On solow's residual with intermediate goods

Many efforts have been made to identify the sources of the ‘unexplained’ output, better known as the ‘residual’ generated in the process of growth. The paper is an attempt to show that the magnitude of the estimated residual based on Professor Solow's well‐known method actually depends on how the dependent variable in the production function is defined. Part of the computed residual is built‐in if value‐added, instead of gross production, is chosen as the dependent variable when Solow's method is applied to a disaggregated model. The paper also demonstrates how the extent of the bias is measured.     

The economic viability and stability of ‘capitalised family farming’: An analysis of agricultural decollectivisation in Peru

Abstract

The overall goal of this study is to examine if there is a dropout problem in rural China and to explore the effectiveness of a Conditional Cash Transfer (CCT) programme on the rate of dropping out. To meet this goal, we conduct a randomised controlled trial (RCT) to assess the impact of the CCT using a sample of the poorest 300 junior high school students in a nationally-designated poor county in Northwest China. We find that the annual dropout rate in the study county was 7.8 per cent and even higher, 13.3 per cent, among the children of poor households. We demonstrate that a CCT program reduces dropout by 60 per cent. The programme is most effective among students with poor academic performance, and likely more effective among girls and younger students.     

Mutual insurance as an elusive concept in traditional rural communities

During the last two decades, economists have paid increasing attention to the role of informal risk‐sharing arrangements as a privileged way through which traditional rural communities can achieve a significant degree of protection against income fluctuations and other hazards beyond their control. This article however argues that when they enter into such arrangements members of these communities are guided by a principle of balanced reciprocity (they expect a return from any contribution or payment they make) rather than by a true logic of mutual insurance. More precisely, they do not conceive of insurance as a game where there are winners and losers and where income is redistributed between lucky and unlucky individuals. None the less, traditional agrarian societies have proven able to develop a restricted range of sustainable forms of mutual insurance that avoid the aforementioned problem.     

Are transformational and transactional types of leadership compatible? A two‐wave study of employee motivation

Transformational and transactional leadership strategies have become prominent in public administration research, but it is unclear whether they are compatible or whether they could undermine each other. We examine the combined and interactive effects of transformational and three types of transactional leadership (contingent verbal rewards, material rewards, and sanctions) on employee work motivation, conceptualized as work engagement and intrinsic motivation. Panel analyses using repeated measures of 385 leaders and 3,797 employees show that transformational leadership and contingent verbal rewards increased employee motivation. However, simultaneous use of contingent material rewards undermined the benefits of transformational leadership. Thus, the motivational potential of service‐ or community‐oriented visions was undercut when leaders also appealed to extrinsic material motives. This could help explain why financial incentives do not always have the expected benefits in public organizations. We therefore argue that research and practice should pay more attention to how different leadership strategies work in combination.     

Network news coverage of terrorism: The early years

Abstract

The electronic media influence public opinion by defining which national and international issues become significant, and shape public debates by the television images conveyed to the American audience. Based upon the Vanderbilt Television News Archive, this study examines the image projected in reporting of terrorist activities by the three major national networks, the American Broadcasting Company (ABC), the Columbia Broadcasting System (CBS), and the National Broadcasting Company (NBC). The reality presented by the media is explored by comparing variables such as story emphasis and depiction, frequency, length of coverage, and location in the newscasts.     

Military First Doctrine Is Behind North Korea Adventurism

The recurrent crises emanating from North Korea, and the response to them, is testing US‐China relations and drawing the new boundaries of power in East Asia. The head of the US Joint Chiefs of Staff and the former South Korean national security advisor address this development.     

Only A Grand Compromise Between US And China Can Reduce East Asian Tensions

Despite grand visions of a cosmopolitan planet living in peace, the first globalization at the turn of the 20th century descended into World War I as the old empires scrambled to preserve themselves as others sought self‐determination. Powers on the losing end of that war reasserted themselves in yet another worldwide calamity within decades. After World War II, in the early 1950s, with the victorious American‐led alliance in the driver's seat, institutions such as the United Nations and the Bretton Woods arrangements created a global stability that enabled peace, prosperity and the “rise of the rest.” In 2014, the world order is shifting again with the rise of China reviving in Asia the very kind of nationalist rivalries that led Europe to war twice in the 20th century. Will we be able to build new institutions that accommodate the new powershift without resorting to war, or will the second globalization collapse as well? Top strategists from the US, Japan and China respond to this momentous question.