EXPORT SUBSIDIES AND THE FIRST-MOVER (DIS)ADVANTAGE

2011 ◽  
Vol 56 (01) ◽  
pp. 41-50
Author(s):  
MATLOOB PIRACHA
Keyword(s):  
Private Information ◽  
Optimal Policy ◽  
Low Cost ◽  
Complete Information ◽  
Full Information ◽  
Investment Choice ◽  
Export Subsidies ◽  
The Government ◽  
The Impact ◽  
First Mover

In the presence of home firm's ability to make a cost-reducing investment before or after the government set its subsidy level, this paper analyzes the impact of timing on the optimal policy of the government. We find that under complete information assumption, the firm will overinvest and consequently, the government will over-subsidize, resulting in lower welfare levels than would arise under non-intervention. We extend the model to the case in which the home firm has private information about its own costs, which it may want to signal to the government through its investment choice. We find that under this setup, the low-cost firm overinvests even more than under full information case, making the policy of non-intervention even more attractive.

Беларусь после Чернобыля: От замалчивания к игнорированию

2013 ◽  
Vol 40 (2) ◽  
pp. 239-259
Author(s):  
Aliaksandr Dalhouski
Keyword(s):  
Civil Rights ◽  
Chernobyl Accident ◽  
Legal Consciousness ◽  
Soviet Society ◽  
Full Information ◽  
The Social ◽  
Wide Range ◽  
Social Concerns ◽  
The Government ◽  
The Impact

Aliaksandr Dalhouski Belarus after the Chernobyl Disaster: From Silence to Neglect The accident at Chernobyl was an anthropogenic disaster. In the period of the suppression of the disaster’s consequences (1986-1988), the Chernobyl accident was not perceived by the majority of Belarusians as a nation-wide tragedy. At the same time, those living in the Belorussian SSR did not possess civil rights, which prevented them from demanding compensation as a result of inflicted harm, and also they were denied full information about the impact of the disaster on the environment and human health. Such phenomena were a consequence of the state’s suppression of the disaster’s consequences as well as the weak ecological and legal consciousness of the victims in the BSSR. In the period of growing democracy (1989-1991), civic engagement came to the fore and created the perception of the catastrophe a nationwide tragedy. The protest movement forced the government to enact Chernobyl legal legislation. Within the framework of this legislation, massive resettlement was undertaken and a wide range of privileges were granted. With the emergence of an independent and authoritarian regime in the new state of Belarus in the early 1990s, the risks of radiation were downplayed by the social concerns of post-Soviet society, in which the Belarusian regime of President Alexander Lukashenko lessened the importance of the Chernobyl catastrophe.

scholarly journals Outsourcing under incomplete information

2017 ◽  
Vol 10 (1) ◽  
pp. 3-15 ◽  
Author(s):  
Tarun Kabiraj ◽  
Uday Bhanu Sinha
Keyword(s):  
Asymmetric Information ◽  
Incomplete Information ◽  
Private Information ◽  
Low Cost ◽  
Complete Information ◽  
Fixed Cost ◽  
Perfect Bayesian Equilibrium ◽  
Content Type ◽  
Bayesian Equilibrium ◽  
Plant Level

Purpose The purpose of this paper is to show that outsourcing can occur as outcome of a separating or pooling perfect Bayesian equilibrium although it is not profitable under complete information. Therefore, asymmetric information can itself be a reason for outsourcing. Design/methodology/approach The present paper constructs a model of two firms interacting in the product market under asymmetric information where one firm has private information about its technological capability, and it has the option to produce inputs in-house or buy inputs from an input market. However, using outsourced inputs involves a fixed cost at the plant level. The model solves for perfect Bayesian equilibrium. Findings There are situations when under complete information, outsourcing of the input will not occur, but, under incomplete information, either only the low-cost type or both high and low-cost types will go for outsourcing, and there always exist reasonable beliefs supporting these equilibria. In particular, when the fixed cost is neither too small not too large, a separating equilibrium occurs in which the low-cost type outsources inputs from the input market but the high-cost type produces in-house; hence, outsourcing signals the firm’s type. Outsourcing by only the high-cost type firm will never occur in equilibrium. Originality/value That incomplete or asymmetric information can itself be a reason for strategic outsourcing is never identified in the literature. The present paper is an attempt to fill this gap and raise the issue of outsourcing in an incomplete information environment.

Understanding artificial intelligence: insights on China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eleonora Veglianti ◽  
Yaya Li ◽  
Elisabetta Magnaghi ◽  
Marco De Marco
Keyword(s):  
Artificial Intelligence ◽  
High Frequency ◽  
Qualitative Data ◽  
Low Cost ◽  
Ecological Constraints ◽  
Content Type ◽  
Different Types ◽  
The Government ◽  
The Impact ◽  
Broad Level

Purpose The high frequency of disruption and dislocation of many industries, the migration to low-cost countries of different assets and activities, the increase in systemic risk, the birth of social and ecological constraints, as well as the new worldwide competitors require businesses and the overall society to change. In a so-called Industry 4.0. era, understanding the impact of artificial intelligence (AI) in developed as well as in underdeveloped economies has become increasingly crucial. The purpose of this study is to shed the light on the peculiarities of Chinese AI assessing the state of art of AI in this unique and valuable context. Design/methodology/approach Through a research based on a qualitative data analysis, the present paper suggests a new way to analyse AI and to support a better understanding of the local Chinese aspects influencing its development and implementation. Findings The development and implementation of AI in China required tailor solutions which account for the following three main dimensions: the location (i.e. territorial extension, the administrative boundaries); the government approach; and the human capital. Originality/value The analysis presents a broad level activity. In addition, the paper focused on Chinese scientific literature and different types of data (i.e. institutional documents, professional reports, websites and speeches in Chinese). The paper used a multi-faceted approach, including also the tacit knowledge of the authors about the context under investigation.

Observations and Recommendations

2019 ◽  
pp. 102-113
Keyword(s):  
Low Cost ◽  
Sustainable Use ◽  
Revolutionary Change ◽  
Use Of Resources ◽  
The Future ◽  
The Government ◽  
Oil Revenues ◽  
The Impact ◽  
The City

The future of tourism and communication technology are intertwined. As Toffler observed with other revolutionary change, an inter-relationship will be difficult to predict but rewards will be substantial to those who are ahead of the curve. Two critical forces will continue to collide: increased democratization of tourism and increased focus on sustainable use of resources. The growth in incomes and the expansion of low-cost air service make China, India, and a few other developing countries the most rapidly growing tourism markets. This is particularly the case in parts of the Islamic world, resulting in rapidly expanding numbers of Muslims who seek to undertake the Haj. As detailed in a case study, this has resulted in demolition of much of ancient Mecca to make way for tourist hotels, a case where it appears the Saudi government is more interested in offsetting declining oil revenues with tourism revenues than with preservation of a unique tourism asset. Elsewhere the threat of over-tourism is evident in many places. In Europe, this is most evident in Venice where as tourism has expanded, the prices charged for overnight accommodations have shot up, forcing long-term residents to move out of the city and to endure commutes to their places of work back in the city. Local government has a choice – see the asset degrade or limit tourism. The market is well suited to limit tourism, but if the government imposes fees, say a day pass to enter the city, is this an equitable option (i.e., potentially making the city available only to wealthy visitors)? The nation of Bhutan has already imposed a high fee for visitors as a method to maintain the nation's happiness index. The future of tourism is uncertain as is the impact that technology change and concern regarding sustainability.

The 2019 BCPC Congress – Understanding the Demands and Opportunities of a "Green Brexit" – How Do We Deliver Food Production Alongside Environmental Enhancement?

2020 ◽  
Vol 31 (1) ◽  
pp. 39-42
Keyword(s):  
Low Cost ◽  
New Technology ◽  
Sustainable Use ◽  
Pests And Diseases ◽  
Regulatory Affairs ◽  
Digital Era ◽  
Crop Varieties ◽  
The Government ◽  
The Impact ◽  
The Eu

This was the 7th Congress since BCPC decided to return to Brighton for an autumnal discussion on regulatory affairs. The focus was to be very much on the impact of Brexit that had been promised, but not yet delivered. Whatever happens in the future regarding the UK's relationship with the EU, many changes in UK agriculture are expected as the government empathises on the environment rather than production, with farmers having to contend with fewer pesticides registered for use, increasing problems of insects, diseases and weeds resistant to pesticides and the impact of climate change. Farmers will still have to produce high quality food at a low cost to the consumer as the EU policy is to adopt Integrated Pest Management (IPM) as part of the strategy for the sustainable use of pesticides. New technology with genetic engineering, which is increasing the possibility to improve crop varieties more resistant to pests and diseases as well as drought conditions, has to be embraced alongside new ways of applying pesticides and automation in a digital era.

scholarly journals AN INVESTMENT CHOICE PROBLEM AND CALENDAR ANOMALIES: A GROUP AHP MODEL FOR INVESTORS

2020 ◽  
Vol 12 (2) ◽  
Author(s):  
Gabriella Marcarelli ◽  
Matteo Rossi ◽  
Antonella Ferrarro ◽  
Antonio Lucadamo
Keyword(s):  
Financial Markets ◽  
Portfolio Management ◽  
Choice Problem ◽  
Priority Vector ◽  
Investment Choice ◽  
Stock Market Performance ◽  
Calendar Anomalies ◽  
The Government ◽  
The Individual ◽  
The Impact

An investment choice can be influenced by numerous qualitative and quantitative factors that often conflict with one other. Therefore, portfolio management choice is a multi-criteria decision problem that requires flexible and analytic decision tools for investors. For this task, the Analytic Hierarchy Process (AHP) is suitable. We propose an AHP group-based model to analyze an investment choice problem looking at two financial markets including Spain and France. The evaluation criteria that we used in our model are the return of the stock market, performance of government bonds and calendar effects in the financial markets. The 2017 French and Spanish equity market returns and the government bond performances for each country are available in public databases. Mean tests were performed in order to analyze calendar anomalies for both of the markets from 2007-2017. The aim of our study is to propose a model that allows simultaneous evaluation of the impact of the previously mentioned factors on investment choice. Our analysis involves 69 students from the Department DEMM of the University of Sannio (Italy) who have worked on financial market simulators. The data were obtained using questionnaires. The common priority vector procedure (CPVP) was used to determine the individual priorities (derived by individual judgments matrices) and aggregate the individual priorities (derived by individual judgments matrices) to obtain the group preferences. The results show that the decision makers prefer to invest in diversified portfolios.  

Information acquisition and funding for public service agencies: imperfect categorizing

2019 ◽  
Vol 36 (3) ◽  
pp. 246-257
Author(s):  
Tao Zeng ◽  
Horn-Chern Lin
Keyword(s):  
Public Service ◽  
Private Information ◽  
Information Acquisition ◽  
Screening Process ◽  
Content Type ◽  
True Cost ◽  
The Government ◽  
Public Service Agencies ◽  
The Impact ◽  
Service Agencies

Purpose The purpose of this paper is to explore the impact of information acquisition for the purpose of differentiating agencies operating in different localities on the design of optimal funding. Design/methodology/approach This paper is a theoretical study. The focus is on a situation in which agencies providing public services have perfect private information about their cost conditions before the government sets the formula for funding. Findings The authors show that, using a free signal correlated with costs of operation to differentiate agencies situated in different localities, the government can achieve better welfare for households across regions. However, when there exist non-negligible costs involved in the differentiating process, it may pay to acquire information only if the signal acquired is informative enough, i.e., the correlation between the signal and the agencies’ true cost conditions is strong enough. Social implications This paper is of interest to academics and policy makers. Acquiring information for tagging can be viewed as a preliminary screening process. Different types are then endowed with distinctly different incentives to control the costs of operating their agencies. Specifically, when the observed cost signal and the true cost conditions of agencies are positively correlated, the government should optimally be more aggressive in distorting the high-cost type’s effort decision by giving less incentive for the low-cost type agencies to cut costs than in the no-differentiation case, and vice versa. Originality/value This paper is the first study that explores the impact of information acquisition on the design of optimal funding for public service agencies.

Privatisation of Housing and the Impact of the Conservative Government's Initiatives on Low-Cost Homeownership and Private Renting between 1979 and 1984 in England and Wales: 4. Private Renting

1986 ◽  
Vol 18 (8) ◽  
pp. 1029-1037 ◽  
Author(s):  
A D H Crook
Keyword(s):  
Government Policy ◽  
Low Cost ◽  
England And Wales ◽  
Private Renting ◽  
Fourth Part ◽  
The Government ◽  
The Impact ◽  
The Way

This is the final paper in a series of four which describe and evaluate the British Government's policies of privatising housing. In this paper the policies designed to increase the supply of housing for private renting are examined. The paper has four sections. The first is an examination of the private rented market in the context of Government policy, with emphasis on the way policies about private renting have not been related to the tax and subsidy policies in respect of other tenures. In the second the specific initiatives taken by the Government to stimulate investment are examined. The evidence about the impact which these initiatives have had is looked at in part 3. The fourth part is an examination of why the initiatives have had relatively little impact and it is concluded that it is because they are only marginal solutions to the fundamental economic difficulties faced both by landlords and by tenants.

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