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A stochastic framework for coordination of macroeconomic policies is introduced in this paper. It is suggested that: (i) measures of policy accountability should allow for the climate of uncertainty that surrounds policy decisions, and (ii) most models of aggregate economic activity impose arbitrary specifications of uncertainty that do not appear to be empirically justifiable. Ambiguities in interpreting the Humphrey-Hawkins reports of policy authorities are sketched in section II; a proposal for maximizing the ex ante prospects of policy objectives is illustrated in section III; finally, nonstationary allocations of uncertainty are discussed in sections IV and V. This paper provides a brief survey of ongoing work by members of the Federal Reserve Board staff on the role of uncertainty in policy forecasts. It suggests that policy discussion could be improved by more explicit consideration of the allocation of uncertainty. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper discusses the economic analysis of modern rich economies. It argues that standard economic theory acknowledges that it does not apply if there is own‐consumption and/or joint production and suggests that successful economic reforms of the 1980s have used markets to drive down costs in sectors where standard economic theory applies. This process has resulted in a situation where rich country economies are increasingly oriented to sectors – predominantly services – where markets work less well, namely those with extensive own‐consumption and joint production, where theory says that factor rewards and other prices cannot be determined by production and consumption conditions. Arguing that this can explain the “wages squeeze,” the paper concludes that other economic mechanisms should and have arisen to secure better welfare gains, thus explaining the recent shift in policy priorities of the ACTU. [ABSTRACT FROM AUTHOR]

The article comments on three papers within the issue: "Long-Term Effects of Government Deficits on the U.S. Output Potential," by George von Furstenburg, "Capital Formation and the Recent Productivity Slowdown," by Peter Clark, and "U.S. Productivity Growth Recession: History and Prospects for the Future," by Michael McCarthy. The author discusses each article and criticizes their shortcomings. He looks at von Furstenburg's use of the Phelps-Shell model of dynamic economic growth and notes the usefulness of neoclassical growth theory. The author feels that his discussion on the effects of government deficits on output growth or productivity represent a fruitful economic analysis innovation.

The relationship between foreign aid and economic growth has been the subject of much controversy. A recent theme suggesting that aid promotes growth, but only in a good policy environment has ratchet up that debate. In this paper, we assess the importance of policy and aid in generating growth when the aid, policy, and growth relationship is nonlinear. This allows us to examine the varying effects of aid and policy in different data segments, which we do without imposing any particular structure on the underlying relationship. We find that policy is an important determinant of growth. We also find partial corroboration of the view that aid is growth enhancing in a good policy environment, and some evidence of diminishing returns to aid. These findings suggest that nonlinearities if not appropriately addressed fail to capture the detailed underlying dynamics and thereby mask some key features of the aid-policy-growth relationship. [ABSTRACT FROM AUTHOR]

This paper presents an empirical analysis of the factors which promote entrepreneurial activity across a number of transition, developing and developed countries. It produces results which highlight the importance of institutions in promoting entrepreneurial activity. This work is part of an on-going research project on the relationship between the legal system and factors which influence economic development. In particular, it has been shown that legal rules protecting creditors and investors influence the size of financial markets which in turn influence economic development. Our paper thus extends the analysis of the impact of institutions beyond that previously established to demonstrate its influence on another driver of economic development. Copyright © 2005 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The article presents information on infrastructure spending and unemployment in Australia. The Australian government's policy package had several components. The first was a recognition that high economic growth was required if significant inroads into unemployment were to be achieved. Given the government's beliefs about the likely outcomes for labour productivity and the labour force participation rate, it was thought that a real growth rate of 4.8 per cent would be required to achieve the target unemployment rate of 5 per cent by 2001. The Green Paper and the subsequent White Paper were pretty vague as to exactly how such a long stretch of high economic growth was to be achieved, placing a lot of faith on microeconomic reform and improving the quality of labour through training reform. However, it was also recognised that high growth by itself was not sufficient, and that a policy of active labour market programs directed at the long-term unemployed and those at high risk' of becoming long-term unemployed would be necessary to reduce long-term unemployment. The Job Compact was an extensive raft of active labour market programs which included an expanded wage subsidy scheme, training programs and case management of the chronically unemployed and which placed an obligation on targeted individuals to participate in the scheme to retain unemployment benefits.

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Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper provides a spatial neoclassical growth model for a system of N regional economies. Regional output growth is determined by interregional fixed capital relocations which depend on initial factor endowments as well as a region's relative location in space. The dynamics of the model are captured by a Taylor approximation, which provides a testable spatial econometric model specification that is applied for European regions on the NUTS 2 level. Both theoretical and empirical results show how relatively high human capital endowments are beneficial to growth if found within one region, but disadvantageous if found in neighbouring regions. Este artículo proporciona un modelo de crecimiento neo-clásico espacial para un sistema de N economías regionales. El crecimiento del producto regional viene determinado por deslocalizaciones interregionales de capital fijo que dependen de la dotación de factores inicial, así como de la relativa localización espacial de una región. Las dinámicas del modelo son capturadas mediante una aproximación de Taylor, que proporciona una especificación comprobable de modelo econométrico espacial que se aplica a regiones europeas a nivel NUTS 2. Tanto los resultados teoréticos como los empíricos muestran como las dotaciones relativamente elevadas de capital humano son ventajosas para el crecimiento cuando se concentran en una región, pero una desventaja si se encuentran en regiones vecinas. [ABSTRACT FROM AUTHOR]

This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the period 1995-2007. We found evidence that related variety matters for growth across regions, especially when using two new methods that measure revealed relatedness between industries. The first method is based on Porter's cluster classification while the second method uses the proximity index proposed by Hidalgo et al. Our analyses show that Spanish provinces with a wide range of related industries tend to show higher economic growth rates, once we control for other determinants of growth. Este artículo investiga si la variedad relacionada, entre otros tipos de externalidades espaciales, afectó el crecimiento regional en España a nivel NUTS 3 durante el periodo 1995-2007. Hallamos pruebas de que la variedad relacionada influye en el crecimiento entre regiones, especialmente al utilizar dos métodos nuevos que miden el grado de conexión manifiesto entre industrias. El primer método está basado en la clasificación de conglomerados de Porter, mientras que el segundo método utiliza el índice de proximidad propuesto por Hidalgo et al. Nuestros análisis muestran que las provincias españolas con un amplio rango de industrias relacionadas tienden a mostrar tasas de crecimiento económico más altas, una vez que se logra controlar otros factores determinantes del crecimiento. [ABSTRACT FROM AUTHOR]

Dungey and Pagan (2000) present a SVAR model of the Australian economy which models macroeconomic outcomes as transitory deviations from a deterministic trend. In this paper we extend that model in two directions. First, we relate it to an emerging literature on Dynamic Stochastic General Equilibrium modelling of small open economies. Second, we allow for both transitory and permanent components in the series and show how this modification has an impact on the design of macroeconomic models. [ABSTRACT FROM AUTHOR]

In this paper I analyse the role of openness and globalisation in Latin America's economic development. The paper is divided into two distinct parts: I first ( Sections 2 to 4 ) provide an analysis of 60 years of the region's economic history, that go from the launching of the Alliance for Progress by the Kennedy administration in 1961, to the formulation and implementation of the market oriented reforms of the Washington Consensus in the 1990s and 2000s. I conclude that Latin America's history has been characterised by low growth, high inflation and recurrent external crises. In Section 5 I deal formally with the costs of crises and I estimate a number of variance component models of the dynamics of growth. I find that external crises have been more costly in Latin America than in the rest of the world. I also find that the cost of external crises has been inversely related to the degree of openness. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The current mainstream neoclassical economic analysis of growth in a "Western" economy holds that in anything but the relatively short run, defined as the length of a business cycle, the economy reaches an equilibrium growth rate determined entirely by supply side factors and unaffected by measures taken to increase aggregate demand during a slump. In addition, the process of transformation to this long-run equilibrium position is never explained. As a result of these views, the finance sector, both domestically and internationally, has obtained undue influence and behaved in a manner that caused the crisis which started in 2007. This paper considers these propositions, focussing on neoclassical growth theory. After establishing these claims, the policy implications are discussed. [ABSTRACT FROM AUTHOR]

The human capital model is the basis of neoclassical analysis of labour markets, education and economic growth. However, education policy in Australia has been influenced by models based on screening theory and public choice theory which yield the policy implication that reductions in education spending are generally desirable. In this paper, the competing models, and the evidence supporting them, are surveyed. It is concluded that the human capital model is strongly supported by the available evidence. The predictions of screening models are generally not supported by empirical tests, except where they coincide with those of the human capital model. The main evidence supporting the public choice model, derived from the literature on educational production functions, is shown to be deficient. The principal policy conclusion of the paper is that the negative effects of recent cuts in education spending will outweigh any benefits achieved through reductions in public debt. [ABSTRACT FROM AUTHOR]

This paper examines the tension between the struggle to survive in a competitive economy and efforts to create more democratic workplaces in the Basque worker cooperative complex in Mondragón, Spain. Data from archival research, participant observation, and interviews are used to outline the historical context of structural change and policy-making in the complex. Language used in internal policy discussions is analyzed to explore the way in which arguments about efficiency have shaped interpretations of structural change and these organizations' policy responses. It is argued that in these cooperatives, the concept of "efficiency" does not operate as a neutral, objective benchmark of organizational performance, but is socially and rhetorically constructed. The predominant approach to efficiency that is emerging in Mondragón aims to make the cooperatives more competitive, but also facilitates a gradual displacement of collectively established organizational objectives such as relative equality, job security, and favorable work conditions for ones that privilege institutional interests of profitability and stability. More importantly, it has helped usher in important changes in the policy-making process itself limiting the range of legitimate participation and weakening broad-based control over the identification of appropriate objectives and means. The paper suggests that reframing an existing rhetorical strategy to highlight more clearly the link between efficiency and any given set of objectives would stimulate a broader discussion of policy issues and help balance more effectively the diverse interests at stake in Mondragon's restructuring. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper studies the impact of economic policy uncertainty on stock price crash risk using data from China. We develop a new index to measure Chinese economic policy uncertainty and find that economic policy uncertainty has a remarkable positive effect on stock price crash risk. However, the effect reverses later. The results also indicate that the positive effect of economic policy uncertainty on stock price crash risk is more prominent for state‐owned enterprises. Moreover, this effect is more prominent for firms with higher information asymmetry and firms with greater disagreement among investors, indicating that economic policy uncertainty affects crash risk through two mechanisms: managers' concealment of bad news and investors' heterogeneous beliefs. [ABSTRACT FROM AUTHOR]

The empirical relationship between trade protection and economic growth is surprisingly fragile, as shown in a number of other papers. We address one possible explanation for these findings: that the relationship is contingent on the pattern of comparative advantage, following the endogenous growth literature. Our findings suggest that such contingencies do in fact exist-in particular, the correlation between tariffs and growth is strong and positive for skill-abundant countries-and are robust to the choice of control variables. [ABSTRACT FROM AUTHOR]

ABSTRACT: In this paper, we examine the convergence hypothesis using a long memory framework that allows for structural breaks and does not rely on a benchmark country using both univariate and multivariate estimates of the long memory parameter d. Using per capita GDP gaps, we confirm the findings of non‐stationarity and long memory behavior that have been found previously in the literature using univariate tests. However, the support for these findings is much weaker when using a multivariate framework, in which case we find more evidence of stationary behavior. Based on these results, we also investigate club formation, something that would suggest the presence of conditional convergence. We describe a club formation methodology using the sequential testing criteria that we have employed in our analysis as the basis for forming clusters or clubs of countries with similar convergence characteristics. [ABSTRACT FROM AUTHOR]

Although Indigenous people in the poorest developing countries of the world confront the most severe hardships, nevertheless even in the most developed countries such as Australia, Indigenous standards of living in terms of economic, educational and basic human standards are far inferior to other groups within society. It has been argued that Indigenous affairs in Australia is divided into 'two ideological tribes' both vigorously opposed with respect to the preferred manner in which the substantial disadvantage of Indigenous Australians can be overcome. Although more complex categorisations of ideological positions are possible, both maintain considerable influence within the field of Indigenous policy formulation in Australia and in the Northern Territory in particular, where nearly 30 per cent of the total population is Indigenous. The main purpose of this paper is to examine the central arguments advanced by these two sides of the debate and the implications for public policy decision making and Indigenous people, within the context of the Northern Territory of Australia. [ABSTRACT FROM AUTHOR]

of the Grattan Institute released the report titled Investing in the Regions: Making Difference in May 2011. The report sought to question the rationale for differential funding of regional infrastructure projects and concluded that 'government spending cannot make economic water flow uphill' (). The report was used to argue that fast growing regional areas were being deprived of important government funding and that this approach 'has treated people unfairly' (). The authors also scrutinised the argument that regional universities can impact on the economic development of regions and found that 'the economies of university cities do not develop faster than regions without a university' and thus 'it may well be that the additional spending on universities and regional campuses in smaller cities should be redirected to assist students from regional areas to study at larger campuses in our capital cities and largest satellite and coastal cities' (). In this paper, we identify the limitations of this report. We also take the opportunity presented by the release of this report to consider other important policy areas requiring attention, especially in the field of higher education in regional settings. [ABSTRACT FROM AUTHOR]

Abstract: This paper investigates a principal–agent model in which an owner (principal) optimizes a contract with a manager (agent) who has been delegated to undertake an investment project. In the model, we explore the effects of costly exploration by which the manager learns the real value of development cost. We show that high exploration cost can lead to a pooling policy not contingent on project type. Further, and more notably, we show that, in the presence of asymmetric information, higher exploration cost leads to wealth transfer from owner to manager and can ultimately improve social welfare. [Copyright &y& Elsevier]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Economists frequently make judgments about economic welfare, but there is today little discussion of the foundations of welfare economics. It is assumed either that there is unanimity of interests, or that there is general acceptance of utilitarianism. This means that economics cannot address many key policy issues and that important differences in ethical views cannot be recognized. This paper argues that it is a legitimate exercise of economic analysis to examine the consequences of different ethical positions, taking case studies of employment as a macroeconomic objective, and the role of capabilities in the measurement of economic performance. [ABSTRACT FROM AUTHOR]

This paper evaluates the impact of water sector privatization in Colombia on access, price and water quality, as well as health outcomes using differences-in-differences methodology. The main findings of the impact of water privatization are: (i) an improvement in the quality of water and an increase in the frequency of the service in privatized urban municipalities for the lower quintiles; (ii) a positive effect on health outcomes in both urban and rural areas; (iii) a negative effect on payment for the lower quintiles; and (iv) strong negative effects on access to water in rural areas. Some of these effects appear in municipalities with better technical capacity. [ABSTRACT FROM AUTHOR]

This economics literature review article addresses important developments in the literature during calendar year 2007. This is not a list or detailed documentation of papers that were published during 2007. Instead, the discussion focuses on two broad categories. The first category addresses the literature either directly or indirectly related to environmental policies and sustainable development or is mainly concerned with the following subjects: sustainable development; watershed management; climate change and disaster risk management; environmental policies management; and fisheries development. The second category addresses literature related to economic policies. This section addresses the following; political economy and conflict; water supply policies; water consumption; water price regulation and valuation. It should be noted that assigning articles to these categories was done to help organize this review, but points made in many of the articles discussed below relate to many topics across categories. [ABSTRACT FROM AUTHOR]

According to convention, there appears to be two main purposes of knowledge-based development: economic prosperity and human development. This paper emphasizes the importance of the balance between these two purposes and suggests that they need to be complemented with an axiological framework grounded in a systemic and evolutionary perspective. Such a contextualization of development brings sustainability into focus and gives direction and meaning to related knowledge strategies. The notion of the knowledge economy has long been embraced as an attractive next stage of post-industrial society. However, it remains grounded in an economic model that treats society and the biosphere as externalities. As a result, the knowledge economy appears as an improved but essentially unchanged paradigm of value exchange that continues to increase the gap between rich and poor, ignores the intrinsic value of living and life-supporting systems and undermines the viability of the biosphere—as if human systems could live without it. A new framework for understanding development in a systemic and interconnected way—evolutionary development—is presented as the larger container within which knowledge strategies could make a significant difference in terms of the creation of value—not only financial, but also human, social and ecosystemic. The case of Monterrey, Mexico, as the host of the Universal Forum of Cultures in 2007 and as a place with the intention of becoming a knowledge city, is used to highlight the concrete opportunities to link the economic and human dimensions of knowledge-based development for the creation of a sustainable learning society. Copyright © 2007 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to shed light on the controversial issue of regional development incentives. Although extensive research has been conducted, a review of the literature gives an inconclusive answer to whether economic incentives are effective. Why do researchers arrive at different conclusions, even after analysing the same programmes? Among the problems that we find, for example, is the fact that for some researchers ‘effective’ means the significant location of new firms in targeted areas, while for others the creation of jobs regardless of whether new firms are arriving in a significant fashion. Furthermore, as we elaborate, the selection of an econometric model will have a significant impact on expected results. Different models, with different limitations, will lead researchers to evaluate the same incentive programme but arrive at different conclusions regarding its effectiveness. The contribution of the paper is to inform policymakers about the potential opportunities and pitfalls when designing incentive strategies. This is particularly relevant, given that both the US and Europe have been promoting incentives as a tool for regional economic development. [ABSTRACT FROM AUTHOR]

Prior to his Nobel Prize-winning work in economic development and human capital, T.W. Schultz focused his attention most centrally on the economics of U.S. agriculture. His research on this subject, published mostly between 1932 and 1951, laid the foundation for his later work. However, the lasting value of Schultz's earlier work may appear to have been called into question even by the author himself. In the three books of collected writings he published toward the end of his life (Schultz, 1990, 1993a, 1993b), very few early writings are reprinted or even cited. Nonetheless, among agricultural economists, Schultz's earlier work has been as influential as his later work became among economists generally. In the American Economic Association's (1969) compilation, Schultz was referenced in the index more than any other economist, and all twenty-two references to his works refer to studies of U.S. agriculture (and only two of them to his work on human capital). In this paper, I review Schultz's contributions under two headings: the economics of farming and agricultural policy. [ABSTRACT FROM AUTHOR]

This paper shows that, based on Yang and Zhang's (2003) analysis, economic development can be viewed as an evolutionary process of division of labour that is driven by improvements in transaction efficiency. Both economic development and income inequality are consequences of this process; there is no systematic relationship between the two. Implications of the Yang-Zhang analysis for government policies, including the allocation of foreign aid, are also discussed. [ABSTRACT FROM AUTHOR]

This paper investigates whether government investment spending exerts a positive or a negative effect on private investments. Time-series data for Greece as well as the methodology of cointegration suggest that, over the period 1948-80, public investment spending exerted a positive effect on private investments, while over the period 198 1-96, the relationship turned out to be negative. Empirical results indicate that the large increase of the public share in the total investment process tended to crowd out private investments and to jeopardize the growth process of the economy. [ABSTRACT FROM AUTHOR]

The article focuses on the book "A World Fit for People," by Adam Smith. This is a collection of 55 essays presents by academics, practicing experts on economic development an government officials at the second Round Table Conference on Global Change held at Bucharest Romania in 1992. The book has four parts: Political Reconstruction, Economic Development, Ecological Values and Countries in Transition. Part 1 create a base for broader policy questions faced by world community and stress the importance of political and governmental institution building in order to make it possible for societies to function in the interest of their people. Part 2 is on Economic Development. There are papers on economic policy and its underlying models and on international aid in support of development. The role of government in investment, in infrastructure, creation and management of public enterprises, providing and enforcing rules and regulations on private enterprises and other interventions in the economy 15 found to have helped the developing countries temporarily in the 1950s and 1960s.

We propose that the limited financial development of emerging markets is a significant factor behind the large share of dollar-denominated external debt present in these markets. We show that when financial constraints affect borrowing and lending between domestic agents, agents undervalue insuring against an exchange rate depreciation. Since more of this insurance is present when external debt is denominated in domestic currency rather than in dollars, this result implies that domestic agents choose excessive dollar debt. We also show that limited financial development reduces the incentives for foreign lenders to enter emerging markets. The retarded entry reinforces the underinsurance problem. [ABSTRACT FROM AUTHOR]

Asia is an increasingly significant player in the global economy, and Asia's unprecedented growth and multifaceted disparities have generated many fascinating issues for scholarly research. This paper summarizes the diverse regional policy and practices of Asia in the context of globalization and transition. We argue that research on Asia is embedded in the complex economic-geographical processes and multiple trajectories of development. This paper highlights the important role of institutions and global-local interactions in regional development and public policy. Resumen. Asia es un actor cada vez más importante en la economía mundial y su crecimiento sin precedentes y las múltiples facetas de sus disparidades han generado un buen número de tópicos fascinantes para la investigación académica. Este artículo resume las diversas políticas y prácticas regionales de Asia en el contexto de la globalización y la transición. Sostenemos que la investigación sobre Asia está inmersa en los complejos procesos económico-geográficos y múltiples líneas de desarrollo. El artículo pone de relieve el importante papel de las instituciones y las interacciones globales-locales en materia de desarrollo regional y políticas públicas. [ABSTRACT FROM AUTHOR]

During the 2000s, Australia experienced a rapid and substantial resources boom. The impacts from this boom were particularly felt in Western Australia, which has the largest share of mining revenue as a proportion of both gross state product and exports. Some states have reported that although mining export earnings have risen due to strong commodity prices, there was less impact on the populations, labour markets and regional development than may have been expected. This paper will investigate the impact of the mining boom on the population and labour markets of Western Australia. Of particular policy relevance are skilled labour shortages and the effects that any changes in population and employment have on the remote communities where the majority of the mining activities are located. [ABSTRACT FROM AUTHOR]

This paper introduces a new measure of dependence or jointness among explanatory variables. Jointness is based on the joint posterior distribution of variables over the model space, thereby taking model uncertainty into account. By looking beyond marginal measures of variable importance, jointness reveals generally unknown forms of dependence. Positive jointness implies that regressors are complements, representing distinct but mutually reinforcing effects. Negative jointness implies that explanatory variables are substitutes and capture similar underlying effects. In a cross-country dataset we show that jointness among 67 determinants of growth is important, affecting inference and informing economic policy. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

For the past two decades, the fast-developing Asia has emerged as one of the most important economic regions. However, its economic growth is accompanied with severe software piracy. This paper analyzes productivity changes of 11 Asian economies and 4 non-Asian industrialized economies by taking into account software piracy using the Malmquist productivity index and its two components, efficiency change and technical change over the period 1994–2002. The results indicate that when software piracy is included, productivity growth in Asian developing economies regresses, while productivity growth in the four non-Asian industrialized economies improves. Interpretation and implications are provided. ( JEL L86, O34) [ABSTRACT FROM AUTHOR]

One factor limiting aid effectiveness is its volatility. We examine aid volatility in 66 countries over 1975–2004, paying particular attention to the characteristics of ‘difficult partnership countries’ and making a distinction between sector aid and total aid. We explore whether weak recipient institutions and policies are associated with greater volatility, allowing for differences in donor characteristics. Institutional quality and macroeconomic stability affect the stability of all kinds of aid, as does reliance on a small number of donors. However, the relative importance of these effects varies across different aid types. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper explores how the optimal mode of public finance depends on the level of economic development. The theoretical analysis suggests that in the presence of capital market imperfection and liquidity shocks, the detrimental effect of inflation on growth is stronger (weaker) at lower (higher) levels of economic development. Consequently, income taxation (seigniorage) is a relatively less distortionary way of financing public expenditure for low-income (high-income) countries. We provide empirical support for our model’s predictions using a panel of 21 Organization for Economic Cooperation and Development countries and 40 developing countries observed over the period 1972–1999. ( JEL E44, E6, H6, O42) [ABSTRACT FROM AUTHOR]

The article cites a study that examines the World Trade Organization (WTO) negotiations on agriculture that emerged as a critical element in the postponed Doha Development Agenda. Particularly, this paper aims to examine the potential implications of complete trade reform. These will then be used as a benchmark against which to evaluate options within the parameters agreed at the WTO in August 2004. Results show that agricultural trade reform is potentially more important as a source of gains to the world than reform of the much bigger nonagricultural merchandise sector.

This paper presents to the English-speaking reader a sample of material contained only in Schumpeter’s first German edition (1911) of Theorie der wirtschaftlichen Entwicklung, material subsequently omitted from later German editions and from the English translation. The newly-translated material, presented here for the first time in English, comprises a substantial part of the second chapter, only available in a completely rewritten version, and fully half of the famous seventh chapter, which has not been previously available at all in English. This material merits attention today because it contains remarkable and farsighted visions on economic theory that may inspire current efforts to devise models of economic and social evolution. In order to better appreciate the original text, we briefly introduce the “background” to Theorie and its revisions, briefly describing the social and intellectual environment of the time. We then discuss how the entrepreneur evolved over the three editions of Theorie (from 1911 to 1934) in view of the shift in Schumpeter’s personal and intellectual life and outline the most important implications raised by the first German edition of 1911. Finally, we use Schumpeter’s own statements to settle the obstinate confusion on the publication year of Theorie in favour of the year 1911. [ABSTRACT FROM AUTHOR]

In a monetary version of the Uzawa (1965)-Lucas (1988) model of endogenous growth, this paper illustrates how a credible policy of rapid disinflation can induce temporary declines in employment and output, with the former exhibiting a significant degree of persistance; however, these temporary declines in employment and output are not associated with any nominal rigidities in the economy, and therefore do not represent dead-weight losses that occur along the transition path, but are instead a part of an optimal response to the policy change. The measured welfare benefits of disinflation are seen to be higher when the transition path is taken into account. [ABSTRACT FROM AUTHOR]

Copyright of Population & Development Review is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Population & Development Review is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The general stereotype of modern Third World military regimes is that of ultra-conservativism combined with military force to dismantle organizations of popular expression. These organizations through their rent-seeking activities are assumed to have reduced overall rates of economic growth. Empirically, the paper does find some support for this line of argument. However, it is apparent that the traditional stereotypes are inappropriate. The two regime types differ largely in terms of contrasting styles of economic management. Military regimes create an environment where military expenditures tend to have a positive overall impact on economic growth. Civilian regimes having less control over rent seeking groups do not appear to be able to combine rent seeking activities and military expenditures in a manner conducive to overall economic growth. [ABSTRACT FROM AUTHOR]