A note on capital budgeting in the purchase of information

A capital budgeting problem of purchasing perfect information is defined. The relationship between this problem and the Expected Value measure is shown and an illustrative example provided.     

The 1979 US gasoline shortage and its impact on the tourism industry

Owners or managers of 373 businesses on Cape Cod, Massachusetts, were interviewed in summer 1981 to determine whether they were affected by the 1979 gasoline shortage. The results indicate that half the respondents were affected, the majority of whom were adversely affected. More tourism businesses reported being affected than non-tourism businesses. The effects manifested themselves in staff layoffs and unfilled vacancies. Nevertheless, tourism businesses on the Cape did not alter any of their marketing strategies, excluding the lowering of prices.     

THE EFFECT OF MARKET CONDITIONS AND RISK CLASSIFICATIONS ON MARKET MODEL PARAMETERS

This article reports the results of tests used to detect shifts in market model parameters during bull and bear market conditions. The evidence indicates that the parameters exhibit nonstationarity during market advances and market declines for certain predetermined stock groups. Specifically, the parameters of stocks in high-risk and low-risk classifications behave as if they are affected by the alternating forces of bull and bear markets.     

Informal Employment and the Structure of Wages in India: A Review of Trends

The “alternative”, “atypical” or “informal” workforce has grown in developed and developing countries alike. One of the more recent evolutions of informal employment has been of informal employment within formal enterprises. In the interest of flexibility and cost‐reduction, many formal firms increasingly resort to hiring workers on a temporary or informal basis. Alongside, and perhaps, as a result of the persistence and pervasiveness of informal employment, issues relating to inequality have come to the fore. This paper is motivated by these two intertwining aspects of Indian labor market—informality and wage inequality. Using nationally representative sample data, the paper examines trends in wage inequality among various forms of informal workers, overlaying these findings with broader trends in inequality. Using a regression based inequality decomposition, the paper compares the sources of wage inequality across different employment groups and the reasons for differences in wage inequality.     

The effect of globalization on union bargaining and price-cost margins of firms

In recent years, Europe has witnessed an accelerated process of economic integration. This paper analyzes how increased economic integration has affected labor and product markets. We use a panel of Belgian manufacturing firms to estimate price-cost margins and union bargaining power and show how various measures of globalization affect them. Import competition puts pressure on both markups and union bargaining power, especially when there is increased competition from low wage countries. This suggests that increased globalization is associated with a moderation of wage claims in unionized countries, which should be associated with positive effects on employment.

下个十亿市场

事实上,下一代新兴市场可以定夺许多产业中的胜利者和失败者,且是下一个崭新商业巨人的崛起之处。