bluuebunny/crossref_metadata_2025 huggingface dataset:
Management of scientific institutions NPL 1995–98: the transition from agency to government‐owned contractor operated (GOCO)
Authors: Whelan R.C.
Published: March 2003

The last 10 years have seen a number of changes taking place in the management of publicly funded research institutions. Some have been transferred wholesale to the private sector, some closed and most encouraged to diversify their sources of funding. One management approach is that of the Government Owned Contractor Operated (GOCO). In this approach, the assets of the institute remain in state ownership but the responsibility of managing the institute and its research programmes is passed to a private sector management company. The UK’s National Physical Laboratory (NPL) has been managed under such an arrangement since 1995. NPL is responsible for the physical measurement standards which underpin much of the UK industrial base.

This study, undertaken three years after the change in status, was concerned to identify what changes had taken place and what general management lessons could be learnt which might be applied elsewhere. The study wanted to discover if there had been any change in the ‘values’ of NPL, such as quality, integrity etc., as seen by industry, partner research groups and the research staff at NPL itself. The interviews of staff took place at the end of 1998. The study found that the contract has led to significant savings in the cost of research programmes through the adoption of greatly improved programme formulation processes and better resource management. Better commercial practice in marketing, finance, procurement and general business administration has permitted significant one‐off and on going savings in the costs of operating the facility. Less restrictive recruitment has led to an influx of new, younger, scientific staff bringing in new ideas and values.

At the same time GOCO has not adversely affected the quality of scientific work, diminished the high international standing of NPL or led to significant staff demotivation. But neither has the change made much progress in changing deep rooted cultural factors nor resolving certain internal communication challenges. Improved responsiveness to customers is still an issue. GOCO has undoubtedly started to release the remarkable potential of NPL and has brought into much sharper focus some new challenges. Continuous rapid change is taking place in many of the eventual users of NPL work. Companies are looking for new ways of meeting their needs. This will create science and business opportunities.
The role of taxes in corporate research and development spending
Authors: Billings Anthony , Glazunov Sergei , Houston Melvin
Published: March 2003

This study replicates prior research regarding research and development (R&D) spending by sampling R&D spending for a cross‐section of firms in non‐service related industries. Compustat data for 231 firms from 1992 to 1998 are used to test whether the US Federal tax credit for R&D meaningfully influenced R&D spending of the sampled firms. Firms’ (1) effective rate of R&D tax credit, (2) rate of decay in R&D capital for firms’ primary industry affiliation, (3) financial cost of capital, and (4) marginal tax rate are used to compute firms’ user‐cost of capital for in‐house R&D. Results show that firms that were eligible for the tax credit spent more on R&D than non‐eligible firms as the user‐cost of in‐house R&D increased. These results add further evidence regarding the role of the tax credit in stimulating R&D activity and suggest that a tax credit for incremental research can be used to boost private‐sector R&D spending.
Involving purchasing in new product development
Authors: Nijssen Ed J. , Biemans Wim G. , De Kort Joop F.
Published: March 2003

Purchasing is evolving into a strategic business activity and thus also a potential contributor to the successful development of new products. However, the literature on the involvement of purchasing in new product development (NPD) is sorely lacking. We conducted an exploratory study to investigate purchasing’s involvement in NPD, the drivers of this involvement and the influence on new product success. We conducted telephone interviews with purchasing and NPD managers from 43 firms. The results show that firms differ in the extent to which they involve purchasing in NPD and that higher involvement has a positive effect on NPD performance. R&D managers can use the results to design a more effective purchasing–R&D interface and increase the success of NPD.
The innovation work environment of high–tech SMEs in the USA and Canada
Authors: Bommer Michael , Jalajas David
Published: March 2003

This study examined the climate for innovation and creativity, and related outcome measures, in 31 Canadian and 11 US small– and medium–sized enterprises (SMEs), as assessed by 120 R&D engineers in those firms. Prior studies on the innovativeness of countries have been critical of Canadian firms compared to those in other industrialized countries. Our study tested whether differences existed between perceived climates, creativity and productivity of US and Canadian SMEs. The results indicated that the innovative climates and the perceptions of creativity and productivity of US and Canadian firms are very similar. Furthermore, the most important factors relating to creativity (Challenging Work and Organizational Encouragement) were the same for both the USA and Canada. Our conclusion is that support for innovation in Canadian SMEs is comparable with that of US SMEs. Differences in innovation measured at the national level can probably be attributed to other factors, such as industry structure and the degree of innovation in large firms.
Infanticide and the Right to Life
Authors: Carter Alan
Published: March 2003

Michael Tooley defends infanticide by analysing ‘A has a right to X’ as roughly synonymous with ‘If A desires X, then others are under a prima facie obligation to refrain from actions that would deprive him [or her] of it.’ An infant who cannot conceive of himself or herself as a continuing subject of experiences cannot desire to continue existing. Hence, on Tooley’s analysis, killing the infant is not impermissible, for it does not go against any of the infant’s desires. However, Tooley’s argument in support of his analysis seems to justify, instead, a slightly more subtle analysis—namely, ‘A has a right to X’ is roughly extensionally equivalent with ‘Unless A expresses his or her desire that not‐X, then others are under a prima facie obligation to refrain from actions that would deprive him or her of X.’ But given this analysis, the infant’s purported lack of any capacity to conceive of himself or herself as a continuing subject of experiences implies that we cannot be released from any duty that we might have not to harm him or her. In short, Tooley’s argument in support of his analysis actually implies that infanticide may well be impermissible.
Wright’s Argument from Neutrality
Authors: Kölbel Max
Published: March 2003

In the first chapter of his book Truth and Objectivity (1992), Crispin Wright puts forward what he regards as ‘a fundamental and decisive objection’ to deflationism about truth (p. 21). His objection proceeds by an argument to the conclusion that truth and warranted assertibility coincide in normative force and potentially diverge in extension ( I call this the ‘argument from neutrality’). This argument has already received some attention. However, I do not believe that it has been fully understood yet. In this short paper, I shall assess the cogency of Wright’s objection in some detail. My agenda is as follows. First, I give what I believe to be an adequate rendering of the objection. Secondly, I reveal the real force of the neutrality argument and say thirdly why it does not, as Wright thinks, refute deflationism. Finally, I argue that Wright’s insistence that truth is a ‘substantial property’ is uncongenial to the overall project of his book.
On an Insufficient Argument Against Sufficient Reason
Authors: Vallicella William F.
Published: March 2003

In one of its versions, the principle of sufficient reason maintains that every true proposition has a sufficient reason for its truth. Recently, a number of philosophers have argued against the principle on the ground that there are propositions such as the conjunction of all truths that are ‘too big’ to have a sufficient reason. The task of this article is to show that such maximal propositions pose no threat to the principle. According to what is perhaps the most ‘popular’ version of the principle to sufficient reason (PSR), every true proposition has a sufficient reason why it is true. Peter van Inwagen formulates the principle as follows: ‘for every truth, for everything that is so, there is a sufficient reason for its being true or being so.’ Like many contemporary philosophers, however, he rejects the principle. My purpose here is to show that the main philosophical argument against PSR rests on a mistaken assumption. There is also a ‘scientific’ argument against PSR that turns on considerations of quantum indeterminacy; but that argument lies beyond the scope of this discussion.
Form Without Matter
Authors: Lowe E. J.
Published: March 2003

Three different concepts of matter are identified: matter as what a thing is immediately made of, matter as stuff of a certain kind, and matter in the (dubious) sense of material ‘substratum’. The doctrine of hylomorphism, which regards every individual concrete thing as being ‘combination’ of matter and form, is challenged. Instead it is urged that we do well to identify an individual concrete thing with its own particular ‘substantial form’. The notions of form and matter, far from being correlative, are relatively independent. There is nothing absurd in the notion of form without matter. Matter provides neither a principle of individuation nor a criterion of identity for individual concrete things: their form alone provides both. Finally, a substance ontology which admits also the existence of particular qualities, or tropes, is to be preferred both to a substance ontology which denies the existence of tropes and to a pure trope ontology.
Justification and Relative Apriority
Authors: Geirsson Heimir
Published: March 2003

There is obviously tension between any view which claims that the object denoted is all that names and simple referring terms contribute to propositions expressed by sentences in which they appear and the apparent a posteriority of identity statements containing different but codesignative names. Frege solved the tension by adopting a description theory of names. The direct designation theorist cannot do the same, for that would amount to abandoning the theory. Instead, she has to provide one of two solutions; (a) argue that although Hesperus is Hesperus and Hesperus is Phosphorus express the same proposition their epistemic status differs such that one's justification of the proposition expressed by the former but not the latter is a priori, or (b) argue that both Hesperus is Hesperus and Hesperus is Phosphorus express a priori truths. I will argue for a version of option (a), and that while coreferential names can be freely substituted in simple belief contexts, they cannot be freely substituted in contexts involving justification.
Equality, Priority and Social Justice
Authors: Norman Richard
Published: March 2003

The moral principle of giving greater priority to benefiting people, the less well off they are, has been thought by some to share the plausibility of egalitarianism whilst avoiding the less plausible implications of the latter. This paper argues that the 'priority' principle does have an authentic place in our moral thinking, and that it is distinct from the idea of ‘equality’, but that the latter also has an indispensible role to play. The idea of ‘priority’has its place as the expression of the moral standpoint of benevolent and sympathetic concern. ‘Equality’, in contrast, functions as a conception of social justice, from which it cannot be displaced by the idea of ‘priority’.
Religious Tolerance and Freedom in Continental Europe
Authors: Ibán Iván C.
Published: March 2003

The author analyses the problems faced by Continental Europe's legal systems as a result of the appearance of the so‐called new religious movements. He is of the opinion that the expected change towards the achievement of full legal neutrality regarding the religious phenomena cannot be based on the sole assumption that each and every religion deserves protection. In fact, he considers that any system of equality should be aimed at protecting the legitimate expression of the individual's free will; that is to say, neither a particular religion nor all of them, but the person considered as a citizen, regardless of whether he believes or not.
The Dynamics of Legal Positivism. Some Remarks on Shiner's Norm and Nature
Authors: Navarro Pablo E. , Moreso José Juan
Published: March 2003

In a recently published book, Roger Shiner shows that understanding the fundamental discrepancies between different legal theories is important for a better understanding of law itself. He argues that one of the most important tasks of legal philosophers is to take into account the dynamics or conceptual movements generated by positivism and antipositivism. Our paper intends to show that Shiner's analysis can be developed and modified when other relevant elements are introduced into the universe of discourse. We emphasize the importance of a positivistic conception of legal science. According to Shiner, an adequate theory of law must reproduce the way in which legal norms work in the lives of the participants who accept the law. After analyzing the distinction between norms and norm propositions and the relationship between legal science and the external point of view, we show that legal positivism is not committed to reproducing the internal point of view to law.
The Special Case Thesis. An Assessment of R. Alexy's Discursive Theory of Law
Authors: Pavlakos Georgios
Published: March 2003

Legal Argumentation Theories seek mainly to develop procedures, criteria and principles which can guarantee a proper justification of legal propositions within modern legal systems. In doing this, those theories solicit in general an interconnection between practical reasoning and legal reasoning. This paper refers mainly to what seems currently to be the most elaborate theory of legal argumentation, that is R. Alexy's Theorie der juristischen Argumentation. Although the discussion is mainly concentrated on critical points of R. Alexy's theory, this paper's scope is slightly broader; it attempts to present an overall view of the current discursive theory of law. This is mainly performed through the critical examination of R. Alexy's Special Case Thesis, which seems to raise a handful of counter arguments on behalf of the other proponents of Legal Argumentation. In the first part the special case thesis is presented, as well as the main objections to it. In the second part the validity of the special case thesis is checked against K. Günther's model of practical discourse, which proves to be more elaborate in certain points, when compared with the corresponding model of R. Alexy. In the third part it is shown that the special case thesis can be accepted consistently only if it is combined with a normative theory of law that advocates the interconnection of the concept of law with the idea of right morality. It is further suggested that legal discourse has to be perceived as a special case of a broader moral‐political discourse that “explains” or “justifies” (morally) the various restrictions that the positive legal systems impose on the legal discourse.
Moral Reasons for an Intercultural Criminal Law. A Philosophical Attempt
Authors: Höffe Otfried
Published: March 2003

The internationalization of our societal relations has even had an impact on criminal law. While criminal law previously fell almost exclusively within the scope of the responsibilities of individual states, internationalization has affected the practice of criminal law for a long time now. Neither terrorism nor gun‐running nor drug trade nor child prostitution observe national borders. In such a new frame of cross‐cultural legal problems, the paper shows that—insofar as criminal offences can be justified with universal and human rights arguments, as they usually can—moral reasons for an intercultural criminal law can be given.
Legal Obligation and Aesthetic Ideals: A Renewed Legal Positivist Theory of Law's Normativity
Authors: Culver Keith C.
Published: March 2003

This article supports H. L. A. Hart's “any reasons” thesis (defended consistently from the first edition of The Concept of Law in 1961 to the Postscript to the second edition of 1994) that legal officials may accept law for any reasons, including non‐moral reasons. I develop a conception of non‐moral aesthetic ideals of official conduct which may provide legal officials with reasons to accept and apply even morally iniquitous law. I use this conception in order to rebut Gerald Postema's and Joseph Raz's criticisms of Hart's view, and suggest that my revisions offer reasons for renewed confidence in Hart's account of law's normativity.
The Importance of Storytime in Primary Schools
Authors: Evans Janet
Published: March 2003

Storytime is an aspect of the primary curriculum which is rather under threat, especially in junior classes, as the curriculum becomes squeezed by all the demands which are made upon it. Janet Evans puts forward a convincing case for the retention and use of regular story time sessions.
Teaching Beginning Reading: A Case for Monitoring Feelings and Attitudes?
Authors: Francis Hazel
Published: March 2003

There is a good deal of evidence that children’s feelings about and attitudes towards an activity they do in school can have a considerable bearing upon their success in that activity. Hazel Francis suggests this is true with regard to reading and reports on a study which explored the information teachers could glean from monitoring children’s feelings about reading.
Literacy and Librarians!
Authors: Sperling Sharon
Published: March 2003

With the role of library services in schools under some threat due to funding problems, Sharon Sperling gives a timely reminder of the contribution a public library service can make to the development of children’s literacy.
UnSATisfactory: or How the Reading SATs May Mask the Level of Achievement of Young Early Readers
Authors: Stainthorp Rhona
Published: March 2003

SATs, particularly in Key Stage 1 have always been perhaps the most controversial aspect of the recent curriculum reforms. In this article, Rhona Stainthorp reports her research into the validity and usefulness of the KS1 SATs. Her results make rather worrying reading, suggesting that the reading SATs are very crude measures of children’s reading abilities. As Stainthorp argues, from their results, we actually have no idea how well some children are doing at reading.
Improving Reading: How Pupils’ Views Can Help
Authors: Beresford John
Published: March 2003

As part of a school improvement project involving Enfield LEA and the Cambridge Institute of Education, one secondary school decided to mount a survey of the reading habits of their pupils in Years 7, 8 and 9. John Beresford presents the results of the survey and outlines the use the school made of the findings. In so doing he suggests an approach which could be adopted by any school concerned about its standards of literacy.
Making Phonics Work: its Role within Literacy Acceleration
Authors: Lingard Tony
Published: March 2003

Few people would challenge the need for children to be systematically taught the phoneme‐grapheme correspondences of English as part of their acquisition of literacy – that is, to be taught some phonics. The issue is not whether, but how phonics should be taught. Tony Lingard here makes an excellent case for an approach which stresses analogy and embeds phonics work within a balanced literacy programme.
Newspapers as a reading resource: their impact on boys and on parental involvement
Authors: O’Reilly Jennifer , Alexander Joy
Published: March 2003

This study, carried out in connection with the Newspapers in Education programme, reveals the effectiveness of newspapers as a reading resource in the classroom. Their beneficial effect is especially apparent in the motivation given to boys as readers and to the natural way in which parents, and fathers in particular, can become involved.
Talking into literacy
Authors: Corden Roy
Published: March 2003

In this article Roy Corden explores the view that the meaning of text is something readers construct by talking their way into. He illustrates some of the potential of appropriate, focused and well managed collaborative learning situations where children use their spoken language to develop literary skills and their awareness of language.
Overhead projection in the literacy hour
Authors: Medwell Jane
Published: March 2003

Shared reading and writing have emerged as key teaching techniques in the literacy hour and most teachers are becoming familiar with the use of big books and other kinds of enlarged texts. In this article Jane Medwell suggests some possible ways of using the overhead projector in the literacy hour as a source of shared texts.
Anticipation or Trepidation? Teachers’ Views on the Literacy Hour
Authors: Fisher Ros , Lewis Maureen
Published: March 2003

This paper considers the criticisms made in the press of the National Literacy Strategy prior to its implementation and compares these to comments made by teachers in a questionnaire distributed in the summer term of 1998. These showed that teachers had both positive and negative views about the NLS, that these views were, on the whole, more positive than we had expected and did not necessarily reflect views as put forward in the press.
Predicting Spelling Behaviour in 7 to 11 Year‐olds
Authors: Spencer Ken
Published: March 2003

There is an increasing number of studies which demonstrate that readers in more transparent orthographies than English, such as Italian, Spanish, Turkish, Greek and German have little difficulty in decoding written words, while English children have many more problems. Increasingly, lack of orthographic transparency in English is seen as having a powerful negative effect on the development of reading skills in English‐speaking children. There is evidence that English‐speaking children who fail to acquire reading skills may fall into two distinct categories: those who would succeed in languages, other than English, that have greater orthographic consistency; and, those who would still have problems even with perfect orthographic transparency. The first, larger, group are let down by the interaction of poor teaching methods and an incomprehensible system of orthography.

At Hull University’s Institute for Learning, word factors associated with poor spelling and reading have been identified. We have found three factors which account for the relative ease with which pupils can spell words: frequency of the word in the English language, length of the word, and the presence of “tricky” letters or letter combinations. Data is presented illustrating our predictive model of spelling which enables word difficulty to be calculated from the characteristics of English words. The implications the model has for teaching and learning English is elaborated, with particular reference to the most common 150 words in the English language.
The Reader in the Writer
Authors: Barrs Myra
Published: March 2003

This article discusses the role of reading, especially the reading of literature, in the development of writing. It suggests that the direct teaching of written language features is no substitute for extensive experience of written language. It gives a brief preliminary account of a recent centre for language in Primary Education (CLPE) research project on the influence of children’s reading of literature on their writing at KS2. Through analysis of children’s writing, the project explored the influence of children’s reading on their writing. Its findings highlighted the value of children working and writing in role in response to literary texts. It looked closely at the kinds of teaching which made a significant difference to children’s writing and documented the impact on teachers’ practice of the introduction of the National Literacy Strategy.
Observed in Practice. English in the National Literacy Strategy: some reflections
Authors: Frater Graham
Published: March 2003

This paper arises from survey work in 32 primary schools during the academic year 1999–2000. The first part celebrates good practice, whose roots it finds in effective whole‐school strategies for literacy, and in confident approaches to the NLS. The second part features schools where achievements in literacy, and particularly in writing, are less secure. It suggests that these schools often share a conscientious, but anxious and closely literal interpretation of the NLS framework, and that this hinders the progress of their pupils.
Tariffication of a Distorted Economy: A CGE Analysis
Authors: Kaempfer William H. , Ross Martin T. , Rutherford Thomas F.
Published: March 2003

This paper examines the consequences of the tariffication of a quota when there are several potential distortions present in a country, including domestic monopoly and wage rigidities. It is generally presumed that tariffs are superior to quotas because of their transparency and revenue‐raising attributes. However, in the presence of multiple distortions, liberalization of a single policy instrument may result in net welfare losses. The findings suggest that, in a general equilibrium context, such a liberalization policy will have ambiguous effects upon aggregate domestic welfare in the country undertaking the tariffication.
Evolution in Division of Labor and Macroeconomic Policies
Authors: Zhang Junxi
Published: March 2003

The relative merits of income‐tax and money financing of a constant share of government expenditure in GNP are assessed in a dynamic learning‐by‐doing model with endogenous specialization. It is shown that the mode of the financing policy has real effects, in particular on the speed of evolution in division of labor and the growth rate of an economy. Different government financing methods invoke different effects; as the economy develops, the effectiveness of these policies may vary with the extent of the division of labor. Some of the effects are also found to be substantially different from those in conventional models with exogenous specialization.
Persistence of Dualism in a Closed Economy
Authors: Gangopadhyay Shubhashis
Published: March 2003

The paper builds a two‐sector general‐equilibrium model, with one homogeneous and one differentiated good. The differentiated good has increasing returns to scale. Preferences are nonhomothetic with a hierarchy of wants. Income distribution is determined by the ownership of inputs and endogenous factor prices. The equilibrium properties are derived. Capital accumulation without any change in ownership pattern generates enclaves of prosperity, leaving large sections of the economy unaffected. The comparative static results are interpreted in the light of the experiences of closed, developing economies, like India.
Urban Unemployment, Factor Accumulation, and Welfare
Authors: Yabuuchi Shigemi
Published: March 2003

This paper shows that, contrary to the conventional wisdom, economic expansion (factor accumulation) may be immiserizing in the mobile capital Harris‐Todaro model if scarcity of land is introduced in agricultural production. The effect of factor accumulation on the level of unemployment is examined, and precise conditions for the expected response are derived.
Currency Devaluation and Resource Mobilization: A Computable General‐Equilibrium Analysis of Adjustment in Cameroon
Authors: Amegbeto N. Koffi , Winter‐Nelson Alex
Published: March 2003

Currency devaluations prescribed for many developing countries are usually expected to generate a growth‐stimulating reallocation of resources in favor of export production. Results from a computable general‐equilibrium model of devaluation in Cameroon indicate aggregate growth in export agriculture with decline in some traditional export crops and expansion in specific nontradable food crops. While agriculture and manufacturing expand after devaluation, reduced output from services and construction causes short‐term contraction in aggregate output. Positive growth and trade balance effects are dependent on a major reallocation of labor which has been difficult to achieve in Cameroon.
Rent Sharing, Aggregate Saving, and Growth
Authors: Engel Charles , Kletzer Kenneth M.
Published: March 2003

The paper investigates the effects on saving and growth of the rent sharing between firm owners and workers documented in recent empirical work. In an overlapping‐generations framework, more rent sharing is found to increase growth. This result also holds in a model with a single generation of infinitely lived consumers in which some consumers are patient and save and others are impatient but credit‐constrained and simply consume all their current income. This latter result is surprising since rent sharing effectively redistributes income from savers to nonsavers, yet raises aggregate saving.
Direct Foreign Investment Versus Licensing
Authors: Das Satya P.
Published: March 2003

This paper examines the choice among alternative modes of direct foreign investment, namely, the wholly owned subsidiary (the S option) and joint venture (the J option), vis‐à‐vis licensing (the L option). The focus is on the role of moral hazard, difference in risk attitude and the prospect of the host country’s policy toward the venture. An apparently surprising result is that riskiness of the project is a factor against the J option. Moreover, in the absence of policy intervention, L is dominated by either S or J, whereas if there is an anticipation of policy intervention (i.e., there is a policy moral hazard) L may emerge as the best option.
Rural Labor Markets, Household Composition, and Rainfall in Côte d’Ivoire
Authors: Grimard Franque
Published: March 2003

The complete‐markets hypothesis can be tested by examining whether the quantity of labor demanded by the farm is influenced by the farm’s household composition. There should be no influence if labor markets clear. This assumes, however, that household composition is fixed. This paper suggests that the composition of rural Ivorian households is endogenous by extending Benjamin’s approach (Econometrica, Vol. 60, 1992, 287–322) and considering that the household composition is simultaneously determined with the quantity of labor. If separation does not hold, variables such as rainfall that influence the labor demand will be related to the composition of household.
Banking on the Poor? Branch Location and Nonfarm Rural Development in Bangladesh
Authors: Ravallion Martin , Wodon Quentin
Published: March 2003

The geographic location of banks’ branches is used to test whether they are responding to unexploited gains from nonfarm rural development in Bangladesh. The branch locations of Bangladesh’s Grameen Bank are compared with those of traditional banks. The potential gains from switching out of farming are measured, allowing for heterogeneity in household characteristics conducive to success in nonfarm activities. It is found that many farmers are poorly equipped for success in nonfarm enterprises. Even so, seemingly feasible but unrealized gains from switching are revealed. Grameen Bank is attracted to areas where those gains favor the poor. Other banks appear to put higher weight on gains to those other than the poor.
Wage Determination of a Child Worker: A Theoretical Analysis
Authors: Gupta Manash Ranjan
Published: March 2003

A theory of wage determination of a child worker is presented using the consumption efficiency hypothesis and the Nash bargaining technique. The employer and the guardian of the child play the bargaining game. The model shows some interesting results regarding the split of the wage between the consumption of the child and the income of the guardian.
The Model of a Gender‐Segregated Low‐Income Economy Reconsidered: Evidence from Uganda
Authors: Evers Barbara , Walters Bernard
Published: March 2003

This paper examines Darity’s model of gender‐segregated low‐income agrarian society in light of evidence from Uganda. It identifies three important features of the interactions between men and women which are likely to have economic effects but which are subsumed within Darity’s schematic presentation. It suggests a reformulation of the Darity model in terms of a bargaining framework. This facilitates greater insights into gendered economic processes that otherwise are ignored, and investigation of a wider range of macro outcomes.
International Inequality and Convergence in Educational Attainment, 1960–1990
Authors: Zhang Junsen , Li Tianyou
Published: March 2003

The paper examines the international inequality and convergence of educational attainment from 1960 to 1990. Despite the increasing trend in educational attainment, the gap in educational attainment between the developing countries and developed countries and that between males and females increased in the period. However, the relative dispersion of educational attainment—as measured by the coefficient of variation, the Gini coefficient, or the standard deviation of log average years of schooling—declined consistently during the period by either development or gender status. Decompositions of the Gini coefficient indicate that the development gap and the gender gap were the main components for world inequality in educational attainment in both 1960 and 1990. Educational attainment exhibited b‐ and s‐convergence over the period.
Labor Market Interactions Between Legal and Illegal Immigrants
Authors: Epstein Gil S.
Published: March 2003

The paper looks at the situation of legal immigrants who employ illegal immigrants for various services. This enables the legal immigrants to allocate more time to other work, thereby increasing their earnings. Illegal immigrants employed by legal immigrants may specialize in certain professions and may themselves employ other illegal immigrants. A subeconomy evolves whose sole purpose is the provision of services by illegal immigrants for legal immigrants.
Foreign Factor Ownership and Optimal Tariffs
Authors: Schweinberger Albert G. , Vosgerau Hans J.
Published: March 2003

In the presence of foreign factor ownership tariffs change not only the terms of (goods) trade but also income flows between countries. Assume that only the home country owns factors abroad. Then the optimal tariff is negative if and only if foreign factor ownership entails trade‐pattern reversals. Trade‐pattern reversals are neither a necessary nor a sufficient condition for a negative optimal tariff if the foreign country owns factors in the home country. Changes in the home country’s tariff shift the foreign country’s offer curve. This adds a new dimension to optimal tariff analysis.
Currency Quandary: The Choice of Invoicing Currency under Exchange‐Rate Uncertainty
Authors: Johnson Martin , Pick Daniel
Published: March 2003

Recent studies have derived optimal invoicing strategies for an exporting firm when exchange rates are uncertain. However, these studies fail to explain trade transacted in a third currency (vehicle currency). In this study, we extend existing models to include the possibility that trade occurs in a vehicle currency. We find that under conditions stipulated by existing models, vehicle‐currency invoicing is not preferred. The presence of a competing exporter under imperfect competition, however, can induce vehicle‐currency pricing. This is consistent with trade in many primary commodities dominated by few exporters with many importers but where commodities are not perfectly homogeneous.
Savings, Volume of Trade, and Growth
Authors: Osang Thomas , Pereira Alfredo
Published: March 2003

This paper develops a two‐country dynamic general equilibrium model with endogenous growth to analyze the effects of international trade on steady‐stage growth. The two countries differ both in preferences and in technologies. It is shown first that both countries cannot simultaneously experience increases in consumption growth from trade. It is then shown that trade can increase output growth for both countries if the attitude towards saving matches the change in the terms of trade in each country. A country facing a decline (rise) in its output price grows faster if its intertemporal elasticity of substitution is sufficiently low (high).
Optimal Tariffs with Endogenous Production Location
Authors: Mai Chao‐Cheng , Hwang Hong
Published: March 2003

This paper attempts to examine how the inclusion of economic space affects trade policies and to make a comparison between optimal tariffs with endogenous location and those with exogenous location. In particular, it is shown that the output effect of a tariff change with endogenous location is greater than that with exogenous location if the production function is non‐CRS. Moreover, when the production function is CRS (resp. not CRS), the optimal tariff under endogenous location is the same as (lower than) the one under exogenous location.
Renegotiation‐Proof Tariff Agreements
Authors: Cotter Kevin D. , Mitchell Shannon K.
Published: March 2003

The institutional features of the World Trade Organization motivate the use of renegotiation‐proofness as an equilibrium concept in repeated tariff‐setting games. This paper shows the existence of a renegotiation‐proof equilibrium that reduces tariffs below the noncooperative level. It is found that the one‐shot Nash equilibrium cannot be used as a punishment to support such treaties. Punishments are either Pareto‐efficient or one country barely accepts them. If the punishing country is hurt by the punishment then punishments will be as short as possible. If the agreement tariff levels are not Pareto‐efficient then one country barely goes along with the agreement.
Short‐Run and Long‐Run Dynamics of Exchange Rates with Sticky Prices
Authors: Park Gonyung
Published: March 2003

This paper constructs microfoundations for the nexus between sticky goods prices and exchange rate overshooting. Based on an asset‐pricing model, this paper describes how the exchange rate responds to a monetary shock in the short run and adjusts in later periods to a new long‐run rate. In an environment where goods prices are sticky, the short‐run response of the exchange rate to a monetary shock depends on the elasticity of consumption demand. The long‐run exchange rate always shifts equiproportionately to a monetary shock regardless of the parameter values and is reached many periods after the shock.
Distribution Costs and International Trade: A Ricardian Model
Authors: Bandyopadhyay Usree
Published: March 2003

This paper studies the role of the distribution sector in determining a country’s pattern and terms of trade. The effect of an improvement in distribution technology is analyzed using a Ricardian trade model with an endogenous distribution sector. The results are found to depend on the magnitude of distribution costs relative to manufacturing costs and preference for distribution services in the trading countries. This has important implications for the Structural Impediments Initiative, which maintains that a more efficient distribution sector in Japan would benefit both the USA and Japan.
Imperfect Competition and the Gains from Trade in a Macro Duopoly Model
Authors: Naish Howard F.
Published: March 2003

A general‐equilibrium duopoly trade model is developed. In the micro model, constant‐elasticity market demand curves produce backward‐bending reaction functions. This is combined with a macro analysis in which the real wage is determined competitively, while nominal variables depend on the money supply. Trade can lead to large increases in aggregate output, employment, and real wages. The gains from trade are the result of increases in market size, and greater competition in each market. The benefits of trade are largest when marginal‐cost curves slope downward and the labor supply curve is elastic.
Government Spending and Real Interest Rate in an Open Economy
Authors: Chang Wen‐Ya , Tsai Hsueh‐Fang
Published: March 2003

This paper investigates the dynamic effect of government spending in an optimizing monetary model of an open economy with capital immobility and fixed exchange rates. It is found that a rise in government spending will always lead to a reduction in real interest rates on impact. Moreover, real interest rates can be lower during temporary periods of high government spending. This result is compatible with the observation of low real interest rates during wars.
The Internationalization of the World Economy and its Implication for National Welfare
Authors: Kemp Murray C. , Shimomura Koji
Published: March 2003

There is no generally accepted definition of internationalization or globalization. The present paper offers three alternative definitions, in terms of (i) an enlargement of the set of trading countries, (ii) an enlargement of the set of traded commodities, or (iii) the international sharing of technology. It is shown that if each country adopts a Paretian scheme of internal compensation then internationalization in each sense leaves at least one country better off, and that if international compensation is admitted then internationalization in each sense makes every country better off.
North–South Lending with Moral Hazard and Repudiation Risk
Authors: Lane Philip R.
Published: March 2003

The paper shows that the joint presence of moral hazard and repudiation risk generates an important interaction effect. In order to provide the proper incentives to borrowers, the optimal financial contract under moral hazard calls for all available resources to be paid to the lender in the event of a poor realization for output. Repudiation risk limits the size of this transfer, as the debtor has the option to default. This upper bound on the resource transfer exacerbates the moral hazard problem, reducing lending and the equilibrium level of investment and output.
Convergence Clubs: Some Additional Evidence
Authors: Li Qing
Published: March 2003

The paper shows that the joint presence of moral hazard and repudiation risk generates an important interaction effect. In order to provide the proper incentives to borrowers, the optimal financial contract under moral hazard calls for all available resources to be paid to the lender in the event of a poor realization for output. Repudiation risk limits the size of this transfer, as the debtor has the option to default. This upper bound on the resource transfer exacerbates the moral hazard problem, reducing lending and the equilibrium level of investment and output.
On Terms of Trade and Capital Accumulation
Authors: Guilló María Dolores
Published: March 2003

This paper studies, within an OLG general equilibrium framework, the role of relative factor intensities in determining the relationship between the terms of trade and the capital stock. It shows that a diversified production equilibrium can be characterized by a positive association between these two variables if the investment sector is more labor‐intensive and sector technologies are relatively dissimilar. Therefore, capital accumulation and terms‐of‐trade improvements do not require an import sector growing faster than the export sector when the latter is more capital‐intensive. Large Stolper–Samuelson effects on factor incomes drive the results.
Modeling the Australian Dollar–US Dollar Exchange Rate Using Cointegration Techniques
Authors: Karfakis Costas , Phipps Anthony
Published: March 2003

This paper examines the link between the Australian dollar’s exchange rate and Australia’s terms of trade. The US$/A$ rate is found to be cointegrated with the terms of trade, and the relationship between the two variables appears to be robust. An estimated error‐correction model for changes in the nominal US$/A$ is shown to have reasonable out‐of‐sample predictive powers. Weak exogeneity tests within the Johansen framework indicate highly significant causality running from the terms of trade to the exchange rate but less significant causality running from the exchange rate to the terms of trade.
Grace Periods in Sovereign Debt
Authors: Bac Mehmet
Published: March 2003

This paper presents a theoretical analysis of grace periods in the context of an overhang of external debt creating a tax on domestic investment. The grace period arises as a Nash equilibrium strategy of the creditor in a dynamic, noncooperative game. Its length is shown to depend on the planning horizon of the parties, the discount factor and the growth prospect of the debtor country.
Exchange Rate Uncertainty and the Law of One Price
Authors: Maloney William F.
Published: March 2003

This paper develops a framework for analyzing the impact of exchange rate uncertainty on the Law of One Price. Using the prices of very disaggregated, homogeneous products in a very open economy, Chile, where no institutions exist for hedging exchange risk, it then tests the model in a bivariate GARCH in mean context. Little evidence is found that short‐run exchange rate uncertainty consititutes a barrier to goods arbitrage.
Catching‐up and Regulation in a Two‐Sector Small Open Economy
Authors: Klundert Theo van de , Smulders Sjak
Published: March 2003

Deregulation is often aimed at reducing mark‐up pricing in technologically stagnant sheltered sectors. The paper shows that this may decrease the process of catching‐up and welfare since it shifts resources away from R&D‐intensive tradables sectors. Catching‐up and deregulation are analyzed in an R&D‐based growth model that allows for international capital mobility, trade, and spillovers. Knowledge spillovers raise the productivity of R&D in the exposed sector which results in catching‐up. In the long run, the economy grows at the exogenous world growth rate. Capital mobility speeds up convergence. Temporary shocks have long‐lasting effects as the economy exhibits hysteresis.
Universal Dumping of Homogeneous Products
Authors: Murray Tracy , Turdaliev Nurlan
Published: March 2003

Contrary to predictions from traditional comparative advantage analysis, a class of models with imperfect competition predicts intra‐industry trade in homogeneous goods. Brander and Krugman offer a model with two countries and one firm in each country which generates the outcome that both firms dump into the export market (reciprocal dumping). The present paper determines the extent to which higher dimensionality alters this outcome by introducing a model with several firms in each of several countries. It is shown that dumping is universal. Thus, whenever trade occurs dumping occurs.
International Business Cycles and Exchange Rates
Authors: Zimmermann Christian
Published: March 2003

Models of international real business cycles are not able to account for the high volatility of exports, imports, the trade balance, and the terms of trade. By introducing exogenous exchange rate movements in addition to standard technological shocks, the model presented here comes much closer to replicating the relatively high volatility observed in the data while also improving other moments.
Entry Policy and Entry Subsidies
Authors: Reitzes James D. , Grawe Oliver R.
Published: March 2003

Optimal entry policy is considered in markets served by both domestic and foreign firms. Compared with the prior entry literature, introducing foreign producers as market participants reduces incentives for entry deterrence and enhances incentives for entry subsidization. Incentives are changed because entry produces “terms‐of‐trade” gains. The optimal entry subsidy is analyzed under complete and incomplete information regarding the entrant’s costs. Incomplete cost information creates differences in the optimal subsidy for domestic and foreign entrants, with foreign entrants relatively less subsidized. Domestic entrants with low marginal costs are oversubsidized and those with high marginal costs are undersubsidized.