Two related trends have created novel challenges for managing risk in the United States. The first trend is a series of dramatic changes in liability law as tort law has expanded to assign liability to defendants for reasons other than negligence. The unpredictability of future costs induced by changes in tort law may be partly responsible for the second major trend known as the liability crisis' - the disappearance of liability protection in markets for particularly unpredictable risks. This book examines decisions people make about insurance and liability. An understanding of such decision making may help explain why the insurance crisis resulted from the new interpretations of tort law and what to do about it. The articles cover three kinds of decisions: consumer decisions to purchase insurance; insurer decisions about coverage they offer; and the decisions of the public about the liability rules they prefer, which are reflected in legislation and regulation. For each of these three kinds of decisions, normative theories such as expected utility theory can be used as benchmarks against which actual decisions are judged.

Long before policy analysis emerged as a separate profession with its own graduate schools, economists offered advice about government policies. Positive economics provides the tools for predicting the impacts of prop osed policies; normative economics, especially welfare theory, offers a framework for valuing the impacts of policies in terms of efficiency and simple notions of equity. With the expansion of economic theory into ever wider fields of human behavior, it is no wonder that economists have prominence as teachers and practitioners of policy analysis. Indeed, many economists see policy analysis as essentially applied economics. Though other social scientists might object to this somewhat parochial view, economics and policy analysis share much in commom in terms of develop ment and prospects. The purpose of this volume is to trace these interrela tionships and explore the tensions that they create. Tensions arise for several reasons. Changes in the discipline of econ omics affect the findings, methods, and personnel offered to policy analy sis. For example, on the one hand, the "new institutional economics" appears to be extending the influence of economists to questions involving nonmarket oranizations, while on the other hand, the apparently growing emphasis within the economics profession on creating rather than empir ically testing theory suggests that fewer of the best young scholars will be drawn to policy-relevant research. Within the schools of policy analysis, the drift toward public management may reduce the demand for traditional economic training."

Our original reason for writing this book was the desire to write down in one place a complete summary of the major results in du ality theory pioneered by Ronald W. Shephard in three of his books, Cost and Production Functions (1953), Theory of Cost and Produc tion Functions (1970), and Indirect Production Functions (1974). In this way, newcomers to the field would have easy access to these important ideas. In adg, ition, we report a few new results of our own. In particular, we show the duality relationship between the profit function and the eight equivalent representations of technol ogy that were elucidated by Shephard. However, in planning the book and discussing it with colleagues it became evident that such a book would be more useful if it also provided a number of applications of Shephard's duality theory to economic problems. Thus, we have also attempted to present exam ples of the use of duality theory in areas such as efficiency measure ment, index number theory, shadow pricing, cost-benefit analysis, and econometric estimation. Much of our thinking about duality theory and its uses has been influenced by our present and former collaborators. They include Charles Blackorby, Shawna Grosskopf, Knox Lovell, Robert Russell, and, not surprisingly, Ronald W. Shephard. We have also benefit ted over the years from many discussions with W. Erwin Diewert."

Title IV of the Clean Air Act Amendments effectively transfers an environmental property right, the difference in unrestricted emissions and the yearly endowment, 3 from certain fIrms to the public domain. Phase I is to reduce annual SOz emissions of 261 large (100 MW or more) utility generating units with emissions greater than 2. 5 IbslmmBtu. The yearly endowment during Phase I is equal to 2. 51bslmmBtu times the 1985-1987 baseline energy usage. Phase I standards are required to be met by 1995, an exception being units that install certain control technologies. In this case, units may postpone compliance until 1997 and may receive bonus 4 allowances. Phase II begins in the year 2000 and applies to any utility units (25 MW or more) with emissions above 1. 2 Ibs/mmBtu. The endowment is 1. 2 Ibs/mmBtu times baseline fuel use (U. S. Environmental Protection Agency 1990). 5 Hahn and Noll (1982), Bohi and Burtraw (1992), Lock and Harkawik (1991), and Walther (1991) discuss interactions between traditional rate-of-return regula- tion and overlaying environmental regulations, particularly tradable emission allowances, in the electric utility industry. Lock and Harkawik (1991) and Niemeyer (1991) discuss utility planning in this regard. Bohi and Burtraw (1992) fmd that a utility's environmental investment incentives will vary depending on cost recovery rules and argue that symmetry in treatment of investments in allowances and control technology is necessary if the utility is to be provided with the incentive to minimize costs of compliance.

Electric utilities throughout the world continue to face new challenges involving ownership, market structure, and regulation. There are three related issues at hand. First, should ownership be private or public? Second, what operations should be integrated and where is competition feasible? Third, where is regulation necessary and can it be made more efficient? This volume bears directly upon these concerns. The book contains two sections. The first six articles discuss the British electricity experiment that has privatized and disintegrated the nation's generation, transmission, and distribution companies, introduced market competition for power purchases, and implemented incentive regulation for monopolized transmission and distribution grids. The remaining articles focus on the theater in which significant microeconomic issues will continue to emerge, most immediately in the U.K. and U.S.A. -- the coordination and pricing of transmission.

Leon N. Moses In June 1991, the Transportation Center at Northwestern University sponsored Hazmat Transport '91: A National Conference on the Transportation of Hazardous Materials and Wastes. The faculty associated with the center were aware that there had been many professional, industrial and government conferences and meetings on the subject. However, they believed that the unique capacity of the Transportation Center to bring together leaders from industry and government, as well as leading scholars from economics, law, engineering, psychology and sociology who have done research on the problems associated with the transportation of hazardous materials and wastes (hazmats), could produce a set of integrated insights and understandings that would go well beyond those of previous conferences. The papers that make up this volume were all delivered at Hazmat Transport '91. From a legislative point of view, they tend to deal with issues associated with the Hazardous Materials Transportation Act of 1975 (HMTA), the original act passed to regulate the transportation of hazardous materials, and the Hazardous Materials Transportation Uniform Safety Act of 1990 (HMTVSA). There were talks and papers presented at the conference that focused on other recent legislation and transportation issues with which HMTUSA does not deal. The conference proceedings volume also had discussions and papers on significant managerial and regulatory issues that could not be included in this volume because of constraints on its size. Therefore, this essay is made up of three parts.

Global interest in technology-based growth politics is growing as technology becomes an increasingly important factor in economic competitiveness. In spite of increased efforts in many nations to develop more effective industry strategies, most of these endeavors have been ad hoc exercises rather than derived from a consistent framework. Technology Infrastructure and Competitive Position provides that missing framework. It begins by providing an overview of technology-based competition and the relevant issues. A conceptual model is developed that emphasizes the roles and impacts of the supporting infrastructure. Finally, the book addresses the interaction of corporate and governmental roles for providing technology infrastructure, some funding issues and mechanisms for cooperative planning and implementation.

All humans eventually die, but life expectancies differ over time and among different demographic groups. Teasing out the various causes and correlates of death is a challenge, and it is one we take on in this book. A look at the data on mortality is both interesting and suggestive of some possible relationships. In 1900 life expectancies at birth were 46. 3 and 48. 3 years for men and women respectively, a gender differential of a bit less than 5 percent. Life expectancies for whites then were about 0. 3 years longer than that of the whole population, but life expectancies for blacks were only about 33 years for men and women. At age 65, the remaining life expectancies were about 12 and 11 years for whites and blacks respectively. Fifty years later, life expectancies at birth had grown to 66 and 71 years for males and females respectively. The percentage differential between the sexes was now almost up to 10 percent. The life expectancies of whites were about one year longer than that for the entire population. The big change was for blacks, whose life expectancy had grown to over 60 years with black females living about 5 percent longer than their male counterparts. At age 65 the remaining expected life had increased about two years with much larger percentage gains for blacks.

Louis Phlips The stabilisation of primary commodity prices, and the related issue of the stabilisation of export earnings of developing countries, have traditionally been studied without reference to the futures markets (that exist or could exist) for these commodities. These futures markets have in turn been s udied in isolation. The same is true for the new developments on financial markets. Over the last few years, in particular sine the 1985 tin crisis and the October 1987 stock exchange crisis, it has become evident that there are inter actions between commodity, futures, and financial markets and that these inter actions are very important. The more so as trade on futures and financial markets has shown a spectacular increase. This volume brings together a number of recent and unpublished papers on these interactions by leading specialists (and their students). A first set of papers examines how the use of futures markets could help stabilising export earnings of developing countries and how this compares to the rather unsuccessful UNCTAD type interventions via buffer stocks, pegged prices and cartels. A second set of papers faces the fact, largely ignored in the literature, that commodity prices are determined in foreign currencies, with the result that developing countries suffer from the volatility of exchange rates of these currencies (even in cases where commodity prices are relatively stable). Financial markets are thus explicitly linked to futures and commodity markets."

First published in 1984, this title discusses the emergence of both the orthodox and political economy based approaches to underdevelopment in geography , critically assessing their strengths and weaknesses, and showing the relationship between intellectual developments and changing material conditions. The work is primarily concerned with theories, though it does contain much empirical material drawn from throughout the Third World. The book examines the emergence of theories of development historically and considers the various contemporary theoretical 'schools', both Marxist and non-Marxist. It goes on to consider four aspects of development which are of particular interest to geographers, namely the world economy, regional imbalances, the human-nature theme and the analysis of urban space, and concludes by suggesting some directions for future research.

This volume brings together academic economists and lawyers to evaluate and compare the regulation of telecommunications markets in Germany and the United States. The unifying theme in all of the pa pers is that the goal of public policy in this area should be to make the broadest and most functional competition possible by means of an ap propriate regulatory framework. Because the European and American telecommunications markets are becoming more intertwined each day, the issues addressed in this volume will be topical to the business, government, and academic communities for some time. For the chairman of the Monopoly Commission, Wernhard Moschel, the opening of the German telecommunications market has been successful in principle. This is clearly recognizable in the case of the competition in long-distance transport. Based on the view that the regulatory authority should make itself obsolete, Professor Moschel advocates an incremental review and gradual reduction of regulation."

This is a book about a well-known writer, Lewis Carroll, and about a little-known subject, the theory of voting' (from the Editors' Introduction).
This book has been edited from the manuscripts of the late Scottish economist Duncan Black. Shortly after the publication of The Theory of Committees and Elections Black started to collect material for papers and a book on Lewis Carroll's theory of proportional representation. Black's chapter plans made it clear that the book was to be in three parts, written by himself, followed by a reprint of Carroll's Principles of Parliamentary Representation and its main sources. Part I is biographical, introducing Lewis Carroll and giving relevant details of his life. Part II is Black's already published work on Lewis Carroll. Part III comprises the more detailed arguments about Carroll's reasoning, and Part IV contains reprints of rare original material on proportional representation by Carroll, James Garth Marshall, and Walter Baily. Taken together, the editors have provided a complete reference source for the theory of voting and proportional representation.

In January 2005, the German government enacted a substantial reform of the welfare system, the so-called "Hartz IV reform." This book evaluates key characteristics of the reform from a microeconometric perspective. It investigates whether a centralized or decentralized organization of welfare administration is more successful to integrate welfare recipients into employment. Moreover, it analyzes the employment effects of an intensified use of benefit sanctions and evaluates the effectiveness and efficiency of the most frequently assigned Active Labor Market Programs. The analyses have a focus on immigrants, who are highly over-represented in the German welfare system. "

This book takes readers on a unique journey across some of the most debated implications of the rise of the Chinese economy on the global scene. From the analysis, suggestions emerge on how to improve statistical tools to measure performance and to obtain more precise macroeconomic forecasts. Moreover, it confirms the suspicion that a governance model of firms that does not sufficiently encourage market competition may have significant costs in terms ofefficiency for the Chinese production system. The analysis of demographic factors and of household savings gives further support to calls for a serious reform effort, particularly of the pension and health care systems, to utilize households' savings more efficiently and equitably. Finally the analyses of Chinese and global trade underscore the need for a less superficial consideration of the implications of the Chinese presence in global markets.
"

This book covers the basic theory of how, what and when firms should produce to maximise profits. Based on the neoclassical theory of the firm presented in most general microeconomic textbooks, it extends the general treatment and focuses on the application of the theory to specific problems that the firm faces when making production decisions to maximise profits. Increasing level of government regulation and the use of specialised and often very expensive equipment in modern production motivates the following focus areas: 1) How to optimise production under restrictions., 2) Treatment of fixed inputs and the process of input fixation, 3) Optimisation of production over time, 4) Linear and Mixed Integer Programming as tools for optimisation in practice. This updated second edition includes a more comprehensive introduction to the theory of decision making under risk and uncertainty as well as a new chapter on how to use linear programming to generate the supply function of the firm.

This book introduces the main concepts of microeconomics to upper division undergraduate students or first year graduate students who have undergone at least one elementary calculus course. The book fully integrates graphical and mathematical concepts and offers over 150 analytical examples demonstrating numerical solutions.

The book has a strong theoretical basis but shows how microeconomics can be brought to bear on the real world. New Features for this edition include:

• an incorporation of the theory of stock externalities associated with greenhouse gases
• development of the section on insurance with particular reference to the new US healthcare program
• greater integration of game theoretic concepts throughout the book.

The book s style is accessible, but also rigorous. Mathematical examples are provided throughout the book, in particular for key concepts and the result is a balanced approach in terms of prose, graphics, and mathematics.

A presentation of the basic models of the most important economic agents (households, firms, the banking system etc.). The influence of ethics on the decisions of persons is discussed within the context of mutual influences of one person on another. It is shown that this leads to a Markov chain which converges to a final situation which in many cases is independent of the initial conditions. The book helps the reader to understand the interdependence of humanities and economics and how to model this interdependence in economics.

A Basic Income Guarantee (BIG) is the unconditional government-ensured guarantee that all citizens will have enough income to meet their basic needs without a work requirement. Significant questions include: Why should we adopt a BIG? Can the U.S. afford it? Why don't the current welfare programs work? Why not guarantee everyone a job? Would anyone work if his or her income were guaranteed? Has a BIG ever been tested? This book answers these questions and many more in simple, easy-to-understand language.

A Basic Income Guarantee (BIG) is the unconditional government-ensured guarantee that all citizens will have enough income to meet their basic needs without a work requirement. Significant questions include: Why should we adopt a BIG? Can the U.S. afford it? Why don't the current welfare programs work? Why not guarantee everyone a job? Would anyone work if his or her income were guaranteed? Has a BIG ever been tested? This book answers these questions and many more in simple, easy-to-understand language.

In a world of increasing financial uncertainty and growing unemployment, the macroeconomic contribution of SMEs is more important than ever. Development of a vibrant, sustainable small firm sector is dependent on sufficient resourcing of SMEs, particularly adequate capitalisation. This book provides a timely examination of SME financing and determinants of capital structure. A special feature of this book is the novel methodological approach adopted, providing an innovative perspective on SME financing. Analysis of stated financing preferences and objectives of SME owners is combined with results of statistical analysis of firm characteristics in exploring holistic explanations for observed capital structures. The uniqueness of this approach is in the contribution of data on financing preferences to supplement and contextualise results of bivariate and multivariate statistical tests. This methodology extends the SME literature, and is of interest to academics, researchers, practitioners and policy makers.

Market Power explores society and economy in medieval Iberia, examining the intersection of regional commercial interests, lordship, and royal authority as part of the evolution of a small village into a rural market town. This analysis of notarial registers from Santa Coloma de Queralt addresses significant themes in medieval history, such as the market economy, commerce and credit, and the interactions of businessmen across religious boundaries. ?

Financial Risk and Derivatives provides an excellent illustration of the links that have developed in recent years between the theory of finance on one hand and insurance economics and actuarial science on the other. Advances in contingent claims analysis and developments in the academic and practical literature dealing with the management of financial risks reflect the close relationships between insurance and innovations in finance. The book represents an overview of the present state of the art in theoretical research dealing with financial issues of significance for insurance science. It will hopefully provide an impetus to further developments in applied insurance research.

89 TABLE 5 USE OR PLANNED USE OF MAJOR ENGINES IN AIR FORCE AND NAVY AIRCRAFT a Engine Air Force Aircraft Navy Aircraft F-80, T-33, XF-92, YB-61, AJ2, F9F-7, TV-I, J-33 YB-62, F-94 (A, B), TM- T2-V, P4M-I 61 ( tactical missile) X-3, XF-88 F3D, F2H, F6U, F7U J-34 F-84 (B, C, D, E, G, H) J-35 FJ-I B-45, XB-51, XF-9J, B-36, J-47 B-47, F-86 (D, F, K) J-48 F-94C F9F J-57 B-52, YB-60, F-lOO, A3D, F4D, F8U F-I02A, F-I0l (A, B), SNARK, F-105A, F-I07, KC-135A, B-57D, X-16 F-84F, B-57 FIIF, A4D, FJ-3, J-65 FJ-4, F9F YQ-l, YQ-2, T-37 J-69 SNARK, YF-89E, B-66 J-71 F-I01, F-I02B, F-I05, J-75 F-I07 F8U, XP6M B-58, F-I04, F-IOIA (see J-79 note c, Table 4) F5D, FIIF, A3J, F4H T-34 C-133A, YC-97J, YC-12IF R7V-2 XF-84H T-40 R3Y, XFY, A2D YC-130, YC-131C T-56 Note: a Aircraft in which engine was used or was planned to be used. For at least one (and generally more) of the aircraft in the list associated with a given engine, the decision to use the engine was made when the engine was in the final stages of develop ment. (In the case of the J -57, J-79, andJ-75 this is true of nearly all the aircraft listed. ) No Jist extends beyond 1956. Summary For an engine developed independently of an airframe the de veloper may constrain the performance, weight, and size of an engine at the start."

The book is divided into three major sections. The first presents a theoretical discussion that underlies the other essays. The second section deals with privatization issues from the perspective of the United States. The third describes research addressed to the U. K. and Canada. In the first chapter, Richard Zeckbauser and Murray Horn develop a wide-ranging theoretical framework for assessing the capabilities and role of state-owned enterprises; it provides a foundation for the analyses that follow. In The Control and Perfonnance o[ State-Owned Enterprises , they describe state-owned enterprises as an extreme case of the separation of ownership and control. The focus is on management --the incentives it faces and the conflicts to which it is subjected. The distinguishing characteristics of public enterprise, the authors suggest, give it a comparative advantage over both public bureaucracy and private enterprise in certain situations. They argue that legislators are more likely to prefer SOEs over private enterprise when the efficiency of private enterprise is undermined by regulation or the tbreat of opportunistic state action, when the informational demands of subsidizing private production to meet distributional objectives are high, when it is difficult to assign property rights, or when state ownership is ideologically appealing. These considerations suggest why SOEs are usually assigned special rights and responsibilities, and they help explain observed regularities in the distribution of SOEs across countries and sectors. Zeckhauser and Horn apply principal-agent theory to identify the key factors underlying the performance of state-owned enterprises.