Paul G. Hare

Modelling the determination of research output in British universities

Abstract The paper begins by noting some of the recent proposals for restructuring research activity in British universities, mainly through a process of concentration of research resources. We then review the available evidence, which shows that there is little support for such concentration except in the most resource-intensive disciplines. Since there is little firm information about the shape of “research production functions’, either for institutions or for the system as a whole, the core of the paper studies the factors likely to be important in such functions and investigates the consequences of particular functional forms. Finally, it is concluded that more research is needed to gain a better understanding of the research process in universities, and that in the meantime it would be unwise to embark on a wholesale restructuring of the system.

Extending the economics of disorganization

Many of the states of the former Soviet Union have experienced a dramatic collapse of output during transition, which has not yet been reversed in a sustainable way. The economics of disorganization, proposed by Blanchard (1997) and tested empirically by Blanchard and Kremer (1997), reasons that this phenomenon can be explained by specificity of inputs and the breakdown of traditional domestic supply linkages. We replicate the Blanchard-Kremer study for Ukraine and Kazakhstan, and also find that longer and more complex domestic supply chains are associated with greater reductions in output. When we extend their analysis to incorporate measures of the complexity of the Commonwealth of Independent States (CIS) trade and non-CIS trade however, we find that complexity of non-CIS trade is the significant factor in explaining the output collapse. We therefore argue that the disintegration of the Council for Mutual Economic Assistance and the requirement of hard currency trade, are equally, if not more, significant in explaining the output declines experienced by Ukraine and Kazakhstan.

The evolving role of head of department in UK universities

Heriot-Watt University since 1985, and was first Head of the new School of Management there from 1997 to 1999. He is currently Director of Research in the School. Some of his own research is on the economics of higher education. Address for correspondence: School of Management, Heriot-Watt University, Riccarton, Edinburgh EH14 4AS, UK. Tel: +44 (0)131 451 3483/3497; Fax: +44 (0)131 451 3498; E-mail: p.g.hare@hw.ac.uk

Hungary's transition to the market: the case against a ‘big-bang’

Hungary Paul Hare and Tamas Revesz Among Eastern European countries, Hungarys great advantage is that it began economic reforms in 1968, and slowly introduced the institutions of a market economy during the 1980s. These measures laid the foundation for a gradual transition to the market, without the need for any sharp break with the past. Policy mistakes were, of course, made. The most serious, extending over several years, was the 1970s investment boom funded by foreign capital, which contributed to Hungarys large debt burden. Despite this, the government accounts are not now in substantial deficit and the balance of payments on current account is in modest surplus; nevertheless, managing the external debt is now the most difficult of Hungarys problems. It is important that Hungarian joint ventures and privatization are now attracting significant quantities of foreign capital. Given the quite rapid pace of liberalization since the late 1980s, the governments commitment to further changes, and a reasonably satisfactory macroeconomic balance (though inflation is worrying), there is no case for a ‘big-bang’ approach in Hungary. Such a shock could only disrupt established market relationships and expectations, with little benefit. The most valuable forms of ‘aid’ for Hungary would be debt relief and unrestricted access for Hungarys products to EC markets.

Supply multipliers in a centrally planned economy with a private sector

A simple model of a centrally planned economy is developed with a state sector and private sector, and with a supply constraint affecting state sector output. In such a model, a supply multiplier can be derived under the same conditions which would make an increase in state sector prices an effective means of reducing shortage. Moreover, a one-sector constrained equilibrium model of the state sector does not yield misleading results by ignoring the private sector; and the private sector price level is a reliable indicator of shortage in the economy.

What's Wrong with Romanian Rural Finance? Understanding the Determinants of Private Farmers' Access to Credit

This analysis of the determinants of private farmer access to rural finance in Romania has two distinct aspects: (i) a quantitative evaluation of some measurable variables for example factors affecting the amount of loans and the volume of savings; and (ii) a qualitative aspect, concentrating on the relationship between financial service suppliers and private farmers. We also consider the motivations underlying the participation or non-participation of private farmers in the development of the rural financial market. We have estimated two regression models: a) to determine the main characteristics of the private farms that have access to formal credit; and b) to estimate how farm income, the source and utilization of credit each impact on the actual loan amounts obtained. The paper attempts at all times to reflect the problems that farmers have highlighted in gaining access to rural finance in the results of our analysis.

Understanding social enterprise: a case study of the childcare sector in Scotland

Purpose – To investigate the application of the social enterprise model to the childcare sector in Scotland and develop a practical model for analysing such social enterprises.Design/methodology/approach – A review of the literature of ideas on social enterprise found in official and academic literature is presented. The concept of “social enterprise” is reviewed with particular reference to features of the childcare sector that relate both generally and specifically to Scotland. Reports the results of a questionnaire survey, conducted in late 2005 and early 2006, involving 81 childcare organizations (27.0 per cent response rate).Findings – The results indicated that about two‐thirds of the organizations operated at just one site, with playgroups tending to be local groups operating in relatively small geographical areas. Reveals that the issue of whether childcare should be free caused mixed but fairly evenly distributed responses, from strong agreement to strong disagreement, but the issue of external s...

Russia's Foreign Trade: New Directions and Western Policies

Russia is already a major trading partner of the West, especially the EU, exporting mostly energy sources (gas and oil), metal, minerals and timber, while importing a wider range of manufactured products. In the longer term, Russian manufacturing is likely to start recovering and hence Russia will need to have improved access to Western markets in order to expand its exports. This paper reviews recent trends in the direction and structure of Russian trade and summarises the reforms that have so far been applied to external trade policies and practices. It then develops three scenarios for the development of the Russian economy: (a) a centralised model; (b) muddling through; and (c) accelerated reforms, sketching the likely trading implications of all three. The paper argues that scenario (b) is the most likely, and suggests that the EU (and, to some extent the UK) could most usefully assist Russia in two ways. First, to provide technical assistance to strengthen the institutional infrastructure of foreign trade (i.e. to help reduce transactions costs and risk); and second to adopt a far more relaxed and open approach regarding access to EU markets for Russian manufactures.

Property Relations and Financial Reforms in Transition Economies

Property relations and financial markets are key aspects of the transition to a market economy. This paper reviews conceptual analysis and recent experience in these areas under five broad headings: (1) property rights and the legal framework; (2) privatisation; (3) the management and regulation of state-owned firms; (4) banking and finance; and (5) restructuring. The emphasis of the paper is on the view that these apparently different dimensions of the transition are actually closely inter-related, with the result that good policies in one area are necessarily highly dependent on progress with the others. Some of these issues turned out to be more difficult and complicated than appeared at the start of transition, but considerable learning has taken place and better policies can now be designed.

The management of research and development in Hungary at the end of the 1980s

(1990). The management of research and development in Hungary at the end of the 1980s. Soviet Studies: Vol. 42, No. 4, pp. 723-741.