Economic resilience: A two-country analysis

Summary Countries differ with regard to labour-market flexibility and animal spirits of entrepreneurs. The paper aims at an analysis of the consequences of these differences in a climate favourable to economic growth. For that purpose a two-country model is presented in section 2. Although wealth variables are taken into account, expectations are assumed to be static. Despite this simplification the model cannot be solved analytically. The role of a dynamic region (USA) versus a more passive region (Europe) is therefore studied by working through numerical examples.I am indebted to Ir. A. Markink for his invaluable assistance in all computations and to Professor S.K. Kuipers, Mr. A.B.T.M. van Schaik and Mr. J.H.M. Donders for comments on a previous version of the paper.     

Labour hoarding in Dutch manufacturing industry

Summary Comfronting strong output fluctuations, companies are in no position to adjust their labour volume instantly to the technically efficient level. Because of that, they may find themselves with an internal labour reserve at one moment, and be short of labour at another. This phenomenon is called labour hoarding. In this article we propose a new method for the measurement of labour hoarding and apply it to the Dutch manufacturing industry. The results suggest that in the period 1972 to 1982, labour surpluses in that sector varied between five and fifteen percent of employment. Labour shortages appear to have been minor in the same period. Output uncertainty and real wage costs are supposed to be the main causes of the discrepancy between actual and technically efficient employment. Under this assumption an employment function is derived and fitted. The results are in accordance with the theoretical model on which the employment function was based.The author is attached to the Netherlands Economic Institute, Rotterdam.Based on the author's dissertation,Omvang en oorzaken van labour hoarding, Rotterdam, 1987.     

Is physician behavior too serious a business to be left to economics? Reply to medical altruism in mainstream health economics: theoretical and political paradoxes

This short paper is a Reply to ‘Medical altruism in mainstream health economics: theoretical and political paradoxes. COMMENTS’.     

Theories of the firm, competitive advantage and government policy

To improve the effectiveness of government policy, it is necessay to develop a good picture of what a firms in a knowledge-intensive economy is and does. In this paper, we have drawn on the recent surge of books and articles on the resource- and knowledge-based theories of the firm and their implications for competitive advantage. We would like to contribute to that discussion summarizing that debate and exploring the implications for government policy. In new theories of the firm, emphasis is placed on the crucial importance of knowledge, a production factor which is not easily imitated. Exampb of government policy which are based on these new inskhts are the recognition of the importance of demanding clients, the emphasis on the unique potential of the local business environment and the stimulation of transfer of knowledge between firms and networks instead of subsidizing project for knowledge development in isolated firms. A more realistic view of business behaviour will improve the effectiveness of policy, thereby generally improving the competitive position of firms.     

Spanish Imports of Manufactures and the European Union: An Empirical Assessment of the Entry

This paper investigates the consequences of Spain's accession to the European Union on its imports of manufactures. To that end the realised shares of GDP and the supplies of Spain's main trading partners in the transition period 1986–1992 are compared with the shares that are predicted by means of a model that is estimated using data that relate to the pre-integration period.     

Systemic Innovation and the Virtues of Going Virtual: The Case of the Digital Video Disc

According to David Teece, only strong and integrated firms can successfully innovate in a systemic fashion. Looser coalitions consisting of joint ventures, alliances, or virtual partners will not be able to create a systemic innovation, let alone to set standards for it, or to control its further evolution. In this article this position is challenged, in particular, regarding the information industry. It will be argued that in view of the fact that industrial structure is changing from vertical to horizontal, and digital convergence is taking place, systemic innovation today can only be undertaken by alliance networks. Although such networks are vulnerable to opportunism, these are capable of producing systemic innovations, because mutual relations can be stabilized by forms of both substantive and procedural commitment. If standards also have to be pioneered, alliance networks will have to expand. As there are few ways in which these new allies may commit themselves, the network is weakened. It is argued that, nevertheless, the mutual competition between networks will not end in an impasse. Instead, a unique, hybrid standard is likely to emerge in the end, since contending networks are willing to compromise, and since some of the more important parties along the system chain may usefully constitute themselves as arbitrators. This argument is put to the test by examining the case of the development of the Digital Video Disc (DVD). It is shown that a battle between two alliance networks ensued (one led by Toshiba, the other by Philips and Sony), that evolved along the lines conjectured above.     

Mitigating Gender Inequality in Rural Regions: The Effects of Tourism Employment in Namibia

We examine the effects of tourism employment on gender inequality in Namibia. We find that tourism contributes to local livelihoods by providing opportunities for cash income through employment, craft sales and shareholder profits from tourism enterprises. In general, male‐headed households are economically better off. Female‐headed households with tourism employment are better off than those without and are as equally well‐off as male‐headed households. We find no significant statistical difference between male‐headed households with tourism employment and those without it. These findings suggest that tourism provides specific advantages for women and helps mitigate gender inequality in areas where tourism employment is available. Copyright © 2014 John Wiley & Sons, Ltd.