The beginnings of geography teaching and research in the University of Glasgow: the impact of J.W. Gregory

J.W. Gregory arrived in Glasgow from Melbourne in 1904 to take up the post of foundation Professor of Geology in the University of Glasgow. Soon after his arrival in Glasgow he began to push for the setting up of teaching in Geography in Glasgow, which came to pass in 1909 with the appointment of a Lecturer in Geography. This lecturer was based in the Department of Geology in the University's East Quad. Gregory's active promotion of Geography in the University was matched by his extensive writing in the area, in textbooks, journal articles and popular books. His prodigious output across a wide range of subject areas is variably accepted today, with much of his geomorphological work being judged as misguided to varying degrees. His 'social science' publications - in the areas of race, migration, colonisation and economic development of Africa and Australia - espouse a viewpoint that is unacceptable in the twenty-first century. Nonetheless, that viewpoint sits squarely within the social and economic traditions of Gregory's era, and he was clearly a key 'Establishment' figure in natural and social sciences research in the first half of the twentieth century. The establishment of Geography in the University of Glasgow remains enduring testimony of J.W. Gregory's energy, dedication and foresight

The dynamics of immigration policy with wealth-heterogeneous immigrants

In this paper we consider a simple intertemporal economy in which immigrants, if admitted, bring heterogeneous amounts of capital. We show that under certain conditions there is a level of immigration which maximizes the economy's capital-labor ratio, and that this level of immigration is the preferred choice of a majority of the economy's citizens. We then characterize, in an overlapping generations setting, the dynamics of capital accumulation and immigration policy, which can include multiple steady state equilibria and a sensitivity of immigration levels to changes in the economy's technology growth rate.Emigration and immigration

The dynamic impact of fundamental tax reform part 1: the basic model

The Internal Revenue Service remains unpopular, the U.S. savings rate remains low, and pressure to efficiently raise significant new tax revenues seems certain to grow once the baby boom generation reaches retirement age. Consequently, it is likely that alternatives to the current income tax system will receive substantial political and media attention in coming years. In this first of two articles on the economic impact of fundamental tax reform, Evan Koenig and Gregory Huffman describe a framework for analyzing how the adoption of a flat-rate consumption tax would affect the economy over time. Their analysis indicates that replacing the income tax with a consumption tax would have an immediate positive impact on saving and lead, in the long run, to higher levels of consumption, wages, and stock prices and to lower interest rates. In the short run, however, interest rates would probably rise, and consumption and stock prices would probably decline.Taxation

The dynamic impact of fundamental tax reform part 2 : extensions

In this second of two articles on the economic impact of fundamental tax reform, Gregory Huffman and Evan Koenig extend their earlier framework for analyzing how the adoption of a flat-rate consumption tax would affect the economy over time. They argue that if tax reform is to be successful in stimulating investment and raising long-run living standards, then it is important that ways be found to avoid increasing the rate of labor-income taxation. Increases in labor-income tax rates can undo the positive economic effects of a cut in the rate of capital-income taxation. Conversely, cuts in labor-income tax rates reinforce savings incentives and contribute to higher steady-state levels of consumption. Huffman and Koenig also demonstrate that the economy’s immediate response to tax reform is muted—and the overall adjustment process can be substantially prolonged—when firms find it expensive to add quickly to their stocks of plant and equipment.Taxation ; Tax auditing ; Tax reform

Legal effectiveness and external capital : the role of foreign debt

Previous research has documented weak, and sometimes conflicting, effects of legal quality on measures of firm debt. Using WorldScope data for 1,689 firms, as well as more detailed proprietary data for 315 firms across nine East Asian countries, the authors find that access to foreign financing appears to loosen borrowing constraints associated with poor legal systems. This helps resolve inconsistencies in prior findings and explains how legal protection is important for borrowing by firms. In particular, they find that legal effectiveness is important for determining the amount, maturity, and currency denomination of debt. The authors discuss several mechanisms by which firms can avoid the costs of poor legal systems with foreign borrowing. The paper contributes to the policy debate surrounding the importance of creditor rights for domestic lending.Municipal Financial Management,Banks&Banking Reform,Economic Theory&Research,Financial Intermediation,Environmental Economics&Policies

Exchange rate risk management : evidence from East Asia

The recent East Asian financial crisis provides a natural experiment for investigating foreign exchange risk management by nonfinancial corporations. During this period, the financial crisis exposed local firms to large depreciations in exchange rates and reduced access to foreign capital. The authors explore the exchange rate hedging practices of firms that hedged exposure to foreign debt in eight East Asian countries between 1996 and 1998. They identify and characterize East Asian companies that used foreign currency derivatives, documenting differences in size, financial characteristics, and exposure to domestic and foreign debt. They investigate the factors improtant in the use of foreign currency derivatives. Unlike studies of US firms, they find limited support for existing theories of optimal hedging. Instead, they find that firms use foreign earnings as a substitute for hedging with derivatives. And they find evidence that firms engage in"selective"hedging. They investigate the relative performance of hedgers during and after the crisis. They find no evidence that East Asian firms eliminated their foreign exchange exposure by using derivatives. Firms that used derivatives before the crisis performed just as poorly as nonhedgers during the crisis. After the crisis, firms that hedged performed somewhat better than nonhedgers, but this result appears to be explained by a larger post-crisis currency exposure for hedgers (an exchange rate risk premium), which had limited access to derivatives during this period.Payment Systems&Infrastructure,Financial Intermediation,Economic Theory&Research,Banks&Banking Reform,Environmental Economics&Policies,Banks&Banking Reform,Economic Theory&Research,Environmental Economics&Policies,Strategic Debt Management,Financial Intermediation

Industrial competitiveness of the auto parts industries in four large Asian countries : the role of government policy in a challenging international environment

Rationalization and stabilization following the Asian financial crisis of the late 1990s combined with the expansion and liberalization of regional and global trade to create significant parts industries in China, Indonesia, and the Republic of Korea. Conventional policies of stabilization and liberalization, however, cannot fully explain growth patterns. Japan and Korea grewinto major players before liberalizing trade and investment, while even after extensive liberalization Indonesia has yet to move from extensive to intensive growth. These anomalies suggest that to explain success in the auto parts industry we need to move beyond liberalization to look at policies and institutions promoting economies of scale, skill formation, quality upgrading, supplier-linkage cooperation, and innovation. In Japan, the regional and global leader, innovative assemblers led industrial development and supported key suppliers, but the government also supported diffusion of quality control techniques and new technology to small and medium enterprises, and encouraged stable employment among core employees. Korea remains weaker on both small and medium enterprise and employment fronts, but government-encouraged consolidation around a small number of business groups, an extended period of protection, and support for export promotion led to economies of scale. Liberalization of foreign investment after the financial crisis helped ameliorate the excessive statism of earlier policies and strengthened the parts industry. In China, liberalization for WTO entry, rapid expansion in demand, and strong support by local governments encouraged a wave of foreign investment in both assembly and parts. In contrast, institutional weaknesses continue to constrain development opportunities in Indonesia.Technology Industry,Economic Theory&Research,Water and Industry,Markets and Market Access,Non Bank Financial Institutions

Transition from collisionless to collisional MRI

Recent calculations by Quataert et al. (2002) found that the growth rates of the magnetorotational instability (MRI) in a collisionless plasma can differ significantly from those calculated using MHD. This can be important in hot accretion flows around compact objects. In this paper we study the transition from the collisionless kinetic regime to the collisional MHD regime, mapping out the dependence of the MRI growth rate on collisionality. A kinetic closure scheme for a magnetized plasma is used that includes the effect of collisions via a BGK operator. The transition to MHD occurs as the mean free path becomes short compared to the parallel wavelength 2\pi/k_{\Par}. In the weak magnetic field regime where the Alfv\'en and MRI frequencies $\omega$ are small compared to the sound wave frequency k_{\Par} c_0, the dynamics are still effectively collisionless even if $\omega \ll \nu$, so long as the collision frequency \nu \ll k_{\Par} c_{0}; for an accretion flow this requires \nu \lsim \Omega \sqrt{\beta}. The low collisionality regime not only modifies the MRI growth rate, but also introduces collisionless Landau or Barnes damping of long wavelength modes, which may be important for the nonlinear saturation of the MRI.Comment: 20 pages, 4 figures, submitted to ApJ with a clearer derivation of anisotropic pressure closure from drift kinetic equatio