bluuebunny/crossref_metadata_2025 huggingface dataset:
Makespan distributions in flow shop scheduling
Authors: Caffrey James , Hitchings Graham
Published: July 2002

Concerns scheduling five jobs through a flow shop with five
machines. The distribution of makespans and the distribution of the
optimal makespans was obtained by complete enumeration of all the
schedules. The effect of the processing times on these distributions was
investigated. Three priority rules were evaluated as to their
performance on minimizing the makespan. These rules were the
“greatest total processing time” first rule, the
“least total processing time” first rule and a
“RANDOM” assignment rule. Statistical tests were used to
evaluate the efficacy of the rules.
Continuous quality improvement through Taguchi′s online quality
control methods
Authors: Aravindan P. , Devadasan S.R. , Dharmendra B.V. , Selladurai V.
Published: July 2002

Reviews the global status of total quality management (TQM).
Emphasizes continuous quality improvement as one of the main pillars of
TQM. Illustrates a part of the research that was carried out to examine
Taguchi′s on‐line quality control (TOLQC) methods as the means to effect
continuous quality improve‐ment. Describes a case study that was carried
out to study the implementation feasibilities of TOLQC methods.
Highlights the inferences drawn from this case study which assert the
need for managerial approach rather than mere technical computations for
successful implementation. Insists on intensified training and awareness
programmes on the implementation strategies of these methods to attain
the ultimate goals of TQM.
Production control in the food processing industry
Authors: Nakhla Michel
Published: July 2002

Analyses the problems of production scheduling in the dairy product
industry where variety and sell‐by date constraints have to be taken
into account. Using the formalization of priorities as a basis, attempts
to demonstrate that a thorough understanding of the relation between a
formal scheduling model and its implementation permits one to grasp the
profound changes in industrial processing systems at present. With this
analysis new representations of possible changes can be created and the
idea of a transformation of work organization based on a new form of
production management can be developed.
Strategic concerns and capability impeders
Authors: Gilgeous Vic
Published: July 2002

Evidence points to the need for a coherent, well‐communicated
manufacturing strategy which establishes the best possible link between
the competitive needs of the business and what needs to be done at the
operational level in order to provide the business with a sustainable
advantage over the competition. Presents a process of manufacturing
strategy development which links the strategic needs of the business to
the operational level in order to determine the operational areas of
strategic concern in the company. Examines the effectiveness of a
company′s capabilities, using a methodology for identifying the main
impeders to improvements being made with respect to these particular
areas of strategic concern.
Developing effective strategies to prioritize set‐up reduction in a
multi‐machine production system
Authors: Chakravorty Satya S. , Sessum Joseph L.
Published: July 2002

Procedures to reduce set‐up times at individual machines have been
well documented; however, very little research has been conducted on
developing an effective strategy to prioritize set‐up reduction
procedures in a multi‐machine facility. Describes a new and innovative
way – a throughput approach – to prioritize set‐up reduction
procedures in a multi‐machine production system.
Developing creative teams for operational excellence
Authors: Feurer Rainer , Chaharbaghi Kazem , Wargin John
Published: July 2002

Contends that, with the accelerating dynamics of competition and a move of organizations towards more dynamic approaches to strategy formulation and implementation, creativity becomes of key importance for achieving both product and operational excellence. Over the last decade organizations have increasingly adopted team‐centred structures in order to improve the way in which knowledge is developed, disseminated and applied in organizations. Although this has improved product and operational performance dramatically, organizations now realize that future radical improvements in performance hinge on improving their creative capabilities. Presents a framework used by Hewlett‐Packard in order to develop creative teams.
Workload smoothing in a bottleneck job shop
Authors: Salegna Gary J. , Park Paul S.
Published: July 2002

Examines the planning and scheduling systems in an integrative framework for a dual resource constrained (DRC) job shop. Models a bottleneck shop environment which represents a common situation in practice. Research on workload smoothing mechanisms which integrate the planning and scheduling systems is sparse. Simulates 13 smoothing rules (utilizing aggregate workload and bottleneck information), three despatching rules and two order review/release rules. The results of this study indicate that workload smoothing by the planning system has a significant effect on the performance of the DRC job shop. Pulling work ahead in valley periods improved the tardy measures of performance, while pushing jobs back in peak periods usually deteriorated shop performance. Suggests that combining a planning system effectively with order review/release can improve mean tardiness, percentage tardy and mean flowtime measures of performance.
Characteristics of work organization in lean production and sociotechnical systems
Authors: Niepce Willem , Molleman Eric
Published: July 2002

Several human factors in the present and prospective situation of an automotive assembly shop were examined with respect to the concepts of lean production (LP) and sociotechnical systems. The work organization was evaluated by means of four principles: of “minimal critical specification” which refers to the co‐ordination mechanism that is used; the principle of “boundaries”, which refers to the extent to which teams are autonomous; “multifunctionality” which has to do with the division of labour into small or whole tasks; and “human values”, which deals with the way workers are motivated. In the present situation some factors are more in line with lean production, while others fit in with sociotechnical systems, although the actual overall state conforms more with lean production. The future position will be more consistent, but still more in line with LP, mainly because of the characteristics of the work processes.
An iterative procedure for solving the uncapacitated production‐distribution problem under concave cost function
Authors: Youssef Mohamed A. , Mahmoud Mohamed M.
Published: July 2002

Under production economies of scale, the trade‐off between production and transportation costs will create a tendency towards a decentralized decision‐making process. First, reviews previous approaches suggested in the literature for solving the production‐ distribution problem. Then offers a non‐linear programming model of the transportation problem under production economies of scale to illustrate the computational complexity of the problem. Discusses and proves the convergence of the “tangent line approximation procedure”. Finally, introduces and solves a numerical example.
The effects of varying set‐up costs
Authors: Chyr Fuchiao
Published: July 2002

The concept of zero inventory (ZI) is a powerful tool to improve production economics. The major factor in ZI is set‐up cost reduction. Examines what will happen when set‐up costs are stationarily and non‐stationarily reduced by mathematical presentations and simulation. The results are useful for real practice. Zangwill observes that reducing set‐up costs need not decrease inventory by a special example of non‐stationary cases. Likewise, set‐up cost reduction need not decrease total production and inventory costs. By using simulation, obtains results contrary to Zangwill. Most presentations of set‐up cost reduction consider the stationary case. It is hard to find the degree of cost variations by mathematical models. Thus uses a mathematical approach and a few simulation results that varying set‐up costs are provided. Reduces set‐up costs stationarily and non‐stationarily to examine the effects on total costs and total holding costs.
Cellular manufacturing using virtual cells
Authors: Kannan Vijay R. , Ghosh Soumen
Published: July 2002

Proposes a virtual cellular manufacturing approach to implementing cellular manufacturing systems that combines the set‐up efficiency typically obtained by traditional cellular manufacturing or group technology systems with the flexibility of a job shop. Unlike traditional cellular systems in which the shop is physically designed as a series of cells, cells are formed within a shop utilizing a process layout using scheduling mechanisms. The result is the formation of cells that are temporary and logical (virtual) in nature, allowing them to be more responsive to changes in demand patterns. Simulation runs comparing this approach to production using traditional cellular and job shop approaches indicate that this new approach yields significantly better shop performance over a range of operating conditions.
How many units will be short when stockout occurs?
Authors: Adenso‐Díaz Belarmino
Published: July 2002

In stochastic inventory management, when calculating the safety stock necessary to ensure a service level, use of the partial expectation function, which is tabulated in the normal demand case, is popular. Using these values, it is possible to calculate the safety stock necessary for the average of the items not served by cycle to reach the desired level. Analyses the use of a conditional probability distribution to ascertain the safety stock necessary to guarantee, when stockout occurs, that the average of the number of items not available equals a predefined value.
A comparative study of line design approaches for serial production systems
Authors: Chakravorty Satya S. , Brian Atwater J.
Published: July 2002

Over the past decade two approaches, just‐in‐time (JIT) and theory of constraints (TOC), for designing and operating production lines have developed, each claiming to be the “correct” way. In addition there are still those who maintain that line balanced (whenever possible) is the optimal method. This study uses simulation to compare each of these approaches for designing and operating production lines under various levels of processing time variability, station downtime, and total system inventory. Not surprisingly, the JIT approach appears to work best when system variability is low. The TOC approach works best when system variability is high. This shows that lines designed using TOC principles perform significantly better than JIT lines when inventory is low, and JIT lines perform significantly better than TOC lines as inventory is added to the system. The traditionally balanced line did not perform best under any of the conditions used in this study.
Inventory management of repairable service parts for personal computers
Authors: Ashayeri J. , Heuts R. , Jansen A. , Szczerba B.
Published: July 2002

Notes, in recent years, an increase of interest in the field of service parts inventory ‐ particularly in the computer industry. Explains that the computer industry is a highly competitive industry; products have to be repaired as quickly as possible, since slow repair can lead to loss of future business to competitors with better service reputations. Maintains that a good reputation is therefore closely linked to the availability of spare parts on the market. Using a real‐life case study, elaborates on the management and control of service‐parts inventory and gives a brief overview of the contemporary literature on the subject. Presents the solution approach adopted and the results of the study, which indicate that significant savings can be realized through good management of service‐parts inventory.
The role of purchasing/transportation in cycle time reduction
Authors: Ng Billy , Ferrin Bruce G. , Pearson John N.
Published: July 2002

Reviews the literature of purchasing and transportation management to identify factors in the purchasing and transportation processes that influence a firm’s ability to reduce total cycle time. Presents a model of these factors to establish a framework for guiding research into comprehensive, systematic approaches to total cycle time reduction. In addition, the total cycle time model serves as a blueprint for practitioners in evaluating, in specific organizations, the effect of the purchasing and transportation processes on total cycle time. Although much of the research reviewed herein dates to the early 1980s its consideration as part of a comprehensive, systematic examination of the total cycle time concept is new.
Subcontracting within the supply chain for electronics assembly manufacture
Authors: Webster M. , Alder C. , Muhlemann A.P.
Published: July 2002

Discusses issues associated with the subcontracting of manufacturing activity within the supply chain for electronics assembly products. The principal focus of the work is the operational issues surrounding the organization, management and control of the subcontract process, but related issues and research streams are also considered. Some of the operational issues are placed within the context of current practice by presenting case studies of two small to medium‐sized manufacturing enterprises (SMMEs) in the electronics assembly sector which use subcontract manufacture. The approaches of the two companies to the management and control of the process are compared and contrasted, and mapped onto generic models. This work is considered timely because of the increasing importance of the subcontracting of manufacture within the supply chain, and because of the lack of supporting theoretical and practical work. It identifies key issues which need to be addressed by academic researchers and by industry practitioners in the pursuit of world class manufacturing ideals, as part of a process of concentrating on core competencies and expertise.
Adapting manufacturing processes for international transfer
Authors: Grant E.B. , Gregory M.J.
Published: July 2002

Identifies factors influencing the adaptation of manufacturing processes for international transfer. Proposes that these factors should be divided into those affecting the operation of the process in its new location, and those that influence the transfer itself. This differentiation generates three constructs which characterize a manufacturing process: appropriateness, robustness, and transferability. Individually, they inform practitioners on questions of process adaptation, location selection, training, and technology choice. Together they describe the ease with which a manufacturing process can be transferred: its fitness for transfer.
The firm’s and its customers’ views on order‐winning criteria
Authors: Åke Hörte Sven , Ylinenpää Håkan
Published: July 2002

A firm’s ability to win orders on the market depends on its competitiveness. A competitive firm wins orders on the market, which has a positive impact on its sales performance. Order‐winning criteria are those criteria that make a difference to the customer when he decides between qualified offered products. The selling and the buying actors may have the same or different ideas about what constitute these order winners, and they may also differ in their evaluation of the competitive strengths of a firm. Analyses the selling and buying actors’ perceptions of order winners and competitive strengths as the degree of fit between these perceptions. A good fit means that the two actors agree on order‐winning criteria and the firm’s competitive strength on these criteria. It is expected that a good fit relates to a positive sales growth of the selling firm’s product. Analyses different situations of fit and misfit for the ten product families of four small manufacturing Swedish firms, and shows how these situations relate to the sales patterns of the product families. The results reveal that a good fit is related to a stable economic development of sales, while two different situations of misfit may lead to a decline in or an expansion of sales.
From mass production to flexible/agile production
Authors: Duguay Claude R. , Landry Sylvain , Pasin Federico
Published: July 2002

In industrial management, the 1980s marked the end of the twentieth century, an epoch dominated by US manufacturers, the alleged masters of mass production. This system has now been outstripped in several dynamic sectors by flexible/agile production. Increases in the pace of technological progress, training and aspirations have made the modern context so dynamic that firms which manage to harness the creativity and initiative of a good part of their workforce have an advantage over those that can only count on the input of their experts and managers. In sectors undergoing relatively broad and rapid change, twenty‐first century firms must adopt a more flexible and innovative type of organization to achieve manufacturing excellence.
Sequences of operational improvements: some empirical evidence
Authors: Filippini Roberto , Forza Cipriano , Vinelli Andrea
Published: July 2002

Looks at the improvement initiatives which companies implement in operations, in the areas of design, supply and production. A number of initiatives are considered, including design computerization, flexible automation, linkages with suppliers and JIT. In the literature these initiatives have been given different names, such as technical and organizational innovations or best manufacturing practices. Using survey data, the paper examines the question of the existence of different sequences followed by companies to innovate their operations. A sample of 125 US, Japanese and Italian companies belonging to the electronics, machinery and transport industries is analysed. On the basis of the initiative start‐up year, four different sequences have been found. They are different in terms of two dimensions: one is the type of initiatives launched at the beginning, and the other is the level of selectiveness of the companies in launching the initiatives. The sequences have been labelled Hard Full Adopters, Hard Discriminators, Soft Full Adopters and Soft Discriminators. Company characteristics, such as the country of location, and context factors such as export, and length of product life cycle have emerged as discriminating factors between the sequences.
Local assembly units in the motor components industry
Authors: Millington A.I. , Millington C.E.S. , Cowburn M.
Published: July 2002

This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly units (LAUs). The analysis is based on a case study of the decision to supply motor exhausts through an LAU where demand from the OEM company is sequenced. The case suggests that local assembly may result in significant efficiency gains. However, most of these gains flow to the OEM company, while most of the costs of local assembly flow to the component supplier. This finding emphasises the importance of trust and collaboration within supplier relationships, but suggests that significant possibilities for opportunistic recontracting may exist after the establishment of the LAU. Both supplier and OEM company should consider these possibilities when making the initial investment decision.
Quality‐focused performance measurement systems: a normative model
Authors: Lockamy Archie
Published: July 2002

Notes the importance of strategic objectives to facilitate the development of competitive advantage in specific markets or market segments. Further notes the importance of the relationship between the firm’s strategies, organizational actions and performance for the development of quality‐focused performance measurement systems, based on results of a study of six firms identified as “world class” by academic and practitioner experts. Concludes with numerous recommendations regarding division and plant strategic quality objectives, quality‐focused performance measurement systems and quality‐focused performance measurement system linkages.
Regional report on operations management in Spain
Authors: Ribera Jaume
Published: July 2002

Considers the current status of operations management in Spain. Describes educational opportunities in the field, looks at operations management and research and concludes with a review of operations management activities at the national level, describing some activities undertaken by public authorities.
Operations management in Italy
Authors: De Toni Alberto , Filippini Roberto
Published: July 2002

Reports on the current operations management situation in Italy. Includes a brief historical review looking back to the 1950s. Considers the development of research and education in the field since the 1980s. Gives listings of key institutions, personnel and events relating to operations management in Italy.
Development of operations management in Pakistan
Authors: Raouf Abdul
Published: July 2002

Looks at the development of operations management in Pakistan. Notes that 85 per cent of manufacturing companies in the country are small‐ and medium‐sized enterprises (SMEs) with the remainder being branches of multinationals and their affiliates. Considers some of the problems encountered by SMEs in Pakistan, such as lack of trained manpower and insufficient technological capability.
Regional report ‐ Brazil and Latin America
Authors: Fleury Afonso
Published: July 2002

States that operations and production management is deeply rooted in Brazilian education where the first course in production engineering dates from 1958. Considers the nature of publications in the field during the 1990s. Notes that the research focus in Brazil is currently on areas such as the new globalised economy and the environment.
A characterization of a business process
Authors: McKay Alison , Radnor Zoe
Published: July 2002

In recent years it has become evident that the success of an organization depends on its ability to understand and manage its processes in order to meet customer requirements. Both business process reengineering (BPR) and project management are commonly advocated as means of improving these processes. The aim of this paper is to highlight the potential benefits of using formal characterizations of the business process in support of BPR. A case study is used to show how ideas that underpin the computer‐based representation of mechanical products can be applied to business processes.
Putting an engine into re‐engineering: toward a process‐oriented organisation
Authors: Love P.E.D. , Gunasekaran A. , Li H.
Published: July 2002

Process re‐engineering, a recently popularised phenomenon, has been advocated as a change management strategy that can be used to refocus organisational tasks into processes so that dramatic performance improvements in critical, contemporary measures of performance such as cost, quality service, and speed can be achieved. This paper suggests that before an organisation can re‐engineer its processes they must first be engineered. Inherent within the philosophy of total quality management (TQM) is the notion of being process oriented. This paper argues that a process should be engineered by utilising the philosophical foundations of TQM. Furthermore, both the technical and social inputs of a process must be designed simultaneously and be performed congruently. When engineered processes are no longer considered to be effective and efficient, and dramatic performance improvements are sought, then they should be re‐engineered, specifically encouraging breakthrough performance improvements and innovative ways of working and delivering products or services.
Enterprise performance measurement
Authors: Rolstadås Asbjørn
Published: July 2002

The future trends with respect to globalisation, customer orientation, process orientation, and high productivity have led to increased focus on productivity and enterprise competitiveness. In order to improve competitiveness, it is necessary to measure performance. The classical approach to this is to apply the Sink and Tuttle model describing seven performance criteria. A more modern approach has been advised by the TOPP program. TOPP measures performance along three dimensions: efficiency, effectiveness and adaptability. TOPP uses questionnaires to collect data. Another approach is applied in the EU ENAPS project where the goal is to build a European benchmarking database. ENAPS provides a set of tools to a number of agents actually doing the benchmarks. Performance measurement requires an enterprise model. The EU FOF project developed such a model. This was further developed by TOPP and then further refined in ENAPS.
Downsizing production/operations with multi‐objective programming
Authors: Schniederjans Marc J. , Hoffman James J.
Published: July 2002

One strategy that has been used extensively to cut operation costs is downsizing, a planned reduction in a firm’s work force. Downsizing must be based on a thorough analysis of the firm’s prioritized opportunities and their limited economic resources to achieve them. Some operations research techniques have appeared in the literature as practical aids in downsizing methodology. The purpose and significance of the research in this paper is to: provide the first demonstration of how a prioritized multi‐objective programming‐oriented methodology (i.e. goal programming) can be used for planning the downsizing of production/operations resources; and demonstrate a new methodological approach that can be used to determine previously hidden goals in a manufacturing linear programming model of the downsizing problem. Based on a problem reported in the literature, this paper will illustrate how an optimal allocation of production resources can be achieved while providing useful information in which to ensure other prioritized goals and their economic tradeoffs are considered in the downsizing analysis.
Changes in the production manager’s job: past, present and future trends
Authors: D’Netto Brian , Sohal Amrik S.
Published: July 2002

Examines the changing nature of the production manager’s job. To assess the current position, a survey was conducted on a sample of 600 production/operations managers in Australia. The results of the study indicate that there have been significant improvements in the production manager’s job. The study found that Australian production managers are well qualified, highly
Critical factors for achieving manufacturing flexibility
Authors: Lau R.S.M.
Published: July 2002

In this empirical study of 382 US computer and electronics companies, the relationship between manufacturing flexibility and its five infrastructural scales was examined. These infrastructural scales include workforce autonomy, communication, inter‐departmental relationships, supplier flexibility and technology. The results suggested that all infrastructural scales, except workforce autonomy, have a direct and positive effect on a firm’s manufacturing flexibility. Discussion and managerial implications of the results were also presented in this paper.
An empirical study of time‐based competition in the North American automotive supplier industry
Authors: Jayaram Jayanth , Vickery Shawnee K. , Droge Cornelia
Published: July 2002

The importance of responding to time‐based competitive pressures has prompted US manufacturers to emphasize time‐based performance and deploy strategic action programs aimed at cycle time reduction. This study examines time‐based competition among first tier suppliers to the Big Three in North America. A comprehensive set of time‐based performance measures is defined and time‐related action programs associated with world class manufacturing strategies are identified. Relationships between time‐related action programs, time‐based performance, and overall firm performance are examined. The study shows that time‐based performance significantly affects overall firm performance and that manufacturing lead time is especially critical in the automotive industry. The study also identifies strategic action programs that result in improved performance on various dimensions of time‐based performance.
Measuring change project management in manufacturing
Authors: Taskinen Tapani , Smeds Riitta
Published: July 2002

In this paper, a preliminary framework for the assessment of change management is developed, based on recent research and case interviews at three consulting companies. The framework distinguishes between efficiency and effectiveness measurements on change management, and evaluates the management methods and outcomes of the change projects separately. The framework is applied to analyze and compare the change projects in three Finnish manufacturing companies. The results indicate that the preliminary framework can explain the difference between successful and less successful change management in manufacturing processes. By applying the measurement framework in practice, organizations can continuously improve their change management capabilities. More empirical research is needed to test the framework further.
Continuous improvement and the mini‐company concept
Authors: de Leede Jan , Kees Looise Jan
Published: July 2002

The key issue of continuous improvement (CI) seems to be the problem of combining extensive employee involvement with market orientation and continuation of CI. In this article we review some existing organisational designs for CI on these three essential characteristics of CI. As an alternative to the shortcomings of current organisational designs for CI we present the mini‐company concept, related to the sociotechnical concept of the self‐managing team. The mini‐company concept incorporates the three key issues: it has a self‐propelling capacity for CI, involving everyone on the shop floor. A constant and market‐oriented source for improvement is found in the clients and suppliers of the mini‐company. Results of an in‐depth case‐study are presented, showing some strong effects of the mini‐company concept.
Mathematics in economics: Schmoller, Menger and Jevons
Authors: Reiss Julian
Published: July 2002

Investigates the economic methodologies of Carl Menger, William Stanley Jevons and Gustav Schmoller with respect to the issue of whether mathematics is or is not an adequate language to express economic relationships. First, Menger’s and Jevons’s respective methodologies are identified as Aristotelian which means, inter alia, that economic properties are real, are naturally related to each other, exist as part of the observable world and can be separated (in thought or otherwise) from other properties. Second, it is shown how this general Aristotelian outlook has very different implications for Menger’s and Jevons’s thinking about mathematics. Third, these two “monogenetic” views are contrasted with Gustav Schmoller’s “polygenetic” approach which holds that a purely deductive economics, based on a small number of self‐evident principles, is inadequate for social purposes.
Comment on “Mathematics in economics: Schmoller, Menger and Jevons” by Julian Reiss
Authors: Hansen Reginald
Published: July 2002

Provides a comment on Reiss’ “Mathematics in economics: Schmoller, Menger and Jevons”.
On the performance and practicality of nominal GDP targeting in Germany
Authors: Domac Ilker , Kandil Magda
Published: July 2002

This paper examines the performance of nominal income targeting as a possible direction for monetary policy. The existing literature consists of historical counterfactual simulations to determine how economic performance might have differed if this policy had been adopted. To provide better assessment of the performance of nominal income targeting in practice, this paper focuses on Germany where this policy is implemented. The results highlight the importance of price stability in the design of German monetary policy. Furthermore, causality test results indicate a causal flow from money to nominal income. However, there is no evidence of a causal flow from nominal income to various definitions of money. These results confirm the Bundesbank’s claim that monetary growth runs ahead of fluctuations in nominal income in Germany. That is, the Bundesbank is able to target nominal income by using a monetary aggregate. These findings challenge the skepticism regarding the use of a monetary aggregate as the intermediate target, which has arisen mainly from the US experience.
A Green GNP Model and Sustainable Growth
Authors: Choi Yong‐Yil
Published: July 2002

While there is strong consensus at the conceptual level about sustainable development there are few formal models that outline the conditions for environmentally steady and sustainable growth in a decentralized market economy. Addresses this issue by building a Green GNP model and then deriving a single long‐run condition for environmentally steady and sustainable growth. Examines the relationship between industrial affluence and environmental decay. If industrial affluence comes from the lower elasticity of substitution among goods, it does not necessarily cause environmental decay. Finding that substitutability still plays an important role in environmentally steady and sustainable growth and concludes that public policy makers should pay more attention to the relationship between substitutability among goods and environmental sustainability.
The economic thought of an Austrian Marshallian George Barclay
Richardson
Authors: Juul Foss Nicolai
Published: July 2002

Discusses the economic contributions of George Barclay Richardson.
Detailing the Austrian and Marshallian aspects of his work, argues that
all his contributions – on industrial organization, welfare
economics, history of thought, etc. – are united in their concern
with the co‐ordination problem, that is, the problem of theoretically
demonstrating how order may be achieved in decentralized market
economies. Furthermore, argues that Richardson′s work from 1953 to 1972
in the answers it gave to this problem anticipated a number of themes
that have only recently acquired prominence in economic theory,
specifically in neo‐institutionalist thought. The pioneering originality
of his work also partly accounts for the relative neglect with which it
was originally received.
Export‐share requirements, content protection and the multinational
firm under production uncertainty
Authors: Ka‐Yiu Fung Michael , Flacco Paul R.
Published: July 2002

Analyses the influence of export share and domestic content
policies on the level of capital investment undertaken by a
multinational firm both in its home country and in the foreign country
in which it operates. These protective policies, in force in both
developing and industrialized countries, require the firm to employ a
certain proportion of inputs from the foreign country in which it
operates and to export a certain proportion of its output abroad. Cases
examined in the analysis include those for which the firm faces
uncertainty in the production process in the host and home countries;
and in neither country. Finds that both of these policies can have
spillover effects to the home country as well, i.e. when there is
uncertainty in production in the home country, these policies can reduce
the optimal level of investment in the home country, too.
Smuggling and welfare in a Ricardo‐Viner economy
Authors: Lovely Mary E. , Nelson Douglas
Published: July 2002

Analyses smuggling through legal entry points in the context of a
Ricardo‐Viner (RV) economy. Posits that smuggling will improve welfare
if the benefits of a reduced domestic price distortion exceed the
resource cost of smuggling. Strengthening of anti‐smuggling activity
need not improve welfare if it induces the devotion of additional
resources to activities designed to reduce detection.
Standardized poverty measurement
Authors: Wright Robert E.
Published: July 2002

Outlines a method for controlling for compositional factors in the measurement of poverty. Bases the method on “shift‐share analysis” and “direct standardization”, consistent with Sen’s (1976) influential axiomatic approach to poverty measurement. Employs the popular poverty index proposed by Foster et al. (1984), which is one of the few summary poverty measures that can be directly standardized and also meets Sen’s criteria. The method is illustrated by examining the trend in absolute and relative poverty in the UK. Uses data from the “Family Expenditure Survey”, covering the period 1968 to 1986, and places specific empirical focus on the relationship between household structure and poverty.
Foreign investment location in less developed countries: a theoretical framework
Authors: Jalilian H.
Published: July 2002

Attempts to incorporate the “new forms” of foreign investment into a unified model. Uses this simple model to show how differences in production environment in particular, are likely to affect both the timing and mode(s) that any foreign investment is likely to take. The explanatory variables in this model are the relative efficiency gap and variable cost differential between producing at home or in a less developed country; which includes those related to the differences in the production environment. Considers foreign direct investment, joint venture, as well as licensing.
An economic theory of leader choice in Stackelberg models
Authors: Higgins Richard S.
Published: July 2002

States that the Stackelberg leadership model is rarely used to describe market price determination perhaps because of the lack of a theoretical basis for selecting the minimum size necessary for leadership. Provides structural sufficiency conditions for selecting a unique Stackelberg leader based on the concept of Pareto dominance, in which the structural criterion involves the relative capacity shares of the first and second largest market rivals. Suggests that the Stackelberg price game is a viable static equilibrium construct even though the fringe firms are not atomistic. Applies the Stackelberg model to antitrust merger analysis.
von Stackelberg’s equilibria for Bertrand‐Edgeworth duopoly with buyouts
Authors: Van Cayseele Patrick , Furth Dave
Published: July 2002

Solves von Stackelberg equilibria in a Bertrand‐Edgeworth duopoly game. Shows that, initially, the environment is characterized by efficient rationing and capacity constraints. Since interest lies in sustaining monopoly outcomes from non‐co‐operative behaviour, introduces the buyout option, where rivals can absorb one another’s output before any consumer. Reveals that the outcomes change drastically in that players together are able to reach the monopoly profits.
Stackelberg and his role in the change in Spanish economic policy
Authors: Velarde Fuertes Juan
Published: July 2002

Provides an overview of the evolution of Spanish economic policy throughout the nineteenth century and considers the economic thought of the Spanish professor of this time. Discusses the work of Heinrich von Stackelberg while he was based in Spain from 1943. Suggests that Stackelberg’s ideas were key to the quantum leap in Spanish economic policy, abandoning utilitarian historicism which had permeated it up to then.
Stackelberg’s concept of the post‐war economic order
Authors: Backhaus Jürgen G.
Published: July 2002

Reports that, in 1943, Heinrich Freiherr von Stackelberg (1905‐1946) discussed with an informal group meeting in Freiburg (Breisgau ‐ Germany) “Limits and possibilities of economic planning”. Explains that the group called after its chairman “von Beckerath Circle” met to discuss problems of demobilization and the post‐Second World War economic order in Germany. States that Stackelberg’s lecture was found among his manuscripts and published after his death. Notes that Stackelberg is generally considered for his contributions to economic theory; little is known about his views on economic policy. Argues that his views on theory and policy were closely linked, however. Gives a concise statement of Stackelberg’s view on the post‐Second World War economic order in Germany. Points out that he argues strongly against (central) planning of the economic process, makes the important ORDO distinction between economic policy instruments compatible and incompatible with a market economy, but he is not a pro‐market economist of the anti‐state type. Explains that the state is assigned a wide range of policy options (in terms of policy instruments compatible with the market economy), ranging from specific forms of price intervention to income policies and extensive forms of taxation.
A comparison of forecasts from UK economic models and some Bayesian vector autoregressive models
Authors: Holden Ken
Published: July 2002

Analyses and checks the annual forecasts produced each autumn from four prominent UK economic modelling organizations. Compares these forecasts with those of three Bayesian vector‐autoregressive models. Examines the accuracy for each set of forecasts up to four years ahead and for different horizons. Examines the direction of the forecasts and the effect of forming simple combinations of the different forecasts. Finds evidence that while the BVAR forecasts are inferior to those from the economic models, they contain information which could be used in order to improve the other forecasts.
Hawtrey, Harvard and Chicago: a final comment
Authors: Laidler David
Published: July 2002

Responds to George Tavlas’ comments in “More on the Chicago tradition”, in this issue, and once again assesses the contribution of individuals to “the Chicago tradition” of the 1930s.
An error correction approach to modelling money balances and reserves
Authors: Civcir I. , Parikh A.
Published: July 2002

The objective of this study is to propose an economic model of the nominal money balances and reserves in the Turkish economy during the period 1960‐1988. As most of the variables show unit root non‐stationarity, an approach based on the error correction system (Phillips, 1991) is adopted. The estimated parameters of the long‐run money balance relationship based on this error correction system are very close to the Johansen‐Juselius (1990) vector autoregressive modelling approach. An error correction system and the vector autoregressive modelling approaches are alternative representations of the cointegrated systems. This study empirically demonstrates the closeness of the two systems using the data from the Turkish monetary sector. The econometric estimates of the elasticities are plausible. In small samples, both approaches may not yield almost identical estimates since the theory underlying these approaches is asymptotic.
Seigniorage and tax smoothing in developing countries
Authors: Ashworth John , Evans Lynne
Published: July 2002

This paper tests the extended tax‐smoothing model for a sample of 32 developing countries. Importantly, the testable implications employed relax the assumption of constant money velocity. Although seigniorage is an important source of revenue in developing countries, all the evidence indicates that the principles of optimal taxation have not been used when developing countries raise revenue from inflation.
Convergence in recent growth theories: a survey
Authors: Capolupo Rosa
Published: July 2002

This paper reviews one of the crucial issues in the recent growth literature concerning the hypothesis of cross country convergence of levels and growth rates of income per capita implied by the neo‐classical growth model, both in the Solow‐Swan and Rampsey‐Cass‐Koopmans versions. The alternative endogenous growth models, consistent with permanent income inequality, are considered. Convergence to a common income level versus divergence is discussed from a theoretical point of view. Then, empirical tests of the convergence property are presented. What emerges is that Barro type regressions and their findings about “conditional” convergence are questionable and cannot be used to give a definitive response on this issue.
More on the Chicago tradition
Authors: Tavlas George S.
Published: July 2002

Offers a response to David Laidler’s article “More on Hawtrey, Harvard and Chicago”, in this issue. Asserts that the unique Chicagoan quantity‐theory of the early 1930s embodied a policy framework which left it immune from the Keynesian revolution and contained important linkages with Friedman’s views in its business‐cycle analysis and policy positions. Claims that this tradition explains why Chicago (and not Harvard) originated the monetarist counter‐revolution.
Maintaining the status quo: federal government budget deficits and defensive rent‐seeking
Authors: Mixon Franklin G. , Wilkinson James B.
Published: July 2002

The purpose of the present study is to test the hypothesis alluded to by Tullock, within the context of defensive rent‐seeking efforts developed by others (e.g. McChesney). Here, we test the idea that defensive rent seeking efforts (or rent‐defending) to maintain the status quo augment offensive rent‐seeking (all proxied by real campaign contributions to US House/Senate candidates, 1976‐1992) during federal budgetary climates of deficit‐cutting (budget‐balancing). When a panel estimator is properly used, our econometric evidence confirms our hypothesis. Evidence from a Parks regression technique suggests that total rent‐seeking is positively related to the amount of federal spending, as others have shown, but that rent‐seeking efforts increase when federal budget deficits are reduced, threatening existing spending patterns and rents. Perhaps an unintended consequence of deficit‐reduction efforts, holding government spending constant, is an increase in the size of the rent‐seeking industry.
Tests of a competitive model of the size and growth of government
Authors: Quang Dao Minh , Esfahani Hadi S.
Published: July 2002

In this paper we test a general equilibrium model of the size and growth of government developed by Dao and Esfahani (1995) using OECD cross‐sectional and US time‐series data. The model is based on the assumption that various socioeconomic groups try to redistribute income in their favor. Results of the tests are consistent with the theoretical explanations implied by the model. They show that the recent growth of government may be explained by the increase in the role of human capital as a factor of production, by the rise in the proportion of the elderly population, and by the reductions in the relative value of nonmarket uses of labor brought about by increased specialization and population pressure.
India’s economic policy reforms: a review
Authors: Bhayankaram Anand Prathivadi
Published: July 2002

India embarked on economic reforms in July 1991, in the wake of a balance of payments crisis. In this article, an attempt is made to review two books and a set of World Bank reports concerning the progress of these reforms. Issues concerning economic policy, impact of the reforms on poverty, sectoral issues relating to agriculture, industry and infrastructure are briefly discussed. As reforms enter a more difficult phase, several challenges remain. Some of these fall under the “economic agenda” of measures needed to maintain economic growth; others can be termed the “development agenda” – of improving human development. Progress with regard to the former is not sufficient to produce results concerning the latter.
Nation, State and Economy: Mises’ contribution
Authors: Yeager Leland B.
Published: July 2002

This essay offers a review of von Mises’ classic Nation, State and Economy(1919). It focuses specifically on the contexts of liberty, the issue of language and nation.
Old lessons not learned: the clash of political and economic nationalism in Latvia
Authors: Balabkins Nicholas W.
Published: July 2002

Latvia, a small country on the Baltic Sea, became independent in 1918, but was occupied by the Soviet Union in 1940. Like its neighbours, Estonia and Lithuania, Latvia has a skewed resource pattern, small domestic market, and an export concentration into commodities. Prior to the Soviet occupation, these three countries never managed to form an economic union to overcome the disadvantages of the small size of the domestic markets in the era of assembly line technology. They practiced “Alleingang” in economic and political matters. After gaining independence in 1991, the Baltic countries learned nothing from the past and have continued practicing “Alleingang” in the age of “high tech”.