THE PUBLIC LIFE OF ECONOMIC INCENTIVES

Many current proposals for policy reform call for the use of economic incentives. The growing application of economic incentives in a number of policy areas necessitates continuing critical examination of the claims for and the criticisms of their use. Early empirical evidence on the implementation of incentive schemes serves to shed light on the validity of some of the supporting and opposing arguments. By continuing the assessment of the viability of economic incentives, this study reveals that incentive alternatives face obstacles to use stemming from implementation problems, but political and philosophical issues pose greater threats. Nevertheless, the use of incentives can best be defended on political and moral grounds. Political resistance can be overcome and incentives can be employed effectively, if incentive schemes are understood as fostering one form of social interaction in a mixed regime.     

SPATIAL COMPETITION WITH LOCATION-DEPENDENT COSTS*

This paper investigates the behavior of spatially-competitive firms whose costs depend on their locations. Necessary and sufficient conditions for optimum locations are derived. Comparative-statistics analysis of the equilibrium shows that the responses of firms to changes in input and output transport rates depend on the properties of consumer demand curves or are ambiguous in sign.     

Migration,Human Resource Transfers,and Development Contexts: A Logit Analysis of Venezuelan Data

This paper is concerned with the reciprocal relationship between migration and development in Third World settings. Using individual-level data for Venezuela, migration behavior is related to a person's age, educational attainment, gender, and characteristics of his/her place(s) of residence as an out-migrant, in-migrant, or stayer. Place characteristics are in terms of four groups based on employment patterns: the core, regional centers, resource frontiers, and traditional rural areas. Four questions are of concern. First, does development influence migration? All analyses indicate this is so. Second, does migration influence development? Findings are ambiguous in that places experiencing improvement in their mix of human capital lagged in the net number of persons obtained through migration whereas a gain in numbers was accompanied by deterioriation in human capital profiles. Third, was incipient polarization reversal occurring in Venezuela in the late 1960s, early 1970s? This paper departs from the usual approach by addressing this question in terms of human capital attributes instead of population aggregates. On this basis, polarization reversal is in evidence, particularly in regional centers. Finally, this study answers in the affirmative that places with different development characteristics generate migration streams differing in type, magnitude, explanation, and impact.     

In pursuit of grandeur: France,colonialism and nationalism in Africa and the South Pacific

Robert Aldrich. The French Presence in the South Pacific, 1842–1940. London, Macmillan, 1990. xii + 387 pp. A$49.95 (cloth).

Francis Terry McNamara. France in Black Africa. Washington, National Defence University, 1989. xx + 289 pp. US$8.00 (paper)

David Robie. Blood on their Banner. Nationalist Struggles in the South Pacific. Leichhardt, Pluto Press Australia, 1989. 310 pp. A$19.95 (paper).