Is Debt Relief Efficient?

When developing countries announce debt relief agreements under the Brady Plan, their stock markets appreciate by an average of 60% in real dollar terms—a $42 billion increase in shareholder value. There is no significant stock market increase for a control group of countries that do not sign Brady agreements. The stock market appreciations successfully forecast higher future resource transfers, investment, and growth. Since the market capitalization of U.S. commercial banks with developing country loan exposure also rises—by $13 billion—the results suggest that both borrower and lenders can benefit from debt relief when the borrower suffers from debt overhang.     

Consumer Pesticide Concerns: A 1965 and 1984 Comparison

Concern with pesticide use is a major issue for consumers. The present paper examines changes over time in consumer attitudes toward pesticide use. The study also examines the relationship between socioeconomic factors and consumer concern with pesticide use. Findings suggest that consumers were more concerned with pesticide issues in 1984 than in 1965. Concern has increased in terms of the impact of pesticides on wildlife, on farmers, and on individual health. Concern about pesticides is widespread and is not centered in any particular population group.     

Two Views of Social Justice: A Catholic/Georgist Dialogue

Sixteen scholars have come together in this issue to examine eight social‐justice themes from the perspectives of Catholic Social Thought and the philosophy of Henry George. The themes they address are natural law, human nature, the nature of work, the nineteenth‐century papal encyclical Rerum novarum, causes of war, immigration, development, and wealth, and neighborhood revitalization. While they sometimes wrangle with each other, their common aspiration is the same as their nineteenth‐century predecessors: to find solutions to the human suffering caused by injustice.     

The Impact of the Rhode Island Catastrophic Health Insurance Plan

Under Rhode Island's statewide Catastrophic Health Insurance Plan (CHIP) in effect since January, 1975, and similar to the Long-Ribicoff National Health Insurance Proposal, Rhode Island pays catastrophic medical expenses over and above a “personal resource payment” (out-of-pocket expenses) that varies with income and amount and type of health insurance coverage. Those with qualified plans (plans providing more services) pay less out-of-pocket. Benefits accrue mainly to some middle income households. CHIP has increased demand for and prices for health insurance with qualifying coverage, and utilization of medical care. Similar impacts on a larger scale may be expected from any national health insurance program.     

ABATEMENT COST HETEROGENEITY IN PHASE I ELECTRIC UTILITIES

The market-based instruments embodied in the Acid Rain Program have been instrumental in the reduction of SO₂ and NO _x emissions from electric utilities. Economic theory suggests that tradable pollution permit systems encourage polluters to reallocate pollution burdens to take advantage of any differences in marginal abatement costs. Such reallocations improve the efficiency of pollution reduction. This article evaluates the effectiveness of the first phase of the Acid Rain Program in achieving increased homogeneity of marginal abatement costs using an output distance function approach. The results indicate that plants have been successful in adapting to this more flexible regulatory framework.     

Let the G.L.C. Charge or Wind Up

How do we know if local government is efficient if it does not compete or sell its services? Rodney Lord draws on American experience to show the advantages of competition between local governments and between local government and private services.