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  • Blackwell Publishing Ltd  (14,197)
  • American Chemical Society (ACS)
  • 2000-2004  (14,197)
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  • 1
    Electronic Resource
    Electronic Resource
    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract This paper estimates econometrically the economic return on schooling among Portuguese cooperative managers, based on a survey carried out in 1999. The main findings indicate that the rate of return is in line with previous published research. The results also indicate that in this sector, the return on education does not depend on the dimensions of the cooperative in which the individual works.
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  • 2
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: We develop an approach to studying new business governance models and we illustrate how these models take the general interest into account. We outline the main prevailing trends, in the context of the Québec model of development, and discuss the new conceptions of the state and of its role in governance. As a result of this, organizations and institutions are playing a new role in the pursuit of the general interest, which we examine using the ‘Solidarity Fund’ of the Fédération des travailleurs et travailleuses du Québec (FTQ). We suggest that a partnership-based governance model may help support the emergence of a new mixed economy that weds the general interest with individual and collective interests in an original way.
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  • 3
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper examines issues in the design of a co-operative member's contractual relationship with the other agents (including the remaining members) using organizational economics. The paper assumes that the central defining characteristic of a co-op is the residual claim specification. Agency theory identifies certain inherent problems of the co-op form, the horizon problem, common property problem, and non-transferability. Non-transferability both reduces the incentive to monitor and imposes limits on portfolio diversification. This paper argues that features such as claim incompleteness and non-transferability are not inherent to the co-op but may be transaction-cost economizing. The paper also argues that the pre-emptive payoff feature by which the residual claimants (the co-op members) also become fixed payoff agents can affect the risk of other agents, and is an important determinant of co-op risk. A co-op may have more than one potential residual claim base. Five generic design choices are available for handling possible multiple claim bases: battleground, pre-specified allocation, limited return, alignment, and fixed payoff. The paper uses the design of residual claims in sugar co-ops to show how a co-op can partly overcome some of the problems identified by agency theory. This illustration ties together the issues of claim incompleteness and non-transferability, pre-emptive payoff, and multiple claim bases.
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  • 4
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract On the basis of the definitions that have found the greatest acceptance among the scientific community, this paper identifies the business formulas that comprise the Social Economy in the agri-food sector with reference to the case of Spain, for which the latest data and figures are presented. At the same time, it presents a comparative study with agricultural cooperatives in the European Union, using the cluster analysis method, in order to place the business situation of Spanish cooperatives within this context.
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  • 5
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract: Theory suggests that a united charity helps to economize on fundraising costs by reducing competition for donations among member charities. However, donors often cannot control the allocation of their donations, and charities may dislike the monitoring of their activities. This paper examines these and other issues relating to the Community Chest of Singapore. The results, based on analysis of financial positions and fundraising costs of a large number of charities, suggest that the Community Chest does possess important fundraising advantages. Thus charities in financial difficulties or in need of funds for additional programs tend to seek membership. However, organizations that value their autonomy and independence, and that are able to achieve low fundraising costs tend to remain as non-members. Thus a monopoly agency raising funds for all charities in the future is unlikely in the case of Singapore.
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  • 6
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Nous mesurons à l’aide du DEA (Data Envelopment Analysis) l’efficacité des caisses populaires acadiennes en utilisant la valeur des produits d’intermédiation ainsi que le nombre de transactions réalisées par chaque caisse entre 1997 et 2000, au moment où un important programme de fusions et de réingénierie financière était mis en place. Cette analyse permet d’établir plusieurs résultats. Tout d’abord, l’inclusion des produits transactionnels réduit environ de moitié l’inefficacité technique et économique par rapport à l’inefficacité obtenue lorsque l’output des caisses est limité seulement aux produits transactionnels. Un algorithme d’auto-amorçage permet de vérifier que ce résultat est statistiquement significatif. Ensuite, nous montrons que le programme de fusions a touché surtout les caisses moins efficaces et a permis d’augmenter de façon importante leur efficacité grâce à une baisse du nombre d’employés en équivalent temps complet. Finalement, nous montrons que d’importants progrès technologiques ont été réalisés entre 1997 et 2000 en raison de l’accroissement du nombre de transactions informatisées. Des gains additionnels de productivité ont été rendus possible grâce à l’amélioration de l’efficacité des caisses ayant participéà une fusion tandis que les caisses n’ayant pas fusionné, bien que plus efficaces au départ que les autres, n’ont pas réalisé de gains d’efficacité.
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  • 7
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The study quantifies the differences in the level of return from investing in deposit (savings) accounts provided by depository institutions, which are either ‘mutual’ or ‘proprietary’. It is shown that for most types of deposit accounts offered in the UK, mutual building societies provide higher returns than proprietary firms. Surprisingly, it is also shown that returns from deposit accounts issued by converted or non-mutual building societies are, generally, lower than either mutual building societies or proprietary firms. These findings are consistent for interest rate data adjusted for the effect of non-price product characteristics and for unadjusted interest rate data.
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  • 8
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The general necessary optimality conditions for second-best discrete multipart tariffs are rather complex. In this paper, we derive a simplified characterization of these conditions for two-part tariffs and for block-rate tariffs for given thresholds of these tariffs. The simplified necessary optimality conditions are equivalent to the necessary conditions for a Ramsey-optimum for goods with continuously variable individually demanded quantities. We demonstrate that this characterization of second-best multipart tariffs can be helpful, when applying the usual regulatory mechanisms to these tariffs. In particular, we consider Vogelsang–Finsinger (1979) regulation as well as a particular form of price-cap regulation which is related to the Laspeyres index of prices.
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  • 9
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    Oxford, UK : Blackwell Publishing Ltd
    Annals of public and cooperative economics 74 (2003), S. 0 
    ISSN: 1467-8292
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Why do charitable nonprofit, service-providing organizations save? What are the tradeoffs between using income to build up cash reserves and serving more clients? Saving may generate income, protect the organization against a drop in donations, and increase the organization's chances of survival. Saving, though, may affect the likelihood that nonprofits receive private and public funding. We model the relationship among private and public income, economic conditions, and nonprofit savings. We find that anticipation of government help during difficult times tends to reduce the amount of saving done by the nonprofit. This effect is strengthened if government officials view unspent donations as indicative of a lack of need. Both these effects provide a strong incentive for nonprofits to spend on current consumption rather than to save for the future, and thus to increase the burden on the public purse.
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  • 10
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper investigates the consequences of code-sharing agreements among airline firms competing on international routes, where some passengers interconnect to flights originating or terminating at cities not served by foreign airlines. The authors calculate the precise market share captured by flights operated under code sharing. They compare airfares, market shares, profits, and passengers’ welfare before and after the implementation of a code-sharing agreement and demonstrate that code sharing is Pareto-improving.
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  • 11
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper examines the impact of regionalism on the process of multilateral trade liberalization when countries are asymmetric. The author uses a three-country, three-good, competing exporters model, with countries being symmetric in everything but their discount factors. The equilibrium regional agreement is found to be a customs union between a patient and an impatient country and that the impact of regionalism depends on the discount factors. The impact of regionalism on multilateral trade liberalization depends critically on which countries engage in regionalism.
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  • 12
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Review of international economics 11 (2003), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
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  • 13
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Review of international economics 11 (2003), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper examines a firm's cost of expropriation risk in a framework that links it to the government's incentive to expropriate. The author develops a pricing model for the firm's cost of expropriation risk that includes the positions of both government and firm. The government's decision to expropriate is modeled as an American-style call option. The cost of expropriation risk is modeled as the value of an insurance policy that pays off all losses resulting from expropriation. The firm's cost of expropriation risk is determined by the government acting to optimize the value of its option to expropriate. The author identifies the parameters that link the government's option to expropriate to the firm's cost of expropriation risk, and shows how the model can be used in capital budgeting decisions and the ongoing management of expropriation risk.
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  • 14
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper asks whether exports are affected by importers’ patent rights regimes using a gravity trade equation. US export data to 71 countries from 1970 to 1992 are used. A two-way random-effects panel indicates that patent rights regimes per se do not matter; they matter with importing countries’ imitative abilities. For a country with an “average” imitative ability, US R&D-intensive exports increase by 4–9% for a unit increase in the patent rights index; a unit increase in the patent rights index leads to a drop in US non-R&D-intensive exports by about 8–11%.
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  • 15
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper presents an overlapping-generations model where agents vote on whether to open or close the economy to international capital flows. Political decisions are shaped by the risk over capital and labor returns. In an open economy, the capitalists (old) completely hedge their savings income. In contrast, in a closed economy, the workers (young) partially insulate wages from the productivity shocks. There are three possible equilibrium outcomes: economies that eventually remain open; those that eventually remain closed; and those that cycle between open and closed. In line with the stylized facts, cycles are more common in economies with intermediate development levels.
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  • 16
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: In a homogeneous-good duopoly game with a home and a foreign firm, which compete on prices, it has been shown that the optimal way to assist the domestic industry is by a production subsidy. The argument here is that the subsidy is used to keep potential competitive pressure on the foreign firm. This paper analyzes under which conditions this threat of entry of a subsidized home firm is credible. It is shown that in markets where the firms move before the government, a subsidy is not credible and dominated by a tariff in terms of welfare.
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  • 17
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    Oxford, UK and Malden, USA : Blackwell Publishing Ltd
    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The authors incorporate equilibrium unemployment due to imperfect matching into a model of trade in intermediate inputs. Firms are assumed to be price-takers and their size is given by technology. Firms enter the market as long as expected profits cover the search cost they incur initially; jobs are endogenously destroyed by random shocks that affect firms’ price–cost margins. Trade increases productivity in the final good and then demand for each intermediate input. Steady-state unemployment is reduced after trade integration because the rate of job destruction is reduced, which in turn induces an indirect positive effect on job creation. A more volatile environment faced by firms does not necessarily increase unemployment. However, the rate of job destruction unambiguously rises, and rises more under free trade.
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  • 18
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Review of international economics 11 (2003), S. 0 
    ISSN: 1467-9396
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The paper examines whether Japanese exporters changed their strategic pricing behavior as a result of the profit squeeze of the late 1980s. It shows that shocks such as the end-of-bubble, the prolonged yen depreciation, and the Asian crisis affected export prices. These effects, however, are too small to change the long-run equilibrium relation between sectoral export prices and their determinants. In particular, results suggest that Japanese exporters are not using the depreciation of the yen to gain market share.
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  • 19
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  This paper develops a search model including workers’ investments in general human capital and investigates the effects of labor policies such as subsidies to human capital investment and unemployment benefits on the accumulation of human capital. It is shown that the equilibrium is not optimal because workers underinvest in human capital or firms open too many vacancies in comparison with the number of unemployed workers. Comparative statics show that an increase in subsidies to human capital investment adds to the number of vacancies per unemployed worker and to workers’ investments in human capital and that an increase in unemployment benefits decreases them. Finally, labor policies that remove the distortion are explored.
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  • 20
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  This article identifies the alternative employment modes of older workers in the European Union. Against a background of changing levels of labour force participation and declining employment opportunities the paper describes and discusses the relative significance for older workers of alternative employment modes. Two atypical modes, part-time and self-employment, are discussed in detail. The paper concludes that atypical employment modes offer ageing employees the opportunity to gradually retire by providing a bridge between full-time employment and final retirement.
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  • 21
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  In the current debate on the relationship between inequality in income distribution and growth, one of the possible links works through access to education. Starting from an optimal demand for education where, among other things, the years of education depend on family income, we derive two testable predictions in the analysis of aggregate data on school enrolments: a negative (linear) dependence of enrolment rates on the Gini concentration index on income distribution; and a positive dependence on public resources invested in education and/or on skill premium in the labour market. These predictions are tested on a (unbalanced) panel of 108 countries for the period 1960–95. The main finding of this analysis is that, once we control for the degree of development with the (log of) per capita output, financial constraints seem mainly relevant in limiting the access to secondary education. However, when considering gender differences, there is evidence that female participation in education is more conditioned by family wealth, in some cases starting from primary education. Finally, there is weak evidence that public resources spent on education raise the enrolment rates.
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  • 22
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  During the 1990s, a new subsidized early retirement option was assigned quasi-randomly to two-thirds of Norwegian elderly workers. We use this ‘natural experiment’ to evaluate how economic incentives affect retirement behaviour. The new retirement option reduced employment substantially, and this effect escalated over time. It did not substitute for disability pension or long-term unemployment, and approximately two out of three retirees would have stayed employed without it. Subsidized retirement was primarily voluntary, but there is also some evidence that firms took advantage of the retirement programme to ‘push out’ excess workers.
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  • 23
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  This study examines how the size of trade unions relative to the labor force impacts on the desirability of different organizational forms of self-financing unemployment insurance (UI). For this purpose, we compare the outcome of a model with a uniform payroll tax to a model where workers pay taxes according to their systematic risk of unemployment. Our results highlight the importance of the bargaining structure for the assessment of a particular UI scheme. Most importantly, it depends on the relative size of the unions whether efficiency favors a uniform or a differentiated UI scheme.
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  • 24
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  Macroeconomic shocks and labour-market institutions jointly determine employment growth and economic performance. The effect of shocks depends on the nature of these institutions and the effect of institutional change depends on the macroeconomic environment. It follows that a given set of institutions may be appropriate in one epoch and not in another. We derive a dynamic model of labour demand in which the effect of firing costs on labour demand depends on the macroeconomic environment: when the level of macroeconomic activity is expected to drop and/or the trend rate of productivity growth is small, a rise in firing costs affects mainly (and adversely) the hiring decision and not the layoff decision. This makes firing costs harmful to employment when it may appear most appropriate. In contrast, firing costs can raise employment during periods of high growth and positive shocks. Our hypothesis is supported by empirical results using OECD data.
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  • 25
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  This paper introduces a method of estimating the unemployed individual's marginal willingness to pay for the remaining entitlement period by application of search theory. It is demonstrated that search theory implies that the unemployed individual's marginal willingness to pay for the remaining entitlement period must be less than the value of the unemployment benefit. When benefits expire, though, the willingness to pay for an additional period must be equal to the benefit received during that period. The empirical relevance of this method is shown by re-interpreting the studies of Meyer (Econometrica 58: 757–782, 1990) and Katz and Meyer (Journal of Public Economics 41: 45–72, 1990).
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    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  This paper extends the recent literature, e.g. Leahy and Montagna (Economic Journal 110: 80–92, 2000), in relation to the link between unionization, inward foreign direct investment (FDI) and country welfare in an oligopoly market structure. It is shown that the common results, that unions may reduce welfare under FDI while multinational enterprises (MNEs) will strictly trade off union wages at each location, are generally driven by the assumption relating to the scope of the bargaining with the union, namely the ‘right to manage’ (RTM). In particular, our extension to efficient bargaining (EB) demonstrates that union power may increase welfare in the presence of FDI, while the MNEs’ choice between FDI and exports will include profit-sharing arbitrage with unions, in addition to the usual wage comparison considerations.
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract.  This paper looks at the wage system in Chinese state-owned enterprises (SOEs) during the 1980s. While wages remained compressed, there is evidence for the use of incentive mechanisms. Wages were quite sensitive to firm performance, especially at higher levels of the hierarchy. One of the reform measures — the Internal Salary System, a system of intra-firm contracts — has contributed significantly to this sensitivity. There is also some direct evidence that it enhanced the effectiveness of the bonus system, and that it helped to increase productivity. This goes towards explaining how the Chinese bonus system was able to overcome the free-rider problems typical of team compensation.
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The earnings of African–American males have increased over the past 50 years, but differences remain in their economic progress relative to either white or Asian Americans. Labor market disadvantages in the past were the result of overt discrimination; however, the earnings gap experienced over the last four decades has been linked to human capital differences. It is hypothesized that military service provides a buffer for adverse labor market characteristics for young African–American males and this paper discusses the returns from military service as reflected in their post–service wages.
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  • 29
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: What effect does employment protection through severance payments have on the behaviour of employed workers? We analyse this issue within a stochastic two–period framework where workers decide on human capital investments and find two competing effects: severance payments imply higher job security that fosters human capital formation. At the same time, a lay–off is perceived by the workers to be a weaker penalty if severance payments are provided. This incentive lowers their optimal amount of firm–specific investments. Which effect prevails on balance depends on the distribution of investment returns among firm and workers. For strong positive reactions, employment protection is also in the interests of the firm.
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  • 30
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The early careers of French doctors in life sciences are characterized by the importance of temporary jobs. While most young Ph.D. researchers wish to obtain a job in the French academic sector (which grants them, among other things, lifetime employment), few of them manage to achieve this objective immediately after completing their Ph.D. A majority of young doctors have to wait for a period of time before they find stable employment in the academic sector. In the meantime, they usually find temporary research jobs. Two main types of short–term jobs can be distinguished: fixed–term research contracts (in most cases in a French public laboratory) and post–doctoral positions (temporary research jobs in a foreign country). The aim of this paper is to determine whether these different types of temporary jobs have different consequences on the careers of Ph.D. researchers.We first discuss from a theoretical perspective the impact of choosing ‘post–doc’ research rather than a job on a fixed–term contract. Then, after dealing with selection biases that affect the access to these temporary jobs, we will use survival data analysis to estimate the impact of both types of temporary positions on the probability of entering the academic sector. The analysis is based on a database on the early careers of 800 young French doctors in life sciences. The main results include the following findings: the probability of a Ph.D. researcher finding stable employment is higher if he has held a post–doc position than if he has held a fixed–term contract. This result holds for both the private and public sectors. However, careers in the private sector are also affected by long–term choices, such as the decision to undertake Ph.D. research in partnership with a firm.
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper analyses the choice open to a worker seeking a job in the public and private sectors of the labour market. The private sector is identified by a steeper wage profile and by lower job security than the public sector. The reservation wage for the two sectors is calculated in the first part of the paper. The results reveal that the reservation wage for the public sector is higher than that for the private sector. The effect of career prospects, job riskiness and labour demand on optimal time allocation between the search in the two sectors is then analysed. Finally, an empirical analysis is made in order to study Italian workers’ search strategies. It highlights relevant geographical differences which can be interpreted through the theoretical results obtained in the paper.
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    Labour 17 (2003), S. 0 
    ISSN: 1467-9914
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    Topics: Economics
    Notes: A model is presented to illustrate the role of labor mobility in income distribution. Worker preference for different occupations and wage comparisons are combined to determine the allocation of labor between sectors and to trace the behavior of the Gini coefficient as mobility increases. The Gini coefficient fails to fall monotonically with increasing labor mobility, making its interpretation ambiguous. It is also shown that the Gini coefficient has a lower nonzero limit, a fact compatible with empirical findings.
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    Labour 17 (2003), S. 0 
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    Topics: Economics
    Notes: The labour markets of the centrally planned economies of Central Europe (the former Czechoslovakia, Hungary and Poland) were divided into several segments. Using estimates taken from a two–regime model, we show that segmentation has persisted throughout the first years of systemic change. However, labour market segmentation has evolved to some extent. Firms that used to have priority now coexist alongside new activities within the primary segment (in particular, foreign firms and activities in the banking and financial sector). In this way, labour market segmentation results both in the appearance of new, formal institutions and the persistence of informal institutions left over from the past, owing to the growth in market uncertainty.
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    Topics: Economics
    Notes: In this paper we present empirical evidence on the relationship between board remuneration of a sample of large Spanish companies and a set of explanatory variables such as performance and size of the company. The objective is to provide additional empirical evidence based on the agency theory for the Spanish institutional context, which differs from most ‘Anglo–Saxon’ model studies. We focus on the impact of a company's governance structure on the relationship between pay and performance. Specifically, we consider ownership concentration and firm leverage as key determinants of the board–shareholders relationship. Our results confirm the positive relationship between board remuneration and company performance, which is stronger for book values than for stock market measures. Industry performance also explains the remuneration and provides useful information for evaluating board behaviour. Company size is also related to board remuneration and affects the pay–performance relationship, although it is not relevant when we use an elasticity approach. Finally, the governance structure of companies is relevant when explaining the power of the compensation–performance relationship, and differences between the impact of ownership concentration and firm leverage on this relationship are found.
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    Mathematical finance 12 (2002), S. 0 
    ISSN: 1467-9965
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    Topics: Mathematics , Economics
    Notes: Starting from a simple supply/demand model for electricity, we obtain a diffusion (i.e., jumpless) model for spot prices which can exhibit price spikes. We estimate the parameters in the model using historical data from the Alberta and California markets. and compare this model with some others used for spot prices.
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    Topics: Mathematics , Economics
    Notes: We relate the theory of passport options with general principles from martingale theory as well as with the theory of Bessel processcs. The calculation of the price of a passport option leads to an equality between two norms on continuous martingales. We also solve the discrete time case for passport options.
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    Topics: Mathematics , Economics
    Notes: In this paper we analyze the long-run dynamics of the market selection process among simple trading strategies in an incomplete asset market with endogenous prices. We identify a unique surviving financial trading strategy. Investors following this strategy asymptotically gather total market wealth. This result generalizes findings by Blume and Easlcy (1992) to any complete or incomplete asset market.
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    Topics: Mathematics , Economics
    Notes: This paper discusses separablc term structure diffusion models in an arbitrage-free environment. Using general consistency results we exploit the interplay between the diffusion coefficients and the functions determining the forward curve. We introduce the particular class of polynomial term structure models. We formulate the appropriate conditions under which the diffusion for a quadratic term structure model is necessarily an Ornstein-Uhlenbeck type process. Finally, we explore the maximal degree problem and show that basically any consistent polynomial term structure model is of degree two or less.
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    Topics: Mathematics , Economics
    Notes: A topical problem is how to price and hedge claims on nontraded assets. A natural approach is to use for hedging purposes another similar asset or index which is traded. To model this situation, we introduce a second nontraded log Brownian asset into the well-known Merton investment model with power law and exponential utilities. The investor has an option on units of the nontraded asset and the question is how to price and hedge this random payoff. The presence of the second Brownian motion means that we are in the situation of incomplete markets. Employing utility maximization and duality methods we obtain a series approximation to the optimal hedge and reservation price using the power utility. The problem is simpler for the exponential utility, and in this case we derive an explicit representation for the price. Price and hedging strategy are computed for some example options and the results for the utilities are compared.
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    Topics: Mathematics , Economics
    Notes: We consider the problem of partial hedging of derivative risk in a stochastic volatility environment. It is related to state-dependent utility maximization problems in classical economics. We derive the dual problem from the Legendre transform of the associated Bellman equation and interpret the optimal strategy as the perfect hedging strategy for a modified claim. Under the assumption that volatility is fast mean-reverting and using a singular perturbation analysis, we derive approximate value functions and strategies that are easy to implement and study. The analysis identifies the usual mean historical volatility and the harmonically averaged long-run volatility as important statistics for such optimization problems without further specification of a stochastic volatility model. The approximation can be improved by specifying a model and can be calibrated for the leverage effect from the implied volatility skew. We study the effectiveness of these strategies using simulated stock paths.
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    Topics: Mathematics , Economics
    Notes: The Black-Scholes option price is increasing and convex with respect to the initial stock price. increasing with respect to volatility and instantaneous interest rate, and decreasing and convex with respect to the strike price. These results have been extended in various directions. In particular, when the underlying stock price follows a one-dimensional diffusion and interest rates are deterministic, it is well known that a European contingent claim's price written on the stock with a convex (concave. respectively) payoff function is also convex (concave) with respect to the initial stock price. This paper discusses extensions of such results under more general settings by simple arguments.
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    Topics: Mathematics , Economics
    Notes: This paper provides a numerically accurate and computationally fast approximation to the prices of European options on coupon-bearing instruments that is applicable to the entire family of affine term structure models. Exploiting the typical shapes of the conditional distributions of the risk factors in affine diffusions, we show that one can reliably compute the relevant probabilities needed for pricing options on coupon-bearing instruments by the same Fourier inversion methods used in the pricing of options on zero-coupon bonds. We apply our theoretical results to the pricing of options on coupon bonds and swaptions, and the calculation of “expected exposures” on swap books. As an empirical illustration, we compute the expected exposures implied by several affine term structure models fit to historical swap yields.
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    Topics: Mathematics , Economics
    Notes: A senera1 proof of the Dybvig-Ingersoll-Ross Theorem o n thc monotonicity of long foraard rates is presented. Some inconsistencies in the original proof o f this theorein are discussed.
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    Topics: Economics
    Notes: In this paper Pasinetti's model of structural economic dynamics (1981) is extended to consider international economic relations. Conditions for full employment, full expenditure of income and equilibrium of the trade balance are established for an open economy that requires capital goods to produce final commodities. Analytical results concerning the benefits from free trade and international learning are formally studied. In addition, static and dynamic aspects of the ‘principle of comparative cost advantage’ are analysed considering the determinants of the specialization level.
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    Metroeconomica 54 (2003), S. 0 
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    Topics: Economics
    Notes: Wage hikes affect production costs and hence are usually analysed as supply shocks. There is a long-standing debate, however, about demand effects of wage variations. In this paper, we bring together these two arguments in a Kaldorian model with group-specific saving rates and a production technology that allows for redistribution between workers and entrepreneurs following a wage hike. We thereby pinpoint the conditions under which (a) wage variations affect aggregate demand and (b) the positive demand effects of wage hikes may even overcompensate the negative supply effects on aggregate employment (‘purchasing power argument’). We conclude by noting that, whereas demand effects are very likely to occur, the conditions under which the purchasing power argument does indeed hold are very unrealistic.
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    Notes: This paper presents a model of the labour market with a contract and a spot market sector. Contracts are binding and enforceable, but unemployed contract workers are free to work in the spot market. The contracting wage is shown to be constant across states. A non-trivial result shows that the spot market wage is increasing with product price. An increase in product price has an ambiguous effect on contract employment. An increase in unemployment benefits increases the contracting sector wage whilst stabilizing the spot market wage, and may have ambiguous effects on unemployment.
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    Notes: We introduce an efficiency wage mechanism into an innovation-driven growth model. Due to asymmetric information problems the labour market is segmented and homogeneous workers may be employed either in the non-competitive intermediate sector or in the competitive research sector. We analyse the impact that the monopoly position enjoyed by intermediate firms in the product market may have on employment, wage inequality and growth, and the sectoral distribution of workers. We find that the lower the product market competition in the capital goods sector, the higher the research employment, the lower the intermediate sector employment and the higher the growth rate. The relationships between growth and inequality, on the one hand, and between growth and employment, on the other, are both negative.
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    Notes: The model presented in this paper distinguishes an industrial and an agricultural sector within a developing economy, which interact predominantly through the goods market. Investment determines saving through the Keynesian mechanism of effective demand. Environmental degradation results from the overexploitation of a renewable resource due to a common pool externality, which causes agricultural productivity to decline. The analysis shows that environmental degradation can reduce growth in the short run but increases growth (measured by the stock of industrial capital per capita) in the long run. Simulations reveal that the period of decline can be as long as 40 years. This suggests that the short-term effects in this model may be more relevant for policy than the long-run equilibria.
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    Notes: Technological listening posts as a means of technological knowledge sourcing were observed to be a widespread empirical phenomenon in centres of technological excellence and innovation clusters. Our research is based on 55 semi-structured interviews with 12 technology-intensive companies and 6 benchmarking-workshops on external knowledge sourcing with 11 companies. We reveal three archetypes of listening posts: trend scout, technology outpost and matchmaker. We describe their respective mission, organizational structure and critical success factors. Each type is illustrated with case studies.
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    Topics: Economics
    Notes: The concept of innovation is valued in most organizations to create and sustain competitive advantage. Firms need to innovate in order to stay ahead in the market. Businesses are experiencing the internationalization of technology-driven competition, globalization of manufacturing, shorter product life-cycles, increasingly sophisticated customers needs and a greater integration of technologies (Shepherd & Ahmed, 2000). These challenges have compelled organizations to develop innovative strategies, products and processes. One area that is increasingly seeking ways of adding value through innovation is the logistics function. This paper examines and compares factors that are driving innovation in Australia and Singapore in distribution centres part of the logistics function that has been slow in the past to innovate.
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    Notes: A new impetus for greater knowledge-sharing among team members needs to be emphasized due to the emergence of a significant new form of working known as ‘global virtual teams’. As information and communication technologies permeate every aspect of organizational life and impact the way teams communicate, work and structure relationships, global virtual teams require innovative communication and learning capabilities for different team members to effectively work together across cultural, organizational and geographical boundaries. Whereas information technology-facilitated communication processes rely on technologically advanced systems to succeed, the ability to create a knowledge-sharing culture within a global virtual team rests on the existence (and maintenance) of intra-team respect, mutual trust, reciprocity and positive individual and group relationships. Thus, some of the inherent questions we address in our paper are: (1) what are the cross-cultural challenges faced by global virtual teams?; (2) how do organizations develop a knowledge sharing culture to promote effective organizational learning among culturally-diverse team members? and; (3) what are some of the practices that can help maximize the performance of global virtual teams? We conclude by examining ways that global virtual teams can be more effectively managed in order to reach their potential in this new interconnected world and put forward suggestions for further research.
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    Notes: Conflict and conflict management are critical research issues in client-supplier collaborative new product development (NPD). A recent study found that conflict intensity and conflict-handling styles affect collaborative NPD performance. In this paper, we explore the relationships of four NPD project factors, namely product technical complexity, product certainty, task interdependence and the relative power of supplier, to conflict intensity and suppliers’ adoption of integrating and dominating conflict-handling styles. Research findings based on survey data collected from 193 suppliers provide a clear insight into the conflict intensity and suppliers’ adoption of conflict-handling styles for NPD projects of various characteristics, which enables better planning for conflict management and helps improve NPD performance.
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    Notes: Project organizations operate in environments where innovation depends significantly on the ability to integrate different but interrelated knowledge bases. These knowledge bases include individuals who are located outside organizational boundaries and have no formal relationship with the organization, but are connected socially to project workers. Organizational researchers have generally recognized the importance of external social relations for knowledge search. However there is some debate on the question of whether social networks are more useful for innovation if they provide social cohesion through close interaction or access to diverse and novel sources of knowledge through more distant relationships. This study explores the configuration of project workers’ external social networks and their effects on innovative behaviour, using data on the network ties of workers in 17 project organizations in the new-media industry. The findings are more consistent with the social embeddedness view of close social relations providing an important source of continuity in markets where intermittent projects are common. Project workers embedded in cohesive work-related social structures outside the organization tend to be more innovative in their project work than workers lacking such networks.
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    Notes: Creativity is essential to successful new product development efforts. Teams constitute the organizing principle in most modern innovation activities. Although creativity research has revealed many factors influencing individual creativity, little is known about how team-level creativity is determined. Since the creative innovation task requires teams to combine and integrate input from multiple team members, the team's communication pattern is an important determinant of team creativity. Based on a sample of 44 NPD teams in eleven companies, this study examines the effects of team-member communication on team creativity. It is found that both interaction frequency and subgroup-formation of communication have a negative relationship to team creativity. Theoretical and practical implications are discussed, and further research is indicated.
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    Notes: The mechanisms of knowledge management include knowledge sharing, knowledge transformation and knowledge accumulation. In the corporate context, knowledge creation is of utmost importance for the promotion of competition within an organization. Knowledge creation in business corporations is most frequently done through sharing knowledge between members of a team. Therefore, how to promote the flow of ‘Chi’ in an organization to ensure the effectiveness of knowledge sharing becomes the key to successful knowledge creation. Moreover, to create and maintain ‘Chi’, a holonic working environment has to be created so that the result of knowledge sharing can be enhanced. This paper illustrates the effectiveness of the knowledge-sharing practices of three computer-manufacturing companies from the perspective of working environment design and knowledge-sharing mechanism. Through comparison, this paper will identify some good practices for the enhancement of organizational creativity.
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    Notes: In the information economy, flexible organizations have evolved. Work and labour relations have become more flexible than in industrial organizations. This has consequences for the identity of organizations. Organizations tend to become opportunity coalitions when the identity is too fragmented or neglected. The key questions this article adresses is what is identity in a flexible organization and to what extent is it possible to ‘manage’ the construction of identity in flexible organizations? This key question was split up into three sub-questions. We were interested in how (1) organizations organize their talent management, (2) how organizations manage their labour relations and (3) how organizations manage identity. These three subjects come forward in recent publications in the field of organizational development and HRM as being critical of management of a flexible and innovative organization. In the article, the characteristics of flexible organizations are defined. These characteristics are translated into the relationship between these organization and individual: the way flexible organizations manage their work, labour relations and identity is studied in 20 Dutch organizations. Striving for an optimum in flexible work and flexible labour relations, combined with managing a specific organizational identity seems to be the HR-strategy Dutch organizations implement to reach flexibility and innovation.
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    Notes: The development of a technology and the innovations based on that technology usually affect stakeholders who have different perceptions and interests. Key issues in the company's engagement with these stakeholders are information and negotiation. Engagement is an ongoing process during which perceptions as well as interests may change. In this article it is argued that knowing the nature of interests and perceptions of the involved parties at a certain critical point leads to possible ways of engagement which in turn may help creating a satisfying outcome of the innovation process. First, information is necessary to change perceptions, and second, negotiation is necessary to accommodate interests. Two examples from the biotechnology industries (genetically modified (GM) crops) are used to demonstrate that perceptions and interests are the key factors in driving the engagement process between a company and its stakeholders, and communication in the engagement process should emphasize giving information and/or negotiation, depending on the nature of perceptions and interests.
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    Notes: The paper argues for greater recognition of the business-to-business service process through which much applied creativity is generated. Such services are described as highly intangible, high-risk professional services, whose core is applied creativity. Advertising creative services and architectural design services are proposed as exemplars. Empirical survey evidence is presented that business consumers recognize applied creative services as being qualitatively different from other types of professional service. Through an analysis of client personal interviews and published practitioner descriptions, these exemplar services are found to exhibit great similarity in terms of delivery process. This raises a number of issues concerning the management of these services.
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    Notes: Independently of the creativity movement, others have demonstrated the benefits of creating positive fields. I have reviewed a number of cases involving field below and added some from my own creativity experiences. I then explore the psychological explanation of why such fields are effective and go on to the findings of recent brain research, which not only reinforce the benefits of positive fields but also throw light on the difficulty of creating them. Finally, I offer some suggestions from my own experience of what can be done to create positive fields. I believe that this should now be the focus of our efforts: to the extent that we are successful, we should get the creativity and innovation we need as a by-product.
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    Notes: This paper reports the development of a tool to help SMEs identify more clearly their positions in their markets and to provide pointers to strategies that might lead to increased profitability. A nine-cell matrix was constructed to form a new development based on the well-established General Electric Co. (GE) matrix. It was proposed that companies could be positioned in one of the matrix cells as a function of two critical business indicators – competitive position and industry attractiveness. Data were gathered from a 21-item innovation questionnaire completed by managing directors from 354 SMEs. Confirmatory factor analysis on data from the 21 items revealed two robust factors. The two factors could be labelled as the constructs ‘competitive position’ and ‘industry attractiveness’. These two constructs formed the axes of the matrix. Factor scores were calculated and used to place each company in its appropriate cell in the matrix. An individualised report was then generated and sent to each participating company. Positive feedback was received from companies who felt that the benchmarking and general pointers to strategic development included in their report provided value well in excess of their expectations.
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    Notes: Product innovation is the focal point of the Delft Design School in the Netherlands. During its more than thirty years of existence different models of the product innovation process were and are used for education and for research. This paper will describe the development of these models. The first models tried to describe the product innovation process in a logical linear order, but recently this logical order has come under discussion. The most recent models try to show the more chaotic character of the product innovation processes in real corporate life. Although this chaotic model better reflects the product innovation practice, for educational purposes it seems to be less useful than the original logical ones. For our teaching we propose the two versions (logic and chaos) of our innovation model as two sides of one coin. This innovation coin is without proper value with one side left blank.
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    Notes: Research institutes mainly engage in product innovation for the purpose of applying, testing and usually also transferring knowledge or technology. Managing product innovation processes in this type of environment leads to various problems with the establishment and managent of alliances and alignment. In this paper a systematic analysis of product innovation at two energy research institutes is presented, paying explicit attention to the strategic alliances in terms of alignment mechanisms. The cases illustrate clearly how the research institutes manage their external networks for product innovation, allowing comparison of the strengths and weaknesses of the two research institutes, and an indication of lessons to be learned from each other. The systematic analysis contributes to the identifying of the appropriate product innovaiton objectives to be pursued through strategic alliances, as well as the determination of suitable alignment mechanisms for product innovation. Lessons learned are presented in the area of context and contingency influences, crossing organizational barriers, differences in culture and the balancing of operational effectiveness and strategic flexibility.
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    Creativity and innovation management 12 (2003), S. 0 
    ISSN: 1467-8691
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The present study focuses on strategic factors underlying the adoption of radical product innovations in SMEs. It investigates whether market focus, technological posture and entrepreneurial orientation lead to the adoption of more radical product innovations. The study provides some new evidence on this issue drawing upon data collected from Greek SMEs in the food and beverages industry. More specifically, a logistic regression model is applied to analyse the choice between radical as against incremental product innovations. Empirical results appear to support the claim that it is mainly entrepreneurial orientation that favours the choice of radical product innovations. This suggests that in SMEs the notion of entrepreneurial-push outweighs both market-pull and technology-push arguments. The findings are discussed in the context of Greece, taking into account the specific conditions prevailing. Apart from providing some new evidence in the important area of SMEs, they have also important implications for managers and policy-makers. In addition, they encourage further theoretical and empirical investigation.
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    Topics: Economics
    Notes: We explored two questions in two empirical studies. In the first study we wanted to find out whether we could describe the interactions between New Product Development (NPD) and Operations by using a generic theory of change management and interventions. In the second study we explored such interventions during implementation and wanted to find out to what extent these interventions followed the theories of change. Some of the interactions are interventions from NPD to Operations in order to change the work of Operations. We found that these interventions and intended changes fit the theories of change management quite well. This means that the change literature gives good insights into the causes of success and failure of these interventions and could mean that, in some respect, we can apply the knowledge of these theories of change management and interventions to the field of NPD. This insight provides a new and additional perspective: NPD to be seen as a process that uses interventions to facilitate, or provoke, change within operational processes. We see too much attention paid to the project management methods and ‘hard’ theories, for example rationality, control, hierarchy, planning, predicting and prescribing. There is good reason to add the more ‘soft’ theories of change to NPD practice, with extra and explicit attention to learning, trial and error, monitoring, tell and sell, empathy, and co-operation. NPD practitioners are also very much focused on the product and less (or not at all) on the actual changes that have to take place in production (Operations) related to the implementation of these processes. For successful implementation interventions need to be tuned towards the receiver. The interventionist (i.e. NPD practitioners) must be aware that there is a range of choice if different intervention strategies in order to tune their intervention efforts more effectively towards the receiver. In order to be able to do this, NPD practitioners, as well as the people from Operations, need to become skilled in using a generic theory of intervention and change, such as the one described in this paper, during their interactions.
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    Topics: Economics
    Notes: In their efforts to change organizations, managers and change consultants are time and again confronted with the limited controllability of organizations, the complexity and indeterminacy of change processes and the uncertain and ambiguous effects of their actions. In short, they are confronted with chaos. Some managers and consultants try to enhance their (illusion of) control over organizations by attempting to reduce chaos, while others accept and embrace chaos and base their change practice on it. This article focuses on the second group. Based on a study of literature and a series of interviews with experienced change consultants, a typology is developed, in which an enlightened modern, an ironic, and a postmodern way of coping with chaos in change processes is elaborated. The typology may help change consultants and managers with the development of their way of working and the articulation of their professional identity.
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    Review of international economics 12 (2004), S. 0 
    ISSN: 1467-9396
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    Topics: Economics
    Notes: During the past half century, multilateral trade liberalization has reduced tariffs to historically low levels. The “Received Theory” of multilateral trade agreements, based solely on terms-of-trade externalities between national governments, offers an explanation that has become the conventional wisdom. But it is dramatically inconsistent with actual trade agreements. This paper offers an alternative explanation, based on intergovernmental political externalities, consistent with what we actually observe. With remarkably little necessary formal structure—in particular, no formal bargaining model—this framework (chosen to parallel actual experience) gives an immediate and transparent role to the basic characteristics of contemporary trade agreements: gradual liberalization, reciprocity, nondiscrimination, and multilateralism.
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    Topics: Economics
    Notes: The paper analyzes environmental tax policy reform using a competitive model of world trade that includes production-generated environmental damage (pollution) and trade tariffs. The authors examine the feasibility of Pareto-improving multilateral reforms of environmental taxes, and show that any environmental tax reform that is mutually welfare-improving when compensating lump-sum transfers are assumed is also welfare-improving when a suitable tariff reform (but no transfers) is combined with the tax changes. Several specific reform proposals are developed. These results expand the feasible set of mutually improving policy proposals for international policy initiatives.
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    Topics: Economics
    Notes: It is often thought that a tariff reduction, by opening-up the domestic market to foreign firms, should lessen the need for a policy aimed at discouraging domestic mergers. This implicitly assumes that the tariff in question is sufficiently high to prevent foreign firms from selling in the domestic market. However, not all tariffs are prohibitive, so that foreign firms may be present in the domestic market before it is abolished. Furthermore, even if the tariff is prohibitive, a merger of domestic firms may render it nonprohibitive, thus inviting foreign firms to penetrate the domestic market. Using a simple example, the authors show that, in the latter two cases, abolishing the tariff may in fact make the domestic merger more profitable. Hence trade liberalization will not necessarily reduce the profitability of domestic mergers.
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    Topics: Economics
    Notes: The paper presents new evidence of significant substitution between European domestic monetary assets and foreign holdings of sterling. The finding of significant cross-country currency substitution implies reduced costs of transition towards monetary union and easier European policy convergence. Elasticities of substitution, using the Morishima measure, are estimated from the semi-nonparametric Fourier flexible form.
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    Topics: Economics
    Notes: Agriculture remains sensitive to variation in rainfall and temperature. Fortunately, our ability to predict the lower frequency variation in the earth's atmosphere is increasing rapidly. While information cannot affect the underlying source of variability, it allows unexpected shocks to be anticipated and acted upon. This paper develops and analyzes an intertemporal Ricardian trade model with Bayesian beliefs. Results in this paper show that improved climate prediction reduces expected prices, but increases price variability. In addition, trade is crucial to realizing the potential benefits of climate prediction. The value of climate prediction is highest with both storage and trade, and falls by over 300% when a country is in autarky.
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    Topics: Economics
    Notes: The paper uses micro-level price data from the European car market to examine why there are deviations from the law of one price. The absolute law of one price is strongly rejected, but there is convergence to its relative version. Two sets of explanations are considered: (i) price-setting in segmented markets, and (ii) arbitrage barriers. Overall, the determinants of arbitrage costs have more explanatory power. The single most important factor is the distance between markets. Evidence for Belgium and Luxembourg suggests that a single currency lowers price differences significantly.
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    Topics: Economics
    Notes: The paper studies export pricing to market (PTM) in a “small-country” context using a panel of disaggregated exports from Hong Kong since 1992. Conventional wisdom is that PTM is commonplace—except for US exports. This study provides a benchmark by which to interpret the puzzling behavior of US export prices. Empirically, Hong Kong's export price behavior is comparable to that of the US. This similarity reinforces the idea that PTM behavior is also a function of home market conditions and the ability to price discriminate across markets. There is little evidence of differences in PTM across Hong Kong's export destinations.
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    Review of international economics 12 (2004), S. 0 
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    Topics: Economics
    Notes: The transition of China towards a market economy was accompanied by a vast fiscal decentralization movement. Econometric analysis of the determinants of public expenditure of the Chinese provinces does not permit rejection of the hypotheses that (i) the behavior of provinces is similar to that of governments in developing economies significantly affected by external shocks, and (ii) in order to alleviate external risk, they take control of a more significant share of the revenues of the economy.
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    Topics: Economics
    Notes: The paper surveys the agenda needed to restore noninflationary growth in industrial countries. The role of fiscal policy as short-run stimulus both on the spending side and on the tax side is discussed. The author comments on trade, specifically the new trade round, and international finance. Long-run fiscal imbalances due to aging are analyzed. The role of fiscal institutions such as the European Growth and Stability Pact, the Japanese bad-loan problem, and structural problems are put into the perspective that advanced economies should nurture their reforms globally so as to provide successful examples of reforms and prove helpful trading partners.
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    Topics: Economics
    Notes: The paper looks at the main challenges to raise potential growth in the EU. It examines recent progress made regarding the structural reform efforts in EU product, labor, and financial markets, and it attempts to assess their impact on overall macroeconomic performance in terms of output and (un-)employment. The paper then proceeds to analyze the likely consequences of population aging for the growth rate of potential output and per capita incomes, emphasizing the fairly dramatic economic and budgetary implications of the decline in the EU's working-age population if governments do not take offsetting policy actions.
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    Notes: The paper highlights the main drivers for merger policy reform in the European Union, including the consequences of the recent appeal court reverses. It discusses some of the substantive and procedural issues that the reform package should address, and outlines the reforms in progress. The author concludes that much of the reform package will be beneficial, but some important opportunities have been missed in this inevitably patchwork process.
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    Topics: Economics
    Notes: Books reviewed in this article:Leonard K. Cheng and Henryk Kierzkowski (eds.), Global Production and Trade in East AsiaJayashree Watal, Intellectual Property Rights in the WTO and Developing CountriesDalia Marin and Monika Schnitzer, Contracts in Trade and Transition: the Resurgence of Barter
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    Topics: Economics
    Notes: If domestic firms lobby for protection, the tariff rate is a public good to all domestic firms, whether they engage in lobbying or not. This paper analyzes how the endogenous tariff rate as a public good depends on the group size in two-stage lobbying models. The result depends not only on whether domestic firms lobby cooperatively or not, but also on whether domestic firms incur indirect lobbying costs or not. This paper shows that if free riding is not very serious and if the number of domestic firms is small compared to the number of foreign firms, entry of a domestic firm is likely to increase the equilibrium tariff rate.
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    Topics: Economics
    Notes: The authors investigate the differences in margins of export and domestic markets for Spanish manufacturing firms in the period 1990 to 1997. They estimate jointly a multiproduct cost function, a variable factor share equation, and two price/marginal-cost margin equations. The results indicate that the marginal cost of production sold in export markets is slightly greater than in domestic markets. At the same time, the price/marginal-cost margins in export markets are smaller than in domestic markets. There is also strong evidence that margins are procyclical in domestic markets, but this evidence is less clear in foreign markets.
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    Topics: Economics
    Notes: The authors use a standard general-equilibrium trade model to show that export and import policies are not symmetric in the equilibrium of a strategic game with quotas. It is assumed that N (identical) large countries, without cooperation, set their import (or export) quotas to maximize domestic welfare. It is shown that the equilibrium in which all countries use import quotas differs from, and is superior to, the equilibrium in which countries use export quotas. The difference arises because the elasticity of the residual foreign export supply schedule differs between the two equilibria. The authors also study the properties of the sequential equilibrium of the game. In a simultaneous-move game, each country is indifferent as to whether it uses an import or export quota, given the policy of the other country. However, in a sequential-move game, the first mover will prefer to use an import quota rather than an export quota.
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    Topics: Economics
    Notes: Book Reviewedby Michael J. Greenwood and John M. McDowell 
 Kalamazoo, Michigan: W. E. Upjohn Institute for Employment Research, 1999, pp. xii, 295.Book Reviewedby Jagdish Bhagwati 
 Cambridge, MA: MIT Press, 2000, 383 pp.
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    Topics: Economics
    Notes: The paper examines the impact of the emergence of regional blocs on the patterns of interbloc and intrabloc trade when firms have the option to engage in foreign direct investment (FDI). For exogenously given external tariffs, when firms have the option to engage in FDI, all interbloc trade may cease—complete trade diversion that is replaced by interbloc FDI investment creation. In such an event the volume of world trade declines but this is more than offset by the increase in world output due to direct investment. The paper also investigates the optimal tariff that a trading bloc levies on imports from nonmember countries. The tariffs are restricted by the option to engage in two-way direct investment; hence, the regional blocs are hampered from mutually harming one another through an escalation in the tariff war. Finally, the formation of two regional blocs enhances the welfare of all countries.
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    Topics: Economics
    Notes: The paper investigates whether free capital mobility leads a government to tighten its budget deficit for fear of being penalized from the international capital market. The author tests the hypothesis using three-stage least squares (3SLS), which can control for the endogenous nature of capital account liberalization. Even the conservative measure shows that, if capital account liberalization were exogenously imposed, ceteris paribus, government budget deficit would be reduced by 2.275% of GDP. Furthermore, 3SLS results show that this disciplinary effect is stronger for countries under a fixed exchange rate regime or for countries with weak central bank independence. The disciplinary effect is also found to be stronger in more recent periods—the 1990s—during which capital market integration has been most prevalent.
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    Topics: Economics
    Notes: The paper considers the effect of a nominal exchange rate devaluation on the current account, using an intertemporal model that highlights the interaction between leisure and consumption. An analytical solution demonstrates that household behavior may differ markedly from the simple consumption smoothing emphasized in most previous literature. This distinction has special significance for demand shocks, in which output rises through a rise in labor input and hence a fall in leisure. In particular, consumption tends to move closely with increased output in this context, so a devaluation tends not to improve the current account. This result may cast doubt on the effectiveness of competitive devaluations.
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    Topics: Economics
    Notes: The paper explores the role of government policies in a situation where the wage gap between high-skilled and low-skilled workers is widening owing to increasing foreign competition in low-skilled intensive goods. A two-period, three-sector general-equilibrium model of a small open economy is developed in which individuals choose whether to invest in skills or not. The government influences individual decision-making through its tax system. The paper shows that increasing import competition or lowering taxes on skilled workers widens inequality when the skill distribution is exogenous (the direct effect), but often the opposite occurs through the indirect effect, that is through the additional incentive to become skilled. Numerical results indicate that there exists a nonmonotonic relationship between the terms of trade and inequality. The indirect effect tends to dominate the direct effect when import competition is intense, and vice versa.
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    Notes: Does financial development translate into a comparative advantage in industries that use more external finance? The author uses industry-level data on firms’ dependence on external finance for 36 industries and 56 countries to examine this question. It is shown that countries with better-developed financial systems have higher export shares and trade balances in industries that use more external finance. These results are robust to the use of alternative measures of external dependence and financial development and are not due to reverse causality or simultaneity bias.
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    Topics: Economics
    Notes: The authors investigate the choice of currency of invoicing in international trade under exchange rate fluctuations. Predictions derived from a model developed by Donnenfeld and Zilcha in 1991, and others, regarding the optimal choice of currency of invoice are tested for imports into Canada. The authors employ a unique dataset from Customs Canada that covers a six-year period and lists all currencies used for invoicing by industry. The empirical results support the hypothesis that there is a positive relationship between the extent of invoicing in the importer's national currency and exchange rate risk, and a negative relationship between invoicing in the exporter's currency as well as invoicing in a third currency and exchange rate risk. The empirical results further indicate that relative size of a country plays a role in determining the currency of invoicing.
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    Notes: With direct trade barriers banned, governments may be tempted to use indirect policy tools to interfere with trade, such as environmental taxes. The author uses a model of an endogenous market structure, where the number of firms is determined by a zero-profit condition in one country but is exogenously given in the other country, to show that a government harboring a fixed number of firms fails to affect aggregate supply, and therefore has little scope for improving domestic environmental quality (if pollution is transboundary). Moreover, owing to the absence of a terms-of-trade effect, it diverts from the classical strategic tax rule. The author argues that both governments arguably fix their equilibrium emission taxes “too low,” meaning that tax competition plausibly leads to “ecological dumping.”
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    Notes: The paper explores appropriate trade restrictions for least developed countries facing external terms-of-trade disturbances in terms of minimizing variations in the real sphere of the economy. Two alternative models are explored: export-subsidy versus import-tariff endogeneity. The theoretical model indicates that the tariff regime is a more appropriate policy. Empirical evidence from Sudan (1950– 1991) suggests that, although there is some discernable evidence that Sudan followed the tariff regime, the country did not apply the policy correctly, adjusting the tariff mainly in response to foreign import prices rather than foreign export prices, which are more unstable.
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    Singapore journal of tropical geography 25 (2004), S. 0 
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    Topics: Geography
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    Topics: Geography
    Notes: Widespread agreement exists on the broad outlines of the concept of sustainable development for developing countries. This calls for a development model capable of meeting basic needs without depleting natural resources at a rate that robs future generations of their use. In this regard, citizen participation is also considered key to legitimise such policy choices. However, there is considerable disagreement over the substance and meaning of the major components of the concept and the relationship between them. This paper argues that positions in policy disputes over the sustainable development of the forest cluster in two distinct approaches: market-friendly initiatives and grassroots development. Since market economies prevail almost everywhere, the question that is posed concerns the conditions under which the grassroots development approach is included as a significant complement to market-friendly initiatives. This is a political question, requiring an examination of actors, interests and power resources. The paper thus applies a political economy framework to a paired comparison of Mexico, where grassroots development approaches (community forestry) had notable successes, and Chile, where market-friendly forest policy crowded out alternatives.
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    Notes: With the spectacular financial collapse of Enron in 2001, Enron and Shell's Rio San Miguel-Cuiabá gas pipeline gained international notoriety for degrading the last, most intact dry tropical forest in the world, Bolivia's Chiquitano forest. The paper uses specific case studies, including the case of the Cuiabá pipeline, to examine how economic restructuring sponsored by the World Bank, International Monetary Fund (IMF) and Inter-American Development Bank (IDB) facilitated the entrance of multinational oil corporations that have caused significant social and environmental impacts in Bolivia. The paper explores the influence of international financial institutions and multinational oil corporations on Bolivian state institutions, particularly their ability to regulate and address impacts caused by developments in the hydrocarbons sector. It concludes that neoliberal policies, which resulted in partial privatisation of the state oil company and in expanded control over natural resources by multinational corporations (MNCs), were detrimental to sensitive ecosystems and indigenous inhabitants.
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    Notes: Decentralisation, the transfer of powers to a lower level of government, is thought to encourage more efficient and equitable management of natural resources. Participation of civil society organisations (CSOs) is considered critical to create positive outcomes of decentralisation. Here we examine aspects of civil society participation in decentralised management using the case of Brazil's water resources management. Several Brazilian states have enacted reforms mandating watershed committees in which the participation of civil society is either encouraged or required. However, actual participation of civil society is not yet well understood. To assess participation, we collected qualitative data on watershed districts in three Brazilian states (Bahia, Paraná and São Paulo). Our findings reaffirm the importance of the state in establishing a transparent legal framework to encourage participation and in defining “civil society”. The ability of civil society leaders to obtain and deploy local environmental knowledge, which frames environmental issues in new geographical scales, is useful to achieve the efficiency and efficacy objectives of decentralisation. However, by “upscaling” political activities beyond decentralisation's new territories, CSOs could make decentralisation irrelevant to local environmental issues.
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    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography
    Notes: Since the 1990s, international water sector reforms have centred heavily on economic and market approaches. In regard to water resources management, tradable water rights have been promoted, often supported by the neoliberal model adopted in Chile. Chile's 1981 Water Code was reformed to comprise a system of water rights that could be freely traded with few restrictions. International financial institutions have embraced the Chilean model, claiming that it results in more efficient water use, and potentially fosters social and environmental benefits. However, in Chile the Water Code is deeply contested. It has been criticised for being too permissive and has produced a number of problems in practice. Moreover, attempts to modify it have become the focus of a lengthy polemic debate. This paper employs a political ecology perspective to explore the socio-environmental outcomes of water management in Chile, drawing on a case study of agriculture in the semi-arid Norte Chico. The case illustrates how large-scale farmers exert greater control over water, while peasant farmers have increasingly less access. I argue that these outcomes are facilitated by the mode of water management implemented within the framework of the Water Code. Through this preliminary examination of social equity and the environmental aspects of water resources management in Chile, I suggest that the omission of these issues from the international debates on water rights markets is a cause for concern.
    Type of Medium: Electronic Resource
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  • 100
    Electronic Resource
    Electronic Resource
    Oxford, UK : Blackwell Publishing Ltd
    Singapore journal of tropical geography 25 (2004), S. 0 
    ISSN: 1467-9493
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography
    Notes: Books reviewed in this article: Organising Labour in Globalising Asia. Jane Hutchison and Andrew Brown (eds.) Good Times and Bad Times in Rural Java. Jan Breman and Gunawan Wiradi Development Fieldwork: A Practical Guide. Regina Scheyvens and Donovan Storey (eds.) Rethinking Development Geographies. Marcus Power Postcolonial Urbanism. Southeast Asian Cities and Global Processes. R. Bishop, J. Phillips and W.W. Yeo (eds.) Environment, Knowledge and Gender: Local Development in India's Jharkhand. Sarah Jewitt
    Type of Medium: Electronic Resource
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