Current account sustainability in the US: What did we really know about it?

We analyze the sustainability of the US current account (CA) deficit by means of unit-root tests. First, we argue that there are several reasons to believe that the CA may follow a non-linear mean-reversion behavior under the null of stationarity. Using a non-linear ESTAR model we can reject the null of non-stationarity favoring the sustainability hypothesis. Second, we ask whether unit-root tests are a useful indicator of sustainability by comparing in-sample results for the 1960–2004 period to the developments observed up to the end of 2008. We find that the non-linear model outperforms the linear and random walk models in terms of forecast performance. The large shocks to the CA observed in the last five years induced a faster speed of mean reversion, ensuring the necessary adjustment to meet the inter-temporal budget constraint.     

Product Innovation in Resource‐Poor Environments: Three Research Streams

We explore the role and relevance of resource scarcity in product innovation. The literature tends to assume that the development of new products requires resource sufficiency for the process to be conducted systematically. But we are also taught that necessity is the mother of invention and that resource scarcity may be a trigger of innovation in adverse contexts. In this discussion, we organize the literature on product innovation in resource‐poor contexts in three streams. The paper contributes to a finer‐grained understanding of the role of scarcity in product innovation and suggests that creative approaches to scarcity may contribute to knowledge enrichment of product innovation theory and practice.     

War and local collective action in Sierra Leone

We study the brutal 1991–2002 Sierra Leone civil war using nationally representative household data on conflict experiences, postwar economic outcomes, local politics and collective action. Individuals whose households directly experienced more intense war violence are robustly more likely to attend community meetings, more likely to join local political and community groups, and more likely to vote. Tests using prewar controls and alternative samples suggest that selection into victimization is unlikely to be driving the results. More speculatively, the findings could help partially explain the rapid postwar political and economic recoveries observed in Sierra Leone and after several other recent African civil wars.     

Accruals quality and corporate cash holdings

This Work Uses Panel Data For Firms Listed In The Spanish Stock Exchange Over The Period From 1995 To 2001 To Analyse The Effect Of Accounting Quality On Cash Holdings. The Results Show That Firms With Good Accruals Quality Hold Lower Cash Levels Than Firms With Poor Accruals Quality. This Finding Suggests That The Quality Of Accounting Information May Reduce The Negative Effects Of Information Asymmetries And Adverse Selection Costs, Allowing Firms To Reduce Their Level Of Corporate Cash Holdings. The Results Also Show That Cash Holdings Decrease When Firms Increase Their Use Of Bank Debt And In The Presence Of Cash Substitutes. In Contrast With This, Firms With Higher Cash Flow Hold Higher Levels Of Cash.     

A hybrid simulation optimization method for production planning of dedicated remanufacturing

This paper presents a hybrid cell evaluated genetic algorithm (CEGA) for optimization of the dedicated remanufacturing system with simulation. The paper first summarizes the special characteristics and problems of the dedicated remanufacturing. The paper then proposes a simulation model with a prioritized stochastic batch arrival mechanism, considering factors that affect the total profit. Based on the simulation model, the CEGA algorithm is developed to optimize the production planning and control policies for dedicated remanufacturing. A case study is provided based on the remanufacturing facility located at Austin, USA     

A cross-national study of corporate governance and employment contracts

Corporate governance (CG) can be seen to operate through a 'double agency' relationship: one between the shareholders and corporate management, and another between the corporate management and the firm's employees. The CG and labour management of firms are closely related. A particularly productive way to study how CG affects and is affected by the employment relationship has been to compare CG across countries. The contributions of this paper to that literature are threefold. (1) An integration of aspects of the labour management literature in the CG debate. (2) Based on a sample of about 1000 firms from 31 countries, we find evidence of complementarities between the CG and the labour management of firms. Extreme cases, in general, outperform mixed cases. (3) Firm differences within countries are more important than scholars have assumed so far. We present the results of the study and implications for future research and for practice.     

Human resources audit

Human resource management (HRM) has experienced a strong evolution. In order to provide useful information to managers, it is necessary to evaluate the results generated by the design and implementation of personnel policies. This is the goal of the HR audit that includes two different analyses and valuations: the HR policies and their level of fit with the strategy of the firm, and the characteristics of human capital. Several criteria have been used to assess different HR policies. Nevertheless, the measurement of the value that human capital brings to the firm is a very complex topic. Consequently, different models are being presented that aim to properly solve this challenge. This paper will analyze the HR function from two perspectives: the evaluation of the implemented policies and the quality of human capital in relation to real competencies, and the capability to learn and develop new skills.