Model Of Market Economy Research Articles

The UK as a Third Way: The US Model with a Human Face?

In most of the literature on varieties of capitalism and welfare states as well as within the public policy debates in Europe, the UK is constantly classified alongside the US; the two countries are taken to represent both the so-called Anglo-Saxon liberal market economy model (Hall and Soskice 2001) in contrast to the coordinated market economy and, in welfare state comparisons, the residual welfare state in contrast to social democratic or conservative corporate welfare states (Esping-Andersen 1990). Within the policy debates in Europe the choices are often presented as between following the American or the European social model (for review see Hopkin and Wincott 2006), representing some combination of the social democratic and conservative corporate varieties. Comparative research design often involves comparisons between an example from the selection of liberal market economies against an example or two, chosen from the presumed wider range of coordinated market economy or social democratic/corporate social models. It is rare for comparative research to address in any detail the differences between the liberal market economies or the so-called residual welfare states.

Regulating the `Animal Spirits' of Entrepreneurs?

Despite a highly regulated economy under Apartheid, the espoused beliefs of South African entrepreneurs today are founded on Anglo-Saxon ideals of liberal markets and weak regulatory institutions.This belief system is confronted by an influential labour movement that initiated legislative reforms to transform labour market institutions towards a coordinated market economy model regulated by business, labour and the state. The country's skill development legislation aims to shift the low-wage, low-skill economy onto a growth path founded on the empowerment of workers into a skilled labour force by encouraging firms to increase their training expenditure. Case study evidence from food and beverages, manufacturing and services sectors suggests that SME approaches to training are not influenced by this legislation but by the requirements of the competitive business context, sector skill intensity and the entrepreneurs' business growth strategy. For SMEs the appropriateness of the new skill development framework to existing market conditions and institutional foundations is questioned.

Economic upgrading in a state-coordinated, liberal market economy

Well-established research into different models of capitalism has not been applied well to developing countries. Changing global conditions, institutional differences, and path-dependent histories have forced late developing countries to create models of their own. By and large, however, these models have been less than successful in fostering economic development through technological upgrading. A comparison of skills upgrading in several fast-growing economies in Southeast Asia suggests that perhaps there is a new “State Coordinated, Liberal Market Economy” developmental model that can successfully lead to upgrading-driven economic development. This model combines elements from the Developmental State, Coordinated Market, and Liberal Market Economy models while differing significantly from each.

Advancing museums

Museums, like many other nonprofit organizations, have recently been driven by the market economic model adopted by most developed Western countries. Financial efficiency has been pursued through restructuring and outsourcing. Museum executives are urged to be entrepreneurial but boards attend to oversight rather than support. High performing enterprises, including effective museums, are characterized by a focus on the long term, unique value and cohesive leadership which builds supportive but challenging relationships within the enterprise. A revised agenda for museum boards and executive leadership is developed which addresses long term trends in significant issues such as learning and information technology as well as public policy in relevant areas of scholarship.

Towards a European social model: preconditions, difficulties and prospects of a European social policy

The first part of this paper gives an overview on the difficult preconditions of a European social policy by analysing the different models of market economies ('varieties of capitalism'), types of welfare states and systems of labour relations within the EU. These different types of market economies form the social background for building up a common European social policy and at the same time are under the pressure of internationalisation of capital and the restructuring of finance markets. In the second part the authors outline the five pillars of an upcoming European social model, although they deny the existence of a closed system of social and economic regulatory mechanisms designed to correct the operation of markets. Yet, what exists in all western European member states is a comparatively high level of welfare state protection, and, at the European level, a certain number of elements for the development of a specific welfare state framework has been established.

Optimal pricing in a free market wireless network

We consider an ad-hoc wireless network operating within a free market economic model. Users send data over a choice of paths, and scheduling and routing decisions are updated dynamically based on time varying channel conditions, user mobility, and current network prices charged by intermediate nodes. Each node sets its own price for relaying services, with the goal of earning revenue that exceeds its time average reception and transmission expenses. We first develop a greedy pricing strategy that maximizes social welfare while ensuring all participants make non-negative profit. We then construct a (non-greedy) policy that balances profits more evenly by optimizing a profit fairness metric. Both algorithms operate in a distributed manner and do not require knowledge of traffic rates or channel statistics. This work demonstrates that individuals can benefit from carrying wireless devices even if they are not interested in their own personal communication.

Public relations role in a global competition “to sell” alternative political and socio-economic models of market economy

This article extends the transitional public relations approach to international public relations research. The arguments are presented that public relations strategies and instruments were and are further on used in that competition to promote, and sometimes impose certain political and socio-economic models of market economy. The main global players, first of the United States, but most recently also China are trying to “sell” their own model not only in the former socialist/communist but also in developing countries. On the other hand, the campaign to promote European social model has just been initiated by the European Parliament.

Social interaction and low involvement products

Psychological and economic market models generally mainly concentrate on single individuals rather than taking their social interactions into account. This study targets social interaction in one specific domain: everyday food products. The aim is to find out whether these products are all low in involvement (as assumed before) and if social influence is a factor that contributes to the purchase decision. This study has found considerable differences in involvement among different food products. The authors also discovered differences in the susceptibility to informative social influence as well as in the size of different networks. Both findings have consequences for modeling: Firstly, when modeling the interactions among consumers one has to take the product into account. Secondly, if one can find different degrees of involvement, chances are that involvement is not the only variable that influences consumer–consumer interaction. The results suggest a need for further research on the visibility of products.

Zakres wyboru modelu gospodarki rynkowej

Zakres wyboru modelu gospodarki rynkowej

SOCIAL MARKET ECONOMY - PLEONASM OR USEFUL CONCEPT?

The concept of the social market economy is not only an important one in Poland (and certainly not only in this country) but at the same time it is hardly recognizable and made popular. Frequently this concept is misunderstood and identified with the socialist social policy of redistribution. Even in encyclopedias this term is wrongly defined as a synonym of state interventionism..This concept is identified with a well-developed welfare state and associated with huge social expenditures/. Misunderstandings in the interpretation of the term take place and persist in spite of the fact that the Polish Constitution has recognized the model of the social market economy. If we recognize that the penetration of economic models in times of globalization is unavoidable, it is legitimate not just to contrast the models but to find ways how to streamline this penetration to optimize the economic and social usefulness, it means how to promote continuous and sustainable development, in local and global scale; and this in turn requires adequate harmony of economic and social goals.. Only future will show to what extent ideas of the social market economy may facilitate reaching such harmony. It still is an open question. However, one may definitely claim that in conditions of the knowledge-based society – the usefulness of these ideas increases along with the necessity of sustainable development and of strengthening the idea of humano-centrism.

Work and education in transition

PurposeThe purpose of this paper is to focus on the change in attitude towards work among younger generations in Romania.Design/methodology/approachThe paper discusses work and education in transition since 1989.FindingsIn the communist age, work was perceived as a time‐consuming activity for students. As a result, in the command economy no job opportunities were offered for this age group. Transition in Romania implied adjustment to the free market economy model, this including the approach to working life and education. At the societal level, job opportunities have been created for the young along with programs that address the needs of this age group by introducing career development skills and entrepreneurial courses into the curricula.Originality/valueThe paper offers insights into moving from skills‐based training to the more open education required for survival in the more turbulent world.

The Role of the Modell Deutschland in the Enlarged European Union

Germany’s influence in Europe since the end of the Second World War has strongly depended on its economic performance. The success of the West German socio-economic model of a social market economy, often characterised as Rhineland capitalism, contributed immensely to Germany’s leading position within the emerging integrated European framework. Under the restrictions enforced by the Allied Powers over ‘‘Germany as a whole’’, West Germany’s strong economic performance helped make up for its limited national sovereignty over its internal and external affairs. 1 The Modell Deutschland enabled Germany to exercise what Simon Bulmer calls ‘‘unintentional power’’ (75). This refers to its ability to exercise profound influence in the European Union (EU) through its economic strength and a rigid policy of monetary stability exercised by the Bundesbank. Until the end of the Kohl era in 1998, Germany was able to take a leading role in shaping the direction of the political and economic integration of Europe by combining the ‘‘soft power’’ approach in the EU with the unintentional, but still tolerated ‘‘hard power’’. The resources of German influence in Europe were consequently based on a combination of the ‘‘soft’’ power of Germany’s paymaster role as the biggest contributor to the EU budget, and the ‘‘hard power’’ Bundesbank stability policy. The latter strongly influenced the direction of economic integration in Europe, especially on European Monetary Union (Bulmer, Jeffery and Paterson 41). The combination of ‘‘budgetary power’’ and ‘‘institutionalised monetarism’’ (Paterson 208–9) allowed Germany to exercise ‘‘economic primacy’’ over the rest of Europe (Cole 92). On the basis of its role as

Models for Organizing Health Services and Implications of Legislative Proposals

Many organizational blueprints have been submitted as the basis for restructuring the United States health system, but only three basic models have a reasonable chance of being implemented: (1) the Professional Model, the name I have applied to the existing American health system, (2) the Central Planning Model, which is sometimes called the “political economy model,” and (3) the Competitive Health Maintenance Organization (HMO) Model, which could also be called the “market economy model.” Conceivably, any of these organizational arrangements (or even a combination of them) could form the basis of health care delivery in the future, since each has a cadre of active supporters, and since economic and social forces are at work portending change in the system as it now exists. The structure and performance of the Professional Model are well known. The performance of the Central Planning Model is probably less familiar, however, even though it is the most prevalent pattern of organizing health care delivery among Western European nations and, until recently at least, has been preferred by most health planners. The HMO model is found exclusively in the United States, and has become much better known in recent months. Yet no one can say for certain what a truly competitive health market would be like, because in no instance do HMOs command a large enough segment of the health market to make their competitive influence felt. In a general way, the effectiveness of these models can be compared simply by examining their working examples in this country and abroad. However, it is more difficult, if not impossible, to quantitatively assess and compare their effectiveness in optimizing the cost, quality and distribution of health care, because of the differing conditions in which they function and the varying populations they serve, and because models do not exist in pure form. This paper represents a first attempt to set forth ideas in a systematic way that by themselves are not new. Its aim is to describe alternative models for organizing the delivery of health care and the assumptions on which they are based, and to lay bare the implications of specific legislative and administrative decisions and proposals, in terms of their relation to these models and to the larger issue of national health policy. It will become clear that the paper is merely an unfleshed outline of related ideas. In part, this is by design, in deference to the purposes of the symposium and to the charge given each speaker to provide a stimulus and organizational framework for the deliberations. But the paper's sketchiness is also attributable to the fact that some of its ideas cannot be substantiated by objective research, even though the factual basis for much of what it says is either self-evident, or well known and widely accepted. These gaps in information illustrate the “flat-earth” state of the program and policy-making art in health delivery, and help to explain why the task of designing corrective measures to amend existing problems and deficits in health care delivery is both difficult and hazardous. Yet we have arrived at a critical juncture in health delivery, in which the opportunity has never been more favorable for revamping the nation's health industry—an industry that thus far has successfully resisted reform.

Phase Model of Market Economy

The phase model of market economy is suggested in the article. It is formalized in the cubical equation The equation takes into account the imperfections of competition and the fact that consumer goods are produced with the help of means of production. Transitions from the imperfect competition to the perfect one and visa versa yield qualitative status change of market economy.

Do Open-Cycle Hatcheries Relying on Tourism Conserve Sea Turtles? Sri Lankan Developments and Economic–Ecological Considerations

By combining economic analysis of markets with ecological parameters, this article considers the role that tourism-based sea turtle hatcheries (of an open-cycle type) can play in conserving populations of sea turtles. Background is provided on the nature and development of such hatcheries in Sri Lanka. The modeling facilitates the assessment of the impacts of turtle hatcheries on the conservation of sea turtles and enables the economic and ecological consequences of tourism, based on such hatcheries, to be better appreciated. The results demonstrate that sea turtle hatcheries serving tourists can make a positive contribution to sea turtle conservation, but that their conservation effectiveness depends on the way they are managed. Possible negative effects are also identified. Economic market models are combined with turtle population survival relationships to predict the conservation impact of turtle hatcheries and their consequence for the total economic value obtained from sea turtle populations.

Distributed model of a self-developing market economy

Fairly rigorous mathematical laws are applied to construct a mathematical model of a self-developing market economy with movement of time-dependent capital in the technology space. The model is a system of nonlinear partial differential equations. We analyze the bifurcations of the spatially homogeneous solutions that describe the dynamics of macro-variables of the economic system. We also study some properties of the solutions of the partial differential equations that follow from diffusion of capital and consumer demand.

Model of property relations in the Soviet Lithuania village (Case of Stungiai village)

After a collapse of the Soviet Union, Lithuania (as well as most of Central and East European countries) is sometimes entitled as "the second echelon", agrarian region or the periphery of Western civilisation. The cultural and economical lag of Lithuania is often said to be caused by a mental gap, which was constructed by a model of collectivism and planned economy. Herewith, slowly changing categories in cognition impact reflections on market economy model and its mode of functioning. The ideological and physical installation of collectivism and disruption of private sector during Sovietism contradicted the centenary traditions of private farming in Lithuania. With the recovery of independence, speedy land economy, property and social reforms in the village met the expressions of collectivism practice and shadow private farming tradition that were implanted during Sovietism. This evoked the feeling of uncertainty and social strain in the village, and often results in a form of mass protest of farmers. The purpose of this study is to determine the status of property relations in the rural community during Sovietism by using a private sector concept. The research comprises of three chapters: 1. Soviet economic and social policy in Lithuanian village. 2. Property relations in Lithuanian Soviet village. 3. The relationship between differentiation of rural society and property sectors in Sovietism. During Sovietism private sector was being eliminated from the market contrary to state sector, because it was treated as a rudiment of commercial activities and therefore contradicted the society model that was constructed by the official Communist ideology. Legally, a person was enabled to possess private property only for uncommercial purposes. All personal and real estates as well as their output were controlled by the state. The Soviet power structures were unsuccessful in totally eliminating private sector and practically, private sector, producing surplus production for commercial purposes, remained a half-legal, informal and shadow structure in village. For the rural society it was one of the main sources of incomes, resources for which were rendered from the state sector. The survival of individual (private) farming tradition in Sovietism that was expressed by possessing individual farmland and realising surplus product determined the vitality of private sector. Proprietors used to spend almost all of their time free from work in the collective or state farms for own land cultivation and surplus product production. The shadow status of the private sector influenced a perverted evolution of property relations formation, which distinguished by a private sector development process that dubbed state sector functions. This resulted in increasing volume of private farms and the process of transformation of collective or state farms into cooperative associations during and after the collapse of the Soviet Union. Sovietism in village has formed the specific understanding about economy, its administrative principles and rational behaviour skills, and also a relatively strict social differentiation. Economy management was understood as an execution of the directives from the superior power structures, allocation of tasks and control of their processing. Good execution of a task corresponded to bigger volume of material resources used and smaller amount of tasks received. This was achieved only when having good relations with power structures. According to different accession to resource allocation process, the privileged society groups had formed. In the case of village, the privileged group consisted of representatives from collective or soviet farm ruling layer. Though aforementioned layer had to follow the Soviet power directives and to control the situation in farms, it was also active in private farming activities. The status and its indicative privileges guaranteed the immunity of this ruling layer.

Corporate financial policy with pension accounts: an extension of the Modigliani–Miller theorem

We build a model of an incomplete market economy with a firm, which we apply to the study of corporate financial policies with pension accounts. We show that prior to ERISA, even though the sponsoring firm's integral financial policy is neutral for its market value, it may affect the economy by creating a pension call option. On the other hand, in the post‐ERISA periods, the firm's financial policy is not only neutral for its value but also has no real effect on the economy. Thus, the Modigliani–Miller theorem is valid in this sense.

Walras Competition Model, an Example of Global Optimization

Walras theory is well known and widely used in models of market economy. Various iterative methods are developed to search for the equilibrium conditions. In this paper a new approach is proposed and implemented where the search for Walras equilibrium is defined as a stochastic global optimization problem. This way random nature of customer arrivals is represented and the convergence to equilibrium is provided if equilibrium exists. This paper describes a part of a Web-based integrated system for scientific cooperation and distance graduate studies of theories of optimization, games and markets which aim is to provide researchers and graduate students with hands-on experience on effective use of software. The objectives are to provide a tool for scientific collaboration and to stimulate creative abilities of graduate students to work as independent researchers. The web-site http://soften.ktu.lt/˜mockus includes a family of economic and finnacial models regarding them all as examples of the the general optimization theory.

For-Profit Education Service Providers in Primary and Secondary Schooling: The Drive for and Consequences of Global Expansion

For-Profit Education Service Providers in Primary and Secondary Schooling:The Drive For and Consequences of Global Expansion Amy M. Steketee, J.D. Candidate, M.S., Ed., B.A. Innovations in technology, transportation, and communication during the twentieth century have paved the way for greater global connectedness and interdependence.1 Economic globalization2 and democratization3 have accompanied these trends toward interconnectedness. While these transformations brought vast increases in the exchange of goods, people, and information even to remote locales, this new exchange has been a boon for transnational corporations.4 [End Page 171] Consequently, there is a strong impetus for transnational corporations to expand their markets by seeking a relaxation of trade barriers. Traditionally hailed as a free, open, and community-sponsored endeavor,5 public education increasingly is permeated by corporate mechanisms and influences.6 In the United States and the United Kingdom, a growing awareness of the deficits in primary and secondary public schools, coupled with a mounting need to ready students for the global workplace, has spurred numerous reform [End Page 172] efforts, among them for-profit school management corporations.7 For-profit school management corporations have lucrative potential, but only if they operate on a large scale. Thus, there is great incentive for these for-profit education service providers to broaden their markets, while there is little reason for them to invest in cultivating communities that can self-sufficiently educate their children. Consequently, there is a strongly supported drive to expand global trade in service industries, even in education at the primary and secondary levels.8 Specifically, the General Agreement on Trade in Services (GATS) aims to eliminate the barriers to trade in services and to promote the policies of liberalization.9 While the expansion of markets benefits the for-profit education service industry, it is likely that public education will be the loser in this zero-sum game. This Note examines the viability of for-profit education services and the indicators that encourage its expansion in trade. Further, it offers some likely implications for systems of public education if trade in primary and secondary educational services flourishes. Part I outlines the trends in economic globalization and discusses the effects of a policy of liberalism and the proliferation of privatization and deregulation— including service industries such as education. Part II discusses the current trends in the United States and the United Kingdom that facilitate and support the privatization and corporatization of primary and secondary education. This section also suggests ways in which globalization has encouraged the growth of this market. Part III addresses the impact that for-profit school management organizations have had on primary and secondary education in the United States and the United Kingdom. This section also considers the quality of education delivered, the effectiveness of the management system, and the degree of monetary success that for-profit school-management corporations have enjoyed. [End Page 173] Part IV highlights mechanisms, such as GATS, which broaden global trade in services and encourage privatized management. Finally, Part V considers the implications of for-profit education service providers on systems of public education, particularly in those countries vulnerable to market influences. I. Privatization and Deregulation: The Byproducts of Economic Globalization Economic globalization targets the opening and integration of world-wide markets.10 Alex Seita discusses three characteristics of economic globalization: it increases opportunities for trade—benefiting both sellers and buyers; it simultaneously stimulates competition and cultivates interdependency among nations; and it promotes the spread of a free market economy model because the primary proponents of globalization are industrialized nations that subscribe to free market policies.11 Today over 80 percent of the world's population lives in countries where market economies prevail.12 Consequently, the advancement of neo- liberal economic policies hinges on the expansion of markets.13 Alongside market expansion come changes in the purpose and function of the state and its agencies. Neo-liberalism "calls for a less interventionist state in economic and social arenas and proposes such measures as deregulation... decentralization...and privatization...."14 As a result, governments are assuming [End Page 174] greater roles in facilitating and regulating economic activity rather than directly producing and delivering goods and services.15 In the race...