Robust estimation and prediction of economic systems: The case of partial structural variability

Prediction of economic and social systems is in general based on the assumption that the structure of the system does not vary over time. Such an assumption is seldom fulfilled. Often, at least some of the behavioral relations of a system are characterized by structural variability. The problem of reduced form estimation and prediction in systems with such partial structural variability is considered in the paper. A robust SF-RF strategy, combining direct, unrestricted and indirect, restricted reduced form estimation, is emphasized. This strategy, as well as more commonly applied alternatives of L ₁- and L ₂-norm estimation, is studied numerically within a small interdependent system with partially occurring, discrete parameter shifts. The different estimation techniques are evaluated with respect to structural form estimation and prediction performance. The study indicates advantages of the SF-RF strategy over considered alternatives.     

Managing in turbulence: how the capacity for resilience influences creativity

How do companies manage to compete in a marketplace marked by turbulence, and not be outcompeted? In our study we assess the resources used to create resilience in organizations and how each of these resources relates to organizational creativity. We show that organizational resilience is positively related to organizational creativity. Specifically, our study highlights that cognitive, emotional, and structural resources are important resources for organizations wanting to become creative. Our results are based upon a pilot in‐depth qualitative case study followed by a survey of medium‐sized firms. The results in our study advance the emergent literature on resilience and on the practical applications of resilience in organizations. From a practical point of view, managers may realize that they have to develop a capacity for resilience (i.e. what they have to do) in order to have a creative organization, but a far bigger challenge is to understand the how; how the capacity for resilience is built. Our research shows that if managers truly want to manage in turbulence and still have a creative organization, they need to put a strong emphasis on the soft skills in the organization, in addition to the structural resources.     

Political participation and entrepreneurial initial public offerings in China

This paper examines the economic consequences of political participation by entrepreneurs in China. Using unique data on political participation and initial public offerings by entrepreneurial firms, we find that firms controlled by entrepreneurs who participate in politics exhibit superior post-IPO performance. We also find that firms characterized by political participation are subject to less underpricing. Furthermore, the superior performance is concentrated among firms that operate in an environment characterized by rich rent-seeking opportunities instead of abundant business opportunities, suggesting that political participation is facilitating rent seeking rather than serving simply as a proxy for political recognition for entrepreneurship.     

Learning-by-exporting versus self-selection: New evidence for 19 sub-Saharan African countries

We examine learning-by-exporting effects of manufacturing and services firms in 19 sub-Saharan African countries. Comparing several outlier-robust estimators, our results provide evidence for positive effects in the manufacturing sector when using the MM estimator, but not in the services sector.     

Importing,exporting and performance in sub-Saharan African manufacturing firms

This paper examines productivity differences between internationally trading and non-trading firms using data on a sample of firms from 19 sub-Saharan African countries. The paper provides the first evidence of whether exporters, importers and two-way traders perform better than non-traders, and whether there are differences in performance between different types of trading firms in sub-Saharan Africa. Our results indicate that exporters, importers and two-way traders perform better than non-exporters, non-importers and non-two-way traders. We further find that two-way traders perform better than importers only or exporters only, results largely consistent with recent results for other countries and regions. Considering information on export starters, continuers and exiters we also present some evidence suggesting that there is no significant difference in performance between export continuers and starters.     

Public private partnerships as a tool for stimulating investments in broadband

The paper is concerned with PPP in the telecommunications area and more specifically with the combination of public and private investments in upgrading broadband infrastructures. Following the liberalization of the telecommunications area, investments were primarily left to the private sector – though public investments have continued to take place in specific areas such as research and education networks and rural and otherwise underserved areas. Lately, however, governments have upgraded their public investment plans in broadband infrastructures. The question is whether we are witnessing a simple quantitative change or whether this quantitative change includes a qualitative evolvement in the view on the role of the public sector in expanding broadband infrastructures. At the present time, the most likely answer is that increasing public investments in broadband infrastructures signal a combination of concerns raised by the economic crisis and the growing awareness of the social and economic importance of efficient broadband infrastructures.     

Crisis and opportunity: The political economy of the stora mill closure controversy in Nova Scotia

In 1993, the Swedish multinational Stora Kopparberg announced that its pulp and paper complex at Port Hawkesbury, Nova Scotia, was under review. The firm, which has operated on the site for more than 30 years, raised the possibility that the entire complex could be closed as a result of this review. The decision on the future of the plant has since been postponed, though not before precipitating a prolonged debate on appropriate public responses. The case is complicated by the ‘orphan’ character of the Nova Scotia subsidiary, operating on a small scale and at the periphery of a burgeoning business complex centred increasingly in Europe. Overall it raises important questions about the role of state policy interventions, at both the national and provincial levels in Canada, in shaping the firm's operating environment. The paper situates the Stora subsidiary in a local, national and international context, reviewing a range of factors which shape its strategic commitment to Nova Scotia. It also explores the political initiatives which have been mounted since 1993 to secure a renewed corporate commitment. By tracing the evolution of the Nova Scotia mill, and situating it within Stora's international business strategy, both the closure question and the political prospects for renewal can be more sharply understood.     

Welfare Effects of Changing Technological Efficency in Regulated Open-Access Fisheries

Environmental and Resource Economics - Small-scale fisheries often operate under conditions of regulated open access; that is, the fishery is subject to natural or regulatory constraints on fishing...     

Affective Computing in Marketing: Practical Implications and Research Opportunities Afforded by Emotionally Intelligent Machines

After years of using AI to perform cognitive tasks, marketing practitioners can now use it to perform tasks that require emotional intelligence. This advancement is made possible by the rise of affective computing, which develops AI and machines capable of detecting and responding to human emotions. From market research, to customer service, to product innovation, the practice of marketing will likely be transformed by the rise of affective computing, as preliminary evidence from the field suggests. In this Idea Corner, we discuss this transformation and identify the research opportunities that it offers.

     

Students’ knowledge of emerging technology and sustainability through a design activity in technology education

International Journal of Technology and Design Education - The purpose of this study is to explore whether, and if so how, a design activity could encourage students to express and develop...