ecological economic viability as a criterion of strong sustainability under uncertainty strong sustainability according to the common definition requires that different natural and economic capital stocks be maintained as physical quantities separately yet in a world of uncertainty this cannot be guaranteed to therefore define strong sustainability under uncertainty in an operational manner we propose to use the concept of viability viability means that the different components and functions of a dynamic stochastic system at any time remain in a domain where the future existence of these components and functions is guaranteed with sufficiently high probability we develop a unifying and general ecological economic concept of viability that encompasses the traditional ecological and economic notions of viability as special cases it provides an operational criterion of strong sustainability under a mild form of uncertainty and for medium spatial and temporal scales we illustrate this concept and demonstrate its usefulness by applying it to livestock grazing management in semi arid rangelands publication ecological economic viability as a criterion of strong sustainability under uncertainty available from https www researchgate net publication 46490456 ecological economic viability as a criterion of strong sustainability under uncertainty accessed apr 3 2017

economic viability and small scale fisheries a review abstract globally over 90 of all fishing vessels and about 22 million fishers are considered small scale despite their high numbers small scale fisheries are often understudied they are usually economically and politically marginalized and therefore vulnerable to large scale threats e g globalized markets to support this sector and contribute to its sustainability we argue that it is fundamental to understand how economically viable small scale fisheries are hence the main objective of this article is to critically review and describe the current discourse on the economic viability of small scale fisheries we find that currently economic viability is mainly equated with financial viability where profitability is the goal in consideration of socio economic aspects the maintenance of nonnegative net benefits to society is often not considered in current notions of economic viability while these shortcomings have been acknowledged in some of the existing literature our review shows that they have not yet been addressed comprehensively we therefore conclude that it is necessary to develop or expand current methods to better take into account social aspects when assessing the economic viability of small scale fisheries this would help find solutions to make these fisheries less vulnerable and better equipped to face large scale processes of change

metaheuristics with local search techniques for retail shelf space optimization efficient shelf space allocation can provide retailers with a competitive edge while there has been little study on this subject there is great interest in improving product allocation in the retail industry this paper examines a practicable linear allocation model for optimizing shelf space allocation it extends the model to address other requirements such as product groupings and nonlinear profit functions besides providing a network flow solution we put forward a strategy that combines a strong local search with a metaheuristic approach to space allocation this strategy is flexible and efficient as it can address both linear and nonlinear problems of realistic size while achieving near optimal solutions through easily implemented algorithms in reasonable timescales it offers retailers opportunities for more efficient and profitable shelf management as well as higher quality planograms

the sustainable borders of the state economic crises have historically set the stage for the reconfiguration of the economic borders of the state current concerns focus on debt and associated intergenerational issues such as pensions infrastructure and the environment the sustainable state is designed to put in place a framework for integrating these intergenerational issues alongside the traditional focus on macroeconomic policy static market failures and transfers the building blocks include the accounting framework and in particular a national balance sheet setting out assets and liabilities and providing for capital maintenance over time to support these assets and to provide for sufficient investment the sustainable state requires an appropriate level of savings and institutions to translate these savings into investments two components are the deployment of regulatory asset bases to underpin long term sunk and fixed costs given the time inconsistency problem in government s commitments and the development of financial intermediaries such as an infrastructure bank copyright 2011 oxford university press

degradation of environmental capital and national accounting procedures abstract the capital theoretic approach to the environment as a wastable stock a stock with a flow of abatement services is explored in a simple ricardo like model involving wheat production and pollution production as an essential by product we then turn to how the national accounts are implicit in growth or capital theory models and how formulae emerge for accounting for the wasting of environmental capital airsheds and watersheds from excessive use

averting crisis assessing measures to manage financial integration in emerging economies the asian crisis provides heterodox economists with the opportunity to investigate counterfactually whether the financial policies they have proposed would have averted the crisis the paper argues that neo liberal financial integration introduces distinct risks to emerging economies currency flight fragility contagion and sovereignty risks the paper presents the financial policies endorsed by the heterodoxy transactions taxes trip wires and or speed bumps convertibility restrictions the chilean model and a publicly managed mutual fund the paper considers whether these policies mitigate risks and whether they could have prevented the asian crisis and the transmission thereof the paper concludes with policies to avert future crises copyright 2003 oxford university press

the triple bottom line meeting ecological economic and social goals with individual transferable quotas this paper deals with the sustainable management of a renewable resource based on individual and transferable quotas itqs when agents differ in terms of harvesting costs or catch capability in a dynamic bio economic model we determine the feasibility conditions under which a fishery manager can achieve sustainability objectives which simultaneously account for stock conservation economic efficiency and maintenance of fishing activity for the agents along time we show how the viability of quota management strategies based on itq depends on the degree of heterogeneity of users in the fishery the current status and the dynamics of the stock together with the selection of tac schedules in particular for a given stock we compute the maximin effort for a given set of agents and we derive the maximal number of active agents for a given guaranteed effort an application to the nephrops fishery in the bay of biscay illustrates the results

storage and viability of a fishery with resource and market dephased seasonalities in this study we analyse the role of the storageregulation in a fishery s production process when theresource exploited and the market to which theproduction is exported are characterized by seasonaldephased oscillations for this purpose we built up adynamic model drawn from the french guyana shrimpfishery example the underlying objective of the modelis not the maximisation of a given criterion as wouldbe in the optimal control approach but merely themaintenance of the fishery s economical viability thefundamental principle is here to try to preserve asmany as possible viable control options theconditions to achieve and maintain this viability arecaptured in a certain number of constraints theanalysis points out periods and situations within theseason where the fishermen must anticipate theevolution of their storage to avoid violating thoseviability constraints the study also indicates howthe fishery s viability can be ensured even if theexploitation costs exceed the commercial value of thelandings for a finite part of the year however whenthe resource s and or market s oscillations are toolarge the fishery may be not viable any longer and itappears that the crisis can not be removed byinvesting in larger storage capacities

a step beside the maximin path can we sustain the economy by following hartwick s investment rule si la durabilite est interpretee comme la necessite de soutenir le niveau de consommation ou d utilite alors l utilisation d un critere maximin est pertinente l economie soutenable est caracterisee par un niveau d investissement optimal qui satisfait la regle d investissement d hartwick cet article examine comment la durabilite d une economie basee sur une ressource non renouvelable est modifiee au voisinage du sentier maximin c est a dire lorsque la consommation ou les prix sont sous optimaux un indicateur de consommation soutenable est propose pour caracteriser la durabilite des sentiers de consommation constante definis comme des deviations au sentier maximin on decrit en particulier comment une sur consommation presente diminue la soutenabilite de l economie pour les generations futures

linking economic and ecological models for a marine ecosystem increasingly economists and ecologists have begun to recognize the value to public policy of combining information and results from each discipline into multidisciplinary studies here we present a methodological approach that links economic and ecological analyses we develop an economic ecological model by merging an input output model of a coastal economy with a model of a marine food web we describe distinct linear system sub models of the economy and the ecosystem and we develop a method for linking the two our method extends the work of earlier researchers by incorporating an ecosystem matrix into resource multipliers and by showing how these multipliers may be calculated we present a numerical example for the new england region using coastal economic and marine ecological data from the region for a restricted set of industry sectors and food web trophic levels we calculate resource multipliers for the example and we simulate the economic impacts of changes in primary production in the ecosystem on final demands for fishery products the results illustrate the effects of incorporating the impacts of habitat destruction and ecosystem structure on resource multipliers our approach can be extended to incorporate the full range of sectors in the economy and trophic levels in a linked ecosystem 2003 elsevier b v all rights reserved

second order sustainability conditions for the development of sustainable innovations in a dynamic environment abstract in particular radical innovations can be important means to achieving improved sustainability due to the existence of path dependency and lock in however the transition from one technological trajectory to another more sustainable one is often impeded by significant barriers fortunately these barriers are by their nature subject to substantial changes in time so it makes sense to carefully distinguish between periods of stability showing high barriers in which the given trajectory can hardly be left and periods of instability characterized by low barriers where a new trajectory can be reached more easily the latter distinction matters since sustainable innovations often rely on governmental regulation and the economic burden arising from this regulation will be much lower in periods of instability moreover due to the complexity and dynamics of change in their respective environments innovations are generally associated with fundamental uncertainty such that it becomes impossible to predict the degree of sustainability yielded by specific innovations in the longer run under these circumstances it is essential to facilitate the change between trajectories and to allow for the possibility to select between a variety of alternative trajectories within a process of trial and error sustainability as viewed from this evolutionary perspective is therefore better understood as the general capability to adapt that is to readily change from less to more sustainable technological trajectories since the latter kind of sustainability determines the conditions under which the former kind i e sustainability related to a specific technology can be achieved the two kinds are respectively called second order and first order sustainability finally a series of determinants and corresponding indicators from the techno economic political and socio cultural sphere is identified which after proper measurement and weighting allow for making an assessment whether and when the incumbent industry is sufficiently destabilized and the political system rendered sufficiently favorable to the new more sustainable technology such that a transition to the preferred trajectory is possible without too much effort

a viability analysis for a bio economic model abstract this paper presents a simple dynamic model dealing with the management of a marine renewable resource but instead of studying the ecological and economic interactions in terms of equilibrium or optimal control we pay much attention to the viability of the system or in a symmetric way to crisis situations these viability crisis situations are defined by a set of economic and biological state constraints the analytical study focuses on the compatibility between the state constraints and the controlled dynamics using the mathematical concept of viability kernel we reveal the situations and if possible management options to guarantee a perennial system going further we define overexploitation indicators by the time of crisis function in particular we point out irreversible overexploitation configurations related to the resource extinction

accounting for the value of ecosystem services abstract a value of ecosystem services ves may be calculated by multiplying a set of ecosystem services by a set of corresponding shadow prices this paper examines the role of the ves concept in measuring trends in human well being under conventional arguments from applied welfare economics standard measures of market consumption may be extended to include the value of direct environmental services which affect welfare in ways that are not mediated by the consumption of purchased goods the ves concept does not capture values such as ecological sustainability and distributional fairness that are not reducible to individual welfare and its operationalization is constrained by the well known limitations of nonmarket valuation methods nonetheless attempts to calculate the value of environmental services can provide insights into the tradeoffs between market activity and environmental quality that are implicit in the process of economic growth such efforts can promote informed debate concerning the achievement of sustainable development

maximum economic yield fishery management in the face of global warming abstract this paper deals with fishery management in the face of the ecological and economic effects of global warming to achieve this a dynamic bioeconomic model and model based scenarios are considered in which the stock s growth function depends on the sea surface temperature the model is empirically calibrated for the french guiana shrimp fishery using time series collected over the period 1993 2009 three fishing effort strategies are then compared under two contrasted ipcc climate scenarios rcp 8 5 and rcp 2 6 a first harvesting strategy maintains the status quo in terms of fishing effort a more ecologically oriented strategy based on the closure of the fishery is also considered a third strategy which relates to maximum economic yield mey is based on the optimisation of the net present value derived from fishing the results first show that status quo fishing intensity combined with global warming leads to the collapse of the fishery in the long run secondly it turns out that the closure strategy preserves stock viability especially under the optimistic climate scenario thirdly the mey strategy makes it possible to satisfy bioeconomic performances requirements with positive stock and profit once again especially under the optimistic warming scenario consequently mey emerges as a relevant bioeconomic strategy in terms of adaptation to climate change but only in connection with climate change mitigation

optimal dutch disease growth models of the dutch disease such as those of krugman 1987 matsuyama 1992 sachs and warner 1995 and gylfason et al 1999 explain why resource abundance may reduce growth however the literature also raises a new question if the use of resource wealth hurts productivity growth how should such wealth be optimally managed this question forms the topic of the present paper in which we extend the growth literature on the dutch disease from a positive to a normative setting we show that the assumptions in the previous literature imply that the optimal share of national wealth consumed in each period needs to be adjusted down however some dutch disease is always optimal thus lower growth in resource abundant countries may not be a problem in itself but may be part of an optimal growth path the optimal spending path of the resource wealth may be increasing or decreasing over time and we discuss why this is the case

the role of financial analysts in the strategy formation process of business firms increasingly financial analysts are influencing the strategy formation process of corporations but so far little attention has been paid to the complex processes of interaction and the corresponding strategic outcomes this article discusses these influences through different theoretical lenses strategic management finance and accounting theory and economic sociology institutional and systems theory based on case study evidence from three companies we describe how the interactions between financial analysts and business firms take place and formulate several propositions on the relationship between financial analysts and business firms as well as on its influence on the strategic outcome of business firms the results suggest that the influence of financial analysts is indeed significant but depends on a number of contextual factors such as the financial situation of the company or the need for capital practicing managers can learn how to handle a turbulent environment such as the financial analyst community and how they can change their planning processes to absorb as much information as possible

sh a r p shelf allocation for retailers profit shelf space is the retailer s scarcest resource space management tools are thus badly needed for that purpose commercial computer packages and optimal allocation models have been developed building on the work of corstjens and doyle we elaborate a general theoretical shelf space allocation model which focuses on the demand interdependencies prevailing across and within product groups rules of thumb are compared to the derived optimal allocation the sh a r p model is introduced as a simplified yet realistic variant and validated against data collected in a dutch supermarket chain subsequently the feasibility of its implementation has been experimented in various belgian chains case studies demonstrate the profit potential of sh a r p

on the intergenerational allocation of natural resources it is known hartwick and others that under standard assumptions a society that invests in reproducible capital the competitive rents on its current extraction of exhaustible resources will enjoy a consumption stream constant in time it is shown here that this result can be interpreted as saying that an appropriately defined stock of capital including the initial endowment of resources is being maintained intact and that consumption can be interpreted as the interest on that patrimony this seems like a useful rule of thumb for policy

cooperative game analysis of retail space exchange problems abstract we analyze retail space exchange problems where two or more retailers exchange their excess retail spaces to improve the utilization of their space resource we first investigate the two retailer space exchange problem in order to entice both retailers with different bargaining powers to exchange their spaces we use the generalized nash bargaining scheme to allocate the total profit surplus between the two retailers next we consider the space exchange problem involving three or more retailers and construct a cooperative game in characteristic function form we show that the game is essential and superadditive and also prove that the core is non empty moreover in order to find a unique allocation scheme that ensures the stability of the grand coalition we propose a new approach to compute a weighted shapley value that satisfies the core conditions and also reflects retailers bargaining powers our analysis indicates that the space exchange by more retailers can result in a higher system wide profit surplus and thus a higher allocation to each retailer under a fair scheme

changes in social welfare and sustainability theoretical issues and empirical evidence abstract we analyze the time derivative of a ramsey koopmans social welfare function r k swf as an indicator of genuine investment and current change in social welfare csw conditions when feedback or arbitrary rules are used for selecting policy variables in non optimizing economies when policy variables are selected arbitrarily their accounting prices should determine current csw in addition to the accounting prices of the economy s assets and genuine investment should be adjusted accordingly we use our theoretical framework to characterize csw conditions for non optimizing economies based on direct estimation of accounting prices we use our theoretical model to provide empirical evidence regarding the csw conditions for the greek economy

intertemporal equity and efficient allocation of resources abstract competitive paths which are efficient are shown to satisfy a terminal cost minimization condition thereby providing a continuous time counterpart to the discrete time result due to malinvaud using this result competitive paths which are equitable and efficient are shown to satisfy hartwick s investment rule which states that the value of net investment is zero at each date our result indicates that hartwick s rule can help to signal inefficiency of competitive equitable paths journal of economic literature classification numbers c61 d90 o41

the double bubble at the turn of the century technological roots and structural implications this paper argues that the two boom and bust episodes of the turn of the century the internet mania and crash of the 1990s and the easy liquidity boom and bust of the 2000s are two distinct components of a single structural phenomenon they are essentially the equivalent of 1929 developed in two stages one centred on technological innovation the other on financial innovation hence the frequent references to that crash to the 1930s and to bretton woods are not simple journalistic metaphors for interpreting the credit crunch and its solution but rather the intuitive recognition of a fundamental similarity between those events and the current ones the paper holds that such major boom and bust episodes are endogenous to the way in which the market economy evolves and assimilates successive technological revolutions it will discuss why it occurred in two bubbles on this occasion it examines the differences and continuities between the two episodes and presents an interpretation of their nature and consequences

reconciling the green accounts in an optimally managed economy green nationalexpenditure is equal to the linearization of the hamiltonian from theproblem of maximizing discounted social utility herein we utilize theadjoint conditions to add to the basis for viewing green nnp as an index ofsocial utility under ideal conditions and to show the equality of netnational income and expenditure the results apply even when returns toscale are increasing or decreasing unpriced net environmental benefitsshould be incorporated into comprehensive nnp in much the same way as thedisutility of labor otherwise current practices of the national accountscan be defended including the treatment of capital gains

an environmental economic measure of sustainable development abstract a central issue in the study of sustainable development is the interplay of growth and sacrifice in a dynamic economy this paper investigates the relationship among current consumption sacrifice and sustainability improvement in a general context and in two canonical stylized economies we argue that the maximin value of utility measures what is sustainable and provides the limit to growth maximin value is interpreted as a dynamic environmental economic carrying capacity and current utility as an environmental economic footprint the time derivative of maximin value is interpreted as net investment in sustainability improvement it is called durable savings to distinguish it from genuine savings usually computed with discounted utilitarian prices

an integrated assortment and shelf space optimization model with demand substitution and space elasticity effects abstract retailers must define their assortments and assign shelf space to the items included in these assortments these two planning problems are mutually dependent if space is scarce we formulate a model that maximizes a retailer s profit by selecting the optimal assortment and assigning limited shelf space to items this model is the first decision model to integrate assortment and shelf space planning by considering stochastic and space elastic demand out of assortment and out of stock substitution effects to solve the model we develop a specialized heuristic that efficiently yields near optimal results even for large scale problems we show that our approach outperforms alternative approaches e g a sequential planning approach that first picks assortments and then assigns shelf space by up to 18 and a greedy algorithm by up to 16 in terms of profit we test our model on two real data sets for perishable and non perishable items and show how it can support retailers in increasing their profits by up to 25 we then use the model to generalize these results and find that space elasticity and substitution effects have a significant impact on profits assortment size as well as facing decisions and that both effects reinforce each other using our model we finally derive rules of thumb for planners in practice

making snowflakes like stocks stretching bending and positioning to make financial market analogies work in online advertising analogies to financial markets have proven powerful in establishing novel or potentially controversial business concepts even in contexts that deviate significantly from financial markets this phenomenon challenges theory that suggests analogies work best when elements from a source and target domain map closely to each other to develop a theory that explains how organizations make initially imperfect analogies work we use a case study of online advertising exchanges a market inspired model for buying and selling online advertising space we find that as organizations stretch an initially misfitting exchange analogy from financial markets to online advertising they iteratively bend their activities in superficial structural and generative ways to match the analogy and position themselves for advantage in the new space being created whereas prior studies emphasize shared cognition about familiar domains as the reason why analogies work our study offers a dynamic account in which stretching ben

international trade and the sustainability footprint a practical criterion for its assessment a simple and minimal criterion for sustainability is that the value of natural capital plus manufactured capital be not decreasing on the basis of any individual country or region the above simple comparison may be misleading as it does not take account of the production of goods for consumption in other countries regions via international trade in other terms the full environmental footprint of a country may not be properly assessed a method of calculating a weak sustainability criterion has been established for both a closed economy approach and an open economy approach there are significant differences between the open and closed economies measures for several regions particularly the middle east overall global sustainability on this criterion has been positive and increasing using a difference equation approach a further analysis has been made of the average proportional rate of change of global sustainability between 1980 and 1990 and its various regional and structural components have been determined these indicate that most of global sustainability growth can be attributed to western europe other asia and japan particularly through high savings ratios the usa on the other hand has made a very small net contribution to the growth in global sustainability

environmental issues and economic decisions in developing countries abstract this paper explains the key role of environmental economics in incorporating environmental concerns into decision making and in facilitating the more efficient management of natural resources as a step toward sustainable development it reviews concepts and techniques for valuation of environmental impacts for use in conventional cost benefits analysis as well as key related aspects including environmental impacts of economywide policies multicriteria analysis risk and uncertainty and discount rate issues several developing country case studies are summarized which cover a range of practical valuation methods the evidence presented suggests that the valuation techniques for determining use values may be applied successfully in appropriate cases but examples involving nonuse values are rare the use of multiobjective desicion methods also needs to be explored where economic valuation is not feasible

characterizing sustainability the converse of hartwick s rule this note offers a general proof of the converse of hartwick s rule namely that in an economy with stationary instantaneous preferences and a stationary technology an efficient constant utility path is characterized by the value of net investments being zero at each point in time in a one consumption economy with two stocks a stock of a natural resource and a stock of man made capital this means that if consumption remains constant at the maximum sustainable level then the accumulation of man made capital always exactly compensates in value for the depletion of the natural resource

popularity signals in trial offer markets with social influence and position bias abstract this paper considers trial offer markets where consumer preferences are modelled by a multinomial logit with social influence and position bias the social signal for a product is given by its current market share raised to power r or equivalently the number of purchases raised to the power of r the paper shows that when r is strictly between 0 and 1 and a static position assignment e g a quality ranking is used the market converges to a unique equilibrium where the market shares depend only on product quality not their initial appeals or the early dynamics when r is greater than 1 the market becomes unpredictable in many cases the market goes to a monopoly for some product which product becomes a monopoly depends on the initial conditions of the market these theoretical results are complemented by an agent based simulation which indicates that convergence is fast when r is between 0 and 1 and that the quality ranking dominates the well known popularity ranking in terms of market efficiency these results shed a new light on the role of social influence which is often blamed for unpredictability inequalities and inefficiencies in markets in contrast this paper shows that with a proper social signal and position assignment for the products the market becomes predictable and inequalities and inefficiencies can be controlled appropriately

discounting of long term costs what would future generations prefer us to do decisions with intergenerational consequences may leave future generations worse off i e not be pareto optimal if costs and benefits are not discounted correctly we point out that this happens if the conventional social discount rate is applied to intergenerational costs with that rate the justification of intergenerational costs benefits of a project are invested and the proceeds can cover future costs leads to an inconsistency over the long term eventually the supposed benefits of any project become larger than the entire gnp the conventional approach commits an error by treating the time preference component of the discount rate as if it represented creation of wealth while it really involves only redistribution the time horizon of the redistribution is limited by the duration of market transactions especially loans thus we recommend a two step discounting procedure with the conventional social discount rate for the short term about 30 years and the growth rate of the economy for the long term data for gnp per capita growth in the us the uk france germany japan and the soviet union since the industrial revolution combined with data for net economic welfare per capita suggest an intergenerational discount rate in the range of 1 to 2 for practical application the rate at which costs and benefits will grow over time is just as important as the discount rate only the difference between these two rates matters for many environmental costs these rates may be close to each other during the next few generations this implies that some of the uncertainty in the prediction of rates cancels and one can treat the problem as if the effective rate were close to zero the consequence for costs such as global warming or nuclear power can be very significant the valuation can increase by more than an order of magnitude compared to values based on conventional discounting

human resource management practices in the multinational company a test of system societal and dominance effects does the use of hrm practices by multinational companies mncs reflect their national origins or are practices similar regardless of context to the extent that practices are similar is there any evidence of global best standards the authors use the system societal and dominance framework to address these questions through analysis of 1 100 mnc subsidiaries in canada ireland spain and the united kingdom they argue that this framework offers a richer account than alternatives such as varieties of capitalism the study moves beyond previous research by differentiating between system effects at the global level and dominance effects arising from the diffusion of practices from a dominant economy it shows that both effects are present as are some differences at the societal level results suggest that mncs configure their hrm practices in response to all three forces rather than to some uniform global best practices or to their national institutional contexts

the sustainable residential water use sustainability efficiency and social equity the european experience abstract the present paper traces the operational conditions governing the sustainable use of water in cities towards this objective the paper first proposes a new comprehensive definition for the sustainable use of water next efficiency in use is proposed as a fundamental instrument in achieving sustainability in spite of prevailing opinions maintaining that sustainability and efficiency aim at different and probably conflicting objectives in this light several pricing modes that inhibit efficiency are examined and their effects are defined in this context egalitarian pricing which nevertheless prevents efficiency is also systematically evaluated until it is ascertained that it does not serve social equity in the use of water in the long run all the more the present paper advocates that certain egalitarian pricing systems such as the increasing block rates most prevalent at this time may have the reverse effect than the one intended and hence in the long run impose negative impacts on the welfare of low incomes as a result full cost prices are proposed as a necessary instrument for the sustainable use of water an instrument that promotes social equity in the long run the assumptions of the study are examined in a comparative analysis of representative european pricing systems and urban management modes

integrating finance into global production networks coe n m lai k p y and wojcik d integrating finance into global production networks regional studies while successful in its aim of globalizing regional development the global production network gpn approach has thus far paid less attention to the role of finance in the dynamics of the global economy and regional development this lacuna is significant as finance is arguably even more globalized and networked than production to address this gap the paper distils the concept of the global financial network gfn from financial geography and related scholarship with advanced business services world cities and offshore jurisdictions at the core interactions between the gpn and the gfn are discussed focusing on the financing and financializing of gpns and the co evolution of globalization and financialization integrating finance into gpn research entails more than a simple extension of the approach it would also enrich it conceptually and enable it methodologically and empirically

retailer shelf space management with trade allowance a stackelberg game between retailer and manufacturers abstract motivated by the significant influence of trade allowance on store operation and the efficiency of shelf space allocation this article develops a model for optimizing category level shelf space management a category shelf space allocation framework with trade allowance is presented and a multi player retailer stackelberg game is introduced to model the interaction between retailer and manufacturers with this framework a retailer maximizes profit by taking the manufacturers trade allowance response into account which provides a realistic approach of simultaneously determining the shelf space and trade promotion decisions under the consideration of interactions among products a piecewise linearization method is employed to reformulate the mixed integer nonlinear programming minlp problem into a linear mip problem for optimal solutions numerical examples demonstrate significant advantage of the proposed framework and quantitative analysis leads to a variety of managerial insights

genuine savings and sustainability genuine savings gs has emerged as the leading economic indicator of sustainable economic development at the country level it derives from the literatures on weak sustainability wealth accounting and national income accounting we discuss the theoretical underpinnings of gs focusing on the relationship between changes in a nation s extended capital stock and the future path of consumption the indicator has entered widespread use propelled by the world bank s publications despite its varying performance as a predictor for future consumption notwithstanding the extensive body of literature reviewed promising future research avenues are identified

net national product as an indicator of sustainability net national product nnp can potentially serve several objectives among others to measure value added and to be an indicator of welfare in the aftermath of the world commission on environment and development however it also seems important to investigate whether the concept of nnp can serve as an indicator of sustainability my point of departure following hicks 1946 ch 14 is therefore to require that nnp should measure what can be consumed in the present period without reducing future consumption possibilities and in line with this to argue that the nnp should equal the maximum per capita consumption level that can be sustained if sufficiently many facilitating assumptions are made then a concept of nnp that serves as an exact indicator of sustainability can easily be constructed for instance for a closed economy with a constant population a stationary technology and with only one capital good it follows that the present does not reduce future consumption possibilities if and only if it does not decrease the stock of the single capital good hence under the assumption that the one capital good k is identical to the one consumption good x nnp defined as y x k measures the maximal sustainable consumption at time t because then x y is equivalent to k the purpose of this note is to establish that with multiple capital goods it is not in general possible to construct an exact indicator of sustainability on the

the impact of classes of innovators on technology financial fragility and economic growth in this article we study innovation processes and technological change in an agent based model by including a behavioral switching among heterogeneous innovative firms the model is able to replicate via simulations well known industrial dynamic and growth type stylized facts the main original element of the model is that firms are allowed to endogenously change among three different classes namely single innovators collaborative innovators and imitators moreover our analysis focuses on the impact of these three innovation categories on micro meso and macro aggregates we find that collaborative companies are those having the highest positive impact on the economic system furthermore we have paid particular attention to the role of credit market in promoting smart growth for this purpose we analyze the role of banks as sources of external funds for innovative entrepreneurs our results suggest a trade off between short term profit maximization and long term efficiency which prevents banks to foster investment in r d and technological progress the model is then used to study the effect that different innovation policies have on macroeconomic performance

value and income abstract this paper argues that income is a flow of value to society therefore an economic modeler s choice of a concept of value imposes a concept of income the argument is used to distinguish three concepts of national income 1 in a discounted utilitarian model which is usually the basis for theoretic discussions of net national income the formulation of value imposes a concept of income that is not observable and hence does not provide income statistics 2 in a perfectly competitive economy national income is in principle observable study of the competitive model provides a theoretic foundation for national accounting with extensions to distorted economies however two unobservable components of ideal income consumers surplus and capital gains are perforce neglected 3 a maximin program is the mathematical representation of another value sustaining an economy it employs a method of intertemporal valuation that does not involve discounting income is sustained value since a maximin program is not expressed for a distorted economy there is no observable indicator of whether an economy is being sustained

sustainable farm income in the presence of soil erosion an agricultural hartwick rule soil erosion is a physical and economic problem of natural capital degradation even along an intertemporally efficient trajectory one can have in a loss of soil fertility and a continuous decline of agricultural net revenue moreover soil erosion is a major source of surface water pollution in rural areas erosion control is thus a challenge for sustainable resource management and internalizing external effects to sustain the level of farm income an agricultural hartwick rule is proposed which addresses both on farm and off farm effects of soil erosion first it requires the investment of the soil rents into alternative capital second additional measures are required to comply with an ambient quality target a charge subsidy scheme proves the most adequate from a perspective of cost effectiveness and sustainability if effluent charge revenues are earmarked to subsidize cropland retirement at the watershed scale in combination with the investment of soil rents this enables to maintain the level of farm income constant over time while respecting the ambient quality target altogether this fulfills the requirements of efficiency and sustainability 2003 elsevier science b v all rights reserved

the welfare economic theory of green national accounts this paper takes a critical look at the literature on green national accounts the problem studied is to find a linear index of economic variables that responds to perturbations in the same direction as social well being the thesis of a large literature that net national product which is a flow is that index in closed economies is shown in some interpretations to be simply false and in others to suffer from deep estimation problems it is argued that capital depreciation using shadow prices should certainly be included in national accounts but that the right welfare index is a comprehensive measure of wealth defined as the shadow value of an economy s stock of all capital assets it is shown that comprehensive wealth is usable as a criterion for policy evaluation as well as for determining sustainable economic development

accounting profits versus marketing profits a relevant metric for category management retailers have long recognized that some categories are more important than others in consumers store choice decisions the overall profitability of a store requires careful category level merchandising decisions to draw the most desirable consumers into the store however the traditional accounting measure of category profits offers imperfect help making these decisions since it does not take into account the effect of merchandising one category on the profits of other categories in the store a profit measure which takes into account these important cross effects is the most relevant performance metric for category management we call this new construct marketing profits as it focuses on consumers and their store choice behavior and is particularly pertinent to the calculus of marketing decision making despite its practical importance the total impact of merchandising a specific product category on a store s profitability is difficult to measure and in practice managers can only rely on intuitive calibration of marketing profits in making many retailing decisions the difficulty arises from the fact that to directly observe the marketing profits of a category one has to know how consumer store shopping behavior would change and hence what a store s profit would be if the category were to disappear from the consumers store choice decision furthermore it is difficult to devise a demand structure that is rich enough to capture bundled purchases on the part of consumers in a reasonable manner but is simple enough to allow estimation on the basis of commonly observed variables these two technical difficulties explain the conspicuous lack of research that systematically examines how to quantify what we call marketing profits this paper builds a formal model of marketing profits we start by formalizing shopper types and then establish the implied relationship between accounting profits and marketing profits by examining shelf space allocations by a retailer on the consumer side we assume that some consumers pay attention to the assortments offered by different retailers when making their store choice decisions this assumption allows us to establish the demand side linkage between accounting profits and marketing profits consumer store choice decisions put pressure on the retailer to carry wide assortments in categories which are particularly critical to the store choice decisions of the most desirable consumers thus the allocation of shelf space gives rise to the supplyside linkage between accounting profits and marketing profits by examining the outcome of the supermarket s shelf space decision we can merge these two linkages and determine the exact relationship between the accounting and marketing profits central to our theoretical structure is our assumption on retailers shelf space allocation decisions because of the well documented pressure that retailers face in making shelf space allocation decisions we assume that they are acting in a reasonably close to optimal fashion by using either an automated planogram or simply by trial and error optimization requires that returns on shelf space allocated to any category in the store must be identical on the margin and equate to the shadow price of shelf space it is this outcome of shelf space allocation that allows us to uncover the implied relationship between accounting and marketing profits this theoretical structure allows us to construct a measure of marketing profits which can be estimated with data commonly available to retailers we demonstrate this measurement technique by using publicly available data provided by marsh supermarkets and show how marketing profits can improve merchandising decisions in our particular application we find many categories where the marketing profits of a category are very different from the traditional accounting profits further we nd that using this new marketing profits metric to make category level feature advertising space decisions significantly improves the profitability of the retailer the paper concludes by discussing how our measure of marketing profits might be improved by additional research particularly if the researcher has data across many stores

a model for optimizing retail space allocations the allocation of scarce shelf space among competing products is a central problem in retailing space allocation affects store profitability through both the demand function where both main and cross space elasticities have to be considered and through the cost function procurement carrying and out of stock costs a model is developed which uniquely incorporates both effects a case study is used to estimate the parameters and the problem is solved within a geometrical programming framework an extensive comparison with alternative procedures suggests this general model leads to significantly different allocation rules and superior profit performance

intertemporal equity and hartwick s rule in an exhaustible resource model in a standard exhaustible resource model it is known that if along a competitive path investment in the augmentable capital good equals the rents on the exhaustible resource known as hartwick s rule then the path is equitable in the sense that the consumption level is constant over time in this paper we show the converse of this result if a competitive path is equitable then it must satisfy hartwick s rule

sustained development of a society with a renewable resource abstract a maximin program is applied to a policy of sustaining a simple society whose population is dependent on a resource subject to logistic growth regular and non regular paths are characterized there are continua of both regular and non regular solutions the type depending on the initial conditions a non regular path involves an intermediate part in which the sustainment constraint is not effective all solutions are time consistent and pareto optimal because a problem may not be regular it is not valid to assume that sustainment implies constant utility

environmental equity and sustainability rejecting the kaldor hicks criteria abstract an implementable translation of environmental equity and sustainability is provided for use in benefit cost analysis as such the approach builds on the underlying economic structure of benefit cost analysis while trying to cause it to evolve in ways that take into account issues of greater concern to ecological economists environmental equity and sustainability are interpreted as imposing new decision criteria that require additional benefit cost tests based on actual compensation to identified sub groups of the population this rejects the pre world war ii compromise of economists regarding potential compensation embodied in the kaldor hicks criteria for environmental equity a project is proposed to pass a benefit cost test if the identified group either receives net benefits or is more than compensated for its losses for sustainability a project is proposed to pass a benefit cost test if the compensation is larger than the net value of the resource and the net value of the resource is reinvested

evaluating projects and assessing sustainable development in imperfect economies we are interested in three related questions 1 how should accounting prices be estimated 2 how should we evaluate policy change in an imperfect economy 3 how can we check whether intergenerational well being will be sustained along a projected economic programme we do not presume that the economy is convex nor do we assume that the government optimizes on behalf of its citizens we show that the same set of accounting prices should be used both for policy evaluation and for assessing whether or not intergenerational welfare along a given economic path will be sustained we also show that a comprehensive measure of wealth computed in terms of the accounting prices can be used as an index for problems 2 and 3 above the remainder of the paper is concerned with rules for estimating the accounting prices of several specific environmental natural resources transacted in a few well known economic institutions

dutch disease and the mitigation effect of migration evidence from canadian provinces this article evaluates whether immigration can mitigate the dutch disease effects associated with booms in natural resource sectors we derive predicted changes in the size of the non tradable sector from a small general equilibrium model a la obstfeld rogoff using data for canadian provinces we find evidence that aggregate immigration mitigates the increase in the size of the non tradable sector in booming regions the mitigation effect is due mostly to interprovincial migration and temporary foreign workers there is no evidence of such an effect for permanent international immigration interprovincial migration also results in a spreading effect of dutch disease from booming to non booming provinces

national account of timber and forest environmental resources in sweden this paper outlines an extension of the national account of income from forest resources in sweden 1987 incorporating changes in timber inventories production of nonmarketed timber and nontimber goods and depletion or improvement in vital environmental stocks such as soil nutrients biodiversity and carbon sinks the total net value added provided by forest resources and forestry labour 1987 is estimated to 22 billions sek this is one third more than the contribution of forestry to ordinary gnp

deforestation and national accounting we construct a first best growing economy in which land is being switched continuously from use in forestry to an alternative use we find that implicitly for such activity to take place there must be no net loss to land owners this implies no deduction in the national accounts for deforestation with soil erosion on deforested land pigovian taxes must be levied to sustain a first best we also observe an optimal tax on households for their implicit use of forests as oxygenation sinks

maximin viability and sustainability the maximin criterion defines the highest utility level that can be sustained in an intergenerational equity perspective the viability approach makes it possible to characterize all the economic trajectories sustaining a given not necessarily maximal utility level in this paper we exhibit the strong links between maximin and viability we show that the value function of the maximin problem can be obtained in the viability framework and that the maximin path is a particular viable path this result allows us to extend the recommendations of the maximin approach beyond optimality to characterize the sustainability of economic trajectories which differ from the maximin path attention is especially paid to non negative net investment at maximin accounting prices which is shown to be necessary to maintain the productive capacity of the economy whether the development path is optimal or not our results provide a new theoretical ground to account for sustainability in imperfect economies based on maximin prices

keeping good company a study of corporate governance in five countries this study describes in turn the systems that operate in five leading industrial countries germany japan france the usa and the uk it establishes two basic principles of good corporate governance and shows how they are applied in each country indicating where methods vary and how most countries fall short of the ideal the book concludes by highlighting the uk s strengths and weaknesses and calls for a thorough overhaul of policy

sustainability of an economy relying on two reproducible assets evaluating the sustainability of a society requires a system of shadow or accounting values derived from the sustainability objective as a first step toward the derivation of such shadow values for a maximin objective this paper studies an economy composed of two reproducible assets each producing one of two consumption goods the effect of the substitutability between goods in utility is studied by postulating in turn neoclassical diminishing marginal substitutability perfect substitutability and perfect complementarity the degree of substitutability has strong effects on the maximin solution affecting the regularity or non regularity of the program and on the accounting values this has important consequences for the computation of genuine savings and the sustainability prospects of future generations

predicting stakeholder orientation in the multinational enterprise a mid range theory as the reach of corporations increasingly extends across borders a key research question is whether overseas subsidiaries adopt a shareholder centric orientation centered on maximizing shareholder wealth or a stakeholder centric orientation centered on creating value for a broader range of stakeholders existing theories addressing the corporate level of analysis focus on forces exogenous to the firm local resource pressures and institutional norms using a combination of induction and fuzzy set analysis i draw on documentary evidence and 298 interviews with managers and stakeholders to build theory about the conditions that shape subsidiaries stakeholder orientations two major findings emerge first although theory emphasizes external stakeholders control over resources internal control through the corporate parent can crowd out the voices of local stakeholders second although institutional theory proposes isomorphism with local norms and standards some corporations are subject to scrutiny by global stakeholders and their subsidiaries face higher requirements for social engagement than their peers these findings are the foundation of a mid range theory that combines conventional explanations focused on environmental factors and an internal stakeholder perspective based around the roles of the parent corporation as owner and resource provider to predict stakeholder orientation

public debts and private assets explaining capital flight from sub saharan african countries we investigate the determinants of capital flight from 30 sub saharan african countries including 24 countries classified as severely indebted low income countries for the period 1970 1996 the econometric analysis reveals that external borrowing is positively and significantly related to capital flight suggesting that to a large extent capital flight is debt fueled we estimate that for every dollar of external borrowing in the region roughly 80 cents flowed back as capital flight in the same year capital flight also exhibits a high degree of persistence in the sense that past capital flight is correlated with current and future capital flight the growth rate differential between the african country and its oecd trading partners is negatively related to capital flight we also explore the effects of several other factors inflation fiscal policy indicators the interest rate differential exchange rate appreciation financial development and indicators of the political environment and governance we discuss the implications of the results for debt relief and for policies aimed at preventing capital flight and attracting private capital held abroad

capital gains and net national product in open economies it is shown within a given framework that with the world economy following an egalitarian path the aggregate capital gains being positive is equivalent to the interest rate tending to decrease this result is of importance for the concept of net national product in open economies in particular with positive aggregate capital gains an open economy cannot sustain consuming the return on its capital stocks since some part of the return must be used to augment the country s national wealth it is established that a country s share of world wide sustainable consumption equals its share of worldwide wealth

intergenerational altruism and the environment we construct an overlapping generations model of pollution externality in which individuals are altruistically linked to their offspring as in barro 1974 it is shown that steady state consumption may be a decreasing function of the intergenerational degree of altruism despite individuals altruism the competitive equilibrium is not optimal we thus study the social optimum and show that it can be decentralized

financialization of the global economy the instability of the world financial system starkly revealed in the recent debacle is not the only problem it poses its secularly increasing dominance over the real economy is in itself a phenomenon that needs examining the article traces the source of this increasing dominance not just to the increasingly leveraged and increasingly incomprehensible forms of intermediation between savers and those in the real economy who need credit and insurance but also to the increasingly universal doctrine that maximizing shareholder value is the sole raison d etre of the firm and the promotion by governments of an equity culture some of the social consequences of financialization are exacerbating inequalities greater insecurity misdirection of talent and the erosion of trust copyright 2008 oxford university press

on the welfare significance of green accounting as taught by parable abstract green nnp is a national accounting concept that subtracts off from gnp not just depreciation of capital but also depletion of environmental assets for a time autonomous technology green nnp has a rigorous welfare interpretation as an exact measure of the economy s future power to consume the present paper extends the standard framework to cover the case of labor augmenting technological progress for this special case of time dependence a powerful conceptual parable applies it is as if the conclusion from a simple minded welfare story told by the standard neoclassical one sector growth model covers a far more general situation involving any number of different types of capital any convex production possibilities set and fully optimizing behavior implications and applications are discussed

the impact of corporate governance practices on r d efforts a look at shareholders rights cross listing and control pyramid the paper considers the impact of multiple shareholder oriented governance practices on rd decisions based on a sample of 5 528 firms belonging to 110 large french listed business groups our results substantiate the idea that shareholder oriented governance practices and a lower position in a control pyramid are better for rd investment the introduction of any additional shareholder oriented practice is found to result in more rd we show however that this anglo americanization of the french corporate governance system is only partial we provide evidence of the co existence of an old french system of corporate governance with a hybrid model of corporate governance the lack of concrete results on complementarity among shareholder oriented governance practices casts doubt on the stability of this hybrid model in the french context

ecoviability for small scale fisheries in the context of food security constraints this paper applies a stochastic viability approach to a tropical small scale fishery offering a theoretical and empirical example of ecosystem based fishery management approach that accounts for food security the model integrates multi species multi fleet and uncertainty as well as profitability food production and demographic growth it is calibrated over the period 2006 2010 using monthly catch and effort data from the french guiana s coastal fishery involving thirteen species and four fleets using projections at the horizon 2040 different management strategies and scenarios are compared from a viability viewpoint thus accounting for biodiversity preservation fleet profitability and food security the analysis shows that under certain conditions viable options can be identified which allow fishing intensity and production to be increased to respond to food security requirements but with minimum impacts on the marine resources

long term substitutability between environmental and man made goods abstract substitutability between environmental and man made goods plays a major role in the sustainability debate the notion of substitutability covers a continuous spectrum with perfect substitutability at one end and poor substitutability at the other in this paper it is shown that if economic growth sustains a sharp distinction emerges between perfect and poor substitutability without any intermediate interpretation of substitutability if poor substitutability prevails environmental resources will eventually constitute the major part of total consumption value we relate our results to baumol s disease and assess the implications of this phenomenon for the compensation of environmental losses

on sustainability and social welfare abstract this paper proposes to define sustainability in terms of leaving it possible for future generations to sustain certain defined targets it is shown that variants of genuine savings and the ecological footprint can then serve as indicators of sustainability the link between sustainability and intergenerational welfare is examined and it is shown how to incorporate indicators of sustainability into a social welfare measure including risk in the analysis

an overlapping generations model of growth and the environment this article analyzes the potential conflict between economic growth and the maintenance of environmental quality in an overlapping generations model short lived individuals make decisions which have long lasting effects on both factor productivity and the environment the model provides a theoretical explanation of observed correlations between environmental quality and income whereby economic growth is associated first with declines then improvements in environmental quality it suggests circumstances in which multiple pareto ranked steady state equilibria may arise and in which sustained growth of both capital and environmental quality may occur overmaintenance of the environment analogous to dynamically inefficient overaccumulation of capital may emerge copyright 1994 by royal economic society

sustainability constraints versus optimality versus intertemporal concern and axioms versus data sustainable sustained or survivable development are defined here as distinct sustainability constraints on intertemporal distribution in a context which ignores uncertainty environmental and intratemporal concerns such constraints are neither self contradictory nor redundant for they can conflict with maximizing the present value of utility optimality nor inferior since the axioms underlying optimality are ethically arbitrary and refuted by empirical psychological data axiomatic arguments may clarify but cannot resolve debates about intertemporal concerns data suggest that sustainability constraints are not respected and that intertemporal welfare functions containing a preference for sustained improvement may better reflect what bodies politic mean by sustainability

the effects of market economy type and foreign mne subsidiaries on the convergence and divergence of hrm this study explores patterns of human resource management hrm practices across market economies and between indigenous firms and foreign mne subsidiary operations offering a novel perspective on convergence and divergence applying institutional theorizing to improve our understanding of convergence divergence as a process and an outcome data collected from nine countries at three points in time over a decade confirm that convergence and divergence occur to different extents in a nonlinear fashion and vary depending on the area of hrm practice observed patterns of adoption and convergence divergence are explained through the effect of institutional constraints which vary between liberal and coordinated market economies and between indigenous firms and foreign mne subsidiaries specifically we expected and largely found supporting evidence confirming that compensation and wage bargaining level practices show more evidence of being institutionally constrained and hence were less likely to converge than contingent employment training and direct information provision practices the study contributes a more graded conceptualization of convergence divergence from constant no difference through robust convergence non robust convergence non robust divergence and robust divergence to constant difference allowing us to tease out the subtle manifestations of the process that can incorporate the complex dynamic reality of international business

social ontology and the modern corporation in an assessment of lawson s social ontological analysis of the modern corporation we consider what is marginalized the significance of the status and the effects of the separate legal entity sle the sle is conceived as a specific type of construct that is ascribed particular properties through its stabilization within and between different legal and economic discourses by showing how the sle as a reified construct is rendered meaningful real and or consequential we illustrate how the social ontology of the modern corporation is radically contingent and inescapably contested given that the social ontology of the corporation defies definitive specification we regard the prospect of the completeness of its disclosure e g by foregrounding a specific referent as problematic indeed any account of social ontology that foregrounds a specific referent is seen to obscure a political process in which the stabilization of the sle rests on the contingent foregrounding of particular priorities this leads us to reflect on the power inflected social organization of knowledge generation key to the explication of social ontology and with specific reference to the corporation is not as lawson contends the concept of community but the inescapability of contestation within relations of power that translate ontological openness into specific but precarious forms of ontic closure

irreversibility and uncertainty cause an intergenerational equity efficiency trade off abstract two important policy goals in intergenerational problems are pareto efficiency and sustainability i e intergenerational equity we demonstrate that the pursuit of these goals is subject to an intergenerational equity efficiency trade off our analysis highlights two salient characteristics of intergenerational problems and policy i temporal irreversibility i e the inability to revise one s past actions and ii uncertainty of future consequences of present actions in human environment systems we employ a two non overlapping generations model that combines an intragenerational production decision on the use of circulating capital and a non renewable resource with a negative intergenerational externality as an unforeseen contingency if initially unknown problems become apparent and policy is enacted after irreversible actions were taken policy making faces a fundamental trade off between ex post pareto efficiency and sustainability that is one can achieve either one of these two goals but not both

does the alternative investment market nurture firm growth a comparison between listed and private companies the creation of stock market segments with low admission requirements was welcomed in the 1990s as an essential move to release small and medium sized enterprises from their dependency on banks for external funding thereby removing the financial barriers that hinder their growth and competitiveness but does easier access to public equity really translate into superior real performance we explore this issue by focusing on the alternative investment market aim a junior segment of the london stock exchange that has experienced long lasting growth in capitalization

a characterization of sustainability with indicators abstract economists favor the use of criteria to characterize sustainability in practice policy makers use indicators i e measurements based on the current economic state and decisions representing given sustainability issues in this paper i introduce a criterion characterizing sustainability with indicators and thresholds acting as constraints i interpret the thresholds as minimal rights to be guaranteed to all generations and define sustainable trajectories as those satisfying all the constraints at all times the new criterion is a generalized maximin criterion the approach is applied to a simple production consumption economy with non renewable resources to derive some policy recommendations on the use of indicators to deal with sustainability i discuss the implications of such a criterion in terms of trade off between sustainability thresholds efficiency and time consistency in particular the resulting problem is time inconsistent and sustainability thresholds may be revised over time following the time inconsistent policy based on indicators with dynamic revision of the thresholds may however result in a sustained utility path and even in utility growth