On efficiency of the ratio estimator

Summary The exact mean square error for the ratio estimator of a finite population total based on simple random sampling without replacement is shown to have an expected value less than that of the variance of the ratio estimator based on Midzuno’s scheme, under a usual super-population model.     

Economic liberalization and welfare in a model with an informal sector

The paper reexamines the conventional results relating to inflow of foreign capital, removal of protectionism and structural reform programmes, in a small open economy in terms of a two-sector general equilibrium model with an informal sector. The paper shows that in the presence of labour market distortion and a protectionist policy, inflow of foreign capital may be desirable irrespective of the pattern of trade of the economy due to its favourable impact on welfare. But the welfare implications of tariff reductions and/or structural adjustment programmes, such as deregulating the formal sector labour market, depend crucially on the economy's trade pattern. The paper provides an answer to the question as to whether in a developing economy labour market reform and tariff reform should go hand-in-hand or whether one should precede the other for welfare improvement.
JEL classification: F10, F13, F21, O17.     

中国和印度不平衡发展的比较研究

本文考察了中国和印度近年来经济增长不平衡的情况,并分析了不平衡增长对不均等和贫困的影响。通过对家庭调查数据和官方加总数据的分析,本文发现增长存在不平衡——区域间、产业间和家庭层面上,这表明减贫工作进展不平衡,若增长更平衡,减贫效果可能更好;另外,收入不均等程度也在提高。本文探讨了增长不平衡及其应引起重视的原因。具体讨论围绕"有利的"和"不利的"不均等两个概念展开——不均等与不平衡增长对公平性以及长期增长与发展的有利或不利影响。我们认为,需要制定相关政策,保持有利的不均等——继续鼓励创新和投资,同时降低不利的不均等的程度,尤其是通过人力资本和农村基础设施投资,帮助贫困人口参与市场。     

Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature

I survey the literature post Ledyard (Handbook of Experimental Economics, ed. by J. Kagel, A. Roth, Chap. 2, Princeton, Princeton University Press, 1995) on three related issues in linear public goods experiments: (1) conditional cooperation; (2) the role of costly monetary punishments in sustaining cooperation and (3) the sustenance of cooperation via means other than such punishments. Many participants in laboratory public goods experiments are “conditional cooperators” whose contributions to the public good are positively correlated with their beliefs about the average group contribution. Conditional cooperators are often able to sustain high contributions to the public good through costly monetary punishment of free-riders but also by other mechanisms such as expressions of disapproval, advice giving and assortative matching.     

Learning about foreign markets: A study of Czech SMEs

Drawing on the organizational learning literature, our study examines the role of foreign market knowledge and firm emphasis on technological innovation in the internationalization of small, entrepreneurial firms in the Czech Republic. It is based on a sample of 168 SMEs representing a broad range of manufacturing industries that were founded after the fall of communism and as the Czech economy was transitioning to a more market-based economy. Findings indicate that emphasis on technological innovation is associated with greater acquisition of foreign market knowledge. In addition, our results indicate that emphasis on technological innovation directly and indirectly influences the performance of such SMEs in international markets. Our findings also suggest that foreign market knowledge partially mediates the relationship between firm emphasis on technological innovation and international performance. Implications of our findings from the perspective of theory and practice are discussed.     

A critique of Porter＇s cost leadership and differentiation strategies

Porter identifies high market share with cost leadership, citing GM as a successful practitioner of this strategy. However, GM became a market share leader in the American automobile industry due to a strategy of market segmentation, differentiation and a broad scope shaped during the 1920s. Porter argues that cost leadership and differentiation offer an equally viable path to competitive success. Nevertheless, a differentiation strategy based on superior quality compared to competition is more profitable than cost leadership strategy. It can lead a business to become a market share leader, and consequently even a low-cost leader. Research indicates that differentiation and cost leadership can co-exist. However, Porter insists that each generic strategy requires a different culture and a totally different philosophy. The problem is that Porter＇s generic strategies are too broad. It is not his logic that is flawed, but his basic premise that prescribes cost leadership strategy as the only route to market share leadership, and presents a narrow view of differentiation with a unique product--sold at a premium price--on the one hand, and a ＂standard, or no-frills＂ product on the other. Mintzburg （1988） says Porter＇s cost leadership strategy should be called ＂price differentiation＂： a strategy that is based on a lower price than that of the competition. He suggests that business strategy has two dimensions： differentiation and scope. Thus, setting scope aside, competitive strategy has only one component： differentiation. So, the key question is not whether to differentiate, but how？ First, make customer-perceived quality as the foundation of competitive strategy because it is far more critical to long-term success than any other factor. Second, serve the middle class by competing in the mid-price segment, offering better quality than the competition at a somewhat higher price. It is this path that can lead to market share leadership--a strategy that can be both profitable--and sustainable.     

GMM with Multiple Missing Variables

We consider efficient estimation in moment conditions models with non‐monotonically missing‐at‐random (MAR) variables. A version of MAR point‐identifies the parameters of interest and gives a closed‐form efficient influence function that can be used directly to obtain efficient semi‐parametric generalized method of moments (GMM) estimators under standard regularity conditions. A small‐scale Monte Carlo experiment with MAR instrumental variables demonstrates that the asymptotic superiority of these estimators over the standard methods carries over to finite samples. An illustrative empirical study of the relationship between a child's years of schooling and number of siblings indicates that these GMM estimators can generate results with substantive differences from standard methods. Copyright © 2015 John Wiley & Sons, Ltd.     

A three layer multi-item production–inventory model for multiple suppliers and retailers

The paper deals with a production inventory model for various types of items where multiple suppliers, a manufacturer and the multiple non-competing retailers are the members of the supply chain. In this model, each supplier supplies only one type of raw material to the manufacturer. The manufacturer produces a finished item by the combination of certain percentage of the various types of raw materials. The manufacturer produces also multi-items and delivers them according to the demand of the different retailers. Finally, an integrated profit of the supply chain is optimized by optimal ordering lot sizes of the raw materials. A numerical example is provided to justify the proposed model.     

The effect of media,product and message factors on ad persuasiveness: the role of affect and cognition

The effects of media, product and advertising strategy variables on consumers' thoughts and feelings are investigated. Both direct and indirect paths from the advertising variables to ad persuasiveness measures are also analysed with the indirect paths leading through affective and cognitive responses. Two hundred and forty television and magazine ads are analysed with respect to advertising variables, affect, cognition and ad persuasiveness. Results indicate that advertising variables are indirectly linked to ad persuasiveness with the indirect path occurring through affective and cognitive responses.     

Welfare Effect of Mergers and Multilateral Trade Liberalization

In a two‐country model where firms behave à la Cournot, we show that trade liberalization increases (decreases) the social desirability of those mergers that generate sufficiently large (small) reductions in marginal cost. There exists a range of intermediate levels of marginal cost savings such that marginal tariff reductions increase (decrease) the desirability of merger at sufficiently low (high) tariff levels. Moreover, in the neighborhood of free trade, we show that if trade liberalization increases the profitability of a merger, it necessarily also increases its desirability.