Adjustment Costs,Inventories and Output

This paper analyzes the optimal adjustment strategy of an inventory‐holding firm facing price‐ and quantity‐adjustment costs in an inflationary environment. The model nests both the original menu‐cost model that allows production to be costlessly adjusted, and the later model that includes price‐ and quantity‐adjustment costs, but rules out inventory holdings. It is shown that the firm's optimal adjustment strategy may involve stockouts. At low inflation rates, output is inversely related to the inflation rate, and the length of time demand is satisfied increases with the demand elasticity but decreases with the storage cost and the real interest rate.     

Small firms,business dynamics and differential development of economic well-being

In recent years a growing stream of research has examined the relationships between structural characteristics of regions and their levels of new firm formation. This empirical study aims at supplementing such findings with analyses that include other forms of business dynamics, and also the possible well-being effects of such dynamics. From a unique and comprehensive data set that tracks all births, deaths, expansions, and contractions of commercial business establishments in Sweden 1985–89, six groups of regions with different patterns of dynamics are extracted by means of cluster analysis. The clusters' structural characteristics and their development of economic well-being are also compared. The results suggesta) that the patterns of business dynamics are contingent on the structural characteristics of regions,b) that high formation and turnover of establishments are associated with a relative increase in economic well-being, andc) that small, autonomous firms have a vital role in this process.     

The World Is Not Enough! Small Open Economies and Regional Dependence

In this paper, we explicitly introduce regional factors into a global dynamic factor model. We combine new open economy factor models (emphasizing global shocks) with the recent findings of regional importance in the business cycle synchronization literature. The analysis is applied to a large panel of domestic data for four small open economies. We find that global and regional shocks explain roughly 30 and 20 percent, respectively, of the business cycle variation in all countries. While global shocks have most impact on trade variables, regional shocks explain a relatively large share of the variation in cost variables.     

TFP change and its components for Swedish manufacturing firms during the 2008–2009 financial crisis

Journal of Productivity Analysis - A driving force of economic development is growth in total factor productivity (TFP). Manufactured goods are, to a large extent, exports, and represent an...     

Symmetric and asymmetric committees

This paper studies the assignment of decision makers to two committees that make decisions by a simple majority rule. There is an even number of decision makers at each of the various skill levels and each committee has an odd number of members. Surprisingly, even with the symmetric assumptions in the spirit of Condorcet, a symmetric composition of committees is not always optimal. In other words, decision makers with different skill levels should not generally be evenly divided among the committees. However, in the special case of only two skill levels, it is optimal to compose the committees evenly.     

Improving Service Quality in Person-to-Person Encounters: Integrating Findings from a Multi-disciplinary Review

Although the core of most services is a person-to-person encounter, we still know very little about its underlying mechanisms as very few models or theories have been developed for these dynamic interactions between persons. An holistic approach to quality improvement is therefore suggested. Different prototypical person-to-person encounters may be studied on different levels and interfaces in service operations to eliminate inconsistencies. The aim of this contribution is to review some recent research findings for person-to-person encounters from the neighbouring management fields of services, operations and human resources in order to draw together their strategic implications for service managers. Some ontological and methodological considerations of studying person-to-person encounters from a qualitative perspective are discussed. The outline of a multi-disciplinary and learning-centred research approach is also suggested. Findings are integrated by a model of four generic and strategic processes for quality improvement in service operations. Finally, some implications for managers are proposed.