Private Investment, Public Aid and Endogenous Divergence in the Evolution of Urban Neighborhoods

This paper offers a novel explanation for urban blight and endogenous divergence in the overall quality and wealth of neighborhoods and simultaneously derives the salient features of actual urban renewal and other aid programs from optimizing government behavior based on collective public preferences. These features appear when the objective of such public aid programs is to restore the ex ante distribution of wealth or property values within a blighted neighborhood, while equilibria exhibiting deficient levels of private investment and blight itself can arise when residents accurately anticipate the potential provision of public aid to an affected neighborhood and ex ante investment in private insurance diminishes neighborhood eligibility for such aid. Examples of antipodal equilibria in which urban renewal programs entirely crowd out local private investment or in which neighborhood residents invest in efficient levels of private mitigation illustrate these results, which stand in direct contrast to both traditional explanations of urban blight and to the new “social-interaction” models of neighborhood divergence.     

Dynamic monopoly production,inventory, and price policy under sophisticated demand

In this paper a dynamic demand surface arises out of a consumer intertemporal utility maximization problem. The monopolistic firm uses this dynamic demand surface to formulate its optimal price, production, and inventory policy.     

Teaching alternative income determination models via a classification matrix

Periodic income determination traditionally has been an important part of financial accounting theory courses. In this article, the authors present an approach for introducing and discussing alternative capital maintenance and net asset valuation concepts which determine periodic income. The authors believe that this approach provides students with the ability to view various accounting income theories in perspective and hence allows students to concentrate on the relative conceptual merits rather than the mechanics of the theories.     

A model of the firm in time and space

We consider a multi-plant monopoly that sells to markets which are geographically separated and which stores product over time via an inventory capability. It is assumed that plant average production cost is U-shaped and that, if the output of a plant's production run were sold to a single market at only one point in time, the plant would operate on the falling portion of its average cost curve. Hence, it is in the interest of the firm to aggregate markets, both spatially and temporally, to lower average production cost. We develop the optimal joint interplant spacing-inventory policy. We also consider the effects changes in freight costs, storage costs, and interest charges have on the firm's optimal policy.     

Networking and internationalization of SMEs in emerging economies

Networking has been established as an important source of small- to medium-sized enterprises (SMEs) business expansion in many developed economies. Often, it provides the necessary intelligence leading to internationalization. The question this study addresses is “What are the roles and sources of networking of SMEs internationalization in emerging economies?” This study responds to this query through a dyadic study involving expert-opinion survey of SME development professionals and case studies of SMEs internationalization. The convergent views identified three interconnected sources of networking for SMEs internationalization, which are government institutions, business associates, and personal relations. The results affirmed that accomplishment of internationalization requires cohesion among the myriads of networking sources and operating agencies. A systems approach towards supporting the creation and management of networking linkages for internationalization combines systems thinking perspective with institutional view. It emphasizes integration of coordination, facilitation, and monitoring functions. Thus, suggesting institutional support and systems thinking are important constructs in the theory of international entrepreneurship. Policy makers and entrepreneurs of SMEs gain actionable points to ensure effectiveness of institutional support mechanism and to enhance their business internationalization, respectively.     

The effects of industry growth and strategic breadth on new venture performance and strategy content

A sample of 123 independent new ventures was classified into four industry growthlstrategic breadth categories. High growth industry environments were found to provide a favorable environment for new ventures to achieve sales growth; however, the highest sales growth rates were exhibited by new ventures pursuing broad breadth strategies in high growth industries. One-way ANOVA and contrast tests were also used to identify whether specific strategic variables varied across the four industry growth/strategic breadth combinations. New ventures in high growth industries chose to enter on a larger, more aggressive scale and placed more emphasis on new product development than those entering low growth industries. Broad breadth strategy ventures had higher levels of advertising and promotion expenses and placed greater emphasis on the dominance of marketing expertise in their top management team, developing new channels of distribution, and on brand name recognition. Ventures pursuing focus strategies emphasized specialty products and were less cost conscious.