A model of the learning process with local knowledge externalities illustrated with an integrated graphical framework

We present a unified graphical framework accounting for the nature and impact of spillover effects. The dynamics of the learning process with a specific spillover transfer mechanism can be illustrated by referring to this four-quadrant picture. In particular, a whole cycle of technological learning is explained with the help of such a graphical representation of the basic learning process in the presence of knowledge spillovers.

We hypothesize two different functional specifications of spillover exchanges among firms within a local innovation system. Each conceivable shape for the knowledge transfer relationship among firms expresses a possible mode and intensity of information processing arising from technology spillovers. A general proposition regarding the relative efficiency of the two alternative formal models with spillover effects is derived. The basic models with spillover effects are then extended in several relevant directions.     

The effect of environmental innovations on employment changes: an econometric analysis

This paper examines the determinants of employment changes due to an environmental innovation of an establishment. The data stem from telephone surveys in five European countries. 1594 interviews have been realized with environmentally innovative establishments representing the European industry and service sector. Based on results of discrete choice models, we show that if the most important environmental innovation is a product or service innovation it has a significantly positive effect on the probability of an increase in employment compared with the probability of no noticeable change. In contrast, if the most important environmental innovation is an end‐of‐pipe innovation it has a significantly positive influence on employment decrease. Methodologically, we consider the multinomial logit model and several multinomial probit models. We find that the estimates of the parameters of the explanatory variables are very similar in the different approaches. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Further Evidence on the Labor Market Effects of Addiction: Chronic Drug Use and Employment in Metropolitan Miami

This study used data collected from 1996 to 1997 in low-income and high-crime neighborhoods in Miami, Florida, to analyze the effects of chronic drug use on employment. Given the significant gender differences in substance use patterns and labor market behavior, separate models were estimated for males and females. The analysis estimated univariate probit models of employment and bivariate probit models that allow for possible correlation among missing or unobserved determinants of drug use and employment. The key finding was that regardless of gender and specification, chronic drug use significantly reduced the probability of being employed. (JEL I12 , J22 , J24 )     

BUBBLES IN EXCHANGE RATES AND MONETARY POLICY

We evaluate the macroeconomic performance of different monetary policy rules when there are bubbles in the exchange rate. We do this in the context of a non‐linear rational expectations model. The exchange rate is allowed to deviate from its fundamental value and the persistence of the deviation is modeled as a Markov switching process. Our results suggest that reacting to exchange rate movements does not significantly improve welfare. However, taking into account the switching nature of the economy may be more beneficial.     

The paradox of weakness in the politics of trade integration

In his 1960 seminal contribution to game theory and its applications, The Strategy of Conflict, Thomas Schelling suggested that in international negotiations, strong international opposition may be an asset rather than a liability. Rather than constraining it, the opposition would enlarge the opportunity set thus making it easier to successfully conclude international negotiations. This property, which is also known as the Schelling-conjecture, shares some aspects with constitutional economics, namely the two-level approach suggesting that it might be beneficial for all parties to give up some power by tying one??s hands. In this paper we examine by means of a simulation study how far we can take this notion in the politics of trade integration. In explicitly marrying Schelling??s 1960 idea with the 1988 two-level approach by Putnam and embedding the result into the political economy of trade we find that the threat of a domestic opposition or national institution having a veto power frequently but not always delivers a more favorable outcome for the respective trade representative at the international table. Whether the Schelling-conjecture applies or not actually depends on the subtle interplay of a ??bully effect?? and a ??serenity effect??.     

LINKING STRATEGY,STRUCTURE, PROCESS,AND PERFORMANCE IN INTEGRATED LOGISTICS

The current research was undertaken to present and test a framework of supply chain logistics integration that synthesizes current logistics thought with an established theory of organizational design. The framework portrays performance as an outcome of appropriate alignment between strategy, structure, and processes. The results support the contention that a firm that pursues a relational strategy, develops information and measurement structures to support relational processes, and then uses these tools to implement and execute integrated operations will experience high levels of logistical performance. In addition, the results indicate that superior logistics performance is related to simultaneous integration of internal and external operational processes.     

THE IMPACT OF DIVIDEND IMPUTATION ON FIRMS‘ FINANCIAL DECISIONS

This paper investigates the impact of Australia's dividend imputation system on the financial decisions to be faced by an Australian resident company. It briefly outlines the dividend imputation system as enacted, and then analyzes its economic effects on companies' dividend, financing and investment decisions.     

Asymmetric information about workers' productivity as a cause for inefficient long working hours

In this paper, a model of labor contracting with asymmetric information is developed in order to explain the existence of inefficient long working hours. Since firms cannot observe workers' true productivity, they use long working hours as a mechanism to sort productive workers. The model therefore predicts that workers with a high productivity will tend to work inefficient long hours. An empirical analysis confirms this prediction: high-productivity workers are more likely to experience hours constraints in the form of overemployment than low-productivity workers. Moreover, the extent of overemployment is positively related to productivity.     

Banking Relationships and Syndicated Loans during the 2008 Financial Crisis

The research shows that banking relationships are important to lending. However, few studies focus on the banking relationships in syndicated loans, although these loans have became a major source of financing. The last financial crisis clearly shows the impacts of credit rationing and tightening credit conditions, even in the syndicated loans market. We investigate whether banking relationships help firms to benefit from better terms for syndicated loans in a chaotic financial environment. Using a sample of syndicated loans arranged from 2003 to 2008 in North America and Europe, we find that firms with a previously developed relationship with a lead bank obtained a lower spread and a longer maturity during the financial crisis but did not benefit from larger loan facilities.     

The Land Use Impacts of the EU Biodiesel Policy: Assessing the Direct,Indirect and Induced Effects

This paper deals with the controversial measure of indirect land use changes of the European biodiesel policy. Two studies sponsored by the European Commission find significant, but contrasted, land use impacts for the different vegetable oils used for biodiesel production. The first study uses an aggregate computable general equilibrium model capturing direct, indirect and induced effects. The second more recent study uses a biotechnical partial equilibrium model providing a detailed representation of the indirect effects occurring through the livestock sectors. We develop an original economic emulator to understand the diverging key results of these studies and test their sensitivity. We find that the direct and indirect effects on vegetable oil and land markets explain most of the differences. We also find that indirect effects on the feed markets and the induced effects have less influence on the biodiesel results. We finally argue that the development of emulators as done here can help to understand complex policy assessments.