Showing papers by "London School of Economics and Political Science published in 1992"

Political power beyond the State: problematics of government

Abstract: This paper sets out an approach to the analysis of political power in terms of problematics of government. It argues against an overvaluation of the 'problem of the State' in political debate and social theory. A number of conceptual tools are suggested for the analysis of the many and varied alliances between political and other authorities that seek to govern economic activity, social life and individual conduct. Modern political rationalities and governmental technologies are shown to be intrinsically linked to developments in knowledge and to the powers of expertise. The characteristics of liberal problematics of government are investigated, and it is argued that they are dependent upon technologies for 'governing at a distance', seeking to create locales, entities and persons able to operate a regulated autonomy. The analysis is exemplified through an investigation of welfarism as a mode of 'social' government. The paper concludes with a brief consideration of neo-liberalism which demonstrates that the analytical language structured by the philosophical opposition of state and civil society is unable to comprehend contemporary transformations in modes of exercise of political power.(1).

Gender and the Development of Welfare Regimes

Abstract: This paper builds on the idea that any further development of the concept of 'welfare regime' must incorporate the relationship between unpaid as well as paid work and welfare. Consideration of the privateldomestic is crucial to a gendered understanding of welfare because historically women have typically gained entitlements by virtue of their dependent status within the family as wives and mothers. The paper suggests that the idea of the male-breadwinner family model has served historically to cut across established typologies of welfare regimes, and further that the model has been modified in different ways and to different degrees in particular countries.

Subset Selection in Regression

Abstract: 8. Subset Selection in Regression (Monographs on Statistics and Applied Probability, no. 40). By A. J. Miller. ISBN 0 412 35380 6. Chapman and Hall, London, 1990. 240 pp. £25.00.

Price, Quality and Trust: Inter-firm Relations in Britain and Japan

Abstract: List of figures List of tables Acknowledgements Introduction Part I. Theory and Concepts: 1. A spectrum of transactional patterns: from ACR to OCR 2. Trust and organisational efficiency Part II. Case Studies and Survey: 3. Setting the scene 4. JJ Electric, GB Electronics and TCP (UK) 5. The analysis of supplier companies Part III. Explanations of Variations: 6. Economic and technological factors 7. The legal framework 8. Banks and financial links 9. Employment system links 10. Entrepreneurship, and the dynamics of small firm creation Part IV. Outcomes and Implications: 11. How ACR-P OCR patterns relate to competitiveness 12. Conclusions Appendix Notes Bibliography.

Loss of Skill During Unemployment and the Persistence of Employment Shocks

Abstract: This paper shows that when unemployed workers lose some of their skills, the effects of a temporary shock to employment can persist for a long time. The key mechanism is a thin market externality that reduces the supply of jobs when the duration of unemployment increases. The paper develops an overlapping-generations model of search equilibrium and shows that different patterns of persistence and multiple equilibria are possible even with constant returns production and matching technologies.

Investment and technical progress

Abstract: Models in which the growth rate is exogenous provide no role for government in determining growth. In our model, growth is associated with investment, through externalities from "learning by watching," rather than with the level of the capital stock. Presumption of a technical progress function with first increasing and then decreasing returns leads to multiple steady-state growth equilibria. There is also an explicit role of government policy in setting tax rates on output. It follows that two economies with identical structures and stochastic tax policies may exhibit very different growth paths over sustained periods, although the stationary distribution of growth rates is the same. Given the desirability in principle of subsidizing investment, various practical methods are considered. Copyright 1992 by Oxford University Press.

Equivalence scale relativities and the extent of inequality and poverty

Abstract: Most inequality and poverty theory analyzes "equivalent income" distributions for homogeneous populations: incomes are assumed to be deflated by an equivalence scale that accounts for differences in needs between households. Yet in practice there is no consensus about what the appropriate equivalence scale is. The authors analyze how the choice of equivalence scale affects inequality and poverty measures, and show that there is a systematic relationship between equivalence scale generosity and the extent of inequality and poverty. They consider most of the measures in common use and provide some empirical illustrations. Copyright 1992 by Royal Economic Society.

Feedback Traders and Stock Return Autocorrelations: Evidence from a Century of Daily Data

Abstract: The authors investigate whether the degree of autocorrelation shown by high frequency stock returns changes with volatility. This may result from nontrading effects, feedback trading strategies, or variable risk aversion. The authors' results indicate that when volatility is low, daily (and hourly) stock returns exhibit positive autocorrelation, but when it is high, returns exhibit negative serial correlation. They also find an important asymmetry--negative serial correlation is more likely after price declines. This is consistent with price declines being more likely to induce positive feedback trading. The authors also find no significant relation between margin requirements and the autocorrelation of returns. Copyright 1992 by Royal Economic Society.

Female labour supply and on-the-job search: an empirical model estimated using complementary data sets

Abstract: We develop an empirical model of labour supply that is consistent with on-the-job search and which is identified and estimated by combining two data sets: the U.K. Family Expenditure Survey which contains information on income and expenditure and the U.K. Labour Force Survey, which has data on hours and job search behaviour. We provide statistical evidence on the compatibility of the two samples for the purposes of estimating our model. We find that search has a direct negative effect on hours of work and we establish a strong positive effect of wages on hours.

Evaluating investments in IT

Abstract: Evaluating the costs and benefits of IT projects is currently a major issue for senior general managers. This paper focuses on a particular aspect of the problem: how organizations appraise IT investments in taking the decision whether to go ahead with them or not. The paper looks first at the different roles of evaluation; second at what is done in practice and third at what might be done given the wide range of techniques that are available and the widely different circumstances in which appraisal is undertaken. A speculative heuristic is proposed for matching an evaluation method with a particular situation. The method is presented in the hope of stimulating further research into the matching problem.

Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data

Abstract: The authors extend the use of a hiring function model whereby job seekers are matched with vacancies to the analysis of regional migration in Britain. Annual data from the National Health Service Central Register for 1975-1989 are used to "show that unemployment and vacancy rates distance and an index of similarities across regions in industry based employment composition help determine migration flows across regions. The hiring function approach offers a consistent way of modelling gross and net flows and helps explain both the high level of gross relative to net flows and the tendency for migration to fall in a recession even when unemployment differentials widen." (EXCERPT)

Diagnostic Checking of Unobserved- Components Time Series Models

Abstract: Diagnostic checking of the specification of time series models is normally carried out using the innovations—that is, the one-step-ahead prediction errors. In an unobserved-components model, other sets of residuals are available. These auxiliary residuals are estimators of the disturbances associated with the unobserved components. They can often yield information that is less apparent from the innovations, but they suffer from the disadvantage that they are serially correlated even in a correctly specified model with known parameters. This article shows how the properties of the auxiliary residuals may be obtained, how they are related to each other and to the innovations, and how they can be used to construct test statistics. Applications are presented showing how residuals can be used to detect and distinguish between outliers and structural change.

Differences in needs and assessment of income distributions

Abstract: The literatures on the assessment of income distributions and on differences in needs are not well integrated. The theoretical literature providing results about evaluations and comparisons of income distributions does not, in the main, consider the implications of non-income differences between income-receiving units, while the equivalence scale literature providing results about the relationship between living standards, incomes and household composition does not consider distributional implications. The aim of this survey is to go some way towards integrating these separate literatures; to consider how to evaluate and compare income distributions while at the same time taking explicit account of differences in household composition.

Real Wage Determination and Rent-Sharing in Collective Bargaining Agreements

Abstract: The microeconomic forces that influence real wages are not fully understood. This paper studies pay determination using data on approximately 600 labour contracts. It finds that the real wage is an increasing function of past profitability in the employer''s industry, and a decreasing function of the level of unemployment in the employer''s region. These results are consistent with rent-sharing theories.

Computational learning theory: an introduction

Abstract: Computational learning theory is a subject which has been advancing rapidly in the last few years. The authors concentrate on the probably approximately correct model of learning, and gradually develop the ideas of efficiency considerations. Finally, applications of the theory to artificial neural networks are considered. Many exercises are included throughout, and the list of references is extensive. This volume is relatively self contained as the necessary background material from logic, probability and complexity theory is included. It will therefore form an introduction to the theory of computational learning, suitable for a broad spectrum of graduate students from theoretical computer science and mathematics.

Industrial Development in Cities

Abstract: Using extensive data on 1970 and 1987 urban characteristics, the paper analyzes changes in employment in specific manufacturing industries in cities between 1970 and 1987. Two sets of questions are the focus. First, what present or past characteristics of a city's economic environment are critical in determining current employment levels in different industries? How much persistence in employment patterns is there over time and what is the source of that persistence? The second set of questions explores what inferences can be made from the data and results concerning the nature of externalities in urban markets, involving diversity of suppliers to firms, information spillovers concerning current market conditions and information spillovers involving the spread of technology. While the literature assumes employment levels in individual industries in individual cities show strong mean reversion ("convergence"), in fact that is not the case in the 1970-87 time period. The raw data show strong persistence. The major source of that persistence appears to be persistence in local demand conditions (i.e., persistence in regional comparative advantage), as opposed to other measured or unmeasured urban characteristics. Retention of employment is also strongly helped by the historical degree of local specialization in the industry, perhaps indicating a form of dynamic externality. Other historical conditions are not important.

Economic and Monetary Union in Europe

Abstract: The European Council's Maastricht Agreement maps out a precise route to monetary union and the eventual introduction of a common currency. My discussion begins with a look at the general arguments for and against monetary union. I shall then discuss the proposed constitution of the European Central Bank and whether it is likely to be conducive to monetary stability, together with some of the problems posed by the transition to the new regime. Finally, I will turn to the issue of rules for the conduct of fiscal policy and the question of "fiscal federalism."

Some strange properties of panel data estimators

Abstract: We study the biases that are likely to arise in practice with panel data when parameters vary across individuals, but this is not allowed for in estimation. We consider both stationary and non-stationary regressors. We find that biases can be severe for relatively small parameter variation, and that this problem is hard to detect. We study in some detail by Monte Carlo the performance of the Anderson-Hsiao estimator in the presence of this particular mis-specification.

Can the poor afford ‘free’ health services? A case study of Tanzania

Abstract: This research was concerned with the feasibility of government charges for health services. The aim was to test the validity of charging individuals not using special facilities and to determine acceptable and equitable charges for specified services. Surveys were conducted for: 1) 29518 prescriptions dispensed at 28 health units in 7 different regions; 2) 892 outpatients at 3 referral hospitals 2 regional hospitals and 4 district hospitals; and 3) 1820 households in 3 urban cities or in locations between mission and government hospitals in 26 rural districts and 15 regions. Current medical services reach 93% of the population within 10 km and 72% within 5 km. Health services are free except for charges for patients in special or private wards at referral and regional hospitals for dental appointments and for immunization for travel. Public expenditure has been declining and there is underfinancing for drugs medical equipment and vehicles building maintenance salaries support staff and an information system. Findings are presented for hospital waiting timetravel costs choices of facilities (traditional services mission services and government services) costs admissions and costs reasons for choice of services willingness to pay improvements desired financial constraints and rationale for charges. The justification for government charges stems from concerns about frivolous use the presence of charges at mission facilities and improvements to services. It is argued that long waiting lines are sufficient to stop frivolous use. Patients used missions because of access to drugs. Government services were used because of inexpense and convenience. Most were willing to pay for services at hospitals if there were improvements in drug and food availability for instance; i.e. about 50% would pay Tsh 200 (Tanzanian shillings) at referral and regional hospitals and Tsh 100 at district hospitals. Waiting times could be 3-4 hours. 84% of rural patients and 55% of urban patients walked to facilities. Travel costs were Tsh 673 at the lowest and Tsh 4741 at the highest; the mean cost for a consultation was Tsh 440. 59% in the outpatient survey were willing to pay Tsh 200.

Chosen peoples: Why ethnic groups survive*

Abstract: The persistence of ethnic communities is a neglected area of research. The study of ethnies over long time‐spans requires comparison of different patterns of ethnic survival, in terms of symbols and myths of ethnic election. Such myths can be found in the ancient Near East, in Judea, Greece, Armenia, Persia, as well as Byzantium, Russia and Western Europe, mobilizing and inspiring ethnic survival. Four main patterns of ethnic survival are outlined: imperial‐dynastic, communal‐demotic, emigrant‐colonist and diaspora‐restoration. In each case, modern nationalism reinforces and politicizes the old myths of ethnic election and its forms and intensity can be explained in terms of these patterns of ethnic survival.

Public understanding of science in Britain: the role of medicine in the popular representation of science

Abstract: This paper is based on the results of a random sample survey of the adult population of Britain. The survey was designed to explore public interest in, attitudes towards and understanding of science. The paper operationalizes the notion of scientific understanding, and applies the understanding measure in the analysis of social representations of science. The results suggest: first, that a so-called `deficit model' of public understanding of science is useful for certain well-defined analytical purposes; second, that there are significant differences between professional and popular representations of science, and third, that medical science may be paradigmatic for the popular representation of science in Britain.

Group‐Differentiated Perceptions of Social Impacts Related to Tourism Development

Abstract: Perceived social impacts of tourism development on local residents in peripheral destinations are examined in the case of the resort city of Eilat (Israel) by utilizing a value-stretch methodology. Analysis shows that local's perceptions are group differentiated. The less locals are affiliated with tourist occupations, the less affluent they are, and the less their sense of peripherality, the more they are affected by the social consequences of tourism development. Policy implications for tourism development in such peripheral settings are suggested.