The Gains from Trade and Policy Reform Revisited

The primary purpose of the paper is to provide characterizations of the conditions for welfare improvements in several situations that have received very little attention in the existing literature. The first aim is to exhibit the gains that can accrue to a country from the elimination of excess supplies as a result of a policy move from autarky to free trade. The second aim is to characterize the conditions under which the introduction of new goods into the economy will generate welfare gains. The third main area discussed is the extension of the authors’ methodology to a large open economy that can influence its terms of trade. The techniques used to illustrate the gains from eliminating excess supplies and from the introduction of new goods have a much wider applicability; they may be used to obtain and synthesize several welfare results from the literature.     

The compactification of generalized linear models

The main purpose of this paper is to unify and extend the existing theory of 'estimated zeroes' in log-linear and logit models. To this end it is shown that every generalized linear model (GLM) can be embedded in a larger model with a compact parameter space and a continuous likelihood (a 'CGLM'). Clearly in a CGLM the maximum likelihood estimate (MLE) always exists, easing a major data analysis problem. In the mean-value parametrization, the construction of the CGLM is remarkably simple; except in a rather pathological and rare case, the estimated expected values are always finite., In the β-parametrization however, the compactification is more complex; the MLE need not correspond with a finite β, as is well known for estimated zeros in log-linear models. The boundary distributions of CGLMs are classified in four categories: 'Inadmissible', 'degenerate', 'Chentsov', and 'constrained'. For a large class of GLMs, including all GLMs with canonical link functions and probit models, the MLE in the corresponding CGLM exists and is unique. Even stronger, the likelihood has no other local maxima. We give equivalent algebraic and geometric conditions (in the vein of Haberman (1974, 1977) and Albert and Anderson (1984) respectively), necessary for the existence of the MLE in the GLM corresponding to a finite β. For a large class of GLMs these conditions are also sufficient. Even for log-linear models this seams to be a new result.     

An antitrust analysis of non-profit hospital mergers

This paper considers such issues involved in non-profit hospital mergers as relevant product and geographic markets and the impacts of mergers on competition. The roles of non-price competition, entry barriers, and merger-generated efficiencies are considered. Close attention is given to the relevance of the Justice Department Merger guideline to the hospital industry. Through detailed examination of four litigated or challenged cases, the geographic market is shown to depend upon particular medical services. Outpatient services are found to comprise a separate market from inpatient hospital services, and non-profit status is determined to warrant the usual antitrust merger treatment.     

Export controls: Providing security in a volatile environment

Major changes in the world economy such as the demise of the Communist bloc, the increased foreign availability of high technology products, and the rapid dissemination of information and innovation, have resulted in a decrease in support for export controls by the policy and business communities. Nevertheless, export controls continue to constitute an important policy arrow in the quiver of national foreign policy instruments. The foundation of a new, multilateral export control regime is discussed, with major emphasis placed on the development of strong national security controls and the structuring of a foreign policy control system that can be brought to bear expeditiously without imposing an undue competitive burden on businesses. © 1995 John Wiley & Sons, Inc.     

Zur problematik der einkommensverteilung

Ohne Zusammenfassung     

Survey measures of first‐ and second‐order competences

Research summary : This study tests and validates survey measures of first‐ and second‐order competences in order to foster cumulative empirical research and theoretical refinement in the area of dynamic capabilities. Data from two informants and two time periods for a sample of publicly traded U.S. manufacturing firms are used to examine the convergent, discriminant, and nomological validity, and the reliability of scales to measure various levels and types of competences. Findings suggest that customer competence, technological competence, marketing competence, and R&D competence are related but distinct dimensions, evidencing strong validity and reliability. Qualifying this empirical support, it was found that items regarding manufacturing operations and facilities seemed to measure aspects unrelated to the focal competences, and that marketing competence had no relation to future market‐resource accumulation. Managerial summary : This study enhances understanding and measurement of dynamic capabilities, in particular, marketing and R&D second‐order competences. Marketing and R&D second‐order competences are a firm's ability to build new competences to serve new markets or use new technologies, respectively. The ability of a firm to add new market‐related resources (such as brands and distribution channels) and technological resources (such as patents and engineering skills) helps it cope with environmental change and grow in new directions. For firms in stable environments, being able to serve new markets and use new technologies provide opportunities for growth. For firms in turbulent environments, these skills are a matter of survival. Using data collected from publicly traded U.S. manufacturing firms, this study tests and validates questions that can be asked in questionnaires presented to management. It finds that even if a firm has strong skills in serving current customers and great technology, it may not be able to go after new markets or technologies. The survey questions tested here could be used not only by other researchers, but also by practitioners. Managers, management consultants, and industry association advisors could use the scales as diagnostic instruments or to perform benchmarking. Copyright © 2015 John Wiley & Sons, Ltd.