Recessionary Pressures Research Articles

Production networks and resilience: How dense production networks shield economies in financial crisis.

The research delves into the underexplored area of how production network structures influence the severity of economic downturns, particularly during the last financial crisis. Utilizing the RSTAN database from the OECD, we meticulously derived critical measures from the input-output matrices for 61 economies. Our methodology entailed a panel analysis spanning from 2008 to 2010, which is a period marked by significant recessionary pressures. This analysis aimed to correlate economic performance with various production network metrics, taking into account control factors such as interest rates and the prevalence of service sectors. The findings reveal a noteworthy positive correlation between the density of production networks and economic resilience during the crisis, which remained consistent across multiple model specifications. Conversely, as anticipated, higher interest rates were linked to poorer economic performance, highlighting the critical interplay between monetary policy and economic outcomes during periods of financial instability. Given these insights, we propose a policy recommendation emphasizing the strategic enhancement of production network density as a potential buffer against economic downturns. This approach suggests that policymakers should consider the structural aspects of production networks in designing economic stability and growth strategies, thus potentially mitigating the impacts of future financial crises.

The Recessionary Pressures of Generative AI: a Threat to Wellbeing

The Recessionary Pressures of Generative AI: a Threat to Wellbeing

Globalni stagflatorni pritisci - makroekonomske reperkusije pandemijske i geopolitičke krize

This paper analyses key macroeconomic repercussions of the global pandemic and geo-political crises in terms of growing recessionary and inflationary pressures, and finally, the potential occurrence of stagflation. The aim of this paper is to primarily analyse the stagflation shocks of the 70s, afterwards, compare them with the current crisis for the period January 2020 - July 2022 using the example of selected developed economies (USA, Germany and France). Using descriptive analysis, it was shown that in the observed period inflationary and recessionary pressures existed in USA, Germany and France. However, those pressures could not be identified as stagflation, since that were not present simultaneously. Namely, during the pandemic crisis, recessionary pressures were present, since then the GDP growth decreased till first quarter of 2021 in analysed economies, while inflation rates were stable. On the other hand, with the recovery of economies in the second quarter of 2021, inflationary pressures became stronger and intensified by geo-political crisis. Therefore, it seems that the most visible anomaly of the global economic system in 2022 is the presence of inflationary pressures.

Pakistan: making a “COVID budget” in a struggling economy

PurposeThe purpose of this study is to examine the fiscal measures undertaken by the Pakistani government to counter the recessionary pressures of the coronavirus pandemic. The authors analyse the economic, social and political factors that have shaped the government's fiscal policy response to this economic shock.Design/methodology/approachThe authors analyse the federal and provincial budget documents for the fiscal year 2020–21 to study the fiscal response of the government. The authors review recent research articles and news pieces to examine the determinants of these budgetary measures.FindingsThe government adopted expansionary fiscal policy measures such as reduced taxation and increased government expenditure to counter the recessionary pressures of the pandemic. These measures, however, were largely constrained by macroeconomic issues of high fiscal debt, slow economic growth and low fiscal space and political influences from the military and religious groups.Research limitations/implicationsThe coronavirus pandemic is an ongoing issue which may pose more threats and elicit more policy responses as it evolves. This research may be extended as the pandemic progresses, to include further policy responses.Originality/valueThis research provides insight into the unique problems faced by the Pakistani government during the pandemic, and how it steers the economy despite these limitations.

Tracking Uncertainty Through the Relative Sentiment Shift Series

We examine the causal dynamic relationship between economic policy uncertainty and economic activities, using a Local Projection model with external instruments. Based on the psychological theory of conviction narratives, we construct a Relative Sentiment Shift (RSS) index and use it as an instrumental variable that captures exogenous variations in economic policy uncertainty. Our empirical results suggest that an increase in economic policy uncertainty induces recessionary pressures in the economy: reductions in production and employment, a sharp stock market downturn, and a constrained financial market.

How the Los Angeles Public Library Responded to Budget Cuts

This article provides an overview of how Los Angeles Public Library, its community, and elected officials responded to reductions mandated by its funding agencies. The Los Angeles Public Library (LAPL) and its communities faced and are still facing recessionary budget pressures that started in 2007. In recent decades the mayor and City Council of Los Angeles have supported the libraries that have come to define the great cultural heritage and a significant landmark in the heart of the city. The most recent budget shortfall—that which began in 2007—was brought on by huge, mandated increases in pension payments due to city workers’ funds, particularly in the police and fire departments. At LAPL the budget shortfall created severe personnel, material, and service cuts. This case study describes what happened when the budget crises occurred and how the library department, citizens, and elected city officials dealt with them.

Online education and its operational attractions to traditional and non-traditional college students

With global recessionary pressures still applying pressures to reduce costs and make educational services more convenient, many people previously employed found unemployment more the norm. Part of this problem may be due to lacking skills to find professional employment jobs. In an effort to promote improved marketability and enhance employment skills, many people return to college to further their education. To study the needs of students and professionals, a 54–question survey was developed and used to statistically test certain assumptions concerning information technological sophistication, preferences of educational delivery systems, personal motivational factors associated with their instructional preference at two large universities open house. It was found that traditional and non–traditional students felt that they were able to do well in an online environment, but the non–traditional group felt more on–task and focused on objectives. Interestingly, students with mobile technologies (i.e., laptop...

City Limits in a Postrecessionary World

This article explores the changing landscape of local economic development in the United States from a period of stability (1999) to a period of recessionary pressures (2009). This research finds support for one of the key components of the city limits thesis: competition drives developmental policy use. Additional notable findings include a declining role for private business in the economic development process, a mixed relationship between policy adoption and resident’s level of need for economic development, and an emphasis on higher visibility policies during recessionary periods.

Adapting the Human Sigma Instrument to Enhance the Employee-Customer Encounter

IntroductionConsumers from around the globe are beginning to respect organizations that strive to be 'human' and, therefore, exceed inherent customer expectations (Zeithaml, Parasuraman & Berry, 1990, Parasuraman, Zeithaml & Berry, 1985). Moreover, service organizations in general, and tourism and hospitality organizations in particular, have also increasingly come to recognise the growing importance of service quality (Ford, Sturman & Heaton, 2012). That is, growing competition and increasingly demanding customers, as well as recessionary and globalization pressures, have emphasised the need for tourism and hospitality businesses to focus on improving service quality in order to achieve competitive advantage (Boon-itt & Rompho, 2012; Crick & Spencer, 2011; Dutta & Dutta, 2009; Hassanien, Dale & Clarke, 2010; Ramanathan & Ramanathan, 2011; Rodriguez-Anton & Alonso-Almeida, 2011). At the same time, there is a new type of consumer in the industry who is more demanding, more sophisticated and more educated than before (Pirnar, Icoz & Icoz, 2010) and, thus, the implementation of quality management initiatives is fundamental to ensuring that customer satisfaction and retention is maintained (Gupta & Zeithaml, 2006). Consequently, within the service sector, many providers have adopted corporate strategies which include the use of a broad range of tools, techniques and approaches that attempt to exceed customer expectations (Edvardson, Thomasson & Overtveit, 1994) and, ultimately, to improve business performance. One such approach is Human Sigma, a relatively new concept developed specifically for the service sector but, one that has been subject to only limited critical academic scrutiny, particularly in the context of the tourism and hospitality sector. However, research shows that the Ritz-Carlton Hotels implements Human Sigma as an approach to improve business excellence (Michelli, 2008).At present, there is limited research being conducted on the implementation of the Human Sigma instrument - that is a new approach that measures and manages the employee- customer encounter (Fleming & Asplund, 2007). Arguably, within the service industry in general and the tourism/hospitality sector in particular, attention needs to be paid to the employees' interactions with the organization's customers or, more succinctly, to the employee-customer encounter. Indeed, in the tourism and hospitality sector, value is created when an employee meets and interacts with a customer (Fleming & Asplund, 2007, Ford, Sturman & Heaton, 2012). However, the service encounter is increasingly being viewed as a highly complex and multidimensional process of interaction between customers and the service providers (Laing & McKee, 2001). Given that Human Sigma is based upon the quality of employee and customer encounters, it is necessary then to explore the highly complex and multidimensional process of interaction between customers and employees. The literature review considers research that implies that interpersonal behavior takes the form of people adapting in varying 'dyads' of social interaction, but that typically one person is more powerful than the other in such dyads - that is, a power imbalance exists. These concepts are extended further to the realms of social identification, in which an individual senses a oneness or sameness with others. Accordingly, the recent advances in social identity and management are explored suggesting that employees can identify with more than the organizational identity. Therefore, the purpose of the research is to apply and test the Human Sigma instrument in a hospitality context, using a rigorous case study approach.Case study research was chosen given the need to gather in-depth, rich data on the implementation of the Human Sigma instrument. In this approach, theory or models are developed throughout the empirical study. Thus, the article outlines the research methodology, as well as discussing methods and analytical techniques. …

‘If this wasn’t here I probably wouldn’t be’: disabled workers’ views of employment support

UK governments since 1997 have introduced significant changes to move disabled people off benefits and into employment. Commentators have criticised the adoption of the ‘medical model’ of disability implicit in many of these policies, with its focus on individual rather than institutional change. This paper reports empirical data about participants’ experiences of one national supported employment programme. Participants of WORKSTEP were overwhelmingly positive about their experiences both of work and the support to find work. The rare reports of negative experiences reflect the focus on intervening at the level of individual workers, rather than the workplace or organisation of work. Analysis of their views is valuable in the light of ongoing welfare reform as well as recessionary pressures on labour markets and employment services, which, in emphasising individual solutions to employment problems, may overlook the need for more broad-based, social interventions.

KEYNOTE ADDRESS: Understanding the business of contact lenses

KEYNOTE ADDRESS: Understanding the business of contact lenses

Banking support for entrepreneurial new venturers

PurposeIn light of the current global economic turmoil and ongoing recessionary pressures, the purpose of this paper is to examine the relationship between banks and those seeking to launch and develop entrepreneurial small businesses. The authors aim to explore how the quality of that relationship can impact the level of financial support for start‐up and early‐stage business ventures.Design/methodology/approachCurrently economic confidence is at a generational low, the financial services sector is in turmoil and relationships and understanding between the banks and the small business sector have become increasingly toxic. On top of this, the nature of relationships between banks and entrepreneurial new venturers are seen to be persistently determined by the interests of banks. This research seeks to provide new insights to how these relationships have and might yet evolve. In light of the exploratory nature of the research, a qualitative research methodology was considered appropriate.FindingsA number of issues were identified that indicate that the relationship between small firms and their banks appears to be very damaged. Of concern to banks was the general antipathy with which they were viewed by the entrepreneurs in the study where the pervasive view was one of general hopelessness and lack of trust and confidence. Participants viewed banks as insensitive and lacking in any empathy around their circumstances as small firms in stressful economic conditions.Research limitations/implicationsGiven the qualitative nature of this research, based on a small sample of participants it is not intended to be generalizable to a wider population. A number of valuable insights emerge from the research around management challenges that exist at the micro relationship level between banker and entrepreneur. The need for meaningful relationship management by banks with small business clients based on a longer‐term perspective, empathetic and specialist knowledge and informed advice emerged as issues within this research, as did the relationship benefit of having greater stability in local branch staffing levels.Practical implicationsThe research suggests that there are consequences where localised decision making has been largely removed from UK banks' retail branch networks and managers appeared to be disempowered from making local judgments on the financing needs of small firm customers. However, such an environment can create an opportunity for bank managers to choose to engage with small firm clients in a more personal way. Limiting this potential however is the recognition that such an engagement would demand significant disaggregation in banking services, with all the targeted resource implications that would imply.Originality/valueRecent studies have highlighted the need for further research into how banks might provide better support to those within the small firm sector in times of tight credit, particularly given the current turmoil in the world's economy and the on‐going impact of the ensuing recession. This research provides a number of new insights to the challenges facing local bank managers in developing and maintaining positive relationships between themselves and entrepreneurial new venturers.

The Flex-Nest: The Accessory Dwelling Unit as Adaptable Housing for the Life Span

ABSTRACTAmerican families have dramatically changed over the past sixty years, but the single-family home that houses them has evolved very little. Demographics indicate that while household numbers have gotten smaller over the decades, house sizes have become considerably larger. There has been little diversity offered in housing types, with builders and consumers favoring the detached single-family home as the icon of American success. But overwhelming recessionary pressures on American housing since 2007 have taken a toll. The housing market collapse has led to many foreclosures and subsequent vacant single-family homes, while simultaneously creating a scarcity in the rental market. Rising unemployment has seen Generation Y college graduates flocking back to the nest of their parental homes, baby boomer parents wonder when their nest will become less crowded, and the elderly are desperately trying to remain in their homes. The stock of affordable US housing is shrinking, and little new construction is on the horizon. These realities have led to a shortage of affordable housing, and motivated residents to choose complex housing arrangements, including shared housing, doubling up, and accessory dwelling units (ADUs). The ADU is examined for the financial, social, and personal benefits it can provide as an alternative to families living alone in single-family homes. For many, the partitioning of a home can provide solutions to housing children, parents, and also renters who might generate extra income to help with the mortgage. The additional benefits of ADUs for the rapidly growing elderly population are investigated, and seven flexible design models proposed as potential housing solutions.

Rezultati fiskalnog odgovora na ekonomsku krizu - komparativni prikaz Srbije i odabranih evropskih zemalja u tranziciji

This paper empirically explores the effects of fiscal response to recessionary pressures in selected European transition countries (Latvia, Croatia, Estonia, the Czech Republic, Hungary, Serbia, Bosnia and Herzegovina). The main objective is to compare it the macro-financial conditions and policies before the crisis, and to compare the response of fiscal policy on her, so to stand out, among other things, restrictions fiscal space specific countries. Even though they make joint pre-crisis patterns of strong capital inflows and strong growth, the key difference in the conduct of fiscal policy is that some countries have adopted an expansive (and procyclical) fiscal policy, and other restrictive (and countercyclical) one. Assessment of alternative fiscal instruments: direct and indirect taxes and various programs of public spending (public investment, social transfers, etc.) in this work will be carried out through analyzing the amount of fiscal multipliers for each of the seven countries included in the analysis. As a part of this analysis should confirm or overturn the hypothetical assumption that the increase of the rate of value added tax increases during a recession recessionary tendencies, such as experience of Croatia, Hungary, Lithuania, and now in Serbia.

The economic burden of blindness in Pakistan: a socio-economic and policy imperative for poverty reduction strategies.

State and nonstate health programs in developing countries are often influenced by priorities that are defined in the Millennium Development Goals (MDGs). In the wake of recessionary pressures, policy makers in the health sector are often seen to divert significant budgets to some specific health programs and make only token allocations for other health problems that are important but do not fall under the traditional MDG box of health priorities. This paper illustrates the economic argument for investment in one such program: The eye health program and employs a country case study of Pakistan to demonstrate that there are significant economic gains that are being foregone by not addressing the needs of the blind in poverty reduction strategies. By applying appropriate growth and discounting factors and using the average wage rate, the paper estimates the total productivity gains that are realizable over a period of 10 years if the blind population in Pakistan is rehabilitated and their carers released to participate in the mainstream economic activity. Our findings indicate that significant productivity gains accumulated over 10 years, range from 61 billion (US$ 709 million) to 421 billion (US$ 4.9 billion) depending upon whether the entire blind population or only those affected by a specific cause are rehabilitated. The per annum productivity gains of rehabilitating the entire blind population represents 0.74% of the current gross domestic product of Pakistan, which is higher than the total public spending on health. In order to reap these benefits, the subsequent absorption of the rehabilitated blind and their carers into mainstream economic activity is as important as their effective rehabilitation.

Commissioning Accountability: Change to Governance and the Police

As recessionary pressures take effect and public sector services, including the police, attempt to ensure the services they provide remain effective, efficient and economically viable in times of austerity, reforms to governance in an effort to increase accountability must be considered as important as any procedural or structural reform. This article considers the strategic and economic impact of introducing directly elected Crime Commissioners within England and Wales, in reforms to policing that have been described as the most radical in decades. Redistributing accountability and reordering the balance of power to create a new post-tripartite system involving possibly four different interested parties, including Chief Constables, the Home Secretary, Crime Commissioners and the Commissioner Panels, will undoubtedly have serious implications for the provision of policing services. Whilst not a panacea for issues surrounding accountability within policing, the new proposed changes, if implemented correctl...

Extending Working Lives? Employability, Work Ability and Better Quality Working Lives

Faced with a changing economic and demographic outlook, this article will suggest the adoption of a proactive and preventative approach to the quality of work and ‘worklife’ for the UK's ‘older workers’. Ultimately, it seeks to explore the possibilities for the implementation of the Finnish concept of Work Ability (Illmarinen, 2005) in the context of the UK policy agenda. It will be suggest that this approach provides a policy framework that addresses recessionary pressures whilst maximising quality of life and the active ageing of individuals.

Corporate ethical trading in an economic downturn: recessionary pressures and refracted responsibilities

Corporate ethical trading in an economic downturn: recessionary pressures and refracted responsibilities

Recessionary pressures on food budgets and payment options among working professionals

Fast-food restaurants have generally benefited from difficult economic times throughout the USA and globally. In an exploratory study in the Pittsburgh, PA metropolitan area of working professionals, it was found that current food preferences, as compared to the previous year, point to less dining-out, increased dining at home, less fast-food consumption, and decreased formal dining; although none of these relationships held for gender biases. Payment options, including electronic ones, do vary somewhat as a function of food choices (more cash and/or debit cards in fast-food outlets as compared to sit-down restaurants), credit card usage has not significantly increased for fast-food restaurants; however, cash is still the preferred method of payment.

UK cancer funding: challenges for commissioning

Recessionary pressures, ageing populations and the availability of new technologies are increasing cost pressures on the NHS. To achieve world class cancer care, funding of cancer services needs to increase in the UK. Appropriate funding is an essential component of high quality cancer services, yet significant variations in spending on cancer persist within England. These cannot alone be explained by variations in need-or indeed outcome. A critical task for commissioners is therefore to assess their level of expenditure on cancer services, and identify areas where it may be inappropriately high or low and take action to address this.