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54301. Saudi Arabia's Dubious Denials of Involvement in International Terrorism

Author:
Dore Gold
Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
Saudi Arabia's past involvement in international terrorism is indisputable. While the Bush administration decided to redact 28 sensitive pages of the Joint Intelligence Report of the U.S. Congress, nonetheless, Saudi involvement in terrorist financing can be documented through materials captured by Israel in Palestinian headquarters in 2002-3. In light of this evidence, Saudi denials about terrorist funding don't hold water. Israel retrieved a document of the International Islamic Relief Organization (IIRO) which detailed the allocation of $280,000 to 14 Hamas charities. IIRO and other suspected global Saudi charities are not NGOs, since their boards of directors are headed by Saudi cabinet members. Prince Salman, a full brother of King Fahd, controls IIRO distributions "with an iron hand," according to former CIA operative Robert Baer. Mahmoud Abbas, in fact, complained, in a handwritten December 2000 letter to Salman, about Saudi funding of Hamas. Defense Minister Prince Sultan has been cited as a major IIRO contributor. It was hoped, after the May 12 triple bombing attack in Riyadh, that Saudi Arabia might halt its support for terrorism. Internally, the Saudi security forces moved against al-Qaeda cells all over the kingdom. But externally, the Saudis were still engaged in terrorist financing, underwriting 60-70 percent of the Hamas budget, in violation of their "roadmap" commitments to President Bush. Additionally, the Saudis back the civilian infrastructure of Hamas with extremist textbooks glorifying jihad and martyrdom that are used by schools and Islamic societies throughout the West Bank and Gaza Strip. Ideological infiltration of Palestinian society by the Saudis in this way is reminiscent of their involvement in the madrassa system of Pakistan during the 1980s, that gave birth to the Taliban and other pro bin-Laden groups.
Topic:
Security, Religion, and Terrorism
Political Geography:
United States, Middle East, Israel, Palestine, Gaza, Arab Countries, and Saudi Arabia

54302. Ten Years Since Oslo: The PLO's "People's War" Strategy and Israel's Inadequate Response

Author:
Joel S. Fishman
Publication Date:
09-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
Israel and the PLO have been confronting each other according to completely different paradigms of conflict. Since the late 1960s, the PLO has adopted a "people's war" paradigm that continued to guide its policies even after the signing of the 1993 Oslo Accords. According to the "people's war" paradigm, borrowed from Marxist-Leninist traditions in China and Vietnam, conflict is waged on both the political and military levels, but for militarily weaker guerilla groups, political conflict is more important, especially the delegitimization of an adversary and the division of his society. Prior to 1993, Israel largely responded to the PLO militarily as a terrorist threat, but not politically. After 1993, with the PLO "renouncing" terrorism, Israel embraced the PLO leadership and ignored the signs that the PLO was still engaged in political warfare against it (incitement, reluctance to alter PLO Covenant, UN votes, textbooks). Israeli governments later complained about these symptoms of political warfare, without identifying the cause. Established Israeli traditions place undue emphasis on the narrowly-framed military approach to the detriment of the political, which leaves Israel particularly vulnerable to broad-based strategic deception. Israeli policy-makers must reexamine the assumptions upon which they have based political and military policy over the last decade.
Topic:
Security, Religion, and War
Political Geography:
China, Middle East, Israel, Vietnam, Arab Countries, and Oslo

54303. Unilateral Separation as Roadmap Insurance

Author:
Gerald M. Steinberg
Publication Date:
08-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The record of formal efforts to negotiate peace in protracted ethno-national conflicts (Balkans, N. Ireland, Sri Lanka, etc.) is not encouraging. Israel needs a serious insurance policy, in the form of unilateral separation, to minimize vulnerability to another and potentially more deadly terror campaign, should the "roadmap" fail. The construction of a separation barrier is supported by over 70 percent of the Israeli public, representing a broad consensus from across the political spectrum that favors a physical barrier blocking access to Israeli cities in order to prevent a resumption of the Palestinian terror campaign of the past three years. Political separation will also promote a two-state solution, allowing Israel to remain a culturally Jewish and democratic society while fostering Palestinian sovereignty. Key policy issues concern the pace of construction and the route to be taken for the remaining sections. While options range from a minimalist 300 km line to a 600 km alternative that would include most Israeli settlements, a pragmatic middle route including settlement blocs like Ariel and Gush Etzion may provide the optimum mix under present circumstances. If the Palestinian security framework proves its capabilities in preventing terror, and political negotiations on borders progress, the barrier can be relocated.
Topic:
Security, Religion, and Sovereignty
Political Geography:
Middle East, Israel, Sri Lanka, Palestine, Arabia, Balkans, and Ireland

54304. The UN and the Assault on Israel's Legitimacy: Implications for the Roadmap

Author:
Anne Bayefsky
Publication Date:
07-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The roadmap has significant roots in the UN, an organization long understood as biased against Israeli interests and Jewish well-being in general. Examples include the work of the UN "Special Committee to Investigate Israeli Practices Affecting the Human Rights of the Palestinian People and Other Arabs of the Occupied Territories," established in 1968, and the UN "Committee on the Exercise of the Inalienable Rights of the Palestinian People," created in 1975. There is a pressing need to clarify with the American administration what attributes of sovereignty will not be accorded a Palestinian state with provisional borders prior to final status negotiations. Israel must reassert that its consent is necessary for any decision affecting its essential interests. An American commitment to object to any unilateral declaration of independence should be immediately forthcoming and clearly understood by the parties. The UN and the European Union must be kept out of any monitoring and assessment function. Recognition of a fundamental breach, and the ability to apply the necessary consequences, require that precise and public monitoring by Israel start now.
Topic:
Security, Religion, and United Nations
Political Geography:
America, Middle East, Israel, Palestine, and Arabia

54305. Defensible Borders for Israel

Author:
Dore Gold
Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The quest for defensible borders has been an axiom of Israeli governments since 1967 on the basis of UN Security Council Resolution 242. Defensible borders for Israel has been explicitly backed by Washington since the Reagan administration. In Rabin's last Knesset address he made clear that Israel "will not return to the 4 June 1967 lines." He insisted on a map including a united Jerusalem, the settlement blocs, and the Jordan Valley. In 2003, Israeli planners will have to operate under the assumption that the dismantling of the Palestinian terrorist infrastructure will be incomplete, and should a Palestinian state nonetheless be established, its complete demilitarization will not be reliable. During the Oslo years, the Palestinian leadership was in material breach of the military clauses of the Interim Agreement, seeking to import illegal weaponry like SA-7 shoulder-fired anti-aircraft missiles and manufacturing Qassam rockets. Many of the same security figures who breached Oslo now serve the government of Mahmud Abbas. Moreover, fundamentalist groups like Hamas that mentioned the Islamic term hudna, for cease-fire, understood that it means a truce that is maintained until the balance of power changes. This means they will seek rearmament; Israeli military intelligence was, in fact, reporting that Hamas had accelerated production of Qassam rockets in early July. In their pronouncements, Hamas and Islamic Jihad have even used a weaker term: ta'liq - a temporary cessation of hostilities. In the wake of the decline of the threat from Iraq, Israel will require defensible borders to meet the growing lethality of the Palestinian threat, backed by the assistance of Iran, Syria, and Saudi Arabia. The Bush administration should provide Israel with assurances concerning defensible borders as it seeks Israel's acquiescence to the creation of a Palestinian state.
Topic:
Security, Government, and Religion
Political Geography:
Middle East, Israel, Palestine, Arabia, Saudi Arabia, Syria, and Jordan

54306. The Global Epidemic of Illegal Building and Demolitions: Implications for Jerusalem

Author:
Justus Reid Weiner
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
In recent decades, municipalities and governments in all parts of the world have struggled with illegal building. However, compared with the incessant denunciation of rather infrequent demolitions by the Jerusalem Municipality, there has been nearly a complete lack of publicity when other governments demolish illegal structures. Those who complain that many Arabs cannot afford housing in Jerusalem ought to recognize economic reality; Jewish residents of Jerusalem who also cannot afford the high cost of housing find it necessary to move to the periphery of the city where housing is more affordable. In New York, nobody would excuse or tolerate people building illegally in Central Park, whatever their attachment to Manhattan or however large their family. Even the Palestinian Authority has demolished houses constructed illegally. Particularly refreshing was PA leader Sari Nusseibeh's statement that the "gangs that build illegally on land that does not belong to them should be thrown into jail," and that "Nobody in their right mind is in favor of illegal building."
Topic:
Security, Government, and Religion
Political Geography:
New York, Middle East, Palestine, Arabia, and Jerusalem

54307. Should Israel Now Send a Message to the Arab World?

Author:
Dan Diker
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The impending renewal of Arab-Israeli contacts after the Aqaba summit is an appropriate occasion to reassess one of the weak points of Israel's information effort. At the 1991 Madrid Peace Conference, then Deputy Foreign Minister Binyamin Netanyahu "broke the ice" with scores of Arab reporters when he provided articulate explanations of Israel's positions. Eytan Bentsur, Director General of Israel's Foreign Ministry at the time of Madrid, saw Israel's "paternalistic" approach to the Palestinians at Oslo as contributing to the ultimate collapse of the peace process. The launch of Arab satellite television in 1994 provided Israel with direct access to millions of Arab and Muslim viewers throughout the Middle East. Prime Minister Sharon's foreign media advisor, Raanan Gissin, is regularly interviewed on the leading Arab channels. Despite the high standards of news programming on Israel's new Arabic-language Middle East Satellite Channel, it is not widely viewed in the Arab world because it is recognized as an Israeli government operation. ArabYnet, an Arabic translation of the popular Ynet news website of the Israeli Hebrew daily Yediot Ahronot, has become one of the most popular Arabic language websites on the Internet, with nearly a million unique monthly users. It is a commercial site that presents an Israeli point of view but with no particular political agenda.
Topic:
Security, Government, and Religion
Political Geography:
Middle East, Israel, and Arabia

54308. The Psychological Framework of Suicide Terrorism

Author:
Irwin J. Mansdorf
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
Since 1993, attempts have been made to portray Palestinian-Arab perpetrators of suicide bombings as desperate individuals understandably coping with a difficult situation, in effect, transforming the attackers into victims, and thus diminishing the impact of one's revulsion at such attacks. The use of the “bomber as victim” model has led others to similarly view, and incorrectly justify, the motivations behind Palestinian-Arab suicide bombers. Yet, in fact, individual psychopathology or personal feelings do not appear to play any significant role. Unlike other groups that have used suicide as a political or military tool, only in the case of Palestinian-Arab terror has there been an attempt to personalize the perpetrator as a victim of uncontrollable psychological and motivational forces that forced such extreme behavior. It is actually group dynamics that reinforces behavior within a Palestinian-Arab culture where suicide bombers are viewed as heroes whose faces are prominently displayed on public posters and where families of bombers are showered with both respect and financial reward.
Topic:
Security, Religion, and Terrorism
Political Geography:
Middle East, Palestine, and Arabia

54309. Does the International News Media Overlook Israel's Legal Rights in the Palestinian-Israeli Conflict?

Author:
Dan Diker
Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
International news organizations covering the Arab-Israeli conflict frequently refer to international agreements and resolutions in ways that are prejudiced against Israel's legal rights and claims. Frequent references to Israel's legal obligation to withdraw to the pre-1967 borders are inconsistent with UN Security Council Resolution 242 and the Oslo Accords. Neither the Oslo Declaration of Principles of September 1993 nor the Oslo II Interim Agreement of 1995 require either Palestinians or Israelis to refrain from the construction of settlements, neighborhoods, houses, roads, or any other similar building projects. References in the news media to “occupied Arab East Jerusalem” reflect an underlying assumption that eastern Jerusalem has always been an Arab city like Damascus or Baghdad, ignoring the fact that Jerusalem has had an overwhelmingly Jewish majority as far back as the mid-nineteenth century. Despite UN Secretary General Kofi Annan's announcement on 25 July 2000 that Israel had fully implemented UN Resolution 425 when it unilaterally withdrew from southern Lebanon, news organizations have continued to refer to the Shaaba Farms, located on Israel's side of the border with Lebanon, as “disputed.”
Topic:
Security, Religion, and United Nations
Political Geography:
Middle East, Israel, Palestine, Arabia, Jerusalem, Lebanon, and Oslo

54310. September 11: Its Implications for American Jewry

Author:
Steven Windmueller
Publication Date:
02-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
Martin Buber wrote: "Each Jew represents the mirror image of the collective soul of the Jewish people." In recent times, we have described ourselves as a proud people, assured of our place in the modern world. But the events of September 11 left us numbed and confused as to its meaning and message. The tragic events of that day fused with the events that occurred a year earlier in Israel with the onset of the second intifada, and may have fundamentally transformed the Jewish experience in our times.
Topic:
Security and Religion
Political Geography:
America, Middle East, Israel, and Arabia

54311. How to Help Palestinian Refugees Today

Author:
Scott B. Lasensky
Publication Date:
02-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The collapse of the Oslo process and ever worsening Israeli-Palestinian violence demonstrate that certain long-held "truths" about the conflict need to be turned on their heads - none more so than the accepted wisdom that the Palestinian refugee problem, long a source of regional instability and a breeding ground for suicide terrorists, can only be addressed as part of a final settlement. Rather than follow a comprehensive agreement, ameliorating the Palestinian refugee problem increasingly looks like a necessary precondition for a permanent Israeli-Palestinian settlement. It might even be required for a meaningful resumption of negotiations.
Topic:
Security and Religion
Political Geography:
Middle East, Israel, Palestine, and Czech Republic

54312. The Beleaguered Christians of the Palestinian-Controlled Areas

Author:
David Raab
Publication Date:
01-2003
Content Type:
Policy Brief
Institution:
Jerusalem Center for Public Affairs
Abstract:
The Christian community in the areas administered by the Palestinian Authority (PA) is a small but symbolically important one. About 35,000 Christians live in the West Bank and 3,000 in Gaza, representing about 1.3 percent of Palestinians. In addition, 12,500 Christians reside in eastern Jerusalem. This population is rapidly dwindling, however, and not solely as a result of the difficult military and economic situation of the past two years. Rather, there are numerous indications that the Christian population is beleaguered due to its Christianity. Taken in context of the condition of Christians in other Middle Eastern countries, this picture is especially credible and troubling.
Topic:
Security and Religion
Political Geography:
Middle East, Palestine, Arabia, and Gaza

54313. Observing the 2002 Jamaica Parliamentary Elections

Author:
Laura Neuman
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Following the 1997 elections, the Jamaican electoral authorities instituted a number of reforms to improve the electoral process and increase voter confidence in its credibility. Measures such as purifying the electoral registry, appointing a nonpartisan corps of election day workers, and instituting a policy of consultative decision-making underpinned these successful administrative efforts. More difficult to address than the technical components of the election, however, was the continuing fear of violence and intimidation. Innovative models of conflict prevention and resolution were designed and, to a greater or lesser degree, implemented. Overall, The Carter Center found the 2002 Jamaican elections to be exemplary in its organization and preparations and to reflect adequately the will of the people. Nevertheless, we remain concerned over the violence during the campaign period and the voter intimidation that persisted in these elections, as well as the deleterious effect of the political tribalism and garrison phenomenon.
Topic:
Political Violence, Civil Society, and Democratization
Political Geography:
Caribbean and Jamaica

54314. Observing the 2002 Kenya Elections

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Kenya's independence leader, Jomo Kenyatta, of the Kenya African National Union (KANU), held power from independence in June 1963 to the time of his death in August 1978. He was succeeded by then Vice President Daniel arap Moi, who retained the presidency through Kenya's multiparty elections in 1992 and 1997. However, both elections were marred by controversy owing to political violence, widespread voting irregularities, and fraud.
Topic:
Political Violence, Civil Society, Corruption, Democratization, and Human Rights
Political Geography:
Kenya and Africa

54315. Small arms problems in Belgrade - a survey of young people's knowledge and attitudes

Publication Date:
12-2003
Content Type:
Working Paper
Institution:
South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons
Abstract:
The wars in which the Republic of Serbia1 took part during the nineties left behind a multitude of easily accessible small arms that soon appeared on the streets of all Serbian cities. The ready availability of uncontrolled firearms in any society is concern enough, but in Serbia's case this diffusion of small arms into society occurred against a backdrop of economic crisis, an unprecedented growth of criminal activity, and a nationalistic discourse of 'patriotic wars' in which violence, gun-use, militarism and machismo were mythologised to serve political ends.
Topic:
Security, Arms Control and Proliferation, and Civil Society
Political Geography:
Europe and Serbia

54316. Cross Border Trafficking in South Eastern Europe - Assessing Trafficking Activities in the Southern Adriatic Region

Publication Date:
10-2003
Content Type:
Working Paper
Institution:
South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons
Abstract:
Borders communities are more than just entry and exit points to a country. In the world of porous borders and transborder crime, these communities take on various aspects of the activities pursued in their environs. Some of these activities are clearly evident, such as the increase in youth appearing to be drug users. Other signs are more difficult to pinpoint, as one person's businessman becomes another's smuggler. These characteristics are exacerbated by the context of a post-conflict situation where tensions and isolation cause greater conspiracy theories rather than greater cooperation and coordination.
Topic:
Security, Arms Control and Proliferation, and Economics
Political Geography:
Europe

54317. Philosophy and Principles of Community Based Policing

Publication Date:
10-2003
Content Type:
Working Paper
Institution:
South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons
Abstract:
This policy document forms the first part of a process of work that focuses on community-based policing (CBP) and how it can be implemented in conjunction with small arms and light weapons (SALW) initiatives. The document will serve as a framework for the South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons (SEESAC) to guide the development and implementation of CBP in the region. It will also form part of a set of tools that the UNDP Bureau for Crisis Prevention and Recovery (BCPR) is producing. The second phase of this work will provide an operational framework for the UNDP Country Office in Albania for implementing CBP in Albania.
Topic:
Security, Defense Policy, Arms Control and Proliferation, and Development
Political Geography:
Europe and Albania

54318. 'You Have Removed the Devil From Our Door' - An Assessment of the UNDP Small Arms and Light Weapons Control (SALWC) project in Albania

Publication Date:
10-2003
Content Type:
Working Paper
Institution:
South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons
Abstract:
The Small Arms and Light Weapons Control (SALWC) project was undertaken in 2002-2003 by UNDP in co-operation with the Albanian government, at a programme cost to the international community of US$ 3.47.8 million. Its objectives were to help remove illegally held weapons and explosives from the population, to make the population more aware of the dangers of the illegal possession of such items and to enhance the ability of the authorities to control the private possession of arms and ammunition.
Topic:
Security, Arms Control and Proliferation, Civil Society, Government, and Population
Political Geography:
Europe and Albania

54319. Cross Border Trafficking in South Eastern Europe - Assessing Trafficking Activities in the Southern Adriatic Region

Publication Date:
09-2003
Content Type:
Working Paper
Institution:
South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons
Abstract:
This study was commissioned by the South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons (SEESAC). The purpose of the Ammunition Detection Study is to determine if there is evidence to support the SEESAC hypothesis that it may be more productive to specifically target the detection of ammunition for Small Arms and Light Weapons rather than the weapons themselves. SEESAC is a developing organisation, with a responsibility to identify information on the precise level of smuggling activity and also advise on measures to reduce cross border trafficking; clearly current search methodologies used to detect weapons and ammunition within the region are an important component of this advice. Following discussions with the SEESAC Team Leader a set of assumptions, to support the Terms of Reference (TOR), were agreed.Initial desktop research examined weapons and ammunition design and manufacture to determine if and why weapons can be more easily concealed than ammunition and what constituent parts are common or exclusive to one particular commodity. Further analysis was conducted to determine if ammunition and weapons are consistently transported together and examples of occurrences are provided. The investigation has involved visits to specialist organisations and national security agencies that have undertaken to provide data on suitable search and detection methodologies. (PDF, 30 pages, 1.02 MB)  Â
Topic:
Security, Arms Control and Proliferation, and Economics
Political Geography:
Bosnia, Moldova, Eastern Europe, Kosovo, Serbia, Bulgaria, Balkans, Romania, Macedonia, Albania, and Croatia

54320. Bi-Annual Report: 01 January - 30 June 2003

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
South Eastern Europe Clearinghouse for the Control of Small Arms and Light Weapons
Abstract:
In November 2001 the Stability Pact for South Eastern Europe adopted a Regional Implementation Plan on Combating the Proliferation of Small Arms and Light Weapons in South Eastern Europe, which provides a framework of approaches and measures to tackle SALW issues that can be adopted by the countries of the region and supported by international organisations and bi-lateral donors. The Implementation Plan included provision for the establishment of a regional clearinghouse to support its implementation, and on the basis of this mandate SEESAC was officially launched in Belgrade on the 08 May 2002 as a joint UNDP and Stability Pact initiative.
Topic:
Arms Control and Proliferation, Civil Society, and Government
Political Geography:
Europe

54321. Approaching Education from a Good Governance Perspective: USAID Resource Guide for Joint DG/Education Programs

Publication Date:
08-2003
Content Type:
Working Paper
Institution:
United States Agency for International Development
Abstract:
This resource guide is a joint effort of USAID's Office of Democracy and Governance and Office of Education, responding to the need to promote greater policy and program linkages between the Agency's democracy and governance (DG) and education sectors. The specific goals of this DG and education resource guide are to raise awareness among education sector professionals at USAID about the role of the DG sector in shaping education policies and programs; to raise awareness among USAID DG professionals about education as an important DG issue; and to provide frameworks and best practice examples to help guide joint programming among USAID education and DG staff.
Topic:
Civil Society, Democratization, Education, and Government

54322. Final Evaluation: The OTI Program In East Timor

Author:
Jeffrey Clark, Lia Juliani, and Ann von Briesen Lewis
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
United States Agency for International Development
Abstract:
The report which follows constitutes the final evaluation of the three year Office of Transition Initiatives operation in East Timor. It stems from an independent examination and analysis of OTI's program in that country, as it emerged from the violence of September 1999 and faced the multiple challenges inherent in constructing a new government and in defining a new nation. The evaluation, conducted in October and November of 2002, was undertaken through a big picture approach meant to capture the entirety of OTI's experience in East Timor. The evaluators concentrated on two fundamental questions: Is there evidence that OTI's interventions had impact? Did the interventions deliver on the stated objectives?
Topic:
Development, Economics, Government, and Politics
Political Geography:
Southeast Asia

54323. The Underground Railroad In South Central Pennsylvania

Author:
Matthew Pinsker and Scott Hancock
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Clarke Forum for Contemporary Issues
Abstract:
"Among historians," one scholar suggested just a few years ago, "the underground railroad has become a dead issue." As if to confirm that judgment, the most important recent study of runaway slaves contains only two index entries for the Underground Railroad. The authors of that widely acclaimed monograph, John Hope Franklin and Loren Schweninger, are candid about the reasons for this decision. "Although historians continue to disagree about various aspects of the Underground Railroad," they write, "few deny that even today it is shrouded in myth and legend."
Topic:
Human Rights and Human Welfare
Political Geography:
United States

54324. Living at the Edge: America's Low-Income Children and Families

Author:
Hsien-Hen Lu, Younghwan Song, Mary Clare Lennon, and J. Lawrence Aber
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
By analyzing data from the Current Population Survey March Supplements, Living at the Edge explores the following questions about children in low-income families in the United States: What are the overall changes in the low-income and poverty rates for children over the past quarter century? How has the population of children in low-income families changed over the past decade? Which children are more likely to live in low-income families? How have changes in parental employment status affected the likelihood of children living in low-income families? What are the state by state variations in child low-income and poverty rates, and how have these changed in the last decade? How does a more inclusive definition of family income and expenses affect our understanding of the poverty and near-poverty rates of children in low-income families? This report helps document significant improvements in the child lowincome rate as well as the significant decrease in the proportion of children who relied on public assistance during the 1990s. However, Living at the Edge also finds a notable increase in the share of children who lived in near-poor families (those with incomes between 100 and 200 percent of the poverty line) among children in low-income families during the 1990s. Many disadvantaged groups of children, including those with young parents, minority parents, parents with limited education, or unmarried parents, were less likely to live in poor or lowincome families in the late 1990s than such children a decade earlier. The improvement in the child low-income rates of these disadvantaged groups was closely related to an increase in parental employment during the late 1990s. However, the low-income rate worsened for children whose more educated parent had a high-school diploma but no college education. For children of many disadvantaged social groups, parental employment appears to do less to protect them from economic hardship then it did a decade earlier. The groups that suffered the most in reduced economic security given parental employment status were those in the medium risk ranks (children in families with at least one parent between ages 25 to 39, children whose more educated parent had only has a high school diploma, and in father-only families). The report also notes that the official measure of poverty ignores the burden of medical and work related expenses as well as taxes and therefore tends to underestimate the share of children in near-poor and low-income families facing economic insecurity. Finally, we discuss the policy implications for our findings.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
United States

54325. Active Patients' in Rural African Health Care: Implications for Welfare, Policy and Privatization

Author:
Kenneth L. Leonard
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
The 'active patient' is introduced in this paper. She is the same person as the rational peasant that we have known for at least three decades. She is a rational agent seeking health care in an environment characterized by market failures (particularly agency in the supply of medical quality) and imperfect institutional responses to these failures. We show evidence that patients significantly increase their welfare by choosing between various different providers and matching their illnesses to the resources that are available at these different providers. This paper suggests that continuing to view patients as passive participants in the health care market gives way to misleading policy suggestions and may in fact reduce the welfare of patients.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
Africa

54326. Factional Politics and Credit Networks in Revolutionary Vermont

Author:
Henning Hillmann
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
Studies of state formation tend to emphasize the demise of localism through centralization. This article specifies empirically the social structural conditions that strengthen localism understate formation. The historical case is the creation of Vermont during the Revolutionary War and the local factionalism it involved. Probate records are used to reconstruct credit networks that provided the relational foundation for localism and factional identities. The evidence demonstrates that network segregation between factional regions intensified over time, and was supported by strong cohesion within these regions. Local brokers who forged cohesion within factions consistently attained important political offices while mediators between opposing factions increasingly failed to obtain offices. This structural process coincided with the shift of Vermont's domestic politics into national level conflicts between Federalists and Jeffersonians. Within this escalation local and national factions crystallized around equivalent pairs of binary categorical oppositions. T h e evocation of national politics directly resonated with local lines of conflict, and reinforced factional identities and localism.
Topic:
Government, Human Welfare, Politics, and War
Political Geography:
United States

54327. The Plasticity of Participation: Evidence from a Participatory Governance Experiment

Author:
Subham Chaudhuri and Patrick Heller
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
Under the “People's Campaign for Decentralised Planning,” initiated by the government of the Indian state of Kerala in 1996, significant planning and budgetary functions that had previously been controlled by state-level ministries, were devolved to the lowest tier of government—municipalities in urban areas, and gram panchayats (village councils) in ural areas. A key element of the campaign was the requirement that every gram panchayat organize open village assemblies—called Gram Sabhas—twice a year through which citizens could participate in formulating planning priorities, goals and projects. Using data from the first two years of the campaign, on the levels and composition of participation in the Gram Sabhas in all of Kerala's 990 gram panchayats we empirically assess the explanatory power of the dominant existing paradigms of participation—social capital, rational choice, and social-historical. The basic patterns we document, as well as our more detailed analyses of the impact that a range of spatial, socioeconomic and political factors had on the levels and social depth of participation, provide broad support for a dynamic and contingent view of participation, a perspective that recognizes the “plasticity of participation.”
Topic:
Economics, Government, Human Welfare, and Governance
Political Geography:
Asia

54328. Unbreakable Bond: Serbs and Kosovo

Author:
Vladimir Matic
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Public International Law Policy Group
Abstract:
Nationalism remains a potent force in Serbia, strongly affecting the politicking within the political elite regarding final status issues in Kosovo. The democratic forces are not immune from Kosovo-related nationalism and have at times adopted hardline positions to diminish their vulnerabilities in the political struggle. Since the end of the Kosovo war the West has done nothing to dispel the perception in Belgrade that Serbia's legal claim of sovereignty over Kosovo remains valid in principle and of equivalent standing as an issue “on the table” with Kosovo Albanians' insistence on independence in the prelude to negotiations. Belgrade ignores the fact that, with virtually no Albanians in Kosovo willing to work with them, they have no Albanian partners in pursuing this goal. Kosovo Serbs also display considerable mistrust of Belgrade's concern for their interests. The EU and UNMIK have attempted to create a framework for progress on the issue, but success will hinge on the willingness of the United States to exercise diplomatic leadership to resolve the deadlock.
Topic:
Democratization, Government, and Politics
Political Geography:
United States, Europe, Kosovo, Serbia, and Albania

54329. Reversing the Decline in the Balkans: Recommendations for Western Policy

Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Public International Law Policy Group
Abstract:
The results of Serbia's December 2003 parliamentary elections accelerated concerns that the situation in the Balkans is seriously deteriorating. On 2 March 2004 the Public International Law Policy Group and The Century Foundation convened a roundtable of sixteen people deeply involved in Balkan issues from the region, Europe, and the United States to review the general situation in the Balkans and examine the approach of the United States and European Union (EU) to the region.
Topic:
Foreign Policy, Politics, and Sovereignty
Political Geography:
United States, Europe, Serbia, and Balkans

54330. Serbia After Djindjic: Can Invigorated Reforms Be Sustained?

Author:
Vladimir Matic
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Public International Law Policy Group
Abstract:
The assassinated prime minister of Serbia, Zoran Djindjic, appears to have won in death much of what he could not achieve in life. His concept of Serbia's way out of the domestic political and economic crisis through reform and membership in a democratic Europe has prevailed over one representing the past; Serbia is finally open to cooperation with the world. But the national consensus he was dreaming about does not yet exist. The prevalence and reach of networks of organized crime and corruption limit prospects for significant further structural change and more serious consolidation of the rule of law. The Serbian people have put aside for the moment their infatuation with radical nationalism rather than exorcising it from their society and intellectual culture. The success of such reform as has been implemented is far from secured. For the time being the joint efforts of the leading pro-democratization parties of Serbia and Montenegro have brought about the beginning of long-postponed changes in the army and initiated far-reaching reforms. This allows continuation of reforms in Serbian services and strengthening of the basic institutions of democracy. If continued, expanded and intensified, this course will take both Serbia and Montenegro irrespective of the final destiny of their Union closer to democracy and to the European Union and the United States.
Topic:
Democratization, Government, and Politics
Political Geography:
United States, Europe, and Serbia

54331. Establishing a Stable Democratic Constitutional Structure in Iraq: Some Basic Considerations

Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Public International Law Policy Group
Abstract:
As the situation in Iraq continues to stabilize, the people of Iraq will turn to the task of reconstituting an Iraqi state. One of the first steps in this process will be to design, agree upon, and implement a new constitutional structure. While drafting a new constitution is a difficult and contentious process for any country, the challenges are substantially magnified for Iraq given its complex mosaic of ethnic and religious identities, the history of repression under Saddam Hussein, the necessary presence of American forces, and Iraq's complex relations with its neighboring states.
Topic:
Democratization, Development, and War
Political Geography:
Iraq, Middle East, and Arabia

54332. The United States, China, and Taiwan: A Future With Hope

Author:
James Lilley
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Public International Law Policy Group
Abstract:
You have clearly worked over the complicated relationship between Taiwan and China. I can only try to build on what Dr. Lin Chong--pin and Mr. Rostow have already described so lucidly. I would like to point out first that China chooses, for both tactical and emotional reasons, to place a special heavy emphasis on its relationship with Taiwan and to its point that Taiwan is part of China. Emotional, because this stirs up nationalism among a skeptical Chinese elite who have lost ideology. Tactical, because driving home the unity and sovereignty themes forces the U.S. on the defensive, i.e., the U.S. interferes in China's internal affairs, a cardinal sin in China's own lexicon. In reality, however, China has been practical. For almost fifty years Chinese propaganda has focused on Taiwan as a pure target, but objective circumstances have changed and so has China's strategy. China took over the Ta Chen Islands peacefully in 1954, its last significant territorial acquisition in the Taiwan Strait. Its later more militaristic approach against a well--defended Quemoy (Chin men) failed in 1958, and China retreated with much bluster and firing of cannons, many of them empty.
Topic:
Politics and Sovereignty
Political Geography:
United States, China, Taiwan, and Asia

54333. What is Sovereignty? The Cases of Taiwan and Micronesia

Author:
Peter R. Rosenblatt
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Public International Law Policy Group
Abstract:
The title of my contribution to this discussion raises a point that is easy to overlook in discussions relating to the legal status of the Republic of China (ROC) on Taiwan. The range of options across the Strait is not confined, as the title of this conference suggests, to the reunification of China or Taiwan's independence, although either of these is obviously a possibility. A more likely option, in my judgment, is some future status for the ROC which involves neither incorporation into the People's Republic of China nor the challenging step of a declaration of “independence” as the Republic of Taiwan. This third option embraces a multiplicity of status shadings involving a continuing evolution of the ROC's current status of de facto independence. It is this option that I would like to address.
Topic:
Politics and Sovereignty
Political Geography:
China, Taiwan, and Asia

54334. The Response of Hours to a Technology Shock: Evidence Based on Direct Measures of Technology

Author:
Robert J. Vigfusson, Lawrence J. Christiano, and Martin Eichenbaum
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We investigate what happens to hours worked after a positive shock to technology, using the aggregate technology series computed in Basu, Fernald and Kimball (1999). We conclude that hours worked rise after such a shock.
Topic:
Economics, Industrial Policy, and Science and Technology
Political Geography:
United States

54335. China and Emerging Asia: Comrades or Competitors?

Author:
John W. Schindler, John G. Fernald, Prakash Loungani, and Alan J. Ahearne
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Do increases in China's exports reduce exports of other emerging Asian economies? We find that correlations between Chinese export growth and that of other emerging Asian economies are actually positive (though usually not significant), even after controlling for trading-partner income growth and real effective exchange rates. We also present results from a VAR estimation of aggregate trade equations on the relative importance of foreign income and exchange rates in determining Asian export growth. Although exchange rates do matter for export performance, the income growth of trading partners matters even more. In addition, we examine specific products and find evidence that a considerable shifting of trade patterns is taking place, consistent with a 'flying geese' pattern in which China and ASEAN-4 move into the product space vacated by the NIEs. Our results suggest that China and emerging Asia are both comrades (overall) and competitors (in specific products).
Topic:
Economics and Emerging Markets
Political Geography:
China and Asia

54336. How Does the Border Affect Productivity? Evidence from American and Canadian Manufacturing Industries

Author:
Robert J. Vigfusson
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper studies how much of productivity fluctuations are industry specific versus how much are country specific. Using data on manufacturing industries in Canada and the United States, the paper shows that the correlation between cross-border pairings of the same industry are more often highly correlated than previously thought. In addition, the paper confirms earlier findings that the similarity of input use can help describe the co-movement of productivity fluctuations across industries.
Topic:
Economics, Industrial Policy, and Science and Technology
Political Geography:
United States, Canada, and North America

54337. Breaks in the Variability and Co-Movement of G-7 Economic Growth

Author:
Jon Faust and Brian M. Doyle
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper investigates breaks in the variability and co-movement of output, consumption, and investment in the G-7 economies. In contrast with most other papers on co-movement, we test for changes in co-movement allowing for breaks in mean and variance. Despite claims that rising integration among these economies has increased output correlations among them, we find no clear evidence of an increase in correlation of growth rates of output, consumption, or investment. This finding is true even for the United States and Canada, which have seen a tremendous increase in bilateral trade shares, and for the members of the euro area in the G-7.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States, Canada, and North America

54338. Interest Rate Rules and Multiple Equilibria in the Small Open Economy

Author:
Luis-Felipe Zanna
Publication Date:
12-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
In a small open economy model with traded and non-traded goods this paper characterizes conditions under which interest rate rules induce aggregate instability by generating multiple equilibria. These conditions depend not only on how aggressively the rule responds to inflation, but also on the measure of inflation to which the government responds, on the degree of openness of the economy and on the degree of exchange rate pass-through. As an important policy implication, this paper finds that to avoid aggregate instability in the economy the government should implement an aggressive rule with respect to the inflation rate of the sector that has sticky prices. That is the non-traded goods inflation rate. As a by-product of this analysis, it is shown that "fear-of-floating" governments that follow a rule that responds to both the CPI-inflation rate and the nominal depreciation rate or governments that implement "super-inertial" interest rate smoothing rules may actually induce multiple equilibria in their economies. This paper also shows that for forward-looking rules, the determinacy of equilibrium conditions depends not only on the degree of openness of the economy but also on the weight that the government puts on expected future CPI-inflation rates. In fact rules that are "excessively" forward-looking always lead to multiple equilibria.
Topic:
International Relations, Economics, Government, and International Trade and Finance

54339. Productivity Growth and the Phillips Curve in Canada

Author:
Joseph W. Gruber
Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This study examines the impact of productivity growth on the relationship between inflation and unemployment in Canada. Recently it has been suggested that higher productivity growth is responsible for a shift in the U.S. Phillips curve that occurred in the late 1990s. This paper examines whether the Phillips curve in Canada shifted in a manner similar to that of the United States, and the degree to which higher productivity growth explains this shift.
Topic:
International Relations, Economics, and Industrial Policy
Political Geography:
Canada and North America

54340. Report of the Defense Science Board Task Force on DoD Roles and Missions in Homeland Security

Publication Date:
11-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
The United States faces stealthy adversaries who have demonstrated both motives and means to inflict grave damage on the U.S. homeland. The nation's strategy in response to this type of adversary is clear: engage the threat as far as possible from the U.S. homeland, on its turf. This approach requires a multi-agency governmental effort, with the Department of Defense playing a major role.
Topic:
Defense Policy and Science and Technology
Political Geography:
United States

54341. The High-Frequency Response of Exchange Rates and Interest Rates to Macroeconomic Announcements

Author:
John H. Rogers, Jonathan H. Wright, Jon Faust, and Shing-Yi B. Wang
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Many recent papers have studied movements in stock, bond, and currency prices over short windows of time around macro announcements. This paper adds to the announcement effects literature in two ways. First, we study the joint announcement effects across a broad range of assets--exchange rates and U.S. and foreign term structures. In order to evaluate whether the joint effects can be reconciled with conventional theory, we interpret the joint movements in light of uncovered interest rate parity or changes in risk premia. For several real macro announcements, we find that a stronger than expected release appreciates the dollar today, but that it must either (i) lower the relative risk premium for holding foreign currency rather than dollars, or (ii) imply considerable future expected dollar depreciation. The latter implies an overshooting behavior akin to that described by Dornbusch (1976). Second, we use a longer span of high frequency data than has been common in announcement work. A longer span of high frequency data contributes to the precision of our estimates and allows us to explore the possibility that the effects of macro surprises on asset prices have varied over time. We find evidence, for example, that PPI releases had a larger effect on U.S. interest rates before about 1992 than subsequently.
Topic:
International Relations, Economics, Government, and International Trade and Finance
Political Geography:
United States

54342. Market Power and Inflation

Author:
David Bowman
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper examines the extent to which a decline in market power could have contributed to the general decline in inflation rates experienced in developed countries during the 1990s.
Topic:
International Relations, Economics, Government, and International Trade and Finance

54343. Productive Capacity, Product Varieties, and the Elasticities Approach to the Trade Balance

Author:
Joseph E. Gagnon
Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Most macroeconomic models imply that faster output growth tends to lower a country's trade balance by raising its imports with little change to its exports. Krugman (1989) proposed a model in which countries grow by producing new varieties of goods. In his model, faster-growing countries are able to export these new goods and maintain balanced trade without suffering any deterioration in their terms of trade. This paper analyzes the growth of U.S. imports from different source countries and finds strong support for Krugman's model.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States

54344. Iraq and Afghanistan - Administration's Supplemental Funding Request

Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Two years ago, we responded to attacks on America by launching a global war against terrorism that has removed gathering threats to America and our allies and has liberated the Iraqi and Afghan people from oppression and fear.
Topic:
Security, Defense Policy, and Economics
Political Geography:
Afghanistan, Iraq, America, and Middle East

54345. Business Combinations Desk Book

Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Department of Defense (DoD) research, development, and acquisition policies, funding and program decisions, have a major impact on competition and industry transformation. DoD assessments of proposed business combinations (generally, domestic and foreign firm mergers, acquisitions, and joint ventures) must complement such policies and decisions to sustain credible competition in an evolving industrial environment.
Topic:
Defense Policy, Development, Industrial Policy, and Science and Technology

54346. Report of the Defense Science Board Task Force on Joint Experimentation, Phase 1

Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
The Defense Science Board (DSB) Task Force on Joint Experimentation was established to examine the joint experimentation programs and activities at the Joint Forces Command (JFCOM) and to recommend ways to enhance the contributions of joint experimentation to transformation. The Task Force assessed the goals, process, and substance of JFCOM's experimentation program. The Task Force also provided an external review of the Millennium Challenge 02 (MC02) experiment.
Topic:
Security, Defense Policy, and Development
Political Geography:
United States

54347. Report of the Defense Science Board Task Force on The Role and Status of Red Teaming Activities

Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
The Task Force was charged to examine the use of red teams in the Department of Defense and recommend ways that such teams could be of greater value to the department. Our Terms of Reference and task force membership are provided in Appendices 1 and 2.
Topic:
International Relations, Security, and Defense Policy
Political Geography:
United States

54348. Forecasting U.S. Inflation by Bayesian Model Averaging

Author:
Jonathan H. Wright
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Recent empirical work has considered the prediction of inflation by combining the information in a large number of time series. One such method that has been found to give consistently good results consists of simple equal weighted averaging of the forecasts over a large number of different models, each of which is a linear regression model that relates inflation to a single predictor and a lagged dependent variable. In this paper, I consider using Bayesian Model Averaging for pseudo out-of-sample prediction of US inflation, and find that it gives more accurate forecasts than simple equal weighted averaging. This superior performance is consistent across subsamples and inflation measures. Meanwhile, both methods substantially outperform a naive time series benchmark of predicting inflation by an autoregression.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States

54349. Bayesian Model Averaging and Exchange Rate Forecasts

Author:
Jonathan H. Wright
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Exchange rate forecasting is hard and the seminal result of Meese and Rogoff (1983) that the exchange rate is well approximated by a driftless random walk, at least for prediction purposes, has never really been overturned despite much effort at constructing other forecasting models. However, in several other macro and financial forecasting applications, researchers in recent years have considered methods for forecasting that combine the information in a large number of time series. One method that has been found to be remarkably useful for out-of-sample prediction is simple averaging of the forecasts of different models. This often seems to work better than the forecasts from any one model. Bayesian Model Averaging is a closely related method that has also been found to be useful for out-of-sample prediction. This starts out with many possible models and prior beliefs about the probability that each model is the true one. It then involves computing the posterior probability that each model is the true one, and averages the forecasts from the different models, weighting them by these posterior probabilities. This is effectively a shrinkage methodology, but with shrinkage over models not just over parameters. I apply this Bayesian Model Averaging approach to pseudo-out-of-sample exchange rate forecasting over the last ten years. I find that it compares quite favorably to a driftless random walk forecast. Depending on the currency-horizon pair, the Bayesian Model Averaging forecasts sometimes do quite a bit better than the random walk benchmark (in terms of mean square prediction error), while they never do much worse. The forecasts generated by this model averaging methodology are however very close to (but not identical to) those from the random walk forecast.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States

54350. Revisiting the Border: An Assessment of the Law of One Price Using Very Disaggregated Consumer Price Data

Author:
John H. Rogers, Shing-Yi B. Wang, and Charles M. Engels
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We reexamine the evidence for border effects in deviations from the law of one price, using data for consumer prices from Canadian and U.S. cities. The study parallels Engel and Rogers (1996), except that this study uses actual price data rather than price index data. We find evidence of border effects both in the levels of prices and the percentage change in prices. Even accounting for distance between cities and relative population sizes, we find that the absolute difference between prices in the U.S. and Canada in our data (annual from 1990 to 2002) is greater than seven percent. This difference exists among tradables and nontradables, though for some categories of tradables (clothing and durables) the difference is smaller. The findings are similar for annual changes, though the magnitude is smaller: the border accounts for a difference in 1.5 percent in annual (log) price changes. Relative population sizes and distance are helpful in explaining price level differences (between Canadian and U.S. cities) for traded goods, but are less helpful in explaining price level differences for nontraded goods or for accounting for differences in price changes for either traded or nontraded goods.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
Canada and North America