Creative Destruction, Investment Volatility, and the Average Age of Capital

In this article, a new numerical procedure is used to compute the equilibrium of a vintage capital growth model with nonlinear utility, where the scrapping time is nonconstant. We show that equilibrium investment and output converge nonmonotonically to the balanced growth path due to replacement echoes. We find that the average age of capital is inversely related to output, which is consistent with recent micro evidence reinforcing the importance of the embodied question. We also find that an unanticipated permanent increase in the rate of embodied technological progress causes labor productivity to slowdown in the short run.     

Endogenous growth theory: a critique

Endogenous growth theory is based on a misperception of how science and technology are acquired and diffused. In particular, it is incorrect to assume that knowledge is freely available. Any knowledge which has economic value has to be accessed via the brains of experts who are members of the relevant 'invisible college' and are rivalrous.It therefore has the characteristics of a private good which can be left to conventional economic incentives to supply.     

An Evaluation of the Effectiveness of Anti‐money Laundering and Anti‐terrorism Financing Legislation: Perceptions of Bank Compliance Officers in Malaysia

The present study sought to ascertain the perceptions of anti‐money laundering and counter‐financing of terrorism (AML/CFT) compliance officers of banks in Malaysia in order to develop an understanding of how well they understand the risks and how well they have implemented the obligations imposed by the regime. We examine these issues for the first time in the literature via the theory of crying wolf. A structured questionnaire survey of compliance officers of banks in Malaysia was followed by focus group discussions held at the Malaysian Institute of Bankers. We expect that the industry would consider suitable steps to improve the compliance culture, particularly in Islamic banks, and the regulators would watch such banks more diligently. Banks considered avoiding penalties, improving brand image and improving customer perceptions to be the rationale for implementing the AML/CFT legislation. Most conventional bank officers considered their organisations’ compliance culture to be high or very high, while this was not found to be the case in Islamic banks.     

Acculturation and the influence of ethnicity on market orientation of African and Caribbean companies in Britain

Since acculturation is the process of acquiring the customs of an alternative society we assume that adapting to consumers from various cultures will be a fundamental task for African and Caribbean (A&C) companies in Britain. This study investigates market orientation of A&C service companies and their processes of cultural learning and adaptation using ethnicity as a basis for an exploratory study of the British market. The findings indicate that A&C companies serve as bicultural mediators, both accommodating their consumers and working to alter their consumption patterns to bring them into line with their own ethnic and British national market customs. The adaptation of A&C service companies to the cultural characteristics and needs of their customers results in changes to their companies, consumers and the British marketplace.     

Grocery Purchase Behaviour for National and Own-Label Brands

This study compares the shopping habits for national and ownlabel brands to establish if there are differences in personal characteristics and purchase behaviour between those who buy national brands and those who buy own-labels in the UK. While statistical research could quantify how British grocery shoppers felt about food brands, it usually cannot explain why shoppers had the opinions they did, hence this study. It is thus an investigation, through the eyes of grocery shoppers, to answer the ‘WHY’ questions. Two distinct markets were found to exist. These grocery shoppers differ in terms of socio-economic status, personal characteristics and shopping behaviour. The findings provide information useful to both retailing and manufacturing interests as retail marketing strategies are developed in the face of intensifying competition for shoppers' food expenditure in the market-place.     

Communication skills in accounting education: Perceptions of academics,employers and graduate accountants

Communication skills are central to intellectual interaction between the providers and the recipients of information. The importance of accounting starts with the gathering and processing of information and ends with the communication of processed information. This paper examines the communication skills which employers, academics and graduate accountants consider necessary to the newly graduated accountant. It also identifies and considers the differences in perception which occur between these groups and suggests solutions to the communication gap. This study confirms findings from previous research that new graduate accountants experience communication-related problems in early employment. In addition, it provides evidence that the Australian accounting curriculum has contributed to the development of communication skills. However, the paper highlights the need for the reconsideration of an emphasis on communication skills in the accounting curriculum, a role which arises from the very nature of accounting as the processing and communication of information.     

Masakhane case studies

The Masakhane Campaign in South Africa has received a fair amount of criticism, largely because its high media profile has not been accompanied by delivery and improvement of services at the local level. Contrary to this generally negative perception, there are a number of local authorities that have greatly improved the situation in their areas through pragmatic strategies and programmes under the banner of Masakhane. This article presents information on the current status of the campaign in a sample of local authorities, and attempts to interpret this information so as to ascertain those factors that influence on the success or failure of local authorities as service providers.     

Early Mortality Declines at the Dawn of Modern Growth*

We explore the hypothesis that demographic changes which began in the seventeenth and eighteenth centuries are at the root of the acceleration in growth rates at the dawn of the modern age. During this period, life tables for Geneva and Venice show a decline in adult mortality; French marriage registers reveal an important increase in literacy; historians measure an acceleration of economic growth. We develop an endogenous growth model with a realistic survival law in which rising longevity increases individual incentives to invest in education and fosters growth. We quantitatively estimate that the observed improvements in adult mortality account for 70% of the growth acceleration in the pre‐industrial age.     

Triggers,templates and twitches in the tracking of emerging strategic issues

A longitudinal investigation of group tracking of potential new applications and markets created by an emerging technology (cellular telephones) is used to gain more understanding of the shifts of cognitive frames of reference in the environmental tracking of emerging strategic issues. The dynamics of frame of reference shifts is examined through the derivation and operationalization of the concepts of templates, triggers and twitches. The results posit that examining the frame of reference shifts can be more informative than examining the frames themselves. Implications for strategic management practice and research are addressed.