Lagrangean conditions for consumers with nonrepresentable preferences

A Lagrangian characterization of the solutions of the consumer problem is provided when preferences are not representable by a continuous utility function.     

The Lindahl equilibrium in Schumpeterian growth models

The main motivation of the paper is to determine the social value of innovations in a standard scale-invariant Schumpeterian growth model, which explicitly introduces knowledge diffusion over a Salop (Bell J Econ 10(1):141–156 1979) circle. The social value of an innovation is defined as the optimal value of the knowledge inherent in this innovation. We thus have to price optimally knowledge. For that purpose, contrary to what is done in standard growth theory, we complete the markets using Lindahl prices for knowledge. The Lindahl equilibrium, which provides the system of prices that sustains the first-best social optimum in an economy with non rival goods, appears as a benchmark. First, its comparison with the standard Schumpeterian equilibrium à la Aghion and Howitt (Econometrica (60)2:323–351 1992) enables us to shed a new light on the issue of non-optimality of the latter. Second, the Lindahl equilibrium also allows us to revisit the issue of R&D incentives in presence of cumulative innovations. Finally, this benchmark may be a first step to understand how knowledge is exchanged in new technology sectors.     

Incidence,effects, dynamics and routes out of overqualification in Europe: a comprehensive analysis distinguishing by employment status

This study aims to improve our understanding of overqualification by incorporating distinctions in employment status (i.e. self-employed workers, private employees and public employees) in the analysis of the incidence, effects, dynamics and routes out of overqualification. To this end, we apply discrete choice – ordered and nonordered – and count models to the data obtained from the European Community Household Panel for the EU-15. Our results indicate that the incidence of overqualification varies by employment status, where self-employed workers report the lowest occurrence. Furthermore, this analysis suggests that overqualification is a permanent phenomenon and demonstrates that successful pathways out of overqualification differ by employment status. The implications of these results for education and labour market policies are also discussed.     

Business Ethics in The Philippines

The plurality of languages and ethnicities, the geographic fragmentation, the predominant Roman Catholic religion, together with the still relatively short experience in nationhood account for a very peculiar understanding of "business ethics" in the Philippines. The rapid growth and liberalization of the economy, coupled with the inequitable distribution of wealth, the destruction of the environment and corruption are the main ethical concerns. Businesspersons and the academe endeavor to find creative solutions for these unique challenges.     

The Dynamics of Productivity: A Decompostion Approach Using Distribution Functions

In this paper we use a micro panel data set of Spanish manufacturing firms to measure the contributions of continuing firms and turnover to total factor productivity growth over the period 1990–1997. The paper proposes an approach to the decomposition of productivity growth that is based on the estimation of productivity distributions. We characterize the dynamics of productivity distributions defining counterfactual distributions and using non-parametric methods. The results we obtain indicate that incumbent firms are the main factor contributing to the change in the productivity distribution. Net entry contributes positively to TFP growth. Finally, changes in the relative weights of incumbent, entering and exiting firms produce a counter-cyclical movement of productivity.     

Agricultural commodities pricing model applied to the Brazilian sugar market

This article suggests a pricing model for commodities used to produce biofuel. The model is based on the concept that the deterministic component of the Wiener process is not constant and depends on time and exogenous variables. The model, which incorporates theory of storage, the convenience yield and the seasonality of harvests, was applied in the Brazilian sugar market. After predictions were made with the Kalman filter, the model produced results that were statistically more accurate than those returned by the two‐factor model available in the literature.