Adjustment Policies (adjustment + policy)

Distribution by Scientific Domains

Selected Abstracts

The Construction of the Myth of Survival

Mercedes González de la Rocha
ABSTRACT A myth has come into being that the poor household/family is able to survive in spite of a lack of resources and the presence of macroeconomic policies that foster unemployment and poverty. It has an accompanying fable that tells of how the poor manage to implement survival strategies that are based on their endless capacity to work, to consume less and to be part of mutual help networks. This myth has become a useful tool for policy makers as they design more aggressive neoliberal economic adjustment policies. This contribution examines anthropological and sociological insights regarding the life of the poor and the organization of their households, in which women's paid and unpaid work is an integral part. Through the lens of a researcher in the field of urban poverty and household organization, the article re-examines the fable of the good survivor. Evidence debunks the myth, showing that the optimistic message of this fable does not match with the realities of the impact of economic change on women's lives. But the myth is sustained, as this more negative story is not one that supra-national policy actors want to hear. [source]

Towards the Spatial Patterns of Sectoral Adjustments to Trade Liberalisation: The Case of NAFTA in Mexico

ABSTRACT A recent string of "new economic geography" (NEG) models has set focus on the impacts of trade liberalisation on the intra-national distribution of economic activity. What the existing contributions have in common is a basic two-sector assumption (agriculture/manufacturing) and a resulting focus on the question of whether liberalisation leads to a greater concentration of aggregate manufacturing activity. Reconsidering these models from a multi-sectoral perspective, the aim is to allow for sectoral differences in the spatial adjustments to liberalisation. This introduces a conceptual nexus between comparative advantage (CA)-type sectoral recomposition effects of trade and NEG-type spatial adjustments. In the analysis of Mexican manufacturing location 1993,2003, incipient empirical evidence is found in favour of the hypothesis that sectors characterised by a revealed comparative advantage and/or cross-border intermediate supplies grow faster in regions with good foreign market access, whereas import competing ones gain in relative terms in regions with higher "natural protection" from poor market access. The relevancy of the proposed NEG/CA framework concerns both efficiency and equity objectives of trade adjustment policies, and opens a new perspective on the long-run effects of trade on spatial inequality. [source]

Structural adjustment and soil degradation in Tanzania A CGE model approach with endogenous soil productivity

Henrik Wiig
CGE model; Soil degradation; Economic growth; Structural adjustment Abstract In this paper, a model of the nitrogen cycle in the soil is incorporated in a Computable General Equilibrium (CGE) model of the Tanzanian economy, thus establishing a two-way link between the environment and the economy. For a given level of natural soil productivity, profit-maximising farmers choose input levels , and hence production volumes , which in turn influence soil productivity in the following years through the recycling of nitrogen from the residues of roots and stover and the degree of erosion. The model is used to simulate the effects of typical structural adjustment policies like a reduction in agro-chemicals' subsidies, reduced implicit export tax rate etc. After 10 years, the result of a joint implementation is a 9% higher Gross Domestic Product (GDP) level compared to the baseline scenario. The effect of soil degradation is found to represent a reduction in the GDP level of more than 5% for the same time period. [source]

Maquila Age Maya: Changing Households and Communities of the Central Highlands of Guatemala

Liliana R. Goldín
As rural peoples of Central America and beyond struggle to create and access new forms of market participation and means of survival under the conditions generated by structural adjustment policies, significant social and cultural shifts are taking place at the local level. This paper analyzes on three levels the impact of maquiladora industries: the region and communities, sending households, and individuals. In particular, I address the implications of migration and urbanization for the new communities, the complex nature of diversified households, and attitudes toward industrial and agricultural work. I conclude with a discussion about the implications of these findings for transitions to proletarianization. [source]

Aggregate Dividend Behavior and Permanent Earnings Hypothesis

Ming-Shiun Pan
G35 Abstract The study examines the aggregate dividend behavior of U.S. corporations based on the permanent earnings hypothesis. Using annual data of aggregate earnings and dividends from 1871,1993, I find that although managers change dividends proportional to permanent earnings changes, they make revisions with a larger percentage change in dividends than in permanent earnings. The results from the post-war data show that firms follow a partial adjustment policy with a long-term dividend payout target in mind and make revisions with a delay. The quarterly data analysis yields results similar to those of the post-war annual data. [source]

CUSUM charts for detecting special causes in integrated process control

Marion R. Reynolds Jr
Abstract This paper investigates control charts for detecting special causes in an ARIMA(0, 1, 1) process that is being adjusted automatically after each observation using a minimum mean-squared error adjustment policy. It is assumed that the adjustment mechanism is designed to compensate for the inherent variation due to the ARIMA(0, 1, 1) process, but it is desirable to detect and eliminate special causes that occur occasionally and produce additional process variation. It is assumed that these special causes can change the process mean, the process variance, the moving average parameter, or the effect of the adjustment mechanism. Expressions are derived for the process deviation from target for all of these process parameter changes. Numerical results are presented for sustained shifts, transient shifts, and sustained drifts in the process parameters. The objective is to find control charts or combinations of control charts that will be effective for detecting special causes that result in any of these types of parameter changes in any or all of the parameters. CUSUM charts designed for detecting specific parameter changes are considered. It is shown that combinations of CUSUM charts that include a CUSUM chart designed to detect mean shifts and a CUSUM chart of squared deviations from target give good overall performance in detecting a wide range of process changes. Copyright © 2009 John Wiley & Sons, Ltd. [source]