Don J. Webber

Wagner's Law revisited: cointegration and causality tests for New Zealand

Wagners Law states that the share of government expenditure in Gross National Product (GNP) will increase with economic development; many associated empirical studies substitute GNP with Gross Domestic Product (GDP). This article presents an empirical investigation into the validity of Wagners Law for New Zealand over the period 1960 to 2007 and compares the results obtained using these two measures of output. Application of the Autoregressive Distributed Lag (ARDL) bounds test suggests a cointegrating relationship between either output measure and the share of government spending, and further application of General to Specific (GETS), Engle and Granger (EG), Phillip Hansens Fully Modified Ordinary Least Squares (FMOLS) and Johansens time series techniques illustrate statistical robustness and an income elasticity between 0.56 and 0.84. The results suggest that output measures Granger cause the share of government expenditure in the long run, thereby providing support for Wagners Law, and these results are stable irrespective of the chosen output measure.

Adopters and non‐adopters of internet banking: a segmentation study

Purpose – This study examines internet banking adoption and resistance behaviour in Greece in order to develop profiles of adopters and non‐adopters of the service. The aim is to illustrate customers resistance behaviour towards internet banking. The existing research does not explain resistance behaviour, since it does not clearly distinguish non‐adoption from resistance. Consequently, it has not recognised the different types of non‐adoption.Design/methodology/approach – A measuring instrument was developed and utilised in a survey of a convenience sample of 1,200 customers. The derived dimensionality of the relevant perceptual variables was used to explore the existence of different customer segments through cluster analysis.Findings – Three segments were identified, where the description of their profiles is based on customer perceptions of the service and general usage data. Across these segments adopters and non‐adopters were found to have different characteristics. With regard to demographics, onl...

Culture, participative decision making and job satisfaction

This study explores the impact of culture on participatory decision making (PDM) and job satisfaction (JS) using data obtained from the European Values Study (EVS). We parameterise two different cultural variables using principal components analysis: first a continuum based on survival versus self-expression values and second a continuum based on traditional versus secular-rational values. Application of ordered logistic regression to Likert scales of PDM and JS suggests that greater self-expression in the survival versus self-expression variable enhances both PDM and JS; and more traditional values in the traditional versus secular-rational continuum have the same effect.

Real wages, inflation and labour productivity in Australia

This article presents an analysis of real wages, inflation and labour productivity interrelationships using cointegration, Granger causality and, most importantly, structural change tests. Applications of tests to Australian data over the 1965 to 2007 period corroborate the presence of a structural break in 1985 and show that a 1% increase in manufacturing sector real wages led to an increase in manufacturing sector productivity of between 0.5% and 0.8%. Comparable estimates for the effect of inflation on manufacturing sector productivity have limited statistical significance. Granger causality test results suggest that real wages and inflation both Granger cause productivity in the long run.

Does pluralism in economics education make better educated, happier students? A qualitative analysis

This paper contributes to the debate on pluralism in the economics curriculum. Here pluralism means a diversity of theoretical perspectives. One set of pedagogical arguments for pluralism are those found in liberal philosophy of education. To this end, the first part of the paper presents arguments for pluralism based on liberal pedagogical arguments. The paper also notes more instrumental arguments for pluralism and the barriers to such an approach. Finally, the paper considers new primary evidence from focus groups on student perceptions of economics. This evidence shows support for the arguments that a pluralist curriculum is popular and develops cognitive capacities of criticism, comparison and analysis – exactly those argued for in (liberal) pedagogical discussion – as well as judgement, understanding and writing skills. However, pluralism as a teaching strategy may be more difficult for those delivering it.

Environmental Kuznets curves: mess or meaning?

There may be relationship between output and environmental degradation. The shape of this relationship is proposed to be an inverted ‘U’ shape for a number of pollutants. The purpose of this paper is to review empirical literature on the environmental Kuznets curve and to draw any lessons that might be useful to policy makers. Evidence is tabulated for a wide range of pollutants. In aggregate, there appears to be a relationship between specific environmental pollutants and income per capita, however the shape of the relationship is not uniform across pollutants, and turning points, when they exist, differ across pollutants. This leads to the conclusion that there is no single relationship between income, environmental quality and the rate of environmental degradation. It is possible to grow out of some types of environmental degradation, but whether this is the case will depend on the type of pollution that is examined. Hence, policy makers should recognise the deficiencies of the theory behind the environmental Kuznets curve. Even if environmental Kuznets curves do exist, several decades may pass before turning points are reached, and extensive environmental degradation may occur in the meantime. The turning point on the environmental Kuznets curve is probably associated with the dynamics of individual environmental elements that change with income. Progress still needs to be made in order to learn which variables do have turning points in their relationship with output so that we can decide which policies to follow. If a massive increase in pollution is to be avoided, a proactive and explicit approach to environmental quality is needed across countries, which probably does not use the knowledge gained from an environmental Kuznets curve.

Testing the validity of the Feldstein--Horioka puzzle for Australia

This article presents the details of an investigation into the relationship between investment and savings in Australia over the period 1960 to 2007. Using five time series techniques our results reveal that the Feldstein–Horioka puzzle exists in a weak form, with a lower saving retention coefficient. Granger causality tests illustrate that savings Granger causes investment, both in the short and long runs. Our results suggest Australia could effectively adopt policies that focus on increasing investment through increasing domestic savings.

Basic Needs, Government Debt and Economic Growth

This paper investigates the relationships between basic needs and economic growth where the interactions between output, health, nutrition and education are explicitly simultaneous. We find a unidirectional relationship that improving basic welfare contributes strongly to labour productivity change, but a clear reverse causation only from growth to nutrition. There are substantial differences in the patterns of simultaneous interactions at different income and welfare levels. There are strong self-reinforcing effects of literacy and debt service on poverty, making it difficult for poor countries to rectify their situation. Channelling resources towards improving health, education and nutrition could bring dramatic economic returns.

Voting Patterns, Party Spending and Relative Location in England and Wales

Cutts D. and Webber D. J. Voting patterns, party spending and relative location in England and Wales, Regional Studies. There is growing evidence that context can influence how people make voting decisions, and some of the contexts are spatially defined. Votes are cast in constituencies, but electors in one constituency may be influenced by ‘events’ in neighbouring constituencies, such as the intensity of party campaigning. By examining the determinants of voting patterns across constituencies in England and Wales using spatial econometric methods, this article suggests that while socio-economic factors and local campaigning are key determinants of party vote shares in constituencies, there is strong spatial autocorrelation in voting patterns. Not only does local campaigning have a positive effect on party performance in constituency j, but also empirical evidence is found of spillover effects following intensive party activity. The more a party spends on campaigning in constituencies adjacent to constituency j, the more votes it gets in constituency j. Each major political party is influenced by space to different extents with the Liberal Democrats visibly exploiting spatial autocorrelation to increase their vote shares. Cutts D. et Webber D. J. La distribution des votes, les dépenses des partis politiques et la localisation relative en Angleterre et au Pays de Galles, Regional Studies. Tout laisse à indiquer que le contexte peut influer sur les intentions de vote, et quelques-uns des contextes se définissent géographiquemment. On vote dans des circonscriptions électorales, mais il se peut que les intentions de vote des voteurs dune conscription électorale donnée soient influencées par les ‘circonstances’ qui ont lieu dans des circonscriptions électorales voisines, telles limportance des campagnes électorales. En examinant les déterminants de la distribution des votes à travers les circonscriptions électorales en Angleterre et au Pays de Galles en employant des modèles économétriques géographiques, cet article laisse supposer que lautocorrélation de la distribution des votes savère forte, tandis que les facteurs socio-économiques et les campagnes locales sont des déterminants clé de la distribution des votes dans les circonscriptions électorales. Les campagnes sont non seulement étroitement liées à la performance dun parti dans la circonscription électorale j, mais il savère aussi des retombées suite à une campagne électorale intensive. Plus un parti politique dépense pour les campagnes dans les circonscriptions électorales voisines de la circonscription électorale j, plus les votes obtenus en circonscription électorale j sont élevés. Chaque parti politique majeur est influencé différemment par lespace, dont les Liberal Democrats qui exploitent ouvertement lautocorrélation géographique afin daugmenter leur proportion des votes. Elections législatives 2005u2003Distribution des votesu2003Dépenses des partis politiquesu2003Régression géographique Cutts D. und Webber D. J. Wahlverhalten, Ausgaben der Parteien und relative Standorte in England und Wales, Regional Studies. Es gibt wachsende Anzeichen dafür, dass die Wahlentscheidungen der Bürger vom Kontext beeinflusst werden können und dass einige dieser Kontexte räumlich definiert sind. Die Stimmen werden innerhalb von Wahlkreisen abgegeben, doch die Wähler in einem Wahlkreis können von ‘Ereignissen’ in angrenzenden Wahlkreisen beeinflusst werden, wie z. B. der Intensität des dortigen Wahlkampfs einzelner Parteien. In diesem Beitrag untersuchen wir mit Hilfe räumlich-ökonometrischer Methoden die Determinanten des Wahlverhaltens verschiedener Wahlkreise in England und Wales und stellen die These auf, dass sozioökonomische Faktoren und der lokale Wahlkampf zwar zentrale Determinanten für die Stimmenanteile der Parteien in den einzelnen Wahlkreisen darstellen, doch dass hinsichtlich des Wahlverhaltens auch eine ausgeprägte räumliche Autokorrelation vorhanden ist. Der lokale Wahlkampf wirkt sich nicht nur positiv auf die Ergebnisse der jeweiligen Partei im Wahlkreis j aus, sondern wir finden auch empirische Beweise für Übertragungseffekte nach einem intensiven Wahlkampf. Je mehr eine Partei in einem Nachbarwahlkreis des Wahlkreises j für ihren Wahlkampf ausgibt, desto mehr Stimmen erhält sie im Wahlkreis j. Jede größere politische Partei wird in unterschiedlichem Ausmaß vom Raum beeinflusst, wobei die Liberal Democrats die räumliche Autokorrelation sichtbar zur Erhöhung ihres Stimmenanteils ausnutzen. Britische Parlamentswahlen von 2005u2003Wahlverhaltenu2003Ausgaben politischer Parteienu2003Räumliche Regression Cutts D. y Webber D. J. Modelos de votación, gastos de partidos y ubicación relativa en Inglaterra y Gales, Regional Studies. Hay cada vez más indicios de que las decisiones electorales de los ciudadanos pueden estar influenciadas por el contexto y que algunos contextos están definidos espacialmente. Los votos se emiten en distritos electorales pero los votantes de un distrito electoral podrían estar influenciados por ‘acontecimientos’ que ocurran en los distritos vecinos, como podría ser la intensidad de una campaña política. Al examinar los determinantes de los modelos de votación en los diferentes distritos electorales en Inglaterra y Gales usando métodos econométricos espaciales, en este artículo sugerimos que si bien los factores socioeconómicos y las campañas locales son determinantes fundamentales de las resultados electorales de los partidos en los distritos, existe una fuerte autocorrelación espacial en los modelos de votación. Las campañas locales no sólo tienen un efecto positivo en el desempeño del partido en un distrito electoral J sino que también observamos indicios empíricos de los efectos de desbordamiento tras una intensa actividad por parte de los partidos políticos. Cuanto más gasta un partido en las campañas en los distritos electorales adyacentes al distrito J, más votos obtiene en este distrito. Cada partido político importante está influenciado por el espacio de modo distinto, si bien los demócratas liberales explotan visiblemente la autocorrelación espacial para mejorar sus resultados electorales. Elección General de 2005u2003Modelos de votaciónu2003Gastos de partidos políticosu2003Regresión espacial

Students’ perceptions of economics: identifying demand for further study

Most university departments aspire to increase their quantity of students. The objective of this empirical study is to ascertain whether it is possible to identify students who would demand more economics study. Using data on student perceptions of economics and the application of logistic regression, two step autoclustering, K means clustering, analysis of variance and Tukeys honestly significant difference statistical techniques, we reveal distinct clusters of students, including a small cluster of students who appear to be more open to further study.