INDEX

Aaronovitch, S. 85, 86, 88

ACAS (Advisory, Conciliation and Arbitration Service) 286, 294 accelerator theory 342-3 accountability 316

inflation target 437, 474-5 accounting/financial ratios 33-8, 42-4

accounts see financial reports acid test/quick assets ratio 36 acquisitions see mergers

Adams, Henry 515

Addison, J.

adverse selection 180 advertising 109, 111, 117, 118-19 Africa 120, 127, 609, 629, 633,

634, 636, 638

climate change 636

debt 641

foreign aid 639

age-related unemployment 481-2 ageing population 2, 335, 357, 361, 362, 601-2, 608, 613, 618

financial services 447

health care 232

agent-principal problem 47-8, 54 agglomeration economies 636 aggregate demand 11, 171, 648, 655-6

consumption 322, 336 development 639, 643 elements of 322, 339, 346, 348 inflation 465-9, 471, 473, 474

Keynesian view 322

money and monetary policy 402, 410, 416, 417, 419, 652

unemployment 487-8, 493

agriculture 518, 600, 605, 607, 609, 613

CAP (EU) 189, 541, 559, 566, 569, 573-7, 590 earnings/wages 262 foreign aid 639 genetically modified (GM) foods 558

GNP figures 630

LDCs 634

structural change 2, 3, 6, 7, 9, 22 subsidies 550, 558, 560, 573-7, 640-1

trade and development 639, 640-1

UK trade with EU 584 aid, foreign 570, 639-40 AIDS/HIV 303, 633, 635 air travel 225-7 Akerlof, G.A. 176 Al Eyd, A. 589 allocative efficiency 89, 90, 160 Alternative Investment Market (AIM) 72-3, 443 altruism 175-6 Andrade, G. 84 Andreoni, J. 176 Andrews, P.W.S. 117 Angwin, D. 97 annual reports see financial reports anti-dumping actions 550, 554, 559 anti-globalization movements 516-17, 521

APEC (Asia-Pacific Economic Cooperation) 519 apprenticeships 74, 481 arbitrage 526, 536 Ariely, D. 177

Aristotle 311 Armstrong, J.S. 55

Arrow, K. 171, 172 Arthur, W.B. 53 Arulampalam, W. 292 ASEAN (Association of South East

Asian Nations) 553 Asia 607, 625, 634, 636, 638 foreign aid 639 import formalities 558 intra-regional exports 552, 553 labour costs 520, 604, 609 multinationals 127, 130-1, 139,

142, 505, 506

SARS 517

‘Tiger’ economies 10, 127 see also China; India; Japan Asian Development Bank 605 assets

current 33

expropriation 150, 506, 636 intangible 33

liquidity 396 non-current 32, 33 stripping 84 transformation 426, 427-8 undervaluation of state 154-5 valuation ratio 84-5 asymptotic stagnancy 23 Atkinson, B.

value for money (VFM) 359 Ayres, C. 173

Babbel, D.F. 425

backward vertical integration 82 backward-linkages 22

Bacon, R. 11, 364

Bain, G.S. 276-7

Bain, J.S. 117 Bakhshi, H. 464 balance of payments 11, 22, 23-4,

149, 604, 609, 661

capital flows 142, 532, 536-7 crisis 612

exchange rate 11, 526-7, 530-2, 534, 535, 536-7, 544

foreign aid 639

LDCs 642, 643 multinationals 142, 532 national saving 335 newly industrializing economies

550

North Sea oil 11, 534

post ‘credit crunch’ 648, 649, 650, 652, 654, 655

public expenditure 364, 365

UK trade with EU 579-80 balance sheet 33-6 Balassa, B. 557

Banerjee, R. 331

Bank of England 330, 404-5, 406, 407, 416, 653

divisions of 435-6

exchange rate 436, 437, 527, 537, 582, 649

independence 416-17, 436-7

inflation target 404, 410, 411, 412, 416-17, 435, 437, 460, 474-5, 647

investment spending model 342, 343

last resort lender 435, 456, 658

MPC 416-17, 435, 437, 443-4, 460, 474-5, 647, 651 purposes of 434-5

regulation transferred to FSA 437-8

sterling wholesale money markets 413-14, 435, 436, 440, 443-4

techniques of monetary policy 412-14

banks 121, 365, 406, 428, 608, 613, 617, 634

2007/08 banking crisis 76, 428-9, 450, 451, 452, 454-6

asset transformation 427-8

Basel Accords 449-51, 455, 456 Big Bang (1986) 405 capital adequacy 158, 437-8, 449-51, 455 central see separate entry changing UK banking market

406, 444-54 collective bargaining 285 deflation 418 deposit guarantee 158 diversification 451-2 euromarkets 441-2 foreign currency exposure

438 investment: criticism of 344-5 liquidity 427, 436, 438, 440,

443-4, 455, 456 mergers and acquisitions 428,

433, 452-4 money markets 413-14, 436,

439-41, 443-4, 455, 456 regulation 158, 437-8, 439, 444,

446, 449-51, 455, 456 retail 428-9, 430, 446-8, 451-2 savings ratio and 331 SMEs and 72, 75-6 techniques of monetary policy

412-14

wholesale 429

Bannock, G.

Barkema, H.G. 53 barometric-firm leadership 121

Barrel, R. 344

Barrett, R. 483 barriers to entry 117-19, 120

Barro, R. 465, 506, 635 Bartelsman, E. 625 barter economy 394-6, 657

Barwell, R. 482

Basel Accords 449-51, 455, 456 Batini, N. 331

Baumol, W.J. 23, 48, 54, 55 Bean, C. 492, 493

Bebchuk, L. 81

Becker, G. 171, 176 behavioural theories 49-50, 59 Bell, D. 515

Benito, A. 333

Bentham, J. 311

Bergman, M.A. 573 Berle, A.A. 51

Berry, S. 331, 334 Bevan, Aneurin 243

Bhaskar, V. 113

‘Big Mac’ index 539, 540 bilateral agreements 641

Birch, D.L. 70

Bird, R.M. 361

‘black’ economy 383, 656-7

Black, J. 502

Blanchard, D. 493

Blanchflower, D.G. 277, 293 Bloom, N. 129, 344, 346, 347 Blundell, R. 390

Boettke, P.J. 174

Boland, L.A. 167

Bond, S. 344 bonds 403, 413, 436, 442-3 Booth, D.I. 121 borrowers see loans

Bosworth, B. 625

Bourdon, E. 55

box diagram 168-9

Bradshaw, J. 267 brands 84-5, 109, 110, 111,

118, 447

Brazil 142, 509, 553, 558, 595,

618-19, 638, 640 background 609 competitiveness 613, 614 demographic and sociocultural

factors 609, 613-14

Doha round 550

economic context 612

environment 199, 204 exchange rate 539 global financial crisis 613 industrial policy 612-13 role of state 609-12

taxation 539

Break, G. 378, 379

Bretton Woods system 527, 543-4,

649

Briault, C. 464, 465

BRIC economies 594-621

see also Brazil; China; India;

Russia

Broadberry, S. 18

brokerage 426-7, 447

Brown, C.V. 360, 378, 379

Brown, Gordon 207, 416, 436-7

Brown, W. 276

Brundtland Report 626, 627

Bryson, A. 276, 277, 278, 293 Buffett, Warren 175 building societies 330, 405, 406,

427, 428, 429-30 cost/income ratios 446, 451 demutualization 430-3

Bunn, P. 344

bus deregulation 211, 224-5, 227 Bush, George H.W. 519

Bush, George W. 304, 519, 520

business angels 72

Butcher, T. 290, 292

Butler, R.A. 647

Buzzel, R. 56

Cadbury, Adrian 313

Cairncross, A.

Cairns group 558

Cambridge Economic Policy Group (CEPG) 365, 650, 654-5

Cameron, G. 15

capital

equipment 11

equity 72-3, 76, 91, 599

loan 71, 72, 76, 91, 103, 599 marginal efficiency of (MEC) 641 markets 149, 150, 155, 342, 344-5, 426, 442-3, 613, 617

SMEs 71, 72-3, 76

see also investment

capital stock adjustment model 343 ‘capture’ of regulator 156 Caribbean 634

Carruth, A. 277, 343 cars 3, 200, 211, 213-15, 227,

306, 308

road congestion 215-22 cartels 119-20, 446, 573 Carvel, J. 240 cash flow statement 38

Catao, L. 330

Catinat, M. 343

Caves, R.E. 16

CBI (Confederation of British Industry) 278

CEFTA (Central European Free Trade Agreement) 553 central banks 408-9, 449, 535,

582, 586, 634

Bank of England see separate entry

Brazilian Central Bank 613

Bundesbank 537, 582

Central Bank of Russia 617 credibility 410-12

ECB se e European Central Bank

Federal Reserve Bank 417, 419, 474

independence 474-5

Reserve Bank of India 604-5 techniques of monetary policy 412-14

certificates of deposit 397, 441 CET (Common External Tariff) 556 Chamberlain, N. 287, 293 Chambers of Commerce 74 charitable status 181 cheques 394 child benefit 360, 390 child labour 303, 559 child poverty 266-8 Child Tax Credit (CTC) 389, 390 China 130, 139, 509, 550, 595, 618-19, 630, 633, 640 anti-dumping action 559, 560 background 597-9 competitiveness 494, 604, 609 consumption and savings 333, 597, 600, 661

corruption 635 demographic and sociocultural factors 597, 601-4 economic context 599-601 environment 195, 199, 204, 309 exchange rate 537, 539, 558, 600 foreign exchange reserves 600, 601

GDP 597, 600, 601 global economic crisis 601 guanxi 177 import formalities 558 Internet 506 role of state 599 SARS 516 savings rate 604, 661 chlorofluorocarbons (CFCs) 199, 201

Chrystal, K. 465 Churchill, Winston 566 Chzhen, Y. 390 circular flow analysis environment 188-9

City Code on Takeovers and Mergers 96

Clark, T.

classical unemployment 487 Claugue, C. 506, 635 Clegg, H. 284 climate change 201-2, 308, 636

Climate Change Levy 207 co-operative solutions 203-4 Copenhagen Accord 204 Kyoto Protocol 203, 204, 304 policy implications 206-7 Stern Report 202-3, 222 targets 202-3, 204-6

Clinton, Bill 175, 519, 520-1 closed shop 280, 293 coal 3-4, 6, 7, 149-50, 154, 484 coalitions and goal formation

49-50

Coase, R. 167, 198

Coats, D. 493

Cochrane, Archie 248 codes of conduct 306, 312-14 Cohen, D. 263

Collard, D. 175 collateralized debt obligations

(CDOs) 659 collective bargaining 262, 272, 276,

278, 279, 280 effects of 292-4 structure of 284-6 wage determination 286-8

Collins, S. 625

Collor de Mello, Fernando 611 collusion 86, 116-21, 122 COMESA (Common Market for

Eastern and Southern Africa)

553

commercial bills 397, 440 commercial paper 441 common markets 552 commonality and lateral integration

83

Commons, J.R. 173 Community Charge (poll tax) 384,

386-7, 388 competition law 86, 90-1, 92-3 European Union 83, 97-9,

154, 566, 573

United Kingdom 93-7, 119-20 United States 99-102

competition/competitiveness 380,

443, 493, 494, 570 banks 406, 430, 446-8, 451 BRICs 604, 608-9, 613, 614,

618

corporate strategic models 509 dynamic capabilities view 306 EU Emissions Trading Scheme

(ETS) 198 exchange rate 529, 534, 537, 613 health care 181, 239

competition/competitiveness

(continued)

local businesses 509

low-wage 10, 520, 559, 604 market power theory and mergers 85-6

price and market structure 57-8 privatization 153

productivity and 604, 625-6 public sector: contracting out and tendering 359

small firms 68-9

structural change 3, 10, 11, 19-20, 21, 24

trade unions 287, 295

transport 211, 216, 223, 224-5 see also oligopoly; protectionism complementarity 3 concentration ratios 108-9 confiscation 150, 506, 636 conglomerate merger 82-3, 102 construction industry 2 Consumer Price Index (CPI) 416, 437, 460, 461, 462, 474, 540-1

consumerism 447 consumer(s)

choice 364

CSR 308, 316

globalization and 134, 509, 513 interests and nationalized industries 152

patient as 240-1 consumption 321-31, 335-6, 487, 649, 660-1

China 333, 597, 600, 661 consumer surplus 89, 90-1, 158-60, 555, 556

deflation 418

foreign aid 639

India 607-8

investment and 339

Keynesian view 322-6 post-Keynesian theories 326, 327-31

rational expectations and 329-30 windfall gains and 330-1 contingency theory of firm behaviour 50

contract curve 169 Conyon, M.J.

corporate strategy globalization 507-12

corruption 506, 639 index 635

Cosh, A.D. 70, 75, 88 cost of capital 16, 342, 343, 344 cost-benefit appraisal/analysis environment 193, 202 multinationals 139-44, 145 costs

air travel 226 exchange rate and domestic 649-50

exporting vs producing overseas 134-5

financial services 433, 447-8, 450, 455

labour see costs under labour marginal see separate entry multinationals: cost-oriented 130, 135

opportunity 155, 230, 247, 395, 408, 464

production 2, 133, 402-3, 467, 485, 511, 534, 649 reduction in 2, 133-4, 138 regulation 157 road congestion 216-18 transaction 167, 182, 428, 506, 636, 638

see also public expenditure Cottrell, D. 361

Council Tax 370, 384, 386, 387-8 Cournot duopoly model 110 Cowe, R. 206

Cowling, K. 86, 87 credit 430, 432

conditions 331, 333, 612 risk: banks 449-50, 455 credit cards 394, 397

‘credit crunch’ see global economic crisis

credit rating agencies 302, 308, 355, 663

criminality 515

Croucher, S. 502

crowding out 11-12, 155, 364, 365-6, 467, 652

Cubbin, J. 118

Cully, M. 285

cultural

characteristics 513, 602-3, 608, 614, 618

dissonance 142

institutions 174, 175

‘shared’ spaces 513

US dominance 519-21

Cummins, J.G. 342, 344

Curran, J. 64

currency see exchange rates current account deficit 23, 520, 537, 539, 558, 600

current ratio 36

customs unions 552, 553, 554

Cyert, R.M. 49-50

Czinkota, M. 502

Daguerre, A. 494

Davies, S. 16

Dawson, D.A. 378 de Boer, W. 15, 16 de-merging 55-6, 102-3

Debreu, G. 171, 172 deflation 416, 417-19 deindustrialization 21-2, 23-4, 364, 541

Delors, Jacques 584

Delphi method 193 demand 11, 109, 111, 166, 410, 608

aggregate se e separate entry barrier to entry: inelastic 117 CSR 303, 316-17 currency 526-7, 530-1 environment 191-2 health care 178-9, 181, 234, 242-3, 250

inflation 465-9, 470, 471, 473, 474

demand (continued)

kinked 110, 112-13, 122 labour 286, 287, 293 unemployment 485, 487-8, 490, 491, 492, 493, 496 money 399-400, 403, 416 skills 378

structural change 2, 10, 11, 21, 23, 24

transport 211, 213-15, 218-21, 224, 227

demographics see population Deng Xiaoping 599

Denison, E.F. 624 deposit guarantee 158 depreciation

accounts 33, 38, 339 currency see devaluation investment 339, 345-6 deregulation 103, 150, 158-61, 326, 409, 509, 607

bus 211, 224-5, 227 financial intermediaries 430 design

modularity in (MID) 511 devaluation/depreciation 495, 534, 613, 617, 649-50, 654

Bretton Woods system 543, 544 consumer prices 540-1 exports and imports 495, 529, 649

IMF precondition 642 inflation 475

‘J’ curve effect 532 Marshall-Lerner elasticity 531-2 protectionism 561 quantitative easing 539 single currency 590

UK and ERM 545, 582, 650 development

climate change 204, 636 debt 641-3

foreign aid 639-40

GNP (gross national product) per head 630-2

Human Development Index (HDI) 614, 631-3 less developed countries see separate entry productivity and growth 625-6 sustainable 516-17, 626-30 targets 636, 637 theories of economic growth 623-5

trade 551, 552, 557, 560, 575,

640-1

urbanization 636-9

Devereux, M. 344

Dicken, P. 503

Dickens, R. 291

Dilnot, A.W. 378, 379 directors 33, 81, 88, 91 see also management disability 219, 247, 387, 389, 482,

494 discounting 190, 193, 202,

341-2

disease control 515-16 disintermediation 413, 415, 421,

441, 446, 454

Disney, R. 277 diversification 82-3, 102, 152-3,

432

banks 451-2

economy 613, 617

urbanization 638

dividends 155, 345, 433, 442 dividend yield 44

Divisia Index 406-7, 409 divisional corporate structure 134 Doha round 550, 553, 559, 560-1,

640-1

Dollar, D. 640

Domberger, S. 113, 118 dominant-firm leadership 121 Dorfman, R. and N. 635 Dougherty, C. 15-16 Draca, M. 291 Driver, C. 343 dumping 550, 554, 559

social 285

Dunford, M. 578

Dunning, J.H. 137 dynamic capabilities view 306

E-money 397-8 earnings per share (EPS) 92 earnings/wages 176, 241-2, 254,

257-9, 268, 473

classical unemployment 487 executive remuneration 53-4, 88,

304, 314-15, 316 explanation of distribution of 261-3 insider-outsider hypothesis 493 national minimum wage 268, 282, 288-92, 295, 382, 494 by occupational and skill level 259, 262-3, 378 performance-related pay 279 prices and 276-7, 292, 401, 418, 465-6, 467, 468-9, 471, 490, 495

qualifications and 261, 262, 482 recessions 495

segmented markets 262-3 by sex 259-60, 263, 290 target and feasible real wage 490-1, 493

trade unions and 262, 272, 285, 286-8, 292-3, 467, 487, 489, 490, 493, 495, 656 trends 260

unskilled and low skills 259, 262-3, 481

economic union 552, 553 economies of scale 58, 69, 70, 77, 117, 138

banks 451

European Union 566, 583 exports vs producing overseas 134-5

health care 180-1, 182, 234 mergers 82, 83, 87-8, 89, 90, 91, 92, 98, 454

money 395, 396 natural monopoly 149 price warfare 111 productivity 18 risk management 427 economies of scope 454 Edgeworth, F. 167 Edgeworth-Bowley box 168-9 education and training 12, 16-17, 355, 362, 389, 493, 642 attainment 632

BRICs 600, 601, 604, 608, 613, 617

earnings distribution 261, 262 efficiency 657-8

endogenous growth theory (EGT) 625

knowledge-based economies 515 qualifications and unemployment 482, 483

Skills Funding Agency 74

SMEs 74, 77

United States 521

education and training (continued) universities 151, 482

Young People’s Learning Agency 74, 658

Edwards, S. 640 efficiency

economic 89, 90, 159-60 markets, prices and 168-72, 175 environment 206

investment and 347-8

privatization 152

public expenditure 359

transport 218, 220, 223 electricity 149, 154, 157, 205-6, 330, 605

electronic money 397-8 Elliot, D. 86

Elsheikh, F. 276, 277

Elster, J. 176

Eltis, W. 11, 364 employers 277-9, 288 employment 398, 399, 403, 466,

650, 654, 655, 656

banks 451

BRICs 599, 607, 616

collective bargaining: wages and 286-7

currency depreciation 532 earnings/wages see separate entry employee protection 263, 281, 282, 284

European Union 569, 579, 586 exchange rate 541

free trade 549

full 468, 647, 652

knowledge-based economies 514-15

LDCs and debt 642, 643

multinationals 128, 139, 142-3, 505, 520

National Health Service 241-2

nationalized industries 148, 149, 150, 152

privatization 154

public sector 284, 359, 364, 650

regulation of privatized companies 156

share schemes 388

SMEs 70

see also labour; trade unions

EMS (European Monetary System) 580-3, 590

ERM 20, 415-16, 527, 537, 545, 581, 582-3, 650, 651

EMU (European Economic and Monetary Union) 545, 570, 584

advantages 514, 589-90

Ceccini Report 584-6 convergence 354, 356, 587, 588 disadvantages 590

euro 406, 553, 586, 590

growth and stability pact 587-9 endogenous growth theory (EGT) 625 entrepreneurship 64-5, 493, 613, 617, 625

environment 149, 187-209, 558, 600, 618, 619

climate change see separate entry

CSR 306, 307-9

European Union 196-8, 200-1, 205, 207, 304, 308, 577 gross national product (GNP) 189-90, 631

Index of Sustainable Economic Welfare (ISEW) 189-90

LDCs 634-5, 636 market-based incentives

194-200, 201, 206-7, 208 non-market-based incentives 200-1, 206, 207, 208, 211 polluter pays principle 195 pressure groups 509 role of 188-9 social optimum 190-1, 201-2 sufferer pays principle 199 total economic value 193-4 transport 200, 205-6, 211, 306 valuation 190-4, 202, 207, 208 equities/shares 332, 342, 433-4, 442, 443, 657

CSR and price 304, 308 demutualization 430 dividend yield 44 employees 388

FT data on price 40-2, 43 price/earnings (P/E) ratio 42-4 Etherington, D. 494 ethics see corporate social responsibility ethnic unemployment 482 euromarkets 441-2

European Central Bank (ECB) 580, 585, 586, 587, 589, 590, 663

inflation 412, 463, 474 European Investment Bank (EIB) 72 European Investment Fund (EIF) 76 European Union 127, 503, 552, 553, 564-93, 590, 600, 609 anti-dumping action 559, 560 banks 158, 437-8 budget 568-72, 577 commercial and industrial policy 556, 583-4

Common Agricultural Policy (CAP) 189, 541, 559, 566, 569, 573-7, 590 competition law 83, 97-9, 154, 566, 573

corporate governance 316 Emissions Trading Scheme (ETS) 196-8, 207

environment 196-8, 200-1, 205, 207, 304, 308, 577

European Economic and Monetary Union see EMU

European Monetary System see EMS

finance and EU budget 568-72, 577

genetically modified (GM) foods 558

gold standard 542 historical background 565-8 labour costs 604 mergers and acquisitions 83, 92,

96, 97-9, 103 monetary policy 580-3, 587, 589, 590

multinationals 125, 142, 143, 505 price index 463

public sector contracts 559 regional policy 76, 569-70, 577-9, 590

SMEs 66-7, 68, 76, 77 social partners 274, 283-4 social policy 76, 281, 283-4, 569-70, 579, 590 sovereign debt ratings 663 structural change 3, 485 tax rates 144 trade and development 640-1 trade disputes 550, 551 trade policy 554, 557, 559, 579-80

trade sanctions 560

UK and EU budget 571-2

UK trade with 579-80, 583-4, 590

United States 519, 558, 560

Evers, B. 642

exchange controls 414-15, 532, 558, 607

Exchange Rate Mechanism (ERM) 20, 415-16, 527, 537, 545, 581, 582-3, 650, 651 exchange rates 436, 437, 474,

525- 47

Bretton Woods 527, 543-4, 649 BRICs 600, 604, 609, 612, 613, 614, 616-17, 618 competitiveness 529, 534, 537, 613

currency manipulation/ ‘warfare’ 537-40, 558 definitions 527-9 determination 529-37 devaluation/depreciation see separate entry

economic policy and 11, 540-2, 649-50, 651, 652, 654, 655 effective (EER) 527, 529, 533-4 exchange controls 414-15, 532, 558, 607

floating 532, 534, 544-5, 649 foreign exchange market 436,

526- 7, 613

forward rate 526, 536 gold standard 542-3 international control of 514 ‘law of one price’ 534, 541-2 LDCs 642

manipulation? warfare’

537-40, 558

Marshall-Lerner elasticity 531-2, 544

money supply 398, 399, 535-6

nominal 527, 528-9 overvaluation 539-40 petro-currency 3, 534, 536 real (RER) 527-8, 529, 540 regional trading 553 spot rate 526, 536 state autonomy 514 structural change 3, 10-11, 19-20

supply and demand 526-7, 530-1

targeting 409-10, 415-16 undervaluation 539-40 ‘warfare’/manipulation 537-40, 558

see also EMS; EMU

exports 70-1, 126, 127, 128, 551, 557, 649, 650,

652

BRICs 595, 600, 601, 607, 609, 613, 614, 617

environmental standards 558 formalities 558

global economic crisis 601, 607, 613

intra-regional 553

LDCs 634, 641, 642, 643 producing overseas vs 134-5 sanitation and health 638-9 structural change 10, 23-4 subsidies 558, 574, 575, 640 taxation 613

UK trade with EU 579, 590 United States 518 see also exchange rates expropriation/confiscation 150, 506, 636

externalities

CSR 300, 309 environment 190, 195, 309 GNP figures 631 multinationals 141 nationalization 149, 153-4 regulation 157 taxation 149, 385 transport 211, 216-18

Ezzamel, M. 53

Faccini, R. 495

Facebook 506 fair trade 303, 308, 560

Fehr, E. 176, 177

Fiegehen, G.C. 378

Fields, D. 378, 379 financial institutions and services

424-58

banks se e separate entry changing UK banking market 406, 444-54

financial intermediaries 425-6

Bank of England see separate entry

role of 426-8

UK 428-34

financial markets 155, 426,

438-43, 520 investment 344-5 multinationals 128 oligopoly 108 privatizations 155 role of financial system 425-6

structural change 2, 5, 7, 13-14,24

UK banking collapse 454-6 financial ratios 33-8, 42-4 financial reports, corporate 31-45, 316

auditors’ report 40, 42 balance sheet 33-6 business review 32-3, 40 cash flow statement 38 directors’ report 33 income statement 36-8 notes 40, 41 ratio analysis 33-8, 42-4 statement of changes in equity 38-40

terminology 32

Financial Services Authority (FSA) 96, 97, 437-8

Finegold, D. 17

firm

economies 82, 83, 87, 89

new start-ups 511 objectives see separate entry first-mover advantages 116 Firth, M. 88 fiscal drag 372-3 fiscal policy 604-5, 612, 648, 650, 651-3, 654, 662

exchange rate 530, 531 inflation 463, 467, 469, 473 unemployment 463, 496 see also public expenditure; taxation

fiscal rules 355-6, 364, 648,

655

EMU: growth and stability pact 587-9

Fisher, C. 307 Fisher, I. 341 flat tax 379-80 Flemming, J. 378 flexibility

labour 278, 279, 282, 347-8 reducing unemployment 493, 494, 495

Theil’s flexible targets approach 653 flexicurity 494 Ford, R. 343 forecasts

public expenditure 357-9

transport 215, 225 foreign aid 570, 639-40 foreign currency deposits 406 foreign direct investment (FDI) 125, 126, 127, 128, 129, 138, 139

balance of payments 142

BRICs 600, 601, 607, 609, 613, 617-18

corruption 506, 635 economic welfare 140-1 employment 142-3 global economic crisis 601 globalization 504-5 industrial structure 143 mergers and acquisitions 609 SEZs in China 600 taxation 143-4

technology transfer 141-2 foreign exchange

controls 414-15, 532, 558, 607

market 436, 526-7, 613 reserves 527, 537, 543, 581, 600, 601, 608, 616, 649 see also exchange rates forestry 195, 199, 309 Forth, J. 276, 278, 293 forward vertical integration 82 forward-linkages 22 Francesconi, M. 390 franchising 509 free riding 199-200, 276, 293 free trade 519, 549-51, 554, 560-1

regional 552, 553, 554 Freeman, R.E. 50, 297, 300 frictional unemployment 470-1, 484, 489

Fried, J. 81 Friedman, M. 300, 307, 311, 317, 327-8, 329, 359, 409, 463, 470, 471, 488, 660

FT (Financial Times) indices 40-2, 43, 304

FTAA (Free Trade Area of the Americas) 519 Fukuyama, F. 174 futures 526

G20 539

Gachter, S. 176

Galbraith, J. 173, 491

Gale, B. 56

game theory 110, 113-16, 175, 176, 199-200

Gates, Bill 175

GATS (General Agreement on Trade in Services) 551

GATT (General Agreement on Tariffs and Trade) 91, 519, 550-1, 554, 559-60, 568, 575, 584, 604, 650

‘gazelles’ 65

GDP (gross domestic product) 127, 128, 495, 515,

647

BRICs 597, 600, 601, 609 climate change 203, 636 European Union 579 growth in trade 551 inflation 465, 473 nationalized industries 148, 150 protectionism 560 ratio of PSNCR to 356 ratio of public debt to 354,

356

gearing ratio 33-5, 36, 91 gender 263, 275, 276, 388-9,

481

earnings 259-60, 263, 290 genetically modified (GM) foods 558

Gennard, J. 284

Geroski, P. 276, 280

Gershuny, J. 515

Ghosn, Carlos 502

Giddens, A. 512

gift giving and trust 175-6, 177-8

Gillman, M. 465

gilt repos 413, 414, 444

gilts 413, 436, 442-3

Gini coefficient 255-7

Girma, S. 141, 143

global economic crisis

BRICs 601, 607-8, 613, 616, 617-18

consumption and savings 325, 331

‘credit crunch’ 352, 354-5, 559, 561, 658-60 fiscal tightening in UK 363-4 global budgetary problems 355, 661-2

recovery scenarios 558, 608,

660- 1

stimulus packages 362, 601, 617, 662

European Union 589 global warming see climate change globalization 92, 128, 443, 494, 501-24

advances in enabling technologies 133-4, 135, 514-15 anti-globalization movements 516-17, 521

characteristics of 502-4

consumers 134, 509, 513 corporate strategy 507-12, 521 definitions 502

dimensions of 512-16

indexes of 506-7, 508 indicators of 504-7

investment 343-4, 348

United States and 517-21

Glyn, A. 502

GNP (gross national product) 189-90, 630-2

Godbout, J.T. 176

going concern convention 33 Golbe, D.L. 85 gold standard 542-3 golden rule 354, 355, 356 Gomez-Meija, L.R. 53 goods sector 2

see also primary sector; secondary sector Goodwin, P.B. 215 Gort, M. 84 Gosling, A. 261, 262, 263 Gottschalk, S. 589 governance

benefits of good 505, 635-6 corporate 313-16

LDCs 635

government 166, 171, 428-9

BRICs 599, 604-5, 609-12, 614-16

exchange rate 527 globalization and nation state 503, 512-14, 515, 521

industrial policy 154

industrial relations 277-8, 279-84

large firms 69 government (continued) nationalization 148-50 neoclassical economics 172-3 PSNCR see separate entry public expenditure see separate entry savings 333 securities 365, 397, 413, 436, 439, 440, 442-3, 444, 456, 464

SMEs 71-2, 73-5 statelessness 145 taxation se e separate entry transport policy 222-5 Treasury 435, 437, 438 grants see subsidies and grants Green, K.C. 55 Greenaway, D. 550 Greenhalgh, C. 22, 23 greenhouse gases see climate change Gregg, P. 88, 287 Gribbin, J.D. 86 Griffiths, A. 57, 257, 359, 362 Griffiths, J. 448 Grimes, A. 465 gross domestic fixed capital formation (GDFCF) 339-46 gross profit margin 37 growth as corporate goal 48-9, 55-6, 59, 88 growth, economic 69, 244, 437, 566, 641, 647, 650, 652

BRICs 597, 601, 604, 609, 612, 616, 617, 618 crowding out 364 foreign aid 639-40 inflation 465, 475 investment and 346, 347-8, 597 large firms 69 political stability 506, 635 productivity and 514, 625-6 property rights 506, 635 prospects 22-3 tax burden and 374 theories of 623-5

guanxi 177

Hackworth, C. 495

Hall, M.J.B. 437

Hall, R.E. 330

Hall, R.L. 112

Hamilton, Walter 173

Handler, H. 364

Hannah, L. 70

Harris, M. 465

Harris, R. 142

Hawkins, K. 276

Hayek, F. von 174, 175

Heal, G. 304

health

non-tariff barriers 558

sanitation, urbanization and 638-9

health care 2, 229-52, 355, 361, 362, 521

administrative costs 182, 241 BRICs 600, 601, 604, 613, 617, 642

consumer patient 240-1 cost-minimization 247 cost-utility 248-9

economic evaluation 246-9 evidence-based medicine 248-9 health economics, health and 230-5

inequalities, health 235-8 internal market 178-82, 239 market forces 150-1 organization of NHS 178-82, 238-45

output estimates 244-5 prioritization/rationing 181, 245-6, 250

productivity in NHS 243-4

Quality Adjusted Life Years (QALYs) 249

staff in NHS 241-2

substituting factors of production 242-3

welfare economics - Pareto 245-6

Heasman, D. 290 hedging 526, 536 hedonic price method (HPM) 192 Held, D. 502, 506

Herfindahl-Hirschman Index 95, 100-2

Hicks, J. 175

Hill, C. 502

Hills, J. 267

Hitch, C.J. 112

HIV/AIDS 303, 633, 635 Hodgson, G.M. 168, 173, 174 Hof, A. 202

Hofstede, G. 602, 608, 614, 618

Hooley, G. 52

horizontal integration 81-2, 91, 95, 98, 126, 138

market-oriented multinationals

130-1, 132, 134-5, 142 Hornby, W. 52 households 292, 608

expenditure 2, 213, 227, 638

inflation 460-2

poverty 265, 266

savings 331-5

taxation 371-2, 380-3, 386, 387-8

housing 2, 362, 654, 657

consumption and savings 332, 333-4

investment 340-1, 600, 601,

607-8

price premium 192 sub-prime market in US 455, 456, 658, 659-60

Hu Angang 516

Hu Jintao 600

Hughes, A. 70, 75

Human Development Index (HDI) 614, 631-3

human rights 284, 303, 512 hyperglobalists 512-13, 521 hyperinflation 396, 612 hypothecation 386 hysteresis 492-3, 495, 496

ICT 14, 16, 133, 506-7, 509, 514-15, 607

ILO (International Labour Office) 479

import controls 650, 654-5

see also protectionism income and income distribution

254-7, 268

definition of income 255 earnings distribution 259-63, 378

factors of production 257-9 health status 237, 238 inequality 255-7, 262, 264, 268, 292, 578, 597, 614, 618, 631, 634, 640

inflation 463, 464

income and income distribution

(continued)

interest rates 331

international comparisons 257 issues in distribution 254

justice 254

LDCs 634, 640, 642

poverty see separate entry transport 213, 220 income statement 36-8 incomes policy 277, 293, 463, 474, 642, 649

Index of Sustainable Economic

Welfare (ISEW) 189-90 India 130, 139, 509, 595, 618-19, 633, 640

anti-dumping action 559 background 604 competitiveness 494, 608-9 corruption 635

demographic and sociocultural factors 608

Doha round 550

economic context 605-7 environment 199, 204 foreign aid 639 global economic crisis 607-8 Internet 506

non-trade barriers 558 role of state 604-5

Individual Savings Accounts (ISAs) 388, 447

industrial relations

employers 277-9, 288 government 277-8, 279-84 nationalization 149-50, 280 trade unions se e separate entry industry 2, 3, 9, 205, 509, 517, 550, 600, 612-13 deindustrialization 21-2, 23-4, 364, 541

European Union 556, 583-4 structure and multinationals 143 inequality 516, 569, 613

globalization 513

health 235-8

income 255-7, 262, 264, 268, 292, 578, 597, 614, 618, 631, 634, 640

wealth 264, 268 inflation 11, 24, 220, 264, 335, 396, 459-77, 532

BRICs 612, 616, 617

central bank independence 474-5 collective bargaining 292 consumption and savings 333 definition 460

economic theory 465-72, 652, 653, 655

European Union 463, 577, 582, 583, 586, 587

exchange rate 474, 529, 532, 533, 534, 535, 540-2, 544-5, 650 growth, economic 465, 475 measurement of 460-3

money supply and see under money supply

policy objective: low 463-5 public expenditure 365 targeting 404, 410, 411, 412, 416-17, 435, 437, 460, 474-5, 647

UK: 1970-92 473-4 unemployment 411, 412, 463, 468-72, 488, 490, 491, 492, 493, 495, 496, 650 information

asymmetric 157, 158, 181, 506, 636

‘capture’ of regulator 156 corporate se e financial reports on customers 510 employees 150

financial services 158, 447, 448 globalization 506-7

health care 241

imperfect 84, 172-3, 411-12 job market 484 knowledge-based economies 514-15

pollution 201

quasi-markets 180

urbanization economies 638

Ingham, A. 204, 205, 206

Ingham, H. 86, 87 innovation 6, 612, 613, 617, 625 corporate growth 56 corporate strategic models 509- 10 disincentive to 16

globalization 509-10

grants 72

large firms 69, 70 manufacturing sector 22 multinationals 133

process 2

SMEs 70, 72

transport 225

insider dealing 96-7 insider-outsider hypothesis 493 institutional shareholders 51-2,

150, 154-5, 433-4 institutionalist perspectives on

markets 173-82

Austrian School 174-5 gift giving and trust 175-6, 177-8

irrationality 177 pluralism 176-7 quasi-markets 178-82 institutions and neoclassical

economists 167-8, 173 insurance companies 91, 150, 428,

433-4, 446, 515, 634 intellectual property rights 550, 600 inter-bank market 440-1, 455, 456 interest rates 355, 446, 650, 651,

652, 653 consumption and savings 331,

333, 649

European Union 582, 583, 586,

587, 590 exchange rate 527, 530, 535,

536, 537 inflation 464, 467, 474, 475, 612 investment and 341-2, 344, 348,

365

LDCs 642

money 398, 399, 403, 409-10,

413-14, 648-9

MPC 416-17, 435, 437, 443-4,

460, 474-5, 647, 651 sterling money market 435, 436 structural change 11-12, 18 unemployment 492 zero bound 418-19 intergenerational

equity 627, 628 immobility 261-2 motives 194

transfers 176, 334 internal market, NHS 178-82, 239 International Accounting Standard

(IAS) 16 38

International Development Targets

(IDTs) 636, 637 International Financial Reporting

Standards 32

International Monetary Fund (IMF) 346, 503, 514, 517, 539-40, 595, 612, 641, 642, 643

Bretton Woods system 543-4,

649

internationalization 71, 502, 503 see also globalization

Internet 71, 133, 152, 153, 447, 506, 507, 509, 510, 514 financial services 447, 448 health 241

transport 219, 226

intra-generational equity 627, 628 intra-regional trade 551-4 inventory turnover ratio 35 investment 11, 142, 338-50, 365, 532, 534

BRICs 597, 600, 605, 607-8, 613, 617

climate for 506, 617, 625, 636 deflation 418-19

environment 204

foreign aid 639 golden rule 354, 355, 356 gross domestic fixed capital formation (GDFCF) 339-46 importance of 346-8 inflation target 437

LDCs 641

national saving 335, 520 nationalization 148, 150 nature of 339

privatizations 152, 155, 340 productivity and 15-16, 21, 22, 348

taxation 11, 344, 345, 377, 384, 388, 447, 657

trade-off between objectives 650 uncertainty and 344, 626 investment banks 454-5 investment trust companies 91, 428, 434, 446

irrationality 177

Jackson, P.M. 360

Japan 418, 419, 454, 558, 660 health 234

investment 342, 345, 346, 347 multinationals 125, 128, 131, 137-8, 139, 142, 143, 505 oligopoly 120

sovereign debt rating 663 structural change 3, 9 unemployment 484, 494, 495 Jenkinson, T. 345

Jensen, M.C. 53

Jevons, W. 167

Jobber, D. 52

Jobseeker’s Allowance (JSA) 389,

480

Johnson, P. 261

Jorgenson, D.W. 15-16

Joseph, Keith 364

Jovanovich, B. 84

Joyce, R. 268

Judge, G. 284

junk bonds 103, 660

‘just-in-time’ (‘kanban’) 142, 509 justice 254

Kaldor, N. 365, 584

Kaletsky, A. 515

Kant, I. 311

Kay, J.A. 70

Keeble, D. 70, 71

Kell, M. 378, 379

Kennedy, M. 343

Ketels, C. 345

Kets de Vries, M. 65

Keynes, J.M. 322-4, 341, 377, 398,

403, 478, 487

King, Mervyn 333, 475 kinked-demand curve 110, 112-13,

122

Knight, F. 64 knowledge-based economies 514-15 Kobrin, S.J. 506

Koeva, P. 346

KOF Index of Globalization 507,

508

Kolm, S.-C. 176

Kraay, A. 626, 640

Kramer, M. 304-5, 306, 317 Krugman, P. 600

Kuehn, D.A. 85

Kumar, M.S. 88

Kuznets, S. 327, 346

labour

costs 10, 19-21, 130, 135, 142, 579, 656

BRICs 595, 600, 604, 608-9, 614, 618

exchange rate 541-2 flexibility 278, 279, 282, 347-8, 493, 494, 495 productivity 12-15, 18, 22, 244, 418, 514, 604, 618, 634

crowding out 364

investment 348

skills 16-18 unemployment 485-7, 491, 492, 493, 495 relative unit labour costs (RULC) 19-21, 529, 604, 609, 634

normalized 533, 534 standards 492, 559 substituting factors of production 242-3 supply 2, 286, 345, 488-90,

495

efficiency, training and 657-8

US 518, 519, 520 see also employment; trade unions

Laffer curve 379-80

Lam, K. 291

Lambrecht, B.M. 87

Larner, R.J. 51

lateral integration 83 Latin America 520, 551, 553, 634, 638-9

Brazil see separate entry

IMF stabilization policies 642 Mercosur 553, 609 multinationals 127, 142 see also South America

Laudicina, P. 506

Lawson, Nigel 545 Layard, R. 490, 656

Leahy, J. 51

Leech, D. 51

Leeson, P. 174

leisure consumption 377 less developed countries (LDCs) 10, 362, 629, 636

debt 641-3

definition 633

foreign aid 639-40

GNP figures 630-1 major features of 633-5

leveraged buyouts 103

Levin, E. 378

Levine, P. 85

LFAs (less favoured areas) 576

life cycle

hypothesis (LCH) 328-9, 331, 333

product 56-7, 131-3, 506, 636 life expectancy 232-5, 236, 250, 447, 618, 632 limit-pricing 117-19 Lindbeck, A. 493

Lipsey, R.E. 506, 635

Lipsey, R.G. 465 liquidity 396, 397

banks 427, 436, 438, 440, 443-4, 455, 456

consumption and saving 330-1, 333, 336

ratios 36

transformation 427

Livingstone, Ken 219

Llewellyn, D. 447, 455

Lloyd, P.J. 554

loans 599, 607-8

lenders and borrowers 418, 425-6, 427, 446

mergers and acquisitions 91, 103

SMEs 71, 72, 76 localization economies 638 locked-in market 53 London 216, 219, 220

financial centre 429, 435, 438, 439, 443

foreign exchange market 438, 526

Stock Exchange 72-3, 434, 443 Lopes, P.S. 155

Lorenz curve 255-7

Lovell, A. 307 loyalty cards 111, 447

Lula da Silva, Luiz Inacio 611-12 Lyssiotou, P. 383

Maastricht Treaty 281, 566, 583

EMU 566, 585-6, 587, 588

McClelland, D.C. 64

McCormick, B. 343

McGrew, A. 512

Machin, S. 276, 287, 292

Machlup, F. 515

McKay, S. 282, 284

McKenzie, G. 158

Major, John 582

Malthus, Thomas 623-4 management 278-9, 288 by objectives (MBO) 49 executive remuneration 53-4, 88, 304, 314-15, 316 hierarchies 510 mergers and acquisitions 454 nationalized industries 152 objectives of firms 47-9, 50, 51-2, 53-4, 59, 88 principal-agent problem 47-8, 54

privatization 152-3 productivity and performance of 18-19

see also earnings management buyouts (MBOs) 85 managing global economy: post ‘credit crunch’ 646-66 global budgetary problems 355,

661- 2

instruments of policy 648-51 objectives of policy 647-8, 650, 651

problems in 650-1 recovery scenarios 558, 608,

660- 1

sovereign debt ratings 662, 663 sovereign wealth funds (SWFs)

662- 3

stimulus packages 362, 601, 617, 662

structured investment vehicles (SIVs) 658-60 sub-prime market 608, 658, 659-60

theory of economic policy 651-8 Managing for Value (MFV) 57 Manning, A. 291 Manson, S. 91 manufacturing 108, 262, 595, 604, 607, 609

BRICs 595, 604, 607, 609, 618 exchange rate 541-2 exports and SMEs 71 financial services 447 innovation 22

investment 342, 343, 345, 348 multinationals 127, 128, 129, 141-2, 143

productivity 14-15, 22-3, 244 structural change see separate entry

subsidies 573

trade unions 276

UK trade with EU 579-80, 583-4, 590

March, J.G. 49-50

marginal costs 109, 248 allocative efficiency 89 pollution/damage 190-1, 194-5, 201-2, 203-4, 205-6 road transport congestion 216-18, 220

marginal efficiency of capital (MEC) 641

marginal efficiency of investment (MEI) 341-2, 344

marginal productivity theory 286 marginal utility 246

Marginson, P. 285

market(s)

capital 149, 150, 155, 342, 344-5, 426, 442-3, 613, 617

classical perspective 165-7 environment 194-200, 201, 206-7, 208

failure 157-8, 167, 171, 172, 181, 191, 361, 634, 648 financial 155, 426, 438-43, 520 imperfections in LDCs 634 institutionalist perspectives 173-82

internal or quasi 178-82, 239 market-oriented multinationals

130-1, 132, 134-5, 137, 142

money see markets under money neoclassical perspective 167-72, 175

power theory and mergers 85-6, 87, 454

prices, economic efficiency and 168-72, 175

segmented labour 262-3 size and return on investment 56

Marris, R. 48, 55, 59, 88

Marshall, Alfred 242 Marshall-Lerner elasticity 531-2, 544

Marx, Karl 167, 173, 258-9 Mason, G. 17

maturity stage 9-10

Maunder, P. 121

maximizing goals

firms 47-9, 50-6, 57-8, 59, 88, 117, 118, 161, 485

Meadows, D.H. 626 Means, G.C. 51, 173 Meeks, G. 70, 88 Meier, S. 176, 177 Menger, C. 173, 174, 175 Mercosur 553, 609 Meredith, G.G. 64 mergers and acquisitions 48, 53, 54, 56, 59, 69, 70, 80-106, 609

banks 428, 433, 452-4, 456 booms in 91-2 building societies 432, 433 control of 90-1, 92-102, 573, 600

corporate restructuring 102-3 definitions 81, 454 economic theory and 83-9 foreign takeovers of UK companies 139, 141 privatization 152, 155 public interest and 89-91, 93, 157 types of 81-3

Messere, K. 374-5 Metcalf, D. 277, 293 methodological individualism 167 mezzanine finance 103 Michalopoulos, M. 557 Middle East 551, 629 Middleton, S. 390

Mill, J.S. 166 millennium development goals (MDGs) 636, 637

Minford, P. 277, 379, 656 minimum wage 268, 282, 288-92, 295, 382, 494 mining 607, 612, 635 structural change 3-4, 6, 7 Mises, L. von 174 Mitchell, W. 173

Modigliani, F. 327, 328, 329 modular strategies 511-12 monetary approach to exchange rate determination 535-6 monetary policy 435, 465, 530-1, 648-9, 651-4, 652, 662 central bank credibility 410-12 currency-related conflicts 539 European Union 465, 580-3, 587, 589, 590 rules vs discretion 408-9 savings ratio 330 targets 409-10 exchange rate 409-10, 415-16 inflation 404, 410, 411, 412, 416-17, 435, 437, 460, 474-5, 647

monetary 409, 655

techniques of 412-14

UK since 1950s 414-20, 473 (un)employment 411, 412, 463, 468, 469, 496, 650 Monetary Policy Committee (MPC) 416-17, 435, 437, 443-4, 460, 474-5, 647, 651 money

base 413

broad and narrow 401-2, 404-6, 409

Divisia Index 406-7, 409 functions of 394-8 importance of 398-404 Keynesian view of 398-9, 403-4, 414, 649

M0 415

M3 415

M4 401-2, 404, 406, 407, 419 markets 413-14, 435, 436, 439-41, 443-4, 455, 456, 535, 634

monetarist view of 398, 399-404, 419, 649, 655 nature of 394

neoclassical view 398 quantity theory of 399, 401-3, 409

money supply 394, 398, 648-9, 650

exchange rate 398, 399, 535-6 inflation 394, 398-404, 405, 409, 467, 468, 469, 471, 473, 474, 655

multiplier 407-8, 419

process 407-8 quantitative easing 355, 363,

365, 417, 419-20, 421, 539, 662

Monnet, Jean 566 monopoly 109, 157, 166, 493

bilateral 288

buyer 243, 288, 289 deregulation 160-1 free trade 549-50 natural 149, 153

NHS internal market 182

price and market structure 57-8 small firms 68-9

vertical integration 82 monopsony 243, 288, 289 Morrison, J. 512 Mosley, P. 653, 654 most-favoured nation (MFN) 551 Mueller, D.C. 83, 176

Multi-Fibre Agreement (MFA) 557 multilateralism 521, 554 multinational enterprises (MNEs) 57, 144-5, 517, 532, 595, 601

collective bargaining 285 cost-benefit appraisal 139-44, 145

CSR 302, 308

deep integration 503

definition 125-6

developing countries 635 hyperglobalists 512-13 importance of 126-8 motives for becoming 130-8 ‘pauper labour argument’ in US 520

protectionism 560

statelessness 145, 520 structural change 3, 21 transnationality index 125-6, 128, 138, 505

UK economy and 128-9, 138-44 Murphy, K.J. 53

Myck, M. 390

Naastepad, C. 491

NAFTA (North American Free Trade Agreement) 503, 519, 553, 554

NAIRU (non-accelerating inflation rate of unemployment) 472, 488, 490-1, 492, 493, 496 national debt 354-5, 356, 587, 589, 612, 616, 661-2 development and 641-3 sovereign debt ratings 662, 663 National Health Service see health

care

National Insurance contributions 178, 369, 370, 371, 389 national minimum wage 268, 282, 288-92, 295, 382, 494 nationalization 148-50 natural monopolies 149, 153

Nelson, E. 474

neoclassical economics 176, 177,

286, 655

growth theory 624-5 institutions 167-8, 173 markets 167-8, 175

economic efficiency, prices and 168-72

state 172-3

New Deal programme 389, 479 Newbery, D.M. 218

Newbold, A. 70, 85, 86, 87 newly industrializing countries 127,

550, 551, 557, 599, 600 Next Steps Agencies 359 NHS see health care

Nickell, S. 293, 345, 481, 491-2,

656

Nicolitsas, D. 345

Nikolov, K. 474

Nixon, Richard 544

Nixxon, R. 642 non-governmental organizations

(NGOs) 302, 306, 312, 505, 514, 516 non-maximizing goals firms 49-50, 56-7, 58, 59 NHS internal market 181

non-price competition 111-13, 114, 118, 122

non-tariff barriers 554, 556-9 case for and against 559-60

Nordhaus, W. 202

North America 127, 551 intra-regional exports 552, 553 NAFTA 503, 519, 553, 554 United States see separate entry

North, D.C. 167

North Sea oil and gas 377 exchange rates 3, 10-11, 533,

534, 545

structural change 3-4, 5, 6, 7,

10-11, 23

Northern Rock 429, 455-6, 658 NRU (natural rate of unemployment) 466, 470-1, 472, 488-90

Nyman, S. 51

Oakey, R.P. 70

Obama, Barack 519, 520 objectives of firms 46-51, 59,

88, 89

importance of 50-1

market structure, price and

57-9

maximizing 47-9, 50-6, 57-8, 59, 88, 117, 118, 161, 485

non-maximizing 49-50, 56-7, 58, 59, 181

Obstfeld, M. 600

O’Doherty, R. 194

OECD (Organization for Economic Cooperation and Development) 195, 257, 316, 362, 493-4, 539 protectionism 560

OFT (Office of Fair Trading) 157 cartels 119

mergers and acquisitions 94, 95-6, 99

privatizations 156

oil and gas 204

BRICS 609, 617, 619

exchange rate 3, 10-11, 533, 534, 545

inflation 467, 470, 473, 475 multinationals 130 oligopoly 110, 118, 120 structural change 2, 3-4, 5, 6, 7, 10-11, 23

taxation 377

unemployment 492 oligopoly 107-23

collusive 116-21, 122 definition and measurement

108-9

game theory 110, 113-16 non-collusive 110-12, 122 price stability 111, 112-13,

114

Oliner, S.D. 343

O’Mahony, M. 15, 16, 18

OPEC (Organization of Petroleum Exporting Countries) 3, 120, 467, 534

operating profit margin 37 operating ratios 35-6 Oppenheimer, P. 378 opportunity costs 155, 230, 247, 395, 408, 464

options 526

Osler, C.L. 342

Oulton, N. 16

outsourcing 511, 512

paradox of thrift 334

Parente, S. 630

Paretian Welfare Economics 245-6

Pareto efficiency in consumption and prices 170-1

Pareto optimal resource allocation 168-9, 171, 175

Pareto, V. 167, 245

Parker, D. 154

Parkin, M. 465

patents 117, 550

Peacock, A. 362

Pearce, D. 194

Pearce, D.W. 628, 629

Peel, D. 656

Pelletier, J. 277

Peltier, S. 87

Pen, J. 254, 256

pension 259

contracted-out 389

funds 51, 150, 332, 333, 428, 433-4

corporate pension schemes 33, 334, 344

state 357, 362, 389, 447 performance-related pay 279 permanent income hypothesis (PIH) 327-8, 329, 330, 331 Personal Equity Plans (PEPs) 447 Peters, T. 55-6

Petrick, J. 306

Phelps, E.S. 470, 492

Phillips, A.W. 469

plant economies 82, 87, 89

Plato 311

policy co-ordination groups 505 politics 148, 282, 437, 651 sovereignty 139, 143, 513, 520, 642

pollution see environment population

ageing se e separate entry

BRICs 597, 601-2, 604, 608, 609, 613, 617, 618 financial services 447 health care 232

LDCs 633 natural resources and 623-4 regional trading 553 savings ratio and age 333 social security 357 United States 517-18

Poret, P. 343

Porter, M. 304-5, 306, 317, 345, 346

portfolio balance approach 536-7 portfolio planning 56-7, 59 postal services 153

poverty 254, 481, 612, 614, 616 definition 264-5, 633 incidence of 265-8, 634 trap 380-2, 383, 384, 390

Prahalad, C.K. 507, 509

Prais, S.J. 70, 87

Prasad, E.S. 262 preference shares 442

Prescott, E. 630 preventative expenditure 193

Price, D. de Solla 515

Price, R. 276-7 price/earnings (P/E) ratio 42-4 price(s)

allocative efficiency 89

caps 156, 160, 161 cost reductions and 485 discrimination 180

economic efficiency, markets and 168-72, 175

environment 190, 191, 207 equilibrium 166

exchange rate 529

firm objective and 50-1, 57-9 houses 192

leadership 121 marginal cost 181 market 166

monopoly, pure 109

NHS internal market 180-1 oligopoly 110-11, 112-14, 116, 117-22

perfect competition 109

shadow 190, 191 stability 111, 112-13, 114, 647,

650

threat of asset expropriation 506,

636

transfer 143-4

wages and 276-7, 292, 401, 418, 465-6, 467, 468-9, 471, 490, 495

warfare 110-12, 122

prices and incomes policy 463, 649,

651

primary sector 2, 3-4, 6, 7, 22 Primo Braga, C.A. 554 principal-agent problem 47-8, 54 prisoner’s dilemma 114

private finance initiative (PFI) 150, 223, 359

privatization 103, 127, 150-1, 161, 340, 360, 509, 642

Brazil 612

case against 153-5

case for 151-3, 359

China 509, 599 deregulation 158-61 reasons for nationalization

148-50

regulation of privatized companies 155-8, 160, 161

trade unions 276, 277, 284 transport 211, 225, 227 producer surplus 89, 90, 158-60, 555, 556-7 product

differentiation 111, 117, 118, 532

life cycle 56-7, 131-3, 506,

636

market 287

quality 532

standards 553, 558 production industries 2, 5 productive efficiency 89, 90, 159-60

productivity 348, 364, 418, 474, 604, 609, 612, 618

frictional unemployment 484 growth and 625-6 investment and 15-16, 21, 22, 348

knowledge-based economies 514 LDCs 634, 635

modular strategies 511 multinationals 126, 141 National Health Service 243-4 process innovation 2 property rights 506, 635 structural change 2, 10, 12-21, 22-3, 24

trade and development 640 trade unions 287-8, 292, 294 unemployment 485-7, 490, 491, 492, 493, 495

United States 521

profit

CSR 303-4, 308, 309 investment 343-4 long-term vs short-term 53 and loss account see income statement

margin 37

maximization 47-8, 50-1, 52-4,

57-8, 59, 117, 118, 161, 485

mergers and acquisitions 86,

87-8, 89 NHS internal market 181 property rights 167, 506, 550, 600,

635

environment 197, 198-200 protectionism 543, 554-6, 560-1, 640-1

case for 559-60 criticism of 560 non-tariff barriers 554, 556-60 tariffs see separate entry United States 518-19, 520 Proudman, J. 15 Prusa, T.J. 554 PSNCR (public sector net cash requirement) (previously PSBR) 152, 155, 354, 356, 365, 370, 415, 648 public expenditure 329, 340, 351-67, 599, 600, 601 fiscal tightening to 2014/15

363-4

global budgetary problems 355,

661- 2

golden rule 354, 355, 356 growth of 360-2 international comparisons 362-4 LDCs 639, 642 opportunity cost 230, 247 planning, monitoring and control

356-9

public debt rule 356 restrictions 364-5 size of 359-60 total managed expenditure (TME) 352-4, 359-60 trends in UK 352 see also health care public goods 157, 176, 361 public interest

mergers and 89-91, 93, 157 nationalization 149

theory and deregulation 158-60 public limited companies (plcs) 32,

47, 88 public sector 599 cash limits 649 contracts and tenders 359, 559 crowding out 11-12, 364,

365-6, 652 employment 284, 359, 364, 650 public sector (continued) investment 340-1 nationalization 148-50 pay 642, 649 pensions 460, 462 structural change 2, 5, 10, 11-12, 23

trade unions 275, 276, 277, 285, 292

transport 211, 223, 227 public-private partnerships

private finance initiative (PFI) 150, 223, 359

purchasing power parity (PPP) basket of goods and PPPs 630, 633

‘Big Mac’ index 539, 540 exchange rate 532-4, 535

Putin, Vladimir 614, 616 quality

circles 142, 279, 509

product 532 transport 222-3

Quality Adjusted Life Years

(QALYs) 249

quantitative easing 355, 363, 365, 417, 419-20, 421, 539, 662 quantity theory of money 399, 401-3, 409

quasi-markets 178-82, 239 quick assets ratio 36

Quinn, J. 306

quotas 556-7, 560

Ramaswamy, R. 330 rates system 386 ratios

banks: capital 449-51, 456 capital/labour 293 concentration 108-9 financial intermediaries: cost/ income 446, 451 financial reports 33-8 gearing 33-5, 36, 91 male/female wage 260 mergers and valuation 84-5 old age dependency 362, 608, 613, 618

price/earnings (P/E) 42-4

PSNCR to GDP 356

public debt to GDP 354, 356 public spending 359-60, 365

Ravenscraft, D.J. 86, 87, 88 Reading, Brian 380

Reagan, Ronald 520 recession 5, 347, 356, 513, 648, 662

banking crises 450, 660 consumption 325, 326, 327, 328 deficit spending in 493 hysteresis 493

investment 341

start of 1980s 4, 5, 325, 495 start of 1990s 22, 276, 325, 326, 335-6, 340, 362, 370, 478, 495, 583

starting 2007/8 57, 76, 109, 291, 325, 334, 362, 363, 416, 559

Brazil 613

China 601

health care 234 unemployment 234, 478, 481, 483, 488, 494-5 wage premium 293 see also managing global economy: post ‘credit crunch’ 646-66

reciprocity 176

Reddaway, W.B. 378

Reed, H. 261

Reeves, R. 86, 88, 103 regional policy, EU 76, 569-70, 577-9, 590

regional trading arrangements (RTAs) 506, 513, 519-20, 521, 552-4

regulation 96-7, 330 banking sector 158, 437-8, 439, 444, 446, 449-51, 455, 456 employee protection 263, 281, 282, 284

environment 200-1, 206, 207, 208, 211

privatized companies 155-8, 160, 161

trade unions 280-1, 282-3, 293 transport 219, 222-3, 224 Reinert, K.A. 554 relative unit labour costs (RULC) 19-21, 529, 604, 609, 634 normalized 533, 534

religion 512, 608 replacement cost 193 repos 413, 414, 444 Rescher, D. 515 research and development (R & D) 69, 70, 493, 570, 613, 617, 625

crowding out 364 grants 72 multinationals 126, 139 skilled labour shortages 345 tax credit 344

resource(s) 395 availability 3

CSR: misuse of scarce 306-7 markets, prices and economic efficiency 168-72, 175 misallocation of 181, 404, 418, 463, 464, 465, 560 natural environment 188, 189 Paretian Welfare Economics 245-6

transport 223-4 restructuring, corporate 102-3

see also mergers and acquisitions Retail Price Index (RPI) 460-1, 462, 540-1, 649 return on assets (ROA) 38 return on capital employed (ROCE) 38

return on investment 56, 537 Rhodes-Kroopf, M. 84 Ricardo, D. 166, 549 Richard, D. 64

Richardson, D. 267 Rider, M. 515

Ridley, N. 151 Riley, J. 277 Riley, R. 344

Rio Declaration on Environment and Development (1992) 626-7

Rio + 10 conference 627 risk

banks: credit, market and operational 449-50 management 302-3, 308, 316, 427

Roach, Stephen 516 Robinson, C. 142 Rousseau, P. 84

Rowntree, S. 264-5

Rowthorn, R.E. 10

RPIX 416, 437, 463, 474

RPIY 463

rules of origin 142

Russia 204, 454, 539, 595, 618-19

background 614

competitiveness 618 demographic and sociocultural factors 617, 618

economic context 616-17

global economic crisis 616, 617-18

role of state 614-16 safety standards 558

sales revenue

maximization 48, 50-1, 54-5, 59 mergers and growth of 88 sanitation 605

health, urbanization and 638-9

Santomero, A.M. 425

Sarbanes-Oxley Act 2002 316

Sarel, M. 465

SARS (Severe Acute Respiratory Syndrome) 516

satisficing 49, 653-4

Savill, B. 97

savings and savings ratio 322, 323, 330, 331-6, 600, 608, 660-1

China 604, 661 taxation 329, 333, 377, 384,

388, 447

Sawyer, M. 86, 88

Scherer, F.M. 86, 87, 88

Schmalensee, R. 59

Schmidt, K.M. 176

Schoenberg, R. 86, 88, 103

Schuman, Robert 566

Schumpeter, J. 64, 69, 70, 174, 625

Schwartz, G. 155

secondary sector 2, 4-5, 7 securitization 446, 455, 456, 658-60

self-employment 68, 257, 258, 268, 275, 276, 339, 657

September 11th 2001 (9/11) 515 services 139, 262, 509, 560

BRICs 595, 604, 605, 607, 618

structural change 2, 5, 7-9, 10, 11-12, 23-4

trade unions 275, 276

UK trade with EU 579-80, 584

Shackle, G. 64 Shand, A. 167, 174, 175 shareholders 81, 307, 316, 442

employees 152

institutional 51-2, 150, 154-5, 433-4

mergers and value 86 multinationals 144 nationalization 150, 152 objectives of firms 47-9, 50, 51-2, 53-4, 59

principal-agent problem 47-8, 54

privatization 154-5 shares see equities Shipley, D.D. 52, 53, 55 Shleifer, A. 84 short-termism 155, 345 Siebert, W. 280, 293 Silberston, A. 51 Simon, H.A. 49, 50 Singh, A. 23, 70, 85, 88 Sisson, K. 285 slave labour 559 small to medium sized enterprises (SMEs) 63-79, 76-7, 612, 613

definition of 65-7 entrepreneurship 64-5 European Union 66-7, 68, 76 ICT 514-15

importance of 67-8 measures to help 71-6 mergers 88 neglect of 68-9 renewed interest in 70-1 Smith, Adam 109, 121, 165-7, 175, 254, 503

Snower, D. 493 social class 237-8 social movements 513 soft law 627 Solow, R.M. 624 solus agreements 118 South America 552, 641

Brazil see separate entry

Mercosur 553, 609

see also Latin America sovereign debt ratings 662, 663 sovereign wealth funds (SWFs)

662- 3

sovereignty 139, 143, 513, 520,

642

speculation 403, 436, 526, 534, 537, 590

Srinivasan, T.N. 554 stability

political 506, 552, 635 price 111, 112-13, 114, 647, 650

Stackleberg reaction-curve model 110

stagflation 467, 468, 473 stakeholders 50, 300, 302, 311 Stanbury, W. 378, 379 standards of living 268, 516-17,

521, 632, 641, 647

Stanworth, J. 64 state see government statelessness 145 statement of changes in equity

38-40

statement of financial position/ balance sheet 33-6

Steedman, H. 17

Stern, Robert 560

Stern Report (climate change) 202-3, 222

Stewart, G. 90, 157

Stewart, K. 267

Stewart, M. 292

Stigler, G. 113

Stiglitz, J. 560

Storey, D. 53, 77

Storm, S. 491

strategy/strategic

alliances 509 business units (SBUs) 56 decision-making 57 direction and CSR 304-6 globalization and corporate 507-12, 521

planning and sales revenue 55, 59

role of coal industry 154 strikes 280-1, 288, 294, 295 structural change 1-27, 409, 584 causes of 9-21

consequences of 21-4 employment 2, 3, 7-9, 10-11,

14, 20, 21, 22, 484-5 structure defined 2 structural unemployment 470-1,

484-5, 489, 490 structured investment vehicles (SIVs) 658-60 sub-prime market 455, 456, 608, 658, 659-60 subsidies and grants 149, 154, 550, 557-8, 560, 599 companies and cross-subsidies 111

cross-subsidies 111, 149, 180, 447

education and learning 74 European Union 76, 97, 550, 558, 569-70, 573, 577-9 CAP 541, 559, 566, 569, 573-7, 590

external or social benefits 149 multinationals 143

SMEs 71-2, 74, 76 trade and development 640-1 transport 220, 223, 225 wages 389

substitution 3, 24

Summers, L. 493

Sumner, M. 344 supermarkets 2, 244, 447 supply 2, 24, 166, 277, 352, 416, 655-8

aggregate 171, 410, 465-9, 473, 655-6

currency 526-7, 530-1 health care 178-9, 181, 239 inflation 465-72, 473, 475 investment 346

labour see under labour money see money supply privatization 151-2 shocks 410, 418, 473 taxation 379, 657 transport 218, 221-2, 227 supply chain 509 surplus

consumer 89, 90-1, 555, 556 producer 89, 90, 158-60, 555, 556-7

survival 57 sustainability 304, 309 sustainable development 309, 516-17, 626-30 sustainable economic welfare 189-90

Swaffield, J. 291, 292 swaps 526

Sweezy, P. 112 synergy 56, 87, 636 tacit collusion 121 takeovers see mergers targets

climate change 202-3, 204-6 development 636, 657 money se e under monetary policy tariffs 91, 517, 554-6, 600, 612, 640-1, 650

case for and against 559-60 European Union 566, 568, 574-5, 583, 584

exchange rate 533, 537 multinationals 134, 135, 560 retaliation 560

United States 519, 520 see also free trade

tax credits 389-90

taxation 11, 149, 230, 307, 368-91, 604, 613 administrative costs 385, 387,

388

avoidance and evasion 379, 380,

383, 656-7

Brazil 613

consumption and savings 329, 333 direct vs indirect 383-5, 390 dividends 345

environmental 194-5, 206-7, 219, 221

exchange rate appreciation 539 fiscal tightening to 2014/15 363-4

flat tax 379-80

incentives to work 365, 374-5, 377-83, 384-5, 390, 656, 657

inflation 11, 372-3, 464 inheritance 264

international comparisons: tax burden 374-7

investment 11, 344, 345, 377,

384, 388, 447, 657

LDCs 642

level of 373-83, 390

loan interest 91 method of collection 369-70 multinationals 143-4, 560 par tax rate 655 pattern of UK 371-7 poverty trap 380-2, 383, 384, 390

progressive, proportional or regressive 371-2, 373, 377, 384, 385, 390, 569

Community Charge 387 Council Tax 388 rates 386 rate of 371, 373, 374-7, 379,

655, 657 reclassification 360 reform 385-90 regional trading 553 SEZs in China 600 SMEs 73-4 tax base 370-1 unemployment 491-2, 493, 494,

656

trap 382-3, 384, 390, 656 unified budget 357 VAT see value added tax

te Velde, D.W. 141

teamwork 279 technology (and high technology

industries) 149, 153, 509, 600, 607, 612, 613 earnings/wages 262-3 endogenous growth theory 625 exchange rate 533, 534 financial institutions and markets

443, 446, 447-8 food production 624 health care 234, 241, 250 ICT 14, 16, 133, 506-7, 509,

514-15, 607 knowledge-based economies

514-15

LDCs 635

multinationals 128, 131-3, 141,

143

oligopoly 111, 112, 120 productivity 244 protectionism 559 regulation of privatized

companies 157

SMEs 69, 70, 72 structural change 2, 14, 16, 21,

22, 23 sustainability and 629-30 trade unions 276 transfer 129, 141-2, 600, 601 unemployment 485-7, 489, 492,

493, 494

Teece, D. 306

Teh, R. 554

Temple, P. 344

terrorism 515

tertiary sector 2, 5, 7-9, 10

see also services

Tevlin, S. 342, 343, 345 Thatcher, M. 148, 151, 239

Theil, H. 653

Third World see less developed countries

Thomas, R. 315

time inconsistency 408 Timmons, J.A. 65 Tinbergen, J. 651-3 Tiplady, R. 502

Titmuss, R.M. 176

total factor productivity (TFP) 2, 12, 18, 348, 485-7, 514, 625

Townsend, P. 265

trade

development and 551, 552, 557, 560, 575, 640-1

disputes 550, 551, 558, 560 diversion effect 554

free 519, 549-51, 552, 553, 554, 560-1

good governance 636 protectionism see separate entry world economy and 551-4 trade payables ratio 35-6 trade receivables ratio 35 trade unions 263, 656, 657

change and 24, 274-8, 495 collective bargaining 262, 272, 276, 278, 279, 280, 284-8, 292-4

earnings/wages and 262, 272, 285, 286-8, 292-3, 467, 487, 489, 490, 493, 495, 656

inflation 467, 468

political funds 282

privatization 152

statutory recognition 282-3 structural change 24

types of 272-4

unemployment 276, 277, 487, 489, 490, 491, 492, 493, 495, 656

tradeable permits 195-8, 201, 204,

207 trademarks 550 transaction costs 167, 182, 428,

506, 636, 638 transfer pricing 143-4 transformationalists 513, 521 transition economies 465, 509 transnational corporations see multinational enterprises transnationality index 125-6, 128, 138, 505

transparency 306, 316, 506 monetary policy 410, 411-12, 416, 474

Transparency International (TI) 635 transport 210-28, 617

airlines 225-7

bus deregulation 211, 224-5, 227

characteristics of 211-13 demand for 213-15 deregulation 159 environment 200, 205-6, 211, 306

government policy 222-5 investment 16, 223 parking restrictions 220-1 road congestion 215-22 road network 221-2 road user charging 218-20, 227 subsidies 220, 223, 225 workplace parking 221 travel cost method (TCM) 192 Treasury bills 365, 397, 413, 436, 439, 440, 444, 456 triple bottom line 306 TRIPS Agreement 550, 551 Trivedi, K. 344 trust and gift giving 175-6, 177-8 Turner, K. 194 Turner, P. 342 Tzannatos, Z. 263

Ulph, A. 204, 205, 206 uncertainty 202, 215, 278, 456, 506, 636

avoidance 602-4, 608, 614, 618 consumption and savings 325, 329, 331-2, 336

inflation 464

investment 344, 626 productivity and policy 626 under-employment in LDCs 633-4 unemployment 11, 22, 24, 394, 403-4, 478-98, 577, 653 age-related 481-2 economic theory 365, 484-8 ethnic 482

exchange rate target 410 framework 466, 488-91 free trade 549 gender and 481 health care 234

inflation 411, 412, 463, 468-72, 488, 490, 491, 492, 493, 495, 496, 650

intergenerational immobility 262 international comparisons 483-4, 491-2, 493-5

LDCs 633-4

measurement of 479-80 New Deal programme 389, 479 OECD countries 491-2, 493-4 persistence and hysteresis 492-3, 495, 496

privatization 154 qualifications and 482, 483 recession from 2007/8 234, 478, 481, 483, 488, 494-5 reducing 493-4 regional 480-1

trade unions 276, 277, 487, 489,

490, 491, 492, 493, 495, 656

trap 382-3, 384, 390, 656 United Kingdom 389, 479-83,

491, 492, 494, 495, 647, 650, 654, 656-7

Uniform Business Rate (UBR) 384, 386

unit trusts 428, 434, 446

United States 257, 334, 582, 583, 609, 629, 641, 642 agriculture 550, 558, 575, 640 anti-dumping action 559 Bretton Woods system 544 corporate governance 316 corruption 506, 635 current account deficit 520, 537, 558, 600

deflation 417, 419 deregulation 159 Dow Jones Sustainability Group Index 304

environment 192, 201, 204, 205, 308

European Union 519, 558, 560 exchange rate with China 537, 539, 558, 600

United States (continued)

executive remuneration 315 firms 51, 55, 56

genetically modified (GM) crops 558

globalization and 517-21

health care 179, 182, 234-7, 238 inflation 474

investment 16, 341, 343, 345, 346, 347, 520

mergers and acquisitions 81, 86, 88, 99-102

minimum wage 288-9 multinationals 125, 126, 127, 128, 129, 130, 133, 139, 142, 285, 505, 506, 520

oligopoly 113, 120, 129 quotas 557

regional blocs 503, 519, 553, 554 savings ratio 334, 335, 520, 660-1

September 11th 2001 (9/11) 515 SMEs 70, 612

sovereign debt rating 663 structural change 9, 12, 13-14, 16, 17, 19

sub-prime market 455, 456, 658, 659-60

taxation 379

trade and development 640-1 trade disputes 550, 551

trade sanctions 560 unemployment 492, 494 urbanization 612, 636-9

road transport congestion 215-22

utilities 509, 600

mergers and acquisitions 92 nationalization 149 privatization 153, 154, 155, 612 regulation 155, 156, 157

valuation

environment 190-4, 202 ratio 84-5

value added tax (VAT) 370, 371, 373, 473, 475, 604, 662 administrative costs 385 European Union 568-9, 570,

572, 604, 662

proportional and regressive 372, 384, 390, 569

receipts from 369

varying rate of 384

value discrepancy hypothesis 83-4 value for money (VFM) audits 359 Van Ark, B. 18

Van Vuuren, D. 202

Vaughan, K. 175

Veblen, T. 173

Venables, A.J. 16 venture capital 72, 511 vertical integration 82, 102, 111,

126, 128, 138

cost-oriented multinationals 130, 135

taxation 143-4

Vishny, R. 84

Viswanathan, S. 84

Vitaliano, D.F. 52 wages see earnings

Wagner, L. 113, 361, 362 Wallsten, S. 506, 636 Walras, L. 167 waste 189, 200, 201 water supply 191, 201, 605 sanitation and 638-9

Watson, R. 53

Weale, M. 330, 335 wealth 332, 335, 336, 660-1 distribution of 254, 263-4, 268 redistribution of 150, 331, 464

Webb, S. and B. 272

welfare, economic 89-91

deregulation 158-60

direct vs indirect taxes 385

foreign direct investment (FDI) and 140-1

sustainable 189-90 welfare and social security 355, 357, 362, 374, 608, 613, 656, 657

child benefit 360, 390

incapacity benefit 481

income support 265-6, 356 pension, state 357, 362, 389, 447 poverty trap 380-2, 383, 384 price index 460, 462

reform and taxation 389-90 spending on 230 unemployment benefit 356, 362, 363, 484, 489, 491, 492, 493, 494, 656

unemployment trap 382-3, 384, 656

Wells, J.R. 10

Whelan, K. 342, 343, 345 Whitaker, S. 342, 345

White, L. 85

Whittington, G. 55, 59, 86, 87, 88 wholesale money markets 435, 436, 439-41, 443-4

Williamson, O.E. 48, 88, 167, 361 Wilson, Woodrow 519 windfall gains 330-1, 333 Winston, C. 159

Wiseman, J. 362

Wolf, M. 307 Wood, S. 278

Working Tax Credit (WTC) 389, 390

World Bank 506, 514, 516, 517, 539, 560, 595, 605, 640, 641-3

environment 207

World Trade Organization (WTO) 91, 503, 505, 517, 550-1, 558, 584, 600, 604 centralization 513 disputes 517, 550, 551, 558, 560 Doha round 550, 553, 559, 560-1, 640-1 dumping 550, 559 sanctions 517, 560

Wright, M. 280 yields 44, 426, 440

Young, G. 330, 344, 348 youth unemployment 481, 482,

494

Zak, P. 506, 635

Zangelidis, A. 294 zero bound 418-19

Zoega, G. 492