Redistribution and entrepreneurship with Schumpeterian growth

We examine the effects of redistributive taxation on growth and inequality in a Schumpeterian model with risk-averse agents. There are skilled and unskilled workers, and the growth rate is determined by the occupational choice of skilled agents between entrepreneurship and employment. We show that redistribution provides insurance to entrepreneurs and increases the growth rate. The effects on inequality are such that low tax rates increase inequality relative to laissez-faire due to changes in wages, but higher tax rates can simultaneously raise growth and reduce inequality. We contrast the optimal linear income tax with alternative policies for promoting R&D and find that it is preferable on both equity and efficiency grounds.      

A systemic comparative assessment of the multifunctional performance of alternative olive systems in Spain within an AHP-extended framework

The concept of sustainable agriculture is strongly related to the multifunctional role, either explicitly or implicitly, recognized to the primary sector. When assessing the performance and value to society of particular agricultural systems, the multifunctional nature of agriculture requires an approach based on multicriteria. Amongst others, these include economic, environmental, social, cultural and technical criteria. Like other complex multicriteria analyses, this evaluation of agricultural systems is characterized by the existence of not only many, but often conflicting criteria, multiple stakeholders and decision-makers who have competing interests, lack of information and a consideration of the high risks involved.The Analytic Hierarchy Process (AHP) is a methodology that deals with problems of this sort in a relatively easy, flexible and economical manner. Therefore it is a potentially useful tool for the practical resolution of complex problems, often an object of Ecological Economics. One such problem is the analysis of the sustainability of economic activities.This article has three aims. The first is to present AHP as a powerful methodology for assessing multifunctional performances of different agricultural systems in a comparative way. AHP can also be applied to other multifunctional economic activities. The second aim is to propose an extension of AHP for improving the decision-making processes when different groups of decision agents are involved. A final aim is to illustrate the AHP-extended methodology in a particular case study. This is done by using it to compare the multifunctional performance of alternative olive growing systems in Andalusia, a region located in the south of Spain, on the basis of the assessments of different groups of experts. This tests the hypothetically greater sustainability of organic and integrated farming over conventional farming systems in the medium/long term under average conditions for this region. Results for this case study show a greater global performance of organic and integrated agriculture despite differences in the ideological tendencies of the experts, thus providing a scientific basis for endorsing institutional and social support for the promotion and implementation of these farming techniques. Some conflictive issues, however, have been detected, especially in areas related to environmental performance. Further research on the controversial topics is desirable for clarification.     

Weighted approval voting

To allow society to treat unequal alternatives distinctly we propose a natural extension of Approval Voting by relaxing the assumption of neutrality. According to this extension, every alternative receives ex-ante a strictly positive and finite weight. These weights may differ across alternatives. Given the voting decisions of every individual (individuals are allowed to vote for, or approve of, as many alternatives as they wish to), society elects the alternative for which the product of total number of votes times exogenous weight is maximal. If the product is maximal for more than one alternative, a pre-specified tie-breaking rule is applied. Our main result is an axiomatic characterization of this family of voting procedures.      

The use of discounted least squares in technological forecasting

The use of growth curves in technological forecasting usually employs an equal weighting of all data points in the time series. This paper considers the benefits of weighting recent information more heavily through the utilization of discounted least squares. The method is used to model the growth of the percentage of households with CATV; discounting gives better results for short-term forecasting.     

Pricing of Defaultable Bonds with Log-Normal Spread: Development of the Model and an Application to Argentinean and Brazilian Bonds During the Argentine Crisis

In this paper we describe a two-factor model for a defaultable discount bond, assuming log-normal dynamics with bounded volatility for the instantaneous short rate spread. Under some simplified hypothesis, we obtain an explicit barrier-type solution for zero recovery and constant recovery. We also present a numerical application for Argentinean and Brazilian Sovereign Bonds during the default crisis of Argentina.JEL Classification: G 13     

Strong maximals: Elements with maximal score in partial orders

It is usually assumed that maximal elements are the best option for an agent. But there are situations in which we can observe that maximal elements are different one from another. This is the case of partial orders, in which one maximal element can be strictly preferred to almost every other element, whereas another maximal is not strictly preferred to any element. As partial orders are an important tool for modelling human behavior, it is interesting to find, for this kind of binary relation, those maximal elements that could be considered the best ones. In so doing, we define a selection inside the maximal set, which we call strong maximals (elements with maximal score), which is proved to be appropriate for choosing among maximals in a partial order.JEL Classification: D11Acknowledgments: Financial support from the Spanish DGICYT-Feder, under project BEC2001-0781, from Fundación Séneca (PI74/00826/FS/01), Generalitat Valenciana (CTDIB2002/314) and from the IVIE, is acknowledged. The comments of the referees improved the work. We thank M. C. Sánchez and J. V. Llinares for several comments and suggestions.     

Encouraging organizational performance through the influence of technological distinctive competencies on components of corporate entrepreneurship

Firms’ technological distinctive competencies (TDCs) help CEOs to confront their reality based on technological knowledge to achieve and exploit competitive advantage by encouraging the different dimensions of corporate entrepreneurship (innovation, new business venturing, proactiveness and self-renewal). The main purpose of this paper is thus to highlight how companies that strive to improve technological competencies within the firm achieve higher organizational performance through different components of corporate entrepreneurship and their interrelationships. This study seeks to fill this research gap by analyzing theoretically and empirically how TDCs enhance innovation, new business venturing and proactiveness and their interrelationships to achieve self-renewal and thus improve firms’ organizational performance. The methodology used is LISREL analysis. We test the model with data from 201 Spanish organizations. Our research contributes theoretical and empirical arguments on the value of TDCs to the organization, arguments that are especially important because organizations sometimes fail to achieve sustainable competitive advantage due to their limited understanding of the relationships between these strategic variables.     

Are new work practices applied together with ICT and AMT?

The goal of this paper is to analyze the association between Information and Communication Technologies (ICT) and Advanced Manufacturing Technologies (AMT) and the adoption of a number of new work practices, such as job autonomy, teamwork, job breadth, suggestion systems and involvement groups. Special attention is paid to examining whether the strength of the association with new work practices is the same for the two technologies. The data used in the empirical part of the research come from a survey conducted in 281 Spanish manufacturing plants. The results show that ICT use among production workers is only positively related to higher coverage of involvement groups. On the other hand, AMT use is positively associated with the incidence of self-managed teams, job autonomy and suggestion systems. We have found differences between ICT and AMT in the strength of association with new work practices for self-managed teams and suggestion systems.     

Quota Bonuses as Localized Sales Bonuses

In this article, we compare quota bonuses to profit‐based evaluation and sales (quantity) bonuses in a duopoly setting with independent demand shocks. Contrary to the previous findings, we find that under certain circumstances, either quota bonuses or sales bonuses may be optimal compensation plans. This may explain the coexistence of different bonus schemes in situations where the strategic aspect of the incentive problems is relevant. Copyright © 2017 John Wiley & Sons, Ltd.