What do we one the future? the construction of a better present

The debt-to-the-future issue is discussed taking into account that it is not simply a poetic or innocent statement but a present complex problem. An analytical approach through the issue of risk and uncertainty might allow us to delimit our reflection. At the same time, it might become the main axis in the reality we face today, since risk, reliability, and uncertainty appear as characteristic features of modern society. Participatory processes, as manifestations of post-normal science, are proposed as a way to cope with uncertainty.     

STATE DEPENDENT PRICING AND BUSINESS CYCLE ASYMMETRIES*

We present a tractable, dynamic general equilibrium model of state‐dependent pricing and study the response of output and prices to monetary policy shocks. We find important nonlinearities in these responses. For empirically relevant shocks, this generates substantially different predictions from time‐dependent pricing. We also find a distinct asymmetry with state‐dependent pricing: Prices respond more to positive shocks than they do to negative shocks. This is due to a strategic linkage between firms in the incentive for price adjustment. Our state‐dependent model can account for business cycle asymmetries in output of the magnitude found in empirical studies.     

Futures sustainability

This article presents a strategic framework to guide public policy with respect to very long-term futures. The framework is based upon three fundamental principles. Threats to meeting the principles are assessed. Integrated planning responses to overcoming the threats are proposed. Significant changes in economic, political and social theory and organization required to support the strategic responses are discussed. It is argued that human civilization would need to pass through the mythic ‘singularity’ on the path to futures sustainability.     

Static profitability as a measure of deviations from the competitive norm

Recently, several industrial-organization economists have claimed that the rate of return on sales (II/S) is superior to the rate or return on assets (II/K) as a measure of monopoly power. This paper argues that there is no reason to prefer one index over the other. To make the point, an oligopoly model of optimizing agents is derived that yields II/K as a performance measure. The derivation leads to natural interpretations of the two indices and therefore to clarification of the circumstances under which each might be preferred.     

Export oriented growth of output and employment in Taiwan and Korea, 1973/74—1983/84

Zusammenfassung Exportorientiertes Wachstum von Produktion und Besch?ftigung in Taiwan und Korea von 1973/74 bis 1983/84. — Die exportorientierte Industrialisierung in Taiwan und Korea begann in den sechziger Jahren. Jedoch gab es in den siebziger Jahren externe Schocks, welche für diese beiden dynamischen Volkswirtschaften eine Bedrohung darstellten. Die beiden untersuchten L?nder reagierten auf die externen Schocks in unterschiedlicher Weise. Korea begann in der zweiten H?lfte der siebziger Jahre, die Schwerindustrie auszubauen, w?hrend Taiwan die internationale Wettbewerbsf?higkeit seiner kleinen und mittleren Unternehmen zu verst?rken suchte. Die Autoren dieses Aufsatzes benutzen ein Input/Output-Modell, um die unterschiedlichen Wirkungen auf Wachstum und Besch?ftigung zu zeigen, die sich aus diesen verschiedenen Reaktionen in der Zeit von 1974 bis 1984 ergaben. Im ganzen scheint das Vorgehen Taiwans erfolgreicher gewesen zu sein, um Exporte, Besch?ftigung und Strukturwandel zu f?rdern.

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Résumé L’accroissement de l’output orienté vers l’exportation et l’emploi au Taiwan et en Corée, 1973/74—1983/84. — L’industrialisation qui est orientée vers l’exportation au Taiwan et en Corée a commencé dans les années 1960. Cependant, dans les années 1970 des chocs extérieurs ont menacé ces deux économies dynamiques. Ces deux pays ont réagit sur ces chocs d’une manière différente. La Corée a initié une stratégie de l’industrialisation concentrée sur l’industrie lourde dans la deuxième moitié des années 1970. Le Taiwan a mis l’accent sur l’augmentation de la compétitivité internationale de ses entreprises de taille petite et moyenne. Dans l’étude présente on utilise un modèle ?input-output? pour montrer les effets des actions différentes sur l’accroissement de la production et de l’emploi pendant les années 1974 à 1984. En général, il semble que la stratégie économique de Taiwan a eu plus de succès à stimuler l’exportation, l’emploi et le changement structurel.

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Resumen El crecimiento del producto y del empleo orientado hacia las exportaciones en Taiwan y Corea 1973/74—1983/84. — La industrialización orientada hacia las exportaciones comenzó en Taiwán y Corea en la década de los sesenta. En los afios setenta, empero, shocks externos significaron una amenaza para estas economías dinámicas. Las respuestas de ambos divergieron durante la década de shocks externos. Corea inició una estrategia de industrialización pesada en la segunda mitad de los a?os setenta. Taiwán enfatizó la creciente competitividad de sus empresas de escala peque?a y mediana. En este trabajo se utiliza un modelo insumo-producto para mostrar las diferencias en los efectos de crecimiento y empleo de estas diferentes respuestas durante el período 1974–1984. En general, el enfoque de Taiwan parece haber sido el mejor en promover las exportaciones, el empleo y el cambio estructural.

     

The ethics of corporate governance

The failure of the critics of corporate governance to agree on what should be done to improve the governance process can, in most cases, be traced to a different understanding of the role of corporate directors in that process. This article analyzes and contrasts the obligations of directors under two legal theories, the fictional person theory and the organic theory, of the corporation. A comparison of the director's obligations under each theory indicates that the organic theory provides a better basis for assessing the performance of directors and initiating reform.Among the boards of directors of Fortune 500 companies, I estimate that 95% are not fully doing what they are legally, morally, and ethically supposed to do. And they couldn't, even if they wanted to.E. Eugene Arthur, S.J., is Associate Professor of Management and Economics at Rockhurst College. He is a Visiting Fellow at Trinity Center for Ethics and Corporate Policy.     

Operationalization,a superfluous concept

This paper discusses a number of issues in the methodology of social and behavioral sciences which concern how concepts are defined and related to observations, how theories are constructed, and how we proceed in actual research. Examples are mainly taken from experimental psychology, and from social psychology, but the problems and answers apply to the whole of behavioral and social sciences. These issues are related to philosophy of science. They are, however, presented from the point of view of a researcher who asks himself how to proceed in actual research, and who is critical about the present status of social and behavioral science. The main point is a pledge for a renewed empiricism. This is close to what can be called logical empiricism but should not be identified with any particular-ism. Some issues raised by critics of logical empiricism are addressed in the final section. The first problem deals with how to clarify concepts in behavioral and social science. This will show an unresolvable circularity in operationalization of theoretical constructs. The position and role of measurement is discussed in relation to the objectives of behavioral and social research. Subsequently, it is pointed out that a clear distinction between empirical concepts and theoretical constructs solves many, if not all of the problems of defining and clarifying concepts, thereby obviating the need for a so-called operationalization. It should, however, be very clear from the beginning that we cannot do without operational definitions of theoretical concepts, and that to some extent we must return to the original spirit of operationism, although in a manner which is different from current practice. An important element of the advocated approach is the definition of the empirical domain of a theory in terms of observational categories. Guttman's facet design can be a useful tool to define domains, especially for non-experimental research.