Modeling Financial Integration,Intra-EMU and Asian-US External Imbalances

Intra-EMU external imbalances in the pre-crisis period up to 2008 are traditionally explained by EMU-oriented factors, e.g. euro-related financial integration. Chen et al. (2013) also emphasize external trade shocks, such as the competitive challenge of emerging Asia and oil exporters to EMU-periphery’s exports. Moreover, Asian-U.S. external imbalances are attributed to financial integration between East Asia and the USA in the aftermath of the East-Asian currency crises in the late 1990s (Angeletos and Panoussi 2011). Acknowledging these empirical facts this paper develops a Buiter (1981) three-country (EMU, Asia, US), two-region (EMU core, EMU periphery) OLG model to investigate the effects of both intra-EMU and Asian-U.S. financial integration on intra-EMU, Asian and U.S. external imbalances. We find that the widening of the intra-EMU external imbalances, in particular of trade imbalances, is related to the growth in Asian-U.S. imbalances and the dynamic inefficiency of the world economy, caused by excessive saving in Asia.     

On the smoothness of optimal paths II: some local turnpike results

We study the local turnpike property for two classes of infinite-horizon discrete-time deterministic maximization problems which have common applications, e.g., optimal growth theory. We follow a functional-analytic approach and rely on an implicit function theorem for the space of the sequences which converge to zero. We shall assume the existence of an optimal path which is not necessarily a steady-state. Relying on material developped in Blot and Crettez (Decis Econo Finance 27:1–34, 2004), “On the smoothness of optimal paths” Decis Econ Finance, 21:1–34, 2004), we provide conditions under which a variation in the initial conditions (i.e., capital stock and discount rate) yields an optimal solution which converges toward a reference solution when time becomes infinite. We also provide new results on bounded solutions of difference equations. We gratefully thank the editor, Silvano Holzer, and two anonymous referees for remarks and advices on a previous version of this paper.     

$$\mathcal{D}$$-optimal Minimum Support Mixture Designs in Blocks

An easy method to construct efficient blocked mixture experiments in the presence of fixed and/or random blocks is presented. The method can be used when qualitative variables are involved in a mixture experiment as well. The resulting designs are -optimal in the class of minimum support designs. It is illustrated that the minimum support designs are more efficient than orthogonally blocked mixture experiments presented in the literature and only slightly less efficient than -optimal designs.     

Action Research is Similar to Design Science

In management information systems (MIS) action research is long considered as promising but low-level research approach. It has an utmost relevance because action researchers are working with practitioners to solve the important practical problem. Design science outlined some years ago is just winning a wider audience. Action research was traditionally classified into qualitative research methods. But it seems to be the “wrong” home of action research. We shall show that after comparison of the seven aspects: concrete results of the study, knowledge produced, activities, the intent and the nature of a study, the division of labor in a study and generation, use and test of knowledge, the concordance between the characteristics of action research on the one hand and of design science on the other hand is very good. Hence, action research and design science should next be considered as similar research approaches, and this is a turning point in the history of both action research and design science.     

The Lowest Supply and Demand of Engineering Officers of National Vessels in Taiwan

This article is based on the number of engineering officers from 1994 to 2000 in Taiwan, and adopts a 6-year moving average to work out the transition probability of engineering officers and to construct an absorbing Markov Transition Matrix to forecast the terms of seniority and annual supply in each hierarchy. In order to estimate the minimum number of vessels needed, this article also employed the quantity of demand for imported consumer goods from 1994 to 2000 in Taiwan and applied a Grey model to predict the annual quantity of demand for imported consumer goods. Furthermore, this article estimated the minimum number of demand for engineering officers according to the minimum number of vessels needed. In addition, this paper used cross-analysis to investigate the manpower supply and demand of engineering officers in Taiwan and obtained some important results, which can be valuable references for pertinent authorities.