Implementing technology-forcing policies: The 1970 Clean Air Act Amendments and the introduction of advanced automotive emissions controls in the United States

Technology forcing is a strategy where a regulator specifies a standard that cannot be met with existing technology, or at least not at an acceptable cost. Using the 1970 U.S. Clean Air Act for controlling automobile emissions as a baseline example, we demonstrate the importance of the regulatory implementation process if regulations are to foster technological change. The 1970 legislation required steep emissions reductions for new 1975 and 1976 automobiles, which presented automakers with major technical and economic challenges. Nevertheless, the U.S. Environmental Protection Agency successfully forced the adoption of two marquee control technologies—the catalytic converter in 1975 and the three-way catalyst in 1981. We focus on three factors critical to the implementation process: agency credibility to enforce standards, competitive pressures to drive industry research and development, and uncertainty about technological development.     

Plant level performance measurement: an exploratory case study of a pharmaceutical encapsulation company

Over the last few decades, hundreds of books and articles have been written on performance measures in manufacturing companies. A good number of those works has focused on overall organizational performance at the corporate level, business unit performance, and individual performance. Barring a few studies, there has been very little work reported on what specific performance measures are used at the plant and department level at a manufacturing facility. This exploratory research, through a case study of a pharmaceutical encapsulation company addresses those issues. Results show that the managers use a wide variety of measures primarily for meeting corporate targets and implementing a gain-sharing plan. There are not many common measures of performance used by managers for decision-making. None of the managers specifically linked the performance measures to the competitive priorities of the products made at the plant. A few propositions and suggestions for future research are made in the paper.     

Adam Smith on lotteries: an interpretation and formal restatement

The paper concerns a neglected aspect of the Wealth of Nations (with the notable exception of D. Levy 1999 Levy, D. M. 1999. “Adam Smith’s Katallactic Model of Gambling: Approbation from the Spectator.” Journal of the History of Economic Thought 21 (1): 81–91. doi:10.1017/S1053837200002868.[Crossref] , [Google Scholar]), dealing directly with decision under risk. In a few pages from book I, chapter 10, Adam Smith explicitly named “lotteries” various objects of choice (possible occupations, or investment opportunities, for instance) and provided an analysis which standard expected utility glasses would hardly fit. Taking this into account allows a better understanding of the part played by typical characters like the “projector” or the “sober man”, in such matters as Smith’s conception of entrepreneurship or of the credit market. The use of some modern concepts in decision analysis (inverse stochastic dominance, rank dependent utility, prudence toward risk), is a means to show the existence, in Smith’s work, of an original theory from decision under risk, where his analysis of lotteries in the Wealth of Nations is consistent with statements from his moral philosophy on asymmetric sensitivity to gains and losses and to the regulating part played by the impartial spectator.     

On the Samuelson–Etula Master Function and the capital controversy

Abstract

The paper addresses the ambiguity that surrounds the conception of capital and its role in neoclassical price-and-distribution theory. The difficulties encountered in the various attempts to define the marginal product either of capital or of a capital good are recalled and the conclusion is drawn that neither concept appears theoretically sound. This historical reconstruction is combined with critical discussion of the recent attempt by Paul Samuelson to determine income distribution by means of the “Master Function”, a device previously developed and presented by Samuelson himself with Erkko Etula, and its “non-neoclassical” marginal products. Rather than the existence of a continuum of alternative technical possibilities, this construction assumes the simultaneous use of a discrete number of methods of production for the same commodity. Even though each technique employs the inputs in fixed proportions, the coexistence of various techniques permits the full employment of an arbitrarily given vector of input endowments. As is shown here, however, the coexistence of methods required for the differentiability of the Master Function can take place, if heterogenous capital goods are used in production, neither in the case with stationary relative prices nor in the non-stationary Arrow–Debreu framework.     

Smith and Rousseau on envy in commercial societies

Abstract

Several works emphasise the similarities between Rousseau and Smith's analysis of self-interest. We will show, along the lines of Le Jalle, that these similarities end on a divergent appreciation of the importance of envy in commercial societies for, contrary to Rousseau, Smith did not consider envy to be a major threat in commercial societies. Part 1 presents their quite similar definitions of envy based on three characteristics: envy comes from a disadvantageous comparison with others; it is painful and malevolent. Part 2, then, studies their moral psychology, or the way they understand the relationship between sympathy and pity on the one hand, and comparison and envy on the other. Here, we identify significant differences between our two philosophers which might explain why they have opposing views on the predominance of envy in commercial societies and on the issue of inequalities of wealth as we show in Part 3. Rousseau thinks that envy increases with wealth and inequality and thus pervades commercial societies, while Smith sees envy as the exception rather than the rule, and, moreover, does not provide a historical genesis for envy. For Smith, it is emulation rather than envy which is the driving force of the progress of society.     

Service Fairness,Consumption Emotions,Satisfaction, and Behavioral Intentions: The Experience of Chinese Heritage Tourists

Drawing on the cognitive appraisal theory and the justice theory from the marketing and tourism literature, this study attempts to illuminate the embedded impact of tourist experience on overall satisfaction and behavioral intentions in a cognitive-affective-behavioral framework. The findings suggest that service fairness is an antecedent of consumption emotions (positive and negative) that, in turn, influence satisfaction and behavioral intentions in the context of Chinese natural heritage tourism. Notably, the results highlight the mediating role of tourists’ consumption emotions. This article concludes with a discussion of the theoretical and practical implications to heritage tourism researchers and managers.     

On the Sensitivity of Premiums and Reserves to Changes in Valuation Elements

Upon differentiating the Thiele differential equations and the equivalence condition with respect to some parameter appearing in the equations, one obtains differential equations for the derivatives of the state-wise reserves and the premium level with respect to the parameter. The solution to these equations measures the impact on premiums and reserves of a change in the parameter. Typically only numerical results can be obtained, but the method applies quite generally to multi-state policies and to virtually any parameter, and so represents a panacea in (the vast majority of) situations where analytical results are out of reach. Extensions to higher order derivatives and higher order conditional moments are straightforward. A difference method for computation is devised, and numerical results are reported for some practical cases.