Climate Change,Innovation, and Economic Growth: The Contributions of William Nordhaus and Paul Romer

ABSTRACT

William Nordhaus and Paul Romer shared the 2018 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on long-run macroeconomic analysis. Nordhaus adapted the neoclassical growth model to study climate change, while Romer developed a model of innovation-based growth. The authors provide two distinct explanations of what drives growth, and employ contrasting methodologies for interpreting the results of their mathematical models. Macroeconomic policy in general, and climate policy in particular, would benefit from better integrating the theory and methods of these two laureates.     

The way forward: Leadership research in the hospitality industry

This paper constructs a framework for researching leadership in the hospitality industry and reviews previous approaches to hospitality leadership. Four paradigms were constructed from an analysis of the general field of leadership and are used to represent the underlying perspectives of researchers who operate within them. As a result of this analysis the paper seeks to demonstrate how each paradigm can contribute to the application of leadership theory to the hospitality industry and provides a number of new avenues for future research.     

Differences in the Cost of Trade Execution Services on Floor-Based and Electronic Futures Markets

This paper provides new evidence on the impact of electronic trading on brokerage commissions by investigating a sample period that covers the period of transition from floor to electronic trading on the Sydney Futures Exchange. After controlling for liquidity, volatility and broker identity, the introduction of electronic trading remains to be associated with lower brokerage commissions relative to floor markets. The study also provides new evidence on brokerage commissions in futures markets finding that commission fees charged on futures trades average 0.002% of transaction value. This is up to 120 times smaller than the magnitude of brokerage fees charged in stock markets, and considerably lower than the magnitude of brokerage fees assumed for futures markets in previous research. Consistent with existing studies based on stock markets, commissions charged per contract decrease with order size reflecting economies of scale in the provision of brokerage services in futures markets. Commission rates are positively related to bid-ask spreads and price volatility, which proxy for the probability of execution error costs and execution difficulty, respectively. Finally, the identity of the broker is found to be a significant determinant of commissions reflecting different pricing schedules across brokers.     

ECONOMIC ANALYSIS IN THE MAINTENANCE,REPAIR, AND OVERHAUL INDUSTRY: AN OPTIONS APPROACH

This paper presents a practical case application of the real options framework to a multi-stage investment in the aerospace maintenance, repair, and overhaul (MRO) industry. With the deregulated commercial airline industry and military procurement reform, the $44 billion MRO sector must implement tools to remain strategically poised. In this case study, the MRO participant values a multi-stage irreversible expenditure in maintenance equipment and processes under air travel demand uncertainty using a real options analysis. The investment scenario is viewed from a delay, growth, and compound options framework, and an appropriate sensitivity analysis is performed. The main contribution of this paper is the detailed real option framing, valuation, and discussion that may be used as an illustration for industry practitioners or classroom instruction.     

Economics Research at the FTC: Information,Retrospectives, and Retailing

Individual Federal Trade Commission (FTC) cases invariably raise broad questions about consumers, markets, and effective enforcement policy. Recent consumer protection cases raise questions about information regulation. Horizontal merger enforcement has recently focused on retrospective analysis of mergers and the role of the retail sector in predicting the effects of manufacturer mergers. In this paper, we describe research by the FTCs Bureau of Economics that addresses these three areas. We argue that such research is well worth the agencys relatively small resource investment because it demonstrably contributes to more thoughtful policy analysis and better policy outcomes.     

From priority-setting to articulation of demand: Foresight for research and innovation policy and strategy

The paper addresses the application of foresight to research and innovation policy and strategy. It seeks to show an evolution away from a traditional focus on broad-based technological priority setting to a much more focussed and adapted set of applications. The inherent limitations of prioritisation processes are discussed. The more limited aim of articulating specific fields is noted. Recent trends in research and innovation policy have opened new opportunities for the application of foresight. Systemic and demand-side policies require a shared vision on the part of purchasers and suppliers. The role of foresight in such contexts needs both to be enhanced and better understood.An increasing structural focus for foresight exercises is associated not only with broader R&I system reform but also with an engagement with new-wave innovation policies. The success of demand-side measures such as cluster policies and the use of procurement or regulation to stimulate innovation is dependent upon the formation of a common vision between the supply and demand sides, opening the possibility for the application of foresight approaches. We note the emergence of a combination of corrective, disruptive and creative roles.     

Mind the context gap: a critical review of engagement within the public sector and an agenda for future research

Abstract

In this review paper, we critically examine the evidence base relating to engagement within the public sector given a wide range of public services have faced acute human resource challenges over recent years. Our review of 188 empirical studies reveals that much of the evidence focuses attention on individual and job level factors, such that specific public sector contextual contingencies have rarely been considered. Through identifying significant ‘context gaps’, we present a future research agenda addressing the following key areas: i) clarifying the relationship between engagement and public service motivation, ii) further contextualizing general engagement models, iii) exploring cultural, socio-political, and institutional factors in more depth, iv) encouraging a more critical perspective on engagement, v) understanding the variation in the experience of engagement across different public services/delivery models, and vi) connecting more strongly with practical concerns and initiatives within public organizations. In presenting this agenda, we highlight how engagement and HRM scholars can more strongly embed their research within a sectoral context.     

Social Affiliation and the Demand for Health Services: Caste and Child Health in South India

This paper assesses the role of social affiliation, measured by caste, in shaping investments in child health. The special setting that we have chosen for the analysis - tea estates in the South Indian High Range - allows us to control nonparametrically for differences in income, access to health services, and patterns of morbidity across low caste and high caste households. In this controlled setting, low caste households spend more on their children's health than high caste households, reversing the pattern we would expect to find elsewhere in India. Moreover, health expenditures do not vary by gender within either caste group, in contrast once again with the male preference documented throughout the country. A simple explanation, based on differences in the returns to human capital across castes in the tea estates is proposed to explain these striking results.