Giving MMT the credit it is due

Business Economics - Discussions of Modern Monetary Theory elicit surprisingly strong passions. Many of the critiques of MMT by conventional macroeconomists are valid, yet there is a resistance to...     

Will nonowners follow pioneer consumers in the adoption of solar thermal systems? Empirical evidence for northwestern Germany

In Germany, solar thermal systems (STSy) have only diffused to a minor extent as yet. This paper analyzes which demand side factors are decisive for the further proliferation of this environmentally benign technology. Making use of a consumer survey in northwestern Germany in 2007, we examine the following parameters: positive environmental attitude, knowledge of the applicability of STSy to satisfy consumer needs, and the presence of STSy among peer consumers. Drawing upon theoretical foundations from innovation economics and social psychology, we posit that these variables play a different role at distinct stages of the systems' diffusion process. Among nonowners, concrete plans to purchase such a system within the next two years are distinguished from the general interest to invest in this technology within the next five years. Probit models are estimated to test our hypotheses. Our results do not indicate a strong take-off of product diffusion within the next few years. By generating interest for the product, environmental attitude and knowledge as well as household income are important determinants of prospective adoption on the part of nonowners. However, it is only peer group behavior that appears to function as a trigger for the diffusion of this technology.     

The Scenario of Lean Product Development in Brazilian Auto-industry

The purpose of this paper is to evaluate the impact of lean product development （LPD） in the Brazilian automotive sector. A mailed-questionnaire survey was used to examine 23 questions about LPD principles and practices. The target population for the study was Brazil＇s largest product development and design companies. The study identified that although the automobile sector is seen as a reference in the adoption of lean practices, there is still potential for improvement by establishing partnership relations with suppliers, and with those on the other points of the chain by identifying what provides value to clients. Set-based concurrent engineering is also a practice that needs to be better developed, as well as the value stream mapping tool to identify waste and activities that add value to the product development process. There has been no previous study of this nature in Brazil that characterizes the sector and highlights its importance in relation to the global scene, providing incentives to international investors. The value of the work is in the results that allow diagnosing the lean development practices that are most used in the automotive sector. Moreover, the survey questions can be applied in other economic sectors and at companies of other sizes. The study contributed to providing a systematic view of the product development process from the perspective of people, processes, and technology, and assists companies and academics manage change.     

Monetary policy and real estate prices: a disaggregated analysis for Switzerland

Most empirical studies found that monetary policy has a significant effect on house prices while stock markets remain unaffected by interest rate shocks. In this paper we conduct a more detailed analysis by studying various sub-segments of the real estate market. Employing a new dataset for Switzerland we estimate vector autoregressive models and find positive interest rate shocks to have adverse effects on house and condominium prices on the one hand and rental prices on the other. Commercial property prices as stock markets do not react on interest rate variations.     

Conservation agriculture practices adopted in southern Brazil

The adoption of conservation agriculture (CA) practices are essential for soil and water conservation. In CA, farmers must adopt no-tillage (NT) with crop rotation to maintain a permanent soil cover. In Brazil, mainly in the South region, for CA to be more efficient, practices such as contour farming and agricultural terraces should also be adopted. Thus, the objective of this study is to determine the extent to which NT has been adopted with crop rotation and others soil and water conservation practices. Data from the Agricultural Census in Paraná State, southern Brazil, were used. For the data analysis, the relationship between the level of adoption of NT and the use of crop rotation, contour farming and agricultural terraces was analyzed. A factor and cluster analysis were performed to distinguish regions in terms of soil and water conservation practices. The results show good overall soil and water conservation practices, although heterogeneity has been observed in the adoption practices between regions. Adoption of NT is high in almost all the studied regions. The conservation practice most widely used with NT is contour farming, whereas the least used is agricultural terraces. Conservation practices for runoff control are being neglected by farmers.     

Economics training and hyperbolic discounting: training versus selection effects

This paper contributes to the literature on the effects of economics training on behavior by examining the link between hyperbolic discounting and the number of economics classes taken by a sample of 1310 college graduates at Ohio University. A strong negative correlation is found between economics training and hyperbolic discounting behavior. Regression analysis shows that dynamic consistency is a determinant of taking economics classes. Once the endogeneity of these variables is accounted for, economics training is no longer a statistically significant determinant of hyperbolic discounting. Thus, the selection effect of studying economics outweighs the training effect. Behavioral variables are found to be more important in explaining hyperbolic discounting than demographic variables. The study suggests the importance of controlling for both the selection effect and the training effect for all studies that examine the role of economic training on behavior.