International Journal of Public Policy http://www.inderscience.com/browse/index.php?journalID=97&year=2011&vol=7&issue=4/5/6 Inderscience Publishers Ltd en-uk International Journal of Public Policy 1740-0600 1740-0619 © 2011 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/ijpp_scoverijpp.jpg http://www.inderscience.com/browse/index.php?journalID=97&year=2011&vol=7&issue=4/5/6 http://www.inderscience.com/link.php?id=43563 The economic policy framework of the Euro area displays significant limitations. While these deficiencies are a result of the design of the Euro project, they have become increasingly evident during the current economic crisis. The European Commission and the Council have put forward a set of reforms aimed at improving the economic governance of the Euro area. This proposal seeks to enhance the surveillance and discipline of fiscal policies, as well as to introduce a new mechanism for the prevention and correction of macroeconomic imbalances. In our opinion, while the reform shows some positive aspects, such as the monitoring of the current account deficits, it does not deal in depth with the necessary redesign of the economic governance of the Eurozone. Specifically, the tightening of fiscal rules is not adequate, the reform does not constitute a step forward in terms of fiscal coordination, the countries with current account deficit bear almost exclusively the burden of the adjustment and there is no re-definition of the role that the ECB should play in a debt crisis such as the current one. The reform of the economic governance of the Eurozone: macroeconomic supervision and coordination
Jorge Uxó González; Jesús Paúl Gutiérrez
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 205 - 225
The economic policy framework of the Euro area displays significant limitations. While these deficiencies are a result of the design of the Euro project, they have become increasingly evident during the current economic crisis. The European Commission and the Council have put forward a set of reforms aimed at improving the economic governance of the Euro area. This proposal seeks to enhance the surveillance and discipline of fiscal policies, as well as to introduce a new mechanism for the prevention and correction of macroeconomic imbalances. In our opinion, while the reform shows some positive aspects, such as the monitoring of the current account deficits, it does not deal in depth with the necessary redesign of the economic governance of the Eurozone. Specifically, the tightening of fiscal rules is not adequate, the reform does not constitute a step forward in terms of fiscal coordination, the countries with current account deficit bear almost exclusively the burden of the adjustment and there is no re-definition of the role that the ECB should play in a debt crisis such as the current one.

]]> 10.1504/IJPP.2011.043563 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 205 - 225 Jorge Uxó González; Jesús Paúl Gutiérrez Facultad de Ciencias Sociales, UCLM, Edificio Gil de Albornoz, Avda. de los Alfares, 44, 16071 Cuenca, Spain. ' Facultad de Ciencias Económicas y Empresariales, CEU San Pablo University, C/ Julián Romea, 23, 28003 Madrid, Spain Economic and Monetary Union EMU European Union EU Stability and Growth Pact SGP international agreements euro area eurozone single currency currencies fiscal discipline current accounts account imbalances Task Force on Economic Governance European Council economic reforms macroeconomic supervision macroeconomic coordination economic policies policy frameworks economic crises European Commission fiscal surveillance fiscal policies macroeconomic imbalances imbalance prevention imbalance correction macroeconomic imbalances current account deficits fiscal rules fiscal coordination adjustment burdens debt crises European Central Bank ECB monetary policies public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 205 225 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43562 The compensation hypothesis predicts a positive causation from international economic openness to the size of the public sector, as governments step in to perform a risk mitigating role to counterbalance the increasing exposure to external risk and the economic dislocations caused by growing international openness. We use time series data from 22 OECD countries over the period 1955-2003 and examine the statistical significance of both long-run and short-run causality channels in each country separately. Our findings fail to provide an overwhelming support for this hypothesis, with only five countries showing some evidence in its favour. On the causal relationship between trade-openness and government-size: evidence from OECD countries
Hassan Molana; Catia Montagna; Mara Violato
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 226 - 249
The compensation hypothesis predicts a positive causation from international economic openness to the size of the public sector, as governments step in to perform a risk mitigating role to counterbalance the increasing exposure to external risk and the economic dislocations caused by growing international openness. We use time series data from 22 OECD countries over the period 1955-2003 and examine the statistical significance of both long-run and short-run causality channels in each country separately. Our findings fail to provide an overwhelming support for this hypothesis, with only five countries showing some evidence in its favour.

]]> 10.1504/IJPP.2011.043562 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 226 - 249 Hassan Molana; Catia Montagna; Mara Violato Economic Studies, University of Dundee, Dundee, DD1 4HN, UK. ' Economic Studies, University of Dundee, Dundee, DD1 4HN, UK; Centre for Research on Globalisation and Economic Policy, University of Nottingham, University Park, Nottingham, NG7 2RD, UK. ' Department of Public Health, University of Oxford, Old Road Campus, Headington, Oxford, OX3 7LF, UK globalisation compensation hypothesis government size Clive Granger causality tests cointegration vector error correction trade openness causal relationships OECD Organisation for Economic Co-operation and Development positive causation economic openness public sector central government risk mitigation external risks economic dislocations international openness long-run causality channels short-run causality channels Australia Austria Belgium Canada Denmark Finland France Greece Iceland Ireland Italy Japan Luxembourg Holland Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom UK United States USA public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 226 249 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43559 Because consumer prices and trade quantities tend to exhibit stronger rigidities than do nominal exchange rates, trade balances usually respond to currency appreciations and depreciations only after a time lag. This dynamic adjustment depicted as correlations between deviations in a country pair's real exchange rate and their bilateral trade balance is known as the 'S curve'. In this study, we evaluate this phenomenon for trade between China and Japan in 73 individual industries. We find that 26 of these commodities conform to the S-curve, and that certain categories of manufactures are more likely to do so than are other commodities. Renminbi depreciations and Japan-China commodity trade: do manufactured goods show stronger support for the S-curve?
Mohsen Bahmani-Oskooee; Scott W. Hegerty; Jia Xu
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 250 - 264
Because consumer prices and trade quantities tend to exhibit stronger rigidities than do nominal exchange rates, trade balances usually respond to currency appreciations and depreciations only after a time lag. This dynamic adjustment depicted as correlations between deviations in a country pair's real exchange rate and their bilateral trade balance is known as the 'S curve'. In this study, we evaluate this phenomenon for trade between China and Japan in 73 individual industries. We find that 26 of these commodities conform to the S-curve, and that certain categories of manufactures are more likely to do so than are other commodities.

]]> 10.1504/IJPP.2011.043559 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 250 - 264 Mohsen Bahmani-Oskooee; Scott W. Hegerty; Jia Xu The Centre for Research on International Economics and Department of Economics, The University of Wisconsin-Milwaukee, Milwaukee, WI 53201, USA. ' Department of Economics and Finance, Richard J. Wehle School of Business, Canisius College, Buffalo, NY 14208, USA. ' Department of Economics, St. Mary's College of Maryland, St. Mary's City, MD 20686, USA S-curve industry data China Japan renminbi currency depreciations money commodity trade manufactured goods consumer prices trade quantities commodities exchange rates trade balances currency appreciations currencies bilateral trade public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 250 264 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43558 Radical innovation is increasingly becoming the focus of attention of both policy makers and senior corporate managers. However, debates within the varieties of capitalism literature on the ease with which radical innovation can be achieved within less de-regulated economies, such as Germany, have tended to focus on the pharmaceutical industry. This article demonstrates that attempts to assess the extent to which the socio-economic institutions typically associated with Germany support radical innovation should be broadened to cover other sectors besides the pharmaceutical industry, as the distinctiveness of that sector has yet to be firmly established. This article proposes theoretical reasons to suggest that the pharmaceutical industry may not be as distinct, in terms of radical innovation, from other sectors as it is often implicitly assumed to be. These arguments are assessed using the large-scale, representative survey data. This paper opens up new areas that can be explored in future research. The core finding is that pharmaceutical firms are not statistically more likely to introduce radical innovations compared to those in many other high-technology and medium-high-technology industries. In addition, works councils and sectoral collective agreements do not hinder the development of new technologies. Both of these findings have important public-policy implications. Institutional frameworks and radical innovation: an analysis of high- and medium-high-technology industries in Germany
Matthew M.C. Allen; Heinz-Josef Tüselmann; Maria L. Aldred
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 265 - 281
Radical innovation is increasingly becoming the focus of attention of both policy makers and senior corporate managers. However, debates within the varieties of capitalism literature on the ease with which radical innovation can be achieved within less de-regulated economies, such as Germany, have tended to focus on the pharmaceutical industry. This article demonstrates that attempts to assess the extent to which the socio-economic institutions typically associated with Germany support radical innovation should be broadened to cover other sectors besides the pharmaceutical industry, as the distinctiveness of that sector has yet to be firmly established. This article proposes theoretical reasons to suggest that the pharmaceutical industry may not be as distinct, in terms of radical innovation, from other sectors as it is often implicitly assumed to be. These arguments are assessed using the large-scale, representative survey data. This paper opens up new areas that can be explored in future research. The core finding is that pharmaceutical firms are not statistically more likely to introduce radical innovations compared to those in many other high-technology and medium-high-technology industries. In addition, works councils and sectoral collective agreements do not hinder the development of new technologies. Both of these findings have important public-policy implications.

]]> 10.1504/IJPP.2011.043558 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 265 - 281 Matthew M.C. Allen; Heinz-Josef Tüselmann; Maria L. Aldred Manchester Business School, The University of Manchester, Booth Street West, Manchester, M15 6PB, UK. ' Centre for International Business and Innovation, Manchester Metropolitan University Business School, Aytoun Street, Manchester, M1 3GH, UK. ' Manchester Metropolitan University Business School, Aytoun Street, Manchester, M1 3GH, UK varieties of capitalism institutional frameworks radical innovation institutional change Germany works councils sectoral agreements collective agreements high-technology industries medium-high-technology industries policy makers senior managers corporate managers deregulated economies pharmaceutical industry socio-economic institutions industrial sectors new technologies public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 265 281 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43557 There is a dearth of research on how foreign aid and migrant remittances influence the level of happiness in recipient countries. This paper fills this void by presenting an empirical model where aid and remittances enter the happiness production function of a recipient country. We find that both aid and remittances are possible ingredients in the complex process of generating happiness and that their interactions, which have been ignored by previous studies in development economics, cannot be dismissed. A clear policy implication of our results is that remittances should be encouraged. Are foreign aid and migrant remittances sources of happiness in recipient countries?
B. Mak Arvin; Byron Lew
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 282 - 300
There is a dearth of research on how foreign aid and migrant remittances influence the level of happiness in recipient countries. This paper fills this void by presenting an empirical model where aid and remittances enter the happiness production function of a recipient country. We find that both aid and remittances are possible ingredients in the complex process of generating happiness and that their interactions, which have been ignored by previous studies in development economics, cannot be dismissed. A clear policy implication of our results is that remittances should be encouraged.

]]> 10.1504/IJPP.2011.043557 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 282 - 300 B. Mak Arvin; Byron Lew Department of Economics, Trent University, Peterborough, Ontario K9J 7B8, Canada. ' Department of Economics, Trent University, Peterborough, Ontario K9J 7B8, Canada happiness levels foreign aid aid flows migrant remittances remittance flows recipient countries production functions development economics complex interactions public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 282 300 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43560 An inquiry into water and wastewater in NSW recommended the 'regionalisation' of water services away from local councils. However, these recommendations have yet to be implemented. This paper argues that any 'regionalisation' of water services will have disastrous results on the financial sustainability of local councils in non-metropolitan NSW. Since 'bigger is not better' in water services and the costs of 'regionalisation' are prohibitively high, the paper argues that the NSW state government should instead consider other methods of improving the efficiency of water and wastewater services. When will they ever learn? The financial implications of water 'regionalisation' for non-metropolitan New South Wales local councils
Brian Dollery; Andrew Johnson
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 301 - 319
An inquiry into water and wastewater in NSW recommended the 'regionalisation' of water services away from local councils. However, these recommendations have yet to be implemented. This paper argues that any 'regionalisation' of water services will have disastrous results on the financial sustainability of local councils in non-metropolitan NSW. Since 'bigger is not better' in water services and the costs of 'regionalisation' are prohibitively high, the paper argues that the NSW state government should instead consider other methods of improving the efficiency of water and wastewater services.

]]> 10.1504/IJPP.2011.043560 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 301 - 319 Brian Dollery; Andrew Johnson School of Business, Economics and Public Policy, University of New England, Armidale NSW 2351, Australia. ' Port Pirie Regional Council, Port Pirie SA 5540, Australia regionalisation non-metropolitan councils New South Wales local councils Australia financial implications water supply wastewater water services local government financial sustainability operating costs state governments regions efficiency operational consolidation sewerage services sewers sewage waste public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 301 319 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43561 This paper presents a critic of the 'modernisation' policies of the previous Labour Government with particular reference to National Health Service (NHS) and explores why the modernisation policies could not achieve its main objectives. How the present Coalition Government's policies intend to address the problems created by 'modernisation' is also analysed. Scrutiny reveals that 'modernisation' process is an interesting story of interplay of 5Ps: where public policies were skilfully used by 'spin doctors' to gain political dividends but failed to compel the professionals to give up their power in the name of performance management. In a sense the 'modernisation agenda' was used to convince people that the public policies are addressing their aspirations. There has been adverse effect on public sector organisations, particularly on public sector employees. If latest policy documents are any indications, then the Coalition Government's policies are equally confusing, perhaps taking Britain towards another 'winter of discontent'. Politics, public policies, professionals, power and performance the 5Ps of 'modernisation' initiatives of the Labour Government in UK
C.V. Som
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 320 - 339
This paper presents a critic of the 'modernisation' policies of the previous Labour Government with particular reference to National Health Service (NHS) and explores why the modernisation policies could not achieve its main objectives. How the present Coalition Government's policies intend to address the problems created by 'modernisation' is also analysed. Scrutiny reveals that 'modernisation' process is an interesting story of interplay of 5Ps: where public policies were skilfully used by 'spin doctors' to gain political dividends but failed to compel the professionals to give up their power in the name of performance management. In a sense the 'modernisation agenda' was used to convince people that the public policies are addressing their aspirations. There has been adverse effect on public sector organisations, particularly on public sector employees. If latest policy documents are any indications, then the Coalition Government's policies are equally confusing, perhaps taking Britain towards another 'winter of discontent'.

]]> 10.1504/IJPP.2011.043561 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 320 - 339 C.V. Som Durham Business School, University of Durham, Mill Hill Lane, Durham City, DH1 3LB, UK modernisation initiatives political power politics UK United Kingdom Labour Party central government National Health Service NHS coalition governments coalitions Conservative Party Liberal Democrats public policies spin doctors propaganda public relations performance management popular aspirations public sector employees winter of discontent strikes trade unions labour disputes professional groups professions public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 320 339 2011-11-08T23:20:50-05:00 http://www.inderscience.com/link.php?id=43564 The purpose of this study is to better understand the negative image associated with public education as compared to catholic and independent schools in Australia. This is done by examining parents' attitudes toward the three school sectors to determine the brand image parents perceive of Australian schools. The data used in this study was derived from 93 parents in Wollongong, NSW. Attitudes were elicited and compared across the three school sectors to examine significance differences between the three school sectors using ANOVA and Bonferroni correction analysis. Results indicate that the three school sectors had significantly different attributes that differentiated each school sector. The results revealed that the brand image of public schools tend to comprise of more negative attributes (e.g., poor academic environment) than positive attributes (e.g., multicultural environment). The literature review and results show that the overall brand image associations toward Australian public schools tend to be less favourable as compared to other school sectors. Perceptions of public education in regional Australia
Edmund Goh
International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 340 - 354
The purpose of this study is to better understand the negative image associated with public education as compared to catholic and independent schools in Australia. This is done by examining parents' attitudes toward the three school sectors to determine the brand image parents perceive of Australian schools. The data used in this study was derived from 93 parents in Wollongong, NSW. Attitudes were elicited and compared across the three school sectors to examine significance differences between the three school sectors using ANOVA and Bonferroni correction analysis. Results indicate that the three school sectors had significantly different attributes that differentiated each school sector. The results revealed that the brand image of public schools tend to comprise of more negative attributes (e.g., poor academic environment) than positive attributes (e.g., multicultural environment). The literature review and results show that the overall brand image associations toward Australian public schools tend to be less favourable as compared to other school sectors.

]]> 10.1504/IJPP.2011.043564 International Journal of Public Policy, Vol. 7, No. 4/5/6 (2011) pp. 340 - 354 Edmund Goh Blue Mountains International Hotel Management School, 1 Chambers Rd., Leura, NSW 2780, Australia brand images image associations brands branding Australia public education Carlo Bonferroni multiple comparisons statistical corrections regions negative images catholic schools parents parental attitudes school sectors independent schools Wollongong New South Wales significance differences ANOVA analysis of variance correction analysis public schools negative attributes academic environments positive attributes multicultural environments public policy. 2011-11-08T23:20:50-05:00 7 4/5/6 340 354 2011-11-08T23:20:50-05:00