deregulation increase activity. Little evidence is found for deregulation as a significant factor in explaining takeover activity.     

Solving the Misesian migration conundrum

This paper reviews Ludwig Von Mises’ concerns surrounding unrestricted immigration and relates them to the current debate surrounding immigrants’ impact on destination countries’ institutions. It then outlines a policy of generally unrestricted immigration with selective restrictions that addresses Mises’ concerns and concerns about destination country institutions, while still achieving the majority of the economic gains that unrestricted immigration is forecast to achieve.

     

Cultural Baggage: Do Immigrants Import Corruption?

Do immigrants undermine culture in a way that destroys productivity in destination countries? Some scholars have argued that because immigrants come from countries with dysfunctional social capital—norms and institutions—they will import it and pollute the social capital in destination countries. One potential channel through which this could occur is corruption. We examine stocks and flows of immigrants over a 20‐year time period to see if corruption increased in destination countries. We generally find that immigration is not associated with increases in corruption. Additionally, we find that immigration tends to decrease corruption in destination countries with low levels of corruption or high levels of economic freedom.     

The financial health of voluntary hospitals in interwar Britain

This article re–evaluates the gravity of the financial problems facing British voluntary hospitals in the interwar period. A relational database of statistics on hospital provision, finance (at both current and constant prices), and activity is used to derive consistent sets of hospitals for reporting purposes. The article presents novel analyses of the extent and pattern of hospital surpluses and deficits; of the capital accounts of selected individual hospitals; of trends in hospital expenditure; of the diversification of hospital income, emphasizing the declining importance of traditional philanthropy; and of the effect of these changes on hospital provision and utilization.