Industrial cogeneration and regulatory policy

The 1978 Public Utility Regulatory Policy Act (PURPA) fostered decentralized generation of electricity, particularly in the form of cogeneration. A model of a firms' decision to cogenerate is developed that illustrates both the interface between the firm and an electric utility, and the firm's internal interface between its primary product and cogeneration technologies. The model is used to show that the firm may operate inefficiently in both the short run and long run owing to the fixed-proportions technology of cogeneration and PURPA mandated operating procedures, respectively. Cogenerating firms that dump heat into the atmosphere may signal inefficient behavior; therefore, monitoring heat dumping may be important in measuring the success of cogeneration.     

Adaptive capacity to technological change: A microfoundational approach

Research summary> : W e take a microfoundational approach to understanding the origin of heterogeneity in firms' capacity to adapt to technological change. We develop a computational model of individual‐level learning in an organizational setting characterized by interdependence and ambiguity. The model leads to organizational outcomes with the canonical properties of routines: constancy, efficacy, and organizational memory. At the same time, the process generating these outcomes also produces heterogeneity in firms' adaptive capacity to different types of technological change. An implication is that exploration policy in the formative period of routine development can influence a firm's capacity to adapt to change in maturity. This points to a host of strategic trade‐offs, not only between performance and adaptive capacity, but also between adaptive capacities to different forms of change . Managerial summary : W hy are firms differentially effective at adapting to technological change? We argue that firms differ in the adaptive capacity of the routines that underlie their capabilities. These differences arise well before change occurs, and result because firms build routines that are differentially responsive to signals of performance decline associated with technological change. Thus, early managerial efforts to build superior productive efficiency must be complemented by efforts to build superior adaptive capacity. Our theory suggests that managers can prepare for technological change by implementing policies, in the formative period of organizational development, that promote individuals' exploration of novel actions. However, there are trade‐offs because preparation aimed at building adaptive capacity to one type of technological change may limit adaptive capacity to other types of change . Copyright © 2016 John Wiley & Sons, Ltd.     

The power of imperfect imitation

We examine the power and limitations of imitation. Naive intuition may hold that the efficacy of imitation would be diminished by imperfections in copying high‐performing firms. Employing a computational model, we study the dynamics of imitation when firms are subject to bounded rationality that limits their ability to copy the market leader. We find that imperfect imitation can generate unexpectedly good outcomes for follower firms—indeed, better than the outcomes achieved if they were perfect imitators. Moreover, imperfect imitation, from time to time, enables follower firms to surpass superior firms. These findings suggest there is an adaptive role to mechanisms, such as bounded rationality, that make perfect imitation difficult. Copyright © 2012 John Wiley & Sons, Ltd.     

On the Contributions of Barbara Bergmann to Economics

Abstract

This paper examines the major economic contributions of Barbara R. Bergmann. After presenting her personal background information, it gives an overview of her theoretical framework. This is followed by her critique of economic methodology and an examination of her major contributions in micro-simulation, feminist analysis of labor markets and the family, and policy-oriented work focused on improving the lives of women and children. The essay concludes with a brief discussion of Bergmann's unique qualities as an activist economist in the pursuit of social change.     

Does China change the game?

Business Economics - It is vastly overdone to suggest that China changes the game. The challenges posed by the Chinese economy will not disappear because the U.S. puts pressure on them. The swing...     

Redefining poverty: a sensitivity analysis

First, we discuss the adoption of the absolute standard by the federal government and then present six alternative definitions of poverty. The motivation for redefining poverty derives from a concern with incorporating some measure of relative deprivation. The next section, performs a sensitivity analysis comparing the poverty rates generated by the alternative measures of poverty to the official poverty rate. The purpose of this comparison is to elucidate misconceptions circumscribing current poverty discourse. In the concluding section, we briefly address the politics of poverty in the USA.     

中央银行为何不能挤破泡沫?

中央银行不应该挤破资产价格泡沫.由于资产价格泡沫一般源自"非理性繁荣"、技术进步和金融自由化等,因而货币条件变动与泡沫上涨之间的联系十分微弱.即使中央银行愿意采取行动挤破泡沫,成本-收益分析也表明这种行动是不合理的.