The energy constraint in the 1980s and the scope for import substitution in Western Europe

Various policies are being proposed for reducing the energy dependence of Western Europe during the 1980s. This paper discusses their impacts through the use of a simple simulation model under different assumptions concerning energy prices conservation measures and overall economic growth. It also assesses broad energy prospects for three regions of Western Europe up to 1990. In particular, the paper analyzes the scope for substituting domestically produced energy for imported energy. Tentative policy recommendations are presented following presentation of the results. Preference is expressed for combined price-cum-rationing measures. Coordinated and generalized energy consumption policies, so as to improve the energy efficiency for both intermediate and final uses, are also discussed.     

Identities, conflicting behavioural norms and the importance of job attributes

The paper empirically expounds the richness of the identity approach to labour-market behaviour by allowing individuals to experience identity conflict. Specifically, it investigates the relationship between the importance individuals attach to labour-market activities - which is influenced by the identity to which they adhere - and their preferences for job attributes. The analysis shows that individuals who consider labour-market success as instrumental for achieving their life goals tend to attach importance to job characteristics such as pay level and career and training opportunities. Individuals for whom non-labour-market activities are important and in conflict with labour-market activities are found to attach importance to the possibility of working on a convenient time schedule. Moreover, consistently with the identity approach to labour-market behaviour, men appear to resolve the conflict between career and non-work activities in favor of the former.Finally, unobserved factors that increase the desire to work part-time have a negative impact on the likelihood of attaching importance to the training and career opportunities offered by the job.     

A Model of the Consumption Response to Fiscal Stimulus Payments

A wide body of empirical evidence finds that approximately 25 percent of fiscal stimulus payments (e.g., tax rebates) are spent on nondurable household consumption in the quarter that they are received. To interpret this fact, we develop a structural economic model where households can hold two assets: a low‐return liquid asset (e.g., cash, checking account) and a high‐return illiquid asset that carries a transaction cost (e.g., housing, retirement account). The optimal life‐cycle pattern of portfolio choice implies that many households in the model are “wealthy hand‐to‐mouth”: they hold little or no liquid wealth despite owning sizable quantities of illiquid assets. Therefore, they display large propensities to consume out of additional transitory income, and small propensities to consume out of news about future income. We document the existence of such households in data from the Survey of Consumer Finances. A version of the model parameterized to the 2001 tax rebate episode yields consumption responses to fiscal stimulus payments that are in line with the evidence, and an order of magnitude larger than in the standard “one‐asset” framework. The model's nonlinearities with respect to the rebate size and the prevailing aggregate economic conditions have implications for policy design.     

Genetic control ofHylemya antiqua III. Differences in pupation ability between two strains

Summary Some relevant traits of a wild (L) and a laboratory (C) strain ofHylemya antiqua (Meigen), determining differences in their pupation ability under experimental conditions have been investigated in relation to genetic control. The wild strain showed an intrinsic higher pupation ability than the laboratory strain. The minimum feeding period was 0.6 days longer for the C strain. The minimum larval dry weight was different for the two strains. With a normal feeding period C larvae pupated on average 1.63 days later than L larvae. By the shortening of the larval feeding period an acceleration of the larval development of both strains was observed: the acceleration of development was more marked for the wild strain. This result has been contrasted with published works onDrosphila. The consequences of these differences as far as the competitive ability of each strain is concerned, have been discussed in relation to genetic control.     

Foreign Direct Investment,Trade, and Skilled Labour Demand in Eastern Europe

In this paper, we study the effects of inward foreign direct investment (FDI) and trade on relative skilled labour demand in Poland, Hungary, and the Czech Republic. Our estimates show significant heterogeneity in the FDI effect across the three economies: the effect is always significantly positive for Hungary, weakly negative for Poland, and negligible for the Czech Republic. As to trade, we find much more homogeneity in coefficient estimates, which are generally negative for all countries, although significant only in the case of Hungary.     

KNOWING THE RIGHT PERSON IN THE RIGHT PLACE: POLITICAL CONNECTIONS AND RESISTANCE TO CHANGE

We use a political economy model of Schumpeterian growth with entry to investigate how an incumbent politician can strategically use the level of red tape to acquire incumbency advantage. By setting sufficiently high red tape, the politician induces the incumbent firm in the intermediate sector to invest in political connections, which are valued also by voters, who recognize that bureaucratic costs can be reduced by connected firms. Within this framework, we study the Markov perfect equilibria of an infinitely repeated game among politicians, firms, and voters, and show that all equilibria are characterized by investments in political connections and the re‐election of the incumbent politician. Political connections may prevent entry of advanced competitors and cause the economy to lag behind the technological frontier. Our model provides a possible explanation for the persistence of inefficient democracies and political barriers to technology development, where these reflect shared rather than conflicting interests.     

Bridge closure in the road network of Lombardy: a spatio-temporal analysis of the socio-economic impacts

Statistical Methods & Applications - This paper introduces a methodology to evaluate the socio-economic impacts of closure for maintenance of one or more infrastructures of a large and complex...     

Employers' Recruitment Behaviour: An Empirical Analysis of the Role of Personnel Management Attitudes

The practical importance of recruitment is witnessed by the existence of specific personnel management functions within firms. The aim of the paper is to investigate the importance of firms' personnel management attitudes for recruitment procedures. We focus on the choice of the first search channel and on the subsequent search spell. The model is empirically estimated by using a data set on recruitment behaviour of Dutch firms. The results show that personnel management considerations are important for the choice of the recruitment channel. It appears that advertisement is preferred to the informal channel in that employers believe it is faster and generates applicants who better comply with the hiring standards. Furthermore, employers turn out to prefer mainly the informal channel when recruitment costs are considered important.     

A GLOBAL VIEW OF CROSS‐BORDER MIGRATION

This paper evaluates the global welfare impact of observed levels of migration using a quantitative multi‐sector model of the world economy calibrated to aggregate and firm‐level data. Our framework features cross‐country labor productivity differences, international trade, remittances, and a heterogeneous workforce. We compare welfare under the observed levels of migration to a no‐migration counterfactual. In the long run, natives in countries that received a lot of migration—such as Canada or Australia—are better off due to greater product variety available in consumption and as intermediate inputs. In the short run, the impact of migration on average welfare in these countries is close to zero, while the skilled and unskilled natives tend to experience welfare changes of opposite signs. The remaining natives in countries with large emigration flows—such as Jamaica or El Salvador—are also better off due to migration, but for a different reason: remittances. The welfare impact of observed levels of migration is substantial, at about 5% to 10% for the main receiving countries and about 10% in countries with large incoming remittances.