New development: Between politics and strategic planning—the management of government priorities in Lithuania

ABSTRACT

How do political agendas impact on strategic planning practices? This article shows that recent changes to the framework for managing government priorities have made Lithuania’s strategic planning system more politically responsive by mobilizing political attention, leadership and state funding to major government commitments. However, these changes have not yet translated into any longer term outcomes because policy implementation practices did not change very much.     

Toward the system theory of dependence: Further general theoretical remarks

This paper forms another part of a more extensive study inspired by the authors' aims to contribute to the elaboration of the social systems theory of dependence and to better understand the behavior of the global system of human beings and of its subsystems. The theory of dependence, by elaborating an abstract theoretical model of the dependence space, aims at a better understanding of social change (or resistance to change) on the micro, medium and macro-levels of the social systems. In this paper some features of a crude model have been presented at a high level of abstraction. A minimum set of concepts, such as dependence relation, dependence coupling, dependence boundary, dependence capacity, entropy of behavior, systems need relations and possibilities, etc., have been defined and formalized. Some propositions have been formulated. We hope that, in spite of the high level of abstraction and of an insufficient amount of data supporting our propositions which are based mainly on the general systems taxonomy and on the hypothetical-deductive method, the conclusions will have some heuristic value for further inquiries into the theory of modelling the guidance systems of social processes.     

Is it Possible to Identify High-Risk Suppliers from Financial Statements?

International Advances in Economic Research -     

Optimal Loan Interest Rate Contract Design

This paper analyzes optimal loan interest rate contracts under conditions of risky, symmetric information for one-period (static) and multi-period (dynamic) models. The optimal loan interest rate depends upon the volatility of, and co-variation among the market interest rate, borrower collateral, and borrower income, as well as the time horizon and the risk preferences of lenders and borrowers. For a risk-averse borrower with stochastic collateral, variable interest rate contracts are, in general, Pareto optimal. For plausible assumptions, the optimal loan interest rate for the multi-period model often exhibits muted responses to changes in market interest rates, making fixed rate loans a reasonable approximation for the optimal loan. Hence, in the absence of optimal contracts, long-term (short-term) borrowers tend to prefer fixed rate (variable) contracts.     

An extended matrix of economic growth and corresponding dynamic system

This paper considers an extended matrix of growth and corresponding dynamic system. The aim of this consideration is to define and analyse different cases of interdependences based on the extended matrix of growth. The system on the basis of the extended matrix of growth is built on the general structure of sectors growth. This generalized structure is expressed by the direct and indirect growth rates among sectors and exogenous factors. The main characteristic of this system is that it can be formulated and examined under various conditions. This is because of the fact that growth is characteristic of all economic processes, and the extended matrix of growth has the capability of including and expressing the structural and dynamic aspects of the interdependence of processes. In this sense the extended matrix of growth is used to examine various systems of interdependence.     

ORGANISATIONAL FORM AND TECHNICAL EFFICIENCY OG CZECH AND SLOVAK FARMS

MOCT-MOST: Economic Policy in Transitional Economies -     

Noise and aggregation of information in large markets

We study the relation between noise (liquidity traders, endowment shocks) and the aggregation of information in financial markets with large number of agents. We show that as long as noise increases with the number of agents, the limiting equilibrium is well-defined and leads to non-trivial information acquisition, even when per-capita noise tends to zero. In such equilibrium risk sharing and price revelation play different roles than in the standard limiting economy in which per-capita noise is finite. We apply our model to study information sales by a monopolist, and information acquisition in multi-asset markets, showing that it leads to qualitatively different results with respect to those in the existing literature. Our conditions on noise are shown to be necessary and sufficient to have limiting economies with perfectly competitive behavior consistent with endogenous information acquisition.     

Don't Plan! The Use of the Notion of ‘Culture’ in Transforming Obsolete Industrial Space

How is the notion of ‘culture’ understood and used in planning the transformation of obsolete industrial space? This article analyses the evidence from a current planning project in Suvilahti, Helsinki. It shows that ‘culture’ is imagined and employed as an instrument capable of producing difference in urban space. The transformation of the Cable Factory in Helsinki and the subsequent consensus on the importance of ‘culture’ are shown to have influenced the planning of Suvilahti. On the one hand, planning is being carried out with a deliberate minimization of planning interventions and the promotion of the spontaneous, non‐planned practices of cultural producers: the future Suvilahti is imagined as a ‘cultural enclave’ and its community is characterized as a ‘living organism’. On the other, ‘culture’ is planned in terms of its supposedly positive effects on urban space. Planners do not want to interfere with the non‐planned character of ‘cultural production’, yet at the same time they express certainty about cultural production's positive spatial and socioeconomic effects. The transformation of Suvilahti is playing an important part in the large‐scale planning project to redevelop the old industrial harbour in Kalasatama, Helsinki. The changes in the nature of planning are analysed under the concept of cultural governmentality.     

Knowledge‐salvage practices for dormant R&D projects

Most successful firms have an abundance of new and old knowledge in their research and development laboratories, and only a fraction is being put into use in new product development. This knowledge is left over from projects that have been killed at different development stages and may actually carry considerable value. In this article, we propose a knowledge bank as a possible solution to preserve and possibly grow this knowledge. It is a self‐sustaining institute with minimal or no ongoing effort from the donor company, yet manages the knowledge in a way that protects proprietary interests and actively fosters communication and interchange among sponsoring companies wherever possible. The framework of this structure, as well as how it works, is described here. Specifically, a system dynamics modeling of the knowledge bank is developed, and a simulation study is conducted using VENSIM®. The results confirm the viability of creating such a system in a consortium of organizations.