The Environmental Outcome of Emissions-intensive Economic Growth: A Critical Look at Official Growth Projections for Sweden up to the Year 2000

Implications for carbon dioxide, sulphur dioxide and nitrogen oxides emissions from the Swedish government's medium-term economic projections are assessed, considering Sweden's environmental goals. Data from the first environmental accounting matrix of Sweden are exploited within the framework of the interindustry model to give emission multipliers for various components of aggregate demand. In view of these emission multipliers, it is evident that the outlined macro-economic development does not conform with Sweden's environmental goals. The oil price and the structural changes assumed in the economic projections stress still further the need for strong environmental policy measures to attain the emission goals. The allocation of total expenditure is shown here to be a critical factor for bringing down the emissions to accepted levels.     

Portfolio optimization based on GARCH-EVT-Copula forecasting models

This study uses GARCH-EVT-copula and ARMA-GARCH-EVT-copula models to perform out-of-sample forecasts and simulate one-day-ahead returns for ten stock indexes. We construct optimal portfolios based on the global minimum variance (GMV), minimum conditional value-at-risk (Min-CVaR) and certainty equivalence tangency (CET) criteria, and model the dependence structure between stock market returns by employing elliptical (Student-$t$ and Gaussian) and Archimedean (Clayton, Frank and Gumbel) copulas. We analyze the performances of 288 risk modeling portfolio strategies using out-of-sample back-testing. Our main finding is that the CET portfolio, based on ARMA-GARCH-EVT-copula forecasts, outperforms the benchmark portfolio based on historical returns. The regression analyses show that GARCH-EVT forecasting models, which use Gaussian or Student-$t$ copulas, are best at reducing the portfolio risk.     

Leverage Dynamics and the Burden of Debt

In addition to leverage, the debt service burden of households and firms is an important link between financial and real developments at the aggregate level. Using US data from 1985 to 2017, we find that the debt service burden has sizeable negative effects on expenditure. Its interplay with leverage also explains several data puzzles, including the lack of above-trend output growth during credit booms and the severity of ensuing recessions, without appealing to large shocks or nonlinearities. Estimating the model with data up to 2005, it predicts credit and expenditure paths that closely match actual developments before and during the Great Recession.     

Budget deficits,money growth and inflation: the Turkish evidence

The paper investigates the long-run relationships between budget deficits, inflation and monetary growth in Turkey considering two alternative trivariate systems corresponding to the narrowest and the broadest monetary aggregates. While the joint endogeneity of money and inflation rejects the validity of the monetarist view, lack of a direct relationship between inflation and budget deficits makes the pure fiscal theory explanations illegitimate for the Turkish case. Consistent with the policy regime of financing domestic debt through the commercial banking system, budget deficits lead to a growth not of currency seigniorage but of broad money in Turkey. This mode of deficit financing, leading to the creation of near money and restricting the scope for an effective monetary policy, may not be sustainable, as the government securities/broad money ratio cannot grow without limit.     

The stability of the Turkish Phillips curve and alternative regime shifting models

This article, presents empirical evidence supporting instability of the Phillips curve in Turkey. We employ the multiple structural break models and the Markov-switching models and then evaluate the performance of the two models. The data pertain to the monthly inflation rate in Turkey for the period of 1987 to 2004. The results show that the Turkish Phillips curve is not linear. There exists no evidence on the asymmetry in the inflation response to output gap. The persistence of inflation is found to be much lower than in linear models. After 2001, slight decline in persistence of inflation is observed. There exits weaker support for the Phillips curve for the periods where the policymakers attempt to take the advantage of the tradeoff between output and inflation relationship.     

Inflation targeting in an import dependent indebted economy

This paper develops a one-sector Kaleckian model of an import dependent indebted small open economy; where the mark-up rate is sensitive to both changes in the interest rate and the exchange rate and foreigners provide part of the long-term finance. The short-run consequences of an inflation targeting policy in the form of high interest rates and strong domestic currency are explored. Among the possible short-run scenarios, the one most relevant for developing countries involves a decline in the profit rate, the capacity utilization rate and the rate of accumulation as well as the employment rate and the real wage. Leverage ratio of the firms and the extent of external indebtedness play an important role in bringing about this result. Long-run analysis reveals that this scenario is associated with instability in the long run and that, also in the long run, the extent of foreign indebtedness and the responsiveness of capital inflows to the return on existing portfolios are important in determining the direction of the effects of inflation targeting on the equilibrium debt–capital ratio.     

Capitalism and democracy at a crossroads: the civilizational dimension

This paper evaluates Schumpeter's grand vision as reflected in his Capitalism, Socialism and Democracy, and elaborates it in conjunction with the so-called “globalization” trends characteristic of the wake of the twenty-first century. In addition to the evolutionary nature of his methodology, the institutionalist dimension of Schumpeter's definitions are brought to light. A case is made for a fundamental process of “uncreative destruction” as far as the institutional setup of the economy is concerned. The contention of this paper is that there is ample support in Schumpeterian analysis for a counterpoint to the liberal thesis that envisages the worldwide spread of individualism, market economies, and democratic forms of government.     

The Cultural Dimension of Technology Management: Lessons from the History of the Automobile

This article criticizes traditional innovation strategies for focusing too one-sidedly on technological matters. By applying the concept of 'cultural ambience', the authors attempt to show that new technologies stand a larger chance of being introduced on a large scale if, on the one hand, they can be made to fit into existing organizational networks and legal structures and, on the other hand, they are compatible with firmly established routines and perceptions. Regardless of the degree of novelty aimed at, engineers and managers have to pay attention to non-technical factors. Technology management is always cultural management. The thesis of the article is supported by brief narrative analyses of four so-called alternative automobile projects: the NSU rotary-engine car, GM's EV1, a Norwegian electric vehicle and the recently launched Smart car.     

Business Ethics Research with an Accounting Focus: A Bibliometric Analysis from 1988 to 2007

This article uses bibliometric analysis to empirically examine research on business ethics published in a broad set of journals, focused over the period 1988–2007. We consider those journals with an emphasis on accounting. First, we determine the citation frequencies of documents to identify the core articles in accounting research with an ethics focus as well as the contributions of influential fields included in the research sphere of these journals. We also employ document co-citation analysis to analyze the scholarly communication patterns that exist within the realm of the specified articles. Second, we utilize social network analysis tools to profile the centrality features of the co-citation network of these documents.     

A relational framework for international transfer of diversity management practices

The aim of this paper is to propose that a relational framework, which is underpinned by a contextual and multilevel conceptualisation of diversity management, can help international transfer of diversity management policies and practices. We argue that the mainstream single-level conceptualisations of diversity management within the territory of legal or organisational policy fail to capture the relational interplay of structural- and agentic-level concerns of equality. Consequently, individual choices, organisational processes, and structural conditions – all of which collectively account for unrelenting power disparity and disadvantage within social and employment contexts – remain generally under explored. The paper proposes a relational framework that bridges the divide between macro-national, meso-organisational and micro-individual levels of analyses to arrive at a more comprehensive, realistic and context-specific framing of diversity management, which can overcome the difficulties of international transfer.