The financial instability hypothesis: A stochastic microfoundation framework

This paper examines the dynamics of financial distress and in particular the mechanism of transmission of shocks from the financial sector to the real economy. The analysis is performed by representing the linkages between microeconomic financial variables and the aggregate performance of the economy by means of a microfounded model with firms that have heterogeneous capital structures. The model is solved both numerically and analytically, by means of a stochastic approximation that is able to replicate quite well the numerical solution. These methodologies, by overcoming the restrictions imposed by the traditional microfounded approach, enable us to provide some insights into the stabilization policies which may be effective in a financially fragile system.     

A microfoundation for normalized CES production functions with factor-augmenting technical change

Based on a tractable “endogeneous technology choice” framework, we provide a microfoundation for aggregate normalized constant elasticity of substitution (CES) production functions with non-neutral, factor-augmenting technical change. In this framework, firms are allowed to choose unit productivities of capital and labor optimally from a technology menu constructed under the assumption that unit factor productivities (UFPs) are independently Weibull-distributed. The Weibull distribution itself is also microfounded here: based on extreme value theory, it is found to be an accurate and robust approximation of the true UFP distribution if technologies consist of a large number of complementary components.     

A multimodal,multicommodity, and multiperiod planning problem for coal distribution to poor families

Tackling poverty has been one of the greatest global challenges and a prerequisite to sustainable development of countries. Countries implement nationally appropriate social protection systems and measures to address poverty. This paper addresses an aid system adopted by the government in Turkey where significant amounts of coal is distributed to poor families each year. The objective of the coal aid system is to complete the delivery of coal to poor families by the start of winter. However, an analysis of the data from previous years indicates that the distribution to many families cannot be completed on time. This results from the fact that planning is done manually and by trial-and-error as there is no system that can be used for distribution planning. This paper describes the planning problem encountered and develops a mathematical model to solve it. The proposed model is a multimodal, multicommodity, and multiperiod linear programming (LP) model. The model can be used to develop and update a distribution plan as well as to answer several what-if questions with regard to capacities, time constraints, and so forth. The model is solved using CPLEX for several problem instances obtained under different scenarios using data for the year 2012. The results show that at least 9% cost savings and about 40% decrease in distribution completion time can be achieved when the model is used. We analyze scenario results qualitatively and quantitatively and provide several insights to the decision makers. As a part of quantitative analysis, we develop regression models to predict optimal costs based on several factors. Our main contribution is to provide an efficient and effective tool to handle a large-scale real-world problem. The model has also helped to prove that the organization responsible for distribution planning may move from the current planning practice to an all-encompassing top-down approach.     

A psychoanalytic attributional model for subordinate poor performance

Managers and subordinates often have divergent perceptions as to the cause of a subordinate's poor performance. Normally, this is considered to be a significant problem in that it is correlated with a deterioration in productivity and in manager-subordinate relations. The position taken here is that under certain circumstances, convergence of perceptions can be even more damaging to the psychological well-being of the subordinate. These circumstances include the following: the manager's attributing the poor performance to the subordinate's lack of ability or lack of effort; the manager's being able to influence the subordinate to agree with this assessment; and the attribution being fundamentally inaccurate.     

The political economy of regional integration projects at borders where poor and rich meet: The role of cross-border shopping and community sorting

At borders between poor and rich countries, huge service price differentials could be exploited to mutual benefit, offering better-paid job opportunities to the poor as well as better shopping opportunities to the rich. However, cross-border shopping is often limited by the substantial transaction costs of crossing the border. Moreover, countries and regions frequently fail to cut these transaction costs even when they have the opportunity to do so. We provide a politico-economic analysis of cross-border integration projects. More specifically, we show how the political outcome depends on (i) intra-country mobility, (ii) decision making and housing ownership regimes, and (iii) federal grants and international border regulations. Our analysis builds on two key characteristics in which individuals differ: interregional mobility and intercultural ability.     

A collaborative approach for managing project cost of poor quality

This paper presents a construct – a collaborative approach for managing project cost of poor quality. Changing project constraints makes it difficult or even impossible to utilize traditional cost of poor quality methodology in managing quality costs in project environments. The construct presented here modifies the root-cause analysis type of approach to manage the cost of poor quality by introducing the use of three prospective values and probabilities of occurrence in project ex-ante evaluations. An integral part of the construct is the way in which monetary values are determined through workshops. The results were obtained in a research project using the constructive research approach. The construct was created at Finnish Post, Hankkija-Maatalous and Nokia Networks, and the validity was further tested at Valmet Paper Machines.     

Pursuing justice against the abuse of power by the rich through social media: A case study

ABSTRACT

The purpose of this case study is to compare and contrast two recent legal cases and to derive practical implications to promote social justice in terms of income inequality. This study focuses on exploring and analyzing two of the most recent legal cases of the abuse of power by the rich in order to identify the effects of social media on these types of cases. Despite the availability of many studies and findings about the tolerance level to income inequality, the following logic is more appropriate in applying and analyzing the two cases: If people don’t know, see, or experience the abuse of the rich or income inequality, they are more tolerant of the abuse and income inequality. Based on the analysis of the two cases, the article concludes that these two cases are not the usual air rage cases; they are more about the abuse of the rich and the punishment decided by the use of technology.     

Social enterprises as supply-chain enablers for the poor

Many social enterprises use the poor as producers to improve their living standards. We seek to answer how they do so, from a supply chain perspective. Drawing on various successful social enterprises in Afghanistan, Africa, Bangladesh, India, Malaysia, Mexico, Nepal, Philippines and Sri Lanka, we look at the material, information and cash flows of the micro-entrepreneurs for these social enterprises. We show how a social enterprise helps its associated micro-entrepreneurs by improving the latter’s supply chain operations via: (1) easier access to financial credits; (2) easier access to market information; (3) easier market access; and (4) better access to supplies and raw materials and higher productivity through better health and equipment. We then speculate on how to make social enterprises economically sustainable and propose that social enterprises would be better off enabling micro-enterprises rather than running production operations themselves.     

调节收入分配缩小贫富差距

2006年5月26日,中共中央政治局召开会议,主要研究改革收入分配制度和规范收入分配秩序问题.会议强调,今后要在经济发展的基础上,更加注重社会公平,合理调整国民收入分配格局,加大收入分配调节力度,使全体人民都能享受到改革开放和社会主义现代化建设的成果.中央政治局研究改革收入分配制度的会议精神使广大人民群众深受鼓舞,而如何推进收入分配制度改革,进一步理顺分配关系,完善分配制度,缓解地区之间和部分社会成员之间收入分配差距扩大的趋势,受到社会各界的密切关注.……     

Feeling poor,acting stingy: the effect of money perceptions on charitable giving

In research on philanthropy, much attention has been given to the impact of the actual economic costs of giving. This paper argues that the perceived psychological costs of giving should also be taken into consideration when seeking to understand donations to charitable organizations. It is already known that people differ in their attitudes towards money, and that money attitudes are mostly independent from income, but these findings have been largely overlooked in the study of philanthropy and altruism. This paper seeks to rectify that omission by investigating the relationship between charitable giving and money perceptions. The analyses show that, regardless of the actual financial resources held by a donor, the size of their donations is negatively affected by feelings of retention (a careful approach to money) and inadequacy (people who worry about their financial situation). We conclude that an understanding of money perceptions is an additional important factor in the understanding of charitable behaviour. Fundraising professionals should not only select potential donors based on their absolute financial capacities but also take the potential donor's own financial perceptions into account when asking for donations. Copyright © 2011 John Wiley & Sons, Ltd.     

Resources, conflict and development choices: public good provision in resource rich economies

Natural resource wealth can be a curse or a blessing for a country. This paper hypothesises that the provision of productive public goods (or lack of it) is a pathway that helps understand these different outcomes when policy choices are made under the threat of conflict inherent in resource-rich countries. Facing potential conflict over resources, a self-interested ruler may choose to invest in either military repression or in productive public goods—physical and social infrastructure. While both measures aim at preventing conflict, we show theoretically that the optimal policy choice depends on the relative effectiveness of the ruler and the population in contesting the resources. Increased resource wealth provides a disincentive to invest in development if the ruler is more effective than the population in appropriating the resources. Conversely, if the ruler is relatively ineffective, more resource wealth induces higher levels of public goods. We present empirical evidence consistent with the predictions of the model for a sample of 57 countries over three decades. Thus, we provide and test empirically a conditional resource curse theory, postulating that the relative effectiveness of the contenders plays a crucial role in determining whether resources are a curse or a blessing.     

Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal

This paper investigates urban decline and renewal in the United States using three panels that follow neighborhoods on a geographically consistent basis over extended periods of time. Findings indicate that change in neighborhood economic status is common, averaging roughly 13 percent per decade; roughly two-thirds of neighborhoods studied in 1950 were of quite different economic status fifty years later. Panel unit root tests for 35 MSAs indicate that neighborhood economic status is a stationary process, consistent with long-running cycles of decline and renewal. In Philadelphia County, a complete cycle appears to last up to 100 years. Aging housing stocks and redevelopment contribute to these patterns, as do local externalities associated with social interactions. Lower-income neighborhoods appear to be especially sensitive to the presence of individuals that provide social capital. Many of the factors that drive change at the local level have large and policy relevant effects.     

The future's poor: Projecting the population eligible for federal housing assistance

Microanalytic simulation techniques are used to show that, under a reasonable set of assumptions, the real income of elderly households can be projected to grow at a rate higher than that of other population groups over the next several decades. Simulation modeling also shows that current low marriage and fertility rates and high divorce rates, if continued, will lead to a future population that is proportionately more elderly and of smaller average family size. A number of federal, state, and local assistance programs restrict eligibility to low-income households. In an application to the major federal housing assistance program, it is shown that future growth in the number of elderly households may well be offset by their relatively high income growth, leaving the proportion elderly among those eligible for assistance essentially unchanged over the next 40 years. The findings imply that future changes in the demographic composition of the U.S. population may not be reflected in the composition of the low-income population. This possibility should be considered in planning assistance programs targeted on the poor.     

高校贫困生认定:现状、问题与对策

在现行的高校贫困生资助体系中,高校贫困生认定是高校贫困生资助政策执行过程中的一个难题.针对资助政策本身所具有的模糊性,高校普遍结合自身的实际情况对贫困生的认定方法进行了具体化.文章针对我国高校贫困生认定的现状,分析了各高校中普遍采用的认定方式、认定方法与认定标准,在此基础上对我国高校贫困生认定中的问题进行了探析与说明,并进一步提出了改进与完善高校贫困生认定工作的建议.     

高校贫困生认定:现状、问题与对策

在现行的高校贫困生资助体系中,高校贫困生认定是高校贫困生资助政策执行过程中的一个难题。针对资助政策本身所具有的模糊性,高校普遍结合自身的实际情况对贫困生的认定方法进行了具体化。文章针对我国高校贫困生认定的现状,分析了各高校中普遍采用的认定方式、认定方法与认定标准,在此基础上对我国高校贫困生认定中的问题进行了探析与说明,并进一步提出了改进与完善高校贫困生认定工作的建议。     

A purposeful approach for implementing preventive measures among European teaching professionals: bullying,deteriorated organizational factors and the mediating role of job dissatisfaction in poor health perception

Abstract

This research aims at examining how workplace bullying, a collection of predominant organizational factors and job dissatisfaction may both directly and indirectly influence the emergence of negative health perception among teaching professionals in occupational settings. The method utilized for testing the research hypotheses is based on Partial Least Squares Structural Equation Modeling (PLS-SEM), which enables the simultaneous assessment of construct measurement and the estimation of hypothesized relationships. A sample population of 2328 European educators has been employed to reach research objectives. Results suggest that negative health perception escalates when there is a direct conditioned correlation between this factor and either bullying or certain working conditions, while indirect effects are unveiled when dissatisfaction is added to the research framework as mediating construct. From a theoretical perspective, this work contributes to human resource management research on the subject of detection and prevention of those underlying organizational constituents that might potentially undermine occupational health. From a utilitarian perspective, the findings of this research encapsulate promising implications not only for teaching professionals but also for educational institutions that pursue the continual improvement of health and performance in their educators through human resource management.     

Boom, bust, and the poor: Poverty dynamics in the Middle East and North Africa, 1970–1999

This paper analyzes changes in poverty and inequality in the Middle East and North Africa. It finds that the structural relationship between poverty reduction, income growth and distribution is the same for MENA and other developing economies. Prior to 1985 rapid growth sharply reduced poverty. After 1985, despite very low income growth, a rising share of income accruing to the lowest quintile meant that the average income of the poor rose more rapidly than that of the non-poor. These unusual poverty dynamics were primarily due to international migration. Remittances both increased per capita incomes in labor exporting countries and increased the share of income accruing to the poor.     

Supervisors and their response to poor performance: A study of disciplinary decision making

This study examines how first-level supervisors make disciplinary decisions when faced with a performance problem. Using a policy-capturing design, subjects (supervisors from a nonunion financial services organization) were asked to make disciplinary decisions about cases that varied in terms of six different factors: magnitude of the performance decrement, documented warning, waiver, tenure, past performance, and the manner of the employee. The impact of these factors was examined in order to gain insight into the degree to which key social and institutional norms impact disciplinary decisions and, in turn, generate nascent rights for employees. The findings are suggestive as to the relative importance of these norms within the sample as a whole as well as for individual managers within the sample. The implications for our understanding of the role of nascent rights within disciplinary systems are discussed.