ELASTIC CAPITAL SUPPLY AND THE EFFECTS OF FISCAL POLICY

Existing analyses of the effects of fiscal policy in general equilibrium models have typically been conducted under the assumption that the long-run supply of capital is perfectly elastic at a fixed rate of time preference. These analyses have shown that the long-run response of the capital stock to changes in fiscal policy is crucial to generating the potential for “multiplier” effects in these models. In this paper we ask, what are the implications of relaxing the assumption of perfectly elastic capital supply for the analysis of fiscal policy? We show that with less than perfectly elastic capital supply, the potential for multipliers is actually enhanced. (JEL E62, D90)     

Reconsidering the role of the digital in global production networks

Global production networks (GPNs) have become a key framework in conceptualizing linkages, power and structure in globalized production. However, this framework has been less successful in integrating the influence of digital information and ICTs in production, and this problematic in a world where relationships and power are increasingly mediated by digital information flows and resources. We thus look to adapt the GPN framework to allow more substantive analysis of ‘the digital’. Primarily, this is done through a theoretical analysis of the three core categories of the GPN framework – embeddedness, value and networks – to highlight how these categories can better integrate a more dynamic and contested conceptualization of the digital. Illustrations from research on the digitalization of tea sector GPNs in East Africa highlight how these theoretical advances provide new insights on the digital and its expanding role in economic production.     

PERFECT COMPETITION, URBANIZATION, AND TAX INCIDENCE IN THE RETAIL GASOLINE MARKET

We use monthly gasoline price data for all 50 U.S. states over the period 1984–1999 to examine the incidence of state gasoline excise taxes. Our estimation results indicate full shifting of gasoline taxes to the final consumer. In addition, although we find that gasoline retail prices demonstrate asymmetric responses to changes in gasoline wholesale prices , we find only limited evidence of such behavior for retail prices with respect to gasoline excise taxes. Finally, we find that gasoline markets in urban states exhibit full shifting, but those in rural states (with less competition) demonstrate somewhat less than full shifting . ( JEL H22)     

ON IMPERFECT EVALUATION AND EARNING DIFFERENTIALS

This paper investigates the relationship between the technology for evaluating performance and optimal contract choice. Specifically, the paper examines the different compensation packages that arise when occupations differ in evaluation technology, workers are risk averse, work effort is endogenous, and there exists asymmetric information. In occupations in which it is less difficult to measure output, it is shown that compensation is more closely tied to output; the implications for work effort, the sorting of workers by ability, and average compensation are developed. Analysis of a new data set confirms our predictions concerning earning differentials and wage growth.
The powerful 1.6 million-member National Education Association and other teacher organizations have traditionally fought the notion of rewarding better teachers with more money, arguing that there is no objective way to measure a teacher's competence and that it would lead to favoritism, and bad morale [ Time , June 20, 1983].     

CAPITAL CONTROLS AND DEVIATIONS FROM PROPOSED INTEREST RATE PARITY; MEXICO 1982

An intervention analysis of the Mexican capital control policy of August 1982 shows the policy to have a negative, but temporary, impact on the Mexican deviation from interest rate parity. Previous studies concerning the impact of capital control inteventions have predicted positive effects of capital control policies. These stem from the effective tax capital controls place on foreign capital inflows. When capital controls are also designed to restrict domestic capital outflows, however, their net effect becomes an empirical, rather than theoretical, question.     

The Fletcher Report 1930: A Historical Case Study of Contested Black Mixed Heritage Britishness

Abstract  This article examines a controversial report that focused negatively on mixed heritage children born and raised in the city of Liverpool. The official title was: Report on an Investigation into the Colour Problem in Liverpool and other ports . The social researcher was Muriel E. Fletcher, who had been trained in the Liverpool School of Social Science at The University of Liverpool in the early 1920s. The report was published in 1930 amid controversy for its openly stigmatizing content of children and mixed heritage families of African and European origin. It could be deemed the official outset in defining Liverpool's 'half castes' as a problem and blight to the "British way of life" in the city.     

ARE PART-TIME WOMEN PAID LESS? A MODEL WITH FIRM-SPECIFIC EFFECTS

This paper uses data from a survey of child-care establishments to compare part-and full-time wages within two narrow occupations, one high skill and one low skill. Unlike previous studies, it controls for firm-specific effects. We find that when firm-specific effects are accounted for, only the low-skill workers in our sample receive lower wages for working part-time. On the other hand, when compensation is defined to include prorated fringe benefits, establishments appear to compensate both high- and low-skill part-timers at a lower hourly rate.     

“What do you think of female chastity?” Identity and Loyalty in the National Security State

Abstract  This article explores the relationship between security, identity and loyalty. Focusing on the formative texts and practices underpinning the rise of the national security state in America, while alluding to more recent developments, the article claims that security and identity are inextricably linked, not just in the obvious existential ways, but also in a far more political way: that the fabrication of national security goes hand in hand with the fabrication of national identity, and vice versa. Extending well beyond the question of patriotism as a security trope, this 'identity' permeates the worlds of sexuality and domesticity. To make this case the article pinpoints loyalty as a key political technology for simultaneously gauging identity and reaffirming security, thereby unearthing what might be called a security-identity-loyalty complex.     

COTTON IN A FREE TRADE WORLD

Trade liberalizing reform in the world cotton market would increase world cotton traded an average 2.69% over 5 yr and increase world cotton prices to an average 10.5%. A partial equilibrium model was used to estimate the effects of removing global domestic subsidies and border tariffs for cotton. Trade flows in international markets would be affected as U.S. market share of world cotton exports decline, net cotton-importing countries with minimum domestic and trade distortions import less because of higher cotton prices, and net cotton-importing countries that subsidize domestic production and/or impose border tariffs significantly increase their imports. ( JEL F17, F42, F47, O2)     

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)