Trade Liberalization, Heterogeneous Firms and Industrial Dynamics

This master thesis studies how trade liberalization affects the firm-level productivity and industrial evolution. To do so, I built a dynamic model that considers firm-level productivity as endogenous to investigate the influence of trade on firm’s productivity and the market structure. In the framework, heterogeneous firms in the same industry operate differently in equilibrium. Specifically, firms are ex ante identical but heterogeneity arises as an equilibrium outcome. Under the setting of monopolistic competition, this type of model yields an industry that is represented not by a steady-state outcome, but by an evolution that rely on the decisions made by individual firms. I prove that trade liberalization has a general positive impact on technological adoption rates and hence increases the firm-level productivity. Besides, this endogenous technology adoption model also captures the stylized facts: exporting firms are larger and more productive than their non-exporting counterparts in the same sector. I assume that the number of firms is endogenous, since, according to the empirical literature, the industrial evolution shows considerably different patterns across countries; some industries experience large scale of firms’ exit in the period of contracting market shares, while some industries display relative stable number of firms or gradually increase quantities. The special word “shakeout” is used to describe the dramatic decrease in the number of firms. In order to explain the causes of shakeout, I construct a model where forward-looking firms decide to enter and exit the market on the basis of their state of technology. In equilibrium, firms choose different dates to adopt innovation which generate a gradual diffusion process. It is exactly this gradual diffusion process that generates the rapid, large-scale exit phenomenon. Specifically, it demonstrates that there is a positive feedback between firm’s exit and adoption, the reduction in the number of firms increases the incentives for remaining firms to adopt innovation. Therefore, in the setting of complete information, this model not only generates a shakeout but also captures the stability of an industry. However, the solely national view of industrial evolution neglects the importance of international trade in determining the shape of market structure. In particular, I show that the higher trade barriers lead to more fragile markets, encouraging the over-entry in the initial stage of industry life cycle and raising the probability of a shakeout. Therefore, more liberalized trade generates more stable market structure from both national and international viewpoints. The main references are Ederington and McCalman(2008,2009).

Gauss law commutator in the chirally gauged Wess-Zumino-Witten model

We evaluate the commutator of the Gauss law constraints starting from the chirally gauged Wess-Zumino-Witten action. The calculations are done at tree level, i.e. by evaluating corresponding Poisson brackets. The results are compared with commutators obtained by others directly from the gauged fermionic theory, and with Faddeev's results based on cohomology.

Random matrices: Universality of ESDs and the circular law

Given an n x n complex matrix A, let mu(A)(x, y) := 1/n vertical bar{1 <= i <= n, Re lambda(i) <= x, Im lambda(i) <= y}vertical bar be the empirical spectral distribution (ESD) of its eigenvalues lambda(i) is an element of C, i = l, ... , n. We consider the limiting distribution (both in probability and in the almost sure convergence sense) of the normalized ESD mu(1/root n An) of a random matrix A(n) = (a(ij))(1 <= i, j <= n), where the random variables a(ij) - E(a(ij)) are i.i.d. copies of a fixed random variable x with unit variance. We prove a universality principle for such ensembles, namely, that the limit distribution in question is independent of the actual choice of x. In particular, in order to compute this distribution, one can assume that x is real or complex Gaussian. As a related result, we show how laws for this ESD follow from laws for the singular value distribution of 1/root n A(n) - zI for complex z. As a corollary, we establish the circular law conjecture (both almost surely and in probability), which asserts that mu(1/root n An) converges to the uniform measure on the unit disc when the a(ij) have zero mean.

Metsänomistajille tarjottavat palvelut, palveluntarjoajat ja palvelukentän rakenne

Suomessa metsänomistajille on tarjolla neljäntyyppisiä eri palveluita metsänhoidossa, puukaupassa, omaisuudenhoidossa ja informaatiopalveluissa. Palveluita tarjoaa joukko hyvin erikokoisia organisaatioita, joista osa toimii markkinalähtöisesti toisten tarjotessa palveluitaan lakiperusteisesti. Metsäalan palvelumarkkinat ovat nyt murrosvaiheessa, ja muutoksia on tapahtumassa sekä tarjonta- että kysyntäkentässä. Metsänomistajille tarjottavien palveluiden markkinoita ei tarjoajanäkökulmasta ole aiemmin tutkittu kattavasti. Tutkimukset ovat usein keskittyneet suppeasti johonkin palvelulajiin, eikä kokonaiskuvausta palvelumarkkinoista omaisuudenhoitopalvelut mukaan lukien ole ollut tarjolla. Tarjoajakenttään on odotettavissa muutoksia, sillä metsäalan palvelumarkkinoiden rahoituspohjaa ollaan muuttamassa, jolloin markkinoiden kilpailu vapautuu nykytilanteeseen verrattuna. Muutokset koskevat etenkin lakisääteisten organisaatioiden toimintaa, mutta ne tulevat vaikuttamaan koko toimialaan. Kysyntäkentässä aiempi tutkimus on ollut kattavampaa. Etenkin metsänomistajarakenteen muutosta, joka johtuu pääasiassa metsätilojen siirtymisestä kaupungistuneelle sukupolvelle, on tutkittu runsaasti. Lisäksi palveluiden kysyntään vaikuttavia tekijöitä ja palvelun eri laatu-ulottuvuuksia on tutkittu. Voidaan kuitenkin epäillä, kyetäänkö markkinoilla tarjoamaan sellaisia palveluita, jotka todella kattavasti tyydyttävät metsänomistajien tarpeita ja pystyvät tarjoamaan sellaisia hyötyjä, joista ollaan valmiita maksamaan. Tässä tutkimuksessa on tarkasteltu nykyisiä metsäpalvelumarkkinoita, sillä kokonaiskuvan luominen nykytilanteesta tarjoaa pohjan tulevien muutoksien ennakoimiselle. Tutkimusmenetelmänä on käytetty kvalitatiivista sisällönanalyysiä, ja tarkastelun kohteena on ollut palveluntarjoajien metsänomistajille suuntaama markkinointimateriaali – pääasiassa tarjoajien internetissä oleva materiaali. Markkinointimateriaalien tukena on käytetty palveluorganisaatioiden edustajien ja alan asiantuntijoiden teemahaastatteluita. Palveluita ja organisaatioita on tarkasteltu niiden asiakkaan kokemien hyötyjen pohjalta, joita markkinoinnissa palveluihin ja palveluntarjoajiin on pyritty liittämään. Teoreettisesti taustalla on käytetty mallia kuluttajan valintakriteereistä hankintapäätöstä tehtäessä. Tulosten perusteella on löydettävissä kysynnän kannalta kriittisiä palveluita, joiden ympärille palvelukokonaisuuksia on rakennettu. Metsänomistamisen odotetaan olevan kannattavaa, joten eräs palveluntarjonnan haasteista syntyy alan tarpeesta rahoittaa itsensä mielekkäällä aikajänteellä. Tämä luo tarpeen tuloja synnyttävien palveluiden yhdistämiseen kokonaisuuksiksi kustannuksia aiheuttavien, mutta muita hyötyjä tuottavien palveluiden kanssa. Tarjoajien kannalta tärkeää on kyetä luomaan asiakkaita hyödyttäviä palvelukokonaisuuksia muuttuville markkinoille.

An Axiom of Military Law : Applicability of National Criminal Law to Military Personnel and Associated Civilians Abroad

States regularly deploy elements of their armed forces abroad. When that happens, the military personnel concerned largely remain governed by the penal law of the State that they serve. This extraterritorial extension of national criminal law, which has been treated as axiomatic in domestic law and ignored by international law scholarship, is the subject of this dissertation. The first part of the study considers the ambit of national criminal law without any special regard to the armed forces. It explores the historical development of the currently prevailing system of territorial law and looks at the ambit that national legal systems claim today. Turning then to international law, the study debunks the oddly persistent belief that States enjoy a freedom to extend their laws to extraterritorial conduct as they please, and that they are in this respect constrained only by some specific prohibitions in international law. Six arguments historical, empirical, ideological, functional, doctrinal and systemic are advanced to support a contrary view: that States are prohibited from extending the reach of their legal systems abroad, unless they can rely on a permissive principle of international law for doing so. The second part of the study deals specifically with State jurisdiction in a military context, that is to say, as applied to military personnel in the strict sense (service members) and various civilians serving with or accompanying the forces (associated civilians). While the status of armed forces on foreign soil has transformed from one encapsulated in the customary concept of extraterritoriality to a modern regulation of immunities granted by treaties, elements of armed forces located abroad usually do enjoy some degree of insulation from the legal system of the host State. As a corollary, they should generally remain covered by the law of their own State. The extent of this extraterritorial extension of national law is revealed in a comparative review of national legislation, paying particular attention to recent legal reforms in the United States and the United Kingdom two states that have sought to extend the scope of their national law to cover the conduct of military contractor personnel. The principal argument of the dissertation is that applying national criminal law to service members and associated civilians abroad is distinct from other extraterritorial claims of jurisdiction (in particular, the nationality principle or the protective principle of jurisdiction). The service jurisdiction over the armed forces has a distinct aim: ensuring the coherence and indivisibility of the forces and maintaining discipline. Furthermore, the exercise of service jurisdiction seeks to reduce the chances of the State itself becoming internationally liable for the conduct of its service members and associated civilians. Critically, the legal system of the troop-deploying State, by extending its reach abroad, seeks to avoid accountability gaps that might result from immunities from host State law.

An online-implementable differential evolution tuned all-aspect guidance law

This paper proposes a differential evolution based method of improving the performance of conventional guidance laws at high heading errors, without resorting to techniques from optimal control theory, which are complicated and suffer from several limitations. The basic guidance law is augmented with a term that is a polynomial function of the heading error. The values of the coefficients of the polynomial are found by applying the differential evolution algorithm. The results are compared with the basic guidance law, and the all-aspect proportional navigation laws in the literature. A scheme for online implementation of the proposed law for application in practice is also given. (c) 2010 Elsevier Ltd. All rights reserved.