willingness to pay for land preservation across states and jurisdictional scale implications for benefit transfer in stated preference valuation of farmland preservation respondents are often told that preservation will occur within various jurisdictional scales that is community or state but are not told the specific location of parcels the resultant availability of welfare estimates for different scales and regions provides numerous avenues for benefit transfer this paper provides a systematic assessment of transfer error contrasting different methods for the transfer of farmland preservation values across states and jurisdictional scales results drawn from multistate choice experiments suggest that the choice of across scale versus across state transfer method can have significant implications for transfer validity

study on benefit transfer in an international setting how to improve welfare estimates in the case of the countries income heterogeneity abstract the paper aims at investigating the validity of benefit transfer in the case of transfers between countries highly heterogeneous in income and demonstrates relative performance of different benefit transfer methods under these conditions lake water quality valuation studies were conducted in two countries in transition poland and the czech republic they reflected two earlier studies carried out in norway we examine how income elasticity of wtp varies with the levels of income and find support for applying the income elasticity of 1 to adjust transferred welfare estimates in case of high differences in income between countries in addition we show that using site specific measures of income outperforms transfers based on gpd per capita the accuracy of benefit transfer is compared using equivalence testing following the tosc two one sided convolutions test a new more informative way of reporting equivalence is proposed based on computing minimum tolerance level rather than specifying it a priori

the price of wealth business and state in labor remittance and oil economies this article contrasts the effects of state controlled oil revenues and privately controlled labor remittances on institutional development state capacity and businessgovernment relations in saudi arabia and the yemen arab republic these two countries represent extreme cases of dependence on external capital in deeply divided societies presided over by fragile emerging bureaucracies by tracing the two cases through a pattern of economic boom 1973 83 and recession 1983 87 the study demonstrates that the type volume and control of capital inflows decisively influence the relative development of the bureaucracy s extractive distributive and regulatory capacities and affect the ability of the state to respond to economic crisis in both cases external capital inflows precipitated the decline of extractive institutions however oil revenues and labor remittances had divergent effects on businessgovernment relations and this circumscribed the state s ability to implement austerity programs during the recession during the crisis the saudi government s efforts to cut subsidies to the private sector and to implement extractive policies were blocked by the state sponsored merchant class in contrast the yemeni government instituted a thoroughgoing austerity package that targeted the independent merchant class in both cases external capital inflows did not augment the efficacy of those that controlled them these paradoxical outcomes are explained by tracing the different effects of oil revenues and labor remittances on the distribution of economic opportunity in the public and private sectors and the resulting effects on the regional tribal and sectarian composition of the bureaucracy and the commercial class

yes in my backyard spatial differences in the valuation of forest services and local co benefits for carbon markets in mexico forests provide many and large benefits including cost efficient climate change mitigation however international carbon markets have not stimulated the demand for forestry offsets domestic market mechanisms are emerging in many countries and forests could be highly valued through these policies as most of the benefits produced by forests are enjoyed locally here a choice experiment explores drivers of valuation and willingness to pay for forest carbon services in voluntary markets in mexico by comparing the valuation of citizens from four regions to test geographical preference for projects n 645 findings from multinomial logit models show valuation of forest carbon services is transferable and citizens would pay more for offsets from projects closer to their homes proximate forests provide a range of co benefits to local users including environmental services and opportunities for recreation factors related to valuation include sense of responsibility previous knowledge of carbon emissions previous visits to the sites regional identification and the valuation of local environmental services e g improvements in local air quality knowledge of spatial heterogeneity in valuation of the use of forest services can help to design market based instruments by identifying highly valued areas for environmental services programs and carbon markets

a bayesian model for benefit transfer application to national parks in spain valuing environmental goods through benefit transfer is based on information from the set of past empirical studies of similar or identical sites this paper proposes a bayesian approach to model prior information on mean consumer surplus the prior distribution is defined as a convex combination of the results from past empirical studies an advantage of the bayesian approach is that the prior distribution could be combined with on site sample information in order to improve predictions on the benefits of the policy site the model is applied to data from national parks in spain the results show that the benefits of policy sites are more sensitive to the prior information for smaller sample sizes this implies that the prior distribution can be seen as a substitute for on site sample information

new evidence on purchasing power parity from 17 oecd countries there is a large literature that investigates whether or not real exchange rates are stationary in an attempt to unravel support for purchasing power parity ppp at best the empirical results are mixed this paper applies a unit root test that allows for a simultaneous structural break in the intercept and slope shown by sen 2003 to minimize power distortions to examine ppp for 17 oecd countries our results on ppp are mixed when the real exchange rate is based on the us dollar evidence is found of ppp for only france portugal and denmark when the real exchange rate is based on the deutschmark we find evidence of ppp for austria belgium norway spain netherlands switzerland and denmark

the irony of state strength comparative responses to the oil shocks in the 1970s like two gigantic waves the oil shocks crested over the advanced industrial world during the 1970s the relatively stable postwar petroleum regime managed by the large oil firms and protected by american diplomatic and military strength collapsed in seven years crude oil prices adjusted for inflation increased more than 500 percent a multitude of national security economic and political challenges confronted the advanced industrial states but unlike war where the threat is observable and lines of conflict quickly become apparent the oil shocks cast up problems that were more insidious problems of energy security economic adjustment and industrial competitiveness these international dilemmas could be defined in various ways and a host of policy responses could be brought to bear upon them

bayesian analysis of interval data contingent valuation models and pricing policies the general aim of a contingent valuation survey is to elicit the willingness to pay wtp of respondents for some public commodity without a clear market price this could be a program to protect some environmental resource or as in our application the access to a recreational area of particular interest in this context we want to accommodate the possibility of zero wtp and we need to deal with the fact that observations arise as intervals for wtp rather than point observations we propose a flexible bayesian statistical analysis of wtp as a function of characteristics of the respondents that formally incorporates this structure through a mixture model we consider model uncertainty and pay particular attention to the predictive distribution of revenue if a certain entry price were asked the latter is an important tool for deriving pricing policies

testing choice experiment for benefit transfer with preference heterogeneity benefit transfer is a cost effective method for estimating the value of environmental goods that relies on information obtained in previous studies the multiattribute approach of choice experiments should provide advantages in terms of benefit transfer allowing differences in environmental improvements between sites as well as differences in socioeconomic and attitude characteristics between respondent populations this article investigates the capability of choice experiment method to be used in environmental benefit transfer when a random parameters approach is used to allow for preference heterogeneity we find that the inclusion of respondents taste heterogeneity reduces the magnitude of the transfer error

purchasing power parity over two centuries trends and nonlinearity in two recent contributions lothian and taylor and cuddington and liang produced empirical evidence that annual data for the dollar sterling real exchange rate spanning two centuries exhibited a non linear deterministic trend this trend could be proxying harrod balassa samuelson effects lothian and taylor showed that a linear stationary autoregressive mode which embodied a cubic trend implied much faster mean reversion of the real exchange rate to shocks than a model that excluded the trend this article shows that both non linearity and a deterministic trend can be allowed for in a theoretically appealing manner and that the fitted models provide a parsimonious explanation of both the dollar sterling and franc sterling real exchange rates over the two centuries of data generalized impulse response function analysis of the models demonstrates that the speed of adjustment to shocks can be even faster when trends are considered

measuring the difference in mean willingness to pay when dichotomous choice contingent valuation responses are not independent dichotomous choice contingent valuation surveys frequently elicit multiple values in a single questionnaire if individual responses are correlated across scenarios the standard approach of estimating willingness to pay wtp functions independently for each scenario may result in biased estimates of the significance of the difference in mean wtp values this paper applies an alternative bivariate probit approach that explicitly accounts for correlation across errors in the estimation of wtp and mean wtp using data from three separate dichotomous choice contingent valuation studies this correlation is demonstrated to have an effect on the significance level of mean wtp difference tests

context sensitive benefit transfer using stated choice models specification and convergent validity for policy analysis benefit transfer has been an important practical policy tool appealing to government agencies especially when time or budget is constrained however the literature fails to support convergent validity of benefit transfer using the stated preference method this empirical study conducts four convergent validity assessments of benefit transfer using the choice modeling method and data from rhode island and massachusetts regarding coastal land management the comparisons evaluate how individual characteristics improve benefit transfer and yield insights relevant to research specifications to produce studies adaptable for transfer applications empirical tests show benefit transfer using choice modeling may be acceptable and even empirically valid depending on the policy objectives and the context

purchasing power parity in less developed and transition economies a review paper abstract the concept of purchasing power parity ppp has been the subject of numerous studies many of which have been unable to prove conclusively this core principle of international finance although industrialized countries have received most of the attention studies that focus on less developed and transition economies have also attained mixed results this study surveys trends in this branch of the literature highlighting the econometric advances that have sought to solve this puzzle while pointing out that more needs to be done to address the reasons that might cause ppp not to hold

limits of state strength toward an institutionalist view of economic development nomic development attempted to explain why growth did not occur occurred slowly or occurred in a distorted dependent form the impressive economic performances of the east asian newly industrialized countries nics have changed this many noneconomists as well as some economists are now focusing on the political bases of development rather than underdevelopment there are differences among these analysts some distance themselves from neoclassical economics by emphasizing the importance of getting the prices wrong others acknowledge the utility of market conforming policies but common to recent studies of nics is the belief that growthpromoting economic policies require certain types of domestic political institutions analysts have emphasized the utility of strong states in this regard 2 through an analysis of efforts to promote local auto manufacturing in southeast as well as east asia this article argues for an institutionalist approach to development that goes beyond statism the resolution of collective action problems is central to statist writings development requires that private returns to individual activities be brought in line with the broader needs of national development 3 two factors are presumed to obstruct such harmonization in developing

meta analysis and benefit transfer for resource valuation addressing classical challenges with bayesian modeling abstract the use of meta regression models based on existing studies to estimate the value of resources at a new policy site has become a popular alternative to collecting original data in recent years there are two prevalent dilemmas associated with classical meta regression models the difference in the available set of regressors across source studies and the treatment of methodological explanatory variables in the construction of benefit transfer functions in this study we illustrate how these issues can be addressed efficiently within a bayesian meta regression framework we find that the bayesian model in contrast to its classical counterpart can estimate a relatively large set of parameters including indicators of unobserved study heterogeneity with reasonable accuracy even when the underlying meta sample is small the incorporation of information from regressor deficient source data in the specification of bayesian priors leads to a better model fit and tighter welfare estimates for benefit transfer in our application of freshwater angling

testing different types of benefit transfer in valuation of ecosystem services new zealand winegrowing case studies abstract most ecosystem services es are neither priced nor marketed resource managers may fail to take into account degradation of unpriced services in their resource management decisions being able to estimate values for es is fundamental to designing policies to induce resource users to provide or improve es at levels that are acceptable to society conducting ecosystem valuation via non market methods is costly and time consuming benefit transfer bt using choice experiment ce is a potentially cost effective method for valuing es by transferring information from existing valuation studies and study sites to a target area of interest policy sites the prime objective of this paper is to examine the validity of bt and hence whether it is feasible to conduct the transfer process and assist policy making the paper focuses on the environmental impact of winegrowing practices in two new zealand winegrowing regions the two sites hawke s bay and marlborough have similar environmental issues and attributes but are geographically separated the study estimates willingness to pay wtp and compensating surplus cs for es applying ce and subsequently given the preferences of respondents across sites and populations tests the transferability of unadjusted value transfer wtp and benefits function cs assessing four different types of bt

the coming sustainable energy transition history strategies and outlook abstract facing global climate change and scarce petroleum supplies the world must switch to sustainable energy systems while historical transitions between major energy sources have occurred most of these shifts lasted over a century or longer and were stimulated by resource scarcity high labor costs and technological innovations the energy transition of the 21st century will need to be more rapid unfortunately little is known about how to accelerate energy transitions this article reviews past transitions and factors behind them along with their time frames three modern case studies are discussed brazil which shifted from an oil based transportation system to one based on sugarcane ethanol success france which shifted from oil fired electric power to nuclear power success and the united states which attempted to shift from foreign oil to a mix of domestic energy resources failure lessons from these attempts to govern energy transitions are discussed several policy instruments to accelerate a transition are identified though even under ideal circumstances a global energy supply transition will be very slow given the need to simultaneously implement programs in countries with different political economies a greater focus on energy efficiency promotion of smart grids and possibly a new treaty should yield more timely results

export orientation and domestic electricity generation effects on energy efficiency innovation in select sectors abstract why are some countries developing many energy efficiency innovations while others are lagging behind i argue that export orientation and electricity at low variable cost from nuclear and hydropower plants have an interactive effect on energy efficiency innovation export oriented countries have strong incentives to invest in energy efficiency innovation as they are in a position to export these technology innovations for global markets but if inexpensive electricity is supplied in a country the domestic demand for energy efficiency innovation is missing and so the home market cannot serve as a springboard for international commercialization i test this theory against international patent data on energy efficiency innovation in insulation heating and lighting for 22 oecd countries 1991 2007 the statistical analysis indicates that export orientation has large positive effects on energy efficiency innovation in countries that do not rely on nuclear and hydroelectricity

choice modeling and tests of benefit transfer choice modelling cm is a stated preference technique that is increasingly being used to generate estimates of non market values in cm applications respondents to a survey are presented with several sets of options which contain common attributes but at varying levels and are asked to select their preferred alternative from each set the information provided by respondents choices is used to estimate marginal rates of substitution and hence estimates of value in this paper the results from three separate cm applications are presented estimates are made of the value of improving the quality of wetlands the first two applications focused on the gwydir wetlands in new south wales australia one survey was conducted in sydney a major urban centre and the second was conducted in moree a rural centre close to the gwydir wetlands the third survey which was also conducted in sydney focused on the macquarie marshes another wetland in new south wales an objective of the study was to test the suitability of using cm derived estimates for benefit transfer both across different populations and across different wetlands cm is potentially suited to benefit transfer because it is possible to allow for differences in environmental improvements between sites as well as differences in socio economic characteristics between respondent populations several tests aimed at determining the validity of transfers using cm across sites and populations are presented these include tests of the equality of models implicit prices and estimates of compensating surplus

as time goes by examination of temporal stability across stated preference question formats we evaluate the temporal stability of willingness to pay values obtained from two identical stated preference surveys undertaken in 2004 and 2012 the surveys employ two discrete choice elicitation formats to value reductions in two health endpoints related to tap water consumption and are explicitly designed to make direct comparisons between formats we find no significant differences in real willingness to pay between the two surveys for either format a result that is robust to the structure of heterogeneity used to model respondent preferences findings lend support at least within the context of tap water quality to the temporal transfer of nonmarket benefits over extended time periods

evaluating the performance of benefit transfer an empirical inquiry abstract benefit transfers are used by public agencies needing information on costs and benefits of policy decisions although scientific debate regarding the validity of benefit transfer is ongoing this article develops a methodology to evaluate the performance of direct benefit transfer and benefit function transfer and applies the methodology to two pairs of similar non market amenities empirical results indicate that benefit function transfer is more robust than transfer of average site benefits our results suggest that the circumstances under which benefit function transfer provides valid policy relevant information may be limited and that errors from applying benefit transfer can be quite large even across seemingly similar amenities

do real exchange rates follow a nonlinear mean reverting process in developing countries in an effort to fight relatively high inflation many developing countries try to manage their nominal exchange rates through official intervention in addition developing countries tend to have high transportation costs tariffs and nontariff barriers these factors are among the sources of generating nonlinearity in real exchange rates and hence some nonlinear adjustment toward purchasing power parity ppp in developing countries in this paper we employ monthly real effective exchange rate reer data of 88 developing countries and test the null of nonstationarity versus an alternative of linear stationarity by the means of a conventional unit root test and compare the results with those obtained from a new test in which the null is the same but the alternative hypothesis is nonlinear stationarity the latter test supports the ppp theory in more developing countries compared with the former test suggesting that nonlinear adjustment toward ppp in developing countries is an important phenomenon reported country characterizations indicate that reversion in reer occurs more often for high inflation countries and for countries with high flexibility in their exchange rates

purchasing power parity and the role of traded goods evidence from eu states in this paper the debate on purchasing power parity ppp is considered by providing results with disaggregated price data from european countries the disaggregation of the price data is important because it allows for the consideration of goods that are likely tradable e g fruits with goods that are not tradable e g hotel rooms the european focus is important because these results are able to shed light on the effect of the type of exchange rate regime member of exchange rate mechanism erm or not

long run purchasing power parity revisited a monte carlo simulation the existence of long run purchasing power parity ppp implies that a cointegration vector of nominal exchange rate domestic price and foreign price is expected regardless of using the engle granger two step method or johansen maximum likelihood approach however this paper has found conflicting results the engle granger technique tends to reject the long run ppp hypothesis whereas the johansen method is generally supportive of long run ppp via monte carlo simulations the present paper finds that the johansen approach has a bias toward supporting long run ppp especially under the circumstances in which the assumption of normally or and independently and identically distributed disturbance terms is violated

the international economy as a constraint on u s macroeconomic policymaking international economic factors increasingly influence american trade and exchange policy and interdependence also circumscribes the autonomous choice of domestic policies but the growing concern of organization for economic cooperation and development oecd policymakers over the potential for macroeconomic policy coordination to enhance national as well as world welfare implies that international economic relations present opportunities rather than constraints under some circumstances this suggests that understanding domestic economic policy choice within its international context involves not only how policy choices are made within the bounds of international constraints but also when countries might cooperate to modify the constraints themselves this research looks to four important historical cases for information on these questions the first three are the series of cumulating crises in the international monetary system during the 1960s and early 1970s the fourth is the energy supply shock of 1973 and the recession that followed the article describes the process of policy selection in each of these cases contrasting domestic versus international premises for policy choice the economics literature has emphasized the magnitude of domestic welfare gains available from coordinated national economic policies although the cases considered here do not contradict the importance of payoffs they underline the corresponding role of political economic and strategic uncertainty in conditioning elites policy choices

prospects for the use of choice modelling for benefit transfer abstract many of the earliest studies that sought to test the validity of benefit transfer which typically involved the use of contingent valuation or travel cost applications produced negative findings one of the recommendations from this early testing was to trial alternative methods to produce source studies for benefit transfer including multi attribute techniques subsequently there have been a number of studies conducted that have sought to test the validity of benefit transfer using choice modelling the purpose of this paper is to review these studies and to assess the current state of knowledge regarding the validity of using choice modelling for the purpose of benefit transfer we also describe and consider the merits of an alternative approach for extending the use of choice modelling in benefit transfer bayesian benefit transfer

the validity of environmental benefits transfer further empirical testing this paper provides further empirical evidence of the validity of environmental benefits transfer based on cv studies by expanding the analysis to include control factors which have not been accounted for in previous studies these factors refer to differences in respondent attitudes traditional population characteristics were taken into account but these variables do not explain why respondents from the same socio economic group may still hold different beliefs norms or values and hence have different attitudes and consequently state different wtp amounts the test results are mixed the function transfer approach is valid in one case but is rejected in the 3 other cases investigated in this paper we provide further evidence that in the case of statistically valid benefits transfer the function approach results in a more robust benefits transfer than the unit value approach we also show that the equality of coefficient estimates is a necessary but insufficient condition for valid benefit function transfer and discuss the implications for previous and future validity testing

threshold cointegration and purchasing power parity in the pacific nations the paper uses a threshold cointegration methodology to explore the properties of long run purchasing power parity ppp in the pacific nations using japan and the usa as base countries it is shown that long run ppp holds for most asian countries but that the adjustment mechanism is asymmetric in contrast to symmetric error correction models it is found that asymmetric adjustments of nominal exchange rates play an important role in eliminating deviations from long run ppp

identifying the elements of state power where do we begin many measures of state power are defined in terms of the material capabilities of states but ignore important differentials in the state s capacity to convert material resources into political power this paper presents a theoretical rationale for a measure of government performance that takes into account differentials in a political system s susceptibility to external shocks from the global environment and its ability to respond to these through domestic policy adjustment this approach differs from other empirical definitions of power in that it taps a government s strength with respect to its own society and to the international environment the paper s main contribution is to describe and to operationalize a way of evaluating state power with respect to both the global environment and to society based on the twin functions of penetration and extraction

disciplining trade finance the oecd export credit arrangement the salience of tariffs quotas and other import restrictions in current discussions of trade policy obscures what may well become a more significant form of government intervention subsidized export promotion over the past two decades subsidized trade finance has been one of the most widely used instruments of export promotion this article offers an historical description and a theoretical explanation for the success of the organization for economic cooperation and development oecd export credit arrangement an international regime restricting the provision of subsidized trade finance the explanation emphasizes three factors the structure of government institutions the relative power of states and the functional value of information more generally the analysis demonstrates the inherent weaknesses of monocausal explanations of international cooperation and the advantages of explanations based on a conception of international cooperation as a multistage process each stage of which may be explained by a separate theory

post fukushima japan the continuing nuclear controversy abstract the fukushima disaster was a wake up call for the nuclear industry as well as a shocking revelation of the inner workings of the japanese power sector the political fallout from the event was far reaching pushing governments into abandoning nuclear expansion turning instead to fossil fuels and renewable energy alternatives while the move away from nuclear energy was deemed a move critical to political survival in europe we find that political candidates running on anti nuclear platforms did not win elections while the pro nuclear liberal democratic party won government in the 2012 elections against this backdrop we analyse the energy conflict in japan using a framework of values versus interests and consider the regulatory and cultural conditions that contributed to the disaster a number of considerations lie in the way of an organised phase out of nuclear power in japan we also consider the possible policy paths japan may take

state structure and economic adjustment of the east asian newly industrializing countries an analysis of the economic adjustment policies of hong kong singapore south korea and taiwan during the 1970s and 1980s shows that these east asian newly industrializing countries nics which faced common problems in sustaining their recent industrial growth responded to the challenge with industrial adjustment strategies that differed in their degree of intensity of state involvement and emphasis on national control to explain this divergence in adjustment strategies the article explores the variations in the national political structures of the four nics and focuses particularly on three aspects of state structure the organization of the economic bureaucracy the institutional links between the state and private sector and the larger state society relations the article demonstrates the usefulness of moving beyond the generalizations of the developmental state view by carefully disaggregating these aspects of state structure and by exploring the ordering logic that gives coherence to them

domestic adjustment to international shocks in japan and the united states economic interdependence complicates domestic policymaking by interposing the decisions of foreigners in the loop that links policy instrument settings to economic outcomes nowhere was this vulnerability to external decisions demonstrated more forcefully even for the world s major economies than by the energy supply shocks of 1973 and 1979 the oil shocks posed challenges that offer unusual insight into the way nations choose policies their severity forced a policy response their unpredictable timing and at least in 1973 unprecedented nature ruled out conventional formulas and brought to the fore explicit policy trade offs this article seeks to explain how policymakers in the world s two major economies responded to these external shocks the analysis successively employs three vantage points system society and state in tracing the sources of domestic adjustment policies it focuses specifically on the extent to which policies accommodated or extinguished each shock s inflationary impulses and on the coherence and consistency with which the executive in each government formulated and pursued particular policy goals a comparison of these four cases illustrates the strengths and weaknesses of increasingly detailed theoretical frameworks for explaining policy choice although the research does not contradict the depiction of the united states and japan in terms of state strength it does underscore the importance of looking beyond formal institutional arrangements to consider how elite policy preferences ambitions and capacities can define the way constraints influence policy

the korean system of innovation and the semiconductor industry a governance perspective1 this paper explores in detail the political institutional processes and governance aspects of the korean system of innovation it shows i how the specific form of corporate governance chaebol evolved out of korea s national political institutional arrangements such as the state firm relationship based on reciprocal subsidy and ii how the dramatic emergence of korean semiconductor firms in world memory chip markets resulted from the subtle and changing interactions of state world market conditions and chaebol governance copyright 1998 by oxford university press

choice experiments site similarity and benefits transfer choice experiments are designed to account for variations in environmental resources and site characteristics as well as potential implications of these variations for willingness to pay as a result choice experiment results may be well suited for benefits transfer it is unclear however whether the flexibility of choice experiments renders the similarity of study and transfer sites less critical for transfer validity drawing from identical choice experiments conducted in different rhode island communities this model assesses the extent to which error in function based benefits transfer is related to the similarity of communities across a variety of observable dimensions results suggest that site similarity at least across some dimensions influences the validity of choice experiment benefits transfers however the use of some measures of similarity as indicators of transfer error may provide misleading results

benefit transfer from multiple contingent experiments a flexible two step model combining individual choice data with community characteristics this study proposes a new approach to utilize information from existing choice experiments to predict policy outcomes for a transfer setting recognizing the difficulties from pooling raw data from experiments with different designs and sub populations we first re estimate all underlying random utility models individually and then combine them in a second stage process to form a weighted mixture density for the generation of policy relevant welfare estimates using data from recent choice experiments on farmland preservation we illustrate that our strategy is more robust to transfer inaccuracies than single site approaches the specification of intelligent mixture weights will be a fruitful ground for future research in the area of benefit transfer

purchasing power parity an analysis based on the evolutionary spectrum the bulk of the literature on the empirical validation of the purchasing power parity ppp has been based on cointegration although on rare occasions band spectrum analysis has also been used the former is tied down to the use of notional time in the analysis of systems away from equilibrium and the latter is circumscribed by the slutzky yule effect both these drawbacks are sought to be remedied in the present paper which seeks to bring to bear upon the ppp a new approach derived from the concept of a time varying spectrum both absolute and relative versions of the doctrine are tested for ten advanced economies over the post 1973 period uniform rejection of the ppp occurs with the us as base but with centring on the dm the evidence seems to be supportive of the ppp in its relative version for three european countries

breaking with orthodoxy the politics of economic policy responses to the depression of the 1930s under the same systemic shock the collapse of the international economy in 1929 different countries formulated different policy responses britain germany the united states france and sweden all began by attempting the orthodoxy of deflation soon after they abandoned deflation devalued their currencies erected tariff barriers and set up corporatistic production and marketing arrangements a few countries went further and began experimenting with demand stimulus fiscal policy the most successful was nazi germany the swedish and u s efforts were much more limited and less effective the french attempt crumbled in less than a year and britain never tried demand stimulus why this divergence in policy the politics of policy response the societal basis of different policy coalitions and the way in which they were expressed through different political formulations suggests an answer in all countries labor agriculture and certain elements of business became available for revolts against policy orthodoxy what differed across countries was the specific balance of forces among these interest groups and the political factors that shaped their combinations the effect of political leadership institutions and other variables on outcomes depended critically on the way specific social forces in each society used and worked through them

the state and capitalist transformation in sub saharan africa a development model declining performance of the postcolonial african states suggest the inefficiency of centralization and or socialist strategy that currently dominates the region the solution however is not a return to the largely unrestrained liberal economic models of the 1960s such as import substitution industrialization or commodity export specialization whether from the left or right the inability of all three models to define precise development roles for africa state elites suggest their insensitivity to and inadequacy for the needs of these politically dynamic young states of africa an alternative model presented in this article would involve state elites in grass roots capitalist development the model fosters decentralization and economic development without sacrificing rule legitimization and national integration as equal objectives in many respects the model is an attempt to adapt to african realities the norms of embedded liberalism that properly describe current western liberalism

evidence on the purchasing power parity in a panel of cities evidence is provided on the ppp hypothesis using a sample of 50 spanish cities for a long time period through the application of panel data unit root tests although results suggest non rejection of the ppp short run deviations as measured by half lives indicate that real factors might be causing a slow rate of convergence to a common price index even in highly integrated economies

revisiting purchasing power parity in oecd this study revisits purchasing power parity theory ppp in the 34 oecd countries during january 1994 august 2013 we use a new panel stationary test with both sharp breaks and smooth shifts a novel approach to panel unit root testing proposed by bahmani oskooee et al 2014 the results indicate that the ppp holds in half of the 34 oecd countries these results indicate the importance of proper modelling of both sharp breaks and smooth shifts in real effective exchange rate series of oecd countries