FORMALIZING WIESER's THEORY OF DISTRIBUTION: CONSISTENT IMPUTATION IN ALTERNATIVE THEORETICAL PERSPECTIVES

Wieser's theory of value and distribution has been formalized and interpreted mainly in the framework of efficient allocation of scarce resources. To this end, the mathematical techniques of linear programming have been used by such authors as Samuelson and Uzawa. This paper presents briefly what may be called the Knight–Samuelson–Uzawa formalization and supplements it with different proposed formalizations of some further aspects consistently developed in Wieser's works. The formalization that we propose concerns Wieser's theory of interest and his theory of value for ‘cost goods’. It is argued that in such cases the produced means of production, and not the endowments of scarce resources, are at the centre of Wieser's analysis. It is shown that some appropriately specified models in the Sraffa–von Neumann–Leontief tradition can very usefully be employed in order to strengthen Wieser's intuitive arguments and give them a sound analytical structure.     

ON THE HIERARCHY OF SOME QUALITATIVE STRUCTURES IN THE VON NEUMANN AND RELATED MODELS

In this paper we collect some old and new qualitative-structural properties on the input and output matrices involved in the classical von Neumann model, properties relevant, from the formal and/or economic point of view, in the study of the equilibria of the said model. It is established the hierarchy, i.e. the relations of inclusion, partial overlapping and disjunction, among these properties, which permits to amend some current slips in the analysis of the von Neumann model (one due to von Neumann himself). The results obtained can be fitted to other production and exchange multisectorial models.     

REDUCIBLE VON NEUMANN MODELS AND UNIQUENESS

This paper can be regarded as a result of basic research on the technological characteristics of the von Neumann models and their consequences. It introduces a new taxonomy of reducible technologies, explores their key distinguishing features, and specifies which ones ensure the uniqueness of von Neumann equilibrium. A comprehensive comparison is also given between the familiar (in)decomposability ideas and the reducibility concepts suggested here. All these are carried out with a modern approach. Simultaneously, the reader may also acquire a complete picture of and guidance on the fundamental von Neumann models here.     

NEGATIVE LABOUR VALUES AND THE PRODUCTION POSSIBILITY FRONTIER

Steedman's theoretical finding of negative labour values associated with positive equilibrium prices has been criticised on the grounds that this situation obtains only in inefficient economies. A recent paper by Hosoda claims that this criticism is valid only in two-dimensional joint-product systems. It is argued here that the dimensionality of the system is of no relevance to the “inefficiency critique” of Steedman. Rather, the validity of the critique turns on matters relating to the growth rate and the rate of profit. The argument that processes inefficient in a static context may be viable in the context of von Neumann growth is considered, and the implications for the labour theory of value are assessed. Marx's critique of capitalist economic calculation is supported by reference to the divergence of Sraffian prices and Samuelsonian values when the rate of profit is in excess of the rate of growth.     

An Aspect of Family Enterprise in the Industrial Revolution

The status hierarchy in Japanese enterprises collapsed during the tumultuous years of ‘total war’ and post-war democracy, and the ‘Japanese employment system’ was greatly affected by the ‘white-collarisation of blue-collar workers’. This transformation can be seen through changes in the work rules and wages systems at Hitachi Electric from the 1930s to the 1950s. The labour ideology of the wartime planned economy, which saw enterprises as ‘production communities’ and assumed equality between white- and blue-collar workers, challenged the nature of employment relations. As the experience of the post-war union movement reveals, this wartime ideology exerted a pervasive influence on Japanese labour, and, during the US Occupation, it forced widespread, ‘democratic’ reforms on enterprise management. In consequence, the main elements of the Japanese employment system were formed and reinforced during the 1950s and 1960s.     

LONG RUN DEMAND FOR LABOUR IN THE CONSUMER GOOD INDUSTRY

We consider, for alternative models of production, the comparative statics of constant‐returns economies in long run competitive equilibrium, for which reswitching, capital‐reversing and consumption‐reversal are all completely absent. Notwithstanding the ‘well‐behaved’ nature of these economies, the use of labour per unit of output in the consumer good industry is always positively related to the real wage rate.     

ON A GENERALIZED VON NEUMANN MODEL

The main aim of the paper is to give a constructive proof to an existence theorem concerning the generalized von Neumann model à la Morishima in a particular case which arises by dropping and replacing a strong continuity assumption of Morishima, whose existence theorem does not work (as the appendix example shows) when all of Morishima's other assumptions but that continuity assumption hold. In particular, the paper proves that the generalized von Neumann model à la Morishima has a solution when all people consume the same commodities in the same proportions, with a substitution effect equal to zero, even if some commodities are never consumed and not all processes require labour. Moreover, it shows a way to construct a solution by solving a Linear Complementarity Problem with Lemke's complementarity pivot algorithm.     

Long‐term Effects of the Efficiency Wage Hypothesis in Goodwin‐type Economies

The existence of an efficiency wage mechanism in Goodwin‐type models may lead to the unexpected appearance of an economically meaningful equilibrium with zero labour share, which is globally stable for some parameter constellation and allows the system to attain its ‘maximal growth'. A subsequent ‘normative’ comparison between the possible long‐term regimes of the economy shows that (1) the zero labour share equilibrium can be the ‘preferred’ equilibrium in terms of welfare; (2) in all the long‐term regimes the welfare is higher than in the original Goodwin model; (3) a point of maximal welfare exists. Moreover, the effects of rational behaviour of firms are compared with the ‘traditional’ situation in which rationality is not explicitly assumed. A striking result appears: myopic rationality can have deleterious effects on the profit of firms and on the overall welfare of the economy.     

Conclusion: Korean business and management – the end of the model?

Recent financial crisis has raised questions about the underpinnings and longevity of economic success in Asia, and has reminded us to be sceptical of pundits and the eponymous populist predictions relating to the region. Several perspectives can guide the analysis and evaluation of industrialization, from ‘state’ versus ‘market’, ‘internal’ versus ‘external’, and ‘macro’ versus ‘micro’. Companies in Korea as ‘latecomers’ have pursued ‘catch-up’ strategies. However, Korean corporate capabilities reside in a restricted number of industries, firms and functions (production), and are poor elsewhere, such as in marketing, technology (design and development) and organization, and small and medium-sized enterprises. Furthermore, many factors regarded once as sources of Korea's success are now seen as weaknesses. The future challenges facing Korea include its dirigiste economy, organizational structures and governance, financial transparency and labour market flexibility. While there are undoubted problems, its urgent tasks are not insurmountable.     

MEASURES OF PRODUCTION PRICE‐LABOUR VALUE DEVIATION AND INCOME DISTRIBUTION IN ACTUAL ECONOMIES: A NOTE

Many empirical studies indicate that the deviations of actual prices of production from labour values are not too sensitive to the type of measure used for their evaluation. This paper attempts to theorize this rather ‘stylized fact’ by focusing on the relationships between the traditional and the numéraire‐free measures of deviation. On the empirical side, it provides an illustration of these relationships using input–output data from the Japanese economy.     

The Changing Nature of Japanese Production Systems in the 1990s and Issues for Labour Studies

The authors discuss the changing character of production strategies and organizational arrangements at three leading Japanese automotive assemblers against a background of concern with the impact of work regimes upon employees. Innovations in production line organization are compared within and between the companies, and the argument advanced suggests that the attempt to ‘humanize’ work routines and procedures, by the leading company especially, has met with mixed results. Sornetimcs more ‘efficient’ technologies and forms of organization have been inhibited in the pursuit of ‘human-centred’ forms of work organization. Nevertheless, the article points up the considerable variations which exist both between and within Japanese companies and trade unions with respect to the understanding of the role played by labour.     

Exports,Foreign Direct Investment and Employment: The Case of China

This paper analyses the growth of production and employment in China during the period 1978 to the early 1990s. It argues that the Chinese experience with export‐led growth provides an excellent case study of the phenomenon of a vent for surplus resources provided by exports, identified by Adam Smith in the Wealth of Nations and elaborated by Hla Myint. The paper extends the Smith‐Myint model of ‘vent‐for‐surplus’ productive capacity to ‘vent‐for‐surplus’ resources by allowing for foreign investment flows. The ‘vent‐for‐surplus’ effect of exports on employment and growth is examined in a dynamic labour demand framework for a panel of township and village enterprises (TVEs) in China.     

The Pathological Export Boom and the Bazaar Effect: How to Solve the German Puzzle

Germany is the laggard of Europe, yet the country is world champion in merchandise exports. The paper tries to solve this theoretical and empirical puzzle by diagnosing a ‘pathological export boom’ and a ‘bazaar effect’. Excessively high wages defended by unions and the welfare state against the forces of international low‐wage competition destroy too big a fraction of the labour‐intensive sectors and drive too much capital and labour into the capital‐intensive export sectors, causing both unemployment and excessive value added in exports. Moreover, excessive wages induce too much outsourcing of upstream production activities, which implies that export quantities grow too much in relation to value added contained in exports. Finally, excessive wages cause capital flight resulting in a too large current account surplus.     

THE VON NEUMANN VERSION OF DE VITI DE MARCO'S MODEL THE CASE OF PUBLIC INTERMEDIATE COMMODITIES

As a substantial share of the national product is absorbed by the public sector, it may be interesting to examine the consequences of public sector activities introducing externalities into a von Neumann model. Previous approaches have shown some limitations and shortcomings which may be solved by introducing each externality as a different von Neumann commodity, distinguished on the basis of its user. These public intermediate commodities (pic) are related only to the production side of the economy. We will suppose their total available amount to influence directly the use and the intensity of one or more productive processes. Pic are also one of the premises and foundations of the public sector normative and positive theory of De Viti De Marco. In our model we will try to follow his line of reasoning as faithfully as possible, even if we shall confine ourselves to the original von Neumann (or KMT) model. It may be surprising to see how easily pic will fit into the von Neumann model, but this should not be unexpected after the article by Morishima and Thompson. We will show how the rate of growth of the von Neumann economy (where the prices of pic are determined by the equilibrium solution and paid through taxation) is greater than the one which will be determined by the private market equilibrium where pic are free.     

From Public Education to Social Marketing: The Evolution of the Canadian Heritage Anti-Racism Social Marketing Program

SUMMARY

Over recent years, whilst there has been increasing acceptance of the existence and role of marketing in the political arena, there has also been much discussion as to the applicability of its concepts and models. This paper focuses upon issues surrounding definition of the ‘product’ and the ‘marketing mix.’ It examines the varying definitions of the political ‘product’ and, from the perspective of elector as ‘consumer,’ offers its own. In addition it suggests that political marketers should follow the lead of their counterparts in the fields of service and social marketing and modify the marketing mix to suit the political environment in which they function. Finally, based upon existing definitions of the political ‘product’ and the criticisms of the current marketing mix frameworks, initial suggestions are made for the provision of a new political marketing mix.     

Globalization,labour and the state: the case of Indonesia

Globalization has allowed internationally mobile capital to successfully ‘demand’ favourable investment climates, thereby increasing pressure on states to restrict the activities of organized labour. In the advanced industrial countries, the enhanced bargaining position of capital has helped to undermine the welfare state, the great compromise between state, capital and labour. But newly emerging labour movements in late industrializing countries like Indonesia are especially disadvantaged because of the global context characterized by the weakened bargaining position of labour. Nevertheless, labour strife has been on the rise in Indonesia in spite of long-established state mechanisms of labour control, usually legitimized in official discourse by reference to supposedly authentic Indonesian values that eschew conflict. This has to do with the gradual development of an urban-based industrial working class as the product of sustained industrialization until the economic debacle of 1997.     

Fiat Money,Individual Rationality and Production

Wallace's ‘Monetary Dictum’ insists that monetary models must specify why the monetary object is so used. Another important specification is that the use of this object as money should always be individually rational. We construct a model of ‘team production’ under uncertainty with a contract where a ‘hostage’ in the form of future purchasing power is handed over. The model is extended to show the rational development of banks as hierarchical enforcement mechanisms and government backing of the monetary system. The link thus established between money issue and production may be useful for the analysis of monetary policy.     

The Ethical Agendas of Employment Agencies Towards Migrant Workers in the UK: Deciphering the Codes

This article examines the connections between employment agencies, ethics and migrant workers. The article identifies three approaches adopted by agencies towards ethics and migrant workers, namely, ‘business case’, ‘minimal compliance’ and ‘social justice’ approaches. Through case studies of three agencies in the UK, the article explores the potential and limitations of each of these approaches for meeting the needs of migrant workers. The article points to the limitations of both the business case and ‘minimal compliance’ approaches, stemming from tensions between the attempt to put in place ethical approaches towards the employment of migrant workers and the imperatives of the competitive strategies being pursued by agencies. The article points to the potential for social enterprise agencies to effectively meet the needs of migrants. These agencies can focus on more than just the first transition of migrants into the labour market; can formalize transitions within the labour market and link people to jobs that are more appropriate to their skills and experience, as a means of preventing the perpetuation of skill underutilisation.     

A GOODWINIAN MODEL WITH DIRECT AND ROUNDABOUT RETURNS TO SCALE (AN APPLICATION TO ITALY)

This paper re‐formulates and tests statistically a hypothetical law (HL) of capital accumulation that manifests itself in three scenarios for Italian economy. HL refines Verdoorn law and ‘Ricardian’ relationship between employment and returns; it generalizes neoclassical and Goodwinian models. Big cycles are not sustainable in inertia Scenario I. Lowering direct diseconomy of scale does not alter a non‐trivial stationary state in stabilization Scenario II. Weakening an inverse relation between employment ratio and growth rate of capital intensity raises stationary relative labour compensation without deteriorating profitability in stabilization Scenario III. Stationary states with zero relative labour compensation are not economically relevant.     

Configuration and Development of Alliance Portfolios: A Comparison of Same-Sector and Cross-Sector Partnerships

This paper explores the intersection between three processes associated with globalisation. First, the rise of emerging economies like China, Brazil and India, the so-called ‘Rising Powers’, and their potential to define the contours of globalisation, global production arrangements and global governance in the twenty-first century. Second, the importance of corporate social responsibility (CSR) goals in the shaping of global trade rules and industrial practices. Third, the significance of small firm clusters as critical sites of industrial competitiveness. Some of the most significant examples of successful, innovative and internationally competitive small firm clusters from the developing world are located in the ‘Rising Powers’ and cluster promotion is a core element of national industrial policy in some of these countries. There is also evidence of engagement by clustered actors with corporate social responsibility goals around labour and environmental impacts. While these three processes have been separately studied there has been no attempt to explore their intersections. This paper addresses this gap through a comparative analysis of secondary data, and a detailed reading of the literature, on CSR and clusters in Brazil, China and India. It assesses the evidence on small firm clusters in the Rising Power economies and considers how these Rising Power clusters engage with CSR goals pertaining to labour, social and environmental standards. It argues for a greater focus on the formal and informal institutional context, termed the ‘social contract’, in explaining divergent experiences and practices observed across these countries. This raises important questions for future academic and policy research on clusters, CSR and the Rising Powers. The paper concludes by outlining a research agenda to explore the local and global consequences of the relationship between Rising Power clusters and international labour and environmental standards.