bluuebunny/crossref_metadata_2025 huggingface dataset:
The Contribution, Power and Influence of Part‐time Board Members
Authors: McNulty Terry , Pettigrew Andrew
Published: October 2006

The paper compares the contribution, power and influence of non‐executive directors and part‐time chairpersons within large UK PLC's, using interview data collected for a pilot study. Two questions are addressed:

What contribution, if any, is made by non‐executive directors and part‐time chairmen?

How, if at all, do part‐time chairpersons exercise power and influence?

The paper reveals that part‐time chairmen and non‐executive directors claim to contribute to a broad range of issues, ranging from the strategy of the firm, to the appointment, selection and dismissal of board members. Contribution is made by part‐time chairmen and non‐executive directors converting power sources into influence. A variety of influence methods are used by part‐time chairmen and non‐executive directors to contribute as board members. Part‐time chairmen influence most by assertiveness, using the authority that comes with leading the board. Non‐executive directors influence most through persuasion and coalition formation. Non‐executive directors less on their positional authority to exert influence, and more on their personal knowledge, experience and expertise, as well as their ability to form relationships with individuals both inside and outside of the boardroom.
FOCUS: Technology Strategy and Organizational Development
Authors: Gimenez Fernando , Quintella Rogerio
Published: October 2006

This paper describes the technology strategy and marketing orientation of a Brazilian agrichemicals manufacturing firm.1 In the company's twenty years of existence five different stages can be identified with key features of its technology strategy. Training and development of its technical personnel, outside expert support and information sourcing, university liaison projects, and an intimate collaboration between research and marketing activities were the methods used for the implementation of a technology strategy aiming to meet the needs of a particular segment better than broadly targeted competitors. This strategy seemed to be fruitful due to key aspects of the environment and internal organization of the firm, such as the entrepreneurs’ innovative posture and risk‐taking propensity, the existence of space to innovate, the availability of qualified human resources, and the application of a systemic approach to a growing market. This firm's success may also be linked to a better understanding of user needs, a greater degree of attention to marketing and post‐sale technical assistance, and a strong use of outside technology and scientific advice.
Quality Circles to Creativity Circles
Authors: Pathak R. D.
Published: October 2006

A new kind of creativity circle is gaining acceptance in Japanese companies. It is suggested that western firms will have to reconsider the significance of individual and team‐based creativity for delivering multiple incremental advances. The result may be an enhancement and extension of the work of Quality Circles.
Management of Corporate Innovation: A Case Study from the Nippon Steel Corporation
Authors: Bowonder B. , Miyake T.
Published: October 2006

Managing innovation in Japanese corporations has received considerable international attention. The case example reports the diversification of Nippon Steel Corporation, which is the largest steel manufacturing firm in the world; into electronics; information technology; biotechnology; new materials; and high‐tech oriented services, using documents provided by the organization. The case reveals an important example of managing innovation in the emerging era of global technological competition.
Creating the New Russian Manager: Implications for Designing a Cultural Intervention
Authors: Holden Nigel
Published: October 2006

Management education is now one of the major forms of technology transfer from the West to the former USSR and a highly novel form of cultural intervention. A key challenge for Western management educators is to communicate management concepts into Russian/post‐Soviet terms of reference. Russian cultural traits may strongly influence their receptivity to management concepts. Western management educators should not fall into the trap of thinking that they are Russia's economic salvation.
Technology, Strategy and Management
Authors: Chanaron Jean Jacques
Published: October 2006

The basic objective of this paper is to explore at firm level the nature of strategic technological choice and its relation to the search for competitive advantage. It deals with issues concerned with the strategic movement of R&D and innovation.
NLP: Managing a Creative Revolution
Authors: Alder Harry
Published: October 2006

Neuro‐Linguistic Programming (NLP) is a technology for personal excellence based on research investigation. The process involves sensitivity to effective behaviours, and the development of those behaviours. Some presuppositions of NLP are examined, together with practical components and evidence of its effectiveness. The author explains NLP, drawing on organisational experiences.
Amuse (TM): A practitioner's device for maintaining a copywriter's creativity
Authors: Hay Nick
Published: October 2006

A Rubik cube has been transformed to provide a trigger for creative ideas. The inventor dreamed up and tested the idea (Amuse, TM) while working as a copywriter for an advertising agency. He describes its workings, and links it to a brief, theoretical account of creativity.
Innovation in Retailing
Authors: Davies Gary
Published: October 2006

A suggestion by Pellegrini is used to equate innovation in the retail process to “technology push” and product innovation to “market pull” within the mainstream literature on innovation. A model is proposed that recognizes the objective of retail innovation as market differentiation. Innovation is seen as possible on the two dimensions of product and process or on both simultaneously. The use of the model is illustrated by applying it to the British food retailing sector. This suggests that a decline in a retailer's fortunes results from imitative or innovative competitive actions, and that repeated product innovations should be considered to retain the requisite level of differentiation.
Triggering Organizational Change: Application of Importance‐Satisfaction Analysis
Authors: Hemmasi Masoud , Graf Lee A. , Nielsen Warren
Published: October 2006

In this paper the authors have developed and presented a diagnostic and resource allocation tool in the tradition of action research and survey‐feedback methods. This highly pragmatic technique was used in an R & D laboratory to identify where organizational resources and attention should be focused in the management of human resources. The framework can also help management avoid ineffective change activities in areas where the effort would have no significant effects.
Beating the Competition Through Creating a Technological Edge*
Authors: McCosh Andrew M.
Published: October 2006

The companies which are making the greatest competitive progress are those which use information technology and decision support methods in the cleverest way. The field of application varies from marketing, via production and sales, to service. But they have two things in common. First, they use the new technologies to strengthen further some aspect of the enterprise which was already strong. Second, they make enough of an investment to be able to cope with a surge in their business.
All Creative People are Not Alike
Authors: McWhinney Will
Published: October 2006

The prime purpose of this article is to identify the differences we expect to find among highly gifted scientists and thus to guide us in supporting and managing their efforts. Differences that are important to this purpose can be grouped into those which describe:

the way in which a person works

the way in which he or she interacts with the environment

the ways in which a manager can both improve the creative person's effectiveness and manage his or her performance.
Self‐Managed Work Teams: an innovation whose time has come?
Authors: Banner David K.
Published: October 2006

Self‐managed work teams (SMWTs) may be an early manifestation of the changing paradigm of organization. A key tenet of transformational theory is that consciousness creates external, structural forms which represent beliefs, values and attitudes inherent in the dominant paradigm. Previous paradigmatic assumptions of the Industrial Era created the bureaucracy; transformational thinking (the new, emerging paradigm) is creating newer organizational structures such as SMWTs.
Protecting the Fruits of Imagination*
Authors: Kingston William
Published: October 2006

Inventions are the economic fruits of a type of creative activity that can be highly dependent on imagination. They need some form of protection if investment to turn them into concrete reality is to be rational. This is because they consist of information, which is difficult to produce, but all too easy to reproduce. Our present arrangements for protecting inventions (i.e. patents) unfortunately leave much to be desired.
Perspectives on Design and Innovation
Authors: Walsh Vivien , Roy Robin , Bruce Margaret , Potter Stephen
Published: October 2006

A series of studies of top European and other firms has revealed patterns of design management associated with commercial success. Firms that invest resources and professional expertise in product and industrial design in traditional and new industries have been commercially more successful than firms that pay less attention to these aspects of design.

As an industry matures there is a shift in emphasis from design associated with technological innovation, to designs supporting technical improvements, and then to supporting user needs, fashion and product variants. These issues are illustrated through the history of the evolution of the bicycle.
Innovation in the US Military
Authors: Clauson Dale
Published: October 2006

A case example is provided of a successful innovation initiative within the United States Air Force, and specifically within its Electronic Security Command, 1984–1992. Guidelines were developed from Pinchot's ‘rules of intrapreneurs’. Ideas were worked up into projects in Long Range Innovation Teams. The resistance to new ideas was considerably weakened because of top‐down commitment to change. Eventually over 13,000 personnel became involved. Rewards systems were designed in accord with the principles of reinforcing intrinsic motivation through recognition.
Entrepreneurial Intensity and Innovativeness in SMEs
Authors: Lefebvre Élisabeth , Lefebvre Louis A.
Published: October 2006

Academics and practitioners have increasingly been paying attention to process innovation as a means of improving the competitive positioning of manufacturing firms. It is only recently that this attention has turned to the small manufacturing firms. Results from an empirical study indicate that the level of entrepreneurial intensity differs with the organizational status of CEOs. Further, CEOs’ organizational status strongly influences the link between entrepreneurial intensity and the degree of process innovativeness of the small firm. In particular, this link is strongest in the case of owner‐founders and is weakest in the case of CEOs who were brought in from outside by a head office.
Dual Modes of Entrepreneurship: Revolution and Evolution in the Entrepreneurial Process
Authors: Beng Cheah Hock
Published: October 2006

This paper offers a contribution to entrepreneurship theory and aims to promote a new perspective of the phenomenon. It suggests that entrepreneurship may be conceived in two different modes: an evolutionary mode and a revolutionary mode. This distinction leads to a consideration of the differences between the two modes, and the nature of their interaction over time. It will be argued that this interaction leads to an alternation in the relative dominance of these two modes, and that this changes both the context and the significance of different types of entrepreneurial activities over time.
Creativity for Engineering Plant Design: An Exploratory Study
Authors: Lordan Martina , Thompson Graham
Published: October 2006

A pilot study of creativity enhancement techniques took place within a large engineering firm in the UK. Exploratory interviews were carried out with professionals in the areas of creativity, mechanical design engineering and management in order to identify informally acquired skills of successful design practice.1 Engineers participated in an introductory one day training programme applying creative techniques to real design problems from the heavy industrial engineering field. Initial feedback on the programme was recorded in addition to impact studies which took place after a ten‐week interval. The impact of the programme was reported during the course of interviews which were complemented with the completion of detailed questionnaires. Results suggest that traditional training programmes for such professionals may need to be modified to become more user‐friendly.
Letter from Heerlen
Authors: Colemont Patrick , Verhagen Monique
Published: October 2006

This communication marks the first from the newly inaugurated office of the European Association for Creativity and Innovation (E.A.C.I).
Creativity and the Next Generation of Japanese‐Style Management
Authors: Murakami Teruyasu
Published: October 2006

The postwar high‐level economic growth achieved by Japanese companies has been supported by, so‐called, Japanes‐style management. Today, Japan's entire socio‐economic system seems to be in a process of restructuring. Japanese‐style management is facing with profound and multi‐faceted changes. Whether Japanese companies can establish the next generation of Japanese‐style management or not depends on whether they can shift their mode of competition from ‘share competition’ to ‘creation competition’.
Learning from Japan's Multinationals
Authors: Murakami Teruyasu
Published: October 2006

Japanese multinationals have evolved a system of management well suited to handle multifaceted co‐ordination. In electronics, machinery and automobiles, manufacturing and assembly is complex, demand shifts rapidly and technical innovation is continuous. In these circumstances a management system involving a ‘borderless’ structure, custodial leadership, incremental planning and personnel practices which foster competition among peers, hard work and commitment is effective. Western firms can benefit by adapting some aspects of Japanese practices.
Letter from Heerlen
Authors: Colemont Patrick
Published: October 2006

1995 promises to become a sparkling year in the development of the European Association for Creativity and Innovation. Patrick Colemont, director of E.A.C.I., invites you to clink a glass and to propose a toast for success.
Brand Legitimation and the Innovation Process
Authors: Michell Paul C. N. , Swanston Peter , Mandry Gordon
Published: October 2006

A new model is advanced to explain the adoption and diffusion of niche products into consumer markets, comprising a Discovery and Legitimation construct and related double S‐shaped life cycle. The Discovery phase characterises branding as a two‐way process with consumers imposing their own values on brands as well as brands communicating values to customers. Legitimation occurs when a brand has values that are in harmony with those of its customers, including a distribution and social context. In the proposed double S‐shaped life cycle, products undergo an unusually long introductory phase, during which they are discovered by a relatively small number of ‘discoverer’ consumers. Personal influence and word of mouth further diffuse the product at which point growth is constrained by limited distribution and promotion. Subsequently, the brand extends distribution and utilises mass communication to gain access to the mainstream market. An outline of the process in action is offered.
Would You Want Machiavelli as your CEO? The Implications of Autocratic versus Empowering Leadership Styles to Innovation
Authors: Wagner Cynthia K.
Published: October 2006

The trend towards lessened hierarchy in business organizations is key to fostering the continuous innovation upon which competitiveness depends. Models of corporate leadership appropriate to this new organizational reality are not yet in place: business practitioners and scholars have questioned whether company leaders are recognizing the need to move away from traditional autocratic approaches towards styles that empower the modern knowledge worker. But what do autocratic and empowering leadership styles entail? And what do they imply to the manners in which corporations are controlled, not only by management, but by various stakeholders? Perhaps the corporate leadership of the future can learn from the past. The 15th century political theorist Niccolo Machiavelli and the ancient Chinese philosopher Lao‐tzu represent archetypes of these leadership styles. When the two are compared in light of the control methods they elicit from employees, shareholders, and the government it becomes evident that the Machiavellian style attracts the very control it attempts to shun. The goals of the Taoist leaders, in contrast, are consistent with those of stakeholders; and many of the attributes of the Taoist approach are more suited to innovative climates. Theories of organizational learning offer insight into how the transition to a more empowering style might be accomplished.
The Competitive Innovator
Authors: Cross Nigel , Cross Anita Clayburn
Published: October 2006

The study reported here is of an engineer who has established a long and distinguished record as a highly successful and highly innovative designer in a highly competitive environment ‐ Formula One racing car design. Gordon Murray joined the Brabham racing car team as a designer‐draughtsman in 1971, and was appointed chief designer in 1973. Brabham cars designed by him were driven by Nelson Piquet to win the World Championship in 1981 and 1983. In 1987, he moved to the McLaren Formula One team as technical director, and again his car designs, driven by Alain Prost and Ayrton Senna, won the World Championship in 1989 and 1990. In some 20 years as a Formula One designer, he established an outstanding reputation not only as a successful designer (over 50 race wins) but also as a consistently radical innovator. Gordon Murray then became technical director of McLaren Cars Limited, and became responsible for the design and development of a completely new, road‐going ‘super car’ ‐ the McLaren F1, which has attracted immense attention as the ‘ultimate’ motor car.
Participation and Creativity: New Forms of Suggestion Schemes in Sweden
Authors: Ekvall Göran
Published: October 2006

The idea of the suggestion scheme, its role and evolution, can be suitably examined in light of certain distinct mental models or currents of thought in industry and working life. Different perspectives can then be brought to bear on the subject.
Innovation through Performance Analysis: Teambuilding and the Development of Performance Indicators
Authors: Campbell Donald J. , Campbell Kathleen M. , Chia Ho‐Beng
Published: October 2006

Although the research literature has long recognized performance appraisal as an important individually‐oriented development tool, the developmental benefits of performance evaluation at the work‐unit or group level have generally been overlooked. This paper examines these benefits, emphasizing particularly the team‐building potential inherent in developing and using a set of appropriate, unit‐level performance indicators. The problems related to the development of such indicators, and methods for minimizing these difficulties, are also considered.
An Innovative Tool for Financial Decision Making: The Case of Artificial Neural Networks
Authors: Wood Douglas , Dasgupta Bhaskar
Published: October 2006

Artificial Neural Networks (ANNs) may be seen as examples of a mathematical innovation, providing the latest technique in the toolkit of the financial economist for modelling financial applications. ANNs hold several advantages over earlier statistical and optimisation techniques. These are data driven networks, specially useful for real‐time and critical applications using complex sets of data. This paper describes some examples of current applications in the financial economics area, then gives some idea about how to design and develop neural network applications. The research carried out thus far suggests that ANN models offer improved results in capturing the transitory and non‐linear relationships within globalised financial markets.
Letter from Heerleen: A matter of mutual objectives
Authors: Kune Hank
Published: October 2006

E.A.C.I.'s corporate liaison sees co‐operation and communication amongst members as one way in which to realize mutual objectives. Exploring these objectives is one of the points on the agenda this autumn in the Association's first corporate Podium.
Innovativeness of Research Personnel: A New Interactional Model
Authors: Elango B. , Jawahar I. M. , Meinhart W. A.
Published: October 2006

This article highlights the existence of systematic differences among organizational participants, and focuses on one distinct group of organizational participants, namely R & D personnel. An interactional model is then proposed. The model acknowledges the unique characteristics of research personnel, and describes the environment most likely to foster and enhance creativity and innovation of research personnel. Based on past research and the model, guidelines useful to managers of research personnel are offered throughout the article.
Computer Produced Mind‐Maps, Rich Pictures and Charts as Aids to Creativity
Authors: Proctor Tony
Published: October 2006

Good communication and shared understanding between executive teams are extremely important. Teams have to find ways to present increasing amounts of information to one another effectively. Techniques which help people to make better use of information, help discussion and debate, and aid clarity of communication are invaluable. Computer assisted creativity tools employing graphical representations have much to offer individuals and groups working on problems or trying to structure their thinking. They provide a stimulus which is absent when using conventional thinking. The paper provides a review of a selection of these creativity enhancing tools.
Building a Vision ‐ A Practical Guide
Authors: Forsth Leif‐Runar , Nordvik Bodil
Published: October 2006

Vision building is as old and natural as man himself. Vision building has become an effective means for individuals and organizations to set and achieve goals. A practical step by step guide to building a vision is presented, which was originally designed for building visions in groups and organizations, although with some modifications may also be used for generating individual visions.
Managerial Perspectives on Organizational Learning
Authors: Karagozoglu Necmi
Published: October 2006

How do managers build an effective learning organization capable of achieving a sustainable competitive advantage? Discovering the answer to this question is today's and tomorrow's challenge for top managers. The concept of organizational learning is elusive and multifaceted. Although there are numerous writings on this topic, action‐oriented perspectives ‐ much needed for operational guidance ‐ have received limited attention. Focusing on this gap, the present article proposes an action‐oriented framework of organizational learning and, using this framework, explores the perspectives of twenty‐three top managers on implementing organizational learning.
Innovation, Creativity and Information Behaviour
Authors: Hauschildt Jürgen
Published: October 2006

The inventors of creativity techniques, such as brainstorming, brainwriting, synectics, bionics, and morphological analysis, leave no doubt about the effectiveness of these instruments for generation of new ideas. But definite empirical proof is still lacking. We argue that differences in assessing the creativity techniques exist as a result of ignoring difficulties of users in coping with information behaviour. Most of the structures neglect the problem of information overload. They favour uncontrollable information generation and processing. This leads mainly to slogans, catch‐phrases, and aphorisms. Complex follow‐up work is required. We argue that an optimal fit is needed between the problem to be solved and the respective creativity technique.
Beyond Innovators and Imitators: A Taxonomy of Entrepreneurs
Authors: Manimala Mathew J.
Published: October 2006

In an earlier study of the policy orientations of innovative entrepreneurs, it was observed that there were considerable variations within the high‐innovation and low‐innovation groups identified for the purpose of comparing policy orientations. The possibility of identifying sub‐types within the two groups was apparent and therefore the sample was subjected to cluster analysis. The most interpretable clusters were obtained when the two groups were clustered separately on the basis of the innovators’ orientations. Seven sub‐types were identified within the high‐innovation group which were named as inventor/tinkerer, adventurer, searcher/problem‐solver, gap‐filler, social visionary, opportunity‐grabber, and specialist pioneer. The low‐innovation group, on the other hand, got grouped into six sub‐types which were named as chance entrant, agent‐turned producer, concession‐grabber, obsessed producer, ancillary/imitator, and non‐pioneer niche holder. Some observed similarities among the sub‐types of low and high innovation groups may be interpreted as offering empirical support to the theory that all entrepreneurs are innovators, with the differences being explained as those of degree. Common entrepreneurial subtypes were hypothetically identified on this basis. Alternatively, it could be proposed that innovativeness is a moderating variable which has a transformational impact on the basic entrepreneurial sub‐types.
Thinking Creatively About Creativity: What Can We Learn From Recent Developments in the Philosophy of Science?
Authors: De Cock Christian
Published: October 2006

Some time ago the Hungarian scholar Istvan Magyari‐Beck (1994) published a challenging article in this journal indicating weaknesses in creativity research which sparked off responses from the American scholars Teresa Amabile (1994) and Scott Isaksen (1995). While Magyari‐Beck applied familiar themes from the history of science, this article borrows extensively from the latest thinking in the philosophy of science, thus continuing the debate started by Magyari‐Beck at the ontological and epistemological plane. The contribution of this article lies in the fact that it uncovers some basic assumptions researchers hold about the nature of the (social) world and ways they can obtain knowledge about that world. As such it challenges orthodox ideas about “good” research and theory building.
Person: Innovation Styles Profile of IS Personnel vs Other Occupations
Authors: Miller William C. , Couger J. Daniel , Higgins Lexis F.
Published: October 2006

W. C. Miller's Innovation Style Profile (ISP) instrument was used to collect data from IS personnel to compare the innovation styles of IS personnel with those in other occupations. Analysis of the results revealed significant differences. Knowledge of these differences should enable teams comprised of IS personnel and user personnel not only to better tolerate their differences but to better appreciate the value of multiple approaches to innovation.
HOW LONG DO CONGRESSMEN STAY IN OFFICE?*
Authors: Reed W. Robert , Schansberg D. Eric
Published: October 2006

This paper develops a methodology for calculating the expected completed lengths of U.S. congressmen's stays in office. In addition, it demonstrates how this methodology can be used to forecast the seniority structure of future Congresses. One of the major empirical findings of this paper is that it demonstrates the deficiencies of using “mean term” to make inferences about the expected length of congressmen's stays.
ARE EFFICIENCY IMPROVEMENTS IN GOVERNMENT TRANSFER POLICIES SELF‐DEFEATING IN POLITICAL EQUILIBRIUM?*
Authors: Wilson John Douglas
Published: October 2006

This paper studies an election game between two politicians, in which each provides income transfers to special‐interest groups in return for political contributions. It is shown that a move to a more inefficient form of transfers may lower the total excess burden created by these transfers, because the politicians are induced to reduce their provision of transfers. For the case in which the income transfers are indirectly provided as trade protection to import‐competing industries, a switch from production subsidies to tariffs as the form of protection reduces the equilibrium level of excess burden and makes both politicians better off.
INTERNATIONAL TRADE BARGAINING AND THE MOST‐FAVORED‐NATION CLAUSE*
Authors: Ludema Rodney D.
Published: October 2006

This paper advances a model of multilateral trade negotiations to analyze the effects of the most‐favored‐nation clause (MFN) on international trade agreements. Negotiations are modeled in a three player, non‐cooperative, dynamic bargaining framework that admits the possibility of both bilateral and multilateral agreements. The central result is that bargaining in the presence of MFN results in Pareto efficient, mutually advantageous, multilateral trade agreements. The free‐rider problem commonly attributed to the presence of MFN does not arise, and, under a condition of symmetry, each country receives equal gains (or reciprocity) from the agreement. In the absence of MFN, many of these properties may not hold. Examples are given in which at most two of the three countries benefit from agreement. These results suggest that many of the criticisms levied against the MFN clause are misplaced; moreover, attempts to replace unconditional MFN with conditional MFN may sacrifice many of the long‐held values of the GATT.
EVALUATING RATIONAL PARTISAN BUSINESS CYCLE THEORY: A RESPONSE*
Authors: Alesina Alberto
Published: October 2006

In a recent article published in this journal Steven Sheffrin presented the results of two tests on the so called “Rational Partisan Theory”. Sheffrin concluded that the evidence provides “little support for a strict interpretation of the theory”. This note argues that, although interesting in itself, the tests performed by Sheffrin are not particularly informative about the empirical relevance of the Rational Partisan Theory. Also, this note reconciles Sheffrin's results on OECD economies with the literature, which, in general, has found rather supportive evidence for the Rational Partisan Theory.
SCREENING FOMC MEMBERS FOR THEIR BIASES AND DEPENDABILITY
Authors: Havrilesky Thomas , Gildea John
Published: October 2006

This paper develops conjectures regarding the process by which the President as a principal selects Federal Reserve Governors and Bank Presidents as his agents on the Federal Open Market Committee (FOMC). It first establishes that FOMC members can be grouped into sets which are marked by ease and tightness biases in voting behavior. It then identifies certain career characteristics of FOMC members which are correlated with each of these biases. The paper goes on to isolate reliable partisan subsets within the ease and tightness sets and identifies a career characteristic which is highly correlated with membership in these subsets; that characteristic is a career as an economist.
ON THE CONCEPT OF POWER IN ECONOMICS
Authors: Bardhan Pranab
Published: October 2006

In this paper we start with the standard definition of power and indicate how orthodox neoclassical economics fails to handle some of the key issues of power. In Sections II and III we discuss in the context of recent advances in economic theory some of the battlefields, so to speak, for the exercise of power: bargaining games in Section II and economic organizations and capitalist authority relations in Section III. In all of this we focus on the underlying structural factors. In the last Section we discuss some problems with both the behavioral and structural concepts of power.
INSTITUTIONAL STRUCTURE IN THE POLITICAL ECONOMY OF PROTECTION: LEGISLATED V. ADMINISTERED PROTECTION
Authors: Hall H. Keith , Nelson Douglas
Published: October 2006

In endogenous tariff theory the outcome of the political process (the tariff) is a strictly private good from the perspective of the specific‐factors in an industry. That is, the benefits from participation in the political process are fully captured by the participant group. We argue that this is an institutional assumption by showing that an alternative, administered protection, involves the enforcement of a rule that, once written, is applied to all industry groups, where applicable. Attempts to increase protection therefore result in benefits to all import competing industry groups. In a short‐run neo‐classical model of trade with no intermediate goods, you therefore get a political free rider problem that you do not get with legislated tariffs. Further, it is argued that the distinction between these forms of protection is of both empirical and philosophical relevance.
GATT, DISPUTE SETTLEMENT AND COOPERATION*
Authors: KOVENOCK DAN , THURSBY MARIE
Published: October 2006

This paper analyzes GATT and its dispute settlement procedure (DSP) in the context of a supergame model of international trade featuring both explicit and implicit agreements. An explicit agreement, such as GATT, may be violated at some positive cost in addition to retaliatory actions that might be induced by the violation. We interpret this cost as arising from “international obligation”, a phenomenon frequently mentioned in the legal literature on GATT. We focus on how international obligation affects two aspects of GATT‐DSP: unilateral retaliation and the effect of inordinate delays in the operation of DSP.
THE REVELATION OF INFORMATION THROUGH THE ELECTORAL PROCESS: AN EXPLORATORY ANALYSIS*
Authors: Harrington Joseph E.
Published: October 2006

This paper investigates the incentives for candidates to make informative campaign speeches concerning their policy intentions. Electoral competition is modeled as a game of communication in which candidates’policy preferences are private information and they compete by making pre‐electoral policy announcements. An equilibrium is shown to exist in which candidates reveal their true policy intentions. We find that campaign messages are more likely to be informative, the less powerful is the elected office, the more attractive are candidates’opportunities outside of office, and the more uniform are candidates’prior beliefs as to the median voter's preferred policy.
WHY DOES A TWO‐PARTY SYSTEM EXIST?: A NEW ECONOMIC EXPLANATION*
Authors: Fukuda Shin‐Ichi
Published: October 2006

The purpose of this paper is to present a new economic explanation for why a multiple‐party system can endogenously arise as a result of the electoral process. The traditional view on the electoral process (i.e., the median voter theorem) is that political parties that pursue policies in the interest of the median voter are led to a convergence of policies. However, this view cannot explain why either conservative or liberal parties win election in many democratic countries. In order to explain this paradox, the following model considers an economy with three types of parties: conservative, middle, and liberal parties. In the model, the policy of each party is assumed to be time‐consistent, so that the policy of the middle party generally leads to suboptimal outcomes for the majority voters. Thus, the “rational” majority voters try to elect the political party whose objective is biased. As a result, the electoral process may lead to a two‐party system where both conservative and liberal parties have a chance to win election.
ANARCHY, UNCERTAINTY, AND THE EMERGENCE OF PROPERTY RIGHTS
Authors: WÄRNERYD KARL
Published: October 2006

This paper investigates whether Lockean first claimer property rights should be expected to emerge in anarchy. Individuals behind a veil of uncertainty about their future wealth decide independently whether to commit to using fcrce. Neither the contractarian hypothesis that a thicker veil of uncertainty supports more co‐operation nor Demsetz's hypothesis that well‐defined property rights emerge as the value of the externality from not having private property increases is unambiguously implied by the model.
REDISTRIBUTIVE TAXATION WITHOUT EXCESS BURDEN*
Authors: RODRIK DANI
Published: October 2006

Redistributive taxation imposes no excess burden when: (a) the taxed group behaves collusively and takes into account government behavior, and (b) the redistribution outcome is an interior solution (i.e., after redistribution the government values a marginal dollar of income to each class equally). There is no dynamic inconsistency in capital taxation under the same conditions.
THE POLITICAL ECONOMY OF EUROPEAN MONETARY UNIFICATION: AN ANALYTICAL INTRODUCTION
Authors: EICHENGREEN BARRY , FRIEDEN JEFFRY
Published: October 2006

European monetary unification (EMU) ‐ the creation of a single European currency and a European Central Bank ‐ is both an economic and a political phenomenon. Yet few studies have attempted to address simultaneously the political and economic dimensions of the process. In this introduction, we review and extend the relevant literatures. The evidence leads us to conclude that EMU is driven mainly by political rather than economic factors, although our understanding of even these political forces remains incomplete.
EXIT, VOICE, AND PORTFOLIO CHOICE: AGENCY AND PUBLIC OWNERSHIP*
Authors: PUTTERMAN LOUIS
Published: October 2006

This paper asks what constrains the relative efficiency of a maximally decentralized form of public ownership of capital. It locates the answer in the nondecentralizability of common ownership. Relative inefficiency in the allocation of investment funds is predicted because the ability to arrange a private portfolio gives rise to incentives to investigate investment alternatives and to monitor the disbursers of investment funds, and these incentives cannot be replicated in a system in which (political) voice is the sole mechanism for instilling financial and managerial accountability. Implications for the design of public ownership systems are discussed.
BUREAUCRACY AND TIME CONSISTENCY*
Authors: HAAPARANTA PERTTI , PUHAKKA MIKKO
Published: October 2006

We construct a model that takes seriously the role of bureaucracy in the characterization of time‐consistent policies. We argue that if the possibilities for governments to reduce the size of bureaucracy are limited, bureaucracy can be used as a means for influencing future governments. We show that the political process has implications for the size and growth of bureaucracy. Parties in power may hire bureaucrats of the opposite political color. This is a part of the time‐consistent policy. Our model also gives an explanation for the growth of bureaucracy. This is a consequence of the time‐consistent policies, i.e. policies that partially tie the hands of future governments. We also show that if public sector production is inefficient, the public sector will be too large in the long run. In the short run it may be too small.
POLITICALLY REALISTIC IMPLEMENTATION WITH INSPECTION: THE EQUITY‐HONESTY‐WELFARE TRADE‐OFF
Authors: ORTUÑO‐ORTIN IGNACIO , ROEMER JOHN E.
Published: October 2006

We study dominant strategy mechanisms where the planner knows the distribution of types and the agents are instructed to announce their types to the planner. It is assumed that the planner has access to a technology of inspection which is costly but perfect, and that he can penalize an agent who is inspected after announcements have been made if he is found to have lied about his type. It shall be shown that, in general, the welfare‐maximizing mechanism that respects minimal equity will induce some agents to lie about their types.
SCHATTSCHNEIDER REVISITED: SENATE VOTING ON THE SMOOT‐HAWLEY TARIFF ACT OF 1930
Authors: Cupitt Richard T. , Elliott Euel
Published: October 2006

While scholars have devoted considerable attention to U.S. trade policy in the 1930s, particularly the Smoot‐Hawley Tariff Act of 1930, little quantitative research focuses on the factors impinging upon elite decision makers who shaped Smoot‐Hawley. We look at 11 votes on the Senate floor related to Smoot‐Hawley to examine the impact of a variety of measures of constituency economic interests and member characteristics on elite decision making. Contrary to our expectations, the evidence does not support a pressure group model of policy making. We conclude by emphasizing the importance of political parties in making the Tariff Act of 1930.
ENDOGENOUS TRADE POLICY: A TIME‐SERIES APPROACH*
Authors: Rama Martín
Published: October 2006

This paper provides a time‐series analysis on the relationship between the extent of endogenous trade policy and both political and economic variables. The chosen trade policy indicator is the number of foreign‐trade regulations passed each year for the benefit of a single firm or industry. The data are from Uruguay, 1925–1983. This country, which experienced an impressive economic decline, is an outstanding example of the rent‐seeking society. The paper shows that endogenous regulations increased with discretionary policies, with adverse macroeconomic shocks and under dictatorship. It also shows that these regulations had a negative long‐run effect on the growth rates of output and exports. The short‐run effect was positive however.
PREFERENCES FOR STATE TAX AND SPENDING POLICIES: EVIDENCE FROM SURVEY DATA ON THE ROLE OF INCOME
Authors: Temple Judy A. , Porter‐Hudak Susan
Published: October 2006

Employing a commonly‐used method of creating a continuous income variable from categorical data, we obtain results from a fiscal survey that reveal a strong nonmonotonic effect of income on the willingness to pay additional taxes for state expenditures on education and public aid. The existence of income‐demand schedules that are U‐ or inverted U‐shaped casts doubt on the appropriateness of assuming that the median income voter is decisive. After investigating the sensitivity of our results to different income measures, we suggest that fiscal surveys should be designed to provide sufficiently detailed information about respondents’incomes, especially for high‐income respondents.
DO GOOD OR DO WELL? PUBLIC DEBT MANAGEMENT IN A TWO‐PARTY ECONOMY*
Authors: Milesi‐Ferretti Gian Maria
Published: October 2006

Governments facing elections may strategically manipulate policy instruments in order to increase their re‐election chances. The incentives for strategic manipulation are studied in the context of a debt management model, in which two parties with different inflation aversion compete in elections. It is shown that the inflation‐averse party may issue nominal debt in order to make its opponent “look bad” to voters, thus getting closer to the median voter. Nominal debt artificially enlarges the ex‐post inflation tax base, causing higher inflation. Conversely, an inflation‐prone government may issue indexed debt in order to reduce inflation incentives.
STRATEGIC LOBBYING BY POTENTIAL INDUSTRY ENTRANTS*
Authors: Glazer Amihai , Konrad Kai A.
Published: October 2006

A firm which lobbies government for a change in policy, say an import tariff, can increase its profits in two ways. First, the policy can increase the profits of all firms in the industry. This effect therefore involves a free‐rider problem. Second, a firm's lobbying expenditures may signal other firms about its costs and interests. For example, a firm with low marginal costs may profit much from an import ban. Other firms which see that this firm expects to profit much from the ban may decide not to enter the industry. This may further increase the low‐cost firm's profits.
THE RATIONALLY SHRINKING UNION
Authors: Nalebuff Barry , Sansing Richard
Published: October 2006

We analyze a voting model in which a democratic monopoly labor union rationally shrinks towards zero over time. In our model, preferences are not single‐peaked so that this shrinkage may occur in spite of objections by the median voter. We characterize the wage‐employment path as a function of the time horizon and the discount rate. We show that the employment path is independent both of the labor demand curve and of the workers’utility functions.
IS THERE A “CULTURE OF SPENDING” IN CONGRESS?
Authors: Aka Arsene , Reed W. Robert , Schansberg D. Eric , Zhu Zhen
Published: October 2006

This study empirically tests the “Culture of Spending” hypothesis (Payne, 199la). According to this hypothesis, the longer congressmen stay in office, the more likely they are to support federal spending. Spending behavior in this study is measured by the National Taxpayers Union (NTU) Congressional Spending Score. Samples are drawn from annual spending scores for all U.S. representatives and senators who served in office between 1975 and 1993. This study finds no statistical support for the hypothesis that congressmen have an increasing propensity to support federal spending the longer they stay in office. Furthermore, we are able to explain why other studies obtain results different from ours.
A MODEL OF VOTER CHOICE IN A LIFE‐CYCLE SETTING
Authors: Blomberg S. Brock
Published: October 2006

This paper employs an overlapping generations framework in which voters choose political parties based on the economic shocks faced over their lifetimes. Parties internalize voting preferences and develop platforms based on this information. The resulting equilibrium implies that voters select parties that maximize income in their labor period and that minimize inflation in their retirement period. The equilibrium also has the property that individuals switch their votes between the parties, in the presence of adverse states of nature. These results provide an explanation for post World War II voting patterns in the United States. The paper also provides empirical support for the theoretical findings.
Agency costs, taxes and debt: The UK evidence
Authors: Lasfer M. Ameziane
Published: October 2006

This paper provides an empirical examination of the impact of the corporation tax and agency costs on firms' capital structure decisions. Our evidence suggests that the agency costs are the main determinants of corporate borrowing. Consistent with the agency theory, we find that firms that have fewer growth options have more debt in their capital structure. Moreover, our results show that debt mitigates the free cash flow problem and that firms that are more likely to be diversified and less prone to bankruptcy are highly geared. the negative effect of insider shareholding on leverage disappears, however; when all the agency mechanisms are accounted for. In addition, we find that, in the long run, companies that are tax exhausted exhibit significantly lower debt ratios than tax‐paying firms. However, in the short run, firms' capital structure decisions are not affected by taxation.
The intertemporal volatility structure of Euro CD rates
Authors: Arshanapalli Bala , Doukas John , Lang Larry H. P.
Published: October 2006

In this paper we examine the intertemporal volatility structure of Eurocurrency rates of five different maturities ranging from seven days to twelve months for six Euro CD currency denominations spanning the 1986–1992 period. the analysis used the common ARCH‐feature testing methodology recently developed by Engle and Kozicki (1993). First, the results indicate presence of ARCH effects in the Eurocurrency rate series. This result suggests that modelling of Eurocurrency rates requires the inclusion of time‐varying risk premia. Second, our evidence reveals that short‐ and long‐term Eurocurrency rate series have the same volatility process. the results point out that a common time‐varying volatility process characterises most Eurocurrency rate series across maturities and currency denominations. Hence, the common ARCH results imply that a common time‐varying variance model would be the appropriate specification of the conditional heterscedasticity for most Eurocurrency rates.