Large-scale mortality shocks and the Great Irish Famine 1845–1852

This paper considers the consequences of a large scale mortality shock arising from a famine or epidemic for long run economic and demographic development. The Great Irish Famine of 1845–1852 is taken as a case-study and is incorporated as an exogenous mortality shock into the type of long-run unified growth theory pioneered by Galor and Weil (1999, 2000), and modelled by Lagerlöf (2003a,b) among others. Through calibration, the impact of such a mortality shock occurring on the cusp of a country's transition from a Malthusian to a Modern Growth regime is then depicted.     

Enlargement and the European Geography of the Information Technology Sector

The information technology sector in Europe, comprising the production of computer hardware and software, is disproportionately located on the continent's western periphery. The vast bulk of computers sold in Europe in the 1990s were assembled either in Ireland or Scotland, while Ireland also accounted for over 40 per cent of all packaged software and 60 per cent of all business software sold in Europe. As the sector in both these locations is largely foreign owned, the question arises as to whether EU enlargement might impact on the geography of the sector by diverting information technology FDI from the western to the new eastern periphery. This issue is explored in the present paper by analysis of five individual sub‐segments: computer assembly and electronic components, R&D, mass‐market packaged software and the remainder of the software sector. The paper deems it likely that computer assembly operations will continue the shift seen in recent years from Ireland and Scotland to Central and Eastern Europe. The production of electronic components such as microchips represents a growing share of activity in most EU locations as well as in the CEE countries. Analysis suggests that this pattern of geographically‐dispersed growth will resume once the consequences of the collapse of the high‐tech bubble are played out. The distribution of R&D activity across Europe and globally is also considered unlikely to be much affected by enlargement. As for software, as long as localisation activities remain important, Ireland – the EU location in which most of this activity is carried out – seems set to be able to compete strongly, given the attractiveness of its English‐language environment and other attributes to the young continental Europeans upon which this activity relies. Most software services remain largely non‐tradable however. This sector will grow in the accession states as computer penetration rates converge on the EU average, but without displacing activity from the incumbent EU member states. For firms already competing in the tradable niche software segment, on the other hand, enlargement cannot but be beneficial because of its impact on the size of the market into which they sell.     

Causation between health and income: a need to panic

This article tests whether health has improved income or income has improved health in OECD countries over the last 50 years. A theoretical framework for both directions of causation is first outlined. A panel time-series approach is then taken and, unlike similar work, common shocks across countries (‘cross-sectional dependence’) are taken into account in the analysis using the PANIC (Panel Analysis of Non-stationarity in Idiosyncratic and Common components) approach of Bai and Ng. It is found that better health improves income more generally while income in turn also affects health. This finding is shown to be robust to dynamic specification.     

The effects of the frequency of spatially proximate and distant interaction on innovation by Irish SMEs

This paper tests whether more frequent interaction at different spatial levels has a positive effect on the innovation performance of small- and medium-sized enterprises (SMEs) in the South-West and South-East of Ireland. Based on an original survey, it finds that more frequent interaction generally increases innovation likelihood, but at a diminishing rate, thus suggesting a trade-off between resources dedicated to transforming knowledge into new products and processes. Spatially distant interaction is found to be at least as valuable as proximate interaction, which questions the received wisdom that the best sources of knowledge are regional. Given the value of distant interaction, the results indicate that regional lock-in may be an obstacle to superior innovation performance of SMEs.     

Pump-Priming the PFI: Why are Privately Financed Hospital Schemes Being Subsidized?

The authors explain how the Private Finance Initiative (PFI) has raised the costs of infrastructure development in the health service. They demonstrate that the assumption that higher capital costs would be offset by savings resulting from the involvement of the private sector is wrong—rather, NHS trusts and health authorities have been obliged to make savings on other budgets in order to make the high costs of investment affordable. There is no reason to believe that these problems will disappear as the volume of PFI investment increases.     

欧盟海关控制下的加工

欧盟立法机构提供一种用来节约关税税款的程序，称做“海关控制下的加工”（Processing under Customs Control，PCC）。这是一种贸易促进措施，用来鼓励货物在欧盟进行加工。这种措施允许货物从欧盟以外的国家进口到欧盟，用于加工而不必缴纳进口税，或是受其他商业政策措施的管制。     

Taxi Sharing: Belfast leads London

Nicholas Ridley, Secretary of State for Transport, is loosening the market by deregulating road transport. He could intensify competition to 'public' bus services by relaxing the regulation of taxis, as two Irish economists demonstrate from the example of Northern Ireland.