Rising marginal cost and concavity of the production function

Suppose a production function, f, is continuous, quasi-concave and weakly monotone on the non-negative orthant of Euclidean n-space. Let c(·, ·) be the associated cost function. Then it is shown that f is concave if and only if for each w, c(w, ·) is convex.     

The Exchange Rate and its Fundamentals in a Complex World

We develop a nonlinear exchange rate model with heterogeneous agents. Some agents adopt a “fundamentalist” forecasting rule, while others use a “chartist” forecasting rule. We show that the model is capable of explaining the empirical puzzles relating to exchange rate movements. In particular, the model explains the “exchange rate determination” and PPP puzzles, the excess volatility, and fat tails in exchange rate returns.     

Collaborative commerce in tourism: implications for research and industry

Technology advances enable people to trade and sell their own travel products, which in turn create numerous transformation changes into the tourism industry structure, the nature of tourism products and experiences, the competitiveness of traditional and new tourism players and the process creating (social) value in tourism. This paper investigates the application and implications of collaborative commerce in tourism and provides suggestions for future research.     

Banning information in hiring decisions

Journal of Regulatory Economics - Over the past decade, federal, state and local governments have restricted the types and uses of information in hiring and promotion decisions. Examples include...     

Doing More with Less: The Disordinal Implications of Firm Age for Leveraging Capabilities for Innovation Activity*

Innovation requires the entrepreneurial capabilities of opportunity recognition and opportunity exploitation. Such capabilities generally accrue over time from a firm's cumulative learning and experience. In this study, we theorize that firm age should therefore moderate the firm's ability to leverage these capabilities for innovation activity, such that older firms can obtain higher outputs from their capabilities than younger firms can. We examine this relationship using a sample of 676 small and medium enterprises. We find that when both younger and older firms have highly developed innovation capabilities, older firms appear to enjoy higher levels of innovation activity than younger firms do. However, younger firms generally appear more likely to have higher levels of innovation activity than older firms do, when neither firm has highly developed innovation capabilities. We conclude with a discussion of the implications of these findings for research and practice.     

The sustainability behaviour of small firms in tourism: the role of self-efficacy and contextual constraints

This article presents a grounded theory to explain why some small businesses in tourism adopt sustainable business practices while others do not, even when they share environmental and wider sustainability concerns. It does so based on research undertaken among business owners in Crete. The paper starts by considering studies on sustainability awareness, knowledge and the mechanisms for accepting responsibility. Secondly, it summarises the influence of task difficulty and effort on sustainability self-efficacy. Thirdly, it focuses on social comparisons and vicarious experiences, as a way of learning what is important. Finally, it examines powerlessness due to perceived situational constraints. In so doing, the study finds that self-efficacy helps to explain sustainable attitude formation and the attitude-behaviour gap; it partly shifts the locus of responsibility for an inability to act sustainably away from the individual and towards their context. The paper contributes to the theoretical literature on small businesses and sustainability, and leads to new avenues for policy interventions.     

Empowerment and resident support for tourism in rural Central and Eastern Europe (CEE): the case of Pomerania,Poland

Despite empowerment being a crucial component of sustainable tourism, few scholars have quantitatively operationalized empowerment and looked at how it applies to rural societies within the post-communist European Union (EU) member states. Knowing the high priority of sustainable rural development goals within the EU, empowering residents within these post-communist societies has become a pertinent issue especially where those societies appear more reluctant to engaging in democratic ways of decision-making. In response to this gap, this study tests the cross-cultural validity of the Resident Empowerment through Tourism Scale, and then evaluates how empowerment predicts residents’ support for tourism within the municipality of Choczewo, Pomerania, Poland. Using a theoretical perspective that blends Social Exchange Theory with Weber's Theory of Formal and Substantive Rationality, these non-economic empowerment dimensions are coupled with a measure of resident perceptions of economically benefiting from tourism to see if rural residents in Choczewo, Poland, are more swayed by the economic or non-economic benefits of tourism. Results show that residents within this Central and Eastern Europe setting are more influenced by the pride and self-esteem boost associated with psychological empowerment and the perceptions of increased community cohesion (i.e. social empowerment) than the economic promises of tourism.     

Performance pay and changes in U.S. labor market dynamics

A shift in the design of labor compensation occurred at around the mid-1980s in the U.S. and deals with an increased role of performance pay in driving the cyclical movements of wages. Using a DSGE model we show that this structural change accounts at least qualitatively for many observed changes in the U.S. labor market dynamics. It generates the disappearance of the procyclical response of labor productivity to non-technology shocks and the reduction of the contractionary effects of technology shocks on hours. Moreover, it is conducive to a drop in the volatility of output, a parallel increase in the volatility of wages and to changes in unconditional correlations consistent with what documented in the U.S. between the pre- and post-1984 periods.     

Confucian Ethics and the Limited Impact of the New Public Management Reform in Thailand

The diffusion of New Public Management reforms across the globe is based on the assumption of the universal applicability of managerialism, driven by instrumental rationality, individualism, independence and competition. The aim of this article is to challenge this conception and to fill a significant gap in the existing research by analysing potential problems arising from the implementation of the NPM philosophy in non-Western public organisations. In-depth interviews and a large-scale survey were conducted across six public organisations in Thailand based on the Competing Values Framework (CVF). Thematic analysis of the data revealed that the traditional cultural model of the organisations studied was characterised by a combination of hierarchical and clan-based cultures, which remained largely unaltered despite massive-scale reform. The persistence of this hybrid cultural system appears to be rooted in the deep-seated Confucian ethical values governing Thai society, in which the organisations are embedded. Based on the research findings, the paper underlies the importance of a symbolist viewpoint of culture and argues that a rational perspective underpinning a functionalist cultural management must be challenged.