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Questionnaire surveys made at currency markets around the world reveal that currency trade to a large extent not only is determined by an economy's performance or expected performance. Indeed, a fraction is guided by technical trading, which means that past exchange rates are assumed to provide information about future exchange rate movements. The purpose of this paper is to ask how a successful monetary policy should be designed when technical trading in the form of trend following is used in currency trading.

The paper embeds an optimal policy rule into Galí and Monacelli's dynamic stochastic general equilibrium (DSGE) model for a small open economy, which is augmented with trend following in currency trading, to examine the prerequisites for a successful monetary policy. Specifically, the conditions for a determinate rational expectations equilibrium (REE) that also is stable under least squares learning are in focus. The paper also computes impulse‐response functions for key variables to study how the economy returns to steady state after being hit by a shock.

The paper finds that a determinate REE that also is stable under least squares learning often is the outcome when there is a limited amount of trend following in currency trading, but that a more flexible inflation rate targeting in monetary policy sometimes cause an indeterminate REE in the economy. Thus, strict, or almost strict, inflation rate targeting in monetary policy is recommended also when there is technical trading in currency trading and not only when all currency trading is guided by fundamental analysis (in the form of rational expectations). This result is a new result in the literature.

There are already models in the literature on monetary policy design that incorporate technical trading in currency trading into an otherwise standard DSGE model. There is also a huge amount of DSGE models in the literature in which monetary policy is optimal. However, the model in this paper is the first model, to the best of the author's knowledge, where technical trading in currency trading and optimal monetary policy are combined in the same DSGE model.

Many modern microeconomic theory textbooks similarly conclude that the bilateral monopoly equilibrium price and quantity are theoretically indeterminate given the usual assumptions of the theory of the firm; they usually state that additional assumptions about bargaining power or firm behaviour are required for a determinate solution. The past literature on bilateral monopoly generally supports the textbook position with respect to price but not with respect to quantity. For example, von Stackelberg (1952, 182–9) and Fellner (1947, 523–8) argued that quantity is determinate at the joint profit maximizing level for bilateral monopoly between profit maximizing firms which employ “all or none” offers; price, however, must still be determined by relative bargaining power which is unspecified.

The purpose of this paper is to study the regions of parameter space of engineering design in which performance is sensitive to design parameters. Some of these parameters (for example, the dimensions and compositions of components) constitute the design, but others are intrinsic properties of materials or Nature. The paper is concerned with narrow regions of parameter space, “cliffs”, in which performance (some measure of the final state of a system, such as ignition or nonignition of a flammable gas, or failure or nonfailure of a ductile material subject to tension) is a sensitive function of the parameters. In these regions, performance is also sensitive to uncertainties in the parameters. This is particularly important for intrinsically indeterminate systems, those whose performance is not predictable from measured initial conditions and is not reproducible.

We develop models of ignition of a flammable mixture and of failure in plastic flow under tension. We identify and quantify cliffs in performance as functions of the design parameters. These cliffs are characterized by large partial derivatives of performance parameters with respect to the design parameters and with respect to the uncertainties in the model. We calculate and quantify the consequences of small random variations in the parameters of indeterminate systems.

We find two qualitatively different classes of performance cliffs. In one class, performance is a sensitive function of the parameters in a narrow range that separates wider ranges in which it is insensitive. In the other class, the final state is not defined for parameter values outside some range, and performance is a sensitive function of the parameters as they approach their limiting values. We find that sensitivity of performance to control (design) parameters implies that it is also sensitive to other parameters, some of which may not be known, and to uncertainties of the initial state that are not under the control of the designer. Near or on a cliff performance is degraded. It is also less predictable and less reproducible.

Frequently, design optimization or cost minimization leads to choices of engineering design parameters near cliffs. The sensitivity of performance to uncertainty that we find in those regimes implies that caution and extensive empirical experience are required to assure reliable functioning. Because cliffs are defined as behavior on the threshold of failure, this is a reflection of the trade-off between optimization and margin of safety, and implies the importance of ensuring that margins and uncertainties are quantified. The implications extend far beyond the model systems we consider to engineering systems in general.

Many of these considerations have been part of the informal culture of engineering design, but they were not formalized until the methodology of “Quantification of Margins and Uncertainty” was developed in recent years. Although this methodology has been widely used and discussed, it has only been published in a small number of reports (cited here), and never in a journal article or book. This paper may be its first formal publication, and also its first quantitative application to and illustration with explicit model problems.

In a recent paper in this Journal, Z.A. Spindler has proposed a determinate solution for bilateral monopoly, taking issue with the conclusion of many microeconomics textbooks that both the equilibrium price and the equilibrium quantity are theoretically indeterminate. His analysis relates to what may be termed ‘pure’ bilateral monopoly — in which there is literally only one seller and only one buyer. In practice, however, bilateral monopoly situations frequently are characterised by the existence of some sort of cartel arrangement on one side or the other, if not on both. The purpose of this paper is to consider the circumstances under which Spindler's determinate solution applies to these more general formsof bilateral monopoly.

HAVING discussed in the standard longhand notation the main ideas and methods for the calculation of redundant structures on the basis of forces as unknowns we now turn our attention to the matrix formulation of the analysis. Consider a system consisting of s structural elements with a total number n of redundancies which may be forces (stresses), moments or any generalized forces. We select a basic system by ‘cutting’ a number r of redundancies where r<n. Thus, the simple idea of a statically determinate basic system (r=n) is but a particular case of our investigations.

The series of illustrations to the elimination procedures is concluded with two examples in which the various techniques are again examined critically. The first application considers the important problem of a major cut‐out in a fuselage, extending over a number of panels and bays, and including the attached ring segments. Here the dismembering process appears in its straightforward simplicity and generality a particularly effective choice. The final example investigates the removal of a major substructure from a system in the form of an ‘open’ or ‘closed chain’ of substructures. The discussion on cut‐outs is rounded off with a synopsis of the techniques used and a description of the automatic programme for checking an elimination scheme for any hidden singularities.

The purpose of this paper was to understand the experience of those living with the Imprisonment for Public Protection (IPP) sentence.

Interpretative Phenomenological Analysis (IPA) was used to analyse seven interviews with Young Offenders aged 18-21 who were serving an IPP sentence. Two participants were past their tariff expiry date, two had less than a year until their tariff date and three had more than a year until their tariff date.

Several themes were found, each with their own subthemes: Injustice of the Justice System, Not Knowing, Coping, Change and Walking on Eggshells. Participants still detailed negative aspects of the sentence but within this was one, important, positive aspect, namely the inspiration the sentence gave for them to change their offending behaviour. However, this has come at a cost with participants feeling as though they have been treated unfairly, finding it difficult to cope, feeling victimised and finding it difficult to see a future.

Lapses in motivation do not necessarily reflect the risk of the person but the difficulty of the sentence. Motivation can be fostered and developed through motivational interviewing, praise and peer support IPPs should be given more credit for the way they manage themselves daily and more understanding when they struggle. IPPs could be victimised by determinate prisoners or by staff. Establishments should be aware of this and help IPPs resolve situations without feeling like they are a victim. Consideration should be given to converting IPP sentences to determinate sentences.

Previous research focused on the negative aspects of the sentence, the purpose was therefore to approach the situation with an open mind and by using a method that allows those with an IPP sentence to share their experience of the sentence. IPA allowed for exploration of the effects of the sentence on those serving it and therefore gains a further understanding of the impact of the sentence.

This paper aims to examine the effect of the auditors’ burnout determinates on audit quality and performance. It also analyses whether the demographic characteristics of gender, age group, education and job positions affect auditors’ decisions for burnout, audit quality and performance.

A questionnaire was distributed on a sample of auditors in the top ten auditing firms in an emerging market including the Big 4. Factor analysis, correlation matrix and structural equation modeling were used for the analysis of the collected data and testing the developed hypotheses.

The results show that burnout has negative consequences for both the auditor and the auditing firm. While good organizational climate has a negative significant association with audit quality, nonethical decisions and audit performance, role clarity has positive significant association with the audit quality and performance and has an insignificant association with nonethical decisions. Also, turnover intention has significant positive association with nonethical decision, audit quality and performance.

This research is among the first to focus on auditor’s burnout determinates on audit quality and performance in an emerging market characterized by different socioeconomic, political and cultural factors compared with those of developed markets. Auditors, regulators and professional policymakers can benefit from the results of this research.

A table with three uneven legs standing on an uneven floor is a good example of static determination. We can determine the reactions of the legs for arbitrary loading for the table by using the laws of statics. The assembly of that statically determinate table/floor couple is without problems. The table with four legs is at once overdeterminated. Overdetermination is, for example, the four‐throw crankshaft lying not on two, but on four bearings. The correct assembly of such a crankshaft needs very high precision in manufacturing and supplementary assembly. This article deals with the influence of static overdetermination on the requirements of the precision of parts and on the supplementary fitting work of assembly. The article is linked to the author’s former article “Knowing your orientation” (Assembly Automation, Vol. 16 No. 2, 1996). The aim of both articles is to build up a theoretical base of DFA science.

This paper aims to examine the influence of user characteristics on preference for government service delivery channels. Preferences are understood as citizen use of and satisfaction with digital and traditional government contact modalities. User characteristics are represented by three constructs encapsulating the key elements of citizen features and attitudes.

The constructs are tested on data from a survey of 30 cities in China, resulting in 3,000 respondents, which asked questions on respondents’ use of and satisfaction with traditional modes (hotlines and service center channels) and digital modes (e-government and m-government channels) as well as respondents’ sociodemographics, technological capacity and view of government.

The results showed two important findings. First, service channel use was related to the first and second constructs (sociodemographics and technological capacity). Second, service channel satisfaction showed strong evidence of relation to the third construct, view of government.

The results of this study make an empirical contribution to understanding the features of citizens that influence channel choice for public service contacts.

This study contributes to the understanding of channel choice in three areas. First, it is an empirical study using survey data and so adds to a largely case-based and conceptual literature. Second, by looking at the impact of citizen attitudes about government and not just their sociodemographic features. Third, by examining channel choice in the context of a fast-developing country like China.