Responses to COVID-19 in Southeast Asia: Diverse Paths and Ongoing Challenges

Due to geographical proximity and trade links with China, Southeast Asian countries were among the first to be exposed to and affected by COVID-19. However, despite shared challenges including protecting population health and economic security, policy responses by national governments have been varied and remain so a year into the pandemic. This article critically reviews Southeast Asian countries' approaches to COVID-19 with reference to individual country experiences and Association of Southeast Asian Nations. We discuss key policy responses: leadership, public risk communications, health system preparedness and resilience, economic support and social protection, aid and global health diplomacy, digital technologies, and the region's multilateral response.     

Options in technology investment games: The real world TFT-LCD industry case

The Thin Film Transistor-Liquid Crystal Display (TFT-LCD) industry has demonstrated that the investment of huge amounts of capital in new plants is a key factor for success. Decisions about investing in the latest generation of plant involve billions of dollars and a great deal of uncertainty. Moreover, the industry shows distinct oligopolistic characteristics, so the first mover's reactions must be considered when making capital decisions in such competitive environments. The traditional net present value (NPV) rule is a ‘now-or-never’ concept that fails to capture the need for managerial flexibility, which is especially important when investments are irreversible and involve a great deal of uncertainty. In this paper, we use a combination of real options and game theory to analyze the investment strategies of a case company in the TFT-LCD industry. The results show that real options reveal the value of flexibility, which NPV fails to consider. In addition, we apply game theory analysis to different investment strategies to demonstrate the decision-making processes used by competing companies.     

Hugging Trees: Claiming de Facto Property Rights by Blockading Resource Use

This paper explores conflicts between two groups,the industry and theenvironmentalists, over whether an indivisible resource (e.g., an ancient tree) should be harvested or preserved. In a complete information war ofattrition the environmentalists' willingness to blockade harvest attemptsmay control resource use as effectively as if they held property rights. Optimal government intervention will override this ability for somebenefit/cost combinations but may augment it for other combinations.Introducing uncertainty about the environmentalists' benefits results inextended disputes and consequent lack of efficiency. Governmentintervention for welfare reasons generally reduces these efficiencylosses.     

Local assimilation of an enterprise system: Situated learning by means of familiarity pockets

Once a new information system is introduced to the workplace, individuals confront it and struggle to make sense of it. Over time, it must be somehow learned and assimilated into everyday work practices. Enterprise systems, because they are complex and integrate work across functions and distance, pose special challenges to learning at the firm's periphery, where local users are distanced from both the centralized system and others elsewhere, and where a community of learning may be thin or lacking. The present study, using direct observations and interviews at a bank in which a new CRM system was introduced across small regional branch offices, explicates the local learning process. Findings suggest that in assimilating the system, bank representatives created familiarity pockets within which they routinely worked with it and outside of which they competently ignored it. Even within familiarity pockets, routine use of the system, while skilled, masked much that was not known by the bank reps. In short, in local assimilation of enterprise systems, knowing in practice may be constituted as much from what can be competently and routinely ignored by users, as from any deep knowledge of the system itself.     

Hurdle and Latent Class Approaches to Serial Non-Participation in Choice Models

In repeated choice modelling studies, it is often the case that individuals always select the status quo option. Although this pattern may reflect considered choices, they may also be the result of alternative decisions about whether to participate in the choice process at all. Alternative methods of dealing with this behaviour, each with associated implications for estimates of economic values, are presented. In particular we consider the alternative strategies of excluding such individuals from the data, using hurdle models to explicitly model this group, and propose the use of latent class models to endogenously allow for different preference structures. An advantage of the latent class approach is that the form of the non-participation need not be defined in advance. These approaches are considered using UK choice experiment data on food choices where the attributes include genetic modification of food. The latent class approach reveals the presence of two forms of non-participation in the data. This paper draws work commissioned by UK Department of Environment Food and Rural Affairs (DEFRA). The views presented in this paper are those of the authors alone and should not be regarded as those of DEFRA or of individuals within DEFRA.     

Reducing business complexity with toys

Education is an enabler of change, but it needs to be delivered in a manner that really increases individual talent, skills, and abilities to think "outside the box."     

Methodological choices in work-life balance research 1987 to 2006: a critical review

This study reviewed methodological choices (sampling frames, constructs investigated and measures used) in 245 empirical work-life balance papers published in a range of discipline-based peer-reviewed journals between 1987 and 2006. Results show that work-life balance studies need to establish greater consistency between the conceptualization of constructs and the operationalization of measures. There is also scope for well-designed field experiments to establish clear causal relationships between variables. Sampling choice in previous literature is somewhat constrained and may be enhanced by targeting single and same-sex parent families, manual and lower-skilled service workers, and employees providing eldercare. Researchers should also be more transparent in providing rationales for their choices of organizations or group lists used to target respondents. The findings have significant implications for understanding, interpreting, and utilizing the contemporary work and family literature.     

Technical efficiency and firm heterogeneity in stochastic frontier models: application to smallholder maize farms in Ethiopia

This study estimates the technical efficiency measures of maize producing farm households in Ethiopia using stochastic frontier (SF) panel models that take different approaches to model firm heterogeneity. The efficiency measures are found to vary depending on how the estimation model treats both unobserved and observed firm heterogeneity. Estimates from the ‘true’ random effects (TRE) models that treat firm effects as heterogeneity are found to be identical to those from pooled SF models. Those results differ from the ones generated from the basic random effects (RE) models that treat firm effects as part of overall technical inefficiency. The more flexible generalised ‘true’ random effects (GTRE) model that splits the error term into firm effects, persistent inefficiency, transient inefficiency, and a random noise component indicates the presence of higher levels of persistent inefficiency than transient inefficiency. The basic truncated-normal RE model and heteroscedastic RE model yields similar efficiency estimates. The GTRE model predict persistent efficiency measures similar to those from the basic RE and flexible RE model with environmental variables incorporated in the variance function as well as in the deterministic production frontier. These results imply that the RE and GTRE panel models provide reliable efficiency estimates for our data compared to the TRE models. All the estimated SF models generate comparable production function parameters in terms of magnitude and sign. Overall, the results underscore the importance of scrutinising stochastic frontier models for their reliability of analytical results before drawing policy inferences.

     

Professors and hamburgers: an international comparison of real academic salaries

In recent years, academic staff unions and associations have argued for higher salaries for academics on the grounds that existing salaries have not kept pace with inflation, are well below commercial salaries and, most glaringly, are much lower than the salaries of their overseas counterparts. However, most international comparisons are made based on exchange rate conversions, which is inappropriate since purchasing power differentials are only reflected in exchange rates in the long term. Furthermore, the volatility of exchange rates make such conversions highly inaccurate. A comparison is provided of real academic salaries by converting the nominal salaries in each country to their purchasing power equivalents, using the Big Mac Index. Our results show that real academic salaries are highest in Hong Kong and Singapore, relative to the developed countries, while Hong Kong tax and social security deductions are lowest. Furthermore, real salary levels, combined with intrinsic considerations such as the quality-of-life, indicate that Canada and New Zealand are unattractive places for visiting/migrating academics, while Australia and the USA are relatively attractive. It is suggested that these findings could be of use to policy-makers and academic unions in salary negotiations, as well as academics making relocation decisions.     

The “value” effect and the market for Chinese stocks

A long literature in empirical finance has isolated both a “value” and a small-capitalization effect in asset pricing. This study confirms the existence of these “style” effects both in new types of equity indexes and in the stocks of Chinese companies traded in international markets. We then present a new nonparametric method of portfolio construction that enables investors to extract the predictive power of these style effects, without diluting their efficacy through an unintended weighting distribution that closely resembles capitalization weighting. We then develop a simple method to isolate periods where style tilts are likely to be particularly effective.