How to control a chaotic economy?

An economic system which exhibits chaotic behaviour has been stabilized on various periodic orbits by use of the Ott-Grebogi-Yorke method. This procedure has been recently applied to controlling chaotic phenomena in physical, chemical and biological systems. We adopt this method successfully for Feichtinger's generic model of two competing firms with asymmetrical investment strategies. We show that the application of this control method to the particular economic process considered brings a substantial advantage: one can easily switch from a chaotic trajectory to a regular periodic orbit and simultaneously improve the system's economic properties. Numerical simulations are presented in order to illustrate the effectiveness of the whole procedure.The work was supported by the Alexander von Humboldt-Stiftung and by the Polish National Council (KBN) Grant No 2 P302 038 04.     

Essentiality,Efficiency, and the Efficient Component-Pricing Rule

The determination of interconnection charges to essential facilities is an important problem in regulated telecommunications markets in the wake of the Telecommunications Act of 1996. This paper defines mathematical conditions for the essentiality of upstream productive inputs and examines their implications for efficient interconnection pricing. The paper shows conditions under which the efficient component-pricing rule (ECPR) can be derived as a special case of a Ramsey pricing rule. The paper also shows how efficient pricing differs from the ECPR for a number of interesting cases.     

Environmental regulation and profitability: An application to Swedish pulp and paper mills

In this paper we analyze the impact on firm profits of the environmental regulations in the Swedish pulp and paper industry. The approach taken is a non-parametric programming model of the technology. A feature of this industry is that environmental regulations are determined individually for each mill. A question, then, is if these individual regulations have a similar impact on firm profits. The approach in this paper allows us to calculate both the regulated and unregulated profits, which means that the severity of the regulations, in terms of foregone profits, can be calculated for each mill. The empirical result shows that the impact on the mills varies substantially, and that the burden from the regulations is less severe in 1990 than in 1989.     

Work and Welfare in Economics:

Abstract . Today's conventional economics typically ignores the impact of alternative forms of work organization upon the welfare of the worker. In effect, its methodology is concerned with the welfare of the individual as a consumer, but not with the welfare of the individual as a worker. Hence, welfare conclusions of economics are subject to challenge on grounds of being incomplete. Whether the worker is alienated or achieves self-fulfillment, etc., stands in no necessary relationship to either the formal lines of enterprise ownership, political ideology or form of economic system. Questions of authority and power in work organizations and the workplace conditions affecting the worker on the job transcend them.     

How does perceived underemployment influence expatriate job-related outcomes? A moderated mediation study

Abstract

Although research has investigated the consequences of underemployment in domestic settings, research on the effects of underemployment among expatriates remains limited and has yielded inconsistent results. From a theoretical perspective, there is a need for a better understanding of the mechanisms through which underemployment affects various work-related outcomes and to account for potential contingencies. Drawing on the person-job fit literature and research on organizational identification, we theorise and empirically examine how and under what conditions underemployment influences expatriate performance. Using an original primary data-set of 103 Japanese expatriate managers in the UK, we find that underemployment affects expatriate work outcomes by increasing expatriates’ maladjustment and that this effect is moderated by the level to which expatriates identify with their organization.     

Dynamic R&D competition with memory

We consider a differential game of R&D competition and explore the impact of rivalry on the firms' investment behavior over time. Using closed-loop strategies and hence allowing for strategic interactions among rival firms we show that R&D spending by the individual competitor is increased due to competition in the race for priority. This leads us to argue that competitive encounters enhance R&D activities at the same time as increasing efficiency in the race for a technological breakthrough.     

Wealth inequality and collective action

We study the effect of inequality in the distribution of endowments of private inputs (e.g., land, wealth) that are complementary in production with collective inputs (e.g., contribution to public goods such as irrigation and extraction from common-property resources) on efficiency in a class of collective action problems. We focus on characterizing the joint surplus maximizing level of inequality, making due distinction between contributors and non-contributors, in a framework that allows us to consider a wide variety of collective action problems ranging from pure public goods to impure public goods to commons. We show that while efficiency increases with greater equality within the groups of contributors and non-contributors, so long the externalities (positive or negative) are significant, there is an optimal degree of inequality between these groups.