http://hdl.handle.net/10023/648 2013-05-19T03:57:51Z http://hdl.handle.net/10023/659 Abstract: In his wide ranging attempt to review the literature on economic development and welfare in relation to the environment, Lomborg claims balance and objectivity, but actually presents a thoroughly misleading picture of environmental prospects and research, global economic development, and the real determinants of human welfare. Statistician Lomborg blatantly distorts the evidence by systematically selecting statistics to support his claims that global welfare is generally improving and environmental policy is unnecessary, while denying catastrophic risks such as prolonged drought in major food growing areas (though such events cannot be ruled out by climate models). In spite of its numerous errors and biases, "the Lomborg scam" (as leading biologist E.O.Wilson aptly calls it) has been welcomed by gullible or like-minded journalists and politicians. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000052/; March 2002. Forthcoming as a review article in the Scottish Journal of Political Economy 2002-01-01T00:00:00Z FitzRoy, Felix Smith, Ian In his wide ranging attempt to review the literature on economic development and welfare in relation to the environment, Lomborg claims balance and objectivity, but actually presents a thoroughly misleading picture of environmental prospects and research, global economic development, and the real determinants of human welfare. Statistician Lomborg blatantly distorts the evidence by systematically selecting statistics to support his claims that global welfare is generally improving and environmental policy is unnecessary, while denying catastrophic risks such as prolonged drought in major food growing areas (though such events cannot be ruled out by climate models). In spite of its numerous errors and biases, "the Lomborg scam" (as leading biologist E.O.Wilson aptly calls it) has been welcomed by gullible or like-minded journalists and politicians. http://hdl.handle.net/10023/658 Abstract: The recent rise in university-industry partnerships has stimulated an important public policy debate regarding how these relationships affect fundamental research. In this paper, we examine the antecedents and consequences of policies to promote university-industry alliances. Although the preliminary evidence appears to suggest that these partnerships have not had a deleterious effect on the quantity and quality of basic research, some legitimate concerns have been raised about these activities that require additional analysis. We conclude that additional research is needed to provide a more accurate assessment of the optimal level of commercialisation. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000053/; [Originally] November 2001. This version January 2002. Forthcoming in Oxford review of economic policy 2002-01-01T00:00:00Z Poyago-Theotoky, Joanna Beath, John Siegel, Donald S. The recent rise in university-industry partnerships has stimulated an important public policy debate regarding how these relationships affect fundamental research. In this paper, we examine the antecedents and consequences of policies to promote university-industry alliances. Although the preliminary evidence appears to suggest that these partnerships have not had a deleterious effect on the quantity and quality of basic research, some legitimate concerns have been raised about these activities that require additional analysis. We conclude that additional research is needed to provide a more accurate assessment of the optimal level of commercialisation. http://hdl.handle.net/10023/657 Abstract: Data from a unique monetary ‘experiment’ conducted in the UK during the period 1994-97 are used to investigate the cost of political intervention in monetary policy. The paper finds that the difference between government bond yields in Germany (but not the US) and the UK was systematically related to an index of the credibility of monetary policy constructed on the basis of the frequency of agreements/ disagreements between the Minister of Finance who took the decisions on interest rates and the Bank of England, whose recommendations were published with a lag, with disagreements causing an increase in the yield differential. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000055/; Revised November 2001 2001-01-01T00:00:00Z Cobham, David Papadopoulos, Athanasios Zis, George Data from a unique monetary ‘experiment’ conducted in the UK during the period 1994-97 are used to investigate the cost of political intervention in monetary policy. The paper finds that the difference between government bond yields in Germany (but not the US) and the UK was systematically related to an index of the credibility of monetary policy constructed on the basis of the frequency of agreements/ disagreements between the Minister of Finance who took the decisions on interest rates and the Bank of England, whose recommendations were published with a lag, with disagreements causing an increase in the yield differential. http://hdl.handle.net/10023/656 Abstract: This paper combines collective bargaining over wages and working time with models of endogenous and neoclassical growth. Public expenditure is funded by taxes on capital and labour supplied by infinitely-lived households in a closed economy. Taxes on labour are generally inefficient in both growth models, there is a “dynamic Laffer Curve”, and employment is increased by a reduction of working hours below the collective bargaining level – except in the case of a monopoly union. Although growth is maximised by competitive (efficient) hours, welfare-optimal working time is below the collective bargain when union are ‘too weak’, and vice-versa. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000056/; Revised August 2001 2001-08-01T00:00:00Z FitzRoy, Felix Funke, Michael Nolan, Michael A. This paper combines collective bargaining over wages and working time with models of endogenous and neoclassical growth. Public expenditure is funded by taxes on capital and labour supplied by infinitely-lived households in a closed economy. Taxes on labour are generally inefficient in both growth models, there is a “dynamic Laffer Curve”, and employment is increased by a reduction of working hours below the collective bargaining level – except in the case of a monopoly union. Although growth is maximised by competitive (efficient) hours, welfare-optimal working time is below the collective bargain when union are ‘too weak’, and vice-versa. http://hdl.handle.net/10023/655 Abstract: While Rational Expectations have dominated the paradigm of expectations formation, they have been more recently challenged on the empirical ground such as, for instance, in the dynamics of the exchange rate. This challenge has led to the introduction of heterogeneous expectations in economic modeling. More specifically, the forecasts of the market participants have been drawn from competing views. Two behaviours are usually considered: agents are either fundamentalist or chartist. Moreover, the possibility of switching from one behaviour to the other one is also assumed. In a simple cobweb model, we study the dynamics associated with different endogenous switching process based on the path of prices. We provide an example with an asymmetric endogenous switching process built on the dynamics of past prices. This example confirms the widespread belief that fundamentalist market behaviour as compared with that of chartist tends to promote market stability. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000057/ 2001-01-01T00:00:00Z Lasselle, Laurence Svizzero, Serge Tisdell, Clem While Rational Expectations have dominated the paradigm of expectations formation, they have been more recently challenged on the empirical ground such as, for instance, in the dynamics of the exchange rate. This challenge has led to the introduction of heterogeneous expectations in economic modeling. More specifically, the forecasts of the market participants have been drawn from competing views. Two behaviours are usually considered: agents are either fundamentalist or chartist. Moreover, the possibility of switching from one behaviour to the other one is also assumed. In a simple cobweb model, we study the dynamics associated with different endogenous switching process based on the path of prices. We provide an example with an asymmetric endogenous switching process built on the dynamics of past prices. This example confirms the widespread belief that fundamentalist market behaviour as compared with that of chartist tends to promote market stability. http://hdl.handle.net/10023/654 Abstract: The purpose of this paper is to give new insights of the method of Helleman (1980) in the context of macrodynamics. This method explains how a difference equation can be locally studied from the Feigenbaum equation in the case of a constant Jacobian matrix. First we introduce this technique. Second we apply it in two models: the model of Matsuyama (1999) and the model of Kaldor (1957). Finally we present an extension of the technique in the case of non constant (linear) Jacobian matrix and apply this extension in the model of Médio (1992). Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000059/ 2001-01-01T00:00:00Z Briec, Walter Lasselle, Laurence The purpose of this paper is to give new insights of the method of Helleman (1980) in the context of macrodynamics. This method explains how a difference equation can be locally studied from the Feigenbaum equation in the case of a constant Jacobian matrix. First we introduce this technique. Second we apply it in two models: the model of Matsuyama (1999) and the model of Kaldor (1957). Finally we present an extension of the technique in the case of non constant (linear) Jacobian matrix and apply this extension in the model of Médio (1992). http://hdl.handle.net/10023/653 Abstract: We consider an overlapping generation model based on Matsuyama (1999) and show that, whenever actual capital accumulation falls below its balanced growth path, subsidising innovators by taxing consumers has stabilising effects and increases welfare. Further, if the steady state is unstable under laissez faire, the introduction of the subsidy can make the steady state stable. Such a policy has positive welfare effects as it fosters output growth along the transitional adjustment path. Therefore, fast growing economies, in which high factor accumulation plays a crucial role alongside innovative sectors that enjoy temporary monopoly rents, should follow an unorthodox approach to stabilisation. Namely, taxing the consumers and reallocate resources to the innovative sectors. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000060/ 2001-01-01T00:00:00Z Aloi, Marta Lasselle, Laurence We consider an overlapping generation model based on Matsuyama (1999) and show that, whenever actual capital accumulation falls below its balanced growth path, subsidising innovators by taxing consumers has stabilising effects and increases welfare. Further, if the steady state is unstable under laissez faire, the introduction of the subsidy can make the steady state stable. Such a policy has positive welfare effects as it fosters output growth along the transitional adjustment path. Therefore, fast growing economies, in which high factor accumulation plays a crucial role alongside innovative sectors that enjoy temporary monopoly rents, should follow an unorthodox approach to stabilisation. Namely, taxing the consumers and reallocate resources to the innovative sectors. http://hdl.handle.net/10023/652 Abstract: Fatás (2000) argues that in a cross-section analysis of countries there exists a positive correlation between long-term growth rates and the persistence of output fluctuations. The current paper extends this line of research by examining manufacturing sectors of an economy which can be characterised by two levels of technology; a low level and a high level. Analysis of the data reveals a positive correlation between long-term growth rates and the persistence of output fluctuations in ‘high-tech’ sectors. This empirical analysis is further supported by reformulating the model of Matsuyama (1999b) in a stochastic environment. Within this framework the model is able to capture the two main theories of growth, namely; the Solow model and the Romer model. The stochastic nature of the long run output trend is endogenous and based on technological shocks. Despite the cyclical nature of the shocks we are able to show that output fluctuations are more persistent in ‘high-tech’ sectors. Description: Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000061/ 2000-01-01T00:00:00Z Lasselle, Laurence Aloi, Marta McMillan, David G. Fatás (2000) argues that in a cross-section analysis of countries there exists a positive correlation between long-term growth rates and the persistence of output fluctuations. The current paper extends this line of research by examining manufacturing sectors of an economy which can be characterised by two levels of technology; a low level and a high level. Analysis of the data reveals a positive correlation between long-term growth rates and the persistence of output fluctuations in ‘high-tech’ sectors. This empirical analysis is further supported by reformulating the model of Matsuyama (1999b) in a stochastic environment. Within this framework the model is able to capture the two main theories of growth, namely; the Solow model and the Romer model. The stochastic nature of the long run output trend is endogenous and based on technological shocks. Despite the cyclical nature of the shocks we are able to show that output fluctuations are more persistent in ‘high-tech’ sectors.