FISCAL POLICY AND TRADE ADJUSTMENT: ARE THE DEFICITS REALLY TWINS?

Since the mid 1980s, an extensive emprical literature has examined the relationship between U.S. Fiscal deficits, exchange rates, and trade balances. We investigate two questions that continue to spark debate: do increased government deficits casue doller appreciation, and do fiscal deficits lead to higher trade deficits (the popular ‘twin deficit’ notion)? We examine these issues fusing a five-variable VAR system, generating posterior probability bounds to assess significance. Our result provide some evidence that growing goverment deficits apperciate the dollar, and support the “twin deficit” notion that government deficits contrinute to trade deficits.     

THE IMPACT OF HIGH-TECH CAPITAL ON PRODUCTIVITY: EVIDENCE FROM AUSTRALIA

This article examines the relationship between high-tech capital use and productivity. Using Australian data, some evidence is found of a positive relationship between high-tech capital use and productivity in the market sector, but there is much less evidence of excess returns. These results are robust to the use of a variety of different measures of high-tech capital. At the industry level however, the relationship is significant and positive for only some industries. This suggests that the benefits of investment in high-tech capital are not spread evenly across the economy. (JEL O3 )     

STRATEGIES TO SECURE COMPLIANCE FOR A MALL INTERCEPT INTERVIEW

Subjects in a shopping mall were approached with a request toparticipate in a survey. Half the subjects were touched andgazed at by interviewers and the other half were not. Thesenonverbal techniques increased compliance to participate inthe interviewing task and somewhat decreased respondents' perceivedburden. The touch and no-touch groups did not differ in responsequality, apparent response bias, or volunteer bias. Compliancewas related to the gender of the interviewer but not relatedto that of the respondent. Implications for mall intercept surveysare discussed.     

Selecting Students for Social Work Training

Summary Research into the interview as an instrument of selection isconsidered and its use in relation to selection for social worktraining examined. An account is given of a research projectundertaken to compare selection decisions made on the basisof written applications with those reached after additionalinterviews. It was found that in the majority of cases the additionalinformation from interviews did not materially affect the decisionsmade. The implications of these findings are discussed     

Differing Conceptions of a Child's Needs: Some Implications for Social Work with West African Children and their Parents

Summary The 1975 Children Act implies an increased statutory involvementof local authority social workers with West African childrenwho are fostered, and with their parents. The Act gives a newurgency to the need for a greater understanding of West Africanculture if effective social work help is to be given and suchwork should help to prevent legal disputes concerning the custodyof these foster children. A general discussion of variablesthat influence child-training is followed by a more specificconsideration of West African and British approaches. Importantdifferences are noted and areas of possible misunderstandingindicated. The mediating role that the social worker could playin this cross-cultural fostering is emphasized. Attention isdrawn to limitations in our present knowledge and the need forfurther research is stressed. Not only would this have practicalvalue but, it is suggested, it could increase our knowledgeof socialization processes in general.     

AN EQUILIBRIUM POLITICO-ECONOMIC MODEL

A politico-economic model is developed in which rationally formed forecasts are available to all traders. Systematic government policy is neutral, but a large majority of the electorate, those who adopt rationally formed forecasts but do not know the model, hold the government responsible for the economy's performance. Real and political shocks generate novel feedback effects due to anticipated regime changes. These feedback effects may amplify or dampen the initial shocks; this depends on whether the government follows a high or low monetary growth rate rule and whether inflation or unemployment is the main concern of the electorate.