To save or to consume: linking growth theory with the Keynesian model

In the neoclassical growth theory, higher saving rate gives rise to higher output per capita. However, in the Keynesian model, higher saving rate causes lower consumption, which may lead to a recession. Students may ask, “Should we save or should we consume?” In most of the macroeconomics textbooks, economic growth and Keynesian economics are in separate, sometimes unsequential, chapters. The connection between the short run and the long run is not apparent. The author builds a bridge between the neoclassical growth theory and the Keynesian model. He links the Solow diagram and the IS-LM curves and depicts the short-run to long-run transition of the economy after changes in saving and other macroeconomic policies.

Should we save or should we consume? Linking growth theories and the Keynesian models

In major economic growth theories, high saving rate gives rise to high level of output per capita. But in Keynesian economics, high saving rate causes low consumption and will lead the economy into recession. Students may ask, "For the well-being of an economy, should we save or should we consume?" In most of the intermediate macroeconomics textbooks, economic growth and Keynesian economics are taught in separate chapters; and in many cases, these chapters are not even successive to each other. There lacks a continuity between the long run and short run models. This paper builds a bridge between growth theories and Keynesian models. It links the Solow diagram and the IS-LM curves and depicts the short run and long run implications of a change in the saving rate.

Zipf`s law strikes again : the case of tourism

This paper examines the applicability of Zipf's law to tourism. It is established that a variation of this law holds in this case - a rank-size rule with concavity. Due to this non-linearity, it is shown that a spline regression provides an extremely convenient tool for predicting tourist arrivals in a country. The concavity is explained by appealing to random growth theory (lognormal distribution; Gibrat's law) and locational fundamentals.

New Zealand and its competitors in the knowledge economy

In the US, Australia, the United Kingdom, Canada, Finland, Ireland and other countries, the growth of the Internet and other related new technologies have become the catalyst for the creation of ‘knowledge economies’. The new information and communication technologies have created global markets for goods and services. Countries that have encouraged their people through education and life-long learning and by investing heavily in research and development (R&D) are well positioned to take advantage of these new global markets. Along with globalisation has come the death of distance. Thanks to the Internet, New Zealand is no longer remote from the rest of the world.

But New Zealand’s economy is still too dependent on producing commodities for export. While efforts over the last fifteen years to diversify markets have been very successful, we still need to expand our limited range of products. We must take the next important step and transform New Zealand from a pastoral economy into a knowledge-driven economy. For New Zealand, the Internet is the modern equivalent of the freezer ship that revolutionised our economy last century. If New Zealanders do not seize the opportunities provided by the knowledge economy, we will survive only as an amusement park and holiday land for the citizens of more successful developed economies.

This article puts New Zealand into world perspective by assessing its knowledge economy benchmarks against its competitors. It outlines the theoretical background to ‘‘new growth theory'' and delineates the lessons of that theory, especially for New Zealand. It treats the key issues for New Zealand’s emergence as a knowledge economy, including education, the M ori dimension, immigration, research and development, venture capital, export policy and telecommunications regulation.

Financial development, shocks, and growth volatility

This paper uses spectral theory to develop the following two testable hypotheses in a unified framework for the predictions of business-cycle and endogenous growth models: (i) financial development affects only business-cycle volatility; and (ii) shocks affect both business-cycle volatility and long-run volatility of GDP growth. In other words, volatility caused by shocks is more persistent than that caused by financial underdevelopment. We decompose the business-cycle and long-run volatility by the spectral method and then test the hypotheses at the cross-country level. Empirical evidence provides support for both hypotheses. Higher private credit, a bank-based measure of financial development, dampens business-cycle volatility but not long-run volatility. Volatility of shocks, as measured by the volatility of changes in the terms of trade, magnifies both business-cycle and long-run volatility. The results are robust to accounting for endogeneity, a market-based measure of financial development, and an alternative method of volatility decomposition.

Applying external solutions to organizational development : elearning as a platform for internal growth

Innovations in technology have facilitated eLearning process development, bringing significant impact into education. eLearning is not simply putting study materials online on the Web, nor is it a substitute for traditional classroom teaching (KPMG, 2002). Businesses worldwide have been using eLearning as a facilitator in organisational development through knowledge sharing, especially in the area of web based training and project management. eLearning has also become a large area of potential business for many organisations. In this study, we explore how eLearning has helped an organisation based in India – Tata Interactive Systems (part of TATA conglomerate), which provides eLearning solutions for businesses locally and globally. In this single case study, we explored how the organisation has not only utilised eLearning as an internal development process, but also successfully converted this learning into business opportunities for itself. To study the development process, we have applied the process theories of Van De Ven and Poole (1995).

Evaluating public risk preferences in forest land-use choices using multi-attribute utility theory

Forest policy decisions inherently involve multiple attributes and risk and uncertainty as they largely deal with complex biological, ecological, and socio-political systems. Identifying risk preferences and quantifying their inter-relationships and tradeoffs are useful in formulating better forest policy. Often, technocrats and experts deal with risky decisions, but ideally, stakeholder risk characteristics should be explicitly considered in making policy decisions. This paper analysed societal risk preferences on public forest land-use attributes using multi-attribute utility theory (MAUT). The results indicate significant risk-averse behaviour towards old-growth forest conservation and forest-based recreation but less risk-averse behaviour towards native timber extraction. Overall, the respondents preferred a more conservative forest land-use option, which is consistent with their risk attitudes. The method provides insights into risk preferences of forest stakeholders, which could lead to better understanding of forest management conflicts. Moreover, the method explicitly distinguishes the technical and value components of the decision and is useful in unravelling public risk preferences in multiple-use forest planning situations.

Preparing construction project managers to document professional growth

Deakin University’s School of Architecture and Building is renowned for producing graduates who possess relevant attributes that make them job ready for the building and construction industry. Graduate destination surveys indicate that in the last eight (8) years, 100% of all Infrastructure Logistics (Construction and Facility Management) course graduates found relevant employment. This success is a direct result of a curriculum that is responsive to industry needs alongside educational methodology that focuses on excellent teaching and research while seeking new ways of developing and delivering courses.

The Infrastructure Logistics course prepares graduates to successfully compete in today’s global job market, and allows them to showcase relevant knowledge and skills that are critical in seeking and sustaining employment. Traditionally, tailored resumes served this purpose; however, in many professional fields, professional portfolios are now becoming a more desirable way of providing a summary of relevant attributes alongside evidence of professional abilities.

Sustaining employment, appraisals, and applying for a promotion are often subject to adequate evidence of professional standards and growth. Professional bodies require records of contribution to Continuing Professional Development (CPD) schemes; and accrediting organisations require professionals applying for professional registration to provide documented evidence of their relevant experience and abilities. The Australian Institute of Project Management (AIPM 2007) requires candidates wanting to become Registered Project Managers (RegPM) to demonstrate their current work-based experience and competencies.

This paper reports on a teaching strategy adopted in the Project Management (PM) stream, offered as part of Infrastructure Logistic courses. The teaching strategy is based on a combination of constructivism theory of learning, problem and project based learning, and active learning. The strategy requires systematic reflection and conscious creation of documented evidence of PM attributes and competences in the form of a portfolio.

Preliminary results of action research monitoring the effectiveness of systematic reflection indicate that students respond very positively to the idea of professional journals and professional portfolios. Preliminary results also indicate that students accept reflection and conscious documentation of their achievements as an integral part of their study and future practice.

The welfare economics of measuring sustainability: a new approach based on social choice theory and systems analysis

This paper presents a new measure of sustainability within a welfare economics framework. Gross domestic product (GDP) can be used as an indicator of sustainability if the GDP estimates are undertaken within a cost-benefit analysis framework based on social choice perspectives. Sustainability is dependent on a healthy and functioning socio-economic and environmental (SEE) system. Economic development can damage the SEE system through resource degradation, over-harvesting and pollution. This paper addresses the tensions between economic development and sustainability by undertaking a number of SEE-based adjustments to GDP based on social choice perspectives in order to measure sustainability. These adjustments include the environmental and social costs caused by economic development such as water pollution, the depletion of non-renewable resources, and deforestation. Thailand is used as a case study for a 25 year period (1975-1999). The results show a divergence in terms of GDP per capita and the SEE-adjusted GDP per capita figure. The paper concludes that, with increasing environmental and social costs of economic development, pursuing such extreme high growth objectives without due environmental and social considerations can threaten present social welfare and future sustainability. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.

Revisiting capital structure theory : a test of pecking order and static order trade-of model from Malaysian capital market

This study revisits the capital structure theory and test Pecking Order Hypothesis (POH) and Static Order Trade-off theory (STOT) using Malaysian Listed firms over a period from 1999 to 2002. The evidence from pecking order model suggests that the internal fund deficiency is the most important determinant that possibly explains the issuance of new debt in Malaysian capital market despite the lower predicting power.  While static trade off-model is not fit to explain the issuance of new debt issue in Malaysian capital market. This is an interesting findings that confirm the fact that Malaysian firms do not too much care about tax-shield benefit derive from employ both debt and non-debt tax-shield. The finn's size, which is used to neutralize the size effect, appears to provide some explanation for the variation in its capital structure policy choice; however asset structure and growth no evidence of static-order-trade-off is observed in Malaysian capital market.

Does testosterone mediate the trade-off between nestling begging and growth in the canary (Serinus canaria)?

Nestling birds solicit food from their parents with vigorous begging displays, involving posturing, jostling and calling. In some species, such as canaries, begging is especially costly because it causes a trade off against nestling growth. Fitness costs of begging like this are predicted by evolutionary theory because they function to resolve conflicts of interest within the family over the provision of parental investment. However, the mechanism that links these costs with nestling behaviour remains unclear. In the present study, we determine if the relationships between nestling androgen levels, nestling begging intensities and nestling growth rates are consistent with the hypothesis that testosterone is responsible for the trade-off between begging and growth. We test this idea with a correlational study, using fecal androgens as a non-invasive method for assaying nestling androgen levels. Our results show that fecal androgen levels are positively correlated with nestling begging intensity, and reveal marked family differences in each trait. Furthermore, changes in fecal androgen levels between 5 and 8 days after hatching are positively associated with changes in nestling begging intensity, and negatively associated with nestling growth during this time. Although these correlational results support our predictions, we suggest that that experimental manipulations are now required to test the direct or indirect role of testosterone in mediating the trade-off between begging and growth.

The division of labor, capital, communication technology and economic growth : the case of China 1952–99

The implications of the division of labor, capital, and technology for economic growth have long been a fundamental issue in development economics. This paper employs the bounds testing approach to cointegration to examine the relationship between the division of labor, capital accumulation, communication technology, and economic growth for China over the period 1952–99. We find that in the long run, capital stock and the division of labor both have statistically significant positive effects on growth, while in the short run the effects are not significantly positive. Telecommunication technology, rather surprisingly, has a statistically insignificant impact on growth both in the long run and in the short run. Our findings indicate that there exists a long run equilibrium relationship between capital and the division of labor on the one hand, and economic growth on the other, thereby lending support to the division of labor theory of growth.

Web theory : an introduction

Web Theory is a comprehensive and critical introduction to the theories of the Internet and the World Wide Web. Robert Burnett and P. David Marshall examine the key debates which surround Internet culture: from issues of globalization political economy and regulation, to ideas about communication, identity and aesthetics." "Web Theory explores the shifts in society, culture and the media which have been brought about by the growth of the World Wide Web. It identifies significant readings, Web sites and hypertext archive sources that illustrate the critical discussion about the Internet and it mediates these discussions, indicating key positions within each debate and pointing the reader to key texts.

Interactive urban language and city growth

The thesis is a refinement of semiotic theory in architecture which aims towards developing a conversation between Western theory and the Eastern city. Using theoretical bases including semiotic theory, Japanese analytical text and analogies of cultural products, this thesis proposes that urban language can be perceived and analysed.