Search results

Using duality theory, we give a simple mathematical proof of some well‐known theorems of international trade theory. The two‐sector production model is described by a joint cost function from which the standard comparative statics results can be derived with little difficulty: all that is basically needed is the inversion of a Hessian matrix. This representation of the technology emphasises the importance of the assumption of non‐joint production, and it is useful for generalisation to many goods and factors, for treatment of intermediate products, and for empirical implementation.

Nearly all international trade takes place in middle products, rather than in finished goods as it is assumed in most models of international trade theory. Recognition of this fact has some far-reaching consequences for the measurement of real value added, real domestic income, and productivity, and it brings forward the role of a number of related, yet distinct, key price ratios: the terms of trade, the real exchange rate, and the trading gains. Production theory, rather than consumer theory, is therefore the appropriate setting for analyzing issues such as openness, trade imbalances, and income distribution.

Since the first Volume of this Bibliography there has been an explosion of literature in all the main areas of business. The researcher and librarian have to be able to uncover specific articles devoted to certain topics. This Bibliography is designed to help. Volume III, in addition to the annotated list of articles as the two previous volumes, contains further features to help the reader. Each entry within has been indexed according to the Fifth Edition of the SCIMP/SCAMP Thesaurus and thus provides a full subject index to facilitate rapid information retrieval. Each article has its own unique number and this is used in both the subject and author index. The first Volume of the Bibliography covered seven journals published by MCB University Press. This Volume now indexes 25 journals, indicating the greater depth, coverage and expansion of the subject areas concerned.

This chapter investigates the predictability of the European monetary policy through the eyes of the professional forecasters from a large investment bank. The analysis is based on forward-looking Actual and Perceived Taylor Rules for the European Central Bank which are estimated in real-time using a newly constructed database for the period April 2000–November 2009. The former policy rule is based on the actual refi rate set by the Governing Council, while the latter is estimated for the bank’s economists using their main point forecast for the upcoming refi rate decision as a dependent variable. The empirical evidence shows that the pattern of the refi rate is broadly well predicted by the professional forecasters even though the latter have foreseen more accurately the increases rather than the policy rate cuts. Second, the results point to an increasing responsiveness of the ECB to macroeconomic fundamentals along the forecast horizon. Third, the rolling window regressions suggest that the estimated coefficients have changed after the bankruptcy of Lehman Brothers in October 2008; the ECB has responded less strongly to macroeconomic fundamentals and the degree of policy inertia has decreased. A sensitivity analysis shows that the baseline results are robust to applying a recursive window methodology and some of the findings are qualitatively unaltered from using Consensus Economics forecasts in the regressions.

This chapter estimates a regime switching Taylor Rule for the European Central Bank (ECB) in order to investigate some potential nonlinearities in the forward-looking policy reaction function within a real-time framework. In order to compare observed and predicted policy behavior, the chapter estimates Actual and Perceived regime switching Taylor Rules for the ECB. The former is based on the refi rate set by the Governing Council while the latter relies on the professional point forecasts of the refi rate performed by a large investment bank before the upcoming policy rate decision. The empirical evidence shows that the Central Bank’s main policy rate has switched between two regimes: in the first one the Taylor Principle is satisfied and the ECB stabilizes the economic outlook, while in the second regime the Central Bank cuts rates more aggressively and puts a higher emphasis on stabilizing real output growth expectations. Second, the results point out that the professional forecasters have broadly well predicted the actual policy regimes. The estimation results are also robust to using consensus forecasts of inflation and real output growth. The empirical evidence from the augmented Taylor Rules shows that the Central Bank has most likely not responded to the growth rates of M3 and the nominal effective exchange rate and the estimated regimes are robust to including these additional variables in the regressions. Finally, after the bankruptcy of Lehman Brothers the policy rate has switched to a crisis regime as the ECB has focused on preventing a further decline in economic activity and on securing the stability of the financial system.

This paper revisits the derivation and properties of the Allen-Uzawa and Morishima elasticities. Using a Swiss dataset, this paper empirically estimates various elasticities both in a dual and primal framework using a production theory open economy model and tests for linear homogenous technology. In addition to reporting elasticity at the mean, the standard practice in the literature, this paper also calculates nonparametric distribution of various elasticities. The paper aims to discuss these issues.

To assess the effect of price change on input, the paper estimates a translog cost function and to assess the effect of quantity change on price, the paper estimates the translog distance function using the data on Swiss economy. The paper estimates Allen-Uzawa and Morishima elasticity both under homogenous and non-homogenous technology using the Swiss dataset of one aggregate gross output and four inputs (resident labor, non-resident labor, imports, and capital) over 1950-1986. Elasticities are reported and compared at the mean as well as explored by looking at the range and nonparametric distribution.

This paper shows that constant returns to scale are easily rejected in this dataset and that the elasticities, both qualitatively and quantitatively, are very different under homogenous and non-homogenous technology. These elasticities can switch from complements to substitutes or vice versa when one moves away from the mean of the sample. The equality of the nonparametric elasticity distributions under homogenous vs non-homogenous technology is rejected in all cases except one.

This paper gives a clear derivation and interpretation of different elasticities as well as demonstrates using a dataset how to systematically go about empirically estimating these elasticities in a dual and primal framework. It shows that linear homogenous technology can be easily rejected and the elasticities, both quantitatively and qualitatively, are very different under homogenous and non-homogenous technology. This paper is also very valuable because it shows that the standard practice of reporting elasticity at the mean might not be adequate and there is a possibility that these elasticities can switch from complements to substitutes or vice versa when one moves away from the mean of the sample.

This paper aims to draw on a knowledge-based view to emphasize that internal technological and market knowledge is critical to developing absorptive capacity.

This is a conceptual paper, which draws on recent transformations of management practices. Thus, the paper builds on prior academic contributions.

Firms increasingly establish innovation processes that involve an active acquisition of external technologies, often through alliances and licensing. To explain differences across firms in external knowledge acquisition, marketing and product innovation researchers have recently adopted a process perspective of absorptive capacity, which refers to a firm’s ability to explore, retain and exploit external knowledge. This paper develops a conceptual framework with propositions relating technology orientation, responsive market orientation and proactive market orientation to the three process stages of absorptive capacity under different conditions of environmental dynamism.

Beyond the relevance of technology and market orientation for fostering internal innovation, this paper points to their importance for successfully acquiring external technological knowledge. In light of increasingly open innovation processes, absorptive capacity is an essential complement to internal innovation in linking technology and market orientation to firm performance.

The effect of market orientation (MO) on new product development (NPD) has been widely discussed in recent research. This paper aims to summarize the theoretical and empirical literature in this field from 1990 to 2016.

A total of 89 papers were published in 15 top management journals over this period of nearly 30 years. Forty-one papers are identified as major research and recognized as five main streams by an approach of inductive.

Conclusions regarding trends in the literature on MO–NPD relationship and surfacing future research directions were drawn.

Managers can take a better understanding of the concept of MO. Moreover, they can find some approach to promote their firms’ NPD. Furthermore, they should keep in mind that MO’s effect on NPD may depend on different factors, and different types of MO may lead to different types of NPD. In addition, this paper provides researchers with systematic understanding of the literature in this area, and future research directions.

This is the novel paper to systematically review the literature on the effect of MO on NPD, and the first to classify the studies into five streams which provides clear directions for future research.

The paper investigates the relationships among learning orientation (LO), market orientation (MO), human resource practices (HRPs) and innovation and their association with organisational performance. The aim is to show that HRPs and innovation are important mechanisms for transmitting the benefit of LO and MO into performance outcomes.

Building on extensive literature, a model of the relationships is developed and empirically tested using survey data collected from 220 businesses. Data are analysed through structural equation modelling and/or path modelling. The primary aim is to assess direct, indirect and total effects of LO and MO on performance outcomes through HRPs and innovation (conceptualised as administrative, process and product innovation) as mediators. The study carefully traces the effects of each variable to distinguish between indirect effects and mediated effects.

HRPs are a major mechanism for transmitting the benefits of LO and MO. In some models this is even more important than innovation. The results also suggest that LO should be viewed as exploration while MO is the interface between exploration and exploitation and, finally, HRPs and innovation must be viewed as exploitation or implementation issues.

The study suggests that marketers should include HRPs in models of LO, MO, and innovation to enhance the explanations of these to organisational performance. This study suggests HRPs and innovation are important mediators.

The paper suggests that marketers need to consider the impact of HRPs on achievement of marketing goals and organisational performance.