Innovation and productivity in the food vs. the high-tech manufacturing sector

ABSTRACT

The food sector is considered a mature industry characterized by low research and development (R&D) intensity. Nevertheless, food companies face numerous challenges and cannot do without innovation activity if they want to keep their competitiveness. In this study, we examine the impact of innovation on labor productivity in European food companies and compare it to results for firms operating in high-tech sectors. The central motivation of our study is that the low R&D intensity observed in the food sector should be mirrored in different productivity effects of innovation when compared to the high-tech sector. We use microdata from the European Union's ‘Community Innovation Survey’ (CIS) and apply an endogeneity-robust multi-stage model that has been applied by various recent studies. Our results point out major differences between the examined subsectors. While we find strong positive effects of innovation on labor productivity for food firms, we find insignificant effects in the high-tech sector. This might suggest that the returns to innovation might be best evaluated separately by sector rather than for the manufacturing sector as a whole.     

Changes in Attitudes Towards Business Ethics Held by Former South African Business Management Students

The objective of this study was to assess whether, and how, the attitudes towards business ethics of former South African business students have changed between the early 1990s and 2010. The study used the Attitudes Toward Business Ethics Questionnaire and applied a comparative analysis between leading business schools in South Africa. The findings of this study found a significant change in attitudes based on a set time frame, with a trend towards stronger opinions on business ethics and espoused values. Eleven factors came out as fundamental, although they were less able to explain the variation in the attitudes than the previous study. A significant change in the rankings of variables was noted and indicated a shift in attitude toward a teleological moral philosophy as well as utilitarian motives. This shows a clear trend towards compliance-based ethics, which can be explained by the proliferation of business legislation and regulation in the wake of recent corporate governance failures and the subsequent global financial crisis.     

On the existence of shadow prices

For utility maximization problems under proportional transaction costs, it has been observed that the original market with transaction costs can sometimes be replaced by a frictionless shadow market that yields the same optimal strategy and utility. However, the question of whether or not this indeed holds in generality has remained elusive so far. In this paper, we present a counterexample which shows that shadow prices may fail to exist. On the other hand, we prove that short selling constraints are a sufficient condition to warrant their existence, even in very general multi-currency market models with possibly discontinuous bid–ask spreads.     

Updating Poverty Maps with Panel Data

This paper extends the methodology of Elbers, C., Lanjouw, J. O., & Lanjouw, P. (2003). Micro level estimation of poverty and inequality. Econometrica 71(1), 355–364 and presents a low cost approach to arriving at small area welfare estimates for non-census years. The approach requires panel data and the estimation of a relation between per capita consumption from the year of interest and household characteristics from the census year. The method is illustrated for Uganda. It is shown that with the exception of the North progress in rural poverty reduction was broadly shared during 1992–99. Areas with high initial levels of poverty appear to have benefited less from growth.     

EXECUTIVE REWARD SYSTEMS: A CROSS-NATIONAL COMPARISON*

This article examines executive compensation in the United States, France, and the Netherlands. A brief review of executive compensation literature is conducted to expose its implicit value systems. Next, a qualitative study examines the interpretive schemas that executives express about the pay-performance relationship; US-developed expectancy theory and agency theory serve as a benchmark. the results indicate that US executives understand compensation in different terms from those employed by their European counterparts.     

Homo oeconomicus and homo politicus in Ecological Economics

The model of homo oeconomicus has been criticised in Ecological Economics. We discuss this critique and alternative approaches that have been developed in the literature. In contrast to these approaches, which are based on Arrow's concept of the Social Welfare Function, psychology, biology, and general considerations, we propose a concept of homo politicus that is founded in political philosophy. We show that this concept is suitable for normative purposes of Ecological Economics. At the same time, we demonstrate in a case study that the concept has empirical relevance in explaining real political processes.     

Productivity Dynamics with Technology Choice: An Application to Automobile Assembly

During the 1980's, all Japanese automobile producers opened assembly plants in North America. Industry analysts and previous research claim that these transplants are more productive than incumbent plants and that they produce with a substantially different production process. I compare the production processes by estimating a model that allows for heterogeneity in technology and productivity, both of which are intrinsically unobservable. The model is estimated on a panel of assembly plants, controlling for capacity utilization and price effects.
The results indicate that the more recent technology uses capital more intensively and it has a higher elasticity of substitution between labour and capital. Hicks-neutral productivity growth is estimated to be lower, while capital-biased (labour-saving) productivity growth is higher for the new technology. Using the estimation results, I decompose industry-wide productivity growth and find plant-level changes in lean plants to be the most important contributor. Plant-level productivity growth is further decomposed to reveal the importance of capital-biased productivity growth, increases in the capital–labour ratio, and returns to scale.     

The Statistical and Economic Role of Jumps in Continuous-Time Interest Rate Models

This paper analyzes the role of jumps in continuous‐time short rate models. I first develop a test to detect jump‐induced misspecification and, using Treasury bill rates, find evidence for the presence of jumps. Second, I specify and estimate a nonparametric jump‐diffusion model. Results indicate that jumps play an important statistical role. Estimates of jump times and sizes indicate that unexpected news about the macroeconomy generates the jumps. Finally, I investigate the pricing implications of jumps. Jumps generally have a minor impact on yields, but they are important for pricing interest rate options.     

Techno-ökonomische Bewertung von Energie-Autarkie für die Energieversorgung von Einfamilienhäusern

Many consumers currently follow the idea of energy self-sufficiency and try to contribute to meet their energy needs in order to become independent and self-sufficient from the central power supply system. In order to achieve load-oriented energy self-sufficiency the provision of energy must cover the full energy demand at any time. Against this background, in this paper the costs and potentials of a load-oriented energy self-sufficiency of single-family homes are analysed. Thereby it is differentiated between electricity-, heat- and energy self-sufficiency. The modelling is carried out with the simulation environment ?Polysun Designer“ which allows a high temporal dynamic simulation of the annual energy demand and supply.The results show that, within the investigated supply variations, the highest levels of energy self-sufficiency can be achieved by an energy supply system completely based on electricity using a combination of PV; heat pump and battery storage. Depending on the building standard, a maximum of 45 (existing buildings) and 71?% (new buildings) of the building’s energy demand can be covered with renewable energy. The economic evaluation however has shown that under present conditions, none of the investigated supply variants can compete with conventional energy supply (public grid connection + gas condensing boiler).