Amplitude equations for coupled electrostatic waves in the limit of weak instability

We consider the simplest instabilities involving multiple unstable electrostatic plasma waves corresponding to four-dimensional systems of mode amplitude equations. In each case the coupled amplitude equations are derived up to third order terms. The nonlinear coefficients are singular in the limit in which the linear growth rates vanish together. These singularities are analyzed using techniques developed in previous studies of a single unstable wave. In addition to the singularities familiar from the one mode problem, there are new singularities in coefficients coupling the modes. The new singularities are most severe when the two waves have the same linear phase velocity and satisfy the spatial resonance condition $k_2=2k_1$. As a result the short wave mode saturates at a dramatically smaller amplitude than that predicted for the weak growth rate regime on the basis of single mode theory. In contrast the long wave mode retains the single mode scaling. If these resonance conditions are not satisfied both modes retain their single mode scaling and saturate at comparable amplitudes.Comment: 34 pages (Latex), no figure

Income Tax Design and the Desirability of Subsidies to Secondary Workers in a Household Model with Joint and Non-Joint Time

In this paper we analyze income tax design in a two member household labor supply model where time spent on consumption together by the two household members is valued differently from time spent apart. We treat consumption as a non excludable public good to members of the household; one example would be where all household members or one alone can watch TV. When jointly consumed, however, TV services are valued more highly than the same consumption undertaken separately. We use this model to numerically investigate the welfare implications of different tax structures. In sharp contrast to existing literature, our results suggest the desirability of subsidizing secondary worker's labor supply. We also relate our discussion to existing individual-household tax unit literature.

Border Delays and Trade Liberalization

Delays at the border for customs clearance are seemingly a central feature of the trade regime in the CIS states. Here, we argue that with queuing costs being endogenously determined in such circumstances tariff liberalization (even in the small economy case) can be welfare worsening since tariff revenues are replaced by resource using queuing costs. On the other hand, corruption can be welfare improving if queuing costs are replaced by resource transferring bribes. We also show how added distortions between perishable and non-perishable, or between light and heavy goods can also arise. We show these outcomes using a simple general equilibrium model, and explore the numerical implications using Russian data. The orders of magnitude are both significant and opposite in sign to conventional analyses.

Regeneration, Labour Supply and the Welfare Costs of Taxes

This paper sets out alternatives to the traditional model of labour supply used to analyse the welfare costs of income and/or sales taxes when preferences are defined over goods and leisure and the market wage yields the slope of the budget constraint. The innovation in our work is to assume that some or all of non market time is used to regenerate the productivity of labour through rest and relaxation. This model has no closed form solution, but we can work with the first order conditions numerically for specific functional forms using non linear solution software. We generate a number of alternative parameterizations of this model through a series of calibrations to the same synthetic base case data set. Across the resulting parameterizations the welfare costs of taxes vary substantially (by a factor of twenty fold in some counterfactual analyses), even though they all involve calibration to the same base case data and labour supply elasticity. These results thus suggest that a small and seemingly plausible departure from a standard model (even if not in closed form) that has dominated the economic literature for many years can yield substantial change for perspectives on policy interventions.

Macro-regional evaluation of the Structural Funds using the HERMIN modelling framework

The structural fund interventions play a crucial role in improving the social and economic cohesion of the EU. A particular focus of the structural funds is on those regions that lag behind to the extent that their GDP per capita is below 75 per cent of the EU average ? Objective 1 regions. In 1999 these regions accounted for 25 per cent of total EU population, and in general they are poorly endowed in a number of areas, such as infrastructure, human capital, and modern high productivity industries and services. As a consequence, they tend to have higher rates of unemployment. The amount of investment that is funded though the structural funds by the EU is substantial (?103 billion over the period 1994 to 1999 for Objective 1 regions). Given their size and significance, EU legislation requires the appraisal of the structural funds. However, while systematic monitoring and evaluation frameworks are available at the national level and at the project level, a rigorous and systematic method for quantifying the socio-economic impacts of structural fund interventions on the regional economies has not been developed to the same extent. Thus, policy-makers seldom have access to accumulated research on the macroeconomic and macro-sectoral performance at a regional (NUTS II) level, which would allow them to assess the overall impact of the structural funds. One modelling framework ? HERMIN - has been widely applied to Structural Fund analysis at the national level (Greece, Ireland, Portugal, Spain, Estonia, Latvia) and macro-regional level (East Germany and Northern Ireland). In this paper we review the theoretical foundations of this modelling approach, outline its application and highlight the results from the application of the HERMIN modelling framework to structural funds evaluation. This review will highlight not only the strengths of the approach but also the weaknesses and areas for further research. The theoretical underpinning of the HERMIN model is that of a small open economy model with a Keynesian role for domestic demand. The HERMIN framework is designed as a macroeconometric model composed of four sectors: manufacturing (a mainly traded sector), market services (a mainly non-traded sector), agriculture and government (or non-market) services. This level of disaggregation is the minimum necessary to identify the key sectoral shifts in a developing (regional) economy over the years of the Structural Funds programme. The model incorporates the mechanisms through which the Objective 1 national or regional economy is inter-connected to the external world, and most importantly it incorporates mechanisms through which the Structural Funds impact on the economy in the short and long-run. It therefore captures not only the short run Keynesian demand effects but also the long-run supply side effects.

National Hockey League guaranteed contracts: A principal agent problem impacting on performance

Purpose – This paper aims to investigate, through the lens of the principal–agent problem, the relationship between payment of National Hockey League (NHL) salaries and player performance during the period of 2005-2011 and explore the inherent issues within the NHL player compensation and incentive structure. Design/methodology/approach – The research adopts a pragmatic philosophy with deductive reasoning. This paper focuses on the NHL season 2005-2011 and undertake analysis of historical player contracts and performance data of 670 players across 29 clubs to undertake liner regression analysis. Findings – This paper quantifies potential inefficiencies of NHL league contracts and defines the parameters of the principal–agent problem. It is identifies that player performance generally increases with salary, is higher in the first year of a contract and despite decreasing over the life of the contract, will usually peak again in the final year of the contract. Research limitations/implications – The research is based around figures from 2005-2011 and secondary statistical data. The study captures quantitative data but does not allow for an exploration of the qualitative perspective to the problem. Practical implications – Entry-level or first contracts are good for all teams and players because they provide incentive to perform and a reduction of risk to the team should a player not perform to expectations. The same can be said for players at the other end of the spectrum. Although not typically used much, performance bonuses for players over the age of 35 allow clubs to “take a chance” on a player and the player can benefit by reaching attainable bonuses. These findings therefore provide contributions to the practicing managers and coaches of NHL teams who can consider the results to help shape their approach to management of players and the planning of teams and succession planning for talent. Originality/value – The paper presents a comprehensive and current perspective of the principal–agent problem in NHL and extends the work of Purcell (2009) and Gannon (2009) in understanding player performance enhancement