bluuebunny/crossref_metadata_2025 huggingface dataset:
An analytical hierarchy process framework for comparing the overall performance of manufacturing departments
Authors: Rangone Andrea
Published: July 2002

Many authors have suggested including non‐financial measures, besides traditional cost measures, in manufacturing performance measurement systems, in order to control the correct implementation of the manufacturing strategy with respect to all competitive priorities (quality, timeliness, flexibility, dependability, etc.). But the use of non‐financial performance measures makes it difficult to assess and compare the overall effectiveness of each manufacturing department, in terms of support provided to the achievement of the manufacturing strategy, since to this aim it is necessary to integrate performance measures expressed in heterogeneous measurement units. Aims to show the potential of the analytical hierarchy process (AHP) for assessing and comparing the overall manufacturing performance of different departments. Does not report the detailed analytical description of the AHP but focuses on the practical problems and managerial implications related to its application to performance measurement, pointing out also its assumptions and limitations.
Optimal joint set‐up and calibration policy with unequal revenue from oversized and undersized items
Authors: Ladany Shaul P.
Published: July 2002

Jointly determines the optimal level to which the mean of a critical variable should be set up, and the optimal number of repetitions until recalibration, for the case where the variable is distributed normally, the mean changes linearly with the number of repetitions, and the revenue per oversized and undersized item is unequal. Proves that the optimal set‐up level should be below the mid‐point between the specification limits by a distance which depends on the slope of change of the mean, on the recalibration cycle, and on a function of the per unit revenues, in such a manner that just prior to the recalibration the mean reaches a different distance above the mid‐point. Outlines a method for the numerical evaluation of the optimal number of cycle repetitions, and derives a general approximation formula which allows its closed loop determination. Provides a numerical example and sensitivity analysis.
Strategically flexible production: the multi‐focused manufacturing paradigm
Authors: Spina Gianluca , Bartezzaghi Emilio , Bert Andrea , Cagliano Raffaella , Draaijer Domien , Boer Harry
Published: July 2002

Defines a new manufacturing paradigm and investigates its adoption and performances, within the assembly industry on a global basis. The definition of the paradigm is based on a set of basic principles to design and manage production systems which discard the traditional way of organizing manufacturing activities, and pool companies which pursue different manufacturing strategies and implement different innovative techniques. The paradigm is characterized by the simultaneous implementation of three principles: strategic multi‐focusedness, integration of business processes across functions, and process ownership. Starting from an operationalization based on fuzzy logic, explores the hypotheses about the adoption and the performance improvements of the multi‐focused manufacturing paradigm using a sample from the International Manufacturing Strategy Survey (IMSS) database. The paradigm has been adopted widely across countries and industries involved in the IMSS survey. Shows that process ownership is poorly implemented by most of the companies at the moment, while multi‐focusedness and integration are more on hand. Companies which have adopted the paradigm are improving their performance significantly better and quicker than partial or non‐adopters. Highlights different possible patterns that the companies can follow to reach core adoption of the multi‐focused manufacturing paradigm.
Capturing the dynamics of facility allocation
Authors: Vos Bart , Akkermans Henk
Published: July 2002

States that determining the configuration of a company’s facilities has become a complex issue in today’s globalizing business environment. Existing allocation models often fail to address developments over time and “soft” issues. Therefore, an existing design method to support decision making on strategic allocation issues was extended with a system dynamics component. This extension allows decision makers to capture the inherent dynamics of allocation decisions. In addition, it becomes possible to incorporate “soft” variables in predominantly quantitative models. Applies the extended design method in a case study involving a relocation problem of a mid‐sized company in the Dutch metal working industry. Demonstrates the value of this method in terms of managerial decision support, not only for this specific problem, but also for future strategic allocation issues.
Using delay‐time analysis to study the maintenance problem of gearboxes
Authors: Leung Francis , Kit‐leung Mak
Published: July 2002

Uses the technique of delay‐time analysis to model preventive maintenance problems of gearboxes for the Kowloon Motor Bus (KMB) Company Limited in Hong Kong. Presents a basic model of inspection maintenance, along with models of some of the variations which have been observed in the case being studied. Aims, in particular to identify the problems and requirements of KMB and then develop a delay‐time model to fit the case, as well as to determine a preventive maintenance policy derived from the model so that the total maintenance cost per unit time can be minimized. Verifies the feasibility of implementing the policy according to three criteria: workers’ utilization, downtime of the gearboxes and the monthly cost incurred by both maintenance and overhead. Compares the results with those of the current policy. Suggests recommendations to KMB for improving the current maintenance policy, and highlights the general applicability of the delay‐time modelling technique.
Operational autonomy explains the value of group work in both lean and reflective production
Authors: Schuring Roel W.
Published: July 2002

Describes and compares two designs of work group: those which are based on the use of standard operating procedures, as found in lean production, and those based on decentralized in‐group solving of problems, as found in reflective production. Uses a Euro‐Japanese example of the former and a Swedish example of the latter. Concludes that both approaches result in an operational process that runs autonomously. The approaches should be used in different situations.
Optimal allocation of arrivals to a collection of parallel workstations
Authors: Tavana Madjid , Rappaport Jack
Published: July 2002

Presents a model that minimizes an aggregate measure of waiting times and queue lengths for a collection of workstations. Shows that the naïve allocation of arrivals among workstations in proportion to their processing times does not result in an optimized system. Uses the Lagrange multiplier in determining the proportional distribution rate that minimizes waiting times and queue lengths in a collection of workstations. Finally, shows the effectiveness of this model through analytical methods and computer simulation applied to a series of sample cases and an application problem.
World‐class manufacturing project: overview and selected results
Authors: Flynn Barbara B. , Schroeder Roger G. , Flynn E. James , Sakakibara Sadao , Bates Kimberly A.
Published: July 2002

A number of authors have used terms such as “world‐class manufacturing”, “high performance manufacturing” and others to describe comprehensive approaches to manufacturing performance improvement. They have broken new ground by introducing the notion of broad, organization‐wide improvement approaches, involving many complex interrelationships. However, testing the associated relationships is just beginning. The WCM Project seeks to articulate the practices which are associated with world‐class manufacturing and their interrelationships. In this attempt, a number of studies have been conducted, using the comprehensive database developed for the project. Provides a detailed examination of the development and verification of the database, which contains perceptual and objective information about quality, JIT, technology, strategy, organization characteristics and human resource management practices of 42 plants in the machinery, electronics and transportation components industries. It also provides a brief overview of three of the studies conducted as part of this project, dealing with: manufacturing process innovation; the relationship between quality practices and performance; and the relationship between TQM and JIT. Each of these highlights specific practices which are related to performance, as well as relevant infrastructure characteristics.
The linkage among management systems, practices and behaviour in successful manufacturing strategy
Authors: Morita Michiya , Flynn E. James
Published: July 2002

Examines the role and influence of management systems, practices and behaviour in successful manufacturing strategy, based on the development of manufacturing strategy into a comprehensive concept which contains three paradigms: manufacturing as a source of competitive advantage, that the choices of manufacturing processes and other related characteristics are contingent on one another, and there is a relationship between best practice and performance. The study employed a survey of 46 Japanese factories in the machinery, electronics and automotive industries, with 26 people in each factory. The factories were examined on how closely they used “best practices” management. In addition, factor analysis, cluster analysis, t‐tests on differences between the groups and correlations among clusters, practices and performance were conducted. The results supported the study’s three hypotheses: factories report different levels of use of the best practices; best practices are linked into certain sets of practices; and the use of best practices is related to performance. The discussion and conclusions address these findings and are used to offer support for Voss’s recent claim that manufacturing strategy should be considered “a continuous loop” among the three paradigms of manufacturing strategy.
Performance trade‐offs in manufacturing plants
Authors: Mapes John , New Colin , Szwejczewski Marek
Published: July 2002

A sample of 782 manufacturing plants drawn from the UK Best Factor Awards database was used to investigate the nature of trade‐offs between different measures of manufacturing performance. Each plant was ranked within its industry on each performance measure, a high ranking indicating good performance on that measure and a low ranking indicating poor performance. By comparing the ranking of each plant within its industry on each performance measure it was possible to determine the extent to which good performance on one measure was correlated with good performance on other measures. Rankings on added value per employee £, quality consistency, delivery reliability, speed of delivery and the rate of new product introduction were positively correlated, suggesting that good performance on each of these factors is associated with good performance on the rest. Only the extent to which a plant exhibited product variety showed conventional trade‐off characteristics, being negatively correlated with rankings on added value per employee £ and the rate of new product introduction. This implies that, provided that individual operating units can be organized so that each is focused on a relatively narrow product range, trade‐offs can be avoided.
The strategic regeneration of manufacturing by changing routines
Authors: Tranfield David , Smith Stuart
Published: July 2002

Uses theory and empirical data to develop further the understanding of the strategic regeneration of manufacturing companies. Reviews literature relevant to the areas of management and manufacturing strategy and organisational learning, identifying the importance of taking “resource based” views of strategy as a point of departure for aiding understanding of the process of manufacturing regeneration. Argues that regeneration can be understood from a change management perspective as a redefinition of tacit and explicit organisational routines. Reports the further development of earlier work and uses one exemplar case to describe and help begin understanding the complex process of strategic regeneration using an ecological, perceptual/cognitive, and structural analytical framework. Finally, draws some tentative conclusions on the nature and process of strategic regeneration and regenerative strategy, and notes the value and potential of taking a perspective based on the notion of “organisational routines” in attempting to understand this complex phenomenon.
The state of operations management in the UK ‐ a personal view
Authors: New Colin
Published: July 2002

Notes the emergence of major centres of excellence as a sign of the health of operations management as a discipline in the UK. Cites various institutions and their particular areas of expertise. Points out that the research assessment exercise remains a key point of discussion. Considers strengths and weaknesses of current research in the field. Looks to the future of operations as a discipline in the UK, suggesting the need for a multi‐disciplinary approach truly tempered with the reality of human behaviour and motivation.
Optimum level of process mapping and least cost business process re‐engineering
Authors: Soliman F.
Published: July 2002

Process mapping is an essential tool for business process re‐engineering. During the initial steps of business process re‐engineering process mapping is used to evaluate the existing processes and to identify their non‐value added activities. Presents a method for determining the most economical way to determine the levels of process mapping for the purpose of re‐designing. Using this approach, the process designer can determine how many levels of process mapping are required for a given process and how much it is likely to cost. Accordingly, this approach is a more realistic tool for budgeting for process mapping costs and for determining the cost‐effective level of mapping. This approach is based on balancing the usefulness against the cost of collecting the information through process mapping. The main benefit from this approach is an overall reduction in the cost of business process re‐engineering. Therefore this approach may be referred to as the least cost process mapping. This is because this method can be used to determine the optimum level of process mapping and the least cost of process mapping.
Designing BPR support services for small firms
Authors: Cagliano Raffaella , Spina Gianluca , Verganti Roberto , Zotteri Giulio
Published: July 2002

Notes that supporting small to medium‐sized enterprises (SMEs) in their process towards the adoption of business process re‐engineering (BPR) may be essential as the tools and methodologies of BPR were designed for larger companies. Presents a methodology for the design of support services, developed within the context of a European Union (EU) project. The methodology consists of four major steps. The first step consists of an analysis of users’ needs. Since BPR support needs are differentiated and often implicit, an “ad hoc” methodology was developed to make demand explicit and split the potential market into homogeneous segments. The second step identifies the proper services to meet the needs of SMEs. The third step explores current supply of services and the critical success factors of a BPR support centre. Finally, the fourth step defines guidelines for the design of both the support centre and the specific support services. The methodology was developed also on the basis of the case of the Lombard machinery industry. Finally, the paper discusses the transferability of the methodology to other regions and industries.
Just‐in‐time and performance measurement systems
Authors: Upton David
Published: July 2002

The objective of this paper is to assess the use of performance measurement systems in firms implementing just‐in‐time (JIT). A mail questionnaire, with a response rate of 85 percent, was sent to larger New Zealand manufacturing companies. A total of 36 percent of the sample of companies had implemented a JIT programme. JIT firms were found to use non‐financial performance indicators to a greater extent than non‐JIT firms. For JIT firms there was a significant positive correlation between use of non‐financial performance indicators and organisation performance. A significant positive correlation was also found between the use of non‐financial performance indicators and organisation performance for all firms in the survey. Results from this study suggest that there are benefits in adapting the accounting performance measurement system to support and enhance JIT implementation. The study indicates potential benefits from the use of non‐financial performance measures for both JIT and non‐JIT firms.
Service operations management: return to roots
Authors: Johnston Robert
Published: July 2002

Over the last 20 years we have witnessed the emergence of a large‐scale, world‐wide academic movement concerned with the management of services. This paper charts the role and impact of operations management on this movement and proposes that the current key focus for service academics should be with the application of frameworks and techniques. Also suggests that as the service movement has grown, with increasing overlap between the subjects of operations, marketing and HRM for example, there is a need to “return to roots”. Contends that service academics, in their bid to develop cross‐functional service management material, may have lost, or inadvertently ignored, the strength of their core disciplines. Re‐focusing on the traditional strengths of operations management, such as performance quality, design, and operational improvement, might help provide a greater rigour to the developing subject of service management. Discusses nine areas for service operations research and suggests specific research questions. The topics include linking operational performance to business drivers, performance measurement and operations improvement, service design, service technology, the design of internal networks and managing service capacity.
Manufacturing priorities and action programmes in the changing environment
Authors: Nagabhushana T.S. , Shah Janat
Published: July 2002

This paper is based on a survey on manufacturing practices of Indian companies. The purpose was to get an insight into manufacturing priorities and action programmes. The study was also designed to capture the behaviour of manufacturing in the changing environment. Results indicate that manufacturing companies consider cost, quality and delivery as important objectives to be pursued, in that order, with lower priority for the flexibility – preference being for those aspects which can give immediate returns. Action programmes for achieving these objectives emphasise shop‐floor activities and also favour adapting softer options like worker training, periodic reviews etc. Companies seem to be reluctant to adopt approaches requiring either substantial investments or major organisation restructuring. Action programmes proposed by these companies for the future show no significant change when compared to the present, indicating no major shift in approach.
A pragmatic approach to product costing based on standard time estimation
Authors: Jiao Jianxin , Tseng Mitchell M.
Published: July 2002

Proposes a pragmatic approach to product costing. The approach involves two stages, namely the preparatory stage and the production stage. In the preparatory stage, standard routings are first extracted from existing products. A generic activity hierarchy is established according to the analysis of standard routings, where cost drivers for each activity are identified and summarized by appropriate Cost‐related Design Features (CDFs). Then the Maynard Operation Sequence Technique (MOST) is employed to analyze each operation of standard routings to determine the associated standard time. Historical cost data are analyzed to induce the relationships between the CDFs and standard time, namely Time‐Estimating Relationships (TERs). By allocating plant‐wide overhead costs to standard routings, the unit price of standard time is established to indicate Cost‐Estimating Relationships (CERs). A library of material costs is also summarized from existing products. In the production stage, CDFs are first induced from the schematic of a new design. Then a “dummy process plan” for this design can be inferred and used to retrieve the associated TERs to determine its time estimate. Once a standard time has been estimated, CERs can be applied to compile the total product cost by adding the estimated material costs. A case study conducted in an electronics enterprise is also reported.
Developing the concept of supply strategy
Authors: Harland Christine M. , Lamming Richard C. , Cousins Paul D.
Published: July 2002

This article proposes a conceptualisation for supply strategy – an explanation for how organisations arrange and conduct themselves within modern economic environments, in order to satisfy markets in the long and short terms. After an explanation of the emerging global environment within which organisations must compete, the previous approaches to explaining this area of business are explored and found to be insufficient for the new context. There follows a conceptualisation and an account of new, supporting research – a Delphi survey, conducted to test, extend and validate some of the features of the concept. Finally, some suggestions are made for the further development of supply strategy as a useful subject area for managers and researchers.
Cycles of continuous improvement
Authors: Savolainen Taina I.
Published: July 2002

This paper aims at increasing the understanding of the processes and dynamics of CI implementation. The paper presents findings from a longitudinal case study of how the organization is renewed by the embedding of quality‐related managerial ideology. It approaches CI from the perspective of organizational renewal, and looks at implementation as a managerial ideological change process. The paper draws on multi disciplinary concepts. The concept of ideology from political science is applied. Ideology is viewed as a force of organizational renewal, in other words, as a means that exerts influence on managerial thinking and practices. The ideological perspective provides new conceptual ideas and practical insights into CI implementation. The case study shows that CI implementation is cyclical and reveals company‐specific cycles. These cycles imply a challenge to management: the progress in developing CI capabilities is embedded in a rooted managerial ideology through which inimitable competitive advantages can be realized.
Organisational characteristics associated with AMT adoption
Authors: Schroder Richard , Sohal Amrik S.
Published: July 2002

Using data collected from 132 manufacturing companies in Australia and New Zealand, this paper assesses the differences between firms in terms of advanced manufacturing technology (AMT) investment planning and implementation based on firm size and ownership. The analysis presented shows a number of differences. This is an exploratory study with the purpose of providing background data to guide future research in building up a contingency framework for AMT management. It is argued that variables such as firm size and principal ownership are useful additions to the contingency framework in addition to the infrastructure variables such as worker empowerment, quality leadership, soft integration, etc. It is concluded that organisational variables influence adoption of AMT and, hence, future research should focus on examining the relationships between the organisational context and the planning and infrastructure variables, and then relate these to the adoption process and the overall performance of AMT.
Testing for monopoly rents in the market for playing talent – Evidence from English professional football
Authors: Gerrard Bill , Dobson Steve
Published: July 2002

Using the team performance‐club profit framework, a formal model is developed of the determination of the transfer fees paid by football clubs when players are traded for cash. It is argued that transfer fees can involve monopoly rents; the selling club extracts a share of the nonnegative differential between its reservation price and the buying club’s maximum bid‐price. It is shown that a necessary condition for the presence of monopoly rents can be established by testing whether buying‐club characteristics are jointly significant determinants of transfer fees after controlling for player characteristics, time effects and selling‐club characteristics. Using a sample of 1,350 English professional football transfer fees covering the period June 1990 to August 1996, it is found that monopoly rents may exist but the degree of monopoly rents may differ with the size of the transfer fee.
The mathematical economics of compound interest: a 4,000‐year overview
Authors: Hudson Michael
Published: July 2002

Sketches the history of economic thought regarding the self‐expanding growth of investments through the accrual of compound interest. Exercises that calculate such growth in terms of “doubling times” have already been found in Babylonian textbooks from c. 2000 BC. Although compound interest was not permitted to be charged in practice (each loan matured at a given date), investors could keep ploughing back their funds into new loans. Through the ages, this essentially logarithmic principle has described how loan capital grows independently of the ability of debtors (or the economy at large) to pay. It has been expressed by dramatists such as Shakespeare, by novelists, and by eighteenth‐century actuaries and economists. Before the contrast between “geometric” and “arithmetic” rates of increase were made famous by Malthus in his description of population growth tendencies, it was formulated with reference to the work on public debt by Richard Price. This principle is incompatible with “equilibrium” theories of self‐regulating debt, or ideas that economies can automatically adjust to its growth over time.
The fate of new ideas: Hermann Heinrich Gossen, his life, work and influence
Authors: Meijer Gerrit , Vogel Richard F.A.
Published: July 2002

Investigates the fate of Gossen’s ideas and discusses his life, work and influence. Gossen formulated three laws. First, he formulated the law of diminishing marginal utility, which became the foundation of the later marginalist schools. Second, he formulated the law of want equalization which was later elaborated in the Austrian theory of overinvestment or better theory of wrong investment. He was the first to point to the fact that time is a crucial element of value. In this respect, he influenced the discussion on time preference within the Austrian School (critique of Fetter, Mises, and Rotbard on Böhm‐Bawerk). He was also one of the first to use (simple) mathematics in economics.
Exchange rate regimes and economic convergence in the European Union
Authors: Holmes Mark J.
Published: July 2002

Tests for long‐run macroeconomic convergence among European Union (EU) countries according to the various exchange rate regimes that have prevailed over the last 40 years. Applying a recently developed test to the monthly index of industrial production data, output convergence is confirmed or rejected depending on whether or not the first largest principal component based on benchmark deviations with respect to Germany is stationary or not. It is argued that this methodology has key advantages over existing cointegrating and common trends procedures. For most EU countries, there is evidence of increased macroeconomic convergence during the 1990s, where evidence is particularly strong for Belgium, France and The Netherlands. The evidence also indicates that the Snake era of the 1970s was more conducive towards convergence than the initial exchange rate mechanism period of 1979‐1992. Firm evidence of convergence is lacking for Austria, Finland and Sweden, who joined the EU in 1995, and for a sample of non‐EU countries.
Optimal monetary policy and the term structure of interest rates: a note
Authors: Staudinger Sylvia
Published: July 2002

This paper derives the optimal monetary policy under discretion, taking into account that aggregate spending depends on the long‐term real interest rate rather than on the short‐term rate. It deduces optimal shock‐dependent strategies for the monetary instrument, the nominal interest rate and analyzes the influence of both the degree of persistence of supply and demand shocks and the weight on output stabilization in the objective function of the central bank on the optimal monetary reaction. The higher the degree of persistence of a supply shock, the stronger is the reaction of the interest rate, whereas the opposite holds for a demand shock. The reaction on demand disturbances is independent of weight given to output stabilization by the central bank; in the case of a supply shock the reaction of the interest rate depends on this weight.
Estimation of Taiwan’s binary monetary policy reaction function
Authors: Huang Ho‐Chuan (River) , Shen Chung‐Hua
Published: July 2002

This paper proposes a probit regression with autocorrelated errors (PAR) to estimate the reaction function of monetary policy in Taiwan using newly constructed binary monetary indicators. We develop a practical sampling scheme via the Gibbs sampling algorithm with data augmentation to make posterior inference of the binary monetary policy reaction function. In contrast to the conventional approach, our method avoids the problem of multiple integrals by directly drawing values of latent variables from the relevant full conditional density along with all the other parameters. Empirical results show that the monetary authority responds to macroeconomic conditions asymmetrically. Specifically, in the high‐inflation regime, a contractionary monetary policy is implemented to reduce the inflation rate. Once inflation is under control, that is, in the low‐inflation regime, attention is paid to stimulating the growth of the economy.
Policy Reforms and the Theory of Education Finance
Authors: Johnes Geraint , Johnes Jill
Published: July 2002

Discusses the current system of higher education funding in the UK, and proposals for its reform. Possible reforms include methods whereby the direct burden of paying for tuition is shifted from government and towards students, which raises the question of how much of the total burden should be shifted. To examine this issue, constructs a general equilibrium model which seeks to explain the determination of occupation‐specific wages and the allocation of work between three occupations: labouring, management and teaching. Derives comparative statics and assesses the impact of alternative finding arrangements for post‐compulsory education.
The Impact of the Tariff‐Rate Quota on Sugar Imports on the US Economy
Authors: Uri Noel D. , Boyd Roy
Published: July 2002

Examines the impact of the sugar tariff‐rate import quota programme on
the United States economy. Uses a computable general equilibrium model
composed of 14 producing sectors, 14 consuming sectors, six household
categories classified by fincome, and a government. Examines the effects
of abolishing the tariff‐rate import quota on sugar prices and
quantities. Suggests that a complete elimination of the sugar programme
would result in lower output by all producing sectors (by about
$2.85 billion) but, for all producing sectors besides the agriculture
programme crops, crude oil, and petroleum refining sectors, output would
actually increase (by about $2.98 billion). There would also be an
increase in the consumption of goods and services (by about $197
million), and an increase in welfare (by about $121 million). The
government would realize a reduction in revenue of about $15 million.
When subjected to a sensitivity analysis, the study′s results are
reasonably robust with regard to the assumption of the value of the
own‐price elasticity of demand for sugar – i.e., while the model′s
equilibrium values do vary in response to different assumptions of the
values of this elasticity, the fluctuations are not so enormous as to
suggest that the model is unrealistically sensitive to these parameters.
Tariffs versus Quotas under Duopoly
Authors: Tsai Pan‐Long , An Chen Jyh
Published: July 2002

Uses a conjectural variation approach to derive a general result
concerning the equivalence of tariffs and quotas. Shows that, as long as
the quota is binding, the equivalence of tariffs and quotas depends
exclusively on the domestic firm′s conjectural variations. Specifically,
the domestic prices of the goods under the quota are higher than,
identical to, or lower than those under the tariff if the domestic
firm′s conjectural variation under the quota is larger than, equal to,
or smaller than that under the tariff. This conclusion holds for both
price‐setting and quantity‐setting duopoly with heterogeneous goods as
well as quantity‐setting duopoly with homogeneous goods.
Introduction: The Institutional Basis of Market Economies
Authors: Meijer Gerrit
Published: July 2002

Gives a short outline of the main charac‐teristics and emphasizes the
actual signifi‐cance of Walter Eucken′s work. Summarizes the articles
included in the journal.
Walter Eucken’s Contribution to Economics in an International
Perspective
Authors: Meijer Gerrit
Published: July 2002

Gives an overview of the reception of Eucken’s work abroad and the
influences on the thinking of Eucken from outside the German language
area. Further, points to the contribution of Eucken to monetary and
capital theory and the theory of the centrally administered economy, the
significance of the thinking of Eucken, for almost all questions on the
agenda of modern economic policy is illustrated. This especially applies
to the parts which are often marked as utopian, among which are his
ideas in the area of (international) monetary policy.
By‐products and Effective Protection
Authors: Greenaway David , Reed Geoffrey , Hassan Refaat
Published: July 2002

The standard measures of effective protection calculate EPRs by
reference to an activity′s principal product. In many activities
by‐products which have a positive economic value are important. Revises
the standard measures to allow for the incorporation of by‐products and
uses an example to illustrate how their exclusion can impact on
estimated EPRs.
Advertising and information
Authors: Ekelund Robert B. , Mixon Franklin G. , Ressler Rand W.
Published: July 2002

Investigates empirically the importance of buyer characteristics as
well as product and service classifications on the informational content
of advertising supply by sellers utilizing Yellow Pages
advertisements from six US cities. The analysis and tests extend the
categories used in previous tests by including so‐called “credence
goods” by analysing the impact of alternative buyer
characteristics as proxies for time and information costs. The
intra‐city and, to a lesser extent, inter‐city comparisons lend support
to the contemporary theory of advertising as information.
The factor content of net trade for the OECD countries
Authors: Torstensson Johan
Published: July 2002

Applies the two‐factor version of the Heckscher‐Ohlin‐Vanek (HOV)
theorem. Two hypotheses are derived. The empirical analysis offers
support for the second but not for the first hypothesis when trade of
each Organization for Economic Co‐operation and Development (OECD)
country with the rest of the world is analysed. Examines the factor
content of net trade with data on foreign trade between the OECD
countries and then determines average capital‐labour ratio as the OECD
average. Both the hypotheses receive empirical support. Finds that the
two‐factor version of the HOV theorem performs well when applied to the
environment where it is supposed to apply.
The stock market reaction to dividend announcements
Authors: Lonie A.A. , Abeyratna G. , Power D.M. , Sinclair C.D.
Published: July 2002

Investigates the stock market response to interactive dividend and earnings announcements by a sample of 620 UK companies over the period January to June 1991. First, examines the possibility that the response to a dividend announcement may be influenced by whether the dividend is being increased, decreased or left unchanged. US studies suggest that this may indeed be the case and acknowledge the role of the dividend as a signal to investors; dividend increases tend to be associated with positive abnormal returns, and dividend decreases tend to be associated with negative abnormal returns around the time of the dividend announcement. Second, recognizes that identifying a unique dividend information announcement effect is particularly difficult in the UK because UK dividends are almost invariably announced simultaneously with information about corporate earnings. Addresses this problem by focusing on those occasions when the signals associated with these announcements conflict with one another ‐ where dividends are increased and earnings decrease or vice versa. The influence of combinations of dividend and earnings news is found to be important in explaining the share price reaction on the announcement day.
The market valuation of wheat quality characteristics
Authors: Uri Noel D. , Hyberg Bengt
Published: July 2002

Addresses whether the grain quality factors used by the Federal Grain Inspection Service of the US Department of Agriculture in determining the quality grades of wheat exported by the USA including test weight, dockage, moisture content, percentage of foreign material, percentage of shrunken and broken kernels, and protein content, are characteristics that influence the price of wheat for export. Using data on the transactions price for hard red winter wheat, hard red spring wheat, and soft white wheat and the associated quality characteristics, exported between January 1990 and October 1991 to 63 countries, finds that only the test weight and the protein content are characteristics consistently valued by the market.
Heinrich von Stackelberg in the history of economic ideas
Authors: Senn Peter R.
Published: July 2002

Assesses the place of Heinrich von Stackelberg in the history of ideas as reflected in the literature of economics. Uses evidence from three main sources: histories of economics, the periodical literature and doctoral dissertations to support the conclusion that Stackelberg already has an important and lasting place in the history of economic thought. Points out that the use of Stackelberg’s ideas and techniques is now as general and common as the use of those of Cournot, Walras, Pareto and Nash. Presents a short section devoted to his views on state control because these are so often misunderstood. Speculates on possible reasons why Stackelberg is not ranked more highly than he usually is.
Cointegration test of the monetary theory of inflation and forecasting accuracy of the univariate and vector ARMA models of inflation
Authors: Shamsuddin Abul F.M. , Holmes Richard A.
Published: July 2002

Conducts both the cointegration test of the monetary theory of inflation and the Granger‐causality test between the variables in the system, and also develops univariate and multivariate time series models to forecast inflation rates. Quarterly time series data for Pakistan, from 1972‐2 to 1993‐4 is used for empirical investigation. Results suggest no cointegrating or long‐run relationship between the variables in the monetary model. Observes that there is some evidence of Granger‐causality running from inflation to output growth. Comparison of out‐of‐sample quarterly forecasts for the 1988‐1 to 1993‐4 period are made for univariate and vector ARMA models of inflation. States that the forecasting accuracy of the multivariate ARMA model is not statistically different from that of the univariate ARMA model.
Wage policy in high inflation countries
Authors: Marinakis Andrés E.
Published: July 2002

During the 1980s Latin America’s inflation problem worsened and successive stabilization programmes failed in many countries. This led to an increasing concern about the degree of rigidity imposed on the economy by different labour market structures built up over many decades. Wage indexation, in particular, was often blamed for the failure of stabilization and adjustment programmes. Examines the different components of an indexing system and assesses the degree of flexibility that the systems implemented in some countries brought to the labour market. While a particular indexing system may have the effect of reducing wage flexibility in certain periods, the analysis of data at the macro level shows that in the long term wage indexation has not been insurmountable obstacle. Stresses that wage determination is just one of the key processes with a substantial influence on inflation. In the case of high inflationary countries, the existence of various key prices draw attention to the need for co‐ordination in the adjustment of different prices during the application of a stabilization programme.
Do temporal causality tests provide information on policy dominance?
Authors: Katsimbris George M. , Miller Stephen M.
Published: July 2002

A number of recent papers have raised serious questions about the validity of the German dominance hypothesis, using Granger (temporal) causality tests. If Germany dominates within the European Monetary System, then German monetary policy, measured by either money stocks or interest rates should Granger (temporally) cause other EMS countries’ monetary policies, but not vice versa. Empirical evidence leads analysts to conclude that the German dominance hypothesis is invalid, or at a minimum, in need of significant reformulation. Explores similar Granger causality tests, using the recent cointegration and error‐correction modelling strategy, for the US and a group of developing countries during the Bretton Woods period, where conventional wisdom suggests that US policy dominated. Finds significant evidence of two‐way causality between the US money stock and the money stocks of a large number of developing countries. These findings raise a serious questions about the interpretation and/or appropriateness of the Granger causality test for investigating policy dominance hypotheses.
The partisan theory and macroeconomic policy under unscheduled regime transfers: a case study of an LDC
Authors: Abdel‐Rahman A‐M.M.
Published: July 2002

Investigates the possible occurrences of patterns in macroeconomic policy targeting and instruments use in some less developed countries where unscheduled regime transfers may occur. The patterns are held to correspond to those stipulated by Hibbs in his Partisan Theory for advanced democracies after due allowance is made for the nature of government and modes of regime transfer. Undertakes an investigation of Sudan, a country which has witnessed dramatic political changes that assumed the forms of eight alternating regimes in the shape of civilian democracies and military dictatorships since its independence in 1956. Traces, in particular, the evidence on quasi‐political business cycles in output growth and inflation; and on quasi‐political budget cycles in deficits and instruments of finance. Studies patterns on the form of use of policy instruments through reliance on monetary policy surprises. Obtains empirical results which generally point to the possible presence of eco‐political patterns similar in principle to those operable in the case of developed countries but with some distinct differences in nature and rhythm.
More on Hawtrey, Harvard and Chicago
Authors: Laidler David
Published: July 2002

The similarities among the writings of Ralph Hawtrey, Lauchlin Currie and Milton Friedman are re‐affirmed, as is the influence of the former on what Friedman has called “the Chicago tradition” of the 1930s. The underconsumptionist analysis of Paul Douglas is not integral to that tradition.
Economics and the natural environment
Authors: Common Mick
Published: July 2002

Familiarizes the reader with the emerging subject of ecological economics and provides an overview of how ecological economics differs from environmental and resource economics. Proceeds to then review two new environmental and resource economics textbooks, a book on ecological economics and one on the subject of environmental policy in developing economies.
Fiscal financing decisions and exchange rate variability
Authors: Daly Kevin James , Kearney Colm
Published: July 2002

One of the perceived benefits of a flexible exchange rate system is the insulation of the domestic economy from foreign shocks, and the potential for independent policy actions. In view of the considerable uncertainty, which pervades appropriate specification of the relevant theoretical models, the empirical analysis of this paper adopts the vector autoregressive approach. Using quarterly data over the period 1975(2)‐1995(2), models are estimated which test the effect on exchange rates of fiscal variables for seven countries (Australia, Canada, Britain, France, Germany, Italy and the USA). In testing the exchange rate response to a bond financed fiscal expansion, a tax financed fiscal expansion and to a swap of taxes for debt with no change in the level of government expenditure, the results for the seven countries over the recent float are mixed because the impulse response functions to the shocks do not have the same pattern in every country.
Testing for monetary policy convergence in European countries
Authors: Bredin Donal , Fountas Stilianos
Published: July 2002

The paper tests for long‐run monetary policy convergence and short‐run policy interactions in seven ERM countries over the 1979‐1992 period using the approach of multivariate cointegration and Granger‐causality tests. The authors provide evidence for very little monetary policy convergence, even during the more stable 1987‐92 period. Tests for short‐run monetary policy interactions show that, in agreement with some other studies, Germany is not the leader country in the system as it appears to accommodate shocks in other member countries. The tests show also that full monetary policy convergence applied among Germany, Belgium and The Netherlands in the 1987‐92 period implies that these countries could be the first to join a European monetary union should a two‐speed approach to monetary union become a reality.
Providing for the optimum quantity of money
Authors: Cesarano Filippo
Published: July 2002

The optimum quantity of money proposition, whose validity is agreed on, is actually open to criticism. The present paper argues that the weaknesses of the Friedman Rule from the application of the welfare theorems of general equilibrium theory to a monetary economy and shows how, the consistency of the criticism notwithstanding, the optimal solution can still be implemented.