EMPLOYMENT PROTECTION AND THE NON‐LINEAR RELATIONSHIP BETWEEN THE WAGE‐PRODUCTIVITY GAP AND UNEMPLOYMENT

This paper studies the relationship between the wage‐productivity gap and the unemployment rate in OECD countries between 1985 and 2007. In particular, we investigate whether differences in the employment protection across countries affect the link between these two variables. We show that the elasticity of unemployment with respect to the wage‐productivity gap is non‐linear and that it switches from a positive to a negative value with stricter employment legislation. From a theoretical point of view, we argue that this result is related to a set of labor market reforms introduced in many OECD countries, which affected the relative strictness of institutions.     

Rules of origin and gains from trade

Free trade areas (FTAs) involve unharmonized tariffs and rules of origin that have prevented proving the formal general equilibrium existence of a welfare-enhancing FTA. This paper identifies the most restrictive limit that rules of origin can enforce and still continue to guarantee gains from trade for FTA formation. We note that many commonly used rules of origin exceed this condition in practice. We apply the identified welfare-supporting rules of origin and prove the existence of a FTA general equilibrium involving only within-FTA transfers that is at least as satisfactory for every consumer as an arbitrary original world trade allocation. The analysis also helps to explain why hub-and-spoke extensions of FTAs cannot be expected to guarantee gains from trade for all participants in general.     

Association of financial or professional conflict of interest to research outcomes on health risks or nutritional assessment studies of genetically modified products

Since the first commercial cultivation of genetically modified crops in 1994, the rapidly expanding market of genetically modified seeds has given rise to a multibillion dollar industry. This fast growth, fueled by high expectations towards this new commercial technology and shareholder trust in the involved industry, has provided strong incentives for further research and development of new genetically modified plant varieties. Considering, however, the high financial stakes involved, concerns are raised over the influence that conflicts of interest may place upon articles published in peer-reviewed journals that report on health risks or nutritional value of genetically modified food products. In a study involving 94 articles selected through objective criteria, it was found that the existence of either financial or professional conflict of interest was associated to study outcomes that cast genetically modified products in a favorable light (p = 0.005). While financial conflict of interest alone did not correlate with research results (p = 0.631), a strong association was found between author affiliation to industry (professional conflict of interest) and study outcome (p < 0.001). We discuss these results by comparing them to similar studies on conflicts of interest in other areas, such as biomedical sciences, and hypothesize on dynamics that may help explain such connections.     

Sri Lanka: Futures beyond conflict

Not so long ago, Sri Lanka was stereotypically portrayed as a stable, model democracy inhabited by friendly and fun-loving natives; a place in the sun reserved for enjoyment; an oasis in the so called (poverty and disease ridden) ‘Third World’; a virtual paradise for tourists and natives alike. In reality, Sri Lanka has seen the burgeoning of revolutionary struggles and nationalist fervour, from putschist attempts to capture state power to liberation and self-determination. The author argues that it is the model of parliamentary democracy that is largely responsible for the ethnic violence and bloodshed on this island. It ensured the rise of the post-colonial political élite who then ensured that all the hegemonic tendencies of colonialism were preserved and entrenched. It is imperative for shaping viable futures for Sri Lanka that a new ethics and moral code of good governance—which includes transparency in government and politics—is initiated.     

Bootstrap Methodology in Claim Reserving

In this article, we use the bootstrap technique to obtain prediction errors for different claim‐reserving methods, namely, the chain ladder technique and methods based on generalized linear models. We discuss several forms of performing the bootstrap and illustrate the different solutions using the data set from Taylor and Ashe (1983) , which has already been used by several authors.     

Public Good Mix in a Federation with Incomplete Information

We analyze a model of resource allocation in a federal system in which the center transfers real resources between member states. The center is assumed to be unable to observe the precise value of the cost differences across jurisdictions that motivate the transfers. Moreover, the center cannot observe the output levels of the individual local public goods provided by the jurisdictions, but must condition its transfers on a coarse aggregate of expenditures on public goods. We find that when the jurisdiction with private information realizes a high unit cost, it is generally worthwhile for the center to allow it a level of expenditure on public goods that differs from the "first best" level. However, whether that level is higher or lower than its first best level depends on the magnitudes of demand parameters for the local public good.     

Market priorities, manufacturing configuration, and business performance: an empirical analysis of the order-winners framework

This study carries out an empirical test of the order-winners framework in manufacturing organizations. Hill [Hill, T., 1985. Manufacturing Strategy: The Strategic Management of the Manufacturing Function, first ed. Macmillan, Basingstoke; Hill, T., 2000. Manufacturing Strategy: Text and Cases, second ed. Palgrave, Basingstoke] proposed the order-winners framework to help managers to improve understanding about markets and to develop a consistent manufacturing strategy. The framework defines ideal profiles of products and markets, and manufacturing and investment decisions that relate to alternative process choices. The study tests the hypothesis of a negative relationship between misfit to an ideal profile defined in the framework and business performance in domestic market share, return on sales, and return on investment in a survey of 183 manufacturers from 17 countries. Results found a significant negative relationship between misfit and domestic market share. The study contributes to operations management research by developing a methodology to measure fit as profile deviation in the context of manufacturing, and applying this methodology to the order-winners framework.     

Brand Personality of Global Quick-Service Restaurants in Emerging and Developed Markets: A Comparative Study in Brazil and the U.S.

This study aimed to determine the dimensions of the personality of global quick-service restaurant brands perceived by young consumers in the U.S. and Brazil, and whether these dimensions showed similar configurations in both countries. A survey was carried out with two QSR brands (McDonald's and Subway). Data analysis utilized exploratory and confirmatory factor analysis. The study identified five personality dimensions for each of the brands studied in each country. Results support the proposition that global brands can carry a common meaning across nations, but also that certain local nuances of brand personalities can differ.