Current Strategies in Economics and Management Vol. 2

Critical Evaluation of Organizational Culture and Employee Turnover: Evidence from Ghana

Eric Osei Kwakye — Thu, 18 Jun 2020 00:00:00 +0000

The study focused on the critical evaluation of organizational culture on employee turnover. The paper was limited to the administrative staff of Private Universities in Ghana. The study employed quantitative research design with a convenience sampling technique for the selection of 203 respondents in the study. Correlation and regression analysis were done to test the relationship between the organizational culture and employee turnover as well as their impacts. The study found that Bureaucratic Culture (BC) significantly influences employee turnover (B=. 406; t-test=10.483; p<0.01). Also, the study revealed that Clan Culture (CC) significantly influences employee turnover (B=0.141; t-test=-2.362; p<0.02). Again, it was found from the study that Entrepreneurial Culture has a positive significant effect on employee turnover (B=.679; t-test=-13.154; p<0.01). Finally, the study revealed that Power Culture (PC), though, has a positive impact, does not significantly influence employee turnover (B=.0519; t-test=-1.184; p>0.05). The study recommended that the management of the private universities should strengthen formality hierarchical rules as they are significant values of bureaucratic culture that influence employee turnover.

A Model of Room Rentals in a Seasonal Hotel Illustrating Monopolistic Competition: Descriptive Approach

Gerald Aranoff — Thu, 18 Jun 2020 00:00:00 +0000

This paper illustrates monopolistic competition with a novel model of hotel rooms for daily rental that has peak and off-peak demand periods. There are two types of hotels, hotel_k and hotel _L, each having linear total costs with absolute capacity limits. Hotels_K are static efﬁcient, since they operate with low MC. Hotels _K open year-around and always at full capacity. Hotels_L are output ﬂexible since they operate with low FC. Hotels_L open in the peak-demand periods and shut down in offpeak demand periods. I prove mathematically two propositions with this model. Proposition I shows mathematically the conditions of investor indifference to choose between Hotels_Land Hotels_L . The signiﬁcance is to show a positive aspect of Hotels _L , its output ﬂexibility, that some may overlook. Proposition II shows mathematically the conditions that shifting consumption of room rentals from offpeak to peak will add to consumer surplus. The signiﬁcance is to show the importance of increasing consumption in the peak period for consumer welfare over the cycle even at the cost of decreasing consumption in the off-peak periods . These two proposition are intuitive and common sense.

A Model of Manufacturers and Buyers of Cars Over the Business Cycle Illustrating Competitive Manufacturing: Advanced Study

Gerald Aranoff — Thu, 18 Jun 2020 00:00:00 +0000

I illustrate competitive manufacturing with a simple numerical model of manufacturers and buyers of cars over a business cycle with off-peak and peak demand periods. My model has two types of plants manufacturing cars, plant _K and plant_L , each having linear total costs with absolute capacity limits. Plant _K operates with low VC and high FC. Plant_K , because of its low VC, produces continuously at capacity in off-peak and in peak periods. Plant_L , because of its high VC, shut-downs in off-peak periods and produces at capacity in peak periods. I show results under perfect competition SRMC pricing. I prove mathematically two propositions with this model. Proposition I shows mathematically the conditions of investor indifference to choose between Plants_K and Plants_L . The signiﬁcance is to show a positive aspect of Plants_L, its output-rate ﬂexibility, that some may overlook. Proposition II shows mathematically the conditions that shifting consumption of car purchases from off-peak to peak necessarily adds to consumer surplus. The signiﬁcance is to show the importance of increasing consumer purchases in peak periods. These two propositions are intuitive and common sense.

Research on Total Factor Productivity through the Ghosh Model: The Paradox of Developing Countries?

Nguyen Quang Thai, Bui Trinh, Tran Anh Duong, Nguyen Viet Phong — Thu, 18 Jun 2020 00:00:00 +0000

This study is an attempt to give an overview of the total factor productivity (TFP) through the Leontief - Ghosh system. In principle, the change in the technical factor of input matrix coefficient is due to a change in technology, but in some developing countries the total of intermediate input increase is not due to the influence of technological process changes but due to Other non-economic factors. The efficiency seen from the Leontief - Ghosh relationship is that the ratio of intermediate costs will be small and the rate of value added progressively to 1. In these cases the less efficient the economy lead to the aggregate factor productivity greater. Is that a paradox of developing countries? Do mathematical - economic models seem to make no sense in these cases?

A Numerical Example Illustrating Cost of Idle Capacity in Manufacturing: Advanced Study

Gerald Aranoff — Thu, 18 Jun 2020 00:00:00 +0000

I illustrate cost of idle capacity in manufacturing with a simple numerical model of manufacturers and buyers of cement over a business cycle with off-peak and peak demand periods. Given demand ﬂuctuations, such as the business cycle, signiﬁcant cost of idle capacity is ordinary, necessary, and desirable. My model has two types of plants manufacturing cement, plant_K and plant_L, each having linear total costs with absolute capacity limits. Plant_K operates with low VC and high FC. Plant_K , because of its low VC, produces continuously at capacity in off-peak and in peak periods. Plant_L , because of its high VC, shut-downs in off-peak periods and produces at capacity in peak periods. I show results under perfect competition SRMC pricing and LR equilibrium requirement for all plants . Only plant_L incurs idle capacity costs. This shows a positive aspect of plants_K that they have no idle capacity costs. Plants_K are modern and make extensive use of outsourcing. Outsourcing is rising in recent years with advances in internet, computers, and telephone. Manufacturers today can depend on getting needed parts “just-in-time” from outside suppliers without maintaining inventories of parts or capacity to produce parts.

A Mathematical Perspective: Focus during Weekdays should be on Supply for the Sabbath a Support for Workable Competition

Gerald Aranoff — Thu, 18 Jun 2020 00:00:00 +0000

This paper proves mathematically in an original theoretical model the common sense and intuitive proposition that consumers are better off when they have more food for the Sabbath at the expense of having less food for the other six days of the week. I prove the conditions of shifting consumption from off peak to peak times will necessarily add to consumer surplus. Like the manna that fell from heaven for forty years in the desert — an omer to a person, Sunday through Friday with double portions on Friday — my model assumes that consumers buy standardized semi-perishable food baskets, one basket per person per day, Sunday through Friday with extra baskets for the Sabbath. In my model I analyze beneﬁts to consumers according to two alternative pricing schemes, whereby consumer expenditures and weekly food consumed are the same. I prove that consumers are better off according to the pricing scheme that allows for more food for the Sabbath day. The signiﬁcance of my proof is to urge social focus on increasing and prolonging cyclical peaks. My proof supports John M.Clark’s workable competition thesis.

Restaurant Tipping and Consumer Behavior: An Economic Theoretical Analysis

Tin-Chun Lin — Thu, 18 Jun 2020 00:00:00 +0000

In this chapter, I applied the theory of consumer choice to model the relationship between restaurant tipping and consumer behavior. Using this model, I demonstrated how consumer behavior responds to restaurant tipping and how tipping affects consumer-utility among different types of consumers and economic efficiency. The economic theoretical analysis reveals that tipping discourages customers’ demand for restaurant meals, which in turn creates bigger excess burden in the market.

A Married Couple’s Economic Reciprocal Relationship: Application of Game Theory

Tin-Chun Lin — Thu, 18 Jun 2020 00:00:00 +0000

An economic theoretical model was developed and a static game of complete information was applied in an examination of a married couple’s economic reciprocal relationship. Each player (husband and wife) chose their best strategies (i.e., optimal responses) to maximize payoffs (i.e., happiness). The theoretical analysis suggests that the couple’s happiness is endogenously and positively correlated and simultaneously determined. If the wife (or the husband) is not happy with the relationship, it is impossible for the husband (or the wife) to be happy with the relationship. Moreover, I conducted a survey of 54 married couples in Lake County, Indiana to collect information related to married couples’ economic behaviors. The survey results suggest that a good communication skill between a married couple indeed is a primarily important factor in determining a successful marriage.

An Approach of Nigeria Consumption Function – An Empirical Test of the Permanent Income Hypothesis

Ikechukwu Kelikume, Faith A. Alabi, Friday Osemenshan Anetor — Thu, 18 Jun 2020 00:00:00 +0000

Consumption plays a significant role in determining the size of the multiplier and the dynamic effects of the economy shock. It also constitutes the largest component of the aggregate expenditure of an economy. As a result, economists have propounded theories in a bid to explain the determinants of consumption. These theories include the absolute income hypothesis by Keynes, relative income hypothesis (RIH) by Duesenberry, permanent income hypothesis (PIH) by Friedman, and the life-cycle hypothesis (LCH) by Modigliani. The objective of this study is to test the performance of the PIH as a description of consumption expenditure in the Nigerian economy using annual time series data over the period 1980-2015. Using the Partial Adjustment Model (PAM) and the Adaptive Expectation Model (AEM) the study found that there exist a long-run relationship between consumption and income thus suggesting that consumption function under the PIH holds for the Nigerian economy.

Recent Study an Evaluation of the Growth-Maximizing Size of Government Expenditure in a Developing Economy: Evidence from Nigeria

Ikechukwu Kelikume, Faith A. Alabi, Korede Ajogbeje — Thu, 18 Jun 2020 00:00:00 +0000

There has been a significant expansion in the size of government expenditure in most economies around the world. Many studies have shown that there is a negative relationship between government size and economic growth after a certain point of government participation in the economy is reached. This study, therefore, examines the optimal size of government (measured by overall government spending as a percentage of GDP) that maximizes economic growth in Nigeria between the periods 1985-2014. The overall results suggest that the optimal level of government spending is 17% according to the Scully log-linear model and 24% according to the quadratic model making a conclusive range of 17%-24%. The paper concludes that further expansion in the size of government, proxied by government expenditure, is encouraged for improved growth since current spending is below the range suggested by the result of the analysis. However, the study may not boost of same outcome if government expenditure is disaggregated and the government size is measure by the revenue generated.

Tax Rates Effects on the Risk Level of Listed Viet Nam Human Resource and Medical Equipment Firms during Global Economic Crisis 2007-2009

Dinh Tran Ngoc Huy, Pham Tuan Anh — Thu, 18 Jun 2020 00:00:00 +0000

The emerging stock market in Viet Nam has been developed since 2006 and affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the stock investment industry as it becomes necessary.

First, by using quantitative and analytical methods to estimate asset and equity beta of total 9 listed companies in Viet Nam stock investment industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable.

Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,512, 0,513 and 0,513.

Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing levels of tax rate.

Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

A Three Variable Model on the Risk Level of Viet Nam Hardware Industry during and after the Global Crisis

Dinh Tran Ngoc Huy, Nguyen Thi Phuong Thanh, Phan Thu Trang, Pham Minh Dat — Thu, 18 Jun 2020 00:00:00 +0000

Over recent years, hardware industry in Viet Nam has reached a lot of achievements. Under the volatility of stock price, and changes in macro factors such as inflation and interest rates, the well-established hardware market in Viet Nam has many efforts to recover and grow from the crisis 2008. This study analyzes the impacts of 3 factors: Competitor size, tax rate policy and leverage on market risk for the listed firms in the hardware industry as it becomes necessary.

First, by using quantitative and analytical methods to estimate asset and equity beta of total 22 listed companies in Viet Nam hardware industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable.

Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is the largest dispersion in equity beta value (0,2), if leverage up to 30% and doubling size competitors.

Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), this study identified that the risk dispersion level in this sample study could be minimized in case the competitor size doubling, tax rate up to 28% and financial leverage down to 20% (measured by asset beta var of 0,081).

Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

Asset and Equity Beta of Viet Nam Public Utilities- Electric Power and Water Industries after the Low Inflation Period

Dinh Tran Ngoc Huy, Nguyen Thi Phuong Thanh, Pham Tuan Anh — Thu, 18 Jun 2020 00:00:00 +0000

The Vietnam economy has obtained lots of achievements after the financial crisis 2007-2011, until it reached a low inflation rate of 0.6% in 2015. Vietnam Water & Electric power Company group are growing and contributing much to the economic development and has been affected by inflation. High and increasing inflation might reduce values of Water& Electric power Company group contracts. This paper measures the volatility of market risk in Viet Nam Water& Electric power Company group after this period (2015-2017) and recommends policies for sutainable water treatment and development. The main reason is the necessary role of the of Water& Electric power Company group system in Vietnam in the economic development and growth in recent years always go with risk potential and risk control policies.

Hence, this research paper aims to figure out how much increase or decrease in the market risk of Vietnam Water& Electric power Company group firms during the post-low inflation environment 2015-2017.

First, by using quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean in the water and electric power industry is acceptable, as it is lower than (<) 1.

Then, one of its major findings is the comparison between risk level of stock investment industry compared to those of Water Company group in the post-low inflation time 2015-2017. In fact, the research findings show us market risk level of water and electric power group during the post-low inflation time is lower (equity beta mean = 0.412). Then, another major finding is the comparison between risk level of electric power industry in the post-low inflation time 2015-2017 compared to those in the crisis 2007-09. In fact, the research findings show us market risk level of electric power group during the post-low inflation time is higher.

Finally, this paper provides some ideas that could provide companies and government more evidence in establishing their policies in governance. This is the complex task but the research results shows us warning that the market risk need to be controlled better during the post-low inflation period 2015-2017. And our conclusion part will recommends some policies and plans to deal with it. Basically, we need to have a better integration management of water cross the country, identify challenges in water treatment and resolve them.

Overview on Using Television Commercials as Video Illustrations: Examples from a Money and Banking Economics Class

David R. Bowes — Thu, 18 Jun 2020 00:00:00 +0000

Video clips are an excellent way to enhance lecture material. Television commercials are a source of video examples that should not be overlooked. Television commercials are readily available on the internet. They are familiar, short, self-contained, constantly being created, and often funny. This paper describes several examples of television commercials that can be used to illustrate concepts taught in Money and Banking and Microeconomics courses. Sources of television commercials available on the internet are also presented.

Detailed Study on the Labour-managed Firm as a New Mode of Socialism

Bruno Jossa — Thu, 18 Jun 2020 00:00:00 +0000

The aim of this paper is to suggest that the establishment of a system of producer cooperatives is a revolution which is consistent with Marx and Engels’s thought. The author examines Marx’s definition of revolution and the concept of production mode and argues that a system of the cooperative firm changes the production mode. He discusses also what manner plan and the market can be reconciled in a socialist system.