Business Service Training Annual Report, FY 2005

Annual Report

Consumers’ Demand for Pork Quality: Applying Semantic Network Analysis, May 2006

Abstract Consideration of consumers’ demand for food quality entails several aspects. Quality itself is a complex and dynamic concept, and constantly evolving technical progress may cause changes in consumers’ judgment of quality. To improve our understanding of the factors influencing the demand for quality, food quality must be defined and measured from the consumer’s perspective (Cardello, 1995). The present analysis addresses the issue of food quality, focusing on pork—the food that respondents were concerned about. To gain insight into consumers’ demand, we analyzed their perception and evaluation and focused on their cognitive structures concerning pork quality. In order to more fully account for consumers’ concerns about the origin of pork, in 2004 we conducted a consumer survey of private households. The qualitative approach of concept mapping was used to uncover the cognitive structures. Network analysis was applied to interpret the results. In order to make recommendations to enterprises, we needed to know what kind of demand emerges from the given food quality schema. By establishing the importance and relative positions of the attributes, we find that the country of origin and butcher may be the two factors that have the biggest influence on consumers’ decisions about the purchase of pork.

Measurement with Some Theory: a New Approach to Evaluate Business Cycle Models

We propose a method to evaluate cyclical models which does not require knowledge of the DGP and the exact empirical specification of the aggregate decision rules. We derive robust restrictions in a class of models; use some to identify structural shocks and others to evaluate the model or contrast sub-models. The approach has good size and excellent power properties, even in small samples. We show how to examine the validity of a class of models, sort out the relevance of certain frictions, evaluate the importance of an added feature, and indirectly estimate structural parameters.

The corrosion of career? Occupational trajectories of engineers and business economists in Switzerland

This doctoral thesis deals with the rise and potential fall of achievement career as an institutional biographical pattern. I start with the assumption that the achievement career, as a result of the spread of large-scale bureaucratic companies, the male-breadwinner family model, and meritocratic ideals, came to life in the first half of the twentieth century. During the so-called 30 glorieuses, it became even a normatively dominant and also politically significant male biographical pattern. But the structural changes that announced the end of the post-war golden age seemed also to threaten and-according to certain scholars-erode this type of occupational trajectory. In order to understand this dynamic I will try to reconstruct the achievement career in Switzerland empirically. I examine (1) the structural changes of the economic field from 1970 to 2000, (2) the transformations of the trajectories during this period, and (3) ways in which the concerned individuals interpret and react to these changes.

Networks of Coordination : Swiss Business Associations as an Intermediary between Business, Politics and Administration during the 20th Century

Until the 1990's, Switzerland could be classified as either a corporatist, cooperative or coordinated market economy where non-market mechanisms of coordination among economic and political actors were very important. In this respect, Business Interest Associations (BIAs) played a key role. The aim of this paper is to look at the historical evolution of the five main peak Swiss BIAs through network analysis for five assorted dates during the 20th century (1910, 1937, 1957, 1980 and 2000) while relying on a database that includes more than 12,000 people. First, we examine the logic of membership in these associations, which allows us to analyze their position and function within the network of the Swiss economic elite. Until the 1980's, BIAs took part in the emergence and consolidation of a closely meshed national network, which declined during the two last decades of the 20th century. Second, we investigate the logic of influence of these associations by looking at the links they maintained with the political and administrative worlds through their links to the political parties and Parliament, and to the administration via the extra-parliamentary commissions (corporatist bodies). In both cases, the recent dynamic of globalization called into question the traditional role of BIAs.

Are There Classical Business Cycles?

The aim of this paper is to test formally the classical business cycle hypothesis, using data from industrialized countries for the time period since 1960. The hypothesis is characterized by the view that the cyclical structure in GDP is concentrated in the investment series: fixed investment has typically a long cycle, while the cycle in inventory investment is shorter. To check the robustness of our results, we subject the data for 15 OECD countries to a variety of detrending techniques. While the hypothesis is not confirmed uniformly for all countries, there is a considerably high number for which the data display the predicted pattern. None of the countries shows a pattern which can be interpreted as a clear rejection of the classical hypothesis.

Iowa State Center Business Office, Iowa State University of Science and Technology, Independent Auditor's Reports, Financial Statements, June 30, 2005 & 2006

State University Audit Report

Business Cycles, Unemployment Insurance, and the Calibration of Matching Models

This paper points out an empirical puzzle that arises when an RBC economy with a job matching function is used to model unemployment. The standard model can generate sufficiently large cyclical fluctuations in unemployment, or a sufficiently small response of unemployment to labor market policies, but it cannot do both. Variable search and separation, finite UI benefit duration, efficiency wages, and capital all fail to resolve this puzzle. However, both sticky wages and match-specific productivity shocks help the model reproduce the stylized facts: both make the firm's flow of surplus more procyclical, thus making hiring more procyclical too.

Credit Constraints, Firms' Precautionary Investment, and the Business Cycle

This paper studies the macroeconomic implications of firms' precautionary investment behavior in response to the anticipation of future financing constraints. Firms increase their demand for liquid and safe investments in order to alleviate future borrowing constraints and decrease the probability of having to forego future profitable investment opportunities. This results in an increase in the share of short-term projects that produces a temporary increase in output, at the expense of lower long-run investment and future output. I show in a calibrated model that this behavior is at the source of a novel and powerful channel of shock transmission of productivity shocks that produces short-run dampening and long-run propagation. Furthermore, it can account for the observed business cycle patterns of the aggregate and firm-level composition of investment.

Markups, Gaps, and the Welfare Costs of Business Fluctuations

In this paper we present a simple theory-based measure of the variations in aggregate economic efficiency: the gap between the marginal product of labor and the household s consumption/leisure tradeoff. We show that this indicator corresponds to the inverse of the markup of price over social marginal cost, and give some evidence in support of this interpretation. We then show that, with some auxilliary assumptions our gap variable may be used to measure the efficiency costs of business fluctuations. We find that the latter costs are modest on average. However, to the extent the flexible price equilibrium is distorted, the gross efficiency losses from recessions and gains from booms may be large. Indeed, we find that the major recessions involved large efficiency losses. These results hold for reasonable parameterizations of the Frisch elasticity of labor supply, the coefficient of relative risk aversion, and steady state distortions.

O empreendedorismo. O perfil do empreendedor da Ilha de Santiago Cabo Verde

Este trabalho apresenta um estudo qualitativo, desenvolvido através de pesquisa exploratória, bibliográfica e de campo, feito a trezentos e noventa e nove empreendedores e empresários da Ilha de Santiago, tendo em consideração o cenário económico actual e a preocupação à volta do sector privado. Procurou-se através de pesquisa junto às empresas activas, e cujo número de pessoas ao seu serviço não ultrapassa vinte, identificar três pontos fundamentais relacionados com os empreendedores: investigar os factores que levaram as pessoas a tornarem-se empreendedores; investigar as características principais do empreendedor de sucesso; identificar as características imprescindíveis para se atingir o sucesso empresarial relacionadas com o conhecimento, competências, atitude e talento, sequenciadas por ordem de importância. Para um melhor entendimento destas questões foi utilizado um referencial teórico que aborda o empreendedorismo. A pesquisa de campo foi realizada através de utilização de questionários – entrevistas às empresas estabelecidas nesta ilha, e o método de recolha de dados foi o de entrevista directa. Os resultados obtidos mostraram que os empreendedores enfatizam a importância dos factores comportamentais no sucesso das pequenas e médias empresas e evidenciaram que os factores mais significativos e limitativos do sucesso dos empreendedores no Município da Praia, ilha de Santiago, se referem ao ambiente interno do negócio. Considerando todos estes factores e de acordo com as pesquisas desenvolvidas e analisadas, este trabalho recolheu informações específicas dos empreendedores de sucesso da ilha de Santiago e que podem ser úteis para os que almejam o sucesso empresarial e para eventuais programas de capacitação e formação empreendedora na ilha. This work presents a qualitative study developed through exploratory, bibliographic and field research to three hundred and ninety nine managers and entrepreneurs from Santiago Island, taking into consideration the present economical scenario and main concerns linked to private sector. Through a research in active enterprises and whose staff number doesn’t exceed twenty, the goal was to identify three main issues related to entrepreneurs: look into the factors that encouraged people to become entrepreneurs; examine the main characteristics of a successful entrepreneur and identify, sequenced by order of importance, the most critical characteristics related to knowledge, skills, attitude and talent, that allow entrepreneurial success achievement. For a better understanding of these questions, a theoretical approach to entrepreneurship was exploited. Field research was carried on through the use of questionnaires in enterprises located in Praia, and the data collection method was direct interviews. Results obtained showed that entrepreneurs emphasize the importance of behavioral factors in the success of small and medium enterprises and they evidenced that the most significant and restrictive factors of entrepreneurs’ success in Santiago Island are related to internal business environment. Considering these factors, and according to research developed and analyzed, the work has collected specific information of successful entrepreneurs in Santiago that can be useful for those, in the island, who seek entrepreneurial success and for eventual capacity building and entrepreneurial training programs.