Please select from the titles below:
- Volatile Financial Markets and the Speculator
- Making a Crisis out of a Drama: Should We Continue Public Financial Support for the British Theatre?
- Privatization and Performance: A Study of the British Steel Industry under Public and Private Ownership
- Estimation of the Demand for Cigarettes: A Review of The Literature
- Meaning and Measurement of National Economic Success: UK Relative Economic Performance in the 1980s
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Volatile Financial Markets and the Speculator (p.1)
By P DavidsonIn recent years it has become fashionable to argue for a tax on financial transactions in order to reduce the volatility of financial markets. In the USA, however, the volatility of the New York and American Stock Exchanges has declined, relative to that of the over-the-counter market, since the reduction in commissions. We argue here that what one expects from putting 'sand in the wheels' of financial activity depends upon how one explains the existence of speculative activity and that this depends upon whether or not one accepts the ergodic principle. We also argue that it is bandwagon effects and not white noise variance that causes problems in financial markets and that the solution for this must involve the creation of a market maker prepared to 'lean into the wind' when markets show signs of departing from fundamentals.
Making a Crisis out of a Drama: Should We Continue Public Financial Support for the British Theatre? (p. 19)
By A Collins and C HandFollowing a brief review of some economic theory relevant to the analysis of not-for-profit theatre arts enterprises, the arguments relating to the merits of continuing subsidies to the British theatre arts are considered with respect to both production and consumption benefit perspectives. These are framed around the populist assertions typically levelled against and by advocates of continued subsidy. It is concluded that there is no compelling economic case for maintaining such subsidies.
Privatization and Performance: A Study of the British Steel Industry under Public and Private Ownership (p. 31)
By D Parker and H S WuPrivatisation is intended to lead to a marked improvement in economic performance. Here the performance of British Steel is assessed both before and after privatisation in December 1988. Performance is measured in terms of trends in labour and total factor productivity and profitability and by comparing the technical efficiency of the UK steel industry with technical efficiency in six other major steel producing countries using data envelopment analysis (DEA). The results confirm the existence of efficiency gains before privatisation but since then performance has been more lacklustre.
Estimation of the Demand for Cigarettes: A Review of The Literature (p.51)
By S CameronThis paper reviews work on the demand for cigarettes showing considerable agreement on a statistically significant inelastic price response which is much greater in the long- run. It also appears that, on balance, there are significant negative effects of health scares. The evidence on the effects of advertising is inconclusive. Restrictions on smoking in public places appear to decrease demand. At present, the rational addiction model looks set to dominate the field. Unfortunately it has, in common with the earlier work, received an uncritical response. The results gained are highly questionable; the time-series studies were carried out without reference to the literature on cointegration. Further, the rational addiction models have encountered acute problems with implausible discount rates and insignificant price terms.
Meaning and Measurement of National Economic Success: UK Relative Economic Performance in the 1980s (p.73)
By A Hutton, A Dow and T DeeneyOverall assessments of national economic performance involve a set of well rehearsed 'technical' problems. They are also always mediated by the ideological stance and the committed analytical or policy position of the observer. In this paper we introduce a framework for such overall assessments which both takes account of the major problems and, by making these subjective dimensions explicit, demonstrates their significance. Drawing on the approach of the UN Human Development Index, a composite index of national economic performance is developed. Using a set of conventional macroeconomic indicators we calculate composite indices of UK economic performance, relative to the G7 as a whole, in the 1980s compared to the 1970s from four different analytical or ideological standpoints. The results illustrate, inter alia, the extent to which assessments of relative economic performance can vary with the position of the observer.
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