Knowledge that Transforms

Abhijit Banerjee of Massachusetts Institute of Technology reviews “How to Spend $50 Billion to Make the World a Better Place” by Bjorn Lomborg,. The EconLit Abstract of the reviewed work begins “Nine papers, resulting from the Copenhagen Consensus conference held in May 2004, explore various aspects of the debate regarding global priorities, focusing on some of the world's most pressing challenges, what can be done, how much it will cost, and what benefits will result. Papers discuss meeting the challenge of global warming (William R. Cline); communicable diseases (Anne Mills and Sam Shillcutt); the challenge of reducing the global incidence of civil war (Paul Collier and Anke Hoeffler); the move toward a new consensus for addressing the global challenge of the lack of education (Lant Pritchett); the challenge of poor governance and corruption (Susan Rose-Ackerman); hunger and malnutrition (Jere R. Behrman, Harold Alderman, and John Hoddinott); population and migration (Philip Martin); the water challenge (Frank Rijsberman); and subsidies and trade barriers (Kym Anderson). Lomborg is Adjunct Professor and Director of the Copenhagen Consensus Center at the Copenhagen Business School. Index.”

Devashish Mitra of Syracuse University, NBER, and IZA reviews “US National Security and Foreign Direct Investment” by Edward M. Graham, David M. Marchick,. The EconLit Abstract of the reviewed work begins “Examines foreign direct investment in the United States and the Exon-Florio Law in the current policy context of post-9/11, a worldwide war on terrorism, and new concerns over the economic and political rise of China. Discusses the Exon-Florio Amendment; the economic effects of foreign investment in the United States; national security issues related to investments from China; politicization of the Committee on Foreign Investment in the United States process; and improving the implementation of Exon-Florio. Graham is Senior Fellow at the Institute for International Economics and Adjunct Professor at Columbia University. Marchick is a partner with Covington and Burling. Index.”

Ronald I. McKinnon of Stanford University reviews “Global Imbalances and the Lessons of Bretton Woods” by Barry Eichengreen,. The EconLit Abstract of the reviewed work begins “Explores the important differences between the Bretton Woods system and the structure of the world economy today. Discusses global imbalances and the lessons of Bretton Woods; the anatomy of the gold pool; how to exit a currency peg--Japan and the end of the Bretton Woods system; and sterling's past, dollar's future. Eichengreen is George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley. Index.”

Marc-Andreas Muendler of University of California, San Diego and CESifo reviews “Multinational Firms, Innovation and Productivity” by Davide Castellani, Antonello Zanfei,. The EconLit Abstract of the reviewed work begins “Explores how and why firms differ in internationalization, innovation, and productivity, and examines the implications of this diversity within industries. Discusses views on multinational firms and innovation; the double network structure of multinational firms--a review of the evidence; heterogeneity and international involvement; heterogeneity across and within multinational firms; multinational firms and spillovers--theoretical, methodological, and empirical issues; and the search for horizontal spillovers from multinationals--the role of firms' heterogeneity. Castellani is Professor of Applied Economics, and Zanfei is Professor of Industrial Economics, at the University of Urbino. Index.”

Alan Woodland of University of Sydney reviews “Measuring the Restrictiveness of International Trade Policy” by James E. Anderson, J. Peter Neary,. The EconLit Abstract of the reviewed work begins “Presents an approach to the problem of measuring trade restrictiveness that builds on the standard theory of policy reform in open economies. Discusses a nontechnical introduction to measuring trade policy restrictiveness; tariff reform in general equilibrium; the trade restrictiveness index (TRI); the mercantilist trade restrictiveness index (MTRI); trade reform, trade restrictiveness, and tariff structure; trade reform with tariffs and quotas; the TRI and MTRI with quotas; alternative economic environments; aggregating trade restrictions in modeling; a general framework for measuring policy restrictiveness; other policy distortions; alternative reference points; quantity aggregates; and measuring trade restrictiveness in a simple computable general-equilibrium model. Anderson is Neenan Professor of Economics at Boston College. Neary is Professor of Political Economy at University College Dublin. Index.”

Anusha Chari of University of Michigan reviews “Boom-Bust Cycles and Financial Liberalization” by Aaron Tornell, Frank Westermann,. The EconLit Abstract of the reviewed work begins “Examines the underlying distortions that affect financial markets in middle-income countries (MICs), how their interaction makes fluctuations in MICs so large in magnitude relative to high-income countries, and why the forces that lead to greater growth also generate financial fragility. Presents a road map that connects the main points of the book. Examines the empirical link between liberalization, growth, and crises. Characterizes economic fluctuations in MICs. Presents evidence on the credit market imperfections prevalent in MICs. Presents policy implications. Tornell is Professor of Economics at the University of California, Los Angeles. Westermann is Professor of Economics at the University of Munich. Index.”

Ilyana Kuziemko of National Bureau of Economic Research reviews “New Foundations of Cost-Benefit Analysis” by Matthew D. Adler, Eric A. Posner,. The EconLit Abstract of the reviewed work begins “Reconceptualizes the idea of cost-benefit analysis (CBA) and presents practical implications for how government agencies should undertake these studies. Discusses the traditional economic case for CBA and why it has failed. Provides philosophical foundations for CBA. Presents a defense of CBA in comparison with alternative decision procedures. Explores the political and institutional context for administrative decision procedures. Describes ways in which textbook CBA needs to be modified. Addresses recurrent objections to CBA. Adler is Professor of Law at the University of Pennsylvania. Posner is Professor of Law at the University of Chicago. Index.”

Susan Skeath of Wellesley College reviews “Getting Your Way: Strategic Dilemmas in the Real World” by James M. Jasper,. The EconLit Abstract of the reviewed work begins “Explores how strategy works in the real world and offers advice on how to employ strategy in various life situations. Analyzes the role of threat in engagements. Studies goals and the diversity of human desires. Examines the kinds of human competencies and physical resources that are helpful in strategic interaction. Considers players as audiences interpreting actions and words. Addresses the arenas within which interaction occurs. Discusses dilemmas and how to think about them. Jasper is editor of Contexts magazine. Index.”

Edwin S. Mills of Northwestern University reviews “Green Cities: Urban Growth and the Environment” by Matthew E. Kahn,. The EconLit Abstract of the reviewed work begins “Explores what is and is not known about the environmental consequences of urban growth. Discusses measuring urban environmental quality; the urban environmental Kuznets curve; income growth and the urban environment--the role of the market; income growth and greener governance; population growth and the urban environment; spatial growth--the environmental cost of sprawl in the United States; and achieving urban and global sustainability. Kahn is Professor of Economics at the Fletcher School at Tufts University. Index.”

Edwin S. Mills of Northwestern University reviews “Don't Call It Sprawl: Metropolitan Structure in the Twenty-First Century” by William T. Bogart,. The EconLit Abstract of the reviewed work begins “Explores the causes and implications of the changing metropolitan structure, placing the current policy debate over urban sprawl into a broader analytical and historical context. Discusses the world of today; making things better--the importance of flexibility; evolving metropolitan structure and urban sprawl; trading places; downtown--a place to work, a place to visit, and a place to live; how zoning matters; love the density, hate the congestion; homogeneity and heterogeneity in local government; and the world of tomorrow. Bogart is Dean of Academic Affairs at York College of Pennsylvania. Index.”