London School of Economics and Political Science

About: London School of Economics and Political Science is a education organization based out in London, United Kingdom. It is known for research contribution in the topics: Population & Politics. The organization has 8759 authors who have published 35017 publications receiving 1436302 citations.

Interpersonal Comparisons of Utility: A Comment

Abstract: In the course of his interesting paper on the “Scope and Method of Economics,”* Mr. Harrod raises once more the question of the status of interpersonal comparisons of utility. I do not wish directly to controvert any of his statements on this matter. But it occurs to me that a short account of the genesis of the views which I have put forward, and which form the subject of his friendly comment, might at once elucidate the nature of our differences and make clear to those who rejoice in the spectacle of disunity how very slender the practical implications of these differences actually are. I must apologise in advance for the personal nature of the argument. I am under no illusion concerning the interest of my intellectual difficulties in so far as they are purely my own. But, in so far as they can be regarded as typical, a brief explanation may perhaps facilitate mutual understanding.

Incomplete Contracts, Vertical Integration, and Supply Assurance

Abstract: This paper extends the analysis of transactions cost models of vertical integration to multilateral settings. Its main focus is on supply assurance concerns which arise when several downstream firms are competing for inputs in limited supply. Integration reduces supply assurance concerns for an integrating firm but it may increase them for others. Therefore, to explain the scope of any firm, one must consider the overall network of production and distribution relations. Three fundamental questions are addressed: (1) What are the effects of different integration structures?; (2) What are the determinants of the socially efficient integration structures?; (3) In what way do equilibrium integration structures differ from socially efficient structures?

The Audit Society — Second Thoughts

Abstract: This essay reviews the central arguments of The Audit Society (Power, 1999) and re-considers the causes and consequences of the audit explosion. It is argued that many of the claims require further empirical support and that more research is needed, particularly to demonstrate that the audit explosion is not simply a UK phenomenon. Although the word ‘audit’ may have decreased in significance since the book was written, the arguments can be applied to other forms of monitoring activity.

Endogeneities of Optimum Currency Areas: What brings Countries Sharing a Single Currency Closer Together?

Abstract: This paper brings together several strands of the literature on the endogenous effects of monetary integration: i.e., whether sharing a single currency may set in motion forces bringing countries closer together. The start of EMU has spurred a new interest in this debate. Four areas are analysed: the endogeneity of economic integration, in which we look primarily at evidence on prices and trade; the endogeneity of financial integration or equivalently of insurance schemes based on capital markets; the endogeneity of symmetry of shocks; and the endogeneity of product and labour market flexibility. We present diverse arguments and, where possible, explore the incipient empirical literature focussing on the euro area. Our preliminary conclusion is one of moderate optimism. The different endogeneities that exist in the dynamics towards optimum currency areas are at work. How strong these endogeneities are and how quickly they will do their work remains to be seen.