Measuring Individual Preferences for Rural Multifunctionality: The Importance of Demographic and Residential Heterogeneity

We propose an approach to conceptualise ‘rural multifunctionality’ and further investigate peoples’ preferences for it. We use an opinion survey concerning individual preferences for several functions that rural spaces should provide. We use the analytical hierarchy process approach to assess the relative importance of each function. The results show how the social weightings of these functions are balanced, confirming that society demands truly multifunctional rural territories. Nonetheless, differences are found in individual preferences. We explore the demographic and socioeconomic determinants of these individual preferences, paying particular attention to the importance of heterogeneity using seemingly unrelated regressions. In short, results from this research could be employed as a useful informative element for the future development of public policies related to rural spaces.     

Some results on “an income fluctuation problem”

A consumer at each period, given the income available, y, has to decide how much to consume and save. If he consumes c ? 0 units he gets u(c) units of satisfaction or utility, and if x = y ? c ? 0 is the amount saved then the available income in the next period is rx + ω^k, where ω^k is a random variable, and r is an interest factor that is assumed to be known with certainty. Infinite time horizon problems are considered, and it is shown that if 0 < δr < 1, where 0 < δ < 1 is a discount factor, then the limiting policy is optimal. Questions about the behavior of the stock level, such as boundness, are considered, and an example is given that shows that the stock level might converge almost surely to infinity. Finally an economic explanation is given.     

Risk aversion, moral hazard, and the principal's loss

Summary. In their seminal paper on the principal-agent model with moral hazard, Grossman and Hart (1983) show that if the agent's utility function is , then the loss to the principal from being unable to observe the agent's action is increasing in the agent's degree of absolute risk aversion. Their proof is restricted to the case where the number of observable outcomes is equal to two, and it uses an argument that is specific to that case. In this note, we provide an alternative proof that generalizes their result to any (finite) number of outcomes. Received: March 21, 2001; revised version: June 21, 2001     

Individual Performance in Turbulent Environments: The Role of Organizational Learning Capability and Employee Flexibility

Organizational learning capability (OLC) and employee flexibility help firms navigate the challenges faced by organizations operating in turbulent environments. OLC includes dimensions such as experimentation, risk taking, openness, dialogue, and participative decision making. Employee flexibility is considered a crucial tool for strategic human resource management in tackling environmental turbulence. Accordingly, we pose the following research question: how, and to what extent, is individual performance enhanced by OLC and employee flexibility in turbulent environments? The major impact that environmental turbulence has on change and flexibility requirements suggests that employee flexibility plays an important role in the impact OLC has on individual performance. However, we found no prior studies that explicitly analyzed this mediating function of employee flexibility. In this study, we tested three hypotheses that link OLC and individual performance, OLC and employee flexibility, and employee flexibility and individual performance. We applied a structural equation methodology, using partial least squares path modeling, to a sample of 174 academics at a Latin American university (a highly turbulent context). Our results show employee flexibility fully mediates the relation between OLC and individual performance given the presence of environmental turbulence. © 2015 Wiley Periodicals, Inc.     

Product Differentiation,Competitive Toughness,and Intertemporal Substitution

Standard measures of competitive toughness fail to capture the fact that, as consumers optimize intertemporally, firms operating today compete with (as yet non‐existent) businesses, which will be started tomorrow. We develop a two‐tier constant elasticity of substitution (CES) model of dynamic monopolistic competition in which the impact of product differentiation on the market outcome depends crucially on the elasticity of intertemporal substitution (EIS). The degree of product differentiation per se fails to serve as a meaningful indicator of competitive toughness: what matters is its cross‐effect with EIS. We also extend the model to the case of non‐CES preferences in order to capture variable mark‐ups.     

Are all financial crises created equal? Wholesale funding and two financial crises

We use financial information on banks from Asia, Europe, North America and Oceania to examine the role of wholesale funding on the transmission of financial crises to bank lending, as well as to study the response of financial institutions in different regions during the crises. We consider the role of wholesale funding during the Global Financial Crisis (GFC) and Asian Financial Crisis (AFC). Our results suggest that during the GFC, wholesale funding dependence had a negative effect on loans growth across regions, but with substantial regional heterogeneity. The growth of loans from financial institutions in Asia and Europe was consistently sensitive to wholesale funding dependence. Although wholesale funding did not play a significant role in the transmission mechanism of the AFC, a subsample of financial institutions in Asia, who depended more heavily on wholesale funding, experienced a faster loan growth and may have been able to better withstand the crisis.