Creative Capital in Production, Inefficiency, and Inequality: A TheoreticalAnalysis
We analyze inefficiency and inequality associated with the use of creative capital to produce a final good in a regional economy. Specifically, we first study a case in which the individual creative capital units are perfect substitutes in the production of the final good. We show that the equilibrium outcome is inefficient and that there is too little application of effort. Second, we define an indicator of inequality and show that an increase in inequality enhances efficiency and that it is, in principle, possible to achieve complete efficiency. Third, we focus on the case where the individual creative capital units are perfect complements and show that the equilibrium outcome is, once again, inefficient with too little effort application. Finally, we contend that our theoretical results provide a possible rationale for the observed income inequality in cities and regions in which the activities of the creative class constitute a large part of all economic activities.
Developing a Sectoral New Market Mechanism – Insights from TheoreticalAnalysis and Country Showcases
Parties to the United Nations Framework Convention on Climate Change (UNFCCC) have decided to establish a “new market-based mechanism” (NMM) to promote mitigation across “broad segments” of developing countries’ economies but have so far defined only some broad outlines of how it is to function. This article identifies key design options of the NMM based on a survey of the literature and reviews them against a range of assessment criteria. Furthermore, potential application of the NMM is analysed for five country-sector combinations. The analysis finds that lack of data and of institutions that could manage the NMM are key bottlenecks. In addition, the analysis reveals the existence of substantial no-regret reduction potential, suggesting that sectors may not be sensitive to the market incentives from an NMM. Governmental capacity building and nationally appropriate mitigation actions (NAMAs) might be more appropriate on the short term, preparing the ground for the adoption of market-based approaches at a later stage. NMM pilots could be based on supported NAMAs but should ideally generate tradable and compliance-grade emission credits in order to fully simulate the real-life conditions of an NMM.
Finally, Figure 2 illustrates the temporal paths of X-balls choices for three different participants in the first matching group. Participant 4 chose 50 X-balls in every round, whereas participant 9 quite regularly alternated her choice of X-balls between 100 and 0. Participant 6 is an example of a player who avoided the extrema. This illustration suggests the existence of heterogeneous decision rules, which is confirmed in our individual-data analysis below. Distinguishing participants with constant or alternative play, such as participant 4, respectively 9, can be easily accomplished by a median split via computing the average change in the number of X-balls from one round to the next. Doing so neither reveals nor clears out differences in choice probabilities, payoffs, or information retrieval.
The kinetic analysis based on experiments provides the values of activation energy, the pre-exponential factor of the reaction and the sorption coefficients of CO 2 and CO. The new set of activation energies, pre exponential factor and particle conversion are compared against a variety of data available in the literature. Gasification was carried out in a tubular furnace over a temperature range from 900 to 1200 o C show that except at low CO partial pressures, a nonlinear influence of CO partial pressure over the reaction rate can be recommended. Moreover, the influence of CO 2 partial pressure over the process is better described by linear approximation. Although no significant influence of temperature on the sorption coefficients of CO 2 could be observed, a weak dependency of CO sorption coefficient on the temperature was found. Furthermore, the good compatibility of results for surface related reaction coefficients has been observed for a broad range of parameter values. And finally, an approximate formula with a modification in Langmuir-Hinshelwood formulation is proposed. The new value of reaction coefficient for the Boudouard reaction will be used in the modeling of the combustion of a single coal particle which is described in the following chapters.
that are fueled by the money created by the bank, so that no cutbacks on lending activities are needed. Such reactions should be attended more extensively in studies that focus on the impacts of prudential regulations over a longer term. Second, although we argue that taking the levels of government bonds and bank reserves as exogenously given is a reasonable assumption because these variables cannot be determined by the commercial bank alone at an aggregate level, this may not be applicable at the level of individual banks. For this reason, relaxing such assumptions and introducing heterogeneity into the analytical framework would be a fruitful attempt in the future. Third, it is noteworthy that we have followed a partial equilibrium approach, which puts the commercial bank in the center of discussion and abstracts from the behaviors of other agents, as in the textbook money creation model. Integrating the current analysis with more sophisticated descriptions of agents such as the borrowers, depositors and bank equity owners would be a worthwhile next step. Granting that these limitations be better addressed, the policy implications from our results are likely to hold withal. While we cannot exclude the possibility of the contrary, economists who believe that the new Basel regulations will have no impact on the mechanics of money creation should clarify whether the financial frictions in relevant markets are considered and articulate the real-world evidence that support their assumptions.
when an intellectual analysis of the situation is necessary and action-based strategies must be found. One could conjecture that the three action regulation modes are linked to intelligence, competence and skills as shown in the following figure. The intellectual level, not based on any pre-existing schemes, would then only be de- duced from fluid intelligence demanding new problem-solving aspects and pure rea- soning without any dependencies on preexisting knowledge. The routine or auto- mated level would only be derived from competences and skills since they are strictly automated and unconscious. And finally, the knowledge-based level would combine reasoning aspects of fluid intelligent nature with experiences, knowledge and skills in the meaning of crystallized intelligence. Figure 1 below shows these possible links. In a social situation, all three action regulation levels are likely to occur. In artificial situations, however, one could imagine that these are controllable, which would permit a new approach to measurement that could be considered in the future.
This paper studies the interplay of damage apportionment, ICS and audit quality, financial reporting accuracy, and social welfare. The analysis takes place in a setting where audi- tors face potential additional liability towards capital market participants other than the primary addressees of the audit report due to their legal mandate in investor protection. In contrast to prior findings, I argue that the relation between the damage apportionment rule and the effectiveness of internal controls, the accuracy of financial reports and social welfare is non-monotone. Basically, the decision problem the client firm faces when the damage apportionment changes, is the choice between ’producing’ more accurate finan- cial reports on its own or ’outsourcing’ this process to the auditor. Which strategy is favorable, critically depends on the strength of the leverage that the client firm can apply on the auditor. Because the equilibrium ICS quality steers the auditor’s behavior, the equilibrium audit quality is also ambiguous in the damage apportionment. For currently harsh auditor liability, a reduction of the auditor’s damage share may indeed increase the equilibrium audit quality. Putting these results together, it turns out that auditing and internal controls can be both substitutes and complements, as it is suggested by the mixed empirical evidence. The effect of damage apportionment on social welfare turns out to be ambiguous and dependent on the cost-efficiency of the audit technology avail- able. Interestingly, it shows that a regulator can actually implement a Pareto-efficient equilibrium by assigning all damages to the auditor. This finding economically justifies the common assumption that the auditor pays all the damages out of her ’deep pockets’, while the client firm remains without sanctions.
In this work one particular extension of the Standard Model of particle physics is studied: the hidden photon model. The hidden photon is a new messenger particle. It has simi- lar properties as the ordinary photon mediating the well-known electromagnetic interaction. The underlying framework attempts to solve the (g − 2) puzzle and to explain the positron excess. This means that the hidden photon provides a link between the subjects of particle physics and cosmology by allowing for an interaction between the sectors of ordinary matter within the Standard Model of particle physics and the dark sector in which the dark matter is contained. These studies are examples of how the interplay between theoretical and exper- imental physics enhances our knowledge of nature. The motivation to have a closer view into this eld results from the discrepancy between predictions and observations. Experiments are necessary to probe the theoretical hypothesis this work is based on. This automatically requires that the expected results of these experiments can be predicted precisely.
action kinetics have been determined with the help of thermogravimetric analysis (TGA) in Ch. 3. However, it is expected that the reaction rates in the CWGSR are lower than in the kinetics study for several reasons. First of all, the material used in the kinetic study had an increased catalytic activity and considerably smaller average particle diameter. Furthermore, in contrast to the CWGSR experiments, no binding agent was used in the kinetic study. Fi- nally, only fresh iron oxide material was used in the kinetic study, whereas the material in the CWGSR reactor suffered from degradation during each experiment that was carried out. The impact of these phenomena on the reaction rate is considered by reaction rate coefficients that were modified by a factor, f R :
The effectiveness of aid and SDA is well documented in a number of empirical studies (Bourguignon & Sundberg, 2007; Dollar & Pritchett, 1998; Najam, 2002; O’Brien & ryan, 2001; rajan & Subramanian, 2005; World Bank Development report, 2006). Most of these studies have been based on pure empiricism without any theoretical anchor. literature reveals that more empirical work has been done on the effectiveness of SDA on economic growth and environmental quality. However, less effort has been applied in linking the effectiveness of SDA to classical economic theories. It is in this regard that this paper aims to offer some possible theoretical explanations of how SDA affects envi- ronmental quality. The main objective of the paper is therefore to provide a theoretical support to the already existing body of knowledge on SDA effectiveness.
skills” (Ananiadou and Claro, 2009), the underlying purpose of which is to enhance success in “work, citizenship, and self-actualization” (Dede, 2007, p. 4) and there- fore to foster capabilities adapted to the continuously growing demands emerging as a result of globalization and rapid development of information and communication technologies. The core competencies presented by the Organization for Economic Cooperation and Development (OECD) are one example. They encompass a large portfolio of attributes and characteristics including both “interpersonal core compe- tencies” as well as “delivery-related” and “strategic” ones (OECD, 2013, p. 4). When it comes to qualifying a person’s ability to interact with others, prototypical concepts such as social competence or emotional intelligence are often used. These are seen as important contributors to successful interactions, along with such factors as emo- tional competence, social skills and social intelligence. Nevertheless, the theoretical foundation has incongruities and overlaps in the definitions and meanings of these concepts. And these significantly impede transfer to educational curricula.
Furthermore, the size of the MNC was controlled for its impact on subsidiary governance in the advanced statistical analyses. Because the item displays a four-point ordinal scale, it is seen as eligible for controlling regression analyses as ordinal variables (Tull and Hawkins 1993; Bühl and Zöfel 2000). But the cautious analysis and evaluation of research results suggest that potential methodological concerns through the inequality of interval sizes of the variable (Bühl and Zöfel 2000) should be avoided in advanced statistical analyses. Therefore, the dichotomization of the variable is deemed an appropriate solution, as noted above. However, dichotomization of an ordinary variable has consequences on the data quality: it causes a loss of power through an inferior measurement scale compared to ordinal data. This can lead to a loss of explanatory power because the categories are reduced from four to two. But, given the nature of the control variable of group size, this is not expected for this investigation and, in fact, such dichotomizations are very common in regression analyses (Hair et al. 1998). Yet the determination of the control group is of particular importance. For interval data, the cut-off point is mostly arbitrary with the median, which guarantees that the same number of observations is below and above the cut-off point. Then, the cut-off point can non-trivially attenuate strong correlations (i.e. those higher than 0.7). Categorical data that is dichotomized, on the other hand, will correlate in most cases, which commonly has no scientific reason meaningful in terms of results. Given that the group size was surveyed as ordinal data, the additional statistical power compared to categorical data is usable to dichotomize into one binary variable for each of the four variable values. 72 Hence, a one- sample Runs Cut-Off test 73 is performed to control the median, mode and mean for normality distribution of the variable and to rule out methodological concerns (Table 45,
Cities probably represent the most complex and creative component of man-made environment. Nowadays their structure has been altered since the obvious limits (boundaries) of the “classic city” have been changed as result of the expansion of urban functions to the rural land. The main scope of this project is to present the complex aspects of an idiomorphic phenomenon, named “compact sprawl” of the Greek cities which is stamped by the giant growth of a “latent urbanism”, such as the urban sprawl with a parallel fit of compact structures within old city boundaries. Through a theoretical approach of their partial basic spatial characteristics and taking into account the reality of the Greek urban planning system, the critic approach of “out of plan areas” is seek, in relation to the tight and coherent structures of the city centers, to create a great disharmony. In particular, this phenomenon has significant inflation at the districts of dynamic cities and coastal locations due to an enormous development of tourism. The analysis showed that while the Greek system of urban planning exhibits a “functionalist practice” with adoption of binding building clauses and regulations of land use which approximates in some point, mainly in aspiration level, the principles of a compact city and at the same time deconstruction procedure is operating which does not obey to any kind of rules, subjected to the needs of the market economy and reliant to its political and social acceptance as a procedure of urbanism. The result of the specific practice is the creation of particular and severe environmental problems and mainly the destruction of the urban form and also of country’s cultural identity. Some recent policies with the implementation of land use plans and building abatements may seek for the limitation of this phenomenon, but with no essential results and mainly without succeeding in convincing for the social and political convenience of the abatement of the specific kind of building.
a group theoreticalanalysis would not give this result. P nnm is a max- imal space group of P 4 2
m nm [Stokes and Hatch, 1988], where a transition
would be proper ferroelastic, and hence from this perspective, a displacive phase transition would be allowed. In practical terms, it is generally the case that reconstructive phase transitions require some activation energy and can be quenched, and hence metastable polymorphs can be obtained, while dis- placive phase transitions happen on the time scale of phonon frequencies and do not require any activation energy. As no prior crystal chemical knowledge has been used in this deduction, the finding of the importance of a bond between the anion applies to all structures with a marcasite-like structure. It would therefore now be of interest to systematically investigate these with respect to those where the anion-anion bond is very weak, as such border-line cases are probably most likely to allow to obtain new phases. That rutile is very far away from this border-line is clear from a consideration of the O-O distance: O-O bonds are expected to exist between oxygen atoms about 1.4˚ A apart, whereas the shortest observed distance between two oxygen atoms in the rutile structure is 2.53˚ A. With respect to their topologies, rutile and mar- casite (presuming the presence of the S-S bonds) are of maximal symmetry.
An Experiment on Discount Auctions
4.1 Motivation and research questions
The interest in auctions with discounts brings up the desire to find explanations to the ques- tions "Why does a seller offer a discount in an auction?" and "Can one identify cases where the discount may pay for the seller?". In response to these questions, the theoretical model of the DA market institution was developed. One explanation derived from the theoreticalanalysis of the DA model is that asymmetries between bidders can be a driver for discounts in auctions. Asymmetries between bidders means that bidders differ in their nature as well as their preference structures and do not have the same beliefs concerning rival bidders. In particular, asymmetries can be observed in real-world auction environments such as art auc- tions – bidders’ tastes are known to be quite idiosyncratic or bidders have different budget constraints. Offering discounts to economically disadvantaged bidders may increase com- petition in an auction and thus raise the seller’s revenue. More generally, the asymmetries between bidders and the nature of their heterogeneity might be a driver for a seller to offer such an affirmative action in an auction. Whether such an affirmative action pays for the seller strongly depends on the kind of action, the degree of such an action, and the strategic impact on bidders’ decisions and bidding behavior.
The square dimples were realized by the photolitho- graphic method. A ﬂat axial roller bearing ring, 7 mm thick was used as substrate for the process. The ring has an inner diameter of 57 mm and an outer diameter of 90 mm. The main advantage of the ring consists of his extremely ﬂat surface (maximal waviness = 1 μm). The UV lithography process begins by casting a layer of SU8, a viscous epoxy based photo polymer, onto the substrate. The substrate is then spun on a spin coater for a desired time and spin speed to deposit a uniform layer of SU-8 on the substrate surface. The substrate is then placed on a level hot plate and baked for a desired time and temperature. It is then exposed to UV light in the presence of a photomask (having rectangular patterns) to transfer the desired pattern onto the substrate and baked again and developed in an SU-8 developer solution to yield an array of square structures uncovered by the SU8 photoresist. Finally the substrate was etched electrolytically, obtaining in the end the desired textured surface. A number of 12 sectors were etched on each bearing in order to obtain maximal load carrying capacity in accordance with the theoretical results obtained in the previous section. After the bearings were etched, a number of 12 channels for the oil supply were milled onto the substrate (Fig. 7).