A SIMPLE MACROECONOMIC MODEL WITH MONOPOLISTIC FIRMS

This paper presents a simple macroeconomic model in which firms' outputs are imperfect substitutes, and explores the macroeconomic implications of monopolistic competition. The model is classical in some respects, but Keynesian in others. Multiple or unstable equilibria are not unlikely. Permanent price controls will, in principle, be desirable, since they allow a permanent and efficient increase in aggregate output. Small costs of price adjustment may induce large deviations of output from the natural rate. Fiscal policy will generally affect aggregate output, but the sign and magnitude of the government expenditure multiplier cannot be determined a priori.     

Banks,Insurance Companies,and Discrimination1

This article examines some of the reasons why banks and insurance companies have been accused of discrimination, and shows that this is by and large a false accusation. Economic analysis demonstrates that racial discrimination is not a profit‐maximizing strategy. Actually, unwise public policies are actually precluding many consumers from the market.     

Children's residence patterns and educational attainment in rural South Africa, 1997

Using data collected by the Agincourt Health and Population Programme in a rural sub-district of South Africa's Northern Province, this paper describes the residential arrangements of a population in rural South Africa, and analyses the impact of these arrangements on children's educational attainment. Children with co-resident parents generally have higher levels of schooling than those who have one or no co-resident parents. However, having a father who is away from home as a migrant appears to benefit older children whereas, for girls aged 11 to 15, having a mother who is a migrant lowers educational attainment. Children who live in households headed by Mozambican refugees have lower levels of schooling than those who live in non-refugee households. Living in a household headed by a woman is not associated with lower levels of education and, for some age-sex groups, appears to be an advantage.     

The use of survey techniques in the review and evaluation of manufacturing projects

Leyland DAF arc commercial vehicle manufacturers based in Leyland, Lancashire. The commercial vehicle industry is characterized by a requirement for regular model changes to support both marketing and legislative developments. The industry is continually striving for improvements in the processes com rolling these changes. This paper explains how a project review procedure, utilizing surveying techniques, was established to evaluate the effectiveness of existing product introduction/modification procedures and hence highlight areas for improvement. The system is now in regular use on new vehicle projects of all types, including both the introduction of new models and product transfers between assembly plants. Potential areas for improvement, identified by surveys that have been completed to date, have been included as objectives for the next generation of new model introductions. These process improvement initiatives can now be investigated pro-actively and the potential risks removed before the errors recur.     

Comparing Normal Random Samples,with Uncertainty About the Priors and Utilities

Abstract. We study the problem of deciding which of two normal random samples, at least one of them of small size, has greater expected value. Unlike in the standard Bayesian approach, in which a single prior distribution and a single loss function are declared, we assume that a set of plausible priors and a set of plausible loss functions are elicited from the expert (the client or the sponsor of the analysis). The choice of the sample that has greater expected value is based on equilibrium priors, allowing for an impasse if for some plausible priors and loss functions choosing one and for others the other sample is associated with smaller expected loss.     

Beyond control? The mechanics and dynamics of ‘informal’ remittances between Europe and Africa

Abstract Policy making usually assumes that the best way to harness migrant remittances for development is by shifting them into the regulated money transfer sector. However, much research evidence concludes that alternative methods are often cheaper and more reliable, accessible and convenient. In this article, we explore this tension between policy objectives and evidence. Based on a review of remittance mechanisms in seven sub‐Saharan African countries, we question the validity of the distinction between ‘formal’ and ‘informal’ remittances. We conclude that the formalization of remittance systems should not be approached as a regulatory task carried out from the top down, but as a bottom‐up evolutionary and organic process that should be encouraged. We suggest that the current regulatory thrust in this area is likely to be counterproductive, since it risks undermining the many vibrant institutions emerging through the movement of migrants and their money, together with their potential to enhance much needed economic and social development.