Social incidence and economic costs of carbon limits

This paper discusses both distributional and allocational effects of limiting carbon dioxide emissions in a small and open economy. It starts from the assumption that Switzerland attempts to stabilize its greenhouse gas emissions over the next 25 years, and evaluates costs and benefits of the respective reduction program. From a methodological viewpoint, this paper illustrates, how a computable general equilibrium approach can be adopted for identifying economic effects of cutting greenhouse gas emissions on the national level. From a political economy point of view it considers the social incidence of a greenhouse policy. It shows in particular that public acceptance can be increased and economic costs of greenhouse policies can be reduced, if carbon taxes are accompanied by revenue redistribution.     

A model of the socialist firm in transition to a market economy

This paper models the dynamic adjustment path of a socialist firm in transition to a market economy by a price shock that renders old capital obsolete. The firm can adjust with investment in more productive capital equipments. The optimal time paths of investment, output, and employment are analyzed and the impact of fiscal incentives like investment subsidies and a reduced corporate income tax rate are studied. Like output, the aggregate capital stock follows a J-curve. The conditions for viability of firms and the impact of variables such as wage increases on the value of the firm are discussed.     

A social exchange theory framework for understanding the job characteristics–job outcomes relationship: the mediating role of psychological contract fulfillment

This study integrated the Job Demands-Resources (JD-R) model and concept of psychological contract fulfillment into a social exchange theory process framework to improve our understanding how and when job characteristics interact to influence job outcomes. Using survey data (n = 334), we found evidence to support our hypothesized relationships between job characteristics (job demands and job resources) and job outcomes (job satisfaction and organizational commitment); and the mediating role of psychological contract fulfillment (transactional and relational), such that when job resources (job control and support) were high, the negative effects of high job demands on psychological contract fulfillment were attenuated. Theoretical and managerial implications are discussed.     

Explaining the Relation Between Job Insecurity and Employee Outcomes During Organizational Change: A Multiple Group Comparison

We develop and test a mediation model linking job insecurity to affective commitment and psychosomatic complaints via two distinct theoretical mechanisms: fairness and energy depletion. Analyses were based on 6,268 Belgian bank employees facing organizational change. Results from structural equation modeling showed that fairness and exhaustion partially mediated the association of job insecurity with affective commitment and psychosomatic complaints, respectively. Multiple group analysis showed that the relation between job insecurity and fairness gradually decreased across the three change stages, and that the exhaustion process was most prominent amid the change. Implications and directions for future research are discussed. © 2015 Wiley Periodicals, Inc.     

THE MICRO‐DYNAMICS OF CATCH‐UP IN INDONESIAN PAPER MANUFACTURING

In this study we analyze the micro‐dynamics of catch‐up in Indonesian paper manufacturing, using a two‐country plant‐level dataset for the period 1975–97. We apply data envelopment analysis (DEA) to measure to what extent Indonesian paper mills are catching up with Finnish mills in terms of technical efficiency. Three questions are addressed: What is the distribution of Indonesian plant technical efficiency vis‐à‐vis the technological frontier? What is the role of entry, exit, and survival in Indonesia for catch‐up in the paper industry as a whole? In what ways do catching‐up plants in Indonesia differ from non‐catching‐up plants? We find that on average the Indonesian paper industry moved closer to the technological frontier during the 1990s. However, catch‐up has been a highly localized process in which only a few large establishments have achieved near best‐practice performance, while most other plants have stayed behind.     

UPWARD STRUCTURAL MOBILITY,EXCHANGE MOBILITY,AND SUBGROUP CONSISTENT MOBILITY MEASUREMENT: U.S.–GERMAN MOBILITY RANKINGS REVISITED

We formalize the concept of upward structural mobility and use the framework of subgroup consistent mobility measurement to derive a relative and an absolute measure of mobility that is increasing in upward structural mobility and compatible with the notion of exchange mobility. In our empirical illustration, we contribute substantively to the ongoing debate about mobility rankings between the U.S. and Germany by demonstrating that the U.S. typically does exhibit more upward structural mobility than Germany.     

Adoption of organic farming: Are there differences between early and late adoption?

Based on the fact that not all farmers adopt a technology at the same time, it is argued in this paper that the distinction between groups is important because early, medium and late adopters respond differently to economic and non-economic factors when they consider whether to take up organic farming or not. The individual effects on adoption between the groups are identified by the use of multinomial logit analysis. The results provide evidence that there are significant differences in the characteristics between the adopter groups. The findings also reveal that the factors that affect adoption play a different role for early, medium and late adopters, particularly with regard to farming intensity, age, information gathering as well as attitudes of the farmer. More specifically, early adopters were the youngest to adopt organic farming and their decisions were found to be less profit related compared to other groups. Late adoption is constrained by risk considerations, while environmental attitudes and social learning were identified to be important determinants for all adopter groups. Overall, the findings strongly suggest, that for policy measures to be effective, the current state of diffusion has to be taken into account.     

National pro-poor spending programmes and their effect on income inequality and poverty: Evidence from Vietnam

This article examines the causal effects of the national (pro-poor) targeted programmes (NTPs) on both poverty incidence and inequality in Vietnam over the period 2002–2010. While the links between NTPs and poverty alleviation and income inequality have previously been analysed independently, this study is the first to offer a comprehensive analysis of NTPs expenditure on poverty and inequality simultaneously. Applying the system generalized method of moments estimator to a panel of Vietnamese regional data, we are unable to establish that NTPs have significantly mitigated poverty incidence. However, we estimate that NTPs have significantly increased inequality. We offer possible explanations why the NTPs have resulted in these unintended outcomes and discuss potential policies which can reduce both poverty and inequality.     

Experiential Learning in Economics

Real-life economic situations are simulated, and students are asked to perform decision-making roles. Economics is learned through “experience.”     

Pod learning: Student groups create podcasts to achieve economics learning goals

In this article, the authors examine two ways that they use music (i.e., popular song lyrics) as an active learning technique in an undergraduate history of economic thought course. First, they use music to help students grasp the ideas of the great thinkers in economics and see their relevance today. Second, because they require students to read original texts and write thesis-driven essays, they use music to teach essential skills related to such assignments. While the article focuses on how they use music as a pedagogical device to teach the history of economic thought, the use of music to teach essential skills could be applied to any economics course in which students engage in higher-level reading and writing.