Information acquisition and financial contagion

This paper incorporates costly voluntary acquisition of information à la Nikitin and Smith (2007) [Nikitin, M., Smith, R.T., 2007. Information acquisition, coordination, and fundamentals in a financial crisis. Journal of Banking and Finance, in press, doi:10.1016/j.jbankfin.2007.04.031], in a framework similar to Allen and Gale (2000) [Allen, F., Gale, D., 2000. Financial contagion. Journal of Political Economy 108, 1–33], without relying on any unexpected shock to model contagion. In this framework, contagion and financial crises are the result of information gathering by depositors, weak fundamentals and an incomplete market structure of banks. It also shows how financial systems entering a recession can affect others with apparently stronger economic conditions (contagion). Finally, this is the first paper to investigate the effectiveness of the Contingent Credit Line procedures, introduced by the IMF at the end of the nineties, as a mechanism to prevent the propagation of crises.     

Social Change: How Should Technology Education Respond?

Rapid social change creates a powerful challenge to individuals and educational institutions. Technology education is not an exception. To be a useful and authentic learning area, technology education should constantly re-examine its rationale in order to formulate responses to changing contexts to improve the quality of learning for students. The more perspectives used for this process, the better the results should be. This article explores several facets of social change that can influence an understanding of the aims and nature of technology education and that might contribute to its development. Social change is a very complex and dynamic phenomenon that can be considered from a variety of perspectives and is reflected in a number of processes. These processes are different in different types of societies. In relation to the topic, the following processes that are relevant to Western societies (it is acknowledged that for different type of societies, e.g. Islamic, Chinese, social context will be different) will be analyzed: (1) The shift of emphasis from engaging society members primarily as producers to engaging society members primarily as consumers; (2) The colonisation of the cognitive and moral spheres of human life by the aesthetic sphere; (3) The integration of people into the technological world and (4) The shift from the Welfare state to the Competition state. These processes have been identified on the basis of their potential influences on the development of technology education and, as a consequence, the students who study it. These processes are in tension which creates even greater challenges to technology education. Several implications of the above analysis in terms of conceptualizing technology education are discussed. It is suggested that social change can be addressed through technology education if the educational goals of it are ‘to broaden minds and develop all pupils in the creation of a better society’. For technology education classrooms, these specifically mean the involvement of students in democratic debates on the future outlines of technological development; development of their social and ecological sensitivities; avoiding orienting their solutions exclusively to the standard of business efficiency and profitability criteria; helping them to distinguish real needs from desires; discussing the role of designed objects in the life of contemporary society; putting more emphasis on other than the aesthetic aspects of life that can provide existential meaning for people; challenging the way people are manipulated through advertising and cultivation of their desires; developing an active/creative attitude towards problems (not re-active); teaching students to formulate problems (not only being involved in problem solving); challenging consumer-oriented design; looking at design as one source of inspiration, not as a source of economic utility; and developing social responsibility     

Creative Destruction as Economic Pattern of Europe＇s Small-Scale Audiovisual Media Markets and Minority-Language Film Industries

The small cinematography model as well as its incorporation into creation of the European digital space emerges as a paradigm of the creative destruction phenomenon in the way that Sombart spoke about and, afterwards, Schumpeter disseminated it seven decades ago. Working from this perspective, the University of Santiago de Compostela （USC）＇ audiovisual research group has been looking for the barriers the small cinema in original version must overcome and has even tested some of its findings in different geopolitical areas such as Lusophony,     

Firm Heterogeneity and Exports: Stylized Facts from Greek Firms

Atlantic Economic Journal - The paper presents a set of empirical regularities that characterize the activity of Greek exporters. Using a unique data set of Greek manufacturing firms with...     

Mindset drives success: Selling beneficial products at the base of the pyramid

Why are so few organizations selling beneficial products at the base of the pyramid (BoP) successful? This is not simply a story of companies failing, and it is one with a dramatic consequence as low-income people do not benefit from products that can improve their way of life. Instead, they continue to drink unsafe water, cook on stoves that emit fumes that kill over 1 million people per year, light their homes with dangerous kerosene lamps, and fall ill from a mosquito bite. Based on a multiyear field research program conducted in 25 countries, we argue that having a specific mindset about BoP customers is consequential to an organization’s success. Many organizations start with the assumption that BoP customers lack money, knowledge, and jobs. By contrast, successful organizations start from the assumption that customers can and will pay if they are provided with a satisfactory solution to their needs and are reassured about the level of risk involved. We detail the different practices that follow from this mindset change in the areas of value proposition, communication, and distribution and show how these practices can make or break the organization’s financial sustainability.     

Absorptive capacity, innovation, and financial performance

This study here examines the role of absorptive capacity as both a mechanism to identify and translate external knowledge inflows into tangible benefits, as well as a means of achieving superior innovation and time-lagged financial performance. Using path analysis in a sample of 461 Greek enterprises participating in the third Community Innovation Survey, this study demonstrates that external knowledge inflows are directly related to absorptive capacity and indirectly related to innovation. Absorptive capacity contributes, directly and indirectly, to innovation and financial performance but in different time spans. This study, therefore, contributes to the understanding of absorptive capacity's antecedents and outcomes by providing empirical evidence of longitudinal form that offers important research and practical implications.     

Defining and developing competence: A strategic process paradigm

In this paper, competence is defined in operational terms as the degree to which the firm or its subunits can reliably meet or exceed objectives. Two antecedents to competence (and thus competitive advantage) are then developed and defined. These are the ‘comprehension’ of the management team working on developing competence and the ‘deftness’ of their task execution. Empirical results from a study of 160 new initiatives in 40 organizations from 16 countries suggest that: (1) it is feasible to operationalize and measure these constructs; (2) comprehension and deftness are important correlates of an organization's degree of competence as defined; and (3) a process-centered paradigm for understanding competence development shows promise.     

Establishing a modern cadastral system within a transition country: Consequences for the Republic of Moldova

This paper examines the current situation following from the implementation of a land cadastre in the Republic of Moldova, a transition country that is seeking to establish a market economy as a means of facilitating greater prosperity. After consolidating the concepts of the functions land property serve within a capitalist-based economy, we examine the current state of affairs as it exists on the ground within this former socialist state and examine the consequences of imposing western-derived views on land reform in terms of tenure security and credibility. This reveals an extensive problem of land fragmentation in the rural sector, which is in part being countered by the emergence of a land lease market that sees new individual landowners providing land for the use of commercial enterprises. However, given the unique political economy present within Moldova, this situation in many ways contradicts, if not constrains, many of the potential benefits that a formal property system is thought to allow for, and therefore the objectives behind the transition phase have yet to be fully achieved. This has forced a re-examination of theory versus the practice of land property privatisation and land market interactions.