Firm size and competition: a comparison of the housebuilding industries in Australia, the UK and the USA

Housebuilding is frequently viewed as an industry full of small firms. However, large firms exist in many countries. Here, a comparative analysis is made of the housebuilding industries in Australia, Britain and the USA. Housebuilding output is found to be much higher in Australia and the USA than in Britain when measured on a per capita basis. At the same time, the degree of market concentration in Australia and the USA is relatively low but in Britain it is far greater, with a few firms having quite substantial market shares. Investigation of the size distribution of the top 100 or so firms ranked by output also shows that the decline in firm size from the largest downwards is more rapid in Britain than elsewhere. The exceptionalism of the British case is put down to two principal reasons. First, the close proximity of Britain’s regions enables housebuilders to diversify successfully across different markets. The gains from such diversification are best achieved by large firms, because they can gain scale benefits in any particular market segment. Second, land shortages induced by a restrictive planning system encourage firms to takeover each other as a quick and beneficial means of acquiring land. The institutional rules of planning also make it difficult for new entrants to come in at the bottom end of the size hierarchy. In this way, concentration grows and a handful of large producers emerge. These conditions do not hold in the other two countries, so their industries are less concentrated. Given the degree of rivalry between firms over land purchases and takeovers, it is difficult to envisage them behaving in a long-term collusive manner, so that competition in British housebuilding is probably not unduly compromised by the exceptional degree of firm concentration. Reforms to lower the restrictions, improve the slow responsiveness and reduce the uncertainties associated with British planning systems’ role in housing supply are likely to greatly improve the ability of new firms to enter housebuilding and all firms’ abilities to increase output in response to rising housing demand. Such reforms would also probably lower overall housebuilding firm concentration over time.

The economic theory of international supply chains: a systems view

This paper offers an integrated analysis of out-sourcing, off-shoring and foreign direct investment within a systems view of international business. This view takes the supply chain rather than the firm as the basic unit of analysis. It argues that competition in the global economy selects supply chains that maximise the joint profit of all the firms in the chain. The systems view is compared with the firm-centred view commonly used in strategy literature. The paper shows that a firm’s strategy must be embedded within an efficient supply chain strategy, and that this strategy must be negotiated with, rather than imposed upon, other firms. The paper analyses the conditions under which various supply chain strategies - and by implication various firm-level strategies - are efficient. Only by adopting a systems view of supply chains is it possible to determine which firm-level strategies will succeed in a volatile global economy.

Competition for land

A key challenge for humanity is how a future global population of 9 billion can all be fed healthily and sustainably. Here, we review how competition for land is influenced by other drivers and pressures, examine land-use change over the past 20 years and consider future changes over the next 40 years. Competition for land, in itself, is not a driver affecting food and farming in the future, but is an emergent property of other drivers and pressures. Modelling studies suggest that future policy decisions in the agriculture, forestry, energy and conservation sectors could have profound effects, with different demands for land to supply multiple ecosystem services usually intensifying competition for land in the future. In addition to policies addressing agriculture and food production, further policies addressing the primary drivers of competition for land (population growth, dietary preference, protected areas, forest policy) could have significant impacts in reducing competition for land. Technologies for increasing per-area productivity of agricultural land will also be necessary. Key uncertainties in our projections of competition for land in the future relate predominantly to uncertainties in the drivers and pressures within the scenarios, in the models and data used in the projections and in the policy interventions assumed to affect the drivers and pressures in the future.

The outsourcing strategy of local and multinational firms: A supply base perspective

Firms outsource through connecting to local and global supply bases and making such connections produces costs of search and evaluation, which are a function of transaction characteristics and firm capabilities. We argue that firms outsource more when those costs are low. Hence, domestic subsidiaries of multinational firms, with low cost access to both local and global supply bases, outsource more than either domestic firms or foreign subsidiaries, as confirmed by evidence from a large data panel. We also propose that among foreign subsidiaries, distance from the home country co-determines search and evaluation costs such that subsidiaries from more distant countries outsource less. This is confirmed for geographic distance, but a positive effect is found for political distance and a mixed effect for cultural distance.

Targeting myocardial remodelling to develop novel therapies for heart failure: a position paper from the Working Group on Myocardial Function of the European Society of Cardiology

The failing heart is characterized by complex tissue remodelling involving increased cardiomyocyte death, and impairment of sarcomere function, metabolic activity, endothelial and vascular function, together with increased inflammation and interstitial fibrosis. For years, therapeutic approaches for heart failure (HF) relied on vasodilators and diuretics which relieve cardiac workload and HF symptoms. The introduction in the clinic of drugs interfering with beta-adrenergic and angiotensin signalling have ameliorated survival by interfering with the intimate mechanism of cardiac compensation. Current therapy, though, still has a limited capacity to restore muscle function fully, and the development of novel therapeutic targets is still an important medical need. Recent progress in understanding the molecular basis of myocardial dysfunction in HF is paving the way for development of new treatments capable of restoring muscle function and targeting specific pathological subsets of LV dysfunction. These include potentiating cardiomyocyte contractility, increasing cardiomyocyte survival and adaptive hypertrophy, increasing oxygen and nutrition supply by sustaining vessel formation, and reducing ventricular stiffness by favourable extracellular matrix remodelling. Here, we consider drugs such as omecamtiv mecarbil, nitroxyl donors, cyclosporin A, SERCA2a (sarcoplasmic/endoplasmic Ca(2 +) ATPase 2a), neuregulin, and bromocriptine, all of which are currently in clinical trials as potential HF therapies, and discuss novel molecular targets with potential therapeutic impact that are in the pre-clinical phases of investigation. Finally, we consider conceptual changes in basic science approaches to improve their translation into successful clinical applications.

The importance of body-mass exponent optimization for evaluation of performance capability in cross-country skiing

Introduction Performance in cross-country skiing is influenced by the skier’s ability to continuously produce propelling forces and force magnitude in relation to the net external forces. A surrogate indicator of the “power supply” in cross-country skiing would be a physiological variable that reflects an important performance-related capability, whereas the body mass itself is an indicator of the “power demand” experienced by the skier. To adequately evaluate an elite skier’s performance capability, it is essential to establish the optimal ratio between the physiological variable and body mass. The overall aim of this doctoral thesis was to investigate the importance of body-mass exponent optimization for the evaluation of performance capability in cross-country skiing. Methods In total, 83 elite cross-country skiers (56 men and 27 women) volunteered to participate in the four studies. The physiological variables of maximal oxygen uptake (V̇O2max) and oxygen uptake corresponding to a blood-lactate concentration of 4 mmol∙l-1 (V̇O2obla) were determined while treadmill roller skiing using the diagonal-stride technique; mean oxygen uptake (V̇O2dp) and upper-body power output (Ẇ) were determined during double-poling tests using a ski-ergometer. Competitive performance data for elite male skiers were collected from two 15-km classical-technique skiing competitions and a 1.25-km sprint prologue; additionally, a 2-km double-poling roller-skiing time trial using the double-poling technique was used as an indicator of upper-body performance capability among elite male and female junior skiers. Power-function modelling was used to explain the race and time-trial speeds based on the physiological variables and body mass. Results The optimal V̇O2max-to-mass ratios to explain 15-km race speed were V̇O2max divided by body mass raised to the 0.48 and 0.53 power, and these models explained 68% and 69% of the variance in mean skiing speed, respectively; moreover, the 95% confidence intervals (CI) for the body-mass exponents did not include either 0 or 1. For the modelling of race speed in the sprint prologue, body mass failed to contribute to the models based on V̇O2max, V̇O2obla, and V̇O2dp. The upper-body power output-to-body mass ratio that optimally explained time-trial speed was Ẇ ∙ m-0.57 and the model explained 63% of the variance in speed. Conclusions The results in this thesis suggest that V̇O2max divided by the square root of body mass should be used as an indicator of performance in 15-km classical-technique races among elite male skiers rather than the absolute or simple ratio-standard scaled expression. To optimally explain an elite male skier’s performance capability in sprint prologues, power-function models based on oxygen-uptake variables expressed absolutely are recommended. Moreover, to evaluate elite junior skiers’ performance capabilities in 2-km double-poling roller-skiing time trials, it is recommended that Ẇ divided by the square root of body mass should be used rather than absolute or simple ratio-standard scaled expression of power output.

Brazilian indexing and inertial inflation: evidence from time-varying estimates of an inflation transfer function

This paper is a theoretica1 and empirica1 study of the re1ationship between indexing po1icy and feedback mechanisms in the inflationary adjustment process in Brazil. The focus of our study is on two policy issues: (1) did the Brazilian system of indexing of interest rates, the exchange rate, and wages make inflation so dependent on its own past values that it created a significant feedback process and inertia in the behaviour of inflation in and (2) was the feedback effect of past inf1ation upon itself so strong that dominated the effect of monetary/fiscal variables upon current inflation? This paper develops a simple model designed to capture several "stylized facts" of Brazi1ian indexing po1icy. Separate ru1es of "backward indexing" for interest rates, the exchange rate, and wages, reflecting the evolution of po1icy changes in Brazil, are incorporated in a two-sector model of industrial and agricultural prices. A transfer function derived irom this mode1 shows inflation depending on three factors: (1) past values of inflation, (2) monetary and fiscal variables, and (3) supply- .shock variables. The indexing rules for interest rates, the exchange rate, and wages place restrictions on the coefficients of the transfer function. Variations in the policy-determined parameters of the indexing rules imply changes in the coefficients of the transfer function for inflation. One implication of this model, in contrast to previous results derived in analytically simpler models of indexing, is that a higher degree of indexing does not make current inflation more responsive to current monetary shocks. The empirical section of this paper studies the central hypotheses of this model through estimation of the inflation transfer function with time-varying parameters. The results show a systematic non-random variation of the transfer function coefficients closely synchronized with changes in the observed values of the wage-indexing parameters. Non-parametric tests show the variation of the transfer function coefficients to be statistically significant at the time of the changes in wage indexing rules in Brazil. As the degree of indexing increased, the inflation feadback coefficients increased, while the effect of external price and agricultura shocs progressively increased and monetary effects progressively decreased.

Oligopolistic competition under knightian uncertainty

This artic/e applies a theorem of Nash equilibrium under uncertainty (Dow & Werlang, 1994) to the classic Coumot model of oligopolistic competition. It shows, in particular, how one can map all Coumot equilibrium (which includes the monopoly and the null solutions) with only a function of uncertainty aversion coefficients of producers. The effect of variations in these parameters over the equilibrium quantities are studied, also assuming exogenous increases in the number of matching firms in the game. The Cournot solutions under uncertainty are compared with the monopolistic one. It shows principally that there is an uncertainty aversion level in the industry such that every aversion coefficient beyond it induces firms to produce an aggregate output smaller than the monopoly output. At the end of the artic/e equilibrium solutions are specialized for Linear Demand and for Coumot duopoly. Equilibrium analysis in the symmetric case allows to identify the uncertainty aversion coefficient for the whole industry as a proportional lack of information cost which would be conveyed by market price in the perfect competition case (Lerner Index).

Essays on competition and returns of inside money

In an early paper, Cavalcanti and Wallace (2001) showed, using a computable version of Cavalcanti-Wallace model (CW-1999), that optimal regulation induces banks to pay interests, instead of contracting the money supply in an inside money allocation. Here, we generalize CW in two fashions, assuming inside money allocations, so that banks are supposed to issue money as they find a potential producer wishing to produce. The first generalization allows for seasonality due to real shocks on preferences with persistence and for monetary policy improvement. We found an asymmetric path for interest rates when constraints matter, even when shocks are independent. The second generalization allows for bank competition, in the sense that banks can choose between two different banking nets. We proof the existence of simple stable and unstable equilibria and also verify the existence of multiple equilibria.

Money supply and capital accumulation on the transition path revisited

Fischer (1979) and Asako (1983) analyze the sign of the correlation between the growth rate of money and the rate of capital accumulation on the transition path. Both plug a CRRA utility (based on a Cobb-Douglas and a Leontief function, respectively) into Sidrauski's model - yet return contrasting results. The present analysis, by using a more general CES utility, presents both of those settings and conclusions as limiting cases, and generates economic gures more consistent with reality (for instance, the interest-rate elasticity of the money demands derived from those previous works is necessarily 1 and 0, respectively).

Cash-cum-in-kind transfers and income tax function

This paper investigates income tax revenues response to tax rate changes taking into consideration that cash-cum-in-kind transfers are used as a redistributive package to the community. First, we show that when cash and in-kind transfers are not tied to be substitute instruments, a marginal income tax increase may unambiguously decrease the quantity supplied of labor (and tax revenues therein). Next, we show that whenever the government chooses the optimum provision for the publicly provided good the tax revenue function has a negatively-sloped part with respect to tax rates except for one case. Last, we consider Brazilian data - PNAD - from 1976 to 2008 to test our theoretical implications. Our estimations suggest a weak evidence in favor of the existence of a La er-type curve for Brazilian income tax revenues data. Moreover, wend that the actual average income tax rate seems to be below the estimated optimum level. In a shorter sample from 1996-1999, we nd evidence that labor supply decreases with tax rate when cash and in-kind transfers are in play. Using a pseudo-panel from the same shorter sample, we try to estimate the elasticity of taxable income, following Creedy and Gemmell (2012) and Saez et al. (2009). We explore a small tax reform between 1997 and 1998 that a ected only the higher income tax bracket, and evidence that Brazil is on the revenue reducing side of the La er Curve, at least for individuals in the higher income tax bracket.

Intervenções governamentais no mercado de crédito bancário brasileiro: bancos públicos e bancos privados varejistas competem entre si?

O presente estudo investiga se há competição entre os bancos públicos e privados varejistas na presença de intervenções governamentais impostas ao mercado de crédito bancário brasileiro, tais como o aumento da oferta de crédito via bancos públicos e a campanha de redução dos spreads bancários capitaneada pelos bancos governamentais. Os resultados encontrados no modelo Diff-in-Diff indicam que os bancos públicos apresentam ritmo de crescimento do estoque de crédito, nível de aprovisionamento, rentabilidade da carteira de crédito, retorno operacional, bem como custo do funding superiores aos bancos privados após o tratamento. Ademais, há evidências de mudanças na estratégia de alocação de recursos dos bancos privados em relação aos pares públicos, tendo as instituições bancárias privadas preferido aumentar a participação de ativos líquidos no balanço em detrimento de operações de crédito após o tratamento. Esses resultados sugerem que os bancos privados não competem com os bancos públicos no segmento de varejo quando estes adotam estratégias de alocação de recursos difusas à maximização do lucro esperado para um dado risco.

Potassium supply to cotton roots as affected by potassium fertilization and liming

O algodoeiro (Gossypium hirsutum ) apresenta alta exigência de K e é muito sensível a baixo pH do solo. A maior parte do K chega às raízes das plantas por difusão no solo. Por existir interação do K com Ca e Mg, a calagem pode interferir no movimento do K no solo, afetando a nutrição da planta. O objetivo deste trabalho foi estudar o efeito de calcário dolomítico e de 0, 15, 30, 45 e 60 g kg-1 de K no suprimento de potássio às raízes do algodoeiro. As plantas foram cultivadas por 40 dias em vasos de 5 L contendo um Latossolo Vermelho-Escuro (68% de areia e 16% de argila). Houve um acréscimo na produção de matéria seca e na acumulação de K em função da adubação potássica. A intercepção radicular do K do solo foi também aumentada pela aplicação de K, mas não foi afetada pela calagem. O fluxo de massa e a difusão foram aumentadas linearmente com a aplicação de K até 60 mg kg-1, nos vasos com calagem. em vasos sem calagem a quantidade de K atingindo as raízes por difusão aumentou até 45 mg kg-1, decrescendo com a dose máxima de potássio. do mesmo modo, mais K entrou em contato com as raízes por fluxo de massa com a maior dose do nutriente. Isto aconteceu porque havia mais raízes finas nos vasos sem calagem e com a dose máxima de potássio. Com a diminuição da distância média entre as raízes, houve maior competição entre elas, culminando com a diminuição do K difundido até as raízes do algodoeiro.

Effect of total abdominal hysterectomy on ovarian blood supply in women of reproductive age

Objective. The purpose of this study was to evaluate the effect of total abdominal hysterectomy on ovarian blood supply using transvaginal color Doppler ultrasonography in women of reproductive age. Methods. This prospective study included 61 women aged 40 years or younger who were divided into 2 groups: group 1, comprising 31 patients who underwent total abdominal hysterectomy (TAH), and group 2, comprising 30 women with no abnormalities. Inclusion criteria included normal ovarian function at baseline, with basal follicle-stimulating hormone levels of less than 15 mUI/mL, normal body weight, no tobacco use, and no history of laparotomy or ovarian disease. Ovarian arterial blood supply by determination of the pulsatility index (PI) on Doppler analysis and ovarian volume on transvaginal ultrasonography were assessed at baseline and at 6 and 12 postoperative months. The Student t test, profile analysis, and Friedman and Mann-Whitney tests were used in the statistical analysis of data. Results. Statistical analysis of baseline data revealed that both groups were homogeneous. At months 6 and 12, greater ovarian volumes and lower PI values were observed in patients who underwent TAH (P < .05). By the end of the study, in 8 of the 31 patients who underwent TAH (25.5%), benign ovarian cysts were observed. in the control group, all the parameters studied remained unchanged. Conclusions. The reduced PI values observed on Doppler ultrasonography suggested a decrease in the resistance flow in the ovarian arteries in women of reproductive age who underwent TAH.

A structure excited by a DC motor of limited power supply and controlled by a pendulum like device

In this paper, a mathematical model is derived via Lagrange's Equation for a shear building structure that acts as a foundation of a non-ideal direct current electric motor, controlled by a mass loose inside a circular carving. Non-ideal sources of vibrations of structures are those whose characteristics are coupled to the motion of the structure, not being a function of time only as in the ideal case. Thus, in this case, an additional equation of motion is written, related to the motor rotation, coupled to the equation describing the horizontal motion of the shear building. This kind of problem can lead to the so-called Sommerfeld effect: steady state frequencies of the motor will usually increase as more power (voltage) is given to it in a step-by-step fashion. When a resonance condition with the structure is reached, the better part of this energy is consumed to generate large amplitude vibrations of the foundation without sensible change of the motor frequency as before. If additional increase steps in voltage are made, one may reach a situation where the rotor will jump to higher rotation regimes, no steady states being stable in between. As a device of passive control of both large amplitude vibrations and the Sommerfeld effect, a scheme is proposed using a point mass free to bounce back and forth inside a circular carving in the suspended mass of the structure. Numerical simulations of the model are also presented Copyright © 2007 by ASME.