SOCIAL PREFERENCES AND TAX POLICY DESIGN: SOME EXPERIMENTAL EVIDENCE

This article reports the results of a set of experiments designed to examine whether a taste for fairness affects people's preferred tax structure. Using the Fehr and Schmidt model, we devise a simple test for the presence of social preferences in voting for alternative tax structures. The experimental results show that individuals demonstrate concern for their own payoff and inequality aversion in choosing between alternative tax structures. However, concern for redistribution decreases as the deadweight loss from progressive taxation increases. Our findings have important implications for tax policy design. ( JEL C92, D63, H21, H23)     

A SIMPLE MACROECONOMIC MODEL WITH MONOPOLISTIC FIRMS

This paper presents a simple macroeconomic model in which firms' outputs are imperfect substitutes, and explores the macroeconomic implications of monopolistic competition. The model is classical in some respects, but Keynesian in others. Multiple or unstable equilibria are not unlikely. Permanent price controls will, in principle, be desirable, since they allow a permanent and efficient increase in aggregate output. Small costs of price adjustment may induce large deviations of output from the natural rate. Fiscal policy will generally affect aggregate output, but the sign and magnitude of the government expenditure multiplier cannot be determined a priori.     

Care Management and Professional Autonomy: The Impact of Community Care Legislation on Social Work with Older People

Correspondene to Mark Lymbery, Centre for Social Work, School of Sociology and Social Policy, University of Nottingham, University Park, Nottingham NG7 2RD, UK. e-mail: Mark_Lymbery{at}nottingham.ac.uk Summary The 1990 National Health Service and Community Care Act appearedto herald a new dawn for social work with older people, whichhad previously been a relatively neglected and undervalued areaof social work practice. The legislation proposed a new rolefor social workers as ‘case managers’, with considerableautonomy and flexibility about the way in which the ‘casemanager’ responded to need. By the time community carepolicy was implemented, the role of ‘case manager’had been transformed into that of ‘care manager’,with a focus which emphasized procedural and managerial requirementsrather than a more flexible professional practice. This paper explores the extent to which this shift has substantivelyaltered the nature of social work practice with older people.It outlines key theories of professions and their applicabilityto social work, and critically analyses the impact of the ‘newmanagerialism’ within social services departments. Thepaper also examines the nature of social workers' practice witholder people following the impact of community care legislation,and concludes that the impact on the social work professionhas been to locate an increasing control of practice with socialwork managers, with potentially serious consequences for thecontinuation of a distinctive social work role in relation toservices for older people.     

Discourse and Resistance in Care Assessment: Integrated Living and Community Care

Correspondence to Mark Priestley, Disability Research Unit, University of Leeds, Leeds, LS2 9JT, UK Summary This paper illustrates how value conflicts between the competingphilosophies of community care and integrated living are playedout at a micro level. The experiences of service users in Derbyshireshow how the process of care assessment can perpetuate traditionaldiscourses of disability based on dependency, individualizationand segregation. By contrast, self-assessment within an integratedliving approach opens up new possibilities for resistance throughthe supported self-empowerment of service users. Moreover, theparticipation of disabled people in managing their own affairschallenges established cultural values about the role of disabledpeople in society.     

TEACHING OPERATIONS MANAGEMENT FROM A SCIENCE OF MANUFACTURING

Recently, there has been much concern over the dumbing down of production and operations management (pom) courses in response to the repudiation of the theory-heavy operations research (or) approach that became dominant during the 1970s. However, although almost everyone agrees that a new POM framework is needed, there is as yet little agreement on what it should be like. As a result, there is currently a huge variance among POM courses at different universities, ranging all the way from traditional OR courses to almost purely anecdotal case-oriented courses. Although academics have struggled with the search for an appropriate level of methodological rigor in POM courses, our customers (i.e., students and the firms that hire them) have been inundated by a blizzard of management buzzwords. Although many of these undoubtedly contain kernels of truth, the very nature of the buzzword approach is such that it provides little balanced guidance as to what methods work well in a given situation. In recognition of these disparities, POM researchers have begun trying to systematically describe the underlying behavior of production systems. The goal is to provide a framework that will help organize educational approaches and business practices in a consistent fashion. In this paper, we describe our attempt at the needed “science of manufacturing,” which we call factory physics, and illustrate how it fits into a new paradigm of POM teaching.     

SUPPLY SHOCKS AND THE INTEREST RATE

The classic example of a temporary supply shock is a failed agricultural harvest. Theoretically, adverse temporary supply shocks are predicted to raise the ex ante real interest rate; that is, a below-normal harvest raises the interest rate. Apparently, however, no one has tested this conclusion using agriculture as the supply shock. This paper examines nineteenth century French data and confirms the hypothesis that deviations from the "average" harvest have an inverse effect on the interest rate. It also finds that temporary fluctuations in government spending affect the interest rate: higher than normal government spending raises the interest rate.     

THE IMPACT OF EXTERNAL PARTIES ON BRAND-NAME CAPITAL: THE 1982 TYLENOL POISONINGS AND SUBSEQUENT CASES

An examination of the 1982 Tylenol poisonings reveals stock market losses to Johnson & Johnson that far exceed direct costs and losses shared with other pain-reliever producers; this evidence provides support for the Klein and Leffler [1981] theory of brand names as quality-assuring mechanisms. Of the subsequent cases, only the 1986 Tylenol poisonings were associated with significant stock market losses. Prior to the 1982 and 1986 Tylenol poisonings, Tylenol was the number one pain reliever, whereas the other pain relievers that were poisoned had a much lower level of brand-name capital to lose.