Capital and labor misallocation in the Netherlands

Journal of Productivity Analysis - Using firm-level panel data we analyze the misallocation of capital and labor for the Netherlands in the period 2001–2017. We use the dispersion in marginal...     

Incorporating a tracking signal into a state space model

It is a common practice to complement a forecasting method such as simple exponential smoothing with a monitoring scheme to detect those situations where forecasts have failed to adapt to structural change. It will be suggested in this paper that the equations for simple exponential smoothing can be augmented by a common monitoring statistic to provide a method that automatically adapts to structural change without human intervention. The resulting method, which turns out to be a restricted form of damped trend corrected exponential smoothing, is compared with related methods on the annual data from the M3 competition. It is shown to be better than simple exponential smoothing and more consistent than traditional damped trend exponential smoothing.     

The impact of government debt on the long-run natural real interest rate – a quantitative evaluation

Persistently low natural real interest rates are a problem for monetary policy and financial stability. I analyse to what extent a permanent increase in government debt that is financed by higher taxes could raise the long-run natural real interest rate. As a measurement tool, I use an incomplete markets model with capital and government bonds. Increasing the public debt/GDP ratio by one percentage point raises the real interest rate by between 0.4 and 1.5 basis points, depending on the degree of inequality generated by the model and the tax instrument used to balance the government’s budget constraint. I also show that the interest rate effect of a change in public debt/GDP predicted by the model is significantly smaller than its empirical counterpart for the US, due to the fact that the model understates the empirical fraction of households that are constrained in their consumption decision.     

The rise of economics in competition policy: A Canadian perspective

Competition policy in Canada and elsewhere has changed remarkably over the last 50 years—in large measure due to advances in economics. In this article, we trace the impact of developments in industrial organization on the three central areas of competition policy: cartels, single firm conduct and mergers. We focus on Canadian competition policy but draw comparisons with developments in the United States and Europe.     

Invisible costs in offshoring services work

Offshoring service work is an accelerating trend. While the cost-savings from offshoring service work are usually clear, operating at a distance also brings with it certain “invisible costs.” We combine existing service operations theory with insights from the literature on communications and culture to present a new conceptual framework, organized around interaction intensity and interaction distance. We identify the drivers of these costs. We conclude with recommendations for controlling or attenuating invisible costs in offshoring service work.     

Restructuring and Workplace Unionism at Manchester Airport

This paper provides evidence from empirical case-study research into the impact of compulsory competitive tendering on workplace union organization among the baggage-handling workforce at Manchester Airport. It documents the main processes of development within an historical context, assessing the strengths and weaknesses of workplace unionism during the 1980s, the recent challenge posed by managerial restructuring in the early 1990s, and the wider implications for debates about the 'state' of workplace unionism in Britain today.
Compared with the union resilience displayed by the baggage handlers during the 1980s, the nature of shop-stewards' organization appears to have changed drastically to managemenťs advantage during the last few years. However, continuing underlying tensions in worker-management relations suggest that this situation may not necessarily amount to a fundamental and irreversible transformation in the nature of workplace unionism in the manner in which those who use the vocabulary of the 'New Industrial Relations' would suggest.     

Structural changes in U.S. agriculture: Implications for African American farmers

Structural changes in U.S. agriculture, influenced by technological and institutional forces, have altered the economic and social characteristics of rural America, especially that segment of rural America populated by farmers and their families. Changes in the structure of agriculture have greater implications for small scale farmers, many of whom are African American, in that strategic options for their farm-firms are constrained to: increasing their farm size, exiting farming, and obtaining off-farm employment to survive. This article presents a rationale for public support of limited resource farmers, identifies structural trends in U.S. agriculture and their impacts on African American farmers, discusses economic problems unique to these farmers, and recommends needs for specific public policies and development programs.