Two‐level CES Production Technology in the Solow and Diamond Growth Models*

The two‐level CES aggregate production function—that nests a CES into another CES function—has recently been used extensively in theoretical and empirical applications of macroeconomics. We examine the theoretical properties of this production technology and establish existence and stability conditions of steady states under the Solow and Diamond growth models. It is shown that in the Solow model the sufficient condition for a steady state is fulfilled for a wide range of substitution parameter values. This is in sharp contrast with the two‐factor Solow model, where only an elasticity of substitution equal to one is sufficient to guarantee the existence of a steady state. In the Diamond model, multiple equilibria can occur when the aggregate elasticity of substitution is lower than the capital share. Moreover, it is shown that for high initial levels of capital and factor substitutability, the effect of a further increase in a substitution parameter on the steady state depends on capital–skill complementarity.     

WORLDOUTLOOK

German monetary unification is expected to result in a major expansion in autonomous demand from East Germany. In economic terms this is equivalent to a fiscal shock to West Germany broadly similar to that experienced in the US in the early years of Mr. Reagan's Presidency. Led by the Bundes bank, the monetary authorities' response is again likely to be a tightening of policy, leading to several years of high real interest rates. Overall, the combined monetary-fiscal shock should strengthen growth with only moderate increases in inflation. Germany is expected to grow very rapidly in the -per cent range for several years, with only a slight upturn in inflation. Japan, after a pause over the next year, should be able to return to its under lying growth path fairly quickly. However the US situation is more precarious. FUN adjustment from the previous Reagan shock has not yet taken place, leaving the US vulnerably dependent on increasingly scarce imported capital. In the absence of a significant *peace dividend: the result is the necessity of continued tight policy and sluggish growth in the American economy. US growth stays around 2 per cent, but this allows a substantial reduction in the current account deficit.     

MEASURING POVERTY – WHAT HAPPENED TO COPENHAGEN?

Absolute poverty can be thought of as a condition of 'insufficiency', i.e. the inability to acquire the basic necessities of life. Relative poverty can be thought of as a condition of 'inequality'. At the World Summit on Social Development in Copenhagen in 1995, all participants made a commitment to produce official measures of both absolute and relative poverty and to strive to eradicate absolute poverty within a reasonable time frame. Despite these commitments, measures of absolute poverty are rare in the developed world. This paper concludes that both kinds of measures are needed for intelligent discussions and good policy-making.     

Hospital Numerical Flexibility and Nurse Economic Security in China and India

This article contrasts the flexibility of Chinese and Indian urban hospitals and the security of nurses. The study draws on a survey of 55 urban hospitals, and finds that national context generates different flexibility–security outcomes even when workers with similar skills are considered. Our findings support claims that China is constructing a flexibility–security regime that aims to promote both security and flexibility, and that India remains attached to employer‐based social protection, but challenges the claim that economic growth is higher in China because India's employers have relatively less capacity to utilize labour‐time as they wish.     

Knowledge exchange in networked organizations: does place matter?

While many studies of knowledge exchange have been undertaken in private and service organizations, government and R&D enterprises, few have studied scientific inter‐organizational collaborations. Furthermore, in the literature on international networks there has been a tendency to assume that knowledge exchange will be inevitably enhanced by global dispersion. Two linked dynamics deserving further study are the role of geographic proximity and the role of information and communication technologies in facilitating knowledge flow across international networks. Studies of intra‐ and inter‐firm knowledge transfer, managerial work values and cultural norms all point to China as being a fascinating counterpoint for the way knowledge exchange might occur in Europe. So in this study of the ATLAS collaboration, a ‘big science’ global network of 3,500 physicists, we explore the perceptions of two subgroups: UK physicists working in Europe and Chinese scientists based in Beijing and HeFei. Findings from 24 interviews and non‐participant observation reveal that face‐to‐face working at European Organization for Nuclear Research (Geneva) is not without its difficulties, but for a variety of sociocultural reasons, it is primarily the Chinese scientists who perceive themselves to be inhibited from full participation in effective knowledge exchange.     

An exploration of branding approaches in UK universities

• This exploratory paper considers the current state of UK HE branding, in particular, conceptualisations and approaches. It is driven by calls in the literature for clearer understanding and application of branding in Higher Education (HE).Objectives of the research, drawn from literature, were to explore conceptualisations of branding in the UK HE sector, as well as current challenges to branding concepts/ practice in UK HE. The methodology was based upon depth interviews with fifteen opinion leaders and opinion formers, specifically Heads of Marketing or External Relations in UK HE. Findings suggest that branding is a key issue for UK universities, but an overall conceptual model for brands in the HE sector remains challenging, although parallels with corporate branding are drawn. However, simplistic adoption of corporate branding does not offer a clear solution, and the requirement for a conceptual framework particular to the sector is evident. In exploring conceptual frameworks, experiential branding and internal branding are discussed as possible approaches that may offer a route for differentiation that universities seek. Whilst developing a clear conceptual model is the key challenge identified, limited and variable understanding of the branding concept and limited genuine differentiation around which to build a brand were also notable challenges. Overall, significant branding opportunities and challenges in a changing sector are discussed. Conclusions argue that corporate branding, experiential branding and internal branding literature all have a degree of applicability, but clearly further empirical work is needed to advance this important field.

Copyright © 2014 John Wiley & Sons, Ltd.     

The combined effects of dependence and relationalism on the use of influence in marketing distribution systems

This study uses data from the automotive replacement tire industry to test the proposition that dependence and relationship structure interact to determine frequency of influence-strategy use in distribution systems. The findings support the expectation that dependence is positively associated with recommendations, information exchanges, promises, requests, legal pleas, and threats. However, increases in dealer dependence increase the use of requests, legal pleas, and threats only in systems characterized by trivial levels of relationalism.The authors would like to express their gratitude to John Burnett, Robert Dwyer, Jule Gassenheimer, and Allen Wilhite for their helpful comments on this project.