Persistent Unemployment and Policy Uncertainty: Numerical Evidence from a New Approach

In the recovery from the United States’ 2009 recession, unemployment has proven resistant to both aggressive fiscal policy and expansionary monetary policy. A possible explanation is the policy cost uncertainty hypothesis. This holds that managers of private firms have been rationally avoiding hiring workers in the years after 2010 because of the risk of higher future costs imposed by government policies. However, such a hypothesis cannot be directly tested in standard models of firm behavior. Thus, to formally test the policy cost uncertainty hypothesis, we use a novel “value functional” or “recursive” model of firm behavior, in which managers maximize the value of the business rather than its profits. Using this approach, we demonstrate that policy cost uncertainty affects the hiring decisions of firms, that the response to policy uncertainty is higher in some industries than others, and that the scale of the firm also affects its sensitivity to policy risk. This approach has potentially broad application within business economics, particularly in evaluating investment and hiring decisions; real options; and other aspects of uncertainty, fixed costs, and managerial flexibility.     

试析美国的收入分配政策

本文认为,分配目标并不是决定美国经济政策的首要因素,但这些经济政策不可避免地会对社会分配格局产生影响.20世纪80年代以来,美国的税收政策和社会保障政策对收入分配产生了一定的影响,但是从严格意义上来说,收入分配问题只是在政府曾对其采取过认真对策这一点上,才可将其理解为政策问题.     

A Survey Study of Japanese Managers' Views of Business Ethics

In the United States, a series of survey studies have been done to examine corporate managers' views of business ethics and various business practices (Baumhart, 1961; Brenner and Molander, 1977; Vitell and Festervand, 1987). This paper is a replication study conducted in Japan of those American studies. The results of the study suggest that Japanese managers tend to be more situational in their ethical orientation than Americans. The results also show that the company policy on ethics is the most important factor influencing Japanese managers' ethical decisions.     

美国支持中小企业科技创新的政策体系及其借鉴

企业创新是各国经济增长的主要推动力,美国支持中小企业科技创新的政策已经形成了比较完备的体系,在立法支持、财政与税收支持以及创新服务支持等方面积累了丰富的成功经验。我国中小企业创新发展对建立"创新型国家"战略目标的实现具有重要意义,通过梳理美国支持中小企业科技创新的政策体系,分析提炼其主要特征,力图为我国中小企业科技创新提供有益的政策借鉴。     

Computational Analysis of the Menu of US‐Japan Trade Policies

We have used the Michigan Computable General Equilibrium (CGE) Model of World Production and Trade to calculate the aggregate welfare and sectoral employment effects of the menu of US‐Japan trade policies. The menu of policies encompasses the various preferential US and Japan bilateral and regional free trade agreements (FTAs) negotiated and in process, unilateral removal of existing trade barriers and global (multilateral) free trade. The welfare impacts of the FTAs on the United States and Japan are shown to be rather small in absolute and relative terms. The sectoral employment effects are also generally small but vary across the individual sectors depending on the patterns of the bilateral liberalisation. The welfare effects on the FTA partner countries are mostly positive though generally small, but there are some indications of potentially disruptive employment shifts in some partner countries. There are indications of trade diversion and detrimental welfare effects on non‐member countries for some of the FTAs analysed. In comparison to the welfare gains from the US and Japan bilateral FTAs, the gains from both unilateral trade liberalisation by the United States, Japan and the FTA partners, and from global (multilateral) free trade are shown to be rather substantial and more uniformly positive for all countries in the global trading system. The US and Japan FTAs are based on ‘hub’ and ‘spoke’ arrangements. We show that the spokes emanate out in different and often overlapping directions, suggesting that the complex of bilateral FTAs may create distortions of the global trading system.     

Multilateral,Regional and Bilateral Trade‐Policy Options for the United States and Japan

We have used the Michigan Model of World Production and Trade to simulate the economic effects on the United States, Japan, and other major trading countries/regions of the Doha Round of WTO multilateral trade negotiations and a variety of regional/bilateral free trade agreements (FTAs) involving the United States and Japan. We estimate that an assumed reduction of post‐Uruguay Round tariffs and other barriers on agricultural and industrial products and services by 33 per cent in the Doha Round would increase world welfare by $686.4 billion, with gains of $164.0 billion for the United States, $132.6 billion for Japan, and significant gains for all other industrialised and developing countries/regions. If there were global free trade with all post‐Uruguay Round trade barriers completely removed, world welfare would increase by $2.1 trillion, with gains of $497.0 billion (5.5 per cent of GNP) for the United States and $401.9 billion (6.2 per cent of GNP) for Japan. Regional agreements such as an APEC FTA, an ASEAN Plus 3 FTA, and a Western Hemisphere FTA would increase global and member country welfare but much less so than the Doha multilateral trade round would. Separate bilateral FTAs involving Japan with Singapore, Mexico, Chile and Korea, and the United States with Chile, Singapore and Korea would have positive, though generally small, welfare effects on the partner countries, but potentially disruptive sectoral employment shifts in some countries. There would be trade diversion and detrimental welfare effects on some non‐member countries for both the regional and bilateral FTAs analysed. The welfare gains from multilateral trade liberalisation are therefore considerably greater than the gains from preferential trading arrangements and more uniformly positive for all countries.     

Transition Ethics: A Comparison of Ukrainian and United States Business Professionals

This article compares the ethical attitudes of Ukrainian business professionals with those of United States business professionals. A widely used survey instrument consisting of 16 hypothetical situations involving ethical dilemmas was employed to gather information on ethical attitudes in the two countries. On 13 of 16 vignettes, Ukrainian respondents demonstrated less stringent ethical attitudes than did their United States counterparts. Possible reasons for these differences are discussed, with primary emphasis on the transition from one economic system to another that is underway in Ukraine. Comments from Ukrainian respondents are presented so as to give an indication of the thought processes behind the questionnaire responses. Olena Vynoslavska is Head of Psychology and Pedagogics Chair at the National Technical University of Ukraine, Kyiv. She has been a research scholar under the sponsorship of the International Research and Educational Exchange program of the United States Department of State at Baylor University. Her research has included international comparative studies of entrepreneurship and management techniques. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor or research scholar to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development. Justin G. Longenecker is Emeritus Professor of Management at Baylor University. His research interests include business ethics, entrepreneurship, and family business. He is co-author of the leading text on small business management, and is the author of scholarly articles on various aspects of business management.     

I Say Tomato,You Say Domate:Differential Reactions to English-only Workplace Policies by Persons from Immigrant and Non-immigrantFamilies

Immigrants now compose approximately 12 of the population of the United States and a sizable proportion of the workforce. Yet in contrast to research on other traditionally under-represented groups (e.g., women, African Americans), there are relatively few studies on issues related to being an immigrant in the U.S. workforce. This study examined English-only workplace policies, focusing on reactions to business justifications – explanations that justify managerial decisions as business necessities – for these policies. We contrasted the reactions of individuals coming from immigrant families, where at least one parent was an immigrant to the U.S., with those of persons from non-immigrant families. Results of an experiment indicated that business justifications were successful in influencing the attitudes of non-immigrants toward the English-only policies, but did not influence the attitudes of individuals from immigrant families. Probing the reasons for this effect, a thought-listing protocol suggested that non-immigrants mentioned more of the business benefits of the English-only policy than did individuals from immigrant families. Further, business justifications for the English-only policy led individuals from immigrant families, but not those from non-immigrant families, to view the organization as being less ethical and less concerned with the welfare of its workers. The implications of messages from management being understood differently by different demographic groups are discussed.     

What Small Countries Can Teach the World

In the past, various great powers have taken the stage as models of economic and social development. Examples such as Great Britain, the Soviet Union, Japan, and the United States have had their time in the spotlight that has come and gone as flaws were exposed; and other countries have learned what they did well and what they did poorly. The great powers are not the only models, however. Much can be learned from small countries which are often free to experiment with new institutions and new policies. This paper describes lessons that can be learned from such countries though no one size fits all.     

International Bribery: Does a Written Code of Ethics Make a Difference in Perceptions of Business Professionals

This article analyzes the attitudes of United States business professionals toward the issue of international bribery, and in particular, whether or not having a written code of ethics has an effect on these attitudes. A vignette relating to international bribery from a widely used survey instrument was employed in a nationwide survey of business professionals to gather information on ethical attitudes of respondents. Data were also collected on gender of respondents, whether or not respondents were self-employed, whether or not the respondents’ firms had a written code of ethics, and to what extent the respondents’ firms generated revenues from international operations. Attitudes concerning whether or not international bribery is ever acceptable exhibited wide dispersion. Respondents from firms that have a written code of ethics were significantly less likely to find international bribery acceptable. Firms that generate revenues from international operations were significantly more likely to have a written code of ethics than were firms which did not generate revenues from international operations. Implications of the findings for business policy are discussed. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development.     

基于Groupon的中国网络团购运营模式及发展对策研究

中国的网络团购模仿美国Groupon团购模式发展迅速,随之而来也出现很多问题。本文通过对美国Groupon的运营模式和中国网络团购的运营模式比较分析,对目前中国网络团购中存在的主要问题进行分析,并且作出相应的对策研究     

America's economic decline: Evidence and explanations

Changes in international competitiveness since World War II have favored Germany and Japan over France, the United States, and Britain. This applies to competitiveness in general, but is examined in three specific industries: steel, automobiles, and semiconductors. Explanations of changes in competitiveness often focus on economic and cultural variables, but an examination of the three industries shows that a better explanation can be found in the way in which each country organizes its state and society. State-societal arrangements influence competitiveness mainly through their impact on the speed of diffusion of new technologies. The disparate cases of Germany (strong business and labor, weak government) and Japan (strong business and government, weak labor) suggest that there is more than one path to competitiveness. The literature on competitiveness has focused too much on Japan, and therefore on state industrial policies, as the key to increasing competitiveness. The German case shows that increased competitiveness is possible with a relatively weak state, but only if there is a major commitment to upgrading the skill levels of the work force. © 1995 John Wiley & Sons, Inc.     

Networks,Internationalization & Policy

This is the introduction to this special issue of Small Business Economics, dedicated to networks, opportunity, internationalization and policy. As the drivers of globalization are removing barriers, which traditionally segmented the competitive environments of small and large firms, firms of all sizes are joining international networks. Former competitors are now working together and this symbiosis is enhancing competitiveness. Consequently, networking is giving rise to unprecedented opportunities, facilitating internationalization. Simultaneously, new realities are creating the need for new policies.     

Policy Support for Women Entrepreneurs’ Access to Financial Capital: Evidence from Canada,Germany, Ireland,Norway, and the United States

This cross‐country study documents policies and practices designed to increase women entrepreneurs’ access to financial capital in Canada, Germany, Ireland, Norway, and the United States. Drawing on feminist theory, we examine assumptions of policy alongside the eligibility criteria, rules and regulations of practices. Our findings reveal that four of the five country policies examined were predicated on a neo‐liberal perspective that positions women entrepreneurs as economic assets. We offer insights into opportunities for modernizing policies and practices in ways that will enhance the legitimacy of a more diverse array of women entrepreneurs and increase their access to financial capital.     

Farming down the drain: Unintended consequences of the Food Safety Modernization Act’s Produce Rule on small and very small farms

The Food Safety Modernization Act of 2011 (FSMA) was the first significant reform in 70 years of the food production regulations governing the safety of human and animal foods produced for consumption in the United States. FSMA intended to provide policies that proactively prevent foodborne illnesses, establish science-based food safety standards, and include supply chain partners to ensure systematic prevention of foodborne illnesses. Yet these intentions may also drive small farms out of business, create food supply shortages, stifle food innovation, and harm the environment and consumer health. We propose that policy makers and managers consider reducing unnecessary documentation requirements, incentivizing innovative food technologies that improve food safety, improving the capacity and efficiency of testing labs, and increasing consumer awareness of food safety.     

Regulation and Competition Policy in Britain and Europe

John Redwood MP, Minister for Corporate Affairs in 1991, spoke at the inaugural LSE Business Performance Lecture about regulation and competition policy in Britain and Europe and the importance of the United Kingdom's programme of privatisation and liberalisation of its markets. These policies - harnessing private capital, opening up markets to competition, breaking monopolies, lowering taxation and encouraging inward investment - have succeeded in changing the fortunes of several crucial industries in Britain. Ultimately however, while government can create the climate, it is up to business to compete, back the right ideas, invest, train its people and know what its customers want.     

A market-level model of relationship regulation

This research examines the moderating effects public policy has on relationship strength in a relationship marketing context. Prior research suggests that many positive outcomes emerge from forming inter-firm relationships, yet few examine potential negative outcomes such as anti-competitive behavior. This paper examines what happens to both positive and negative outcomes, when close inter-firm relationships are regulated directly by public policy. It is found that regulations intended to protect consumers and small retailers from anti-competitive behavior are effective in reducing the negative outcomes of such behavior, yet they simultaneously have an unintended effect of dampening the positive outcomes that close inter-firm relationships provide.     

The impact of post-9/11 visa policies on travel to the United States

American and foreign businesses, politicians, and media have all pointed to post-9/11 changes in visa policies as being responsible for the sharp decline in travel to the United States following the attacks. Using an empirical model which distinguishes the impact of visa policy from economic and country-specific factors, we find that changes in visa policy were not important contributors to the decrease in travel to the United States. Rather, the reduction in entries was largest among travelers who were not required to obtain a visa.     

Data management regulation: Your company needs an up-to-date data/information management policy

Over the next 10 years, the intelligent use of data will become one of the greatest competitive advantages a company can possess. At the same time, the loss or mishandling of data/information is one of the bigger risks facing modern businesses. As consumers become increasingly aware of security issues, and of the value of their data, data/information policy is moving away from the ‘gather-with-consent’ approach toward a model that holds the business accountable at each stage of the process. This fundamental shift in practice will need to be reflected in the data/information management policy of the business. Yet, many companies lack up-to-date data/information policies and few recognize the growing influence of the European Union on the manner of data/information handling. This installment of Business Law & Ethics Corner seeks to assist in the development of new policy by explaining key legislative and policy initiatives in both the United States and the European Union, and by making data management policy recommendations.     

Industrial Policy in the United States

Does US government policy purposefully benefit particular industries or is industrial policy absent in the USA? Based on a review of recent US policies this paper argues that the USA applies many policies with an industry-specific impact. But these policies do not differ significantly from those in other countries and the process in which US industrial policies emerge severely limits their consistency. What differentiates the USA is a microeconomic business environment that enables a high degree of regional specialization, benefits especially knowledge-driven industries, and raises the impact of innovation and entrepreneurship policies.