bluuebunny/crossref_metadata_2025 huggingface dataset:
Alcohol Affects Emotion Through Cognition
Authors: Curtin John J. , Patrick Christopher J. , Lang Alan R. , Cacioppo John T. , Birbaumer Niels
Published: March 2003

Determining how cognition and emotion interact is pivotal to an understanding of human behavior and its disorders. Available data suggest that changes in emotional reactivity and behavior associated with drinking are intertwined with alcohol's effects on cognitive processing. In the study reported here, we demonstrated that alcohol dampens anticipatory fear and response inhibition in human participants not by directly suppressing subcortical emotion centers, as posited by traditional tension-reduction theories, but instead by impairing cognitive-processing capacity. During intoxication, reductions in fear response (assessed via startle potentiation) occurred only under dual-stimulus conditions, and coincided with reduced attentional processing of threat cues as evidenced by brain response (assessed via P3 event-related potentials). The results are consistent with higher cortical mediation of alcohol's effects on fear, and illustrate more broadly how disruption of a cognitive process can lead to alterations in emotional reactivity and adaptive behavior.
Attentional Mechanisms Linking Rejection to Hostile Reactivity: The Role of “Hot” Versus “Cool” Focus
Authors: Ayduk Ozlem , Mischel Walter , Downey Geraldine
Published: March 2003

Drawing on the hot-cool systems analysis of self-regulation, we examined whether attentional focus mediates the negativity of cognitive-affective reactions to interpersonal rejection. The hypothesis was that whereas a hot, arousing focus to representing rejection experiences should increase anger-hostility, accessing the cool system through distraction and distancing should attenuate such responses. Participants imagined an autobiographical rejection experience, focusing either on their physiological and emotional reactions (hot focus) or on the physical setting of the experience (cool focus). Participants in a third condition received no specific attentional instructions. Both implicit and explicit measures showed that hostile thoughts and feelings were attenuated in the cool-focus compared with the hot-focus condition. The findings support the adaptive value of activating a cooling strategy under hot, arousing conditions that otherwise elicit automatic, hot-system responses.
Changes in the Scandinavian Model. From Bureaucratic Command to Interorganizational Negotiation
Authors: Bogason Peter
Published: March 2003

Scandinavian local government is increasingly changing its organizational pattern away from the principles of local centralized bureaucratic control that were held sacred after the reforms of the 1960s and 1970s ‐ reforms that made local government the building block for the welfare ‘state’. Organizational fragmentation is taking place, making room for both new managerial styles similar to those of the New Public Management, featuring contracting out and similar market‐like arrangements, and for democratic initiatives which place service users in command of service institutions. Such developments call for new approaches to the study of local government, approaches that take interorganizational relations more directly into account. Suggestions about such an approach are made, based on studies of intergovernmental relations. Distinctions are made between intergovernmental politics which is concerned with symbolic values linked to the status of an organization, and intergovernmental management where processes of making do are seen as most important. In spite of the managerial fashion for strategic goal‐setting, it is expected that the new political actors are more interested in day‐to‐day results and thus challenge politicians, moving them away from the abstract goals in favour of advancing and monitoring actual accomplishments. This increases the need to understand network relations and, in turn, may yield better understanding on the part of citizens of how local politics and management works.
Implementing Privatization Policies in ‘Next Steps’ Agencies
Authors: Gains Francesca
Published: March 2003

This article examines the implementation of privatization policies in two ‘Next Steps’ agencies. This is discussed with reference to the broader theoretical and empirical questions of how do institutions change and when are political actors constrained in implementing their policy choices. Cortell and Peterson’s framework for explaining institutional change, and the concept of intra‐state policy networks are used to analyse the cases. The differential outcomes identified illustrate how constraints operate and how these may be overcome by strategic actors to produce change. Constraints in these cases arose from fragmentation and dependence in central government, from differing institutionalized beliefs and from the development of intra‐state networks between the departments and agencies. The paper concludes by suggesting that the type of intra‐state networks created through agencification can be seen to have an effect on policy outcomes and are worthy of more detailed research.
The front end of new product development: a Canadian survey
Authors: Murphy S.A. , Kumar Vinod
Published: March 2003

Despite the importance of the early stages of a product's life, very little attention has been paid to empirically testing the activities performed in the front end of new product development. This article presents the results of a survey of 53 individuals from fifteen high technology firms in the integrated circuit board industry. Our study adopts Cooper's (1988) ‘predevelopment’ model consisting of idea generation, product definition and project evaluation stages, and probes the activities undertaken in each stage. Particular activities were found to play pivotal roles in achieving the objectives of each stage. The results present a clarified view of front end activities that can be used as a starting point for adequately preparing products for development and market success.
Improving the management of concurrent new product development using process modelling and analysis
Authors: Haque Badr , Pawar Kulwant S.
Published: March 2003

This paper focuses on how process modelling and analysis using ‘light weight’ technology1 supported by focused group discussions and workshops can improve the ‘concurrence’ and integration within the New Product Development process. This enables managers to improve the management of product design and development through a better understanding of the issues. The paper argues that the traditional changes in human resource management via introduction of multifunctional/collocated teams required by Concurrent New Product Development (CNPD) can be complemented by the introduction of process management, focused on the modelling and analysis of the ‘softer’ organisational issues. A case study of a domestic appliance manufacturer, developing a new product using a collocated product development team, is described to verify the research. The paper concludes by discussing the issues that emerge from this type of approach to performance improvement in NPD management, such as involvement of all team functions, senior management commitment, standardisation of processes, and training in the process management concept including modelling and analysis techniques. The approach proposed allows one to make both tangible benefits, in terms of cost, delivery (lead times) and quality, and intangible benefits, in terms of communication, people empowerment, motivation, and collaboration.
Assessment of hidden and future customer needs in Finnish business‐to‐business companies
Authors: Kärkkäinen Hannu , Piippo Petteri , Puumalainen Kaisu , Tuominen Markku
Published: March 2003

The development of new products should be based on the needs expected to exist even several years ahead – at the moment of market introduction and during the whole lifecycle of the product. To develop successful new products in the toughening business environment, companies should be able to surpass customers’ expectations and to assess emerging customer needs proactively. Early, thorough understanding of the customer’s real needs, including the assessment of hidden and future customer needs and requirements, plays a very important role in the successful development of new products.

The purpose of our paper is to study the assessment of new (hidden and future) customer needs for product development in Finnish business‐to‐business companies. We have carried out a survey in 93 Finnish business‐to‐business companies and SBUs to study their common problems in the assessment of unrecognized customer needs and potentially effective ways in clarifying new customer needs and dealing with important problems. On the basis of the results, we propose several possible ways to facilitate the assessment of unrecognized customer needs.
A basic model for evaluating R&D performance: theory and application in Italy
Authors: Coccia Mario
Published: March 2003

Nowadays the public R&D laboratories have a fundamental role in countries’ development, supporting businesses as they face the technological challenges in the turbulent world scenarios. Measuring the performance of R&D organisations is crucially important to decisions about the level and direction of public funding for research and development. This research considers the public laboratories like systems and develops a mathematical model based on the measurement of R&D activities with k‐indices. The score obtained from the research laboratories evaluation (relev) methodology synthesises in single value financial, scientific and technological aspects. It is an indicator, for R&D manager and policy maker, of performance in relation to other research organisations or in a time series. The method is an instrument of strategic planning and can be used for the improvement of individual activities and the overall performance of public R&D bodies.
The co–evolution of technologies and institutions: a comparison of Taiwanese hard disk drive and liquid crystal display industries
Authors: Hung Shih–Chang
Published: March 2003

In this paper, we examine the different evolutionary processes and outcomes of the hard disk drive and liquid crystal display industries in Taiwan. To this end, we make two general theoretical claims. First, that an appreciation of the globalization of technology is as important as national institutions in understanding industry development in catch–up economies such as Taiwan. Second, in addressing both industrial survival and failure, that national institutions can have either a positive or a negative impact on sectoral activities. Empirically, we show that, in Taiwan, rigid social institutions conflict with the hard disk drive technology. This conflict, in turn, produces obstacles to Taiwanese firms’ search for new markets and skills in hard disk drives. On the other hand, Taiwan’s institutional structures provide a source of technical efficiency and market opportunity for the emerging liquid crystal display trajectory. This, in turn, drives Taiwanese industry towards adopting new practices in the manufacture of liquid crystal displays.
NPD as a sustainable work process in a dynamic business environment
Authors: Olin Tommy , Shani A.B.(Rami)
Published: March 2003

New technologies are having a widespread impact on new product development (NPD)projects. In the telecommunication industry, companies are forced to integrate ‘old’ and ‘new’ ways of working with the utilization of unknown technologies. There is an emerging need to develop sustainable work systems. This paper investigates the complex relationship between NPD and the sustainability of the work systems in which it is organized. A proposed framework for analysis is followed by an examination of a specific NPD project at Ericsson.
Technological collaboration in the korean electronic parts industry: patterns and key success factors
Authors: Kim Youngbae , Lee Kwanghoe
Published: March 2003

This study empirically examines different patterns of collaborative technological development projects and the key success factors (KSFs), using data from 82 projects in the Korean electronic parts industry. The patterns of technological collaboration were categorized into 4 types by two contingency variables: development motive (technology–push or market–pull) and source of initiation (focal firm– or partner–initiated). The bivariate relationships revealed that project characteristics (technological complexity, demand certainty, and financial support of the government), partner characteristics (the level of trust with partners), and collaborative management practices (commitment of the focal firm, and information sharing in the collaboration process) appear to be different depending on the two contingency variables. Each type of collaborative R&D project also had different KSFs. While diverse characteristics like strategic importance, goal compatibility and information sharing with partners are critical for the success of technology–push projects, just only specificity of collaboration process and outcome appears important to the success of demand–pull projects. For focal firm–initiated projects, project characteristics are KSFs, whilst partner characteristics and collaboration management practice are found to be more critical for the success of partner–initiated projects. The findings suggest that the different contingencies such as development motive and source of initiation bring about different patterns of collaborative technology development projects, which in turn lead to a different set of KSFs, since different information, roles of partners and the focal firms, and collaboration management practices are needed to successfully implement the different types of projects. Based on empirical results, this study discusses managerial, policy, and theoretical implications for the collaborative R&D activities taking place in the Korean electronic parts industry.
Historical Contingency
Authors: Ben‐Menahem Yemima
Published: March 2003

The paper provides a new characterization of the concepts of necessity and contingency as they should be used in the historical context. The idea is that contingency (necessity) increases in direct (reverse) proportion to sensitivity to initial conditions. The merits of this suggestion are that it avoids the conflation of causality and necessity (or contingency and chance), that it enables the bracketing of the problem of free will while maintaining the concept of human action making a difference, that it sanctions tendencies without recourse to teleology, and that it recasts the controversy between historicists and anti‐historicists in less dogmatic language.
Searle on Consciousness: or How not to Be a Physicalist
Authors: Palmer Daniel E.
Published: March 2003

In The Rediscovery of the Mind, John Searle offers a novel theory of consciousness that attempts to overcome the traditional debates within the philosophy of mind between dualism and materialism. Searle maintains that one can be a thoroughgoing materialist without denying the existence of mental phenomena that are inherently subjective in nature. In this paper I argue that Searle's view does not so easily bypass the traditional philosophical debate between materialism and dualism, and, indeed, that Searle's attempt to have it both ways is inconsistent. More specifically, I examine Searle's discussion of the causal reducibility of consciousness and his claim that consciousness is just another property of certain biological systems and argue that in both cases Searle has failed to show that consciousness can be both irreducibly subjective and a normal physical feature of the brain.
Normative Force and Normative Freedom: Hume and Kant, But Not Hume versus Kant
Authors: Railton Peter
Published: March 2003

Our notion of normativity appears to combine, in a way difficult to understand but seemingly familiar from experience, elements of force and freedom. On the one hand, a normative claim is thought to have a kind of compelling authority; on the other hand, if our respecting it is to be an appropriate species of respect, it must not be coerced, automatic, or trivially guaranteed by definition. Both Hume and Kant, I argue, looked to aesthetic experience as a convincing example exhibiting this marriage of force and freedom, as well as showing how our judgment can come to be properly attuned to the features that constitute value. This image of attunement carries over into their respective accounts of moral judgment. The seemingly radical difference between their moral theories may be traceable not to a different conception of normativity, but to a difference in their empirical psychological theories – a difference we can readily spot in their accounts of aesthetics.
Explaining Normativity: On Rationality and the Justification of Reason
Authors: Raz Joseph
Published: March 2003

Aspects of the world are normative in as much as they or their existence constitute reasons for persons, i.e. grounds which make certain beliefs, moods, emotions, intentions or actions appropriate or inappropriate. Our capacities to perceive and understand how things are, and what response is appropriate to them, and our ability to respond appropriately, make us into persons, i.e. creatures with the ability to direct their own life in accordance with their appreciation of themselves and their environment, and of the reasons with which, given how they are, the world presents them.

An explanation of normativity would explain the various puzzling aspects of this complex phenomenon. In particular it would explain how it is that aspects of the world can constitute reasons for cognitive, emotive, and volitional responses; how it is that we can come to realise that certain cognitive, emotional or volitional responses are appropriate in various circumstances, and inappropriate in others; and how it is that we can respond appropriately. This paper explores an aspect of the last of these questions.
Moral Incapacity and Huckleberry Finn
Authors: Taylor Craig
Published: March 2003

Bernard Williams distinguishes moral incapacities – incapacities that are themselves an expression of the moral life – from mere psychological ones in terms of deliberation. Against Williams I claim there are examples of such moral incapacity where no possible deliberation is involved – that an agent's incapacity may be a primitive feature or fact about their life. However Michael Clark argues that my claim here leaves the distinction between moral and psychological incapacity unexplained, and that an adequate understanding of the kind of examples I suggest must involve at least some implicit reference to deliberation. In this paper I attempt to meet Clark's objection and further clarify my account of primitive moral incapacities by considering an example from Mark Twain's Huckleberry Finn. What this example shows, I argue, is how our characterization of an agent's response as a moral incapacity turns not on the idea of deliberation but on the way certain primitive incapacities for action are connected to a larger pattern of response in an agent's life, a pattern of response that itself helps to constitute our conception of that agent's character and the moral life more generally.
Choosing Methods
Authors: Baumslag David
Published: March 2003

This paper begins by adopting a broad criterion of scientific methods, in which a method is some practice in science designed to achieve the goals of science; this allows us to deal with a wider range of questions than has been common in much past philosophy of science, and to discuss some of the more detailed methodological questions of concern to scientists. On this definition, apriori approaches prove insufficient, since many methodological questions require some empirical input to be decided. Laudan has suggested that many such questions can be decided by testing methods empirically, but this encounters the problem that the empirical evidence is often indecisive. A more productive strategy is to utilise scientific theories: there are a wide range of these that are relevant to methodological questions and they are easier to validate. But this does not mean that empirical testing has no place. Instead, our experience with methods can be used to detect specific problems with the methods and to modify them accordingly.
Plurality of the Good? The Problem of Affirmative Tolerance in a Multicultural Society from an Ethical Point of View
Authors: Apel Karl‐Otto
Published: March 2003

Starting from the problem of tolerance in a multicultural society, the author undermines the limits of a classical‐liberal foundation (negative tolerance) and suggests the need for a new meaning: a positive concern of tolerance implying appreciation of a variety of social cultures and value traditions. On an ethical level, positive tolerance can be grounded in the Discourse Theory, developing the classical Kantian deontological ethics in a transcendental‐pragmatic and in a transcendental‐hermeneutic sense. In this way, discourse ethics can answer two questions posed by tolerance in a multicultural society: the duty to support all in the pursuit of their ideals and realize positive tolerance as well as its restrictions.
The Influence of the Global Order on the Prospects for Genuine Democracy in the Developing Countries
Authors: Pogge Thomas W.
Published: March 2003

There is much rhetorical and even some tangible support by the developed states for democratisation processes in the poorer countries. Most people there nevertheless enjoy little genuine democratic participation or even government responsiveness to their needs. This fact is commonly explained by indigenous factors, often related to the history and culture of particular societies. My essay outlines a competing explanation by reference to global institutional factors, involving fixed features of our global economic system. It also explores possible global institutional reforms that, insofar as the offered explanation is correct, should greatly improve the prospects for democracy and responsive government in the developing world.
Foreign Policy, Rationality and Morality
Authors: Oppenheim Felix E.
Published: March 2003

To determine the relevance of judgments of rationality and of morality in foreign policy decisions, it is necessary to provide a value‐neutral definition of “the national interest.” This makes it possible to ascertain, in principle, whether a given governmental foreign policy decision is rational with respect to this goal, in turn a necessary means to any government’s ultimate purposes. While it is pointless to judge the pursuit of the national interest itself morally right or wrong, moral judgments are relevant to policies and goals compatible with the national interest. However, moral principles are often invoked to justify the pursuit of this intermediate goal.
Rights and Resources—Libertarians and the Right to Life
Authors: Harris James W.
Published: March 2003

The author addresses Robert Nozick's claim that: “The particular rights over things fill the space of rights, leaving no room for general rights to be in a certain material condition.” Hence Nozick insists that rights are violated if citizens are compelled to contribute to others' welfare, however urgent their needs may be. The author argues that it is characteristic of libertarian theories that they invoke the moral sanctity of private property against welfarist or egalitarian conceptions of social justice. Nozick's version of the libertarian critique has three conceptual pillars–“right,”“thing” and “space.” On that basis Nozick claims that talk of welfare “rights” can be condemned on the plane of rights. This is true, Nozick maintains, even of “the right to life.” The author contends that this argument fails. It equivocates over the idea of “rights”; and it misconceives crucial features of property. Nozick deploys exclusive “domain rights,” whilst attacking “important‐interest rights.” His historical‐entitlement theory fails as a justification of private property. The author argues that, so far as material objects are concerned, private property institutions depend upon trespassory rules which do not impose morally binding obligations unless basic needs are catered for. Furthermore, private property institutions also comprise monetary resources to which the spatial metaphor of exclusive rights does not apply. Holdings vested in any particular person at any particular time are stamped, morally, with a mix of contestable and mutable property‐specific justice reasons. Hence it is fallacious to suppose that ownership rights together exhaust all normative space over “things.”

The major objection to speaking of everyone's having a right to various things such as equality of opportunity, life, and so on, and enforcing this right, is that these “rights” require a substructure of things and materials and actions; and other people may have rights and entitlements over these. [≡] The particular rights over things fill the space of rights, leaving no room for general rights to be in a certain material condition. (Nozick 1974, 238)
Placing Indigenous Rights to Self‐Determination in an Ecological Context
Authors: Hocking Barbara Ann
Published: March 2003

In this paper the author focuses on Australian land management and in particular on the environmental management issues that could have been prompted by the High Court recognition in 1996 (in Wik Peoples v. The State of Queensland) that native title to land and pastoral leaseholdings can co‐exist. Drawing on themes of self‐determination and co‐existence, the paper looks at more specific topics such as aboriginal title to land—what has been called land rights or native title in Australia—and some implications of that for land, sea and resource management. Central to this analysis are competing theories of Aboriginal land management and links between Aboriginal traditional knowledge and conservation of species. These are illustrated through the marine mammal, the dugong. The Australian debates lead to the Canadian debates and then to Scandinavia and the role of the Sami people in protection and management of the Arctic region. Issues of indigenous self determination inevitably provide an overall theme to these discussions. As a matter of global concern, the paper asks, but does not decide, whether indigenous peoples may manage fragile eco‐systems more effectively than outsiders. It maintains that what is important in this context is a broader question. This concerns how culturally inclusive land and resource management can emerge from recognition of indigenous land and human rights and how comparative developments can provide crucial cross‐jurisdictional information for future developments and opportunities in the interests of environmental conservation.
Radbruch and Hart on the Grudge Informer: A Reconsideration
Authors: Mertens Thomas
Published: March 2003

Hart's defense of the separation of law and morality is partly based on his refusal to accept Radbruch's solution of the well‐known grudge informer case, in his famous article “Statutory Injustice and Suprastatutory Law.” In this paper, I present a detailed reconstruction of the “debate” between Radbruch and Hart on this case. I reach the conclusion that Hart fails to address the issue that was Radbruch's primary concern, namely the legal position of the judiciary when dealing with criminal statutes. I suggest that Hart's separation thesis cannot be upheld in the face of this concern. In my argument, Hart's mistaken understanding of the verdict of the Oberlandesgericht Bamberg that he refers to plays a crucial role.
What is Reading? A Literacy Interview with a Five and a Half Year Old
Authors: Neate Bobbie
Published: March 2003

This article presents an analysis of a transcribed video recording of a child being interviewed concerning the nature of reading and her proposed strategies for improvement. Some interesting and amusing answers are given.
The Part which Metacognition can Play in Raising Standards in English at Key Stage 2
Authors: Williams Mary
Published: March 2003

This article explores the role of metacognition in developing literacy at Key Stage 2 and suggests that the ability to extend pupils’ metacognitive awareness deserves to be given a high focus in English teaching, as it is through this that deeper levels of understanding will be acquired. Metacognition can be enhanced by giving pupils an explicit repertoire of techniques to aid their understanding of how are they learning. Examples derived from five research cases reveal how some teachers have tried to achieve this, and the pivotal role which this may play in raising standards in English.
Writing and Role Play: A Case for Inclusion
Authors: Cook Margaret
Published: March 2003

Role play’s relationship to traditional classroom teaching activities is frequently seen as problematic, in much the same way that language learning outside school often has an unexamined relationship with the teaching of school literacy. The small exploratory study described here suggests that planning role play for specific generic purposes and introducing adults as equal players with strong modelling roles, greatly enhances children’s oral and written achievements, and that these can be further developed by introducing an additional teaching intervention. The study’s findings suggest that this kind of role play can be seen as a legitimate way of implementing some parts of the literacy hour, especially in writing, and as a valuable and assessable curriculum activity in its own right.
Re–valuing the role of images in reviewing picture books
Authors: Unsworth Len , Wheeler Janet
Published: March 2003

This paper discusses the narrative role of images in three prize–winning children’s books: ‘The Rabbits’ by John Marsden and Shaun Tan; ‘Joseph had a Little Overcoat’ by Simms Taback; and ‘The House that Jack Built’ by Gavin Bishop. It is argued that the contribution of images to interpretive possibilities of the narrative are typically not sufficiently addressed in reviewing picture books. In dealing with this aspect of images in picture books, an approach to ‘reading images’ as described in the book of that title by Gunther Kress and Thao van Leeuwen is suggested as a productive resource for reviewers and teachers.
The Babu and the Boxwallah: Managerial Incentives and Government Intervention in a Developing Economy
Authors: Basu Kaushik , Ray Tridip , Ghosh Arghya
Published: March 2003

In developing economies a firm’s strategy is directed more often at the government than at other competing firms. As an initial step towards modeling such interactions this paper considers a situation where a government confronts a monopoly. The latter chooses price and maximizes profit and the former chooses a tax rate and maximizes tax revenue. The government and the monopoly can delegate the final decision‐making to, respectively, a bureaucrat and a manager. The incentive equilibrium of the model is characterized. It is shown that this kind of industrial setting is likely to exhibit greater inefficiencies than that which arises in standard models.
Inflation Tax and Substitution Between Domestic and Foreign Assets: Evidence from Central‐Eastern Europe
Authors: Miljkovic Dragan
Published: March 2003

Dominant factors in determining real money holdings in Poland, Hungary, and Slovenia during a transition period characterized by high inflation are analyzed. Two hypotheses are tested. Cagan’s model suggests that inflation‐adjusted money balances are influenced almost exclusively by inflationary expectations. A competing model suggests that under highly inflationary conditions there is an incentive for agents to substitute foreign for domestic assets in their portfolios because of the higher expected return. Inflation expectation is a dominant factor in Poland. The expected return to holding foreign assets dominates in Hungary. Both factors have played important roles in Slovenia.
Taiwan’s Semiconductor Industry: What the State Did and Did Not
Authors: Tung An‐Chi
Published: March 2003

Relative to Korea, Taiwan’s semiconductor sector combines high value‐added, low risk, and an innovative mode of virtual integration, which is adapted to the new world of “fabless” and “chipless” operations, away from the older style of integrated device manufacturers. The rise of this owes much to the catalytic government role which overcomes market failures to launch institutions in each of the five stages of the industry’s evolution, introducing pre‐commercialization research, nurturing industrial clusters, providing venture capital, and spinning off world‐class, privately managed firms as well as attracting the interest of traditional business groups, without ever micro‐managing the development as bureaucratic state enterprises. The state operates in a manner which is both distinctively different from the practice of Brazil, India, Japan, Korea, or Singapore, and also apparently replicable elsewhere.
Pattern of Trade and Economic Development in a Model of Monopolistic Competition
Authors: Sachs Jeffrey , Yang Xiaokai , Zhang Dingsheng
Published: March 2003

The paper introduces differences in production and transaction conditions between countries into a model of monopolistic competition. It applies inframarginal analysis to show that, as transaction conditions are improved, the general equilibrium may jump discontinuously across different patterns of trade and economic development. A country may export a good in which it has exogenous comparative disadvantage if its endogenous comparative advantage dominates this disadvantage. Countries will choose a trade and development pattern to utilize their net exogenous and endogenous comparative advantages in production as well as in transactions.
The Vertical Multinational Enterprise and International Trade
Authors: Konan Denise Eby
Published: March 2003

This paper analyzes an endogenous vertical multinational enterprise by explicitly modeling a distortion in the intermediate goods sector. Firms invest abroad to lower the cost of multistage production. The implications for international trade and investment differ markedly from the conventional wisdom of multinationals. Particularly, intrafirm trade in intermediates implies vertical investment complements rather than substitutes for trade. The decision to become a multinational depends on the level on foreign factor prices, the nature of the competition with foreign suppliers, transport, tariffs, and subsidiary plant costs. Marginal change in tariff may result in unintended welfare jumps as firm configuration shifts.
Competing for Foreign Direct Investment
Authors: Barros Pedro P. , Cabral Luís
Published: March 2003

The paper analyzes ‘subsidy games’ between countries in order to attract foreign direct investment (FDI) from a third country. The winner of this game results from the interaction of two factors, relative country size and employment gains from FDI: a large (or ‘central’) country is more likely to attract FDI, and so is a country with high unemployment. The subsidy equilibrium is compared with two alternative solutions: zero subsidies and first‐best subsidies. It is shown that total welfare may be greater under subsidy competition than under zero subsidies: the gains from efficient location implied by subsidy competition may more than outweigh the losses from higher subsidies. Moreover, departing from subsidy competition to zero subsidies or to first‐best subsidies (without side payments) implies a gain to one country and a loss to the other. This suggests that it may be difficult to reach a consensus to move away from the status quo of subsidy competition.
Trade Liberalization and Technology Choice
Authors: Falvey Rod , Reed Geoff
Published: March 2003

This paper considers the links between trade liberalization and technology choice in the nonliberalizing country. Trade‐liberalization‐induced changes in relative product prices have direct effects on equilibrium relative factor returns. The consequent changes in relative input costs may also lead producers to switch to alternative technologies, which will in turn induce a further indirect change in relative factor returns. Will this indirect affect exacerbate or ameliorate the direct effect on relative factor returns? It is found that this depends on the relative cost savings across sectors and factor cost shares.
Monetary Policy Games and International Migration in a Small Open Economy
Authors: Agiomirgianakis George M.
Published: March 2003

The paper shows that international migration may improve the position of both policymakers and unions in small open economies irrespective of whether they cooperate or not. This result implies that both unions and policymakers in small open economies may welcome a further increase in international labor flow in the future. When allowance is made for real GDP per capital considerations on behalf of the policymaker, it is found that aggressive union behavior may increase the inflationary bias. Aggressive unions may insulate themselves, while soft unions lose. The presence of migration does not necessarily lead to a better outcome.
Nontraded Goods and the Current Account
Authors: Driskill Robert
Published: March 2003

This paper investigates trade balance and current account behavior in response to various shocks when the economy produces and consumes both traded and nontraded goods. Previous analyses of these problems have interpreted current account behavior in terms of tension between parameters that measure intratemporal and intertemporal elasticity, respectively. This paper provides a simple general criterion for whether trade and current account behavior is “perverse”vis‐à‐vis the standard one‐good model results: behavior is perverse if and only if traded and nontraded goods are Edgeworth complements; that is, if the cross‐partial of the instantaneous utility function is positive.
Regional Cooperation among Microstates
Authors: Andriamananjara Soamiely , Schiff Maurice
Published: March 2003

Owing to their low bargaining power and high negotiation costs, microstates face severe disadvantages when dealing with the outside world. Forming a group with neighboring nations might be an effective instrument to address this problem. This paper presents a model in which the decision to form, expand or join a regional club is based on negotiation costs and bargaining power rather than on the traditional costs and benefits of trade integration. The model is used to determine the optimal and the equilibrium group size under various entry conditions. The welfare implications of the entry conditions are also examined.
International Financial Liberalization, Capital Flows, and Exchange Rate Regimes: An Introduction
Authors: Rivera‐Batiz Francisco L. , Rivera‐Batiz Luis A.
Published: March 2003

This introduction to a special edition of Review of International Economics summarizes a collection of articles that originated in a conference on “Is Globalization of Capital Markets a Boost or a Hindrance to Development?” that was sponsored by the Program in Economic Policy Management (PEPM) at Columbia University during 16–17 April 1999.
The Impact of Foreign Direct Investment on Home and Host Countries with Endogenous R&D
Authors: Sanna‐Randaccio Francesca
Published: March 2003

The paper analyzes the impact of FDI on home and host countries, when firms compete both in the choice of international strategy and in R&D. A two‐country, two‐firm model is used. The problem is structured as a three‐stage game in which firms must decide: the mode of foreign expansion; how much to invest in R&D; how much to sell in each market. It is shown that in high‐technology sectors a policy of attracting inward FDI may increase welfare in both the home and host countries. The effect on host‐country welfare is found to be more beneficial if technological spillovers are national, instead of international, in scope.
What You Should Know About Globalization and the World Trade Organization
Authors: Deardorff Alan V. , Stern Robert M.
Published: March 2003

This paper reviews the essentials of economic globalization, as well as the major institution that has recently gotten much of the credit and blame for it, the World Trade Organization (WTO). It first defines globalization, which is just the increasing economic integration of the world economy. It then asks who gains and loses from globalization, drawing primarily upon economic theory to identify its benefits and costs, and who within and among the world’s economies get these benefits and costs. That part of the discussion concludes by asking briefly what can and should be done about globalization. The second half of the paper turns to the WTO, which was the focus of so much negative attention at its Seattle meeting in December 1999. The authors try to clarify several misperceptions about what it does, and why. Some groups gain and some lose from the WTO, some simply as a byproduct of its role in facilitating globalization, but others from particular WTO rules and procedures. The paper suggests what might be done to change both the WTO itself and the public’s perceptions of it.
Current Accounts and Exchange Rates: A New Look at the Evidence
Authors: Leonard Greg , Stockman Alan C.
Published: March 2003

A small literature has developed exploring nonlinearities in exchange rate data. This paper studies bivariate statistical relationships between current accounts, exchange rates, and cross–country ratios of GDP. The analysis differs from previous empirical work on these issues in using nonparametric methods to allow for nonlinearities, in employing a minimum of statistical assumptions, and in focusing on a fundamental characterization of the data. The authors present new evidence on the connections between exchange rates, the current account, and GDP. While the evidence loosely supports some common beliefs about the data, it conflicts with some common theoretical models. Thus the results pose new challenges for theory.
Economic Incentives and the Demand for Higher Education
Authors: Fredriksson Peter
Published: March 2003

To what extent do economic incentives affect the demand for higher education? This question is addressed by means of a time‐series analysis of the demand for university education in Sweden. The bulk of the variation in the fraction of qualified individuals enrolled at universities is attributed to fluctuations in the university wage premium. Furthermore, relative employment prospects for university graduates and variations in the generosity of the study allowance scheme appear to be of importance for the enrollment decision.
Pitfalls in the Theory of International Trade Policy: Concertina Reforms of Tariffs, and Subsidies to High‐Technology Industries
Authors: Neary J. Peter
Published: March 2003

This paper explores the links between international trade theory and the practice of trade and industrial policy in open economies, with special attention to three areas where theoretical lessons have been misunderstood in policy debates. I argue that the “concertina rule” for tariff reform justifies reductions in high tariffs but not moves towards uniformity and particularly not increases in low tariffs. I show that the basic principles of tariff reform are the same in unilateral, multilateral and customs union contexts. Finally, I suggest that the theory of strategic trade policy does not justify subsidies to high‐technology industries.
International Competition for Multinational Investment
Authors: Haaland Jan I. , Wooton Ian
Published: March 2003

We examine the economic justification for providing investment subsidies to foreign‐owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering subsidies to multinationals may be in the national interest if the investment raises the net value of domestic production. When agglomerative forces are sufficiently strong, a subsidy that attracts the first foreign firm may induce several to enter, establishing a thriving modern sector. With a limited number of foreign enterprises, countries may compete to attract investment. This subsidy competition transfers much of the rents to the multinationals.

JEL classification: F12; F23
Is it Harmful to Allow Partial Cooperation?
Authors: Beaudry Paul , Cahuc Pierre , Kempf Hubert
Published: March 2003

In economics, politics and society, examples abound in economics, politics and society where agents can enter partial cooperation schemes, i.e., they can collude with a subset of agents. Several contributions devoted to specific settings have claimed that such partial cooperation actually worsens welfare compared to the no‐cooperation situation. Our paper assesses this view by highlighting the forces that lead to such results. We find that the nature of strategic spillovers is central to determining whether partial cooperation is bad. Our propositions are then applied to various examples as industry wage bargaining or local public goods.

JEL classification: C72; E62; J5
The Saving Behaviour of a Two‐person Household
Authors: Browning Martin
Published: March 2003

The facts that wives are typically younger than their husbands and that women typically live longer than men imply that wives may have more incentive to save for old age than do husbands. A theoretical model of the determination of household saving and portfolio choice is introduced which takes into account differences in preferences for saving. The most important result is that the level and the composition (portfolio) of saving and the time path of consumption are dependent on the distribution of income within the household.

JEL classification: D1; D7
Risk‐sharing and Growth: The Role of Precautionary Savings in the “Education” Model
Authors: Femminis Gianluca
Published: March 2003

While the “risk amelioration” literature suggests that risk‐sharing channels savings into risky but productive technologies and hence favours growth, models focused on precautionary savings reverse this conclusion. We solve, by means of numerical techniques, a model based on human capital accumulation through education, and find that the increase in precautionary savings makes labour more productive in the goods sector and draws resources from education, which is the “growth leading” activity. Hence, we establish a result favourable to financial integration, even in a model where precautionary savings play an important role.
Linkages among Interest Rates in the United States, Germany and Norway
Authors: Bremnes Helge , Gjerde Oystein , Sattem Frode
Published: March 2003

The Johansen multivariate cointegration methodology is used to analyze relationships among short‐term and long‐term interest rates in the United States, Germany and Norway. A variance decomposition approach is applied to estimate the proportion of each interest rate's forecast error variance attributable to innovations in the other interest rates. Impulse response functions are plotted to illustrate the speed with which interest rate events are transmitted between capital markets. The analyses illustrate that US interest rates have a significant influence on both German and Norwegian interest rates, while the reverse effect is modest. Norway is also strongly exposed to German interest rate movements, which reflects the consequences of a small country linking its currency to the value of European currencies.
Energy Consumption for Space Heating: A Discrete–Continuous Approach
Authors: Nesbakken Runa
Published: March 2003

Energy demand for space heating is estimated using a discrete–continuous choice model which focuses on the relationship between the choice of heating equipment and energy consumption. The model is estimated on Norwegian micro data, and the two stages of the model are estimated simultaneously. The capital cost and the operating cost of the heating systems are both found to have a significant impact on the choice of heating system. Furthermore, the results show that household characteristics are important variables in residential energy models. Energy price elasticities and income elasticities are also estimated.