Pasinetti,Keynes and the multiplier

This paper explores the relationship between the Keynesian multiplier and Pasinetti's model of pure production. Key assumptions of Pasinetti's model are its multisectoral structure, the definition of all income as a reward to labouring activities and, as a consequence, the operation of a pure labour theory of value. A translation between these models is effected by introducing investment as an exogenous determinant. By drawing from Keynes to apply his concept of the wage unit, it is possible to aggregate from Pasinetti's multisectoral model to a genuinely macroeconomic multiplier. This provides a way of using the scalar Keynesian multiplier without making the restrictive one-commodity assumption. In addition, this formal demonstration enhances our understanding of the relationship between the wage unit and the labour theory of value. Finally, critics have argued that Pasinetti downgrades the importance of institutional analysis; in contrast, the derivation of a scalar Keynesian multiplier contributes to an understanding of how relevant Pasinetti's approach is to the analysis of a monetary production economy.     

The division of labour and industrial diversity: flexibility and mass production in the French automobile industry

Much of the debate about changing paradigms of production in industry has tended to oppose mass production to emerging forms of flexible, or network production. The debate over these competing visions is clouded by all manner of definitional ambiguities. In a given branch of production, the two strategies of mass and flexible production, and many intermediate forms of production organization, may coexist, because the branch ties together many different types of firms and different types of production units. This article develops a theoretical typology of different kinds of products and the production processes with which they are associated, and then deploys it in a case study of the French automobile industry in the 1980s. The branch is thus a complex structure of relationships between different firms and units and the different models of production organization they employ. Co-ordination of relationships between different approaches to production is a key to successful branch governance, and to emerging branch structures today.     

Flexible Exchange Rates-Twelve Years After-Are There Alternatives?

The article reviews the performance of flexible exchange rates in the last twelve years and considers whether there are any real alternatives to the present regime. It first presents an 'idealised' version of what flexible exchange rates were sup posed to do; it then shows how different the reality has been. The article evaluates, in some detail, two claims made for the flexible exchange rate system: that nominal rates would tend to move in line with relative prices and with other changes in fundamentals and that it would provide macroeconomic independence. The article concludes by providing a framework in terms of cost-benefit analysis for the evaluation of alternative exchange rate regimes.     

Joan Robinson as a teacher

Sraffa's construct, the standard commodity, responds to Ricardo's search for an ‘invariable’ measure of value, since it is a measurement unit invariant to changes in distribution. But Sraffa suggests that there is no ‘counterpart,’ no analogous search or needed construct, for the ‘problem’ of ‘difference’ as distinct from change (‘why two commodities produced by the same quantities of labour are not of the same exchangeable value’). Difference in this sense is crucial to Marx, who distinguishes value and surplus-value from capitalist price and profit in part in order to theorize differences as systematic value transfers. In that effort, Marx repeatedly poses commodities and capitals as ‘aliquot parts’ of the whole, so that profit is a redistributed share of aggregate surplus-value. This paper shows that, when Marx's aliquot part imagery is formalized, the resulting hypothetical system represents a meaningful ‘counterpart,’ a construct with a function in Marx's analysis of difference comparable to that of Sraffa's standard commodity in analyzing distributional change. A Marxian ‘standard system’ posing each commodity as an aliquot part of the social capital (a) defines the needed labor-time unit of social account by homogenizing heterogeneous concrete labors as socially average (‘abstract’) labor while simultaneously (b) allowing the derivation of exchange-value (e.g., capitalist production price) on that scale via summation of directly and indirectly embodied labor. Indeed, Marx's approach to production prices as resulting from an inter-industry redistribution of aggregate surplus-value is shown to be algebraically identical to the calculation of labor-embodied under ‘aliquot part’ production conditions.     

浅析产业集群下的“苏州模式”

“苏州模式”是随着苏州经济的飞速发展而渐入人们的视野。但究竟什么是“苏州模式”，至今没有一个权威统一的概念。从产业集群理论出发，从集群产生和演化方面分析，可以得出苏州模式政府主导的嵌入型特点；通过分析苏、温两地产业集群的主体，得出苏州模式下外资电子信息产业集聚的事实；从分析生产方式入手，得出了苏州刚性生产的特性，通过分析集群内企业网络特点。结论是苏州模式大致有契约性、区外网络和“核”状网络等特点。     

滨海湿地生态系统服务及其价值评估——以胶州湾为例

选择胶州湾湿地作为研究区域,研究了其生态系统服务的类型并评估了各类生态系统服务价值。结果表明:2009年胶州湾湿地生态系统服务总价值为152.71×107元。其中,食品生产占56.57%,这表明胶州湾湿地物质产品供给占重要地位。其次调节功能占36.12%,在胶州湾湿地生态系统中也发挥重要作用。研究只对胶州湾湿地主要生态系统服务开展了评估,因此仅为一个保守估计。     

The market process of capitalization: a laboratory experiment on the effectiveness of private information

The notion of present value is an integral part of economics. So far, however, its rationale rests upon the well-known neoclassical assumptions of complete information and perfect rationality. The present value derives as the result of a calculation that requires the knowledge of the discount rate and the future returns of the evaluated assets. This paper presents a laboratory experiment that demonstrates that the present value of assets can also be discovered by participants of a production process endowed with incomplete information. The knowledge concerning future returns is not given to any one, but dispersed among the participants who, in addition, have no idea of their position in the production chain. In accordance with Hayek’s theory of the market process as a discovery procedure, the present value is found without any one subject being able to determine it individually.     

Wood Fuel or Carbon Sink? Aspects of Forestry in the Climate Question

This paper discusses and contrasts two mainroles of forestry in light of the debate on theglobal climate. As the main problem is relatedto the increases of the CO₂-concentrationin the atmosphere, forests may be viewed aspart of the alleviation of the problem throughtheir function as (i) a source of biomass forenergy production, which may replace fossilfuels and thus indirectly reduceCO₂-emissions, and as (ii) carbon storage,since a growing forest extracts atmosphericCO₂ and fixes it as carbon in biomass. Inthe Scandinavian forestry, logging residues areincreasingly being used for energy production.In this paper the value of forests as a sourceof bioenergy is added to the traditional timbervalue. Formulated as a joint production modelwithin the Faustmann framework, the effect ofthis addition on the optimal rotation length isdiscussed. Based on data for spruce, thedominant species in the Scandinavian forestry,it is demonstrated that the rotation length isshortened compared to the standard Faustmannmodel. Shorter rotation length implies lesscarbon storage. Therefore, in this modelwithout explicit regard to the social carbonstorage value of the forest, the gains in termsof the climate problem from utilisation offorest biomass for energy production are beingdiminished by the value of reduced carbonstorage. The carbon value of the forest is thenadded to complete the model, with the effect ofincreasing the rotation length, a result thatis well known in the literature. Finally, theempirical effects of the interaction of thesetwo climate-related value elements of theforest are discussed.     

Elementary results on solutions to the bellman equation of dynamic programming: existence,uniqueness, and convergence

We establish some elementary results on solutions to the Bellman equation without introducing any topological assumption. Under a small number of conditions, we show that the Bellman equation has a unique solution in a certain set, that this solution is the value function, and that the value function can be computed by value iteration with an appropriate initial condition. In addition, we show that the value function can be computed by the same procedure under alternative conditions. We apply our results to two optimal growth models: one with a discontinuous production function and the other with “roughly increasing” returns.     

Strategic Choice of Quantity Stickiness and Stackelberg Leadership

This paper re‐examines endogenous Stackelberg leader–follower relations by modelling an explicitly dynamic market. We analyze a twice‐repeated duopoly where, in the beginning, each firm chooses either a quantity‐sticky production mode or a quantity‐flexible production mode. The size of the market becomes observable after the first period. In the second period, a firm can adjust its quantity if and only if it has adopted the flexible mode. Hence, if one firm chooses the sticky mode whilst the other chooses the flexible mode, then they respectively play the roles of a Stackelberg leader and a Stackelberg follower in the second marketing period. Somewhat intriguing is the finding that such a Stackelberg‐like equilibrium can arise only when the relative weight of the pre‐Stackelberg first marketing period is sufficiently high, with time preferences being sufficiently strong.     

Wage bargaining,trade and growth

We construct a North-South product-cycle model of trade with fully-endogenous growth and union wage bargaining. Economic growth is driven by Northern entrepreneurs who conduct R&D to innovate higher quality products. Northern production technologies can leak to the South upon successful imitation. The North has two sectors: a tradable industrial goods sector (manufacturing) where wages are determined via a bargaining process and a non-tradable sector (services) where wages are flexible. The South has only a tradable industrial goods sector where wages are flexible.We find that unilateral Northern trade liberalization, in the form of lower Northern tariffs on industrial goods, increases the rate of innovation but decreases both the bargained wage in the industrial sector and the flexible wage in the service sector. The wage effects are relative to the Southern wage rate. We also consider a variant of the model with Northern unemployment, driven by a binding minimum wage in the non-tradable service sector. In this case, Northern tariff cuts decrease the innovation rate and the bargained wage rate. In addition, the Northern unemployment rate increases. The model thus highlights the role of labor market institutions in determining the growth and labor market effects of tariff reductions. We also study the effects of unilateral Southern trade liberalization.     

Economic valuation of the vulnerability of world agriculture confronted with pollinator decline

There is mounting evidence of pollinator decline all over the world and consequences in many agricultural areas could be significant. We assessed these consequences by measuring 1) the contribution of insect pollination to the world agricultural output economic value, and 2) the vulnerability of world agriculture in the face of pollinator decline. We used a bioeconomic approach, which integrated the production dependence ratio on pollinators, for the 100 crops used directly for human food worldwide as listed by FAO. The total economic value of pollination worldwide amounted to €153 billion, which represented 9.5% of the value of the world agricultural production used for human food in 2005. In terms of welfare, the consumer surplus loss was estimated between €190 and €310 billion based upon average price elasticities of − 1.5 to − 0.8, respectively. Vegetables and fruits were the leading crop categories in value of insect pollination with about €50 billion each, followed by edible oil crops, stimulants, nuts and spices. The production value of a ton of the crop categories that do not depend on insect pollination averaged €151 while that of those that are pollinator-dependent averaged €761. The vulnerability ratio was calculated for each crop category at the regional and world scales as the ratio between the economic value of pollination and the current total crop value. This ratio varied considerably among crop categories and there was a positive correlation between the rate of vulnerability to pollinators decline of a crop category and its value per production unit. Looking at the capacity to nourish the world population after pollinator loss, the production of 3 crop categories - namely fruits, vegetables, and stimulants - will clearly be below the current consumption level at the world scale and even more so for certain regions like Europe. Yet, although our valuation clearly demonstrates the economic importance of insect pollinators, it cannot be considered as a scenario since it does not take into account the strategic responses of the markets.     

Reallocation and learning over the business cycle

This paper shows how cyclical aggregate shocks can stimulate structural reallocation activities, which in turn amplify the effect of the shock. It analyses the informational aspects of restructuring activities and their interplay with aggregate shocks. A model is developed in which production units are uncertain about the value of staying in the market and learn about it over time in a Bayesian fashion. In addition to their own private assessment, they can also learn from observing other units’ decisions. Given that adjusting is costly, each unit has an incentive to delay action and wait for other players to act in order to make a better informed decision. If delay is more costly in a downturn, a negative aggregate shock can break the inertia and induce the most pessimistic agents to exit. The information released by such actions will induce more action, thus generating a burst in restructuring activities that reinforces the initial effect of the aggregate shock. This process of information accumulation and revelation offers both a powerful amplification mechanism of relatively modest aggregate shocks and a potential explanation of why restructuring tends to be concentrated in recessions.     

铜炉渣破磨系统节能改造

基于铜炉渣破磨系统的生产现状,采用400×900mm破碎机和滚动主轴承的新型溢流球磨机,改造现有二段磨渣(矿)生产系统,结果磨渣产品粒度更符合要求,处理量翻一番,破磨单耗由35kwh/t下降到7.5kwh/t左右,并大幅度减少钢球、材料和备件的消耗。     

Skills,Tasks and the Scarcity of Talent in a Global Economy

The scarcity of talent is a tremendous challenge for firms in the globalized world. This paper investigates the role of labor market imperfection in open economies for the usage of talent in the production process of firms. For this purpose, I set up a heterogeneous firms model, where production consists of a continuum of tasks that differ in complexity. Firms hire low‐skilled and high‐skilled workers to perform these tasks. How firms assign workers to tasks depends on factor prices for the two skill types and the productivity advantage of high‐skilled workers in the performance of complex tasks. I study the firms’ assignment problem under two labor market regimes, which capture the polar cases of fully flexible wages and a binding minimum wage for low‐skilled workers. Since the minimum wage lowers the skill premium, it increases the range of tasks performed by high‐skilled workers, which enhances the stock of knowledge within firms to solve complex tasks and reduces the mass of active firms. In a setting with fully flexible wages trade does not affect the firm‐internal assignment of workers to tasks. On the contrary, if low‐skilled wages are fixed by a minimum wage, trade renders high‐skilled workers a scarce resource and reduces the range of tasks performed by this skill type with negative consequences for the human capital stock within firms. In this case, trade leads to higher per‐capita income for both skill types and thus to higher welfare in the open than in the closed economy, whereas – somewhat counter‐intuitive – inequality between the two skill types decreases, as more low‐skilled workers find employment in the production process.     

An optimal production method for penetrating foreign markets: Standardization,localization, and flexible technology

This paper examines firms' production strategies for supplying products tailored to the target country's local taste: developing a new localized variety and modifying an existing variety to fit the local taste. Adopting the concept of the flexible technology in industrial organization theory, the paper develops a simple theoretical model to examine when and why exporters or multinationals adopt flexible technologies to serve multiple markets. The results suggest that firms with basic varieties that are considerably different from the variety demanded by the local country are likely to develop localized varieties to serve the country, whereas those with basic varieties that are considerably similar to the demanded variety are likely to modify their existing varieties. In some circumstances, even when foreign production has an intrinsic cost advantage over exporting before the application of a flexible technology, firms may choose to be exporters by adopting the technology. In addition, the results indicate a possible industry equilibrium: Firms with basic varieties that are considerably similar to the variety demanded by the local country are likely to modify them and become multinationals, whereas those with basic varieties that are considerably different from the demanded variety are likely to develop new localized products and become multinationals. Otherwise, firms are likely to modify their existing platforms and become exporters.     

Quantity-cum-quality contests

Quality and quantity are very common features of production processes. People care about these two features and they tend to be connected. I consider a contest in which the quantity and quality of output are rewarded. The output in the quality contest plays a dual role. It counts in the quality contest but it is also converted into quantity-equivalent output to obtain total output in the quantity contest. This latter feature implies that the two contests are interlinked. I find that when the unit cost of producing quality is sufficiently high, then treating quality and quantity as the same has a disincentive effect on the production of quality. In contrast, when the unit cost of producing quality is sufficiently low, treating quality and quantity as the same has no disincentive effect on the production of quality. I also find an equilibrium in which no one exerts effort in the quantity contest. When there is a binding budget constraint on effort, I find that effort in the quantity contest is smaller relative to the unconstrained case but effort in the quality contest may remain unchanged.     

Product mix,transactions and cost behaviour: a study of South African bank branches

This paper utilizes microeconomic theory and a panel data set to assess the impact of product mix and transactions on cost behaviour of bank branches in South Africa over the short and long‐term. Estimates of properties of concavity and monotonocity indicate that the cost functions of typical bank branches in South Africa are neither consistent with short‐term nor long‐term cost‐minimizing behaviour. This corroborates earlier findings which indicate that South African banks have low production efficiency and high market power. In addition the cost functions and two production‐output type indices indicate that overall, the intermediation‐output type mix (foreign exchange and custodial services) has a more significant effect on cost behaviour than the production‐output type mix (cheque and deposit accounts). The variety of production‐output type services provided by a branch appears to have limited effect on costs. However the financial value of production‐output type transactions has an impact on costs while the financial value of intermediation type products does not. Branches that provide intermediation‐output type products tend to have higher variable costs – the key determinant of costs is the number of transactions.     

中国工业化与信息化融合质量:理论与实证

本文构建完全竞争和不完全竞争条件下的工业化与信息化融合模型,将随机前沿分析方法应用于工业化与信息化融合研究,以2000-2009年中国31个省市面板数据探讨中国工业化与信息化融合质量并发现:首先,融合具有周期大约为5年的间断平衡性,信息化带动工业化路径与两者融合的相关性高于工业化促进信息化路径,工业化和信息化对各自理想水平的偏离呈交替波动等三个主要特点;其次,融合对中国转变经济增长方式、三次产业结构调整、降低单位GRP电力消费和能耗有不同程度的影响。融合水平每增加一个点(以百分计),人均GRP可增长0.06%;融合可显著减少第一产业的产值比重,促使第一产业向第二或第三产业转移;融合可减少单位地区生产总值电力消费和能源消耗,但这种影响很小,不具统计显著性。     

Flexible Fourier unit root test of unemployment for PIIGS countries

In this empirical study, we apply the flexible Fourier unit root test proposed by Enders and Lee (2012) to re-examine the hysteresis hypothesis of unemployment for PIIGS (Portugal, Ireland, Italy, Greece, and Spain) countries over the period from 1960 to 2011. We find that the Fourier unit root test has greater power than a linear method if the true data generating process of unemployment is a stationarity, non-linear process of an unknown form with structural change. The hysteresis in unemployment is confirmed for all PIIGS countries, with the exception of Portugal and Spain, when the Fourier unit root test is conducted.