Accounting for Changes in Income Inequality: Decomposition Analyses for the UK, 1978–2008

We analyse income inequality in the UK from 1978 to 2009 in order to understand why income inequality rose very rapidly from 1978 to 1991 but then remained broadly unchanged. We find that inequality in earnings among employees has risen fairly steadily since 1978, but other factors that caused income inequality to rise before 1991 have since gone into reverse. Inequality in investment and pension income has fallen since 1991, as has inequality between those with and without employment. Furthermore, certain household types – notably the elderly and those with young children – which had relatively low incomes in the period to 1991 have seen their incomes converge with others.     

A Cost System Approach to the Stochastic Directional Technology Distance Function with Undesirable Outputs: The Case of us Banks in 2001–2010

This paper offers a methodology to address the endogeneity of inputs in the directional technology distance function (DTDF)‐based formulation of banking technology which explicitly accommodates the presence of undesirable nonperforming loans—an inherent characteristic of the bank's production due to its exposure to credit risk. Specifically, we model nonperforming loans as an undesirable output in the bank's production process. Since the stochastic DTDF describing banking technology is likely to suffer from the endogeneity of inputs, we propose addressing this problem by considering a system consisting of the DTDF and the first‐order conditions from the bank's cost minimization problem. The first‐order conditions also allow us to identify the ‘cost‐optimal’ directional vector for the banking DTDF, thus eliminating the uncertainty associated with an ad hoc choice of the direction. We apply our cost system approach to the data on large US commercial banks for the 2001–2010 period, which we estimate via Bayesian Markov chain Monte Carlo methods subject to theoretical regularity conditions. We document dramatic distortions in banks' efficiency, productivity growth and scale elasticity estimates when the endogeneity of inputs is assumed away and/or the DTDF is fitted in an arbitrary direction. Copyright © 2015 John Wiley & Sons, Ltd.     

Urban water security in Africa: The face of climate and development challenges

ABSTRACT

Resilience has been promoted as an important objective for the global development community, in part, as a response to concern about the potential impacts of climate change and related risks. A review of the challenges of achieving water security in urban areas of developing countries suggests that a specific focus on resilience may distract communities from more effective interventions. It would be more useful to support relevant institutions to address current service delivery priorities. This will better enable them to manage future climate change and the challenges that this may bring.     

Recent Developments at the CMA: 2020–2021

Review of Industrial Organization - We discuss three important projects that economists at the Competition and Markets Authority have completed over the past year. First, our work on the Funerals...     

State capitalism in international context: Varieties and variations

State interventions in markets assume varieties of forms in different economic systems. To capture this variety, we consider state capitalism as a multidimensional concept, first reviewing its historical evolution from both practical and scholarly vantages. We describe several dimensions of state capitalism and demonstrate how cross-national variations can be captured through positioning countries along these dimensions. We use cross-sectional data for a large sample of countries to derive factors that represent key dimensions of state capitalism. We demonstrate how cross-national and historical variation in state capitalism is captured by this Virtual Special Issue and offer suggestions for future research.     

Contemporary performance measurement systems: A review of their consequences and a framework for research

The main purpose of this paper is to develop a conceptual framework for understanding the literature on the consequences of contemporary performance measurement (CPM) systems and the theories that explain these consequences. The framework is based on an in-depth review of 76 empirical studies published in high-quality academic journals in the areas of accounting, operations, and strategy. The framework classifies the consequences of CPM into three categories: people's behaviour, organizational capabilities, and performance consequences. This paper discusses our current knowledge on the impact of CPM, highlighting inconsistencies and gaps as well as providing direction for future research.     

风险管理藏风险

风险管理时代已经来临。越来越多的机构开始聘请专业的风险管理人员，企业主要的董事会成员甚至是CEO，直接负责风险管理的具体事务。这到底是不是一件好事？或许不少机构的风险管理体系能因此得重叠明显改进，但有些却可能由于缺少战略上的清晰定位，变得更糟。     

Australian quarantine post the Nairn Review

The Commonwealth government has accepted the basic tenets of the report of the Australian Quarantine Review (the 'Nairn Review'), except for the recommendations to establish a statutory authority. Australia will maintain its existing high standards of quarantine and enhance activities such as community awareness, manageable risk (based on science), protection of Australia's unique environment, external input to policy formulation, and recognition of the continuum of quarantine (pre-border, border and post-border). Greater emphasis will be given to improved consultation in risk analysis, increased monitoring for pests and diseases, and enhanced national preparedness and response capacity (especially for plants and aquatic animals).     

Human Resource Strategy and Competitive Advantage: A Longitudinal Study of Engineering Consultancies

Concepts associated with the resource-based view of the firm are increasingly finding their way into the strategic HRM debate. Drawing on this literature, this paper reports one of the first industry-based, longitudinal investigations into the relationship between human resource strategy and competitive advantage. Set in New Zealand, but in an internationally oriented sector, the study examines one of the more neglected spheres of professional services: engineering consultancies. The results indicate that the consultancy firms that survived the major business traumas of the late 1980s and early 1990s adopted similar structural, competitive, operational and HR responses associated with their evolving 'industry recipe'. In interpreting the relationship between HRM and firm performance, then, it is important to distinguish those features of a firm's HRM which are strategic to ongoing viability from those that might form the basis of a relatively enduring form of competitive advantage. While there is insufficient evidence to conclude that any of the primary subjects in this study have established an enviable form of superiority, the study suggests that opportunities do exist for professional service firms to develop industry leadership through superior HRM. The analysis has implications for the wider work of theory-building in strategic HRM.