Regional characteristics and the location of foreign firms within Poland

This article investigates the location determinants of firms with foreign capital participation within Poland using the regional data set from 1993 to 1998. It is found that the concentration of foreign economic activity is positively related to industry and service agglomeration and the road network and negatively to the unemployment rate. Traditional regional characteristics such as GDP, wage rate and education, often regarded as important location determinants, are not robust with respect to the specification of the estimating equation. The special economic zone variable is not found to be statistically significant in any specification estimated. Geographic location dummies confirm that foreign firms prefer Central and South–Western regions over Eastern parts of Poland having controlled for their characteristics.     

Incentive compatibility constraints and dynamic programming in continuous time

This paper is devoted to the study of infinite horizon continuous time optimal control problems with incentive compatibility constraints that arise in many economic problems, for instance in defining the second best Pareto optimum for the joint exploitation of a common resource, as in Benhabib and Radner [Benhabib, J., Radner, R., 1992. The joint exploitation of a productive asset: a game theoretic approach. Economic Theory, 2: 155–190]. An incentive compatibility constraint is a constraint on the continuation of the payoff function at every time. We prove that the dynamic programming principle holds, the value function is a viscosity solution of the associated Hamilton–Jacobi–Bellman (HJB) equation, and that it is the minimal supersolution satisfying certain boundary conditions. When the incentive compatibility constraint only depends on the present value of the state variable, we prove existence of optimal strategies, and we show that the problem is equivalent to a state constraints problem in an endogenous state region which depends on the data of the problem. Some economic examples are analyzed.     

The future of food demand: understanding differences in global economic models

Understanding the capacity of agricultural systems to feed the world population under climate change requires projecting future food demand. This article reviews demand modeling approaches from 10 global economic models participating in the Agricultural Model Intercomparison and Improvement Project (AgMIP). We compare food demand projections in 2050 for various regions and agricultural products under harmonized scenarios of socioeconomic development, climate change, and bioenergy expansion. In the reference scenario (SSP2), food demand increases by 59–98% between 2005 and 2050, slightly higher than the most recent FAO projection of 54% from 2005/2007. The range of results is large, in particular for animal calories (between 61% and 144%), caused by differences in demand systems specifications, and in income and price elasticities. The results are more sensitive to socioeconomic assumptions than to climate change or bioenergy scenarios. When considering a world with higher population and lower economic growth (SSP3), consumption per capita drops on average by 9% for crops and 18% for livestock. The maximum effect of climate change on calorie availability is ?6% at the global level, and the effect of biofuel production on calorie availability is even smaller.     

Characterising Japanese Direct Investment in Central and Eastern Europe: A Firm Level Investigation of Stylised Facts and Investment Characteristics

This article analyses the activities of Japanese investors in Central and Eastern Europe since the beginning of the region's transition. The use of firm level data on Japanese foreign direct investment (FDI) in the region allows us to focus on the industry, location and timing of affiliate establishment at a level of detail previously unexamined. This enables us to compare Japanese investment with overall regional inward investment as well as investigate country specialisation patterns within the region. We also characterise the type of investing parent, and determine how investments in CEE fit into the European-wide investment patterns for these firms. Finally, we investigate the entry mode choices of investing firms, finding a shift from minority-owned joint ventures and limited participation in the region in favour of wholly-owned subsidiaries and larger involvement in the region.     

The valuation of American options in a multidimensional exponential Lévy model

We consider the problem of valuation of American options written on dividend‐paying assets whose price dynamics follow a multidimensional exponential Lévy model. We carefully examine the relation between the option prices, related partial integro‐differential variational inequalities, and reflected backward stochastic differential equations. In particular, we prove regularity results for the value function and obtain the early exercise premium formula for a broad class of payoff functions.     

The EU attitude to unilateral euroization: Misunderstandings,real concerns and sub‐optimal admission criteria

European Union objections to unilateral euroization by applicant countries are categorized as either a misunderstanding of what euroization entails or as justified concern, which should be alleviated by candidates wishing to euroize. Some ways in which candidates can alleviate concerns are discussed, as well as possible adjustments to the Maastricht criteria which might better protect both sides' interests. The paper concludes that the EU would benefit if it accepted unilateral euroization by applicants. JEL classification: E42, F33, F42, P24.     

Computer-assisted constrained approval voting

Approval voting, proposed independently by several analysts in the 1970s, is a voting system in which voters can vote for as many candidates as they like in multicandidate elections. Recently, S.J. Brams modified this system, introducing so-called constrained approval voting. It is designed for a professional association to ensure equitable representation of different interests. In his new system approval voting is combined with the constraints on the number of persons that can be elected from different categories of members. In the present paper the problem of constrained approval voting is formulated (following the work of R.F. Potthoff) as an integer programming problem. Some computational aspects of this problem are discussed. The paper presents a numerical example illustrating a possibility to apply the discussed voting procedure in the election of members of the Committee for Organization and Management Sciences of the Polish Academy of Sciences.     

Is R&D always growth-enhancing? Empirical evidence from the EU countries

This study provides empirical evidence regarding the effects of R&D on economic growth in a panel of 28 European Union (EU) countries over the period 1997–2014. In particular, we investigate whether the impact of business and government R&D stocks on economic growth depends on the country’s distance to the world technology frontier. The main findings are that in the EU (i) there is positive, statistically significant business R&D stock–economic growth nexus in countries that are relatively close to the frontier and (ii) no statistically significant relationship was found to exist between government R&D stock and economic growth. From the policy perspective, the results suggest that designing proper national policies that allow switching from investment-based to innovation-based strategies at appropriate moments may be far more important than a simple call for increase in R&D expenditures and setting common numerical targets for all EU-member states.     

Product Involvement and the Relative Importance of Health Endorsements

Product involvement is a fundamental part of the buyer decision processes, during supermarket visits, as individuals respond differently to stimuli under differing involvement conditions. This study aims to provide a better understanding of the role of nutritional endorsements in consumers’ food purchasing decisions, when evaluated across high and low involvement products. Although past research in this area does exist, a major limitation is that nutritional endorsements have been studied only for their direct effect as a single, isolated product cue on product perception—rather than its importance relative to other product cues, such as price and product branding. This study overcomes this limitation through a conjoint analysis involving a sample of supermarket consumers. The findings suggest that a health endorsement plays a smaller role in influencing consumer decision-making relative to brand or price, but it is stronger for the higher involvement product. These findings provide nutritional foundations and product managers with quantifiable evidence of nutritional programs’ influence in consumer decision-making, justifying the relevance of such endorsements and giving nutritional foundations specific leads for adaptions in their marketing and educational efforts.     

Auctions with contingent payments — An overview

I survey a literature on auctions with contingent payments, that is auctions in which payments are allowed to depend on an ex-post verifiable variable, such as revenues in oil lease auctions. Based on DeMarzo et al. (2005), I describe a partial ranking of auction revenues for auctions that differ in terms of contract forms, pricing rules and seller commitment and why the revenue equivalence theorem does not apply even in an independent private values setup. I discuss models that incorporate adverse selection, moral hazard, competition between auctioneers, common values and the sale of multiple units.