Hypothesis testing in path models

The three prior criteria for linear recursive causal (path) model evaluation are shown to be equivalent to a more general technique. Hotelling's T² is introduced as a means of evaluating general hypotheses for the entire model, and some consequences of treating the model as a whole are discussed. The “twice standard error” rule is shown to be misleading for a number of reasons. An example of the application of the procedure and the computational technique is given, and some additional applications are suggested.     

Time to Exchange the Exchange‐Rate Regime: Are Hard Pegs the Best Option for Low‐Income Countries?

This paper revisits the debate over the most appropriate exchange‐rate regime for low‐income countries. The debate revolves around: the effect of the exchange‐rate regime on macroeconomic management, particularly inflation; the links between the exchange‐rate regime and vulnerability to crisis (often in the form of twin banking and currency crises); and the effect on international trade and competitiveness. The theoretical and empirical literature and the views of international organisations are reviewed. It is concluded that a hard peg might constitute the most appropriate regime but this is contingent on a number of important preconditions. This view, supported by recent empirical research, is shown to be at odds with the current orthodoxy of international organisations such as the IMF.     

Editorial

This issue brings together a number of articles concerned withextending theoretical understanding of community developmentrelated issues alongside those that examine key factors forsuccessful organization building and community mobilization.In doing so, it again highlights the significance of women'sinvolvement in community initiatives, local economic developmentand poverty alleviation. It begins with an article by Fred Powelland Martin Geoghegan who attempt from the perspective of partnershipgovernance within Ireland to locate community development withinwhat they see as a new world order. They argue that communitydevelopment remains the embodiment of a strong participativedemocracy, re-inventing politics