Economic progress and skill obsolescence with network effects

Summary. We construct an OLG model with network effects to examine skill obsolescence when individuals can choose technological vintages. In the absence of transfer payments, some regions of the parameter space have unique stationary equilibria, others have unique cyclical equilibria, and others have multiple stationary equilibria. All equilibria are Pareto efficient. However, rat race equilibria can exist in which all agents currently alive prefer a slower rate of progress than occurs in equilibrium. When contemporaneous transfers are allowed, equilibria are unique everywhere, but a cycle still exists, and a rat race can still arise in equilibrium. Allowing intertemporal transfers (debt) ensures that all equilibria are stationary. In the relevant parameter range, the introduction of debt can eliminate cycles and increase the long-run growth rate. No rat race equilibria exist when debt is allowed.Received: 3 January 2002, Revised: 3 June 2004, JEL Classification Numbers: 041, J24, O33. Correspondence to: Ian P. KingEarly versions of this paper were presented at the West Coast Macro Workshop, the Mid-West Macro Meetings, the Canadian Macroeconomics Study Group Meetings, and the Society for Economic Dynamics Meetings. We would like to thank V. V. Chari, Merwan Engineer, Don Ferguson, John Hillas, John Knowles, Dan Peled, Dan Usher, Linda Welling and Julian Wright for helpful comments. We are especially grateful to an anonymous referee for some very useful and substantive comments.     

Work and nonwork : Europe in the 1980s and beyond

Through an understanding of major trends in employment, unemployment and informal work and in patterns of life, possible alternative futures in work and nonwork may be identified. Communications and information technologies (IT) may themselves transform the recent transformations in work and nonwork, and already disadvantaged groups may further suffer unless fully involved in the policy processes relating to IT and its products.     

The FRC AND Accounting Standard‐Setting: Should I Still Call Australia Home?

This paper analyses the decision of the Financial Reporting Council (FRC) to replace Australian accounting standards with international accounting standards on 1 January, 2005. Two main topics are considered: the appropriateness of the FRC's directive, and the case against the proposed adoption date. We argue that the FRC has not conducted sufficient consultation with affected parties and that the hasty implementation will impose costs that could have been avoided with the exercise of more caution.     

A sensemaking perspective on network pictures

This paper examines the concept of network pictures through the lens of the organizational sensemaking perspective. Essentially it develops the concept of network pictures by suggesting we think of them as exercises in sensemaking. It does so by providing an introduction to organizational sensemaking before establishing a degree of commensurability between network pictures and sensemaking. It suggests that what we may then see more clearly is that the concept of network pictures needlessly gets involved in reification when talking of ‘the’ network picture whereas a more dynamic approach leads to ideas of network picturing in which the complete discrediting or collapse of extant sensemaking and network pictures provides a research opportunity that could be jointly explored by both perspectives. The paper concludes that paradoxically ‘finding’ this new sense or new network picture appropriate to radically changed times is facilitated by a process that involves first ‘becoming lost’.     

On the prediction of financial distress in developed and emerging markets: Does the choice of accounting and market information matter? A comparison of UK and Indian Firms

We examine differences in price delay for a sample of real estate investment trust (REIT) and non-REIT matched pairs. Results suggest an economically and statistically higher level of price delay for REIT securities, which implies heightened frictions that increase the time needed for new information to be impounded into the prices of REIT shares. The primary drivers for the observed delay differential include differences in idiosyncratic volatility, market risk, and the number of days traded. Within-REIT determinants of delay confirm findings for the pooled sample of matched pairs. Importantly, we infer find that REIT investors are not compensated for restricted information flow, as excess returns are unrelated to the price delay.     

Creative marketing and the art organisation: what can the artist offer?

The poem ‘My Paintings’, written in a deliberate, uncorrected dyslexic style offers an insight into the mind of a present day avant garde bad boy of British art, Billy Childish. Constantly challenging the art establishment through public demonstrations of distaste against the annual Turner Prize,[Button, V. (1999) ‘The Turner Prize’, Tate Gallery Publishing, London.] Childish and his cohorts launched an alternative, Stuck‐ist, art manifesto,[Alberge, D. (1999) ‘Rebels Get Stuck into the Brit Artists’, The Times, Thursday 26th August, p. 7.] in the belief that it would assist in a shift in public perception of what good art is, as well as influence the creative practice of those artists concerned with more traditional, authentic forms of art. Childish's ex‐girlfriend Tracey Emin, however, has had other ideas. She has revelled in mass media exposure and now dismisses the concept of traditional painting as a valid art from.[Brown, N. (1998) ‘Tracey Emin’, Art Data, UK.] These are two examples of contrasting creative, artistic behaviour. Their creativity has resulted in varying levels of commercial success. By examining the role that creativity plays in determining how the idea for a creative product is first identified, through to its commercial exploitation, there are valuable lessons contained in such a process for both profit‐oriented and nonprofit art organisations alike. Instead of constantly fighting the conflicting philosophies of art for art's sake versus art for business sake, following the market and consumer demand, there is a much more effective method for establishing longer‐term success, which mirrors the creative practice of the artist. The existing literature on arts marketing is examined. A critique of the usefulness of current thinking is presented, with the recommendation that the formal models of marketing offered in arts marketing literatures can only ever hope to offer general advice on marketing. What is called for is a much more in‐depth analysis of how creative entrepreneurial marketers as artists can offer alternative visualisations of more appropriate models of marketing for the industry. This in turn should result in the stimulation of creative research methodologies that can inform both theory and practice within arts marketing in particular, and the wider remit of marketing in general. The use of the metaphor and the examination of published biographies of creative individuals are used to construct a manifesto of marketing artistry. Copyright © 2002 Henry Stewart Publications     

Corporate Perceptions of the Business Case for Supplier Diversity: How Socially Responsible Purchasing can ‘Pay’

In exploring corporate perceptions of the business case for supplier diversity (SD), this paper reports on a cross-national study of large purchasing organisations (LPOs) that had introduced, or were in the process of introducing, purchasing initiatives aimed at ethnic minority businesses (EMBs). The research investigates how LPOs portray the benefits of this form of socially responsible purchasing and suggests a business case construct based on four component elements. It also highlights a number of contextual factors that appear to have shaped business case rationales. The paper concludes with a discussion of issues of cost and contingent influences affecting SD programmes and points to possible areas for future research.     

Business Leadership: Three Levels of Ethical Analysis

Research on the normative aspect of leadership is still a relatively new enterprise within the mainstream of leadership studies. In the past, most academic inquiry into leadership was grounded in a social scientific paradigm that largely ignored the ethical substance of leadership. However, perhaps because of a number of public and infamous cases of failure in business leadership, in recent years there has been renewed interest in the ethical side of leadership in business. This paper argues that ethical issues of leadership actually arise at number of different levels, and that it is important to distinguish between various diverse kinds of ethical issues that arise in the study of leadership. The three levels identified are the level of the individual morality of leaders, the level of the means of their leadership, and the level of the leadership mission itself. We argue that only by fully understanding all of the different levels of ethical analysis pertinent to business leadership, and the distinctive kind of issues that arise at each level, can we fully integrate normative studies of leadership into the field of leadership studies. As such, this paper offers a model that incorporates three different levels of ethical analysis that can be used to study normative issues in leadership studies. Such a model can be used to better understand and integrate ethical issues into research, teaching, and training in leadership.