TFP change,output gap and inflation in the Russian Federation (1994–2006)

The present paper estimates Total Factor Productivity (TFP) change for the Russian economy in the time period 1994–2006. It also calculates potential output and output gap using a Cobb-Douglas (CD) production function and a Hodrick–Prescott filter, as well as the Non-Accelerating Wage Rate of Unemployment (NAWRU), and the Non-Accelerating Inflation Rate of Capacity Utilization (NAICU) concepts. The results show that despite the severe economic crisis TFP has contributed to strong economic growth in the country after 1998, while the output gap, although negative between 1999 and 2003, has recently become positive. The relationship between output gap and inflation is examined and the results suggest that there is a strong (causal) relationship between output gap and inflation in the Russian economy.     

The emergence of green talent

Several factors are driving an increase in the supply of and demand for green talent, employees with the mindsets and skills to drive sustainability. But many business leaders do not fully understand the implications of this change in the workforce. John Glen, Chris Hilson and Eric Lowitt believe corporate chiefs need to learn – quickly.     

Positioning for the future

The next two years is a make or break period for companies, and the way business leaders respond will determine winners and losers for the next decade. Deloitte's UK Chief Executive and Global Chairman, John Connolly , explains how.     

The role of expectations in the determination of consumer satisfaction

The purpose of this paper is to explore the three determinants of consumer satisfaction, i.e. Predictive Expectations, Normative Expectations and Comparative Expectations. This study applied the confirmation of expectations paradigm to each of the types of expectations. The efficacy of the paradigm in the prediction of consumer satisfaction is examined. Comparative analyses of the three types of expectations show that normative expectations and their confirmation are the best predictors of satisfaction. Suggestions for further research on measurement and conceptual development of consumer satisfaction are also offered.     

Human resource management in developing economies: a comparison of India and Thailand

This paper reports the results of surveys of firms that were conducted both in India and Thailand. The surveys centred on a wide range of human resource management practices (staffing, training, compensation and evaluation). The sample consisted of both the subsidiaries of multinational corporations and locally owned companies. Statistical analysis suggests pronounced differences in employment practices between India and Thailand in some areas, while considerable similarities in other areas. The study controls for a variety of organizational factors (e.g., firm size, ownership (foreign versus domestic), union status).     

The underpricing of initial public offerings: A theoretical and empirical reconsideration of the adverse selection hypothesis

In this paper we generalize Rock's theory regarding the underpricing of IPOs. In Rock's model, informed investors have a firm-specific informational advantage pertaining to a firm's cash flow. We derive the new results that the level of beta and the size of the market risk premium positively affect underpricing. These implications extend the adverse selection theory and further distinguish this theory from the current state of signalling theories of underpricing. The results put the “hot and cold” issue markets phenomenon in a theoretical context. Empirical results are consistent with the theoretical propositions and provide support for Rock's theory of underpricing.     

Competition and Participation in Religious Markets: Evidence from Victorian Scotland

In 1885, the largest churches in Scotland were engaged in a dispute about state funding. We use data generated in the course of that dispute to test two related hypotheses. First, as market size (proxied by population) increases, the competitiveness (or complexity) of the religious market structure will not decrease. Second, religious activity, as measured by giving per member, church income and participation, will not decrease as market competitiveness (or complexity) increases. Empirical evidence lends support to the first hypothesis, but casts doubt on the second, and the supply-side theories underpinning it, which posit a causal link between increased competitiveness (complexity) and higher levels of religious activity. In interpreting the results the importance of a rich understanding of institutional arrangements—particularly market structure, governance and financing—is underlined.     

The economic evolution of democracy

Using a variant of the Ramsey growth model, we explore the relationships between economic growth and the emergence of democracy. We argue that democracy acts as a commitment device to economic reforms favored by an elite under the threat of rebellion. Consistent with British economic history we model liberalizing reforms of the labor market as the mechanism by which the elite redistribute resources to the poor. We find that if democracy emerges it is preceded by a period of growth, however the emergence of democracy will only encourage further growth if the redistributions it entails do not significantly hamper capital accumulation.