The Case Against a U.S.-Arms Monopoly

The U.S. government is the dominant player in the global arms market. Existing literature emphasizes the many benefits of an international U.S. government arms monopoly including: regional and global balance, stability and security, the advancement of U.S. national interests, and domestic economic benefits from international sales. The purpose of this paper is to balance this largely one-sided treatment of the U.S. government’s dominant position in the international arms market. We discuss several negative consequences and costs associated with U.S. arms sales which call into question the net benefit of the U.S. government’s control over global arms.     

The impact of cost on the choice of university: evidence from Ontario

Abstract. This paper provides the first Canadian study of the link between cost to the student and the choice of university. Over the past two decades, there has been a substantial increase in the differences among Ontario universities in ‘net cost’ defined as tuition and fees minus the expected value to an academically strong student of a guaranteed merit scholarship. Our estimates generally indicate no relationship between net cost and the overall share of strong applicants that a university is able to attract. An increase in net cost is associated with an increase in the ratio of strong students from high‐income neighbourhoods to strong students from middle‐income and low‐income neighbourhoods in Arts and Science programs but not in Commerce and Engineering. Finally, more advantaged students are more likely to attend university, but merit aid is not of disproportionate benefit to those from more economically advantaged backgrounds, given registration. JEL classification: Health Education and Welfare     

Where a contract is signed determines its value: Chinese provincial variation in utilized vs. contracted FDI flows

There are major differences between ex ante corporate investment plans and ex post investments. The case of China is useful for understanding this problem because there is substantial time series and cross sectional variation in the ratio of utilized to contracted FDI (UC ratio), which is less than one in most province-year observations. Provinces may believe that they are rewarded for reporting higher levels of contracted FDI, which would lead to lower UC ratios and higher policy incentives in subsequent years. Alternatively, provinces may be rewarded for reporting data more accurately, which would lead to higher UC ratios and policy incentives in subsequent years. Empirical analysis supports the second, institutional theory and suggests that provinces may increase their rate of utilizing pledged FDI by strengthening their legal systems and reducing government bureaucracy.     

Multinationals do it better: Evidence on the efficiency of corporations' capital budgeting

With U.S. multinational enterprises playing increasingly important roles in the global economy, it is important to understand the efficiency of their capital budgeting decisions. We examine an unbalanced panel of 332 U.S. firms from 1992–2000. Using the deviation of a firm's estimated marginal Tobin's q from a benchmark as an indicator of effective resource allocation, we find that widespread multinationals make more efficient capital budgeting decisions. We also test whether this reflects the MNEs' investment locations, but do not obtain support for the hypotheses that they might be monitored by more agents or more successfully resist pressures from interest groups and governments.     

Trade Unions and Work‐life Balance: Changing Times in France and the UK?

The mixed empirical findings to date have indicated that some, but not all, unions in industrialized countries are actively involved in campaigning and bargaining around work–life balance (WLB) issues, as part of a modernization agenda linked to feminization and to 'positive flexibility'. This article seeks to identify factors that might encourage or inhibit trade unions from involvement in WLB issues, within a cross-national comparative perspective focusing on two countries (France and the UK) that have contrasting working time regimes and approaches to WLB. It draws on original research carried out in two sectors — insurance and social work — in these two countries. The article links the emergence of union WLB programmes and bargaining agendas to gender-equality concerns within the union and to the gender composition of the sector, as well as to the working time regime, including the mode of action, partnership being a significant corollary of WLB campaigning in the UK. We find support for the modernization thesis in the UK, particularly in the public sector, but within severe constraints defined by employer initiative.     

Does income inequality increase charitable giving?

Do households react to changes in the distribution of income in their localities by changing their charitable giving? The theoretical prediction of the effects of income inequality on giving is unclear. We study how changes in income inequality measured at the neighbourhood and municipality levels affect charitable giving by households in Canada between 1991 and 2006. We find that increases in inequality increase giving. Results are sensitive to the geographic dispersion of low‐ and high‐income households in neighbourhoods within a municipality. The effect on donations is smaller in areas with high levels of inequality at both neighbourhood and municipality levels.     

The empire strikes back: Adam Smith,John Stuart Mill,and the Robust Political Economy of empire

Recent scholarship regarding the idea of a U.S. Empire has raised serious questions as to the feasibility and desirability of imperial ambitions. This paper traces the debate over the net-benefit of empire back to the Classical economists. Adam Smith argued that the British Empire was a net cost while John Stuart Mill concluded the same empire was a net benefit. Contemporary arguments about a U.S. Empire map neatly to the divergent views of Smith and Mill. In addition to engaging in an exercise in history of thought, we use Smith’s political economy as a means of adjudicating between the different claims regarding the feasibility of empire. In doing so, we subject the claims of proponents of American Empire against the standard of robust political economy, which holds that intervention must generate desirable outcomes where less than ideal incentive and epistemic conditions hold. In doing so, we conclude that many of the claims made by proponents are fragile under less than ideal conditions.     

Learning from cost analyses: an illustration from the UK's New Deal for Disabled People (NDDP)

This article describes a cost analysis of an employment programme available to people claiming incapacity benefits in the UK. The NDDP was delivered locally by contracted providers called ‘job brokers’. The cost analysis found great variation among job brokers' costs and profitability, much of which seems attributable to differences in job broker size. The methods described here will be useful in evaluations wherever multiple institutions are contracted by governments to deliver services, especially when these institutions are involved in several different programmes.     

Cheap Imports and the Loss of US Manufacturing Jobs

This study examines the role of international trade and specifically imports from low‐wage countries, in determining patterns of job loss in U.S. manufacturing industries between 1992 and 2007. Motivated by intuitions from factor‐proportions‐inspired work on offshoring and heterogeneous firms in trade, we build industry‐level measures of import competition. Combining worker data from the Longitudinal Employer‐Household Dynamics data set, detailed establishment information from the Census of Manufactures and transaction‐level trade data, we find that rising import competition from China and other developing economies increases the likelihood of job loss among manufacturing workers with less than a high school degree; it is not significantly related to job losses for workers with at least a college degree.     

The same yet different: Worker reports on labour practices and outcomes in a single firm across countries

This paper examines cross-country differences in labour policies and practices and employee performance and attitudes toward work from a sample of nearly 30,000 employees in a large multinational manufacturing firm. The analysis shows: 1) large establishment and country differences in work practices, performance, and attitudes toward work across countries; 2) qualitatively similar responses of workers to work practices across countries; 3) a strong link between the establishment average of employee reports on the quality of labour-management relations and establishment average measures of employee performance 4) a positive relation between average employee performance and average employee-management relations at the country level, but no relation between country level performance in the firm and measures of the extent of national labour regulations or practices.