Rural-urban migration and urban underemployment in Brazil

Policies to discourage rural-urban migration, in the interest of alleviating urban poverty, are often considered without regard to the migrant experience in cities. This paper examines the income gains associated with rural-urban migration in Brazil and the assimilation of migrants in the urban labor market. Earnings functions, estimated for a sample of individuals from the 1960 population census, are utilized. The analysis shows that migrants have derived significant income benefits from moving, and that within a short period of time, their income and employment pattern are virtually indistinguishable from those of the urban-born.     

What shapes player performance in soccer? Empirical findings from a panel analysis

In this article, we investigate the pay–performance relationship of soccer players using individual data from eight seasons of the German soccer league Bundesliga. We find a nonlinear pay–performance relationship, indicating that salary does indeed affect individual performance. The results further show that player performance is affected not only by absolute income level but also by relative income position. An additional analysis of the performance impact of team effects provides evidence of a direct impact of team-mate attributes on individual player performance.     

Japanese Bank Productivity, 2007–2012: A Dynamic Network Approach

We estimate a dynamic network (DN) directional output distance function for 100 Japanese banks operating during 2007–2012. Network production occurs in that deposits and other funds raised are produced as intermediate products in stage 1 and those intermediate products are used to generate a portfolio of assets in stage 2. The dynamic technology links production periods via nonperforming loans (NPL) and carryover assets, which take the form of excess reserves. Carryover assets expand the future production possibility set while NPL shrink future production possibilities. We extend previous DN methods to measure the performance of three types of Japanese commercial banks: city banks, regional banks and second regional banks. We test for and find differences in the three bank technologies relative to a common technology. Such differences are likely due to different institutional and regulatory structures. Unlike previous DN studies, we also allow for a non‐uniform abatement factor between previously‐produced NPL and other inputs in stage 1 and between performing loans and NPL in the current period. Measured productivity change is greater when each bank faces their own group technology rather than the pooled technology consisting of all bank types.     

A strategic analysis of surging Chinese manufacturers: The case of Galanz

Recent years have witnessed the surging of Chinese manufacturers, as China has become the world’s factory floor. This paper presents a case study of one of the most successful manufacturers in China, the Galanz Group, now the world’s largest microwave manufacturer. Based on theories of multinational corporations from emerging economies, the paper examines the process of Galanz’s integration into the global market. The company has developed unique competitive strategies that have made it a great success within China and in overseas markets. The Galanz model suggests strong strategic implications for both Chinese firms and incumbent multinational corporations.

Francesco Forte’s Contributions to <Emphasis Type="Italic">Essentials of Fiscal Sociology</Emphasis>

Francesco Forte has made major contributions to many areas of economics with the result that his theoretical work and applications have opened new areas of inquiry. This paper connects Forte’s work with the work of Jürgen Backhaus on fiscal sociology. Positioned at the crossroads of economics and sociology, the answers to these questions helped fill the void which gave rise to the field of fiscal sociology. Fiscal sociology is primarily a study of taxation and fiscal policies which illuminates core issues in the sociology of contemporary capitalism. It includes the causes of poverty and inequality in rich countries and adds to our understanding the basis for the inequality between rich and poor countries. Our paper reviews several of Forte’s papers on Pareto’s fiscal sociology and the failure of European planning for less-developed regions. The paper highlights Forte’s contributions to economic theory focusing on Pareto’s sociological theory and the influence of the European Union on regional development.     

Einzelbesprechungen

Ohne ZusammenfassungAus dem Italienischen übersetzt von M. St. Braun, WienAus dem Italienischen übersetzt von E. Allina, WienAus dem Russischen übersetzt von A. GerschenkronÜbersetzt von Paul Brüll, Wien.     

Structure and understanding: Some observations on current activities in the field of structural modeling

Structural modeling has been under study in recent years as a method for dealing with complex societal problems, and is growing in acceptance as a tool for understanding complex social phenomena. Structural models demonstrate the interactions of the separate elements of a system and their combined overall effect. Thus, the nature of the problem for which this method of analysis is appropriate is different from complex problems of the traditional disciplines which lend themselves to reductionist approaches. This is because complex policy problems of society cannot be “solved” with precise analysis. Kenneth Boulding suggests that there are two ways to cope with a complex policy problem, either to “slice” the problem into partial equilibrium sections or “squeeze” it by aggregating numerous variables into a single index or macho variable. Structural modeling is an approach which comes under the general strategy of squeezing the problem and is promising because of the ability to include a range of macro variables which provide insights about social change. The articles in this issue treat several interesting aspects of this approach. In this article we wish to recall for consideration a central purpose for developing such methods. We have taken a historical approach to indicate some of the roots of the concern for the effect of technological process on social change. Within this context, we discuss the nature of the contributions made by the articles in this issue and what promise the methods offer to addressing the historical concern.     

THE EFFECTS OF LOTTO GAME CHANGES AND LARGE JACKPOTS ON INCOME ELASTICITIES AND SALES

Using daily lottery data from Washington State by zip code from January 2011 through mid‐March 2016, we estimate that Powerball income elasticities range from ?0.16 to 0.16 as the Powerball jackpot increases from its minimum to $1.5 billion, while Mega Millions income elasticities range from ?0.08 to 0.03 as the Mega Millions jackpot increases from its minimum to $640 million. Controlling for jackpot size, each of three major game changes during this time period has a significant effect on own‐game and cross‐game sales. Despite these significant game changes, however, these lotto games are a highly regressive source of revenue for Washington State. (JEL H22, H71, L83)