going the distance the pros and cons of expanding employees global knowledge reach while some scholars have suggested mnes to be superior to markets for managing knowledge across geographically distant boundaries how they actually accomplish this has not been fully considered we address this void by developing and testing a model that highlights the critical role of organizational incentives in enhancing employees internal search and use of knowledge data from 166 knowledge intensive projects support our argument that in contrast to process based incentives that influence more local search outcome based incentives motivate employee teams to reach well beyond their immediate location which in turn enhances performance at the same time we demonstrate that expanded reach also increases the likelihood of accessing more codifiable knowledge which can hurt performance our model examines the contradictory and previously unknown effects of global knowledge reach

an epec approach to the yearly maintenance scheduling of generating units this paper considers the yearly maintenance scheduling of generating units within a market environment each producer schedules its units maintenance periods to maximize its revenue using a bilevel approach the upper level problem of this bilevel model seeks maximum revenue and contains unit scheduling constraints while the lower level problems represent the market clearing process under different operating conditions this single producer maintenance problem can be recast as a mathematical program with equilibrium constraints mpec since the mpecs of all producers have to be considered simultaneously and the market clearing process is common to all of them the proposed formulation for maintenance scheduling is an equilibrium problem with equilibrium constraints epec corresponding to a multiple leader common follower game the solution of this epec is a set of equilibria in which none of the producers is able to increase its revenue unilaterally by changing the maintenance periods of its generating units

calculating and using second order accurate solutions of discrete time dynamic equilibrium models we describe an algorithm for calculating second order approximations to the solutions to nonlinear stochastic rational expectations models the paper also explains methods for using such an approximate solution to generate forecasts simulated time paths for the model and evaluations of expected welfare differences across different versions of a model the paper gives conditions for local validity of the approximation that allow for disturbance distributions with unbounded support and allow for non stationarity of the solution process

monetary policy and uncertainty in an empirical small open economy model this paper explores optimal policy design in an estimated model of three small open economies australia canada and new zealand within a class of generalized taylor rules we show that to stabilize a weighted objective of output consumer price in ation and nominal interest variation optimal policy does not respond to the nominal exchange this is despite the presence of local currency pricing and due in large part to observed exchange rate disconnect in these economies optimal policies that account for the uncertainty of model estimates as captured by the parameters posterior distrbution similarly exhibit a lack of exchange rate response in contrast to brainard 1967 the presence of parameter uncertainty can lead to more or less aggressive policy responses depending on the model at hand

reconciling the advantages and liabilities of foreignness towards an identity based framework this article leverages identity theory to address the question of when and how foreignness acts as an advantage and liability for the mne subsidiary applying an organizational identity lens i delineate how subsidiaries manage their foreignness by accentuating and attenuating internal and external organizational attributes drawing on this conceptualization i theorize how an accentuated foreign identity moderates context specific advantages and liabilities in offering a more nuanced understanding of how subsidiaries actively manage their foreignness and its contextual implications an identity based framework helps to both explain and reconcile the advantages and liabilities of foreignness

peer conformity attention and heterogeneous implementation of practices in mnes how do subsidiaries respond to normative demands from both their headquarters and local external constituents we propose that subsidiaries pay varying levels of attention to demands depending on their peers norm conforming behavior resulting in heterogeneous practice implementation we study the implementation of 25 practices associated with three corporate social responsibility csr issues in 101 worldwide subsidiaries of a multinational enterprise mne consistent with the idea that attention is limited and therefore selective we find that external peers conformity to the csr norm directs subsidiaries attention toward the csr related demands of external constituents at the expense of the demands from the headquarters however internal peers conformity increases attention to both external and headquarters demands related to csr as higher attention levels result in higher practice implementation internal and external peers conformity drives the heterogeneity of practice implementation in the mne our results suggest the need to rethink the influence of peers conformity on subsidiaries implementation of practices as it not only triggers mimicry based on legitimacy but also and simultaneously a more strategic response based on internal and external competitive threats and attention allocation

new evidence on the puzzles results from agnostic identification on monetary policy and exchange rates abstract past empirical research on monetary policy in open economies has found evidence of the delayed overshooting puzzle and the forward discount puzzle we revisit the effects of monetary policy on exchange rates by applying uhlig s uhlig h 2005a what are the effects of monetary policy on output results from an agnostic identification procedure journal of monetary economics 52 2 381 419 identification procedure that involves sign restrictions on the impulse responses of selected variables in a first step we leave the response of the exchange rate agnostically open and find sizeable evidence for both puzzles in a second step we additionally rule out the delayed overshooting by construction our results indicate that the forward discount puzzle is robust even without delayed overshooting

uncertainty matters evidence from close elections abstract this paper uses a data rich environment to produce direct econometric estimates of macroeconomic and financial uncertainty for 11 advanced nations these indices exhibit significant independent variation from popular proxies and provide a refinement of the influential work of jurado et al 2015 that results in improved real time performance we use this new data in combination with narrative evidence to jointly identify macro uncertainty and financial shocks macro uncertainty shocks are identified with close elections and financial shocks with financial stress during financial crises we find that macro uncertainty shocks matter for the majority of countries and that the real effects of macro uncertainty shocks are generally larger conditioning on close elections these results are robust to controlling for news shocks and global uncertainty as well as a variety of shocks considered to be important drivers of the business cycle

the macroeconomic impact of oil earnings uncertainty new evidence from analyst forecasts we develop measures of oil earnings uncertainty oeu using analyst forecasts drawn from a large firm level dataset oeu is related to future economic downturns so some oeu measures may serve to forecast future downturns an increase in oeu also has adverse effects on the us oil sector the results are robust to conditioning on aggregate uncertainty at the same time oeu is related to increases in stock prices unlike aggregate uncertainty which has the opposite effect oeu is thus an independent influence on both the oil industry and on economic aggregates

cournot equilibrium considering unit outages and fuel cost uncertainty the cournot model is a common and reasonable approximation to representing strategic competition in electricity markets this paper proposes a nash cournot model in which unit outages and fuel cost volatility are both accounted for the nash equilibrium quantity of each firm is obtained by maximizing its expected profit given the distribution of fuel costs and the availability of generating units the cournot equilibrium problem is formulated as a linear complementarity problem we give a numerical example to show how the price equilibrium quantities and firms profits are affected when outages and fuel cost volatility are ignored

monetary policy and exchange rate volatility in a small open economy we lay out a small open economy version of the calvo sticky price model and show how the equilibrium dynamics can be reduced to a simple representation in domestic inflation and the output gap we use the resulting framework to analyse the macroeconomic implications of three alternative rulebased policy regimes for the small open economy domestic inflation and cpi based taylor rules and an exchange rate peg we show that a key difference among these regimes lies in the relative amount of exchange rate volatility that they entail we also discuss a special case for which domestic inflation targeting constitutes the optimal policy and where a simple second order approximation to the utility of the representative consumer can be derived and used to evaluate the welfare losses associated with the suboptimal rules

dynamic effects of monetary policy shocks on macroeconomic volatility we use a simple new keynesian model with firm specific capital non zero steady state inflation long run risks and epstein zin preferences to study the volatility implications of a monetary policy shock an unexpected increase in the policy rate by 150 basis points causes output and inflation volatility to rise around 10 above their steady state standard deviations var based empirical results support the model implications that contractionary shocks increase volatility the volatility effects of the shock are driven by agents concern about the in ability of the monetary authority to reverse deviations from the policy rule and the results are re enforced by the presence of non zero trend inflation

country and organizational level adaptation to foreign workplace ideologies a comparative study of distributive justice values in china russia and the united states drawing from concepts of cultural distance and cultural propensity to change we predict the convergence divergence or crossvergence of distributive justice values in china and russia as compared with us managers using institutional theory we predict responses by organizational type joint ventures foreign owned vs state owned enterprises soes lastly we develop predictions based on the interaction of culture and organizational type results indicate divergence in china regardless of organizational type in contrast differences by organizational type were observed among russian managers with convergence among managers in joint ventures but continuing divergence among managers in soes implications for theory are discussed

the transfer of japanese style management to american subsidiaries constraints and competencies this paper first reviews the theories of the transfer of japanese management practices overseas the paper then outlines a contingency theoretical model that specifies the factors which are hypothesized to impact the transfer of japanese style hrm practices to overseas subsidiaries qualitative data from a field study of ten japanese subsidiaries in the u s five in the service industry and five in manufacturing are used to illustrate the concepts presented in the theoretical discussion

sustainable competitive advantage combining institutional and resource based views this article suggests that the context and process of resource selection have an important influence on firm heterogeneity and sustainable competitive advantage it is argued that a firm s sustainable advantage depends on its ability to manage the institutional context of its resource decisions a firm s institutional context includes its internal culture as well as broader influences from the state society and interfirm relations that define socially acceptable economic behavior a process model of firm heterogeneity is proposed that combines the insights of a resource based view with the institutional perspective from organization theory normative rationality institutional isolating mechanisms and institutional sources of firm homogeneity are proposed as determinants of rent potential that complement and extend resource based explanations of firm variation and sustainable competitive advantage the article suggests that both resource capital and institutional capital are indispensable to sustainable competitive advantage 1997 john wiley sons ltd

institutional theory and mnc subsidiary hrm practices evidence from a three country study this study sets out to explore human resource management hrm practices in multinational corporation mnc subsidiaries within an institutional theory framework based on a sample of 158 subsidiaries of mncs operating in the united states russia and finland the paper examines factors hypothesised to influence the hrm practices adapted in us japanese and european mnc subsidiaries located in russia finland and the us the results indicate significant differences in hrm practices used across host countries both the status of the subsidiary human resource department and the degree to which the subsidiary was involved in knowledge transfer with other parts of the mnc had a significant impact on the selection of hrm practices

political economy of pension plans impact of institutions gender and culture abstract national pension systems are an important part of financial intermediation and worker welfare in most countries but how and why do they differ internationally controlling for important political economic and social institutions we document that international differences in pension progressivity or how pensions reflect lifetime earnings are negatively related to masculinity uncertainty avoidance individualism long term orientation employment rights average pension levels social trust and economic inequality we also find that pension progressivity is positively related to the economic and societal role of women the extent of catholicism as well as political voice and accountability these results provide important insights for both public policy and mnc managers

international attention and multinational enterprise performance this study examines the performance consequences of international attention defined as the extent to which headquarters executives in the multinational enterprise mne invest time and effort in activities communications and discussions aimed at improving their understanding of the global marketplace using detailed questionnaire and archival data on 135 mnes our analysis revealed three significant findings first international attention can be operationalized as a meta construct that consists of three interrelated and reinforcing dimensions second international attention has a curvilinear inverted u shape relationship with mne performance third the performance benefits of international attention increase with three categories of moderating factors the international assignment experience of top executives the independence of value adding activities across country locations and the degree of industry dynamism

measuring inflation expectations uncertainty using high frequency data inflation expectations play a key role in determining future economic outcomes the associated uncertainty provides a direct gauge of how well anchored the inflation expectations are we construct a model based measure of inflation expectations uncertainty by augmenting a standard unobserved components model of inflation with information from noisy and possibly biased measures of inflation expectations obtained from financial markets this new model based measure of inflation expectations uncertainty is more accurately estimated and can provide valuable information for policymakers using u s data we find significant changes in inflation expectations uncertainty during the great recession

institutional theory and the cross national transfer of employment policy the case of workforce diversity in us multinationals this paper uses a comparative institutionalist approach combined with a power interests perspective to examine the processes whereby diversity policy is internationalised by us multinational companies it argues that the process of policy transfer to uk subsidiaries is complicated by incomplete and contested institutionalisation of diversity within the us itself and by differing conceptions of diversity between the us and the uk the ability of actors within the uk subsidiaries to mobilise and deploy specific power resources allows them to resist the full implementation of corporate diversity policy leading to a range of compromise accommodations it is argued that the findings have more general implications for analysing the transfer of hr practices between national business systems

the international effects of global financial uncertainty shocks abstract in this paper we study the impact of sudden rises in global financial uncertainty on small open economies to this end we extract a global factor from the realised volatilities of about 1000 risky asset returns from around the world we then analyse how shocks to this factor affect economic activity in 44 advanced and emerging small open economies by estimating local projections in a panel regression framework we find that shocks increasing global financial uncertainty have adverse consequences on output trade and unemployment while their impact on nominal variables is more heterogeneous across countries furthermore the effects are more severe in countries with a higher degree of trade or financial openness higher levels of vulnerabilities weaker institutions or during economic downturns

nash equilibrium in strategic bidding a binary expansion approach this paper presents a mixed integer linear programming solution approach for the equilibrium problem with equilibrium constraints epec problem of finding the nash equilibrium ne in strategic bidding in short term electricity markets a binary expansion be scheme is used to transform the nonlinear nonconvex ne problem into a mixed integer linear problem milp which can be solved by commercially available computational systems the be scheme can be applicable to cournot bertrand or joint price quantity bidding models the approach is illustrated in case studies with configurations derived from the 95 gw brazilian system including unit commitment decisions to the price maker agents

the international transmission of volatility shocks an empirical analysis this paper proposes an empirical model which can be used to estimate the international transmission of volatility shocks using this model we estimate that a one standard deviation increase in the volatility of the shock to us real gdp leads to a decline in uk gdp of 1 relative to trend and a 0 7 increase in uk cpi relative to trend at the two year horizon using a nonlinear open economy dsge model we find that these empirical estimates are consistent with the response to a perturbation to the volatility of foreign supply type shocks while an increase in the volatility of demand shocks has a negligible impact

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

unraveling the mne wage premium whereas ib has extensively studied mnes generic positive impact on host economies but rarely on employee wages economics research has only shown an overall mne wage premium we unravel this premium considering multiple levels of analysis and accounting for host country contextual contingencies to unveil mnes different positive or negative distributional effects using unique micro level data from over 40 000 employees in 13 countries we examine mnes distributional effects for employees gender experience and immigrant status the influence of host country property rights protection and labor regulation and interplays with region and industry effects mnes distributional effects show marked differences that largely depend on the host country context and that are positive for experienced and foreign born employees in developed countries but negative for females working in developing countries whereas in developed countries the gender wage gap is smaller in mnes than in domestic firms as hypothesized we find evidence of a larger wage gap in developing countries the analysis also reveals that the higher host countries level of property rights protection the lower the mne wage premium our study points at the need to reassess statements about the generic positive impact of mnes in host countries particularly in developing countries and discusses further research implications

the propagation of uncertainty shocks rotemberg versus calvo this article studies the effects of uncertainty shocks on economic activity focusing on inflation using a vector autoregression i show that increased uncertainty has negative demand effects reducing gdp and prices i then consider standard new keynesian models with rotemberg type and calvo type price rigidities despite the belief that the two schemes are equivalent i show that they generate different dynamics in response to uncertainty shocks in the rotemberg model uncertainty shocks decrease output and inflation in line with the empirical results by contrast in the calvo model uncertainty shocks decrease output but raise inflation because of firms precautionary pricing motive

modes of theorizing in strategic human resource management tests of universalistic contingency and configurational performance predictions the field of strategic human resource management shrm has been criticized for lacking a solid theoretical foundation this article documents that contrary to this criticism the shrm literature

insider ownership human resource strategies and performance in a transition economy researchers and potential investors in transition economies need to understand the human resource management hrm strategies of target firms since human resources are arguably their most valuable assets understanding is difficult however because hrm strategies help to determine firms performance but are in turn influenced by corporate governance particularly insider ownership this paper employs a structural equation modeling methodology to examine the relations between governance hrm strategies and performance in the context of a novel dataset of ukrainian industrial firms it is found that insider ownership is positively associated with high commitment hrm strategies and negatively with low commitment cost cutting hrm strategies cost cutting hrm strategies are in turn associated with weaker firm performance these outcomes correspond broadly with theoretical expectations

optimal simple and implementable monetary and fiscal rules welfare maximizing monetary and fiscal policy rules are studied in a model with sticky prices money and distortionary taxation the ramsey optimal policy is used as a point of comparison the main findings are the size of the inflation coefficient in the interest rate rule plays a minor role for welfare it matters only insofar as it affects the determinacy of equilibrium optimal monetary policy features a muted response to output interest rate rules that feature a positive response to output can lead to significant welfare losses the welfare gains from interest rate smoothing are negligible optimal fiscal policy is passive the optimal monetary and fiscal rule combination attains virtually the same level of welfare as the ramsey optimal policy

common and country specific economic uncertainty abstract we use a factor model with stochastic volatility to decompose the time varying variance of macroeconomic and financial variables into contributions from country specific uncertainty and uncertainty common to all countries we find that the common component plays an important role in driving the time varying volatility of nominal and financial variables the cross country co movement in volatility of real and financial variables has increased over time with the common component becoming more important over the last decade simulations from a two country dsge model featuring epstein zin preferences suggest that increased globalisation and trade openness may be the driving force behind the increased cross country correlation in volatility

unconventional monetary policy and the credit channel in the euro area abstract we disentangle credit supply and demand and we then embed this information into a bayesian threshold var model to investigate the importance of the demand channel and the broad credit channel in the transmission of unconventional monetary policy on the macroeconomy during financial stress periods we find that during such periods ump shocks boost aggregate demand for loans increase agents net worth and revitalize credit to firms and households in addition counterfactual analysis suggests that non standard policy measures aiming at stimulating loan demand and relaxing banks balance sheet constraints would provide a significant support to economic activity prices and the financial sector

investment shocks and business cycles abstract the origins of business cycles are still controversial among macroeconomists this paper contributes to this debate by studying the driving forces of fluctuations in an estimated new neoclassical synthesis model of the u s economy in this model most of the variability of output and hours at business cycle frequencies is due to shocks to the marginal efficiency of investment imperfect competition and to a lesser extent technological frictions are the key to their transmission although labor supply shocks explain a large fraction of the fluctuations in hours at very low frequencies they are irrelevant over the business cycle this finding is important because the microfoundations of these disturbances are widely regarded as unappealing

trend inflation and firms price setting rotemberg versus calvo we compare the calvo and rotemberg price setting mechanisms in a new keynesian model with trend inflation we show that the long run relationship between inflation and output is positive in rotemberg and negative in calvo the dynamics of the two models differ even to a first order approximation positive trend inflation enlarges the determinacy region in the rotemberg model whereas it shrinks it in the calvo model the responses of output and inflation to technology shocks are amplified by trend inflation in calvo whereas they are dampened in rotemberg the two models imply differing non linear adjustments after a disinflation

economic policy uncertainty in the us does it matter for the euro area abstract we investigate the effects of a us economic policy uncertainty shock on some euro area macroeconomic aggregates via structural vars we model the indicators of economic policy uncertainty recently developed by baker et al 2013 jointly with the aggregate price indexes and alternative indicators of the business cycle for the two above indicated economic areas according to our svars a one standard deviation shock to us economic policy uncertainty leads to a statistically significant fall in the european industrial production and prices of 0 12 and 0 06 respectively the contribution of the us uncertainty shock on the european aggregates is shown to be quantitatively larger than the one exerted by an euro area specific uncertainty shock

the changing transmission of uncertainty shocks in the u s this article investigates if the impact of uncertainty shocks on the u s economy has changed over time to this end we develop an extended factor augmented vector autoregression var model that simultaneously allows the estimation of a measure of uncertainty and its time varying impact on a range of variables we find that the impact of uncertainty shocks on real activity and financial variables has declined systematically over time in contrast the response of inflation and the short term interest rate to this shock has remained fairly stable simulations from a nonlinear dynamic stochastic general equilibrium dsge model suggest that these empirical results are consistent with an increase in the monetary authorities antiinflation stance and a flattening of the phillips curve supplementary materials for this article are available online

identifying monetary policy in a small open economy under flexible exchange rates abstract previous empirical study on the effects of monetary policy shocks in small open economies has generated puzzling dynamic responses in various macroeconomic variables this paper argues that these puzzles derive from an identification of monetary policy that is inappropriate for such economies to remedy this it is proposed that a structural model be estimated to explicitly account for the features of the small open economy such a model is applied to canada with tightly estimated results overall the dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the exchange rate as a transmission mechanism

global standardization or national differentiation of hrm practices in multinational companies a comparison of multinationals in five countries drawing on a dataset constructed from a parallel series of nationally representative surveys of multinational companies mncs we compare the performance management pm practices of mncs in the uk ireland canada spain denmark and norway in each country we analyze data relating to mncs from that country and of the foreign affiliates of us mncs we argue that there is evidence of standardization in the nature of practices across countries particularly evident in the analysis of us mncs standardization of practices among mncs is also evident in the rather limited variation in practices between us and indigenous mncs within each country moreover even where there is evidence of variation across and within countries this cannot be fully explained by adaptation to local institutional constraints but rather can be seen as the product of how distinct national contexts can promote the take up of practices

international joint venture partner selection the role of the host country legal environment this study attempts to enhance our understanding of how a host country s legal environment influences international joint venture ijv partner selection criteria empirical results based on survey data collected on 169 ijvs revealed that host country rule of law perceptions negatively influence appropriation and coordination cost concerns which positively influence partner related criteria furthermore these concerns mediate the relationship between perceptions of host country rule of law and partner related criteria

high performance work systems in foreign subsidiaries of american multinationals an institutional model this study examines the implementation of high performance work systems hpwss in 217 subsidiaries of american based multinational enterprises operating in 14 countries in asia africa and europe specifically this paper explores the effect of host country institutional factors on the extent of hpws implementation in subsidiaries and focuses on strong agency influences and dominance effects the proposed model was more successful in explaining the effect of hpwss on rank and file employees than on managers of particular interest is the strong positive association between host country economic growth and hpws implementation which suggests a possible cyclical sensitivity of subsidiaries regarding human resource management strategy

macroeconomic policy uncertainty shocks on the chinese economy a gvar analysis abstractthis article studies the spillovers of economic policy uncertainty epu from developed economies to china in terms of the source extent and persistence by estimating a global vector autoregressive gvar model with both financial and trade variables acting as the transmission channels our findings confirm the existence of international transmissions of policy uncertainty while the patterns differ markedly the us epu appears to be the most significant cause of the fall of export industrial production equity price and exchange rate meanwhile the eu epu is also to be blamed for the depreciation of rmb in contrast to industrial production which shows the largest negative impact chinese inflation increases to a relatively smaller extent with the epu shocks ranking as the us japanese and the eu regardless of the minor impact on a long term interest rate the short term interest rate in china reacts positively to the european and us epu shocks despite the independent national monetary poli

intellectual capital configurations and organizational capability an empirical examination of human resource subunits in the multinational enterprise building on the organizational capabilities literature and theories of the multinational enterprise this paper develops and tests a framework that examines the relationship between intellectual capital configurations and organizational capabilities in human resource hr subunits looking at 187 subunits from 20 mnes findings show that intellectual capital dimensions vary in their usefulness for generating sharing and implementing hr management practices in particular while certain resources may help in the development of one capability they may harm the development of another implications are that an organization s intellectual capital investments will differ depending on the desired capability

equilibria in an oligopolistic electricity pool with stepwise offer curves we study the equilibria reached by strategic producers in a pool based network constrained electricity market the behavior of each producer is modeled by a mathematical program with equilibrium constraints mpec whose objective is maximizing profit and whose complementarity constraints describe market clearing the joint solution of all these mpecs constitutes an equilibrium problem with equilibrium constraints epec the equilibria associated with the epec are analyzed by solving the strong stationarity conditions of all mpecs which can be linearized without approximation by mixed integer linear programming milp techniques the resulting mixed integer linear conditions can be reformulated as an optimization problem that allows establishing diverse objectives to differentiate among alternative equilibria

influences on human resource management practices in multinational corporations a study of human resource management practices in 249 u s affiliates of foreign based multinational corporations mncs shows that in general affiliate hrm practices closely follow local practices with differences among specific practices the degree of similarity of local practices is significantly influenced by the method of founding dependence on local inputs the presence of expatriates and the extent of communication with the parent in addition sharp differences are revealed among affiliates of canadian japanese and european mncs suggesting strong country effects together these findings support the view of mncs as composed of differentiated practices which in turn are shaped by forces for local isomorphism and for internal consistency

exercise of market power on ramp rate in wind integrated power systems with an increasing penetration of wind power there is likely to be an increasing need for fast ramping generating units these generators ensure that no load is lost if supply drops due to the uncertainties in wind power generation however it is observed in practice that in a presence of network constraints fast ramping generating units are prone to act strategically and exercise market power by withholding their ramp rates in this paper we model this gaming behavior on ramp rates we assume a market operator who collects bids in form of marginal costs quantities and ramp rates he runs a ramp constrained economic dispatch given the generators bids forecasted demand and contingencies following the game theoretic concepts we set up a multi level optimization problem the lower level problem is the ramp constrained economic dispatch and the higher level represents the profit maximization problems solved by strategic generators the whole problem is formulated as an equilibrium problem with equilibrium constraints epec the outcome of the epec problem is a set of nash equilibria to tackle the multiple nash equilibria problem the concept of the extremal nash equilibria is defined and formulated we model the concept of extremal nash equilibria as a single stage mixed integer linear programming problem milp and demonstrate the application of this mathematical framework on an illustrative case and on a more realistic case study with tractable results

economic valuation of reserves in power systems with high penetration of wind power this paper proposes a methodology to determine the required level of spinning and nonspinning reserves in a power system with a high penetration of wind power the computation of the required reserve levels and their costs is achieved through a stochastic programming market clearing model spanning a daily time horizon this model considers the network constraints and takes into account the cost of both the load shedding and the wind spillage the methodology proposed is illustrated using an example and a realistic case study some conclusions are finally drawn

finding equilibria in the pool based electricity market with strategic wind power producers and network constraints this paper proposes a model to find the equilibria in the short term electricity market with large scale wind power penetration the behavior of each strategic player is modeled through a two stage mathematical problem with equilibrium constraints mpec where the upper level problem maximizes the profit of the strategic player and the lower level problem describes the clearing processes of the day ahead and real time markets while considering the network constraints the joint solution of all the mpecs constitutes an equilibrium problem with equilibrium constraints epec the uncertain wind power production and demand are represented by a set of plausible scenarios by using the duality theory and karush kuhn tucker condition each mpec is transferred into a mixed integer linear programing problem the nash equilibria of the electricity market are obtained by solving the epec using game theory and the diagonalization algorithm case studies are performed to show the effectiveness of the proposed model

social network effects on the extent of innovation diffusion a computer simulation of innovation diffusion no longer focus exclusively on explaining the rate at which innovations diffuse or the sequence in which they are adopted they also focus on explaining why certain innovations diffuse extensively be coming de facto standards whereas others do so partially or not at all many of these theories specify a bandwagon process a positive feedback loop in which increases in the number of adopters create stronger bandwagon pressures and stronger bandwagon pressures in turn cause increases in the number of adopters factors affecting if and how many times this feedback loop cycles explain if and how many potential adopters jump on a bandwagon we argue that one important factor has not yet been incorporated into theories explaining bandwagons extent the structure of social net works through which potential adopters of innovations find out information about these innovations which can cause them to adopt these innovations we advance a theory of how the structure of social networks affects bandwagons extent we propose that both the number of network links as well as small seemingly insignificant idiosyncracies of their structures can have very large effects on the extent of an innovation s diffusion among members of a social network

strategic generation investment using a complementarity approach this paper provides a methodology to assist a strategic producer in making informed decisions on generation investment a single target year is considered with demand variations modeled through blocks the strategic behavior of the producer is represented through a bilevel model the upper level considers both investment decisions and strategic production actions and the lower level corresponds to market clearing prices are obtained as dual variables of power balance equations rival uncertainties on offering and investment are characterized through scenarios the resulting model is a large scale mixed integer lp problem solvable using currently available branch and cut techniques results pertaining to an illustrative example and a case study are reported and discussed

were there regime switches in u s monetary policy working paper 2004 14 june 2004 abstract a multivariate model identifying monetary policy and allowing for simultaneity and regime switching in coefficients and variances is confronted with u s data since 1959 the best fit is with a model that allows time variation in structural disturbance variances only among models that also allow for changes in equation coefficients the best fit is for a model that allows coefficients to change only in the monetary policy rule that model allows switching among three main regimes and one rarely and briefly occurring regime the three main regimes correspond roughly to periods when most observers believe that monetary policy actually differed and the differences in policy behavior are substantively interesting though statistically ill determined the estimates imply monetary targeting was central in the early 80s but was also important sporadically in the 70s the changes in regime were essential neither to the rise in inflation in the 70s nor to its decline in the 80s jel classification e52 e47 c53 key words counterfactuals lucas critique policy rule monetary targeting simultaneity volatility model comparison i the debate over monetary policy change in an influential paper clarida gali and gertler 2000 cgg presented evidence that us monetary policy changed between the 1970 s and the 1980 s indeed that in the 70 s it was drastically worse they found that the policy rule apparently followed in the 70 s was one that when embedded in most stochastic general equilibrium models would imply non uniqueness of the equilibrium and hence vulnerability of the economy to sunspot fluctuations of arbitrarily large size their estimated policy rule for the later period on the other hand eliminated this indeterminacy these results are a possible explanation of the volatile and rising inflation of the 70 s and of its subsequent decline the cgg analysis has two important weaknesses one is that it fails to account for stochastic volatility us macroeconomic variables and particularly the federal funds rate have gone through periods of tranquility and of agitation with forecast error variances varying greatly from period to period ignoring such variation does not lead to inconsistent estimates of model parameters when the forecasting equations themselves are constant but it strongly biases toward a finding of changed parameters tests of the stability of the forecasting equations the other weakness is that the cgg analysis rests on powerful and implausible identifying assumptions they require that we accept that the response of the monetary authority to expected future inflation and output does not depend on the recent history of inflation money growth or output it is hard to understand why this should be so especially in the 70 s when monetarism was a prominent theme in policy debates congress was requiring reports from the fed of projected time paths of monetary aggregates and financial markets were reacting sensitively to weekly money supply numbers the requirement for existence and uniqueness of equilibrium in dynamic models is that the monetary policy rule show a more than unit response of interest rates to the sum of the logs of all nominal variables that appear on the right hand side of the reaction function if we force a particular measure of expected future inflation to proxy for all the nominal variables that actually appear independently in the reaction function we are bound to get distorted conclusions on the one hand because expected future inflation will be a noisy measure of the full set of nominal influences on policy we might get downward bias in our estimates from the usual errorsin variables effect on the other hand to the extent that expected future inflation like most expected future values shows less variation than current nominal variables we could find a mistaken scaling up of coefficients

the effect of human resource management practices on mnc subsidiary performance in russia this study investigates the relationship between human resource management hrm and the performance of 101 foreign owned subsidiaries in russia the study s results provide support for the assertion that investments in hrm practices can substantially assist a firm in improving performance further different hrm practices for managerial and non managerial employees are found to be significantly related to firm performance only limited support however is obtained for the hypothesized relationship between efforts at aligning hrm practices with firm strategy and subsidiary performance

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

how international oil and gas companies respond to local content policies in petroleum producing developing countries a narrative enquiry this paper uses narrative analysis to critically examine the business practices used by five international oil and gas companies iocs chevron exxonmobil shell bp and total to respond to local content policies in petroleum producing developing countries nigeria angola venezuela kazakhstan brazil indonesia yemen and indonesia during the period 2000 2012 the business practices include the formulation of local content strategies that are implemented through programmes and initiatives aimed at developing and using host country suppliers and workforce such practices and the narratives used to communicate them implicitly reflect the context in which the effectiveness of local content policies on economic development can be assessed by comparing and contrasting the narratives across the five iocs in relation to the wider literature four emergent narrative strategies justifying the business practices of iocs are identified and discussed they include 1 direct engagement to renegotiate local content requirements with governments 2 legal compliance framework 3 the business case for local content strategies and 4 corporate social responsibility csr initiatives the conclusion considers the policy implications of these findings for local content development in petroleum producing developing countries

international spillovers of policy uncertainty using the baker et al 2013 index of policy uncertainty for six developed countries this paper estimates spillovers of policy uncertainty we find that spillovers account for slightly more than one fourth of the dynamics of policy uncertainty in these countries with this share rising to one half during the financial crisis the us and uk are responsible for a large fraction of the spillovers since the financial crisis while the remaining countries are all net receivers of policy uncertainty shocks during and after this period

international human resource strategy and its determinants the case of subsidiaries in taiwan this paper explores how the tension between global integration and local responsiveness affects the dimensions and determinants of international human resource ihr strategy to accomplish this jarillo and martinez s 1990 business strategy framework for parents and their subsidiaries was recast in an ihr strategy setting then the relationships between the two dimensions of ihr strategy that emerged global integration and local responsiveness and a set of interorganizational interdependency variables were explored several new and informative associations between the interorganizational interdependency variables subsidiaries dependence on parent s resources local resources and hot institutions and ihr strategy were observed in a sample of one hundred subsidiaries of japanese u s and european mncs operating in taiwan

theoretical foundations of emerging economy business research in probing theoretically into central and eastern europe transactions resources and institutions we outlined the contributions of research in central and eastern europe cee to theoretical debates in business research in this retrospective we reflect upon the evolution of the field over the past decade with the fading impact of cee s distinct shared history we suggest that cee best be analyzed as emerging economies rather than as a distinct geographic entity emerging economy business research is converging on common themes and shared theoretical ideas while identifying critical variations that constrain generalizations among and beyond emerging economies this research thus highlights the need to develop a better understanding of the boundary conditions of scholarly theories of business knowledge over the past decade the institution based view has emerged from distinct intellectual traditions in institutional economics organizational theory and the analysis of business government bargaining research in these converging lines of theorizing places contextual variations at the center of explanations of business phenomena around the world we suggest that the institution based view is evolving toward a paradigm and offer suggestions on how to advance this research agenda further in particular by exploring how firms engage with different sets of potentially conflicting institutions at multiple levels and locations

impact of global uncertainty on the global economy and large developed and developing economies global uncertainty shocks are associated with a sharp decline in global inflation growth and interest rate global uncertainty shocks have more protracted statistically significant and substantia