THE EFFECTS OF EXPORTS AND FOREIGN CAPITAL ON ECONOMIC GROWTH: CASES OF THREE AFRICAN COUNTRIES
Daneswar Poonyth, Steven A.Y. Lin, and John C. Navin
This study focuses on the importance of exports and other explanatory variables on the economic growth of Mauritius, Kenya and Ivory Coast using annual data from 1960 through 1990. we estimate an augmented growth function with and without integration of the Harrod-Domer growth model. The empirical results indicate that exports play a significant role in explaining the economic growth of these countries. In addition, we find that the explanatory power of this model is increased further if we use manufacturing exports in place of total exports.
COST-CUTTING STRATEGIES OF JAPANESE AUTO COMPANIES IN RESPONSE TO YEN APPRECIATION
Robert Carbaugh and Darwin Wassink
In the past decade, the Japanese yen has dramatically appreciated against the U.S. dollar. In spite of the publicity that the soaring yen would worsen the international competitiveness of Japanese automakers, their sales to U.S. consumers have remained strong. This paper discusses the costcutting strategies of Japanese automakers in response to the yen's appreciation. The discussion includes that as dollar-denominated costs become a larger portion of Japanese auto companies' total costs, a yen appreciation leads to a smaller increase in the dollar- denominated cost of Japanese automobiles, compared to the cost changes that occur when all input costs are denominated in yen. (F10,F23)
IS THE OIL STILL PERSISTENT?
Ali T. Akarca and Dimitri Andrianacos
This paper examines the behavior of crude oil prices during the two decades following the oil shock in 1973. It presents statistical evidence that oil market structure changed after January 1986. Whereas oil shocks had lasting effects on oil prices prior to that date, now they appear to have only temporary effects and therefore the oil price series is less "persistent" than before. Empirical researchers should pay attention to the structural break in the oil price series. (G43,C22)
EXCHANGE RATE RISK AND THE U.S. EXPORT OF WHEAT
Abdulhamid Sukar and V. Sivarama Krishnan
This study examines the effect of real exchange rate risk on the U.S. export of wheat for the period of 1973-1992. Theoretical arguments for a positive relationship between exchange rate risk and export activity are presented. Two simple models of export demand and supply are used to develop models for export volume and export price. The price and volume models are estimated using simultaneous non-linear three stage least square procedures. The estimated models are then used to examine the dynamic impact of exchange rate changes and exchange rate risk on the U.S. export of wheat. Results indicate the increase in exchange rate risk may actually increase exports. (F14,F31)
THE PERSONAL DISTRIBUTION OF INCOME AND THE COMPOSITION OF CONSUMPTION EXPENDITURE
Edward L. Fitzsimmons and H. Wade German
This paper uses models of consumption based on the permanent income hypothesis to analyze the effects of changes in the personal distribution of income in the United States on the composition of consumption expenditures. Increasing inequality was found to have a positive effect on the consumption of motor vehicles and parts and services but a negative effect on the consumption of other goods. Relative to income, lagged consumption, or prices, the impact of the distribution of income was small. But in comparison with interest rates, the impact of distribution of income was large.(D31,E21)
BANK LOANS IN THE MONETARY TRANSMISSION MECHANISM
Karen S. Vorst and Lisa Wilder
Recent studies of the credit channel in the monetary policy transmission process show conflicting views regarding the importance of bank loans in this process. This paper examines a suspected change in the interest elasticity of bank loan demand and sides with those who conclude that bank loans are not as 'special' as they once were in the money supply process. This result is consistent with our further analysis of excess loan demand from which we conclude that banks probably were not responsible for prolonging the early 1990's recession.(E50,E52)
HEALTH INSURANCE INDUSTRY REGULATION AND HEALTH CARE REFORM
Kenneth Koelln and Rose M. Rubin
This paper compares the economic theories of health insurance regulation with current practice in this market. Our literature review of the economics of regulation and health insurance identifies the market failures which provide justification for government intervention. Comparing these market failures with the current status of federal and state health insurance regulation primarily benefits the health care delivery industry and also may have been a strong factor in facilitating the organization of other interest groups (consumers and insurers) to support health care reform. (I10,I18)
THE RELATIONSHIP OF STUDENT EVALUATIONS OF FACULTY TO STUDENT PERFORMANCE ON A COMMON FINAL EXAMINATION IN THE PRINCIPLES OF ECONOMICS COURSES
Doris F. Sheets, Elizabeth E. Topping, and John Hoftyzer
This paper tests the hypothesis that the frequently observed correlation between student achievement and student evaluations of faculty can be explained by the relationship of both variables to class attendance. Multiple regression using data from 122 sections of principles of economics taught over a four-year period is employed to estimate a model to predict both class attendance rates and mean class performance on a common final exam. Results on the microeconomics sections tend to support the hypothesis. Results on the macroeconomics sections reveal a negative though largely insignificant relationship between student evaluations and student achievement.
GENDER DISCRIMINATION AND UNIVERSITY FACULTY SALARIES FROM 1984 TO 1992
Audie Brewton and Lewis Freiberg
Logit regression analysis is used to determine if salary discrimination is occurring for a sample of full-time, tenure- track faculty at a Midwest state university in 1984 or 1992. It has the advantage of eliminating two sources of nondiscriminatory salary differentials: interfirm variation and occupational variation. The paper differs from other discrimination research since it pools the sample and uses gender as a binary dependent variable. The data was developed from local sources and "starting salary" was available. Three points in typical career paths of faculty can be examined; promotion patterns, starting salary, and salary structure for several academic years. (J3 and J7)
INSTRUCTIONAL COSTS AT MASTER'S INSTITUTIONS
Thomas G. Watkins
This paper uses multiple regression to explain the variation in instructional cost per student at 373 master's institutions. The levels and prices of factors and a set of dummy variables are employed as regressors. The results suggest that instructional cost increases with the full-time faculty-to-student ratio, the clerical worker-to-student ratio, and average faculty salaries. Instructional cost also tends to be higher at smaller institutions, suggesting some economies in instruction. Finally, at public institutions the use of part-time faculty also tends to increase instructional cost.(I20,D20)
THE DETERMINANTS OF HIGH SCHOOL TEST SCORES IN OKLAHOMA
Ronald L. Moomaw and Mahzan Yusof
Although social-science research finds that resource use-teacher- student ratios, teacher degrees, school characteristics, and so on-have little or no positive effect on student learning, state educational reform, such as recently occurred in Oklahoma, usually emphasizes resource use. Are the researchers right and the reformers wrong, or could it be the other way around? This preliminary study of the educational production function in Oklahoma finds a positive effect of resources on learning. The different result may be because of a greater diversity of school districts in Oklahoma or because we use dummy variables to control county fixed effects.(H72,L32)
IS DISCRIMINATORY MONOPSONY BY SEX A VIABLE MODEL?
Shmuel Sharir
The paper provides a critical literature review, discussing of the merits of the discriminatory monopsony model vis-a-vis Becker's taste-for-discrimination model, in explaining wage differentials by sex. It concludes that the discriminatory monopsony model is more useful in explaining wage differentials by sex, than it is currently suggested in the literature.(J71,J31,J16).
FAIRNESS IN COALITION BUILDING AS A SUPERIOR STRATEGY
Michael M. Tansey
Poor governance can lead to costs that threaten the survival of an organization. These costs arise as agents go outside the normal channels for decision making and management in a firm's system of governance. Such behavior occurs when agents believe they have a better chance to achieve what they want outside normal channels than by staying within them. If a firm is managed with a fair governance structure then agents are more likely to believe they can achieve what they want within channels rather than outside of them. However, as shown in a simple model of coalition building, a "fair" procedure may actually produce a bias against incumbent management. The organizations which accept this bias and still trust in the results from coalition building are able to embark on a superior survival strategy. Any organization which is poorly governed faces sudden, enormous costs which can threaten its competitiveness, and ultimately its survival. A system of governance is rooted in a firm's charter and constitution, which in return provide the foundation for its standard operating procedures and management. This paper examines how fairness can help to minimize the costs that result from a poor system of governance.
A HOTEL CAPACITY UTILIZATION MODEL
Robert Scott, Edward Sattler, and Jannett Highfill
The paper considers a hotel whose capacity is a fixed number of rooms. The demand for these rooms is uncertain and has the usual characteristics of queuing problems. The hotel is assumed to operate as a monopoly and to be risk neutral. The paper shows that a hotel will always choose a price for which it expects to have excess capacity even while pursuing profit maximization. The model can also be used to show that hotels may be willing to considerably undercut their published room rates if by doing so they can gain certain demand. (D42, D81)
DOES IT MATTER WHO BARGAINS FOR THE MUNICIPALITY? EVIDENCE FROM POLICE AND FIREFIGHTER BARGAINING OUTCOMES
Kevin M. O'Brien
Numerous studies have investigated the impact of form government, city manager-council versus elected mayor-council, on the labor and spending outcomes of local governments. However, for cities with collective bargaining agreements with their employees, this comparison may be incomplete. It is the chief negotiators, who may not be managers or mayors, that have the primary responsibility for bargaining with public employee unions. This study identifies the officials who actually lead the bargaining for municipalities and measures their effect on police and firefighter compensation and department spending. The major finding is that the type of official used by a city has no effect on bargaining outcomes. This supports the Deno-Mehay (1988) view of local government that argues that variations in local government management structure do not matter since all officials must ultimately satisfy the preferences of the median voter. (J45,H70)