Partial vs. general equilibrium analysis and choice of functional form: Implications for policy modeling

In formulating empirically tractable, economywide models, researchers are often forced to employ “convenient” functional forms. These forms embody restrictive maintained hypotheses. Alternatively, flexible functional forms may be utilized in a partial equilibrium setting. Estimation and incorporation of flexible functions into computable general equilibrium models is considerably more demanding of research resources. Assuming that shortcuts will continue to be necessary for researchers attempting to respond to current policy problems, this paper compares these two alternatives. Specifically, a general equilibrium model for New York State is employed to evaluate the relative performances of flexible partial equilibrium models and their more restrictive, general equilibrium counterpart. In the particular application considered, the former approach is found to dominate the latter.     

MFN tariff treatment of imports from China: Effects on U.S. employment

This article estimates the effects on U.S. output and employment of granting most-favored-nation (MFN) tariff treatment to imports from the People's Republic of China (PRC). Import demand elasticities are used to estimate changes in imports resulting from the lower tariff rates. A highly disaggregated U.S. input-output table and labor-output ratios are used to convert changes in imports into changes in domestic output and employment at a detailed sectorial level. U.S. import restraints on the textile and apparel industry are incorporated into the analysis. The article explores the implications of increased imports from the PRC for U.S., PRC, and LDC policy makers.     

Galbraith's theory of the mature corporation

The present paper deals with the Galbraithian theory of the managerial firm. Galbraith has stressed corporate size and has questioned the effectiveness of the market demand, technology and capital market constraints, which in conventional theory restrict the size of the firm.Galbraith represents the objectives of the corporation in terms of a conventional lexicographic objective function with some minimal level of profits (in terms of cash flow) being ranked the dominant objective. Also in his treatment of the corporate constraints, Galbraith does not move much beyond the current state of knowledge. The assumption of consumer sovereignty has long been relegated to the text-book literature, and the firm's control over the quality of its product (its price elasticity) has been generally recognized. Similarly, it has been known that the capital market is not perfect so that it is unlikely to constrain the expansion of the firm with some given investor determined earning constraint. In his attempt to show the technostructure's ability to plan the rate and the direction of the technological development Galbraith did not, however, meet with wide support from empirical research and analysis. It is extremely difficult to test the firm's control over its production technology, and while the few industry studies available can hardly be used to reject the Galbraithian position, there is not sufficient evidence to support a generalization of Galbraith's conjecture.While individually these constraints have been analyzed and discussed in the literature, Galbraith has combined these results and has been able to show that in the industrial state the qualitative laws of economic common sense do not hold. The importance of this conclusion is not only academic. Efforts to control corporate allocations through rate controls, antitrust litigation, and in other ways emanate from the conventional theory of firms and markets and do not fit the industrial state. In this state corporate size does matter and cannot be treated as random: The larger the corporation the more perfect the control it assumes over its environment and the higher the efficiency with which it plans its over-all operations.We acknowledge the helpful comments of a referee of this journal.     

Determinants of presidential position taking in Congress, 1949–1995

In this paper we seek to explain the activity presidential position taking on roll call votes in the House. Position taking may help presidents pursue their policy agendas, but time and available resources constrain their ability to take positions. Even though position taking is a discretionary presidential action, it occurs in the legislative arena and, thus, presidents must consider elements in both institutions as well as outside conditions when making this decision. Accordingly, we posit a multiple perspectives approach to explain the number of presidential positions on votes in the House. Our multivariate two-stage least squares regression reveals that variables from all three environments (executive, legislative and exogenous) within our multiple perspectives approach are necessary to adequately explain presidential position taking overall and when divided according to domestic and foreign policy positions.     

Sources of growth and cyclical stability for Nevada counties: Transfer payments and property income

The growing relative number, the improved economic well-being, and the migration of elderly retirees is not only reshaping the social and economic structure of many areas, it is also modifying both long-term and short-run patterns of economic growth. Transfer payments and property incomes, two of the most important source of elderly income, have been among the leading sources of national income growth over the past several decades. Unlike most labor-related industry sources of earnings, the level of transfer payments and property incomes received by the residents of the region is not directly dependent upon local economic activity. Consequently, as transfer payments and property incomes of elderly retirees become increasingly important sources of income and purchasing power within a region, they also can alter regional short-run cyclical patterns of income growth. This article examines the pattern of growth of transfer payments and property incomes in the context of national economic cycles, and explores the implication of those findings on metropolitan and nonmetropolitan Nevada economies.     

The Peltzman hypothesis revisited: An isolated evaluation of offsetting driver behavior

Nearly all of the previous investigations of driver behavior under varying safety conditions have only been able to evaluate the issue of offsetting driver behavior indirectly. Some studies note that engineering estimates of the aggregate improvements of automobile safety enhancements are substantively larger than economic estimates of the same effects. Others have found that non-occupants such as motorcyclists and pedestrians are under greater risk of incurring accidents when automobiles are made safer. Although these observations are consistent with the hypothesis that drivers respond to safety enhancements by driving less safely (having been instilled with a sense of greater protection provided by the safety improvements), they do not provide a direct evaluation of the relationship between driving environment and driver behavior. Thus, factors other than offsetting behavior may be generating these observed results. A few studies have tested the offsetting behavior hypothesis more directly, but only under highly specific safety conditions and narrow measures of driver behavior. This article undertakes an isolated analysis of driver behavior under varying safety conditions, with data which allows for more general changes to safety conditions and broader measures of driver behavior. Estimates obtained from the evaluation of individual accident reports lend support to the offsetting behavior hypothesis and imply that both aggressive behavior and nonaggressive (inattentive) driving behavior are likely to increase as the driving environment becomes safer.     

Path-related empirical research on M&A-outcome: review and research agenda

This article attempts to reflect the current state and progress of contemporary research on financial and non-financial M&A outcome. Based on a review of 183 empirical M&A studies an integrative framework is developed, in which impact factors are classified into four major dimensions to explore the impact on M&A outcome: antecedents, transaction content characteristics, transaction process characteristics, and the transaction itself. The review reveals that M&A research is dominated by studies focusing on state variables at the expense of path-related variables. The review also shows that, to date, neither state-related research nor path-related research on financial and non-financial M&A outcome categories have reached maturity. Although there is still room for clarifying the impact of various state-related variables, the most valuable new insights are expected to emerge from researching path-related variables. Building on these insights, an extensive future research agenda is presented, which focuses on path-related research questions and methodological issues.     

Modelling change in cognitive understanding with finite mixtures

Psychological theories often posit the existence of several different states. Individuals are viewed as belonging to one of the states at a given age, but with development pass to another state. A main problem in evaluating such theories is representing the transition from one state to another over age. A stochastic transition framework is proposed which should be useful in many different settings. The model is illustrated with data from a cognitive development task.     

Relations between stressors and group perceptions: Main and mediating effects

Most orgnizations these days utilize groups for the performance of at least some tasks. There is therefore a need to examine the relationthip between job stressors and group functioning. Until now it has been proposed that employees who perceive high levels of stress in their jobs will have negative perceptions of the groups in which they work, in the form of reduced altruism and collective efficacy. They may also have higher levels of psychological strain. This study examined relations between job-related stressors and group perceptions (collective efficacy 3rd the prevalence of altruistic behaviour) in a sample of 2403 mililitary personnel, comprising 31 companies in two US Anny combat brigades. We also examined whether group perceptions mediated the relationship between stressors and both job satisfaction and subjective well-being. Results indicated that stressors were negatively associated with measures of group perceptions, and both job satisfiction and well-being. Furthermore, mediated regression analyses suggested that relations between interpersonal conflict and both job satitfaction and well-being were partially mediated by both group perception measures. These finding suggest that work-related stressors may negatively impact on group functioning, which may lead to employee strains. Implications of these finding are discussed, and suggestions are made for future research.     

An Evaluation of Caller Satisfaction with Solution-Focused Telephone Counselling

Abstract

‘Practice Forum’ is intended to provide a forum for social work practitioners to share their practice with others; to describe what they are doing and assess its effectiveness.

We extend an invitation to all social work practitioners to submit articles for ‘Practice Forum’ and we look forward to receiving your contribution.

The telephone is a potentially valuable intervention tool in family counselling. The Child, Adolescent & Family Health Service has been experimenting with a response which combines the traditional advantages of telephone counselling with aspects of Steve deShazer's solution-focused approach (deShazer 1985). In 1990 a study was conducted to evaluate caller satisfaction with this approach. Results indicate a high level of satisfaction with the counselling. At a time of increasing funding cuts and lengthening waiting lists, it is important that as many options as possible remain available to our clients. An expansion in effective telephone counselling services may well be one way of achieving this.