Dennis R. Maki

Effects of Farm Size on Economic Efficiency: The Case of Pakistan

Many agricultural policy decisions in underdeveloped countries are affected by the belief that the price of increased equity is reduced growth. An important argument used frequently against land reforms, for example, is that large farms are more efficient than small farms. If true, land reforms cannot achieve the dual goals of equity and efficiency. The relative efficiency of large farms, however, may be an illusion if national policies have consistently favored these farms in such a way that their apparent relative efficiency is due to market imperfections in which specific public policies have played a crucial role (Berry and Cline, Griffin). It is evident that better information on the true relative efficiency of large farms would provide a better indication of how agrarian structures affect resource use and thereby of the likelihood of being able to achieve both growth and equity. This paper provides such information for Pakistan. The concept of efficiency has been interpreted in various ways. An operational concept of economic efficiency has been developed by Lau and Yotopoulos (1971, 1972) and Yotopoulos and Lau, to measure and compare performance of farm firms. Differences in economic efficiency among groups of farms (say large and small) may result from variations in technical efficiency (larger output with equal amounts of inputs) and price efficiency (higher profits). Profit maximization is implied if the value of marginal product of each variable input is equal to its price. Thus we can test relative economic efficiency of large versus small farms by comparing their actual profit functions. Although the question of relative economic efficiency of large farms is central to a discussion of land reform in underdeveloped countries, there is little empirical research due to lack of adequate disaggregated data. Some evidence for India has been presented by Yotopoulos and Lau (1973), indicating that small farms are more efficient than large farms. However, in studies by Sidhu for wheat in the Indian Punjab and by Khan and Maki for wheat and rice in Pakistan, there was no difference in efficiency by farm size. In this paper, the Lau-Yotopoulos model is used to derive values of technical and price efficiency parameters in order to identify and isolate possible differences between large and small farms. These estimates are based on farm-level data collected from a sample of 728 farms in the Punjab and Sind provinces of Pakistan. Because there are wide differences between these provinces in their agrarian structures, any conclusi ns drawn from the overall sample would be of dubious value. We, therefore, present estimation re ults for the provincial samples separately.

Human resource management in the Canadian manufacturing sector

Using a sample of 356 Canadian manufacturing organizations, this study examines the pattern of implementation of a wide range of HRM practices including external recruitment procedures, internal job posting systems, performance appraisal methods, job evaluation methods and pay-for-performance systems. A comparison of the adopted HRM practices between large and small firms and between union and non-union firms is also made. The results show that the main difference between large and small firms lies in the recruitment procedure and the job evaluation process. The difference between the union and non-union firms is associated with the greater emphasis placed on performance by the latter. This study also presents some evidence regarding the perceived importance of twenty HRM activities. The evidence suggests that the three most important activities include health and safety compliance, employee/labour relations and disciplinary issues. On the other hand, the three least important ones are conducting attitudi...

Product cannibalization and the role of prices

The role of brand prices in contributing to product cannibalization is examined. Price elasticities and reference price theory are used to provide a theoretical foundation and empirical test for the impact of a firms cheap brand on one of its expensive brands. Results are consistent with the conclusion that the market share of the companys premium brand was cannibalized by a growth in sales of its cheap brand.

The immigration of Third World professionals to Canada: 1968-1973

Abstract In this paper we estimate a reduced form equation for highly skilled immigration to Canada during the period 1968–1973. The purported open immigration policy during this period implied that a relatively unregulated flow of immigrants came to Canada. We found to the contrary that the Third World immigrant flow was carefully regulated and responded significantly to four principal variables: the number of job vacancies by occupation, competing opportunities in the United States, the total flow of Third World immigrants and the number of movers from the country under consideration. The income variable never proved significant.

The effects of unemployment benefits on U. S. Unemployment rates

ZusammenfassungDie Auswirkungen der Arbeitslosenunterstützung auf die Erwerbslosenquote in den Vereinigten Staaten. —In diesem Aufsatz wird an einem preistheoretischen Modell untersucht, wie die Verfügbarkeit von Arbeitslosenunterstützung die Freizeit-Lohn-Konstellation für den »Durchschnittsarbeiter« verÄndert und geeignet ist, Arbeitslosigkeit zu verursachen. Anhand des Modells wird gezeigt, wie marktmÄ\ige und institutionelle Sicherungen in den Versicherungsprogrammen —wie die Notwendigkeit, eine neue Arbeit zu finden, das Bestehen einer Wartezeit vor dem Empfang der Versicherungsleistungen und die Anforderungen für das Erfüllen der Anspruchsvoraussetzungen —den Anreiz zur Arbeitslosigkeit, der durch Versicherungszahlungen ausgelöst wird, vermindern.Das theoretische Modell führt zu einer Spezifizierung von SchÄtzgleichungen. Es werden aggregierte Zeitreihen-Daten der Vereinigten Staaten für 1951–1972 und ein Querschnitt von U.S.-Bundesstaaten für 1971 benutzt. Dabei ergibt sich, da\ die unabhÄngigen Variablen, die als Determinanten induzierter und zyklischer Arbeitslosigkeit unter den Versicherten vermutet wurden, theoretisch erwartete Vorzeichen und statistisch signifikante Koeffizienten haben.Das wichtigste Ergebnis der empirischen Untersuchung ist, da\ —hÄtte 1972 das VerhÄltnis von Unterstützungszahlungen und Lohnhöhe, der Anteil der versicherten ArbeitskrÄfte und die Beachtung der Anspruchsvoraussetzungen den VerhÄltnissen im »VollbeschÄftigungsjahr« 1955 entsprochen —die Arbeitslosenquote in den Vereinigten Staaten ceteris paribus 5,0 vH statt 5,6 vH betragen hÄtte, d. h. sie wÄre um etwa 11 vH niedriger gewesen. Ein Ähnliches Resultat wurde bei einer Querschnittsregression für die 48 U.S.-Bundesstaaten erzielt.Die Autoren folgern daraus, da\ diese Ergebnisse es noch dringlicher machen, die öffentliche Debatte über ein zweckmÄ\iges VollbeschÄftigungsziel für die Geld- und Fiskalpolitik der Vereinigten Staaten wiederaufzunehmen und Fragen hinsichtlich der optimalen Höhe der Unterstützungszahlungen und der Beachtung der Anspruchsvoraussetzungen zu stellen.RésuméLes effets des bénéfices de chÔmage sur les taux de chÔmage des E.U. —Dans cet article nous développons un modèle de prix théorique qui montre comment la disponibilité des bénéfices d’assurance de chÔmage change la position d’opportunité de revenu vis-à-vis des loisirs avec laquelle on confronte un ouvrier «moyen» et comment elle a une tendance à stimuler le chÔmage. Nous utilisons le modèle de montrer comment les sauvegardes de marché aussi bien que les sauvegardes institutionelles dans les programmes d’assurance par exemple la nécessité de trouver un nouveau travail, l’existence les périodes d’attente avant de recevoir les bénéfices aussi bien que les coûts de se soumettre aux règles d’éligibilité reduisent les incitations de chÔmage créées par les paiements de bénéfice.Le modèle théorique nous conduit à la spécification des équations d’estimation. En utilisant les données agrégées des séries de temps d’E.U. de 1951–1972 et une section transversale des états d’ E.U. en 1971 nous trouvons des signes attendus théoriquement et des coefficients statistiquement signifiants des variables indépendantes desquelles nous avons supposé qu’elles sont les variables déterminantes du chÔmage stimulé et cyclique parmi les assurés.Le résultat le plus important de notre étude empirique est que si en 1972 les bénéfices d’assurance de chÔmage relatifs aux salaires, la couverture des ouvriers et le renforcement des règles d’éligibilité auraient été au niveau de 1955, une année de «plein emploi», puis le taux de chÔmage d’E.U. ceteris paribus aurait été plutÔt 5,0 vis-à-vis le pourcentage actuel de 5,6 ou environ 11 pourcent plus bas. Nous avons obtenu un résultat similaire avec une régression de section transversale des 48 états d’E.U. voisins. Nous conclusons que ces résultats renforcent l’urgence de réouvrir le débat public concernant le but de plein emploi approprié pour les politiques monétaires et fiscales d’E.U. et laissent élever les questions sur les paiements optimum de bénéfice de chÔmage et sur le renforcement des règles d’éligibilité.ResumenLos efectos de los beneficios por desempleo sobre las tasas de desempleo en los EEUU. —En este artículo desarrollamos un modelo de teoría de precios que muestra que la disponibilidad de beneficios de seguros de desempleo produce un cambio en la relación de oportunidad entre ocio e ingreso para un trabajador «promedio» y tiende a inducir desempleo. Se usa el modelo para mostrar cómo el mercado y las garantias institucionales de los programas de seguros, tales como la necesidad de encontrar un nuevo trabajo, la existencia de períodos de espera antes de recibir beneficios y el costo de someterse a las reglas reducen los incentivos en favor de desempleo creados por el pago de beneficios.El modelo teórico lleva a la especificación de ecuaciones estimativas. Usando datos para series de tiempo agregadas de EEUU en el período 1951–1972 y una estimación de sección transversal de los estados norteamericanos en el año 1971, encontramos signos teóricamente esperados y coeficientes estadísticamente significativos para las variables independientes, las que hipotéticamente son las determinantes del desempleo inducido y cíclico entre los asegurados.El resultado más importante de nuestro estudio empírico es que si en el año 1972 los beneficios del seguro de desempleo en relación a los salarios, la cobertura de trabajadores y la imposition de reglas de aceptación hubieran permanecido en el nivel de 1955, un año de «pleno empleo», entonces la tasa de desempleo norteamericana, ceteris paribus, hubiera sido 5.0 p.c. en vez de 5.6 p.c., o alrededor de 11 p.c. más baja. Un resultado similar fue obtenido de una regresión de sección transversal de 48 estados norteamericanos contiguos. Concluimos que estos resultados agregan una urgencia adicional a la reapertura de un debate pÚblico sobre una meta apropiada de pleno empleo para las políticas monetaria y fiscal de los EEUU y levantan preguntas sobre pagos óptimos de beneficios por desempleo y la imposición de reglas de aceptación.

The effects of unions and strikes on the rate of growth of total factor productivity in Canada

There is a substantial amount of literature regarding the effects or potential effects of trade unions on various measures of productivity (Brown and Medoff, 1978; Clark, 1980) but less information is available on the effects on the rate of growth of productivity measures, Mansfield (1980) and Kendrick (1973). Except for tangential references, no sources were noted which discussed the effects of strike activity on productivity growth. This paper is concerned with the latter two issues. There are four main sections: I. a discussion of the theoretical issues involved, II. a discussion of measurement options and problems, III. presentation of empirical results and discussion of estimation problems, and IV. intepretation of the empirical results.

Effects of Trade Unions on the Earnings Differential between Males and Females: Canadian Evidence

This paper examines whether trade unions have affected the earnings gap between male and female workers in Canada. Based on a sample of 4,093 individuals derived from the Survey of Union Membership, the results of regression analysis suggest that unions have increased the relative earnings of male workers, even after the difference in the level of unionization between males and females is accounted for. The results also indicate that the relative wage effect differs substantially between the public and private sectors.

An evaluation of the 1977 Canadian firearm legislation: robbery involving a firearm

The effect of the 1977 Canadian firearm legislation on robberies involving firearms is evaluated between 1974 and 1992 using a pooled cross-section, time series model. The results show that the 1977 legislation did not reduce robbery involving firearms, nor did it have a significant effect on the total robbery or armed robbery rates. The legislation may even have acted perversely in that it may have increased robberies with firearms. In general, these results are consistent with previous published findings but contrast with unpublished governmental studies. The implication that this legislation may have acted perversely is new and requires further investigation.

The effect of the cost of strikes on the volume of strike activity

This paper presents a method for testing whether the volume of strike activity in a unionized firm or industry is affected by the cost of such activity as measured by output lost, and applies that method to Canadian data at the one-digit SIC level. Output losses are estimated through bivariate transfer function analysis of time series data, and rank correlations between these estimates and a measure of strike activity are then calculated across industries. The results support the hypothesis that strike activity varies inversely with the cost of strikes, but this evidence is not strong, possibly due to the small sample size used in the cross-section analysis.

The brain drain and income taxation: Canadian estimates

Abstract It has recently been proposed that a surfax be levied on the incomes of skilled immigrants from LDCs to DCs, with the proceeds used for developmental spending in LDCs. This paper presents estimates of the amounts which would have been collected by such a surfax in Canada in 1972 if it had been levied at a 10 per cent rate on disposable (after regular income taxes) income, assuming skilled immigrants were subject to the surtax for a period of ten years following immigration. Estimates of the elasticity of the response of immigrant flows to such a surtax are also presented.