Efficiency in one-sector,discrete-time,infinite-horizon models

In recent years, a considerable number of papers have been devoted to the problem of characterizing efficient programs in infinite-horizon models. In the present paper on one-sector models, it is shown that (1) the study of production or consumption efficiency can be reduced to the study of a single model, and (2) certain measures of curvature are crucial for the efficiency of programs. Criteria for efficiency of programs using these curvature measures are given and it is indicated how the existing results in the field can be obtained using the present criteria.     

The Austrian Tertius Gaudens: A Revisit of Competition Theory in Light of Georg Simmel

Austrian market process theory stands out in assigning particular importance to the role of the customer. This is however not really salient as competition is discussed save for in a few particular instances. This is a pity since the market process discourse thereby deprives itself of a firm progressive footing concerning further elaborations of how market dynamics evolve. By drawing on the reasoning that originates some hundred years ago with the works of Georg Simmel, this paper brings forward an Austrian version of his idea on Tertius Gaudens. In a market context this is the alert buyer who benefits from the disunion that prevails between sellers to the extent that market intimacy, conceived of as supplier specificity, is low. In this manner some of the inner workings of the market process, what promotes competition subject to which institutional constraints, are discussed to the benefit of yet another important Austrian demarcation, that of competition as being geared by the customer.     

A linear demand system within a seemingly unrelated time series equations framework

A seemingly unrelated time series equations framework for the linear almost ideal (AID) demand system is considered. The framework is applied to a consumer demand system covering nine non-durable commodities. Within a specification where the static linear AID system is augmented by latent variables representing stochastic trends and seasonality, demand homogeneity is tested; both in each equation and in the system as a whole. Income and own-price elasticities are calculated under homogeneity restrictions. Although the homogeneous model is formally rejected by statistical tests, it performs well with respect to interpretability, parameter stability and forecasting.     

Performance Management: Perceiving Goals as Invariable and Implications for Perceived Job Autonomy and Work Performance

In this study, we investigated whether perceiving goals as invariable is negatively related to work performance and whether this relationship is mediated by perceived job autonomy. Perceiving goals as invariable refers to the extent to which employees believe that the goals in a performance management system represent absolute standards that they must meet without exception, even if they think other factors are more important (e.g., situational factors or factors that are not associated with goals). In support of our hypotheses, we found a negative relationship between perceiving goals as invariable and work performance and that perceived job autonomy mediated this relationship. Theoretical and practical implications and directions for future research are discussed. © 2014 Wiley Periodicals, Inc.     

The Shareholder Base Hypothesis of Stock Return Volatility: Empirical Evidence

We use Swedish ownership data to explore whether a large and diversified shareholder base leads to lower volatility by improving the information content of stock prices. We find that volatility increases in the number of shareholders with respect to both the number of relatively large shareholders and the fraction of shares held by investors with stakes below 0.1%. Volatility is also positively related to the number of institutional owners but negatively related to the number of large and underdiversified institutional owners. Foreign investors have no impact. Our results suggest that a large shareholder base does not lower volatility.     

Seasonal asymmetries in wholesale–retail cost pass-through

This article investigates the extent of seasonal asymmetries in wholesale to retail cost pass-through in the Canadian apple market. We model nonlinearity in cost pass-through in a panel two-regime error correction model. The model employs weekly store-level retail matching wholesale price data for a major US retail chain. Our results reveal distinct seasonal asymmetries in cost pass-through. Retail prices adjust faster during the fall indicating significantly higher pass-through in response to a change in input composition and seasonal expansion of alternative marketing channels. This input composition effect on cost pass-through highlights the general importance of time-variant market conditions and their respective determinants in explaining cost pass-through dynamics in commodity markets.     

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.     

What Drives Oil Prices? Emerging Versus Developed Economies

We explore the role of demand from emerging and developed economies as drivers of the real price of oil. Using a FAVAR model that identifies shocks from different regions of the world, we find that demand from emerging economies (most notably from Asian countries) is more than twice as important as demand from developed countries in accounting for the fluctuations in the real oil price and in oil production. Furthermore, geographical regions respond differently to adverse oil market shocks that drive up oil prices, with Europe and North America being more negatively affected than countries in Asia and South America. Copyright © 2014 John Wiley & Sons, Ltd.     

How beliefs influence behaviour: Confucianism and innovation in China

Previous studies have analysed how religious beliefs may affect economic activity. We extend this literature by examining how Confucianism is linked to innovation activity at the firm level in China. We analyse the relationship between Confucianism and several proxies for input and outputs of innovation activities. Our results show that Confucianism is significantly related to lower levels of innovation activity regardless of which measure for firm-level innovation we use. We also find that the nature of ultimate ownership influences this relationship, with innovation among state-controlled firms being significantly more affected by Confucianism. This study thus adds to the understanding of how traditional belief systems influence behaviour among economic actors.