HYPERINFLATIONS: THEIR ORIGINS, DEVELOPMENT AND TERMINATION

Abstract. This paper summarizes and critically surveys research on hyperinflation. Appraisal and review of the literature considers the origins, development, termination, and the lessons to be learned from hyperinflations. The historical evidence as well as the econometric evidence is analyzed. It is concluded that while the lessons to be learned from such episodes perhaps have been overstated a number of useful implications may be derived from studying hyperinflations, such as an understanding of the forces which link monetary and fiscal policies to inflation, and policy makers'role in influencing individuals'expectations.     

Motives for foreign direct investment in Oman

This paper empirically examines the factors that influence foreign investors to engage in foreign direct investment (FDI) in Oman. One hundred and six foreign equity ventures participated in the study. The analysis of the data reveals that political and economic stability are the two most important motives for investing in Oman. Contrary to expectations, purchasing power of customers, market size, and availability of low‐cost inputs are the least desirable factors, respectively. The statistical analysis indicates that all motives do not equally appeal to all foreign investors from different countries. © 2003 Wiley Periodicals, Inc.     

Long-term care social insurance: How to avoid big losses?

Long-term care (LTC) needs are expected to rapidly increase in the next decades, and at the same time, the main provider of LTC, namely the family, is stalling. This calls for more involvement of the state that today covers <20% of these needs and most often in an inconsistent way. Besides the need to help the dependent poor, there is a mounting concern in the middle class that a number of dependent people are incurring costs that could force them to sell all their assets. In this paper, we study the design of a social insurance program that meets this concern. Following Arrow (Am Econ Rev 53:941–973, 1963), we suggest a policy that is characterized by complete insurance above a deductible amount.     

Investment and dynamic DEA

A dynamic version of data envelopment analysis (DEA) is developed in the present paper. Our model introduces investment in traditional DEA and imposes intertemporal cost minimization. Adding an intertemporal adjustment constraint into the cost minimization problem, we derive the relation between the DEA variables of the variable cost function and those of the primary production frontiers’ coefficients. The augmented DEA model can be solved using standard linear programming. This dynamic framework enables computing the production frontiers, measuring the productive efficiencies and evaluating the potential economies all in the presence of adjustment costs.

Designing a linear pension scheme with forced savings and wage heterogeneity

This paper studies the optimal linear pension scheme when society consists of rational and myopic individuals. Myopic individuals have, ex ante, a strong preference for the present even though, ex post, they would regret not to have saved enough. While rational and myopic persons share the same ex post intertemporal preferences, only the rational agents make their savings and labor supply decisions according to these preferences. Individuals are also distinguished by their productivity. The social objective is “paternalistic”: the utilitarian welfare function depends on ex post utilities. We examine how the presence of myopic individuals affects both the size of the pension system and the degree of redistribution it operates, with and without liquidity constraints. The relationship between proportion of myopic individuals and characteristics of the pension system turns out to be much more complex than one would have conjectured. Neither the impact on the level of pensions nor the effect on their redistributive degree is unambiguous. Nevertheless, we show that under some plausible assumptions adding myopic individuals increases the level of pension benefits and leads to a shift from a flat or even targeted scheme to a partially contributory one. However, we also provide an example where the degree of redistribution is not a monotonic function of the proportion of myopic individuals.      

The Clean Development Mechanism in a world carbon market

This paper discusses the role of the Clean Development Mechanism (CDM) in the market for carbon quotas and countries' commitments to reduce their carbon emission levels. We show that the CDM contributes to an efficient funding of clean technology investments in least developed countries. However, the CDM is not neutral on the global level of carbon emissions as it entices countries to raise their emission caps. The CDM may also make inappropriate the inclusion of any country that takes no emission abatement commitment. It can even make inefficient a country's decision to commit to an emission target. The implications of the presence of non‐additional projects are also analyzed.     

Corollaries of the collective: The influence of organizational culture and memory development on perceived decision-making context

The market-focused learning organization continues to attract attention in the marketing literature. Two central and interrelated aspects of collective learning are organizational culture and memory. The relationship between culture and performance has been demonstrated both theoretically and empirically. This study investigates the influence of culture and organizational memory development on perceptions of managers’ decision-making context. Findings suggest that both organizational culture and memory influence marketing managers’ perceptions of decision-making context. Specifically, managers in externally focused cultures tend to perceive a relatively higher proportion of strategic problems than managers in internally focused cultures, and managers in organic process cultures tend to perceive a relatively higher proportion of unstructured problems than managers in mechanistic cultures. The implications for managerial practice are discussed and avenues for future research outlined. Pierre Berthon is a professor of marketing at the School of Management, University of Bath, United Kingdom. Prior to taking up his present position, he was adjunct professor of marketing at Columbia Business School, University of Columbia, New York. His research interests are eclectic but focus mainly on the areas of management decision making, strategic modes of organization, electronic commerce, and interactive marketing. His work has been published in a wide range of journals, includingSloan Management Review, California Management Review, Journal of Business Research, Journal of Advertising Research, Business Horizons, Omega, andTechnological Forecasting and Social Change. He is coauthor of a textbook on electronic commerce (Electronic Commerce: The Strategic Perspective, published by Dryden). Leyland F. Pitt is a professor in the School of Marketing at Curtin University of Technology in Perth, Western Australia. He has also taught executive programs at the University of Chicago, Columbia University, and the London Business School. His current research focuses on marketing strategy and the marketing/technology interface. His work has been accepted for publication in such academic and practitioner journals as theCalifornia Management Review, Sloan Management Review, Columbia Journal of World Business, Communications of the ACM, theJournal of Advertising Research, theJournal of Business Research, andMIS Quarterly, of which he is also an associate editor. Michael T. Ewing is an associate professor in the School of Marketing at Curtin University of Technology. Before that, he worked for Ford Motor Company. He has taught in Australia, Hong Kong, Singapore, Malaysia, the Czech Republic, South Africa, and England. His research and teaching interests include marketing communications, E-commerce, and international advertising. Among others, his work has appeared in theAsian Journal of Marketing, Business Horizons, theJournal of Advertising Research, theJournal of Business Research, theJournal of Marketing Communications, and theInternational Journal of Advertising. He serves on the editorial review board of theJournal of Advertising Research.