Home About us Contact
|
Home About us Contact | ||
|
|
||
Market Mechanisms (market + mechanism)
Selected AbstractsExcess Risk Premia of Asian BanksINTERNATIONAL REVIEW OF FINANCE, Issue 2 2000Jianping (J.P.) Mei This paper develops a framework for gauging the risks of emerging market banks by using stock market data. Employing a multifactor asset pricing model that allows for time-varying risk premia, we find the presence of large excess risk premia on Asian bank stocks, especially in those markets affected by the Asian financial crisis. We find that the excess risk premia appear to be negatively related to the degree of economic freedom of a country but positively related to its corruption level. Thus, our findings are consistent with the view that crony capitalism in Asia may have distorted the market mechanism or the systematic risk exposure of banks. This suggests that the excess risk premium provides useful information on risk exposure for opaque banking systems where quality accounting information is not available. [source] Facilitating knowledge management through market mechanismKNOWLEDGE AND PROCESS MANAGEMENT: THE JOURNAL OF CORPORATE TRANSFORMATION, Issue 2 2005Kevin C. Desouza While knowledge markets are in existence and have been shown to be valuable, researchers have yet to systematically investigate them. In this paper, we take the first steps towards an investigation into the mechanisms of knowledge markets. Specifically, we employ a mathematical orientation to demonstrate the pivotal role played by pricing schemes in knowledge management agendas. Our work contributes to the field of knowledge management by providing mathematical proofs rather than anecdotal evidence regarding the significance of pricing knowledge in organizations. Copyright © 2005 John Wiley & Sons, Ltd. [source] Erfordernisse und Grenzen staatlicher Risikoübernahme in der MarktwirtschaftPERSPEKTIVEN DER WIRTSCHAFTSPOLITIK, Issue 4 2005Georg Milbradt Firstly, we shall explore to what extent the state should cover private risks through its social security system. Secondly, we discuss the situation in Germany, with special regard to the question whether Germany's current economic problems , stagnation and high unemployment , are caused by the growth of benefits provided by Social Security and the pay-as-you-go funding method. Thirdly, we look at risk coverage from the perspective of political economics. Polls show that the Germans increasingly mistrust the market mechanism. How, then, can the state reduce its coverage of individual risks and harness market forces instead of providing a minimum of social security? [source] Vietnam's Economy, After the Asian Economic CrisisASIAN-PACIFIC ECONOMIC LITERATURE, Issue 1 2000Truong Do Xuan The year 1989 marked an important turning point in Vietnam: the market mechanism began to take the place of centrally-planned resource allocation. To secure sustainable economic growth at a high level, Vietnam needs further comprehensive reform towards a market economy. The paper argues that the Asian crisis should not be blamed for the recent slowing of the economy. It also raises some other questions, in particular whether the government is still trying to fit the market mechanism into a socialist model. [source] Equity market and foreign capitalCANADIAN JOURNAL OF ECONOMICS, Issue 1 2009Yoko Furukawa Abstract I present a model that demonstrates that the market mechanism is not always effective in stabilizing an open equity market. Foreign capital inflows create multiple equilibria in the equity market, which may simultaneously trigger a currency crisis as well as an equity market crash even if the equity market is well developed. L'auteur présente un modèle qui montre que le mécanisme de marché n'est pas toujours efficace pour stabiliser un marché ouvert d'actions. Les influx de capitaux étrangers créent de multiples équilibres dans le marché des actions, qui peuvent simultanément engendrer une crise de la monnaie et un effondrement du marché des actions, même si le marché des actions est bien développé. [source] Maximizing revenue in Grid markets using an economically enhanced resource managerCONCURRENCY AND COMPUTATION: PRACTICE & EXPERIENCE, Issue 14 2010M. Macías Abstract Traditional resource management has had as its main objective the optimization of throughput, based on parameters such as CPU, memory, and network bandwidth. With the appearance of Grid markets, new variables that determine economic expenditure, benefit and opportunity must be taken into account. The Self-organizing ICT Resource Management (SORMA) project aims at allowing resource owners and consumers to exploit market mechanisms to sell and buy resources across the Grid. SORMA's motivation is to achieve efficient resource utilization by maximizing revenue for resource providers and minimizing the cost of resource consumption within a market environment. An overriding factor in Grid markets is the need to ensure that the desired quality of service levels meet the expectations of market participants. This paper explains the proposed use of an economically enhanced resource manager (EERM) for resource provisioning based on economic models. In particular, this paper describes techniques used by the EERM to support revenue maximization across multiple service level agreements and provides an application scenario to demonstrate its usefulness and effectiveness. Copyright © 2008 John Wiley & Sons, Ltd. [source] Trust and economic organisationECONOMIC AFFAIRS, Issue 1 2001Martin Ricketts Markets induce trust through repeat dealing and the development of reputation. Organisations economise on the use of trust through the appropriate assignment of ownership rights. Trust is not therefore simply a useful,outside'entity which economic analysis takes for granted. The production and,allocation'of trust are, at least partially, an outcome of the operation of the economic system. An important,unintended consequence'of government regulation which does not attract sufficient study and comment is the implicit undermining of trust-inducing market mechanisms and organisational structures. [source] Consumer ,sovereignty' and policy issues in the development of product ecolabelsENVIRONMENTAL POLICY AND GOVERNANCE, Issue 1 2001Alain Nadaï Quality labels are increasingly focused on products' characteristics, requiring heavy scientific expertise to be assessed. Economists approach these labels as market mechanisms , i.e. signalling, reputation, or market differentiation , and ignore their institutional dimension. We contend that, by doing so, they do not address key problems faced by the regulators when developing these labels. The first part fleshes out this idea by examining the institutional dimension of the European ecolabel. We present the negotiation of the paints and varnishes ecolabelling criteria, a success story. The second part discusses three theoretical approaches to product labelling and proposes directions for further research on the subject. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment. [source] Corporate Social Responsibility European StyleEUROPEAN LAW JOURNAL, Issue 2 2008Olivier De Schutter This article explains how, while CSR may have been initially an idea about the scope of the responsibility of companies towards their environment, it has now become a process in which the representatives of the business community have come to occupy the main role, and whose purpose is to promote learning among business organisations, rather than to identify the components of a regulatory framework for CSR. The central question now, therefore, is whether the so-called ,business case' for CSR is strong enough, so that we may hope that the forces of market will suffice to encourage companies to behave responsibly, over and above their obligation to comply with their legal obligations. The article shows, however, that this case rests on certain presuppositions about markets and the business environment, which cannot be simply assumed, but should be affirmatively created by a regulatory framework for CSR. Following the introduction, it proceeds in four stages. First, it examines the development of CSR in the EU. Second, it offers a critical examination of the so-called ,business case' for CSR, taking into account the growing diversity within the enlarged EU. It then discusses, as an alternative, what a regulatory framework for CSR could resemble, highlighting a number of initiatives which have been taken in this regard by the EU. The article finally concludes that, since the failure of the European Multi-Stakeholder Forum on CSR in 2004, the debate has made a turn in the wrong direction, both because of the mistaken view that the establishment of a regulatory framework for CSR would threaten the competitiveness of European companies, and because of the naive (and contradictory) view that reliance on market mechanisms will suffice to ensure that corporations will seek to minimise the negative social and environmental impacts of their activities, even in circumstances where they are not legally obliged to do so. [source] Fragments of Economic Accountability and Trade PolicyFOREIGN POLICY ANALYSIS, Issue 2 2007RYAN KENNEDY While there has been a prodigious amount of literature on trade policy written in the past two decades, very little of that literature has dealt with countries in economic transition or nondemocratic regimes. There has also been a lack of work dealing with state interests in trade policy beyond realpolitik discussions of national security. This article seeks to fill some of these gaps through a study of two samples: one of liberalization in 25 post-Communist countries between the years 1991 and 1999 and the other of 124 countries from around the world in 1997. The study concludes that a key element in the choice between free trade and protectionism is the level of "fragmentation of economic accountability." Such fragmentation consists of two major components: (1) the existence of a strong capitalist class that is independent of the government; and (2) the dispersion of political power among actors both inside and outside the government. Where the government is more accountable to a wide range of interests, policies are more likely to be aligned with market mechanisms, encouraging the adoption of reforms, including the liberalization of trade policy. This article builds on the conclusions of Frye and Mansfield in several ways: (1) it embeds political fragmentation into a larger theoretical framework of economic accountability of government institutions; (2) it introduces the importance of state ownership in shaping government interests; (3) it introduces an idea of social, not just institutional, accountability; and (4) it proposes a statist view of trade policy that is lacking in the present literature. [source] Local Government Reform In Britain 1997,2001: National Forces and International TrendsGOVERNMENT AND OPPOSITION, Issue 2 2003Michael Cole This article considers the origins of the local government reform agenda of the 1997 to 2001 Labour government. The analysis identifies a wide range of factors including recurring themes in the debate about local government, market mechanisms, Labour Party politics, the traditions of the British state, the constitutional reform agenda and the international context. This study also develops the notion of shifting constraints to explain this process and the agenda of the current Labour administration. [source] Resource Allocation Auctions within FirmsJOURNAL OF ACCOUNTING RESEARCH, Issue 5 2007STANLEY BAIMAN ABSTRACT There is growing interest in the use of markets within firms. Proponents have noted that markets are a simple and efficient mechanism for allocating resources in economies in which information is dispersed. In contrast to the use of markets in the broader economy, the efficiency of an internal market is determined in large part by the endogenous contractual incentives provided to the participating, privately informed agents. In this paper, we study the optimal design of managerial incentives when resources are allocated by an internal auction market, as well as the efficiency of the resulting resource allocations. We show that the internal auction market can achieve first-best resource allocations and decisions, but only at an excessive cost in compensation payments. We then identify conditions under which the internal auction market and associated optimal incentive contracts achieve the benchmark second-best outcome as determined using a direct revelation mechanism. The advantage of the auction is that it is easier to implement than the direct revelation mechanism. When the internal auction mechanism is unable to achieve second-best, we characterize the factors that determine the magnitude of the shortfall. Overall, our results speak to the robust performance of relatively simple market mechanisms and associated incentive systems in resolving resource allocation problems within firms. [source] The Commoditization of Societal SafetyJOURNAL OF CONTINGENCIES AND CRISIS MANAGEMENT, Issue 3 2010Petter G. Almklov New public management has led to major institutional changes in the sectors operating critical infrastructures. The previously integrated utility companies have been dismantled and are now run, regulated and organized more like private entities. This paper proposes two concepts that may aid the analysis of these organizational changes and the consequences they may have on societal safety. Commoditization refers to the process where work is sought transformed into atomistic standardized products to be ordered on a market. Modularization refers to the creation of discrete entities coordinated by market mechanisms and standardized interfaces. We argue that commoditization of work and modularization of organizational entities pose challenges to some of the informal characteristics of high-reliability organization's, with recognized importance especially for crisis management. This is illustrated by examples from Norwegian electricity network operators. [source] Introduction to the Special Issue on Marketing and Operations Management Interfaces and CoordinationPRODUCTION AND OPERATIONS MANAGEMENT, Issue 4 2009Teck H. Ho In this special issue, the contributing authors address several emerging marketing and operations interface problems and develop innovative approaches for solving them. Specifically, by explicitly modeling active consumer behavior under different pricing schemes, the papers in this special issue examine how firms can coordinate their marketing and operations to improve their competitiveness and profit. The papers also provide insights on how to develop and operate new and innovative market mechanisms. [source] Driven to Tiers: Socioeconomic and Racial Disparities in the Quality of Nursing Home CareTHE MILBANK QUARTERLY, Issue 2 2004VINCENT MOR Nursing home care is currently a two-tiered system. The lower tier consists of facilities housing mainly Medicaid residents and, as a result, has very limited resources. The nearly 15 percent of U.S. nonhospital-based nursing homes that serve predominantly Medicaid residents have fewer nurses, lower occupancy rates, and more health-related deficiencies. They are more likely to be terminated from the Medicaid/Medicare program, are disproportionately located in the poorest counties, and are more likely to serve African-American residents than are other facilities. The public reporting of quality indicators, intended to improve quality through market mechanisms, may result in driving poor homes out of business and will disproportionately affect nonwhite residents living in poor communities. This article recommends a proactive policy stance to mitigate these consequences of quality competition. [source] Libéralisation des Services publics de réseau et jeux croisés de la régulation: le cas de l'électricitéANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 4 2001Frédéric Varone This article analyses the liberalization of public services with a special focus on the (re)regulation process that is induced. Firstly, a conceptual framework is developed in order to identify the constitutive elements of the public regulation related to market competition, public service obligations, operators and public property, as well as the tension between them. Secondly, a comparative study describes the liberalization and the regulatory design of the electricity sector in England, France, Germany, Norway and Switzerland. As a conclusion, we note the necessity to further analyse the introduction of market mechanisms into formerly monopolistic network industries and its effects. [source] | |||||||||||||