Increasing foreign supply of intermediates and less reliance on domestic resources: The production structure of the Swedish economy, 1957–1980

Historical comparisons of the Swedish production structure is undertaken in this paper. The total series of Swedish input-output data is, for the first time, exploited within the Leontief open static model and by use of the method of triangulation. Reliance on foreign supply of intermediates increased in the Swedish economy during the post-war period and the traditional dominance of production chains based on iron ores, forests and hydropower in the domestic supply of intermediates reduced in favour of chemical products and services. Also, labor employment declined significantly relative to the employment of capital in production. Some implications for the effects of aggregate economic policy are discussed.     

An exploratory study of resident perceptions toward the tourism industry in Cappadocia: a Social Exchange Theory approach

This paper evaluates the perceptions of Cappadocia residents on the impacts of tourism development and resident attitudes toward tourism. Social Exchange Theory underpinned this study of the perceptions of Cappadocia’s residents and their attitudes toward tourism. Primary data were collected from tourism industry professionals, officials of non-profit organizations and handicraftsmen. Twenty-three in-depth interviews were conducted with Cappadocia residents, and the data were analyzed with content analysis. Results highlight that “Economic,” “Socio-Cultural” and “Environmental” aspects can be inferred to encompass resident perceptions toward the impacts of tourism development in Cappadocia. Residents tend to recognize the economic benefits as well as socio-cultural and environmental costs. Results indicate that Social Exchange Theory can be used in explaining the perceptions of Cappadocia residents and reactions to tourism phenomena. This study is expected to provide practical ways for concerned authorities to make future policies and strategies to eradicate problems that create unpleasant feelings amongst residents.     

Computing open-loop noncooperative solution in discrete dynamic games

The purpose of this paper is to introduce a new algorithm for the approximation of non-quadratic, non-linear open-loop Nash Cournot equilibrium in a difference game of fixed duration (multiperiod) and initial state. The algorithm based on adaptive search procedure called genetic algorithm has been used to optimize strategies for N-person dynamic games. Since genetic algorithms require little knowledge of the problem itself, computations based on these algorithms are very attractive to complex dynamic optimization problems. The empirical evidences are also provided to show the success of the algorithm developed. A typical example in US macroeconomic policy selection for 1933-1936 yields evidence of political inference in the economy.     

A neglected contribution to monetary theory in the eighteenth century: Anders Wappengren on paper money,floating exchange rates,and purchasing power parity

Abstract

Between 1789 and 1803 the National Debt Office issued unbacked interest bearing notes whereas the Bank of Sweden issued silver backed notes. The massive note issuance by the National Debt Office led to different exchange rates and two units of account. The situation gave rise to an early paper standard theory formulated by Anders Wappengren, a well-read merchant who was strongly influenced by Adam Smith and the French physiocrats. Wappengren had a firm understanding of monetary systems and the adjustment mechanism under floating exchange rates, including such concepts as purchasing power parity and price stickiness.     

„Full Range Leadership“-Modell: Kritische Würdigung und Anregungen zur Weiterentwicklung

Zusammenfassung  Transformationale Führung als inspirierendes und emotional aktivierendes Führungsverhalten erf?hrt aufgrund ihrer Wandlungsfunktion in gesellschaftlichen Umbruchsphasen eine sehr hohe Wertsch?tzung, auch wenn ihr Gegenüber, die transaktionale Führung, in der Praxis derzeit wohl noch eine st?rkere Verbreitung besitzt. Ein Abgleich transformationaler und zugleich transaktionaler Führung in ihrer fortentwickelten Form als Full Range Leadership Modell mit den Charakteristika des Ph?nomens Führung offenbart zentrale Schwachstellen. An diesen Punkten setzen überlegungen zu einer Aufwertung transaktionaler Führung mittels einer Integration effektiven aufgaben-, beziehungs- und wandlungsorientierten Verhaltens in das Full Range Leadership Modell an. Zudem bietet ein „führungspraktischer“ Ausblick einen Denk- und Handlungsansatz, der von einem wechselseitigen Einflussverh?ltnis ausgeht und Situationsfaktoren modellimmanent berücksichtigt.

Borrow Cheap,Buy High? The Determinants of Leverage and Pricing in Buyouts

Private equity funds pay particular attention to capital structure when executing leveraged buyouts, creating an interesting setting for examining capital structure theories. Using a large, international sample of buyouts from 1980 to 2008, we find that buyout leverage is unrelated to the cross‐sectional factors, suggested by traditional capital structure theories, that drive public firm leverage. Instead, variation in economy‐wide credit conditions is the main determinant of leverage in buyouts. Higher deal leverage is associated with higher transaction prices and lower buyout fund returns, suggesting that acquirers overpay when access to credit is easier.     

Financial flexibility,corporate investment and performance: evidence from financial crises

This study examines the impact of financial flexibility on the investment and performance of East Asian firms over the period 1994–2009. We employ a sample of 1,068 firms and place particular emphasis on the periods of the Asian crisis (1997–1998) and the recent credit crisis (2007–2009). The results show that firms can attain financial flexibility, primarily through conservative leverage policies and less commonly by holding large cash balances. Financial flexibility appears to be an important determinant of investment and performance, mainly during the Asian 1997–1998 crisis. In particular, firms that are financially flexible prior to this crisis (1) have a greater ability to take investment opportunities, (2) rely much less on the availability of internal funds to invest, and (3) perform better than less flexible firms during the crisis. Our analysis covering the credit crisis period of 2007–2009 suggests that some of the advantages of flexible firms towards investing persist but are significantly less pronounced over that period. We also find that the value of financial flexibility is region/country specific, which may be explained by the fact that different regions/countries often adopt different macroeconomic policies and operate in diverse economic/legal environments.     

Liquidity Coinsurance and Bank Capital

Banks can deal with their liquidity risk by holding liquid assets (self‐insurance), by participating in interbank markets (coinsurance), or by using flexible financing instruments, such as bank capital (risk sharing). We use a simple model to show that undiversifiable liquidity risk, that is, the liquidity risk that banks are unable to coinsure on interbank markets, represents an important risk factor affecting their capital structures. Banks facing higher undiversifiable liquidity risk hold more capital. We posit that, empirically, banks that are more exposed to undiversifiable liquidity risk are less active on interbank markets. Therefore, we test for the existence of a negative relationship between bank capital and interbank market activity and find support in a large sample of U.S. commercial banks.     

Views of Risk in Sweden: Global Fatalism and Local Control — An Empirical Investigation of Ulrich Beck's Theory of New Risks

Ulrich Beck's theory of risk society has been criticised because there is lack of empirical evidence. By comparing people with different life contexts and experiences, the aim of this study was to investigate how these people view risk, and if ‘new’ risks are perceived differently by different groups in society. Five focus‐group interviews were conducted in Sweden, in 2004/05, with people in rural and urban areas, people with a foreign background and experts. The groups consisted of four people each and lasted for two hours. The results show that ‘new’ risks are not something people worry about; ‘risk’ is associated with personal experiences and life context. This indicates a traditional or at least modern way of viewing risk, and contradicts the idea of a reflexive view of risk. However, a division between the urban versus the rural‐migrant groups appears: the expert‐urban groups show a more global—fatalistic strategy to handle of risk, while the rural—migrant group shows a more traditional approach to risk, where control and the local context are in focus.