Accounting for Growth and Output Gaps: Evidence from New Zealand

We evaluate New Zealand's macroeconomic performance over the 1967–1996 period, which witnessed numerous economic reforms. Using both index–number and econometric techniques, we decompose nominal GDP growth and the output gap into contributions from price level changes, productivity growth and changes in factor utilisation. Changes in domestic prices accounted for four–fifths of the growth in nominal GDP, while capital accumulation and employment growth were the most important factors determining real–output growth. Deviations in the domestic price level around its long–run trend contributed most heavily to changes in the nominal output gap. The real gap was influenced in any year variously by deviations of the terms of trade and labour input from their long–run trends, as well as by productivity shocks.     

Sustaining entrepreneurial business: A complexity perspective on processes that produce emergent practice

This article examines the management practices in an entrepreneurial small firm which sustain the business. Using a longitudinal qualitative case study, four general processes are identified (experimentation, reflexivity, organising and sensing), that together provide a mechanism to sustain the enterprise. The analysis draws on concepts from entrepreneurship and complexity science. We suggest that an entrepreneur’s awareness of the role of these parallel processes will facilitate their approaches to sustaining and developing enterprises. We also suggest that these processes operate in parallel at multiple levels, including the self, the business and inter-firm networks. This finding contributes to a general theory of entrepreneurship. A number of areas for further research are discussed arising from this result.     

Negishi's contributions to the development of economic analysis: Research programs and outcomes

This paper surveys Negishi's significant contributions to economics and the research programs they have generated. In a series of papers and books, Negishi developed a number of models and methods of analysis that changed the course of modern economics and catalyzed research in areas that range from welfare and theoretical to applied and computable general equilibrium analysis, and the extension of imperfect competition to general equilibrium. trade theory and international economics. This paper shows that the Negishian research programs that emanated from his works are progressive, and still have an ongoing impact on mainstream economic analysis decades after their publication.     

CAPITAL ALLOCATION IN LESS DEVELOPED ECONOMIES

“European mining is done by companies, and company's money is almost like government money…. Machinery is bought, houses are built, in fact the capital of the company is spent…. After possibly a series of great hardships to the staff and disasters to the company, it is found that the tin raised is infinitesimal in value when compared with the rate of expenditure, and that the longer the work goes on the greater will be the losses. This is usually discovered when the paid-up capital is all but exhausted. The company is wound up and the State gets a bad name with investors, and the only people who really enjoy themselves are the neighbouring Chinese miners who buy the mine and the plant for an old song and make several large fortunes out of working on their own ridiculous and primitive methods.”