Vol. 1, n.º 1 - January 2002

Editorial Benedict Clements How efficient is education spending in Europe? José Martins Barata Demand for money as financial asset: theory and evidence Jorge Rodrigues Human Development in Sub-Saharan Africa and Official Development Aid José Soares da Fonseca The risk premiums in the Portuguese treasury Bills interest rates

	Article:	How efficient is education spending in Europe?
	Author:	Benedict Clements
	Abstract:	This paper assesses the efficiency of education spending in the European Union. Empirical results from the application of a nonparametric technique for production frontier estimation (Free Disposable Hull ana1ysis) indicate that about 25 percent of education spending is wasteful in the European Union relative to the "best practices" observed in the OECD. The relatively high level of inefficiency in some countries supports the view that efforts to improve educational performance should focus on improving the efficiency of spending, raising educational outlays. Key words: education, efficiency, Europe, Free Disposable Hull.

	Article:	Demand for money as financial asset: theory and evidence
	Author:	José Martins Barata
	Abstract:	In this paper, the demand for money is generalised on the basis of the theory of financial investments and the problem of its elasticity is examined, so as to re-discuss the issue of monetary policy effectiveness in areas of low interest rates. We are concerned to know whether these areas exhibit the high elasticities which some economists assume. The analysis is carried out in the light of both theoretical contributions and acknowledged econometric estimation. In this context the algebraic proof of the money demand function presented in Tobin (1958) is resumed, since this author only presented a graphical solution. This article presents the theoretical background for econometric research as well as a review of the most recent literature on demand for money. First results of econometric estimates with Portuguese data are provided. A Cointegration method was used to estimate long and short-run regressions. Key words: money, demand, cointegration.
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	Article:	Human Development in Sub-Saharan Africa   and Official Development Aid
	Author:	Jorge Rodrigues
	Abstract:	The Human Development concept presented by the UNDP since 1990 introduces a new perspective relating both to the development "evaluation" and the economic policies of international cooperation. The Official Development Aid has undergone some changes, the impact evaluation of which has been made with reference to the concept of growth and using the "orthodox" indicators, and that is why most research studies into aid are not made from the perspective of human development. This study analyses the Human Development Index and Official Development Aid, explaining the concepts and their evolution and examining the situation of Sub-Saharan Africa for the period of 1990-1997. The study tests the correlation between the Human Development Index and Official Development Aid, and finds that Sub-Saharan Africa has not made progress from the perspective of human development and that, moreover, it has fallen even further behind other developing regions. We find a change in the aid to developing countries in the 1990s, but the structure in Sub-Saharan Africa remains the same. Therefore, we conclude that the change does not contribute to improve the condition of under-development in the region. Key words: Development; Human Development, Growth; Aid; Sub-Saharan Africa; Model.

	Article:	The risk premiums in the Portuguese   treasury Bills interest rates
	Author:	José Soares da Fonseca
	Abstract:	One central subject in the literature on the term structure of interest rates is the empirical evidence about risk premiums and their stochastic processes. The traditional theory of the term structure accepted that risk premiums were zero or monotonically increased with the bonds' maturity. Cointegration methods provide a useful tool for obtaining estimations of the long-term mean of risk premiums. For this reason, these methods are applied in the present research to the Portuguese Treasury Bills Interest Rates series from 1990 to 1998, in order to show the nature of stable relationship between interest rates of different terms, and to obtain information about the forward premiums. Key words: treasury bills, risk premiums, cointegration.