Scott M. Fuess

Transactional activities and total factor productivity growth in Taiwan

Abstract Total factor productivity (TFP) growth shows how rapidly an economy is enhancing technology and the efficiency with which it allocates resources. It has been argued that “miraculous” growth in East Asian economies may not be sustainable, due to relatively low rates of TFP growth. Among these economies, it appears that Taiwan has indeed exhibited substantial technological progress. Failure to control for transactional activities, however, can distort the impression of TFP growth. This study recalculates Taiwans TFP growth for the 1957–1993 sample period, adjusting for transaction costs in the government and private sectors. For the early years of the sample, 1957–1973, the economys technological progress is better than GDP-based calculations suggest. In recent years, 1983–1993, productivity improvement has been overstated, but the economy has still exhibited relatively fast TFP growth.

Globalizing the Economics Curriculum: A View from Japan

In recent years Japanese universities have been under pressure to internationalize their curricula and make undergraduate studies more cross-disciplinary. Many “reforms” have involved simple adjustments to existing programs; only a few institutions have gone so far as to develop entirely new programs of study. Senshu University, a leading private university in Tokyo, has undertaken a bold commitment to use economics as a foundation for integrated global studies. Senshus experience suggests that there is an important role for using economic studies to internationalize undergraduate education.

Strike strategies and the minimum effective union

Research has shown that in an industry-wide strike, a union must be able to reduce output “by a substantial percentage below competitive levels” to impose hardship on producers. But a union may also be effective by pursuing selective strikes. If some producers are struck while others are free to operate, then the targeted producers may bargain with the union, and holdouts can be targeted for strikes.This article analyzes the effects of selective and general strikes on both a competitive industry and a duopoly. If there are side-payments among producers, then general strikes are easier to mount. If there is no mutual aid among employers, then selective strikes are less costly to implement. It is also shown that strikes are easier to mount in a duopoly than in a competitive industry. This may contribute to union formation and collective bargaining in noncompetitive industries. The analysis is modified to allow for firms of different sizes. The results show that unions must be able to remove more output from larger firms than smaller ones, suggesting that union formation may be focused more on larger firms.

The Relative Effects of Craft-Level Strikes: The Case of Airlines

One aspect of bargaining power is the ability of unions to impose losses on firms by striking. Using stock market data from 1963 through 1986, this study tests whether strikes by different crafts have resulted in different losses for airlines. The evidence indicates that strikes by pilots and mechanics initially reduced the share value of struck airlines and that strikes by airline workers in other jobs did not result in significant share value losses. There is no evidence that strikes have imposed permanent losses on air carriers.

The impact of transactional activities on productivity growth in Canada, and a comparison with the United States

Abstract Improvement in total factor productivity (TFP) is calculated as the residual between output growth and factor growth. Earlier research has shown that transactional activities cause GNP to misstate output, and thus TFP growth, in the United States. To see whether this distortion extends beyond the United States, this study recalculates TFP growth for its largest trading partner, Canada. For the 1967–1991 period, we compute TFP growth using Canadian GDP and then we recompute it adjusting for transactional activities. Failure to account for transactions distorts the impression of Canadas total factor productivity. During periods of recession, like 1974–1982 and 1990–1991, productivity improved less than GDP-based estimates suggest. Further, the “recovery” between 1983 and 1989 must be reconsidered. These findings for Canada are similar to those for the United States.

Job Centers: Are Finders Keepers? A Note from Japan

Do job centers help unemployed people to find and keep jobs? Using the results of a unique survey by the Japanese government, this note examines the employment success of job center clients. Success in finding and keeping jobs varies systematically across distinct subgroups. Moreover, job center clients were not particularly successful in finding work that fit their qualifications. (JEL J60, J68, J40)