{"title":"Inter-sectoral relative price, inflation and structural transformation","authors":"Subhasankar Chattopadhyay","doi":"10.1111/manc.12413","DOIUrl":"10.1111/manc.12413","url":null,"abstract":"<p>While the pattern of composition of sectoral output and consumption are well stylised during growth and structural transformation of an economy, the evidence on the movement of inter-sectoral relative price is mixed across countries. This paper investigates how demand and supply side forces simultaneously shape structural transformation and the path of relative price in a two-sector economy comprising an agricultural and a non-agricultural sector. The model incorporates non-homothetic preference, heterogeneous sectoral production functions with heterogeneous and exogenous total factor productivity growth. We further investigate how the equilibrium path of relative price contributes to inflation measured by proportionate changes in the aggregate price level which is an index of sectoral prices. We find that the equilibrium rate of inflation is always positive during structural transformation. The rate of inflation increases with increase in growth rate of the non-agricultural sector and with a higher preference for agricultural goods, and reduces with an increase in the growth of the agricultural sector.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 5","pages":"524-540"},"PeriodicalIF":1.1,"publicationDate":"2022-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72381484","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Gender differences in science, technology, engineering and maths uptake and attainment in post-16 education","authors":"Emily McDool, Damon Morris","doi":"10.1111/manc.12403","DOIUrl":"10.1111/manc.12403","url":null,"abstract":"<p>The underrepresentation of women in Science, Technology, Engineering and Maths (STEM) occupations is a world-wide phenomenon. The UK is simultaneously encountering a shortage of STEM skills. While gender imbalances in STEM study in higher education and A-level study are widely documented, gender imbalances are apparent in vocational post-16 education, though the existence and causes of these imbalances have received little attention. This paper uses administrative data to explore the extent of gender imbalances in STEM qualifications attempted and achieved in vocational post-16 education routes. Gender differentials in the uptake of vocational STEM qualifications are much starker than they are in A-levels and the roles of ability, socio-economic status and school characteristics in explaining gender differentials differ with the education route taken, though their power in explaining these gaps is limited.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 5","pages":"473-499"},"PeriodicalIF":1.1,"publicationDate":"2022-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/manc.12403","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87840341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Leadership in internationalization strategies","authors":"Maja Barac, Rafael Moner-Colonques","doi":"10.1111/manc.12400","DOIUrl":"10.1111/manc.12400","url":null,"abstract":"<p>This paper examines leadership in internationalization strategies for an asymmetric cost duopoly where firms choose between exports and foreign direct investment (FDI) in a sequential setting. The incentive to lead and to engage in FDI is stronger for the more efficient firm. With sequential choices and the efficient firm playing in advance, it is less likely that firms pick identical internationalization strategies in equilibrium, as compared with simultaneous choices; this is more so for greater cost asymmetry. It also happens for large enough oligopoly profitability when the inefficient firm plays in advance. Follow-the-leader behaviour in FDI arises for low values of the setup cost. Although entry in FDI by both firms is best for consumers, total welfare can be higher with opposite internationalization strategies. Were firms given the opportunity to lead or wait and enter later, the efficient firm would emerge as the leader in exports/FDI depending on the well-known proximity-concentration trade-off. Interestingly, the less efficient firm might prefer to wait for strategic reasons.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 3","pages":"293-318"},"PeriodicalIF":1.1,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/manc.12400","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80748076","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic policy uncertainty and unconventional monetary policy","authors":"Yoshito Funashima","doi":"10.1111/manc.12401","DOIUrl":"10.1111/manc.12401","url":null,"abstract":"<p>In this study, the US daily economic policy uncertainty (EPU) index is employed to examine how EPU changes because of the implementation of and exit from the unconventional monetary policy adopted by the Federal Open Market Committee (FOMC). The analysis suggests that forward guidance lowers the volatility of EPU. Moreover, the EPU level decreases during the tapering period of quantitative easing. This may be attributable to the unequivocal expected lifting of the zero interest rate policy. In contrast to these findings favoring the FOMC’s successful communication, it is found that time-contingent forward guidance increases EPU.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 3","pages":"278-292"},"PeriodicalIF":1.1,"publicationDate":"2022-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78898462","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"R&D rivalry with endogenous compatibility","authors":"John S. Heywood, Zerong Wang, Guangliang Ye","doi":"10.1111/manc.12399","DOIUrl":"10.1111/manc.12399","url":null,"abstract":"<p>A classic R&D rivalry is compared to R&D cooperation while embedded in a model of endogenous network compatibility. We show that complete incompatibility is more likely to occur with cooperative R&D. Complete incompatibility increases the advantage in R&D and profitability of the incumbent over the entrant. In our initial illustration, cooperation in network industries with endogenous compatibility generates no higher (and often lower) welfare than in non-network industries. In our generalization, cooperation in network industries generates welfare loss for a wider range of R&D spillovers. This suggests that R&D cooperation should receive stricter policy scrutiny in network industries with endogenous compatibility.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 3","pages":"354-384"},"PeriodicalIF":1.1,"publicationDate":"2022-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85239917","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Debasmita Basak, Andreas Hoefele, Arijit Mukherjee
{"title":"Wage bargaining and product innovation: The role of market expansion effect","authors":"Debasmita Basak, Andreas Hoefele, Arijit Mukherjee","doi":"10.1111/manc.12398","DOIUrl":"10.1111/manc.12398","url":null,"abstract":"<p>Using the right-to-manage model of union-firm bargaining, we show that a higher union power increases product innovation if the bargaining is decentralised, the market expansion effect is weak, and the cost of innovation is relatively low. Otherwise, the relationship between union power and innovation is negative. Hence, we contribute to the literature in two ways. Unlike the extant theoretical literature, we consider the effects on product innovation, which is empirically relevant but has been ignored in the theoretical literature and explain a positive relationship between union power and innovation.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 3","pages":"319-340"},"PeriodicalIF":1.1,"publicationDate":"2022-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88799362","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Revisiting the determinants of house prices in China’s megacities: Cross-sectional heterogeneity, interdependencies and spillovers","authors":"Chunping Liu, Zhirong Ou","doi":"10.1111/manc.12397","DOIUrl":"10.1111/manc.12397","url":null,"abstract":"<p>We revisit the determinants of house prices in China’s megacities. Previous work on similar topics fails to account for the widespread cross-sectional heterogeneity and interdependencies, despite the importance of them. Using a PVAR estimated by the Bayesian method allowing for these features, we find each city is rather unique, especially on the extent to which local house prices are disturbed by external house price shocks. The spillovers may be partly related to the demand side before 2010, but seems more related to supply factors thereafter, due to the imposition of property purchase restrictions. The new evidence we establish therefore suggests that city-level stabilisation of house prices should fully respect local features, including how local markets respond to external disturbances.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 3","pages":"255-277"},"PeriodicalIF":1.1,"publicationDate":"2022-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/manc.12397","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75294839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Salvatore Perdichizzi, Matteo Cotugno, Giuseppe Torluccio
{"title":"Is the ECB’s conventional monetary policy state-dependent? An event study approach","authors":"Salvatore Perdichizzi, Matteo Cotugno, Giuseppe Torluccio","doi":"10.1111/manc.12393","DOIUrl":"10.1111/manc.12393","url":null,"abstract":"<p>We investigate the impact of ECB conventional (CMP) on national banking indices of 10 Eurozone countries and a Eurozone-wide banking index using the event study technique. We find that announcements of unexpected increases in interest rates benefit French, German, Greek and Italian banks when interest rates are low, while in other periods, the effect is muted. A plausible explanation is that bank profits are squeezed when interest rates are low because banks are reluctant to push deposit rates to zero. Our results are robust to potentially confounding events related to unconventional monetary policy announcements, volatility clustering and volatility expectations.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 2","pages":"213-236"},"PeriodicalIF":1.1,"publicationDate":"2022-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/manc.12393","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72637189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A reappraisal of Katona’s adaptive theory of consumer behaviour using U.K. data","authors":"Robert Gausden, Mohammad Hasan","doi":"10.1111/manc.12395","DOIUrl":"10.1111/manc.12395","url":null,"abstract":"<p>The objective of this paper is to conduct a reappraisal of Katona's (1968) adaptive theory of consumer behaviour, which maintains that discretionary consumption is partly determined by attitudes and expectations of households. Initially, using UK data, we follow Katona by empirically examining whether changes in personal expenditure on durable goods are connected to earlier movements in consumer confidence. Evidence of a lack of a stable relationship between these two variables encourages us to perform a disaggregated analysis involving 111 components of four different forms of consumption, which enables construction of an aggregate measure of discretionary spending. We find that sufficient criteria are satisfied for the sentiment index to be accepted as a reliable predictor of the growth of gratuitous expenditure. In conclusion, then, it would seem that the validity of Katona's theory can be revived if we are prepared to discard the assumption that durable goods’ consumption is synonymous with discretionary spending.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 2","pages":"122-143"},"PeriodicalIF":1.1,"publicationDate":"2022-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/manc.12395","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89714136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Rupayan Pal, Prasenjit Banerjee, Pratik Thakkar, A. M. Tanvir Hussain
{"title":"Green firm, brown environment","authors":"Rupayan Pal, Prasenjit Banerjee, Pratik Thakkar, A. M. Tanvir Hussain","doi":"10.1111/manc.12394","DOIUrl":"10.1111/manc.12394","url":null,"abstract":"<p>We develop a theoretical model to examine the implication of a monopolist’s environmental consciousness, which induces it to adopt cleaner technology or to internalize negative environmental externalities of production or both, for the environment. Results show that greater environmental concern of the monopolist may damage the environment more, despite leading to lower emission intensity. This is true regardless of whether consumers value green production or not. This paper also draws implications of technology standard and emission tax as instruments for environmental regulation. This paper provides a theoretical underpinning of the <i>rebound effect</i> in production by showing that the voluntary pro-environmental compliance behavior may not always mitigate the rebound effect. This suggests that a regulator should be cautious while designing regulatory mechanisms.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"90 2","pages":"107-121"},"PeriodicalIF":1.1,"publicationDate":"2022-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85415313","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}