Productivity Gains from Offshoring: an Empirical Analysis for the Netherlands

A major question in the globalization debate is whether outsourcing and offshoring activities are beneficial to the home country. This paper investigates the effects on productivity and trade from the perspective of transaction costs, using a recent theory on trade in tasks. A production function is estimated for the Netherlands for the period 1972-2001. It suggests that the effect of offshoring manufacturing and services on total factor productivity (TFP) is positive and larger than the effect of R & D on productivity

The industrial organisation of economic policy preparation in the Netherlands

In the institutional set-up of (economic) policy preparation in the Netherlands there is ample interaction between scientific insights and policy proposals. This Dutch polder model lays much emphasis on the social dialogue to come to an agreement on, and have public support for policy proposals. It was very much the idea of Jan Tinbergen winner of the first Nobel price in economics to have a clear separation in policy preparation between (i) trying to reach consensus on the working of the economy, as formalised in econometric models; (ii) come to a compromise on policy goals between the various minority parties of the government; and (iii) rely on independent and undisputed data collection by an autonomous Central Bureau of Statistics (CBS). The aim of this separation of responsibilities is to guarantee, as much as possible, the scientific quality of policy preparation and at the same time to gain public support for policy measures so that implementation costs are kept low. This paper discusses the working of this institutional set-up, its historical background and the mechanisms of quality control and reputation which are essential for the interaction between scientific knowledge and policy preparation to remain fruitful

The Transaction Costs Perspective on Standards as a Source of Trade and Productivity Growth

This paper discusses the design, implementation and use of standards from the perspective of transaction costs economics. A proper design and implementation of standards may lead to a considerable reduction of transaction costs, which enhances trade and, consequently, economic welfare. A major example is the use of containers, which has drastically changed the worldwide transport infrastructure, and lowered the costs of transport of goods considerably. The example of containers also shows that network externalities play a major role in the use of standards, and that, on the other hand, worldwide standards with large sunk investment costs may lead to a lock-in. This may call for government intervention in the design and use of standards, and in the transition processes to new standards. The paper provides ample further examples of standards and on the role of the government, or clubs, with respect to these standards

A Cointegration Model for Search Equilibrium Wage Formation

In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective our study presents an econometric analysis of the influence of labor market flows on wage formation as alternative to the traditional specification of wage equations where unemployment represents the Phillips-curve or wage curve-effects. We estimate a dynamic wage equation for the Netherlands using a cointegration approach. We find that labor flows, and notably flows from outside the labor market, are important determinants for both short run and long run wage settin

Magnetic reconnection and current sheets in 2D and 3D magnetic configurations

Experimental results are presented on the study magnetic reconnection phenomena and current sheet formation and evolution in 2D and 3D magnetic configurations with some topological singularities: null-lines, null points, singular lines. Current sheet evolution in 2D fields with null-lines manifests qualitative agreement with principal features of flare-type phenomena. Current sheet formation was revealed to occur in various 3D magnetic configurations, both with and without isolated magnetic null-points, specifically in agnetic configurations with Xlines. Results demonstrate self-organization of current sheets to be a general process for plasma dynamics in nonuniform magnetic fields

Higgs sector and R-parity breaking couplings in models with broken U(1)_B-L gauge symmetry

Four different supersymmetric models based on SU(2)_L X U(1)_R X U(1)_B-L and SU(2)_L X SU(2)_R X U(1)_B-L gauge symmetry groups are studied. U(1)_B-L symmetry is broken spontaneously by a vacuum expectation value (VEV) of a sneutrino field. The right-handed gauge bosons may obtain their mass solely by sneutrino VEV. The physical charged lepton and neutrino are mixtures of gauginos, higgsinos and lepton interaction eigenstates. Explicit formulae for masses and mixings in the physical lepton fields are found. The spontaneous symmetry breaking mechanism fixes the trilinear R-parity breaking couplings. Only some special R-parity breaking trilinear couplings are allowed. There is a potentially large trilinear lepton number breaking coupling - which is unique to left-right models - that is proportional to the SU(2)_R gauge coupling g_R. The couplings are parametrized by few mixing angles, making the spontaneous R-parity breaking a natural ``unification framework'' for R-parity breaking couplings in SUSYLR models.Comment: 19 pages, no figures, uses REVTeX. To be published in PR

Extracting the rho-omega mixing amplitude from the pion form-factor

We re-examine and extend a recent analysis which showed that the rho-omega mixing amplitude cannot be unambiguously extracted from the pion electromagnetic form-factor in a model independent way. In particular, we focus on the argument that the extraction is sensitive to the presence of any intrinsic omega_I -> 2pi coupling. Our extended analysis confirms the original conclusion, with only minor, quantitative differences. The extracted mixing amplitude is shown to be sensitive to both the intrinsic coupling omega_I -> 2pi and to the value assumed for the mass of the neutral rho meson.Comment: 11 pages, publication details added to title pag