nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒08‒21
four papers chosen by
Karl Petrick
University of the West Indies

  1. An Institutional Theory of Public Contracts: Regulatory Implications By Pablo T. Spiller
  2. Studying Economic Growth: An Avenue for Enhancing Student Empirical Skills By Mark Pingle; Toni Sipic
  3. On the Emergence of Glocalisation By Sucháček, Jan
  4. Rethinking the Role of History in Law & Economics: The Case of the Federal Radio Commission in 1927 By David A. Moss; Jonathan B. Lackow

  1. By: Pablo T. Spiller
    Abstract: The fundamental feature of private contracting is its relational nature. When faced with unforeseen or unexpected circumstances, private parties, as long as the relation remains worthwhile, adjust their required performance without the need for costly renegotiation or formal recontracting. Public contracting, on the other hand, seems to be characterized by formalized, standardized, bureaucratic, rigid procedures. Common wisdom sees public contracts as generally more inflexible, requiring more frequent formal renegotiation, having a higher tendency to litigate, and providing weaker incentives. In sum, public contracts are perceived to be less "efficient." In this paper I develop a theory of public contracting that accommodates these stark differences between private and public contracting. The thrust of the paper is that these differences arise directly because of the different hazards present in public and purely private contracts, which directly impact the nature of the resulting contractual forms. A fundamental corollary of this result is that the perceived inefficiency of public or governmental contracting is simply the result of contractual adaptation to different inherent hazards, and as such is not directly remediable. Finally, I apply the main insights from the general framework developed here to understand the characteristics of concession contracts.
    JEL: H11 L14 L32 L33 L51
    Date: 2008–08
  2. By: Mark Pingle (Department of Economics, University of Nevada, Reno); Toni Sipic (Department of Economics, University of Oregon)
    Abstract: The study of economic growth provides an opportunity for students to exercise their empirical skills, reinforcing the tool building that occurs in statistics and math courses. Descriptive analysis allows lower level students to develop their ability to work with data as they examine how fast the economy has grown, ascertain the regularity versus irregularity of this growth, test whether the U.S. economy is slowing down, and perform simple extrapolation forecasts. Explanatory analysis allows higher level students in macro and econometric courses to see how theory and empirics can complement each other, and see why econometric issues matter, as they seek estimates for parameters consistent with the theory. The activities presented here may be of interest to those seeking to enhance the teaching of analytical skills “across the curriculum.”
    Keywords: Economic growth; Teaching economics; Student skills
    JEL: A22 A23 D92
    Date: 2008–08
  3. By: Sucháček, Jan
    Abstract: Globalisation became truly frequented notion of our era. There is wide consent that global processes increase both risks and opportunities for individuals, enterprises as well as whole communities and countries. In spite of this, it is only seldom stated that globalisation involves also numerous local impacts. Indeed, particular manifestations of global processes can be contemplated in concrete localities and polarity between the global and the local is not accurate. The global does include local and globalisation means also the linking of localities. The main objective of this paper consists in the clarification of socioeconomic nexuses between global processes and localities. Taking into consideration recent socioeconomic developments, we are increasingly entitled to talk about the process of glocalisation that involves both global and local aspects. Global and local represent two sides of the same coin and the nature of contemporary time-spatial processes may be better understood by recognizing and analyzing socioeconomic aspects of glocalisation.
    Keywords: Globalization; Glocalisation; Fordism; Post-Fordism
    JEL: R10 H70 R19 B52 F01 B20
    Date: 2008
  4. By: David A. Moss (Harvard Business School, Business, Government and the International Economy Unit); Jonathan B. Lackow (Ropes & Gray LLP)
    Abstract: In the study of law and economics, there is a danger that historical inferences from theory may infect historical tests of theory. It is imperative, therefore, that historical tests always involve a vigorous search not only for confirming evidence, but for disconfirming evidence as well. We undertake such a search in the context of a single well-known case: the Federal Radio Commission's (FRC's) 1927 decision not to expand the broadcast radio band. The standard account of this decision holds that incumbent broadcasters opposed expansion (to avoid increased competition) and succeeded in capturing the FRC. Although successful broadcaster opposition may be taken as confirming evidence for this interpretation, our review of the record reveals even stronger disconfirming evidence. In particular, we find that every major interest group, not just radio broadcasters, publicly opposed expansion of the band in 1927, and that broadcasters themselves were divided at the FRC's hearings.
    Date: 2008–07

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