the demand for gasoline abstract sufficient time must be allowed to elapse to assess fully the response of gasoline demand to price changes hitherto empirical work on the subject has generally not examined the period beyond 1975 moreover the extant time series studies concentrate almost exclusively on the usa this study extends both the observation period and the country coverage a vehicle stock adjustment model is estimated via its reduced form without explicit consideration of the vehicle stock itself however the estimation procedure incorporates the structure by way of constraints on the parameters cross section analysis offers additional evidence concerning the truly long run price elasticity the results suggest that there is no need to resort to elaborate models to explain adequately gasoline demand gasoline demand exhibits a long run price elasticity near unity with time lags exceeding six years while there is tentative evidence that the duration of these lags is not fixed

creation adoption and diffusion of innovations by subsidiaries of multinational corporations this paper reports some of the findings of a multi phased and multi method study on the organizational attributes that facilitate creation adoption and diffusion of innovations by subsidiaries of multinational companies comparison of results obtained through case research in nine companies multiple respondent questionnaire surveys in three companies and a single respondent survey in 66 north american and european multinationals reveal unambiguous and positive impacts of normative integration through organizational socialization and dense intra and inter unit communication on an mnc subsidiary s ability to contribute to the different innovation tasks the findings are less consistent with regard to the effects of local resources and autonomy and it appears that the influences of these two attributes are strongly mediated by the levels of normative integration and organizational communication

environmental influences on mne subsidiary roles economic integration and the nordic countries we seek to examine the importance of environmental factors in determining mne subsidiary roles in particular we examine the environmental factors associated with deep integration schemes such as the eu such schemes require a convergence of economic structure due to the establishment of common regional institutions regulations and policies specifically we distinguish between the scope of activities performed by subsidiaries and the level of competence of those subsidiaries the empirical analysis is based on a large scale survey of foreign owned units in denmark finland and norway these nordic countries differ with regard to their eu membership status norway being the outsider while the others are members but are very similar to each other in most other respects our data show that subsidiaries in norway report significantly lower scores for both scope of activities and levels of competence the effects remain strong even when we are controlling for other potentially influential factors the findings indicate that being on the outside of the eu may indeed carry the price of becoming less attractive to mne activity

foreign research and development in swedish multinationals abstract in 1987 sweden s 20 largest multinationals together operated some 170 foreign rd 2 market proximity i e adaptation of centrally developed products and processes to local market conditions 32 3 exploitation of foreign rd 4 political factors i e environmental factors more or less directly influenced by government action 34 the remaining 20 of employment seemed to be motivated by a combination of factors the primary aim of the first three types of foreign r d units is to enhance a company s competitive position in ways not possible from a domestic location hence they should be little cause of concern for swedish policy makers

indicators for sustainable energy development a multivariate cointegration and causality analysis from tunisian road transport sector this paper studies causal mechanism between indicators for sustainable energy development related to energy consumption from tunisian road transport sector the investigation is made using the johansen cointegration technique and the environmental kuznets curve ekc approach it examines the nexus between transport value added road transport related energy consumption road infrastructure fuel price and co2 emissions from tunisian transport sector during the period of 1980 2010 empirical results show that road transport related energy consumption transport value added transport co2 emissions and road infrastructure are mutually causal in the long run these results do not support the hypothesis of neutrality between energy and income for the tunisian road transport sector also there is a unidirectional causality running from fuel price to road transport related energy consumption with no feedback in both the short and long runs the fuel price and the road infrastructure are significant in the causal chain though the estimated long run cointegrated equation we conclude that there is an inverse n shaped relation between transport value added and transport co2 emissions with income turning point respectively equal to 75 and 579 constant 2000 tnd prices therefore our empirical findings refute the hypothesis of an inverted u shaped ekc for transport co2 emissions in tunisia the findings of this study have a number of policy implications economic growth environmental degradation energy and transportation policies should be recognized in order to improve the energy efficiency in transport sector all measures that should reduce petroleum consumption and greenhouse gas emissions without affecting economic growth may be undertaken the policymakers in tunisia should plan urban transport relocate production units improve fuel efficient vehicles and reinforce legislation on controlling emissions in order to copying with policies based on low carbon development and climate resilient strategies

innovation and trade with endogenous market failure the case of genetically modified products a partial equilibrium two country model is developed to analyze implications from the introduction of genetically modified gm products in the model innovators hold proprietary rights farmers are competitive adopters some consumers deem gm food to be inferior in quality to traditional food and the mere introduction of gm crops affects the costs of non gm food because of costly identity preservation among the results derived it is shown that although gm innovations have the potential to improve efficiency some groups can be made worse off indeed it is even possible that the costs induced by gm innovations outweigh the efficiency gains

hormone beef chlorinated chicken and international trade abstract we study international trade in innovative goods subject to uncertain consumer health effects such goods are often at the center of international trade disputes we show that an interesting form of protectionism may arise because of scientific uncertainty a free riding effect is identified implying more conservative behavior by countries we also study the role of producers lobbies in providing valuable information finding that the innovative lobby has an advantage in providing information as compared with the lobby producing the traditional good moreover lobbies disclose more information when the health effects are long lasting

international connectedness and local disconnectedness mne strategy city regions and disruption much of the rising international connectedness of city regions has developed from mnes replacing local connections with superior international ones this often creates local disconnectedness that energizes the current populist backlash against mne activities we develop approaches to new ib theory addressing the interdependencies of mnes and city regions that we propose as a crucial avenue for future research we contrast two generic mne strategies the first is the traditional one the global orchestration of resources and markets we argue that it exacerbates local disconnectedness the second that we call local spawning involves engaging with the local entrepreneurial eco system to create and renew local connectedness diffusing populist responses some mnes are better able to implement a local spawning strategy due to industry factors like innovation clock speed and firm characteristics like organizational path dependency finally we distinguish between disconnection which is an outcome of mne strategy and global disruptions like the coronavirus covid 19 pandemic which are primarily stochastic events addressing disconnections requires mnes to re orient their strategies while dealing with disruptions requires undertaking risk mitigation we present empirical evidence from city regions around the world to illustrate our theory

future governance of innovation policy in europe three scenarios in europe public research technology and innovation policies are no longer exclusively in the hands of national authorities increasingly national initiatives are supplemented by or even competing with regional innovation policies or transnational programmes in particular the activities of the european union at the same time industrial innovation increasingly occurs within international networks are we witnessing a change of governance in european innovation policy based on a set of hypotheses concerning the co evolution of political systems and innovation systems in europe the paper speculates about the future governance of innovation policies trying to pave the ways for empirical analyses it sketches three scenarios stretching from 1 the idea of an increasingly centralised and dominating european innovation policy arena to 2 the opposite i e a progressive decentralisation and open competition between partly strengthened partly weakened national or regional innovation systems and finally to 3 the vision of a centrally mediated mixture of competition and co operation between diverse regional innovation cultures and a related governance structure

estimating the marginal abatement cost curve of co2 emissions in china provincial panel data analysis abstract this paper estimates the marginal abatement cost curve macc of co2 emissions in china based on a provincial panel for the period of 2001 2010 the provincial marginal abatement cost mac of co2 emissions is estimated using a parameterized directional output distance function four types of model specifications are applied to fit the mac carbon intensity pairs the optimal specification controlling for various covariates is identified econometrically a scenario simulation of china s 40 45 carbon intensity reduction based on our macc is illustrated our simulation results show that china would incur a 559 623 yuan t roughly 51 57 increase in marginal abatement cost to achieve a corresponding 40 45 reduction in carbon intensity compared to its 2005 level

watching the fuel gauge an international model of automobile fuel economy utilizing a new international data set and a non linear maximum likelihood model this study analyses the role of fuel prices income government taxation and technological change in influencing the consumers choice of fuel economy the results of this study imply that the consumers choice of automobile fuel efficiency is less sensitive to fuel prices and income than previously believed this inelasticity of the demand for fuel economy is important to consider when evaluating the potential impact of higher fuel economy mandates or higher fuel taxes this study also found that fuel price differentials and differences in the level of automobile purchase and registration taxes account for most of the difference in automobile fuel economy across countries

cost functions and duality for stochastic technologies cost functions dual to stochastic production technologies are derived and their properties are discussed these cost functions are shown to be consistent with expected utility maximization without placing serious structural restrictions on the underlying technology

intellectual property protection market orientation and location of overseas r d activities by multinational enterprises abstract this paper develops an analytical framework to explain the determinants of location of overseas research and development r d by multinational enterprises mnes in terms of the nature and extent of foreign direct investment fdi and host country resources and policy regimes empirical findings for us mnes suggest that mnes prefer to locate their r d activities in countries that are able to offer them among other things larger markets technological resources and infrastructure host market oriented affiliates are more likely to have r d units than the export oriented ones especially in developing countries the relative strength of the patent regime appears to affect the direction rather than the magnitude of r d investments made in a country

who do consumers trust for information the case of genetically modified foods to be effective groups that disseminate information need the trust of consumers when multiple groups provide conflicting information on a new product or process like gm foods consumers place different levels of trust in the various sources we present a model of the contributions of personal and social capital of a consumer and test a multinominal logit model of relative trust in five different sources of information on genetic modification using a unique data set among our findings is that an increase in consumer s education lowers the probability of trusting information from government private industry organizations consumer and environmental groups or other sources relative to information from an independent third party source and conservative religious affiliation reduces the odds of a consumer trusting private industry organization and increases the odds of trusting nobody relative to an independent third party source

ambiguity aversion and incompleteness of financial markets it is widely thought that incomes risks can be shared by trading in financial assets but financial assets typically carry some risk idiosyncratic to them hence disposing incomes risk using financial assets will involve buying into the inherent idiosyncratic risk however standard theory argues that diversification would reduce the inconvenience of idiosyncratic risk to arbitrarily low levels this argument is less robust than what standard theory leads us to believe ambiguity aversion can exacerbate the tension between the two kinds of risks to the point that classes of agents may not want to trade some financial assets thus theoretically the effect of ambiguity aversion on financial markets is to make the risk sharing opportunities offered by financial markets less complete than it would be otherwise

gasoline demand revisited an international meta analysis of elasticities meta analysis is used to determine if there are factors that systematically affect price and income elasticity estimates in studies of gasoline demand four econometric models are estimated using long run and short run price and income elasticity estimates from previous studies as the dependent variables explanatory variables include functional form lag structure time span national setting estimation technique and other features of the model structure elasticity estimates are found to be sensitive to the inclusion or exclusion of some measure of vehicle ownership static models appear to overestimate short run elasticities underestimate long run price elasticities but pick up the full long run income responsiveness there is variation in the elasticity of demand across countries especially in the short run and gasoline demand appears to be getting more price elastic and less income elastic over time

firm capabilities technological dynamism and the internationalisation of innovation a behavioural approach we develop a behavioural framework of bounded rational decision making under uncertainty to analyse the role of technological dynamism in the firm s environment for its decision to internationalise innovation applying prospect theory we argue that technological uncertainty in the firm s environment affects its risk preferences differently depending on its technological capabilities a key prediction is that firms with low capabilities will internationalise innovation when faced by technological uncertainty while firms with high capabilities will concentrate their innovation at the home base we also argue that our behavioural approach based on prospect theory is not a stand alone programme but benefits from the integration with traditional concepts in ib in particular we make a case that organisational measures fostering absorptive capacity such as intensive personnel exchange between headquarters and subsidiaries can help to attenuate the high capability firms tendency to concentrate innovation at the home base when faced by high uncertainty we corroborate the predictions of our framework based on data from the german part of the community innovation survey

effects of land use and transportation policies on the spatial distribution of urban energy consumption in brazil abstract we evaluate the spatial effects of urban land use and transportation policies on energy consumption in the brazilian economy the model developed in this paper treats as endogenous the urban spatial distribution of residential location structure density commuting behavior and energy use facilitating a general equilibrium energy accounting of policies affecting transportation costs or land use we calibrate this model with respect to five monocentric brazilian cities in order to assess the implications three distinct policies a change in the gasoline price vehicle fuel efficiency regulations and a change in the price of agricultural land gasoline price increases reduce energy consumption directly though reduced commuting and indirectly through higher residential density on the other hand while fuel efficiency regulations reduce energy consumption in total the direct effect is somewhat offset by the indirect effect of sprawl which increases energy consumption increases to the price of agricultural land increase the energy efficiency of the city by increasing density and shortening commutes

application of flexible function forms in climate change research theoretical regularity and model selection abstract demand systems are widely applied to the energy and fuel demand research as result of growing concerns over climate change and global warming especially these issues in cities however in existing literature on consumer demand the authors too often ignore the theoretical regularity conditions or do not report the results of full regularity checks as a consequence the duality theory and second order conditions for optimizing behavior are invalid in face of the real world problem and the conclusions or suggestions proposed based on the empirical researches are thereby inappropriate and even misleading driven by the gap between theoretical models and practical problems we estimate the demand for road passenger transport in china which is considered to be one of the most important sources of air pollution in city using three flexible functional forms the rotterdam model the almost ideal demand system aids and the quadratic aids quaids we focus on all theoretical regularities positivity monotonicity curvature adding up homogeneity and symmetry and argue that unless there is a coincidence flexible functional forms are subject to certain theoretical regularities and that all these regularities are equally important both in theory and in practice empirical estimation shows that the aids model is the only model that is able to provide theoretically consistent estimation of the demand for road passenger transport in china our results also imply that the private transportation is elastic in price changes compared to urban public transportation and intercity public transportation we bridge the gap between theoretical modelling and empirical research on consumer energy fuel demand especially in the research about consumer demand for energy intensive products and services our study points out a crucially important fact that the researchers and policy makers must pay attention to the regularities of the theoretical modelling in the practical applications

the value of a statistical life under ambiguity aversion abstract the paper shows that ambiguity aversion increases the value of a statistical life if the marginal utility of an increase in wealth is larger if one is alive rather than dead intuitively ambiguity aversion has a similar effect as an increase in the perceived baseline mortality risk and thus operates as the dead anyway effect a numerical example suggests however that ambiguity aversion cannot justify the substantial ambiguity premium apparently embodied in environmental policy making the paper also shows that ambiguity aversion decreases the marginal cost of individual self protection effort but may well decrease its marginal benefit so that the total effect of ambiguity aversion on self protection is unclear

densification what does it mean for fuel poverty and energy justice an empirical analysis energy is increasingly at the forefront of the global political agenda while there is a longstanding literature relating to fuel poverty and increasingly energy justice there remains little evidence which explores its link with the urban form specifically the purpose of this study is to explore the relationship between the urban consolidation hypothesis and the cultivation of energy justice in australia this study uses data from the household income and labour dynamics in australia hilda survey years 2007 2014 a national probability sample and indefinite life panel the substantive findings of this study demonstrate that for low income and renting households greater urban density corresponds to a higher likelihood of experiencing fuel poverty further for households with a dwelling type described as an apartment two or three storeys there is a separate and quite generalisable indication that this type of dwelling is associated with a lower likelihood of experiencing fuel poverty this study connects the debate regarding urban consolidation and energy consumption to the fuel poverty and energy justice literature alongside this contribution this study also provides policymakers and planners with new evidence to inform remediation policies that are directed at supporting the fuel poor

pareto optimal trade in an uncertain world gmos and the precautionary principle optimal trade policy in an uncertain world is examined decision maker attitudes toward uncertainty are represented in terms of the gilboa schmeidler 1989 maximin expected utility mmeu model the central result is that in a two country general equilibrium setting with both trading partners possessing an mmeu preference structure pareto optimality can require one trading partner to absorb all uncertainty in the economy if its set of priors is a subset of its trading partners an immediate corollary is that autarky is pareto optimal if the trading partner with the more inclusive set of priors either chooses or is endowed with a nonstochastic technology

technological internationalisation in the electro technical industry a cross company comparison of patenting patterns 1986 2000 abstract this paper addresses the issue of r d internationalisation of two multinationals in the electro technical industry ge and abb by means of a patent data analysis the overwhelming majority of both companies r d activities are concentrated in western europe and north america the locational overlap between the two firms activities is small these results are consistent with findings from earlier studies that 1 there is little evidence to suggest that the production of technology is globalised in a general sense and 2 that tapping knowledge from an industry s global lead location plays a very limited role in foreign r d investments

household adjustment to gasoline price change an analysis using 9 years of us survey data this paper examines the dynamics and composition of household adjustment to changes in the real price of gasoline using a panel of us households by decomposing the demand for gasoline into the demand for vehicle miles traveled and the demand for household composite miles per gallon we are able to add rich detail to the description of how households respond to gasoline price changes while obtaining total price elasticity estimates well within the range found in the literature we find that consumers initially respond to a price rise with a much larger decrease in consumption than would be indicated by the total elasticity in addition households respond to price changes by adjusting vehicle miles traveled more than composite miles per gallon in the year after a price change

implementing global strategy characteristics of global subsidiary mandates implementing a global strategy requires coordinating subsidiary activities across country locations the assumption often made is that such coordination must be managed at headquarters however an alternate approach is decentralized centralized responsibilities in which different subsidiaries within the multinational are given worldwide mandates to manage specific products or products lines this study identifies subsidiary characteristics that are associated with receiving a global mandate by examining foreign subsidiaries located in france germany japan u k u s and canada

the effect of population density road network density and congestion on household gasoline consumption in u s urban areas abstract this paper applies both semiparametric and parametric approaches to explore the effect of population density freeway road density and congestion on household gasoline consumption in u s urban areas while controlling for household demographic and economic characteristics regression results indicate that households living in those urban areas with higher freeway densities higher levels of congestion or lower population densities consume more gasoline

the globalisation of technology a new taxonomy book synopsis international management of research and development brings together the most influential contributions to managing organising and coordinating r d and innovation on a global scale in addition to papers on the fundamental principles trends and drivers of international r d it covers strategies and operations of global r d it also provides an introduction to modern concepts such as knowledge networks open innovation and virtual innovation it is a key reference collection for professors researchers and practitioners

technology sourcing versus technology exploitation an analysis of us foreign direct investment flows the traditional paradigm of foreign direct investment fdi suggests that fdi is undertaken principally to exploit some firm specific advantage in a foreign country which provides a locational advantage to the investor however recent theoretical work suggests a model of fdi in which the motivation is not to exploit existing technological advantages in a foreign country but to access such technology and transfer it from the host economy to the investing multinational corporation via spillover effects this paper tests the technology sourcing versus technology exploiting hypotheses for a panel of sectoral fdi flows between the united states and major oecd nations over a 15 year period the research makes use of patel and vega s research policy 28 145 55 1999 taxonomy of sectors which are likely a priori to exhibit technology sourcing and exploiting behaviour respectively while there is evidence that fdi flows into the united states are attracted to r and d intensive sectors very little support is found for the technology sourcing hypothesis either for inward or outward fdi flows the results suggest that in aggregate firm specific ownership effects remain powerful determinants of fdi flows

why are companies offshoring innovation the emerging global race for talent this paper empirically studies determinants of decision by companies to offshore innovation activities it uses survey data from the international offshoring research network project to estimate the impact of managerial intentionality past experience and environmental factors on the probability of offshoring innovation projects the results show that the emerging shortage of highly skilled science and engineering talent in the us and more generally the need to access qualified personnel are important explanatory factors for offshoring innovation decisions moreover contrary to drivers of many other functions labor arbitrage is less important than other forms of cost savings the paper concludes with a discussion of the changing dynamics underlying offshoring of innovation activities suggesting that companies are entering a global race for talent

linking fdi motivation and host economy productivity effects conceptual and empirical analysis we develop a taxonomy that relates foreign direct investment fdi motivation technology and cost based to its anticipated effects on host countries domestic productivity we then empirically examine the effects of fdi into the united kingdom on domestic productivity and find that different types of fdi have markedly different productivity spillover effects which are consistent with the conceptual analysis the uk gains substantially only from inward fdi motivated by a strong technology based ownership advantage as theory predicts inward fdi motivated by technology sourcing considerations leads to no productivity spillovers

the politics of technological upgrading international transfer to and adaptation of gm cotton in argentina summary we describe patterns of international transfer to and adaptation of genetically modified gm cotton in argentina and ask whether political bargaining between the technology owner a multinational enterprise mne and host country actors may have influenced upgrading we suggest that the mne was able to use its exclusive capacity to upgrade gm cotton technologies as a negotiation tool to persuade host actors to change the rules that affected its multi lines of business in the country this implies wider policy scope to encourage technology upgrading host actors could negotiate over a wider range of aspects of interest to mnes

is knowledge power knowledge flows subsidiary power and rent seeking within mncs in recent years as multinational corporation mnc subsidiaries have become more closely linked to international networks their knowledge intensity has risen and some of their r d has gained a more creative role simultaneously and often connectedly many subsidiaries have acquired considerable strategic independence in all aspects of their operations and therefore are able to exercise considerable intra firm bargaining power to influence the distribution of the firm s resources in this context we suggest that intra mnc knowledge flows are a key determinant of subsidiary bargaining power we argue that subsidiary managers can exploit such power to pursue their own ends such rent seeking behavior is implicit in much of the literature on managerialism but our analysis suggests that such behavior can now occur in headquarters subsidiary and subsidiary subsidiary relations thus subsidiary strategic independence designed to enhance the competitiveness of outputs market knowledge and inputs asset seeking and learning can be corroded when the pursuit of subsidiary objectives encourages rent seeking empirical analysis of a sample of high technology subsidiaries in the uk provides strong support for the theory we examine several avenues whereby the incentives of units within the mnc can be aligned

analysing gasoline demand elasticities a survey this paper is a survey of studies on gasoline demand although there are very many dxerent studies in this eld which sometimes appear to arrive at contradictory results we find that with proper stratification of studies by model and data type much of the contict turns to consensus in this survey we classtfy studies by data type and by ten d erent categories of model and with the exception of estimates on seasonal data which tend to be unstable and of certain inappropriate model formulations we find a fair degree of agreement concerning average short run and even long run income and price elasticities

estimating the effect of urban density on fuel demand much of the empirical literature on fuel demand presents estimates derived from national data which do not permit any explicit consideration of the spatial structure of the economy intuitively we would expect the degree of spatial concentration of activities to have a strong link with transport fuel consumption the present paper addresses this theme by estimating a fuel demand model for urban areas to provide a direct estimate of the elasticity of demand with respect to urban density fuel demand per capita is decomposed into car stock per capita fuel consumption per kilometre and annual distance driven per car per year urban density is found to affect fuel consumption mostly through variations in the car stock and in the distances travelled rather than through fuel consumption per kilometre

a more robust definition of subjective probability the goal of choice theoretic derivations of subjective probability is to separate a decisionmaker s underlying beliefs subjective probabilities of events from their preferences attitudes toward risk classical derivations have all relied upon some form of the marschak samuelson independence axiom or the savage sure thing principle which imply that preferences over lotteries conform to the expected utility hypothesis this paper presents a choice theoretic derivation of subjective probability in a savage type setting of purely subjective uncertainty which neither assumes nor implies that the decisionmaker s preferences over lotteries necessarily conform to the expected utility hypothesis copyright 1992 by the econometric society

r d activities in affiliates of swedish multinational enterprises the fact that multinational enterprises mnes do not undertake all their research and development r d activities at home has become a matter of recent concern both in the home and host countries of these companies some empirical work has been done on the question of why mnes decentralize their rd see mansfield et al 1979 lall 1979 h akansson 1980 and hirschey and caves 1981 to the best of my knowledge the study by hwkansson 1980 is the only one that deals with the determinants of the r d intensity of mne affiliates but it is confined to subsidiaries that carry out r d while foreign affiliates that do not are excluded 2 furthermore the analysis does not take into account the characteristics of the mne to which the affiliates belong our study investigates the factors that explain the r d intensity of foreign subsidiaries of swedish mnes using data for 1978 following haikansson 1980 we concentrate on the technological capabilities developed at the subsidiary level but in contrast to him we take into account both affiliate host country and parent company characteristics furthermore our sample includes those foreign affiliates that do not perform r d which leads us to use a tobit model the study proceeds as follows section ii focuses on some factors of importance in determining the amount of research activity carried out by foreign affiliates in section iii we present the data and describe the model and method of estimation used the empirical results are presented in section iv we draw the main conclusions in section v

historical evolution of technological diversification a positive relationship exists between national technological size and technological diversification across fields of innovative activity this paper shows how the nature of this relationship has changed historically there has been a downward structural shift in the cross country size diversification frontier since 1965 for any given size countries have become less diversified or more narrowly concentrated in their technological specialisation one explanation is that international technology sourcing by mnes has led locations to focus on what they do best a supporting factor may be a rise in technological interrelatedness which encourages focus upon a specific selection of complementary combinations

gasoline demand in the oecd an application of pooling and testing procedures abstract this study utilizes a pooled inter country data set finding the long run price elasticity falls in the range 0 55 to 0 9 depending on the choice of pooled estimators the estimators included the ols within and between country estimators plus five feasible gls estimators even allowing for a ten year distributed lag on price to reflect changes in auto efficiency characteristics the within country estimator yields appreciably more inelastic estimates than did the o s estimator which was heavily influenced by the between or inter country variation this difference raises intriguing questions for future research

risk aversion in the theory of expected utility with rank dependent probabilities expected utility with rank dependent probability theory is a model of decision making under risk where the preference relations on the set of probability distributions is represented by the mathematical expectation of a utility function with respect to a transformation of the probability distributions on the set of outcomes this paper defines based on g teaux differentiability measures of risk aversion for such preferences which characterize the relation more risk averse and applies these measures to the analysis of unconditional and conditional portfolio choice problems

scientific progress and irreversibility an economic interpretation of the precautionary principle abstract we consider the problem of the optimal use of a good whose consumption can produce damages in the future scientific progress is made over time that provides information on the distribution of the intensity of damages we show that this progress induces earlier prevention effort only if prudence is larger than twice absolute risk aversion this paper thus identifies the class of quite restrictive but plausible conditions such that scientific uncertainties justify an immediate reduction of the consumption of a potentially toxic substance

extending the internationalization process model increases and decreases of mne commitment in emerging economies the internationalization process model suggests that firms internationalize by building positions in foreign markets and networks following iterative cycles of learning and changes in commitment however as subsidiaries evolve commitments may be decreased as well as increased a phenomenon that has rarely been studied moreover it remains an open question why strategic intentions at the outset of an investment project differ from the actual operations established we address these questions by extending the model and combining it with mintzberg and waters framework of strategy formation specifically we suggest that commitment decisions correspond to statements of intended strategy while network positions correspond to realized strategies the processes of learning opportunity creation and trust building triggered by commitment decisions are however moderated by institutional influences that lead to divergences between realized and intended strategies we test propositions derived from this framework on a survey data set of subsidiaries of multinational enterprises in hungary lithuania and poland and find that institutional voids and institutional uncertainty affect subsidiary strategy implementation but in opposing directions under high institutional uncertainty investors prefer low commitment but flexible modes that enable later commitment increases whereas institutional voids increase up front information search and adaptation costs that reduce the likelihood of early post entry adjustments our analysis reinforces the need for more differentiated theoretical analyses of how institutions affect business strategies over time

offshoring of r d looking abroad to improve innovation performance the offshoring of knowledge services has become a phenomenon of increasing importance for firms but many of its implications are yet to be discussed thoroughly this paper analyzes whether r d offshoring contributes to enhancing firms innovation capabilities specifically the study distinguishes between two governance models of offshoring captive offshoring and offshore outsourcing and two types of innovation outcomes product and process innovations we suggest that r d offshoring has different impacts depending on the innovation results and governance models considered the study empirically tests these relationships using the spanish technological innovation panel this survey contains information on a large sample of firms from diverse sectors for the period 2004 2007 the empirical findings allow us confirm our hypotheses and highlight the strategic importance of r d offshoring the empirical evidence reveals a positive relation between offshoring and innovation performance with a greater effect on product than on process innovations the results for different governance models show that captive offshoring has a greater effect on innovation outcomes than offshore outsourcing these findings lead us to conclude that firms that look overseas can benefit from location specific and specialization advantages to improve innovation performance

a definition of uncertainty aversion a definition of uncertainty or ambiguity aversion is proposed it is argued that the definition is well suited to modelling within the savage as opposed to anscombe and aumann domain of acts the defined property of uncertainty aversion has intuitive empirical content behaves well in specific models of preference multiple priors and choquet expected utility and is tractable tractability is established through use of a novel notion of differentiability for utility functions called eventwise differentiability

decentralised r d and strategic competitiveness globalised approaches to generation and use of technology in multinational enterprises mnes abstract using material from surveys of multinational enterprise mne production subsidiaries and laboratories operating in the uk the paper seeks to discern vital changes in the roles of such r d facilities from the primarily tactical and technologically dependent role of adapting established group products for the local market these labs now take more committed positions in support of their group s strategic competitiveness this can involve a much more profound involvement in original product development or inputs into programmes of pre competitive basic or applied research to support the longer term evolution of the core technology of the mne group it is suggested that this evolution of decentralised labs positioning in mne knowledge strategies implies i an increasing involvement in product development rather than adaptation ii an interdependent rather than dependent position in group technology programmes iii increased relevance of supply side influences host country technology competencies capacities and heritage iv decline of centralising forces on r d e g economies of scale communication and co ordination problems concerns of knowledge security

ambiguity made precise a comparative foundation the theory of subjective expected utility has been recently extended to allow ambiguity to matter for choice we propose a notion of absolute ambiguity aversion by building on a notion of comparative ambiguity aversion we characterize it for a preference model which encompasses some of the most popular models in the literature we next build on these ideas to provide a definition of unambiguous act and event and show the characterization of the latter as an illustration we consider the classical ellsberg 3 color urn problem and find that the notions developed in the paper provide intuitive answers journal of economic literature classification number d81

new forms of organisation and r d internationalisation among the world s 100 largest food and beverages multinationals this paper explores the strategic internationalisation of research and development r d activities of the world s 100 largest food and beverages f b multinationals mnes in 1996 and 2000 with a sample of nearly 8000 affiliates for each period we develop a global innovation strategy gis structure where we analyse the r d internationalisation process of f b mnes we argue that in a fully developed gis model the sourcing of creative inputs does not come exclusively from a central r d laboratory but other overseas r d laboratories or technological affiliates can also undertake genuine knowledge creation activity from capitalising on the scientific heterogeneity fostered in individual host countries as well as distinctive demand conditions our results indicate the increasing importance of overseas technological affiliates in the application of a gis in the leading f b mnes which determine the degree of their technological internationalisation two variants of technological affiliates reflect two broad knowledge related activities i e adaptation and genuine forms of knowledge creation

uneven domestic knowledge bases and the success of foreign firms in the usa this paper investigates the effect of within country and across country inequalities on firms fdi performance and finds drivers of success in an advanced host economy the usa differ for firms from developed compared to developing countries returns to fdi for firms from developed countries are significantly correlated with home countries level of economic development in contrast successful developing country firms are from countries with lower within country inequality and reflect the industrial structure associated with developing countries they are concentrated in scale intensive industries and benefit especially from capital investment the findings suggest that fdi reflects rather than disrupts unevenness in knowledge bases globally

will regional economic integration influence carbon dioxide marginal abatement costs evidence from chinese panel data with frequent trade and technology diffusion the barriers between regions are gradually weakening and regions have become more integrated over recent years regional economic integration not only stimulates labour mobility but also achieve scale economy both of which may also influence carbon dioxide co2 marginal abatement costs through affecting energy consumption co2 emissions productivity growth and technical progress nevertheless to the best of our knowledge none of the studies has currently concerned the influence of regional economic integration on co2 marginal abatement costs to fill this research gap this study first theoretically clarifies the influence mechanism of regional economic integration on co2 marginal abatement cost and then empirically attempts to investigate their relationship in the context of china with panel data models to serve this purpose the provincial co2 marginal abatement cost and regional economic integration are estimated by parametric directional distance function and price based approach respectively the results show that china s regional economic integration level indeed gradually improved over 2002 2011 except in 2003 04 and 2006 09 due to the spread of severe acute respiratory syndrome sars and the sub prime loan crisis moreover evolution of regional economic integration indeed contributes to the increase of co2 marginal abatement cost at 5 significance level using robust tests it can be found that the results are also reliable and robust to sub samples