Solving the multi-country real business cycle model using a Smolyak-collocation method

We describe a sparse-grid collocation method to compute recursive solutions of dynamic economies with a sizable number of state variables. We show how powerful this method can be in applications by computing the non-linear recursive solution of an international real business cycle model with a substantial number of countries, complete insurance markets and frictions that impede frictionless international capital flows. In this economy, the aggregate state vector includes the distribution of world capital across different countries as well as the exogenous country-specific technology shocks. We use the algorithm to efficiently solve models with up to 10 countries (i.e., up to 20 continuous-valued state variables).     

How do changes in monetary policy affect bank lending? An analysis of Austrian bank data

Using a panel of Austrian bank data we show that the lending decisions of the smallest banks are more sensitive to interest rate changes, and that for all banks, sensitivity changes over time. We propose to estimate the groups of banks that display similar lending reactions by means of a group indicator which, after estimation, indicates each bank's classification. Additionally, we estimate a state indicator that indicates the periods during which the lending reaction differs from what we normally observe. Bayesian methods are used for estimation; a sensitivity analysis and a forecast evaluation confirm our model choice. Copyright © 2006 John Wiley & Sons, Ltd.     

Capital-skill complementarity in West German manufacturing

Capital-skill complementarity is tested for two different definitions of skill, using data from 32 West German manufacturing industries from 1975–1990. Using the Kmenta approximation for the CES function provides strong support for complementarity between white collar workers and capital. On the other hand, when “skill” is defined as skilled white collar and blue collar workers, we find essentially no evidence for complementarity. This surprising result suggests that the official classification of skilled production workers does not capture the planning activity most complementary to increasing capital intensity and technological progress.     

The impact of competition on vertical integration: The role of technological niche width

Despite there being numerous studies exploring the relationship between competition and vertical integration, the empirical findings regarding the nature of this relationship are still unclear. The current study suggests that technological niche width mediates the relationship between competition and vertical integration. It also suggests that technological niche width and vertical integration play a complementary role in enhancing firm performance. These arguments have found empirical support in the examination of the U.S. hybrid electric vehicle market from 2008 to 2016. In so doing, this study provides an opportunity to better understand the relationship between competition, vertical integration, and technological niche width. In addition, it explains how firms can effectively manage fierce competition and achieve the goal of superior performance through strategic decisions regarding vertical integration and technological niche width.     

Is deflation costly after all? The perils of erroneous historical classifications

I estimate average economic activity during periods of inflation and deflation while accounting for measurement errors in 19th century prices. These measurement errors lead to underestimation (overestimation) of economic activity during periods of inflation (deflation). By exploiting multiple deflation indicators, it is possible to recover the true relationship; the shortfall of US industrial production growth during periods of deflation ranges from −4.5 pp to −7.6 pp, instead of −2 pp. I also find a negative relationship between deflation and real activity in the UK. I then examine the cross-country variation in the estimates for eleven countries. The patterns are consistent with stronger biases for countries with more serious measurement errors in prices.     

The impact of face-to-face street fundraising on organizational reputation

Although many stakeholders perceive face-to-face street fundraising as unpleasant, nonprofit managers encourage it as a way to attract donors. To understand the long-term effects of this fundraising method, we used a mixed-methods experimental design to investigate how face-to-face street fundraising affects organizational reputation and stakeholder support intentions in comparison with letter fundraising. The findings reveal that face-to-face street fundraising has a significant negative influence on the stakeholders' perceptions of an organization. Further, qualitative data show that the negative perception originates primarily from perceived pressure, distrust, and obtrusion, which are triggered by face-to-face street fundraising. Our study thus reveals long-term reputational consequences that nonprofit organizations should consider before deciding on fundraising methods.     

Motility: mobility as capital

Social and territorial structures form intricate relations that transcend a social stratification or spatial focus. Territorial features and geographic displacements are structuring principles for society, as societal features and social change effect the structure and use of territory. Based on our examination of the conceptual and theoretical links between spatial and social mobility, we propose a concept that represents a new form of inequality. Termed ‘motility’, this construct describes the potential and actual capacity of goods, information or people to be mobile both geographically and socially. Three major features of motility — access, competence and appropriation — are introduced. In this article, we focus on conceptual and theoretical contributions of motility. In addition, we suggest a number of possible empirical investigations. Motility presents us with an innovative perspective on societal changes without prematurely committing researchers to work within structuralist or postmodern perspectives. More generally, we propose to revisit the fluidification debate in the social sciences with a battery of questions that do not begin and end with whether or not society is in flux. Instead, we introduce a field of research that takes advantage of the insights from competing paradigms in order to reveal the social dynamics and consequences of displacements in geographic and social space. Les structures sociales et territoriales forment des relations complexes qui dépassent toute stratification sociale ou convergence spatiale. Les caractéristiques territoriales et déplacements géographiques sont, pour la société, des principes structurants, tout comme les caractéristiques sociétales et le changement social font naître la structure et l'usage d'un territoire. A partir d'un examen des liens conceptuels et théoriques entre les mobilités spatiale et sociale, cet article propose un concept traduisant une nouvelle forme d'inégalité: appelé‘motilité’, il décrit le potentiel et l'aptitude réelle des marchandises, informations ou individus àêtre mobiles sur un plan tant géographique que social. Trois traits essentiels de la motilité— accès, compétence et appropriation — sont présentés. Si l'article s'attache aux contributions conceptuelles et théoriques de la motilité, il suggère aussi plusieurs axes possibles d'études empiriques. La motilité offre une perspective novatrice sur les changements sociétaux, sans engager prématurément les travaux de recherches sur des rails structuralistes ou post‐modernes. Plus généralement, il s'agit de revisiter le débat sur la fluidification en sciences sociales à l'aide d'une batterie de questions qui, ni au début ni à la fin, ne demande si la société est fluctuante ou non. En revanche, l'article propose un domaine de recherches qui exploite les réflexions tirées de paradigmes concurrents afin de révéler la dynamique sociale et les conséquences des déplacements dans l'espace géographique et social.     

Rice farming in Nigeria : in praise of the smallholder

Food production policy in Nigeria is now oriented towards large scale commercial production. The Federal Government proposes 20000 hectares of public cassava farming in all 19 states and in the Abuja capital territory. The National Grains Board and the National Root Crops Production Company are establishing large farms in their operational zones. The Nigerian Agricultural and Cooperative Bank is loaning millions of naira to individual private farmers to encourage them to establish large farms. Virtually every state government has its Agricultural Development Corporation directly involved in agricultural production on a large scale. It is presumed that the smallholder system on which Nigeria currently depends is inefficient and could not be relied upon to achieve the necessary increases in production.