Principles for Economic Recovery and Renewal

Over the past year, substantial progress has been made on the path to economic recovery. Yet, as true with most recessions induced by a financial crisis, recovery is going to be long and slow. This is particularly true for employment. Moreover, there is evidence that indicates there are structural as well as cyclical concerns about this recovery's slow employment growth. The personal as well as macroeconomic costs of this slow growth mean that there is no higher public policy priority than economic recovery and job creation. This address presents and discusses three guiding principles for economic policy: restoring confidence, increasing aggregate demand, and achieving broader and deeper education.     

Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis

Trade credit has been shown to be an important source of short-term finance for smaller firms but small firms are also suppliers of trade credit. There is little empirical evidence on the credit granting decisions of small firms. Previous empirical work (Petersen and Rajan, 1997; and Ng, Smith and Smith, 1999) has focused on credit granting and investment in accounts receivable in larger firms. In this paper we look at the influences on credit granting for the smallest firms, using a sample of firms with an average of 10 employees. As in previous studies we find that product and demand characteristics influence credit terms. Moreover, we find evidence that firm size affects credit extension choices directly by setting limits on the possibilities for economies of scale, but it also impacts indirectly by affecting the firm's access to finance and its bargaining strength vis-à-vis suppliers. The dominant position of larger customers in bargaining with small suppliers constrains the impact of other factors on the firm's choice of credit terms. Small firms are also under pressure to conform to industry norms, although lack of resources can be a limiting factor. Constrained firms may make use of two-part terms in an attempt to improve their cashflow.     

Exchange Rate Instability: A Threshold Autoregressive Approach

We fit a two-regime threshold autoregressive model to a trade weighted index of the Australian real exchange rate. We find strong evidence of a threshold in the real exchange rate, with the data being classified into two regimes. The timing of the first regime is consistent with events that would be expected to have led to pressure on the Australian exchange rate. However, there is no evidence to suggest that the Asian economic crisis led to the real exchange rate entering this regime.     

哈佛大学：日本失落的十年值得中国反思

为了思考这一问题——如何让美好时光永驻,巩固并延续目前已经取得的成就,我们从过去20年日本的教训中可以找到一些堪为中国借鉴的方面。20年前的日本人肯定没有想到在其后的20年里日本经济所发生的一切。     

Motivating intention to take action on behalf of an out-group: implications for the use of advocacy messages in social marketing strategies

ABSTRACT

In psychological research, the Social Identity Theory has been used to explain people’s motivation to take action in support of causes predominantly with a focus on in-group action. This study takes up the call to extend the limited attention given to intent-to-act on behalf of an out-group. Our research investigates support for the legalisation of medical marijuana (an out-group) and concludes that message structure is critical to increasing the likelihood of intent-to-act in support of an out-group. Specifically, we show that messages delivered from a legitimate advocate for the issue will generate empathy towards those affected and anger towards the perceived injustice, motivating intent to take action. Social marketers, charged with engaging communities to support programmes targeted at disadvantaged minority groups within the population, will benefit from the results of this research.