Inflation and savings: testing Deaton's hypothesis

A ‘money illusion’ savings function in which unanticipated inflation affects the savings ratio positively is tested. This is strongly supported by Finnish data. Goodness-of-fit statistics are quite high and the coefficient estimates are of the expected sign and are highly significant. Standard stability tests of both the Brown-Durbin-Evans type and of the VPR type are generally rather favourable. Finally, cross-country evidence from ten OECD countries gives further support for the suggested specification.     

On optimal income taxation with heterogeneous work preferences

This paper considers the problem of optimal income taxation when individuals are assumed to differ with respect to their earnings potential and work preferences. A numerical method for solving this two-dimensional problem has been developed. We assume an additive utility function, and utilitarian social objectives. Rather than solve the first order conditions associated with the problem, we directly compute the best tax function, which can be written in terms of a second order B-spline function. Our findings show that marginal tax rates are higher than might be anticipated, and that very little bunching occurs at the optimum. Our simulation results show that the correlation between taste for work and productivity has a crucial role in determining the extent of redistribution in our model.     

A model for outsourcing and governing of maintenance within the process industry

Many industrial firms motivate structural changes by an increased focus on core activities and reduced ownership of non-core activities. However, classifying maintenance activities as either core or non-core can be difficult, since maintenance is a support function strongly linked to the production core within a manufacturing firm. Based on a multiple case study that included four buying firms and four suppliers within the process industry, this paper investigates how the relative capabilities of the firms affect the governance decision about maintenance outsourcing. A conceptual framework built on a distinction between core-close and core-distant maintenance and between different maintenance capabilities is presented. The subsequent empirical analysis illustrates how the developed framework can be used for both analyzing and guiding firms’ decisions about outsourcing and governance regarding maintenance.     

Looking for people,places and connections: hindrances when working in multiple locations: a review

Mobile multi‐locational workers move a lot spatially, utilise different locations for work and communicate with others via electronic tools. This article presents an analysis of previously published empirical studies focusing on mobile workers' experiences of hindrances in five types of locations. Our review shows that some of the hindrances are unique for certain types of locations, while others recur in all or most of them. The change of physical locations results in continuous searching for a place to work and remaining socially as an outsider in all communities, including the main office. Limited connections and access in used locations seem to be the main challenges of virtual spaces despite of the recent developments in technology. In addition, we discuss the importance to consider hindrances caused by changing contexts as job demands, which can be influenced in work re/designing process.     

Assimilation to a Welfare State: Labor Market Performance and Use of Social Benefits by Immigrants to Finland*

This paper documents the economic performance of immigrants in a country characterized by an extensive welfare state and a short immigration history. Upon arrival, immigrants to Finland have substantially lower employment rates than comparable natives. While they experience rapid employment growth, only men from OECD countries catch up with natives. Despite the persisting employment and earnings differences between non‐OECD immigrants and natives, the differences in income transfers disappear in roughly 20 years. The immigrant–native employment gaps are larger in Finland than in Australia, Canada, or the US.     

The status of purchasing and supply management in Finland and Russia

Previous studies have shown that long-term planning, collaborative supplier relationships and supply management capabilities reflect the strategic role and importance of purchasing and supply management (PSM) in firms, regardless of the nature of the business. This study examines how these elements behave in different business environments, such as in Western countries and emerging economies. Finland and Russia were chosen to represent two extremes in terms of international economic competitiveness and the business environment. A survey was conducted in both countries. Regression analyses were run from both samples to examine the effects of long-term planning, collaborative supplier relationships and supply management capabilities on the status of PSM by using data from 100 Finnish firms and 208 Russian firms. The results showed that these elements positively influence the status of PSM in both countries.     

Modelling crime and punishment

This paper provides an extended supply of labour model which allows for different intensities of legal and illegal (criminal) activities and in which criminal activities may be considered both as work and leisure. Heterogeneity of individuals is also taken into account. The model is estimated from Finnish aggregate time-series data, pooled Finnish municipalities data and pooled international cross-country data. With the Finnish aggregate data, a volume index of crime is constructed and then used in testing the model. All empirical results give strong support to the hypothesis that apprehension and punishment are important deterrents of crime. By contrast, the role of sosioeconomic and demographic variables turns out to be of little importance.     

瓦尔考斯--芬兰东部的工业中心

瓦尔考斯市位于芬兰东部的正中央。它从一个钢铁小镇快速发展成为一个重要的工业中心。工业化进程大约起始于1800年 ,当时的工业主要有 :面粉厂、铁厂、锯木厂。到上上世纪中叶又建成了一个机器制造厂、一个铸造厂和一个造船厂。到20世纪初期 ,随着一个发电厂、一个纸浆磨坊以及随后一个造纸厂的建成投产 ,已经形成了较大的工业规模。瓦尔考斯的工业化有力地促进了本地区及周边地区的繁荣和发展。目前 ,我们这座国际化的工业城市主要立足于四个支柱产业 ,即纸浆和造纸业、能源工业、印刷工业和环保技术工业。瓦尔考斯具有非常便利的交通条件…     

On the optimal income taxation: Some further numerical results

Using numerical calculations we show in the optimal income tax model that a realistic value for the elasticity of substitution between consumption and leisure (?=0.5) leads to conclusions different from some of those drawn by Mirrlees (1971) and Atkinson (1973). The marginal tax rates are not so low and the shape of the tax schedule is for a great majority of the population substantially nonlinear. A new feature in our calculations is that both results come out without going to maximin, as done by Atkinson (1973). We study in special cases the locality of the zero limit of the marginal tax rate at the upper end of the ability distribution and we achieve a very definite conclusion: this result is really very local. We also present an interesting approximation result concerning the relationship between the level of the government revenue and the marginal tax rate for individuals with high ability. An important methodological remark analogous to Sen's critique on the ethical measures of inequality is made on the interpretation of optimal income tax calculations.