Is the Employment Function Structurally Unstable? An Empirical Test: Italian Manufacturing Industry, 1970–1984

Abstract. This paper tests the hypothesis that the high variability of the real input prices (especially real wage) coefficients in the empirical employment equations reflects structural characteristics of the economy considered, namely the balance of power between trade unions and fums. A dynamic equation with output, real wage and real prices of raw materials as explanatory variables is estimated using Italian manufacturing industry data 1970-1984. The model appears to be well specified and consistent with the literature. However, extensive parameter stability analysis yields results compatible with the view of the employment equation as structurally unstable. The fact that the equation appeared to be well specified and representative arouses the suspicion that other equations for different periods and economies could be equally unstable.     

Belief‐Free Equilibria in Games With Incomplete Information

We define belief‐free equilibria in two‐player games with incomplete information as sequential equilibria for which players' continuation strategies are best replies after every history, independently of their beliefs about the state of nature. We characterize a set of payoffs that includes all belief‐free equilibrium payoffs. Conversely, any payoff in the interior of this set is a belief‐free equilibrium payoff. The characterization is applied to the analysis of reputations.     

Bayesian variable selection for correlated covariates via colored cliques

We propose a Bayesian method to select groups of correlated explanatory variables in a linear regression framework. We do this by introducing in the prior distribution assigned to the regression coefficients a random matrix $G$ that encodes the group structure. The groups can thus be inferred by sampling from the posterior distribution of $G$ . We then give a graph-theoretic interpretation of this random matrix $G$ as the adjacency matrix of cliques. We discuss the extension of the groups from cliques to more general random graphs, so that the proposed approach can be viewed as a method to find networks of correlated covariates that are associated with the response.     

The banking industry in Jordan

This paper examines the structure and performance of the banking industry in Jordan during the period 2000–2006. The Jordanian banking industry is free of extensive state ownership and government direction of the economy. These positive features are reflected by the absence of dominant state-owned banks and by the limited use of directed credit programs, interest rate controls, and credit ceilings. The banking industry is well developed, with bank assets representing 239.80 percent of the GDP at the end of 2006, which is a high percentage compared with other developing countries in the region.     

Agricultural Exports and the Environment: A Cross‐National Study of Fertilizer and Pesticide Consumption*

Abstract The mass consumption of agrochemicals, including manufactured fertilizers and pesticides, by industrialized agricultural systems worldwide threatens human health and the health of ecosystems. The production of these agricultural inputs is a highly energy‐ and capital‐intensive process, and their application contributes to a variety of direct and indirect impacts on the environment. This study is an analysis of the relationships between international trade in agricultural products and the consumption of these synthetic compounds. Using OLS regression models and data from World Bank and UNFAO, we analyze cross‐national data to examine the relationship between structural factors, such as economic development and export intensity, and both fertilizer and pesticide consumption. The findings are considered from the opposing theoretical perspectives of international political economy (IPE) and neo‐liberal modernization (NLM). The results generally support the claims of IPE and contradict those of NLM, indicating that increases in exports of agricultural products contribute to increases in fertilizer and pesticide consumption within nations. These results call into question policies that promote increased trade liberalization in agricultural products.     

Ranking opportunity sets in the space of functionings

We develop a ranking of compact, convex and comprehensive opportunity sets defined in the evaluative space of individual functionings. We suppose the existence of a target, that is a multi-dimensional bliss point in terms of functionings. This leads us to define concepts such as essentiality and freedomin a novel way. As a main result, we give an axiomatic characterization of the ranking obtained by minimizing the Euclidean distance between each opportunity set and the target.     

A Theory of Access*

Abstract The term “access” is frequently used by property and natural resource analysts without adequate definition. In this paper we develop a concept of access and examine a broad set of factors that differentiate access from property. We define access as “the ability to derive benefits from things,” broadening from property's classical definition as “the right to benefit from things.” Access, following this definition, is more akin to “a bundle of powers” than to property's notion of a “bundle of rights.” This formulation includes a wider range of social relationships that constrain or enable benefits from resource use than property relations alone. Using this framing, we suggest a method of access analysis for identifying the constellations of means, relations, and processes that enable various actors to derive benefits from resources. Our intent is to enable scholars, planners, and policy makers to empirically “map” dynamic processes and relationships of access.     

A multiattribute measure of human development

A measure of human development, which is not affected by some relevant drawbacks of the commonly utilized measures, is constructed. It is a function of several attributes associated with various factors — economic, social, environmental — and also includes non-homogeneous attributes. It is non-linear in its variables, so that it includes possible interactions among the attributes. Furthermore, it takes into account public opinion about human development through a well-defined procedure of assessment elicitation. The formulation of the human development function constituting the measure is described when considering just one attribute and then several attributes, and the difference between independence and dependence in assessment is shown. Such a procedure is applied to the measurement of human development in 9 countries of the EU, by using thirteen attributes related to the economic, social and environmental fields as well as to the quality of life.