From production to sustainability: Considering the whole household

The recent focus on sustainability as guiding principle for economic activity has generated many, and often conflicting, definitions of sustainable economic development. Yet while the terminology may be new, the discussion is not. Rather it parallels the discussion about biases of economic measurement and valuation concepts which have led to the neglect of the domestic and subsistence contribution of female householdership relegated to the informal sector. This paper argues that the selective focus of economics on narrowly defined productive functions has led to the detrimental neglect of sustaining functions without which production itself would be impaired. Informed by feminist theory, three principles are identified which are essential to the conceptual framework of a sustainable production theory. They are: concretion rather than abstraction, connectedness rather than isolation, and diversity rather than homogeneity. Without deterring from the importance of gender (especially in economics), the discussion of these principles of a sustaining orientation of economics is viewed in a broader context of mind-sets. It is argued that to reframe the relationship between production and sustainability as compatible rather than adversarial requires a broadening of theory, inquiry, and methodology. The voices of women who have gone largely unheard in economics are essential in this refraining process.

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Zusammenfassung Von der Produktion zur Nachhaltigkeit: Die Betrachtung des Haushalts als Ganzes. Die neuere Betonung der Nachhaltigkeit als Leitprinzip für ökonomisches Handeln hat zu vielen — manchmal uneinheitlichen — Definitionen der nachhaltigen wirtschaftlichen Entwicklung geführt. Neu ist bei dieser Diskussion nur die terminologische Seite, die inhaltliche ist es nicht. Vielmehr gleicht sie der Diskussion über unzulÄngliche Konzepte zur ökonomischen Messung und Bewertung, die zu einer VernachlÄssigung des dem informellen Sektor zugeordneten Unterhaltsbeitrages der überwiegend weiblichen haushÄlterischen TÄtigkeit geführt hat. Der vorliegende Beitrag will zeigen, da\ die einseitige Betonung eng definierter produktiver Funktionen durch das ökonomische Denken zu einer schÄdlichen VernachlÄssigung der Unterhaltsfunktionen geführt hat, ohne die die Produktion sehr beeintrÄchtigt wÄre. Ausgehend von feministischer Theorie werden drei Prinzipien identifiziert, die für eine Theorie nachhaltiger Produktion wichtig sind: Konkretisierung statt Abstraktion, Verbundenheit statt Isolation und Verschiedenheit statt Einheitlichkeit. Wenn Produktion und Nachhaltigkeit in neuer Sichtweise nicht mehr nur als gegensÄtzlich, sondern als miteinander vereinbar gesehen werden sollen, so ist dafür eine Ausweitung der Fragestellungen der Theorie und der Methodologie notwendig. Die Stimmen der in der ökonomik weitgehend ungehörten Frauen sind für diese neue Sichtweise sehr wichtig.

     

International migration versus foreign investment in the presence of unemployment

"This paper extends the standard (two-factor, one-good) model of international factor movements, to include unemployment due to a minimum-income guarantee within the capital-abundant country. From this country's perspective, we establish important departures from previous (full-employment) results. Most notably, our analysis shows that: (1) free factor mobility is worse than no mobility; (2) the optimal degree of labour migration is zero; and (3) national welfare can always be maximized by an optimal flow of capital. The analysis is then extended to examine: (1) illegal migration; (2) subsidization of employment; and (3) alternative views of unemployment."     

Modeling how institutional investors allocate business to brokers

A model of how institutional investors evaluate and allocate business to brokers shows a complex pattern of influences. The broker's ability to execute transactions at appropriate prices is basic, but this combines with research and sales force performance to build a relationship that affects over-time allocation of business. It is difficult to separate relationship and selling performance, and relationship is subject to considerable decay. Research ability has a weak effect on business allocated on the basis of trading, while trading ability does affect business allocated on the basis of research.     

International Marketing Ethics from an Islamic Perspective: A Value-Maximization Approach

International marketing practices, embedded in a strong ethical doctrine, can play a vital role in raising the standards of business conduct worldwide, while in no way compromising the quality of services or products offered to customers, or surrendering the profit margins of businesses. Adherence to such ethical practices can help to elevate the standards of behavior and thus of living, of traders and consumers alike. Against this background, this paper endeavors to identify the salient features of the Islamic framework of International Marketing Ethics. In particular, it highlights the capabilities and strengths of this framework in creating and sustaining a strong ethical international marketing culture. At the heart of Islamic marketing is the principle of value-maximization based on equity and justice (constituting just dealing and fair play) for the wider welfare of the society. Selected key international marketing issues are examined from an Islamic perspective which, it is argued, if adhered to, can help to create a value-loaded global ethical marketing framework for MNCs in general, and establish harmony and meaningful cooperation between international marketers and Muslim target markets in particular.     

Marketing Metrics Use in a Transition Economy: The Case of Vietnam

ABSTRACT

This article explores the use of marketing metrics by a sample of Vietnamese firms, providing an example of the use of marketing metrics in a “transition” economy as it grows and becomes more market and marketing driven. The analysis reports usage frequency and then develops a set of “correlation chains” linking firm characteristics, metric use, and various indicators of performance. Vietnamese managers generally report that several types of metrics are used. Ownership structure and industry also impact which metrics are utilized. An initial assessment of chains relating metric use to firm performance indicates that the impact is complex and indirect.     

Utility Functions

Abstract

This article is a self-contained survey of utility functions and some of their applications. Throughout the paper the theory is illustrated by three examples: exponential utility functions, power utility functions of the first kind (such as quadratic utility functions), and power utility functions of the second kind (such as the logarithmic utility function). The postulate of equivalent expected utility can be used to replace a random gain by a fixed amount and to determine a fair premium for claims to be insured, even if the insurer’s wealth without the new contract is a random variable itself. Then n companies (or economic agents) with random wealth are considered. They are interested in exchanging wealth to improve their expected utility. The family of Pareto optimal risk exchanges is characterized by the theorem of Borch. Two specific solutions are proposed. The first, believed to be new, is based on the synergy potential; this is the largest amount that can be withdrawn from the system without hurting any company in terms of expected utility. The second is the economic equilibrium originally proposed by Borch. As by-products, the option-pricing formula of Black-Scholes can be derived and the Esscher method of option pricing can be explained.