Inequality and Income Distribution in Global Value Chains

Global value chains (GVCs), led by transnational corporations (TNCs), have reshaped the world division of labor over the past two decades. GVCs are pervasive in low technology manufacturing, such as textile and apparel, as well as in more advanced industries like automobiles, electronics, and machines. This hierarchical division of labor generates wild competition at the lower value-added stages of production, where low wages and low profit margins prevail for workers and contract manufacturers in developing countries. At the top of the hierarchy another kind of competition prevails, centered on the ability to monitor and control intellectual property rights related to innovation, finance, and marketing. We argue that GVCs have had crucial effects on income inequality and the appropriation of rents in modern capitalism.     

Economic forecast quality: information timeliness and data vintage effects

This paper investigates the impact of the timeliness of information releases and data vintage variation on economic forecast quality. Specifically, using a set of 63 key US economic series, we provide a concise measure of the forecast accuracy associated with use of economic activity indices with different publication lags. A forecasting model based on an economic activity index that is subject to a short publication lag (viz. the Aruoba-Diebold-Scotti index) is more efficient than competing models. Moreover, if this publication lag advantage is removed (by artificially imposing a publication lag restriction comparable to that of a competing indicator) this efficiency largely disappears. The final part of the analysis employs a novel (simulation-based) method of assessing the impact of data vintage variation on forecast accuracy, and finds that the results are somewhat sensitive to such variation.     

Banks,Stock Market Development and Economic Growth in Kenya: An Empirical Investigation

In this paper, we have examined the impact of both bank- and market-based financial development on economic growth in Kenya during the period 1980 to 2012, using the autoregressive distributed lag bounds testing approach. To capture as far as possible the breadth and depth of the Kenyan bank- and market-based financial systems, the study employs the method of means-removed average to construct both bank- and market-based financial development indices from an array of banking sector and stock market variables. The empirical results of this study show that market-based financial development has a positive impact on economic growth in Kenya. However, the results have also shown that bank-based financial development has no impact on economic growth in the study country. These results apply irrespective of whether the regression analysis is conducted in the long run or in the short run. The findings of this study, therefore, lend more support to pro-market-based financial development policies in Kenya.     

An empirical test of the Balassa-Samuelson hypothesis: Evidence from eight middle-income countries in Africa

The paper tests the validity of the Balassa-Samuelson hypothesis (BSH) using the within-effects and the dynamic panel generalised methods of moment (GMM) techniques for a panel of eight middle-income African countries over the period 1960–2009. We selected these countries because they exhibited a mixture of relative productivity growth and real exchange rate misalignment that fits the characterization of the BSH well. The results strongly support the BSH for this group of countries. The results are valid even after we controlled for potentially omitted variables and endogeneity. The implication is that as these countries become more productive, their currencies appreciate in real terms.     

Brand value: how affective labour helps create brands

One way brands create value is by engaging the capacity of cultural labourers to animate affective connections with consumers. Brands assemble social spaces that harness the communicative capacities of cultural actors. A mode of branding that works by managing an open-ended social process depends on affective labour. Affective labour involves not only the capacity of individuals to produce specific meanings and feelings, but also the open-endedly social capacity to stimulate and channel attention and recognition. This affective labour does not always depend on making particular “authentic” representations, but on facilitating a general circulation of meaning. By investing in social spaces and relations corporate brands engage popular musicians in new forms of labour. This article examines the participation of popular musicians in branding programmes run in Australia by corporate brands between 2005 and 2010. I examine the accounts of musicians and managers who participate in these programmes to consider how they make their participation in social relations that create brand value meaningful. They employ a variety of practices: identifying with brands, endorsing brands' claims of socially responsible investment in culture, and distancing themselves from their own participation in branded space.     

A new way of thinking about IT project management practices: Early empirical results

Despite decades of efforts to improve the management of Information Technology (IT) projects, failure rates remain high. This article first reviews literature about information systems success and IT project success. Most of the improvement efforts have focused on advancing variations of the traditional project management paradigm, such as embodied by the Project Management Body of Knowledge. This article describes a new way of thinking about managing IT project called Value-Driven Change Leadership (VDCL), and reports the results of an initial empirical exploration to identify project success factors stemming from VDCL as well as the traditional paradigm. The results are based on data collected from 16 medium-sized IT-intensive projects at eight Chicago-based organizations from six different industries. The results, although not based on a large sample, point to several project management practices associated with project success that stem from both the traditional paradigm as well as VDCL. For example, traditional practices managing stakeholders’ expectations, scope, and schedule are associated with project success, as are practices stemming from VDCL, such as managing the end-product’s architecture, business value added, and the organization change associated with systems implementation. The results of this study also suggest that further research into new ways of thinking about IT project management may be fruitful.     

Substantive or Symbolic Environmental Strategies? Effects of External and Internal Normative Stakeholder Pressures

Different forms of stakeholder pressures drive different environmental strategies in organizations. This article differentiates between internal and external normative stakeholder pressures to test their potentially unique effects on environmental strategies. The findings suggest that internal, normative stakeholder pressures primarily drive substantive commitments to environmental practices, reflecting an internalized, voluntary commitment to the natural environment and dedication to environmental leadership by the firm. External, normative pressures instead primarily drive symbolic commitments to environmental practices, aimed at managing the image of the organization to establish and reinforce an appearance of commitment to the natural environment. This novel perspective accounts for the institutionally plural contexts of organizations and their environments, in which internal pressures directly drive substantive environmental commitments and external pressures drive symbolic responses. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

VOTING AND SOCIAL PRESSURE UNDER IMPERFECT INFORMATION

We develop a model in which costly voting in a large, two‐party election is a sequentially rational choice of strategic, self‐interested players who can reward fellow voters by forming stronger ties in a network formation coordination game. The predictions match a variety of stylized facts, including explaining why an individual's voting behavior may depend on what she knows about her friends' actions. Players have imperfect information about others' voting behavior, and we find that some degree of privacy may be necessary for voting in equilibrium, enabling hypocritical but useful social pressure. Our framework applies to any costly prosocial behavior.     

When does economic model type become a decisive factor in health technology appraisals? Learning from the expanding treatment options for relapsing–remitting multiple sclerosis

Objectives: Specific economic model types often become de facto standard for health technology appraisal over time. Markov and discrete event simulation (DES) models were compared to investigate the impact of innovative modeling on the cost-effectiveness of disease-modifying therapies (DMTs) in relapsing–remitting multiple sclerosis (RRMS). Fingolimod was compared to dimethyl fumarate (DMF; in highly active [HA] RRMS), alemtuzumab (in HA RRMS) and natalizumab (in rapidly evolving severe RRMS). Comparator DMTs were chosen to reflect different dosing regimens.

Materials and methods: Markov and DES models used have been published previously. Inputs were aligned in all relevant respects, with differences in the modeling of event-triggered attributes, such as relapse-related retreatment, which is inherently difficult with a memoryless Markov approach. Outcomes were compared, with and without different attributes.

Results: All results used list prices. For fingolimod and DMF, incremental cost-effectiveness ratios (ICERs) were comparable (Markov: £4206/quality-adjusted life year [QALY] gained versus DES: £3910/QALY gained). Deviations were observed when long-term adverse events (AEs) were incorporated in the DES (Markov: £25,412 saved/QALY lost, versus DES: £34,209 saved/QALY lost, fingolimod versus natalizumab; higher ICERs indicate greater cost-effectiveness). For fingolimod versus alemtuzumab, when relapse-triggered retreatment was included in the DES, large cost differences were observed (difference between incremental cost is £35,410 and QALY is 0.10).

Limitations: UK payer perspective, therefore societal approach was not considered. Resource utilization and utilities for both models were not derived from the subpopulations; as the focus is on model type, input limitations that apply to both models are less relevant.

Conclusions: Whilst no model can fully represent a disease, a DES allows an opportunity to include features excluded in a Markov structure. A DES may be more suitable for modeling in RRMS for health technology assessment purposes given the complexity of some DMTs. This analysis highlights the capabilities of different model structures to model event-triggered attributes.