Evaluation of cumulative externality: environmental economics, oligopoly and the private provision of public goods

This paper evaluates environmental externality when the structure of the externality is cumulative. The evaluation exercise is based on the assumption that the agents in question form conjectural variations. A number of environments are encompassed within this classification and have received due attention in the literature. Each of these heterogeneous environments, however, possesses considerable analytical homogeneity and permit subscription to a general model treatment. These environments include environmental externality, oligopoly and the analysis of the private provision of public goods. We highlight the general analytical approach by focusing on this latter context, in which debate centers around four issues: the existence of free-riding, the extent to which contributions are matched equally across individuals, the nature of conjectures consistent with equilibrium, and the allocative inefficiency of alternative regimes. This paper resolves each of these issues, with the following conclusions: A consistent-conjectures equilibrium exists in the private provision of public goods. It is the monopolistic-conjectures equilibrium. Agents act identically, contributing positive amounts of the public good in an efficient allocation of resources. There is complete matching of contributions among agents, no free-riding, and the allocation is independent of the number of members within the community. Thus the Olson conjecture—that inefficiency is exacerbated by community size—has no foundation in a consistent-conjectures, cumulative-externality, context (212 words).

Simulation of the global ENSO–Tropical cyclone teleconnection by a high-resolution coupled general circulation model

This study assesses the influence of the El Niño–Southern Oscillation (ENSO) on global tropical cyclone activity using a 150-yr-long integration with a high-resolution coupled atmosphere–ocean general circulation model [High-Resolution Global Environmental Model (HiGEM); with N144 resolution: ~90 km in the atmosphere and ~40 km in the ocean]. Tropical cyclone activity is compared to an atmosphere-only simulation using the atmospheric component of HiGEM (HiGAM). Observations of tropical cyclones in the International Best Track Archive for Climate Stewardship (IBTrACS) and tropical cyclones identified in the Interim ECMWF Re-Analysis (ERA-Interim) are used to validate the models. Composite anomalies of tropical cyclone activity in El Niño and La Niña years are used. HiGEM is able to capture the shift in tropical cyclone locations to ENSO in the Pacific and Indian Oceans. However, HiGEM does not capture the expected ENSO–tropical cyclone teleconnection in the North Atlantic. HiGAM shows more skill in simulating the global ENSO–tropical cyclone teleconnection; however, variability in the Pacific is overpronounced. HiGAM is able to capture the ENSO–tropical cyclone teleconnection in the North Atlantic more accurately than HiGEM. An investigation into the large-scale environmental conditions, known to influence tropical cyclone activity, is used to further understand the response of tropical cyclone activity to ENSO in the North Atlantic and western North Pacific. The vertical wind shear response over the Caribbean is not captured in HiGEM compared to HiGAM and ERA-Interim. Biases in the mean ascent at 500 hPa in HiGEM remain in HiGAM over the western North Pacific; however, a more realistic low-level vorticity in HiGAM results in a more accurate ENSO–tropical cyclone teleconnection.

Communication costs and the boundaries of the firm

Much has been written about where the boundaries of the firm are drawn, but little about what occurs at the boundaries themselves. When a firm subcontracts, does it inform its suppliers fully of what it requires, or is it willing to accept what they have available? In practice firms often engage in a dialogue, or conversation, with their suppliers, in which at first they set out their general requirements, and only when the supplier reports back on how these can be met are their more specific requirements set out. This paper models such conversations as a rational response to communication costs. The model is used to examine the impact of new information technology, such as CAD/CAM, on the conduct of subcontracting. It can also be used to examine its impact on the marketing activities of firms. The technique of analysis, which is based on the economic theory of teams, has more general applications too. It can be used to model all the forms of dialogue involved in the processes of coordination both within and between firms.

Coase and international business: the origin and development of internalisation theory

The internalisation theory of the multinational enterprise is a significant intellectual legacy of Ronald Coase. US direct investment in Europe became highly political in the 1960s, and neoclassical trade theory had no explanation. A theory of the multi-plant enterprise was required, and internalisation theory filled this gap. Using Coasian economics to explain the ownership of production plants, and the geography of trade to explain their location, internalisation theory offered a comprehensive account of MNEs and their role in the international economy. This paper outlines the development of the theory, explains the Coasian contribution, and examines in detail the early work of Hymer, McManus and Buckley and Casson. It then reviews the current state of internalisation theory and suggests some future developments.

Making internalization theory good for practice: the essence of Alan Rugman’s contributions to international business

This perspectives paper and its associated commentaries examine Alan Rugman's conceptual contribution to international business scholarship. Most significantly, we highlight Rugman's version of internalization theory as an approach that integrates transaction cost economics and ‘classical’ internalization theory with elements from the resource-based view, such that it is especially relevant to strategic management. In reviewing his oeuvre, we also offer observations on his ideas for ‘new internalization theory’. We classify his other novel insights into four categories: Network Multinationals; National competitiveness; Development and public policy; and Emerging Economy MNEs. This special section offers multiple views on how his work informed the larger academic debate and considers how these ideas might evolve in the longer term.

The legitimacy of the UN Security Council: evidence from recent General Assembly debates

Existing research on the legitimacy of the UN Security Council is conceptual or theoretical, for the most part, as scholars tend to make legitimacy assessments with reference to objective standards. Whether UN member states perceive the Security Council as legitimate or illegitimate has yet to be investigated systematically; nor do we know whether states care primarily about the Council's compliance with its legal mandate, its procedures, or its effectiveness. To address this gap, our article analyzes evaluative statements made by states in UN General Assembly debates on the Security Council, for the period 1991–2009. In making such statements, states confer legitimacy on the Council or withhold legitimacy from it. We conclude the following: First, the Security Council suffers from a legitimacy deficit because negative evaluations of the Council by UN member states far outweigh positive ones. Nevertheless, the Council does not find itself in an intractable legitimacy crisis because it still enjoys a rudimentary degree of legitimacy. Second, the Council's legitimacy deficit results primarily from states' concerns regarding the body's procedural shortcomings. Misgivings as regards shortcomings in performance rank second. Whether or not the Council complies with its legal mandate has failed to attract much attention at all.

Big social data and political sentiment: the tweet stream during the UK General Election 2015 campaign

The General Election for the 56th United Kingdom Parliament was held on 7 May 2015. Tweets related to UK politics, not only those with the specific hashtag ”#GE2015”, have been collected in the period between March 1 and May 31, 2015. The resulting dataset contains over 28 million tweets for a total of 118 GB in uncompressed format or 15 GB in compressed format. This study describes the method that was used to collect the tweets and presents some analysis, including a political sentiment index, and outlines interesting research directions on Big Social Data based on Twitter microblogging.

Reframing resistance to change: experience from General Motors Poland

This paper describes the successful introduction of a kaizen scheme in a General Motors factory plant in Gliwice, Poland. Employee value systems changed, despite the presence of strong, pre-existing values that might have inhibited this process. These findings are drawn on to examine the concept of ‘resistance to change’ and replace it with a notion of ‘functional persistence’. Our case study illustrates how assuming this position can aid the development of new work attitudes, as opposed to constraining the old ones.

Spatial housing economics: a survey

This introduction to the Virtual Special Issue surveys the development of spatial housing economics from its roots in neo-classical theory, through more recent developments in social interactions modelling, and touching on the role of institutions, path dependence and economic history. The survey also points to some of the more promising future directions for the subject that are beginning to appear in the literature. The survey covers elements hedonic models, spatial econometrics, neighbourhood models, housing market areas, housing supply, models of segregation, migration, housing tenure, sub-national house price modelling including the so-called ripple effect, and agent-based models. Possible future directions are set in the context of a selection of recent papers that have appeared in Urban Studies. Nevertheless, there are still important gaps in the literature that merit further attention, arising at least partly from emerging policy problems. These include more research on housing and biodiversity, the relationship between housing and civil unrest, the effects of changing age distributions - notably housing for the elderly - and the impact of different international institutional structures. Methodologically, developments in Big Data provide an exciting framework for future work.