Rhetorics of saving–investment correlations and the international mobility of capital: A survey

This study surveys the literature on saving–investment (SI) correlations and international mobility of capital (IMC) generated over more than three decades since the 1980s. Several studies have shown the presence of paradoxically high SI correlations for the developed countries with observed high IMC, and low SI correlations for the developing countries with observed low IMC. The studies accounting for structural breaks in model parameters provide dominant support for the decrease in SI correlations and increase in IMC after the switch from fixed to flexible exchange rate regime and the removal of policy restrictions on capital flows. The intertemporal optimisation approach to current account and the open-economy growth and dynamic stochastic general equilibrium models mainly provide theoretical predictions and suggest that it is possible to find high SI correlations in the wake of high IMC. The increases in international capital flows have been the natural corollary of the growth of international trade in goods and services and increases in foreign direct investment flows. It is these factors, rather than international trade in capital market securities (bonds and equities) driven by the diversification benefits of financial portfolios per se, that have been the key levers of international financial flows.     

Devising an electronically supported heritage conservation method for the Valley of Flowers in the Indian Himalayas

The Valley of Flowers is a national park in the Himalayan state of Uttarakhand in India that was classified as a world natural heritage site in 1988. Around 1982, its maximum carrying capacity was fixed at 60 persons per day, which has been called excessive by experts and observers, given the extremely fragile and immensely valuable nature of the Valley's heritage. This, in monetary terms, can be put at millions of dollars, and is considerably more viewed in terms of knowledge of breeding medicinal plants in cold climates that are being affected by climate change, which its microclimate and ecology present. Given the state's poor resources and the fact that tourism is one of the most important industries for development and conservation, this research assesses the heritage value of the Valley and develops a programme for conservation, including a computerised program for permits, whose value can easily be raised from the current paltry Rs 150 per person. Accompanied by fallow periods and marketing through the Internet to aim for educated tourists, the program ensures that the maximum carrying capacity of the Valley is never exceeded, thus spreading out the number of tourists over its 3.5-month season, while allowing flexibility in booking for chance groups and small families that can pay more.     

Supplements and Complements to the Current Employee Representation System in the United States

Employee representation is an important aspect of the employment relationship. In some countries (e.g., Germany), the government mandates employee representation. In other countries (e.g., the Commonwealth), employers voluntarily recognize employee representatives. In the United States, employees must earn their right to be represented in a certification process that results in collective bargaining. With the significant reduction of union membership in the United States, this representation model is in decline. Other forms of participation have not picked up the slack. Hence, there remains a significant representation gap. In this paper, I describe and analyze several solutions to the representation gap. Both unorganized and organized forms of employee representation are considered.     

A true simulation study of three estimators at equal protection of respondents in randomized response sampling

In this study, three different estimators for estimating the proportion of a sensitive attribute in survey sampling are compared at equal protection of the respondents. The three estimators considered are due to Odumade and Singh (2009, Comm. Statist. Theory Methods) , Singh and Sedory (2011, Sociological Methods and Research) and a new estimator obtained by minimizing a chi‐squared distance. A SAS Macro is developed to compare these three estimators using a simulation study at equal protection of the respondents. A set of data from a real face‐to‐face interview was collected using two decks of cards and has been analyzed. The results are discussed.     

Using the social system of a supply chain to improve a focal organization’s operating performance

In this paper, we explore how a large organization, operating in a mature, asset-intensive industry, used the social system of a key supply chain to generate significant improvement in operating performance (e.g., inventory turnover ratio improved from 0.8 to 3.2 in 5?years). A case study approach was used to study a steel rail supply chain involving an Australian railway company as the focal company. This supply chain consisted of two other companies: a steel manufacturer and a bulk transporter. Multiple forms of data were collected and analyzed, including models and process maps of the supply chain, published and internal documents, Enterprise Resource Planning system reports, and in-depth interviews of 31 key personnel involved in the supply chain. We found that the organizations had invested heavily in formal systems, such as governance processes and information technology systems. However, it was the informal mechanisms across and within the social system which made the greatest contribution to the resulting improvements. This suggests that organizations may be able to achieve significant operating performance outcomes at far lower cost and in shorter time frames by working through the existing social systems instead of focusing excessively on formal governance and IT systems.     

Diversity in organizations: Where are we now and where are we going?

A great deal of research has focused on workforce diversity. Despite an increasing number of studies, few consistent conclusions have yet to be reached about the antecedents and outcomes of diversity. Likewise, research on different dimensions of diversity (e.g., age, race, gender, sexual orientation, disability, and culture) has mostly evolved independently. Therefore, the purpose of this review is to examine each of these dimensions of diversity to describe common themes across dimensions and to develop an integrative model of diversity.     

Welfare Policy: Cash Versus Kind,Self-Selection and Notches

This paper investigates second-best allocations where the government lacks full information about consumer types, and how such allocations may be implemented through notch schemes. Thus, we provide another rationale for notches in addition to that investigated by Blinder and Rosen (1985). We use a model of Blackorby and Donaldson (1988), extending their results to more general preferences and to more general tax-subsidy instruments (piecewise linear, rather than linear). We argue that observed policies are sometimes of this nature: In-kind subsidies that are available only if consumption equals or exceeds a particular amount have been used in practice, in housing, and medical care.     

Politics, Insurance Regulation, and Unfunded Pension Liabilities

ABSTRACT: Insurance regulators operate in an environment in which resources are scarce and issues are most often complex and not salient to affected persons. Consequently, regulatory agencies, such as the Pension Benefit Guaranty Corporation (PBGC), need to use resources efficiently by making issues salient and not complex if regulatory goals are to be attained. To further its goal of full funding of defined benefit pension plans, the PBGC annually published a list of the Top Fifty Companies With the Largest Underfunded Pension Liability (LIST). This article investigates the issue of the economic effects of pension plan disclosure by measuring the share price response of the companies included on the LIST; then policy implications are drawn. The event study findings show that, on average, publication of the LIST did not have a negative effect on firm value. However, cross-sectional analysis provides some support for the contention that publication of the LIST had an economic cost on LISTed firms. The authors' results show that the value of large firms on the PBGC's list is less negatively affected at arrival (ARRIVAL) than smaller LISTed firms. Conversely, when firms leave the list (DEPARTURE), the value of large growth-oriented firms is more negatively affected than the value of other firms that reduce their unfunded pension liability. From a policy perspective, as hypothesized by Meier (1991), the PBGC used its scarce resources effectively by publishing the LIST. The issue of unfunded pension liability became less complex and more salient to interested parties. Consequently, consumer groups and political elites provided their support to further the regulatory agency's stated goal, which was the full funding of defined benefit pension plans. Furthermore, increased awareness of the underfunding problem contributed to the passage of the Retirement Protection Act of 1994.