Why Have Housing Transactions Been So Weak?

Activity in the UK housing market has been surprisingly weak over the last couple of years, particularly given the very cheap, fixed-rate mortgage deals that are now available. In this article, Geoff Meen asks why the number of transactions has been so low and looks at future prospects for the housing market.     

Which skills contribute most to absorptive capacity,innovation and productivity performance? Evidence from the US and Western Europe

ABSTRACT

Skills are widely recognised as central to absorptive capacity, that is, firms’ ability to identify and make effective use of knowledge, ideas and technologies that are generated elsewhere. But identification of the specific levels of education and skills that contribute most to the development of absorptive capacity is often hampered by the use of skill measures as proxies for absorptive capacity itself. Drawing on a cross-country industry-level dataset, we retain separate measures of key components of absorptive capacity, namely, skills, R&D investments and openness to foreign trade and investment. We then estimate a system of structural equations in order to evaluate the extent to which different levels of skill contribute to innovative output (measured by growth in patenting) and subsequently to growth in productivity. We find important roles for both high-level skills and upper intermediate (technician-level) skills in converting the knowledge sourcing opportunities provided by openness into innovative output. In final stages of production (making use of innovative output), productivity growth in countries near to the technological frontier is enhanced not just by high-level and upper intermediate skills but also by the skills of the workforce as a whole.     

Sustainability accounting—a brief history and conceptual framework

Research linking accounting to the emerging concept of sustainability surfaced in the early 1990s and has received continuing attention in academic and professional accounting literature. This paper tracks this brief history through to the release of the Sustainability Reporting Guidelines at the World Summit on Sustainable Development in August 2002, consolidating the various approaches into a sustainability accounting framework. The result is a comprehensive reporting model that presents an enormous challenge to business organisations, requiring a significant commitment of resources to achieve widespread implementation. Failure to meet this challenge enables business organisations to continue to avoid accountability for their continuing unsustainability. The paper concludes with a personal view as to how implementation of the sustainability accounting framework could proceed.     

Asymmetric adjustment costs and the dynamics of housing supply

This paper examines aggregate dynamics on the supply side of the housing market. The representative firm's intertemporal profit maximisation problem is considered under asymmetric adjustment costs. The hypothesis of asymmetric adjustment costs is also examined empirically using Irish data. Several interesting insights into the dynamics of housing supply are uncovered. These include support for the proposition that the adjustment costs of expanding housing output are greater than those associated with a contraction, evidence of threshold points beyond which adjustment starts to speed up and also the existence of a continuum of equilibria between these thresholds where no adjustment occurs at all.     

Modelling a Research Portfolio Using AHP: A Group Decision Process

The problem of choosing a research portfolio has been in the literature for many years. Suggested solutions have ranged from simple scoring models to complex mathematical resource allocation models, but the acceptance rate has been low. In this paper we present an application of a model based on the Analytical Hierarchy Process to a group decision situation. The results are encouraging, showing the positive nature of a model as a focal point in the process. They show that the interactive nature of the methodology encourages the development of subjective estimates and their subsequent discussion. An attempt to counter the problems of biasing has also been made. The methodology presented is seen to be easy to use and adaptable, and becomes an integrating mechanism for the group.     

Planning for electronic data interchange

There is an abundance of literature about the impact of the new electronic communications technologies and most of the authors attest to its value and theoretical benefits. Many organizations are working in this area and producing novel implementations, but for the general company there is little that is of help in planning for these systems. In order to overcome this deficiency, this article presents a detailed analysis of electronic data interchange (EDI) undertaken by a large number of U.S. companies. The results suggest a model of strategic implementation which illustrates how factors such as the nature of markets and distribution channels, organizational structure and process and buyer power influence the implementation of EDI with suppliers and customers. Five generic EDI strategies have been identified and the impact of market share and IT expertise on these are discussed. Finally, the authors give their views on some of the long–term issues and suggest some possible outcomes.