Are you being served? A general-equilibrium analysis of flexibility in production

In this paper firms may deviate from standard product specifications by investing in flexible production. In a two-sector general-equilibrium model that features consumer preferences with a desire for customization and in which the fixed cost of manufacturing production depend on the extent of flexibility chosen, we find that flexibility in production increases aggregate welfare. Moreover, we find that the symmetric equilibrium with positive (excess) profits welfare dominates the equilibrium with zero profits.     

Targeted poverty investments and economic growth in China

In the mid-1980s, the Chinese government launched its ambitious poor area development policy, which was centered around a series of grant, credit, and Food-for-Work programs. Ironically, for the remainder of the 1980s rural poverty remained at about 90 to 100 million, or approximately 10% of the rural population. The lack of progress cannot necessarily be blamed on ineffective poor area policies, since much of the agricultural economy was mired in a deep recession between the mid-1980s and the early 1990s. By the mid-1990s substantial additional poverty reduction had been achieved. Even in the late-1980s, farmers in many poor counties did better than the national average in terms of income growth. After accounting for the effects of macroeconomic elements, what factors can help explain the differences in performance among poor regions and between poor areas and rich ones? Can part of these differences be accounted for by poor area policies, in general, or by the way local and regional officials allocate their poor area investment funds, in particular?The overall objective of this paper is to analyze the effectiveness of Chinese poor area policy. Specifically, the paper seeks to meet three objectives. First, we want to understand the evolution of poor area policy since the mid-1980s, trying to deduce the true goals of central and regional poor area officials, as well as how these policies have been implemented in the provinces. Next, we want to understand the magnitude and scope of investment into poor areas, and examine if changes in these policies have affected the uses of the investment funds. Finally, we want to determine the effectiveness of the investment of poor area funds, analyzing which types of investments have generated growth, and which ones have not.     

Slow track, fast track, and the “Galactic Club”

Discoveries in the physical and biological sciences suggest that intelligence is widely distributed throughout the universe. Before long, either we will decide that these discoveries have pointed us towards a false conclusion, or we will obtain undeniable evidence of extraterrestrial life. After finding one extraterrestrial society, we are likely to discover others and, in this manner, become a part of the “Galactic Club”. Following the “slow track”, an initial encounter will lead to accelerated search efforts that will put us in touch, one by one, with additional societies. Following the “fast track”, our initial contact will be with an affiliate of the Galactic Club, and this society will give us instant access to other members. The physical constraints imposed by interstellar distances, coupled with our understanding of large social systems, suggest that the Galactic Club will be large, stable, slow-paced, and exert only loose control over its members. The two tracks have different implications for managing initial contact, protecting our security, knowledge transfer, handling culture change, and preserving our identity.     

Life cycle and bequest savings A study of Japanese and U.S. households based on data from the 1984 NSFIE and the 1983 survey of consumer finances

This paper investigates whether the elderly save or dissave in light of two newly available sets of cross-section micro data, the 1983 “Survey of Consumer Finance” for the United States and the 1984 “National Survey of Family Income and Expenditure” for Japan. Contrary to dominant earlier findings we find for the United States that families after retirement dissave on average about a third of their peak wealth by the time of death, leaving the rest (mostly their homes) as bequests. For Japan, special handling is made to eliminate possible sample selection bias due to the different economic characteristics of the elderly forming independent households and those living with children. We find that the elderly belonging to both groups continue to save, and moreover, there appear to be significant signs of ongoing wealth transfer between the generations. The data in both countries also show that the elasticity of saving with respect to a life time income measure is significantly greater than unity, and more strongly so within higher age groups. J. Japan. Int. Econ., December 1988, 2(4), pp. 450–491. Department of Economics, University of Pennsylvania, Philadelphia, PA 19104-6297, and National Bureau of Economic Research.     

Education and the empowerment of women in household decision‐making in Spain

It was analysed whether investment in the education of both women and men serves to empower wives resulting in more balanced household decisions being taken on matters related to consumption and financial management. They considered that household decision‐making could be made by mainly the wife, mainly the husband or the couple acting jointly. They then applied multinomial probit models to the Spanish Living Conditions Survey of 2010. Results show that, when controlling for demographic, family and labour market characteristics, the level of education of both the husband and wife has a positive effect in terms of a more egalitarian decision‐making process in relation to three areas of expenditure: daily shopping, expensive purchases of consumer durables and significant expenditure on children. However, only women's education has a positive effect on borrowing money and no effect of education is observed with regard to the use of savings. Results are less conclusive for households where decisions are taken primarily by the wife or husband, since men's education increases the role of husbands in the household making‐decision process whereas no effect of wives' education is observed.     

Adoption and Implementation of Internal Marketing Systems by Ghanaian Small- and Medium-Sized Enterprises

This paper explores the concept of internal marketing (IM) as an internal supportive system that could provide the infrastructure for a strategic business take-off. It investigates how IM, as a concept, is understood and made practical in the context of Ghanaian small- and medium-sized enterprises (SMEs). This qualitative research method was used due to the nature of the enquiry. The government of Ghana is constantly searching for more effective ways of assisting SME performance, through various strategic growth and development schemes. Despite the fact that much has been said in the literature, the IM concept remains elusive. Most SMEs are not aware of IM and demonstrate little understanding of the concept. And SMEs have problems with the implementation of IM. The manufacturing sector demonstrates more IM orientation than does the service sector. This paper unravels sociocultural factors that frustrate the practice of IM among Ghanaian SMEs and calls for a greater awareness of the concept by stakeholders. Suggestions include more general business support for SMEs to improve performance and subsequently grow. The paper finishes by drawing attention to management implications within the practice of IM.