The economic and financial crisis in Russia – background, symptoms and prospects for the future. OSW Report 02/2015

The crisis in Russia’s financial market, which started in mid-December 2014, has exposed the real scale of the economic problems that have been growing in Russia for several years. Over the course of the last year, Russia’s basic macroeconomic indicators deteriorated considerably, the confidence of its citizens in the state and in institutions in charge of economic stability declined, the government and business elites became increasingly dissatisfied with the policy direction adopted by the Kremlin, and fighting started over the shrinking resources. According to forecasts obtained from both governmental and expert communities, Russia will fall into recession in 2015. The present situation is the result of the simultaneous occurrence of three unfavourable trends: the fact that the Russian economy’s resource-based development model has reached the limits of its potential due to structural weaknesses, the dramatic decline in oil prices in the second half of 2014, and the impact of Western economic sanctions. Given the inefficiency of existing systemic mechanisms, in the coming years the Russian leadership will likely resort to ad hoc solutions such as switching to a more interventionist “manual override” mode in governing the state. In the short term, this will allow them to neutralise the most urgent problems, although an effective development policy will be impossible without a fundamental change of the political and economic system in Russia.

On Incentives in Technology Policymaking: What the EU Can Learn from U.S. Developments. CES Germany & Europe Working Papers, No. 07.7, 1997

This paper explores the incentives political and bureaucratic actors face in the institutional setting of EU technology policy. In examining the implications and assumptions of neoclassical and evolutionary theories of technological change, it tries to answer why certain theories do not obtain importance in the political wor1d. By focusing on the positive approach to policymaking, the paper examines why policy learning does not occur m certain institutional settings. In referring to EU technology programs, I show which conceptual and functional shortcomings limit the policies in question. As evaluation and oversight mechanisms have not been sufficiently developed and accepted within the institutional setting, there is much room for inefficiency. I discuss this setting within a simple agency model using two political actors and two firms performing R&D. It is easy to show that when asymmetric information applies, the firms receive positive rents and the political agent gains reputation. The outcome suggests changing the evaluation practices and embedding results in political decision making. Regarding this point, recent U.S. developments seem to have led to more efficiency. Moreover, the paper suggests delegating technology policy to other actors and discussing the empowerment of different principals on the political plane.

How can we enhance our security without damaging our liberty? For a Progressive and European Rehabilitation of Sovereignty. European Policy Brief No. 41, January 2016

How can we reinforce internal security without destroying basic freedoms? This dilemma will become increasingly topical in the context of rising terrorist threats and in view of some of the responses already put in place at the national level. Many observers have pointed out the threat that these measures pose to individual freedom. But few have highlighted their relative inefficiency. Indeed, if the right to security is one of the founding reasons for political government and one of its main sources of legitimacy, can states still guarantee this basic right? This article examines this dilemma and focuses more specifically on its implications for the notion and practice of sovereignty. It also sketches a strong, but nuanced, rescue of sovereignty at the European level in order to assure individual security while, at the same time, protecting our freedoms.

European regions in Brussels: towards functional interest representation? Bruges Political Research Papers 53/2016

Opportunities structures for participation in EU policy-making are characterised by the inefficiency of institutional channels of territorial representation and the progressive inclusion of broad civil society in new systems of consultation and cooperation with EU institutions. Recent Multilevel Governance literature has recognised an increasing convergence in strategies of territorial and functional actors to respond to these challenges. Nevertheless, it has neglected the partial shift of European regions from territorial institutional representation to lobbying strategies based on acting as intermediaries for functional interests. Through strong cooperation with the private sector, regions go beyond their purely institutional roles, partly presenting themselves as actors of functional representation and thus playing by the same rules of most lobbying actors in Brussels: providing specialised and genuine information to EU institutions in exchange for inclusion in the policy-making process.

Transgenerational effects persist down the maternal line in marine sticklebacks: gene expression matches physiology in a warming ocean, supplementary material

Transgenerational effects can buffer populations against environmental change, yet little is known about underlying mechanisms, their persistence, or the influence of environmental cue timing. We investigated mitochondrial respiratory capacity (MRC) and gene expression of marine sticklebacks that experienced acute or developmental acclimation to simulated ocean warming (21°C) across three generations. Previous work showed that acute acclimation of grandmothers to 21°C led to lower (optimised) offspring MRCs. Here, developmental acclimation of mothers to 21°C led to higher, but more efficient offspring MRCs. Offspring with a 21°Cx17°C grandmother-mother environment mismatch showed metabolic compensation: their MRCs were as low as offspring with a 17°C thermal history across generations. Transcriptional analyses showed primarily maternal but also grandmaternal environment effects: genes involved in metabolism and mitochondrial protein biosynthesis were differentially expressed when mothers developed at 21°C, whereas 21°C grandmothers influenced genes involved in hemostasis and apoptosis. Genes involved in mitochondrial respiration all showed higher expression when mothers developed at 21° and lower expression in the 21°Cx17°C group, matching the phenotypic pattern for MRCs. Our study links transcriptomics to physiology under climate change, and demonstrates that mechanisms underlying transgenerational effects persist across multiple generations with specific outcomes depending on acclimation type and environmental mismatch between generations.

Operations and Planning in Sustainable Power Systems

Thesis (Ph.D.)--University of Washington, 2016-06

How cost efficient are Australia's mining industries?

This paper uses a stochastic translog cost frontier model and a panel data of five key mining industries in Australia over 1968-1969 to 1994-1995 to investigate the sources of output growth and the effects of cost inefficiency on total factor productivity (TFP) growth. The results indicate that mining output growth was largely input-driven rather than productivity-driven. Although there were some gains from technological progress and economics of scale in production, cost inefficiency which barely exceeded 1.1% since the mid-1970s in the mining industries was the main factor causing low TFP growth. (C) 2002 Elsevier Science B.V. All rights reserved.

Cultural information gathering by Australian students in France

Interviews with Australian university students returning from study in France indicate that problems in accessing crucial information are common experiences, and frequently lead to students reproducing stereotypes of French administrative inefficiency. Our paper argues that the issue is not one of information per se but of cultural differences in the dissemination of information. It analyses the ways in which students interpret their information-gathering difficulties, and the appropriateness of the strategies they devise for overcoming them. It then examines the pedagogical implications for preparing students for study abroad, suggesting means of both equipping students with alternative ways of understanding 'information skills' and intervening in the perpetuation of stereotypes. Cet article se base sur une quarantaine d'interviews avec des étudiants australiens ayant effectué des séjours d'études en France. La difficulté d'accéder aux renseignements jugés indispensables revient souvent au cours des entretiens, source de frustrations qui amène les Australiens à reproduire un stéréotype de l'inefficacité française. Nous posons qu'il s'agit moins d'un manque d'informations que d'une différence culturelle dans la diffusion des renseignements. Notre analyse porte sur les façons dont les étudiants interprètent leurs difficultés, ainsi que sur l'utilité de leurs stratégies pour réunir les données souhaitées. Ce travail a des conséquences pédagogiques pour la préparation de tels séjours : nous suggérons des moyens de conduire les étudiants à concevoir autrement la recherche de l'information et leurs expériences, intervenant ainsi dans la transmission des stéréotypes.

Optimal price regulation in a growth model with monopolistic suppliers of intermediate goods

In this paper we investigate the trade-off faced by regulators who must set a price for an intermediate good somewhere between the marginal cost and the monopoly price. We utilize a growth model with monopolistic suppliers of intermediate goods. Investment in innovation is required to produce a new intermediate good. Marginal cost pricing deters innovation, while monopoly pricing maximizes innovation and economic growth at the cost of some static inefficiency. We demonstrate the existence of a second-best price above the marginal cost but below the monopoly price, which maximizes consumer welfare. Simulation results suggest that substantial reductions in consumption, production, growth, and welfare occur where regulators focus on static efficiency issues by setting prices at or near marginal cost.

Trade liberalisation and technical efficiency: Evidence from Bangladesh manufacturing industries

The paper investigates the effects of trade liberalisation on the technical efficiency of the Bangladesh manufacturing sector by estimating a combined stochastic frontier-inefficiency model using panel data for the period 197894 for 25 three-digit level industries. The results show that the overall technical efficiency of the manufacturing sector as well as the technical efficiencies of the majority of the individual industries has increased over time. The findings also clearly suggest that trade liberalisation, proxied by export orientation and capital deepening, has had significant impact on the reduction of the overall technical inefficiency. Similarly, the scale of operation and the proportion of non-production labour in total employment appear as important determinants of technical inefficiency. The evidence also indicates that both export-promoting and import-substituting industries have experienced rises in technical efficiencies over time. Besides, the results are suggestive of neutral technical change, although (at the 5 per cent level of significance) the empirical results indicate that there was no technical change in the manufacturing industries. Finally, the joint test based on the likelihood ratio (LR) test rejects the Cobb-Douglas production technology as description of the database given the specification of the translog production technology.

A metafrontier production function for estimation of technical efficiencies and technology gaps for firms operating under different technologies

This paper presents a metafrontier production function model for firms in different groups having different technologies. The metafrontier model enables the calculation of comparable technical efficiencies for firms operating under different technologies. The model also enables the technology gaps to be estimated for firms under different technologies relative to the potential technology available to the industry as a whole. The metafrontier model is applied in the analysis of panel data on garment firms in five different regions of Indonesia, assuming that the regional stochastic frontier production function models have technical inefficiency effects with the time-varying structure proposed by Battese and Coelli ( 1992).

Practical scheme for error control using feedback

We describe a scheme for quantum-error correction that employs feedback and weak measurement rather than the standard tools of projective measurement and fast controlled unitary gates. The advantage of this scheme over previous protocols [for example, Ahn Phys. Rev. A 65, 042301 (2001)], is that it requires little side processing while remaining robust to measurement inefficiency, and is therefore considerably more practical. We evaluate the performance of our scheme by simulating the correction of bit flips. We also consider implementation in a solid-state quantum-computation architecture and estimate the maximal error rate that could be corrected with current technology.

Conditional production of superpositions of coherent states with inefficient photon detection

It is shown that a linear superposition of two macroscopically distinguishable optical coherent states can be generated using a single photon source and simple all-optical operations. Weak squeezing on a single photon, beam mixing with an auxiliary coherent state, and photon detecting with imperfect threshold detectors are enough to generate a coherent state superposition in a free propagating optical field with a large coherent amplitude (alpha>2) and high fidelity (F>0.99). In contrast to all previous schemes to generate such a state, our scheme does not need photon number resolving measurements nor Kerr-type nonlinear interactions. Furthermore, it is robust to detection inefficiency and exhibits some resilience to photon production inefficiency.

Lameness, metabolic and digestive disorders, and technical efficiency in Danish dairy herds: a stochastic frontier production function approach

The relationship between reported treatments of lameness, metabolic disorders (milk fever, ketosis), digestive disorders, and technical efficiency (TE) was investigated using neutral and non-neutral stochastic frontier analysis (SFA). TE is estimated relative to the stochastic frontier production function for a sample of 574 Danish dairy herds collected in 1997. Contrary to most published results, but in line with the expected negative impact of disorders on the average cow milk production, herds reporting higher frequencies of milk fever are less technically efficient. Unexpectedly, however, the opposite results were observed for lameness, ketosis, and digestive disorders. The non-neutral stochastic frontier indicated that the opposite results are due to the relative. high productivities of inputs. The productivity of the cows is also reflected by the direction of impact of herd management variables. Whereas efficient farms replace cows more frequently, enroll heifers in production at an earlier age, and have shorter calving intervals, they also report higher frequency of disorder treatments. The average estimated energy corrected milk loss per cow is 1036, 451 and 242 kg for low, medium and high efficient farms. The study demonstrates the benefit of the stochastic frontier production function involving the estimation of individual technical efficiencies to evaluate farm performance and investigate the source of inefficiency. (C) 2004 Elsevier B.V. All rights reserved.

Relationships of Efficiency to Reproductive Disorders in Danish Milk Production: A Stochastic Frontier Analysis

Relationships of various reproductive disorders and milk production performance of Danish dairy farms were investigated. A stochastic frontier production function was estimated using data collected in 1998 from 514 Danish dairy farms. Measures of farm-level milk production efficiency relative to this production frontier were obtained, and relationships between milk production efficiency and the incidence risk of reproductive disorders were examined. There were moderate positive relationships between milk production efficiency and retained placenta, induction of estrus, uterine infections, ovarian cysts, and induction of birth. Inclusion of reproductive management variables showed that these moderate relationships disappeared, but directions of coefficients for almost all those variables remained the same. Dystocia showed a weak negative correlation with milk production efficiency. Farms that were mainly managed by young farmers had the highest average efficiency scores. The estimated milk losses due to inefficiency averaged 1142, 488, and 256 kg of energy-corrected milk per cow, respectively, for low-, medium-, and high-efficiency herds. It is concluded that the availability of younger cows, which enabled farmers to replace cows with reproductive disorders, contributed to high cow productivity in efficient farms. Thus, a high replacement rate more than compensates for the possible negative effect of reproductive disorders. The use of frontier production and efficiency/ inefficiency functions to analyze herd data may enable dairy advisors to identify inefficient herds and to simulate the effect of alternative management procedures on the individual herd's efficiency.