Theory Of Demand Research Articles

Age And Effective Human Resource Management

This article examines the implications of an aging workforce for human resource management (HRM). It first looks at the theories relevant to understanding age-related changes at work, including lifespan development theories, changes in work outcomes, and the social context for age (e.g., age stereotyping). Drawing from social-identity theory, human capital theory, role theory, jobs demand theory, relational demographic theory and social conservation of resource theory, theoretically the argument is that, in agediverse companies, age-based subgrouping processes occur, favoring a shared perception of a negative age-discrimination climate. This perceived negative age-discrimination climate in turn negatively relates to organizational performance. It then considers the ways that organizations can keep their employees—including those who are aging—satisfied, engaged, productive, and healthy in their jobs in terms of traditional HR practices like recruitment and selection, training, and occupational safety and health and implications of age in human resource decisions.

Modeling tourism demand: Theoretical and empirical considerations for future research

Although tourism literature is replete with tourism demand studies, numerous empirical and theoretical issues remain unresolved. The majority of the extant studies center around replication of well-established theory of tourism demand with applications of contemporary empirical techniques for different sets of tourist-originating and receiving countries. However, the application of empirical techniques, especially panel data methods that are utilized to model tourism demand, seems to be arbitrarily chosen without due consideration of theoretical and empirical ramifications. The purpose of this study is to present a critical review of the tourism demand literature. We assessed the theoretical and methodological inaccuracies when modeling tourism demand in general and when applying panel data models in particular. We provided a guide to application of panel data techniques when modeling tourism demand. The article ends with discussions of an agenda for future research to fill the gaps in the extant literature and advance tourism demand research.

Demand elasticities for 9 goods in 37 countries

ABSTRACTIn most OECD countries, consumption absorbs more than three fourths of their country’s GDP. Therefore, the study of their consumption patterns is important. This paper gives up-to-date estimates of income and price elasticities for 9 commodities in each of 37 countries that are members (or affiliates) of the OECD. In addition, the paper presents a detailed analysis of OECD consumption patterns in the form of investigating empirical regularities and testing demand theory hypotheses. Using differential demand equations, we find that the hypothesis of homogeneity hypothesis is supported in all countries; there is some evidence that symmetry is problematic, although we cannot be sure about this; and preference independence (whereby the marginal utility of each good depends only on its consumption) is not rejected in 90% of the countries. The study also finds that income elasticities of rich countries are generally lower than those of poorer countries, and, in general, there is a negative linear relationship between own-price elasticities and income. These elasticities can be used as key inputs in economic policy modelling such as CGE modelling and GST estimation.

A System Dynamics Model of Malaysia House Pricing

The difficulty to own a house has been a major concern especially among major cities in the world. As the worldwide issue, house prices also have been in the limelight in Malaysia. This is due to the unaffordable prices that tend to escalate over time. The factors that affect house prices are revolving around supply and demand theory either at micro or micro level. There are a lot of factors that found to be correlated as stated from the previous study such as housing characteristics, population, exchange rate, investment, inflation and liquidity. However, there have been shortcomings of study on the liquidity and investment factors toward the house prices. Therefore, this study aims to specifically analyse the influential factors of liquidity and investment toward house prices by using system dynamic approach. The model presumes the liquidity ratios stability and the amount spent on investment in residential properties will affect the house prices significantly. Analysing the trend of rising prices during recent years and forecasting its future development using system dynamic approach is significant, since it can help the authority and society to thoroughly understand on how liquidity and investment activity would affect the house prices.

J. M Keynes Was Never a ‘Chapter 12’ Keynesian: The Claim That He Was a ‘Chapter 12’ Keynesian Was Manufactured by Joan Robinson and G. L. S. Shackle After His Death by Changing Keynes’s Definition of Uncertainty to Radical Uncertainty

The claim that Keynes regarded himself as a “Chapter Keynesian is inaccurate and misleading. Keynes’s chapter 12 discussion and definition of uncertainty in the General Theory is simply a footnote to his much more general theoretical discussion about uncertainty made in chapter 26 of the A Treatise on Probability in 1921 pages 309-312 which concentrated on economics specifically. This was demonstrated in the 1937-38 Keynes-Townshend correspondence, where there is no discussion of the 1937 QJE article or radical uncertainty. Keynes had two interrelated and interconnected models in the General Theory. They were the D-Z model, which dealt with expected aggregate demand, D, and the IS-LM(LP) model, which dealt with actual or realized aggregate demand, Y. Keynes incorporated uncertainty and expectations into his D-Z model of chapters 20 and 21 after having provided readers of the General Theory with a very brief introduction to the Theory of Effective Demand in Chapter 3 of the General Theory. Keynes’s use of his IS-LM(LP) model in chapter 15 (pp.199-209) provided a brief introduction to the final, complete presentation of his IS-LM(LP) model in Chapter 21 where Keynes brought all of the elements that made up the IS-LM(LP) model together in Section Four of Chapter 21. This analysis incorporated the LM(LP) equation from the classical and neoclassical model of the rate of interest (r) that Keynes had demonstrated to Harrod, in his letter of August 27th,1935, was only a single downward sloping curve in (r,Y) space that intersected nothing, so that the existence of a quantitative determinate equilibrium in classical and neoclassical theory was an impossibility in (r,Y) space. Harrod capitulated completely in his letter to Keynes of August 30th,1935 and acknowledged that Keynes had indeed come up with a very important equation and had made a major advance in economic theory. Keynes incorporated his August 27th analysis, using a version of Harrod’s original diagram, in chapter 14 of the General Theory on pages 179-182. Keynes showed diagrammatically that the classical and neoclassical theory of the rate of interest amounted to a single IS curve in (r,Y) space that intersected nothing. Data (in his February, 1937 QJE article, he reverts to a missing equation” characterization) was that could only be provided by the LM(LP) curve in order to have a quantitative, determinate, unique equilibrium as stated explicitly by Keynes on page 299 of the General Theory. These interrelated and interconnected models work in harmony together with each other. It is quite impossible to use one without the other and expect to fully grasp Keynes’s mathematical, technical analysis. The D-Z model incorporated expectations and uncertainty in order to analyze the anticipated or expected amount of Effective Demand, D. Based on this analysis, a specific actual or realized amount of Effective Demand, Y, results. Keynes then combines Y with r to show why monetary policy can be completely neutralized if liquidity preference becomes absolute in the highly elastic range of the LM(LP) curve. Keynes decided to present this result on pp.207-208 of the General Theory, as well as in his reply to Viner in the February, 1937 QJE article. Hicks’s version of Keynes’s IS-LM analysis has no foundation in any type of D-Z model and hence is incomplete, as it provided no microfoundations in the theory of the firm, aggregate production function, labor market or necessary and sufficient first and second order conditions for optimality as provided by Keynes in chapter 20 explicitly.

The Role of Labor Demand in the Labor Market Effects of a Pension Reform

This paper shows that labor demand plays an important role in the labor market reactions of older women affected by pension deductions for early retirement. Based on a large representative sample of the German workforce (SIAB), we calculate the consequences of individual financial incentive changes caused by a pension reform in Germany on employment, unemployment, and partial retirement. The reform reduces financial incentives for early retirement. In line with labor demand theory, we show that employers with a high share of older worker inflow compared with the share of younger worker inflow, employers in sectors with a high share of collective bargaining agreements, and employers in sectors with few investments in research and development are more responsive to their employees´ demand to stay longer in the labor market. These employer groups mainly offer their older employees the option of staying longer in partial retirement instead of forcing them into unemployment before retirement.

Factors Associated With Hiring and Firing Financial Advisors During the Great Recession

From 2007 to 2009, the U.S. economy went through a deep economic downturn which is popularly known as the Great Recession. It resulted in a significant loss of wealth for many investors. While some investors sought the advice of financial advisors; others did not. This study examines the economic situation of households using the National Longitudinal Survey of Youth (NLSY) and analyzes the financial advisor–client relationship during the Great Recession to determine who fired or hired a financial advisor during this period. The results indicate that losing money, measured by a decrease net worth, was not the main reason why clients fired their financial advisor during the Great Recession. Interestingly, the results also show that experiencing a decrease in net worth was not the main reason why individuals pursued the services of a financial adviser during this period. Instead, current income and an increase in income were the primary factors that impacted the client–advisor relationship during the financial crisis. These results are consistent with consumer demand theory in which financial services are a normal good that people purchase less of when their income falls.

Public Administration Theory: Normative Necessity

Abstract Intellectual and practical endeavors almost always demand theory to help make sense of the complex world. Descriptive theories seek to predict what will happen, or at least understand what has happened, in particular circumstances. Normative theories seek to inform agents about what they should want or do in particular circumstances. As professionals seeking to promote good governance, public administrators must be able to predict consequences. To do so, they can make use of any relevant descriptive theory without concern for disciplinary boundaries. I argue that this catholic approach largely, though not completely, obviates the value of unique descriptive theories specific to public administration. In contrast, public administrators require normative theories that speak to the choices they must make as members of a profession that seeks to promote the good society. Thus, although as public administration scholars we face the same pressure as our disciplinary colleagues to create descriptive theories, our most important theoretical contributions are likely to be normative.

Conceptual framework of hierarchical water demand

Water resources demand analysis is one of the basic and core contents of water resources planning, allocation and management. Its mechanism analysis is the focus, hot spot and difficult point of future social water cycle research. Aiming at the problems of lack of mechanism of water resources demand analysis and the large forecasting results, Maslow’s hierarchical theory of demand is introduced into the field of water resources demand. Based on the characteristics of individual water demand mechanism, the mechanism and characteristics of human demand for water resources in the process of life, production and ecological construction are analyzed, and the hierarchical theory of water resources demand is established accordingly. The theory divides water demand from low to high into three levels: rigid demand, elastic demand and luxury demand, and combines water demand at each level into three levels: basic water demand, reasonable water demand and representational water demand. Finally, based on this theory, the water demand forecasting method is discussed. The research results enrich the theory and method of water demand prediction, and lay a theoretical foundation for scientific prediction of future water demand.

Control strategies in systemic metabolism.

Metabolic control systems coordinate myriad processes across the cellular, tissue and organismal levels to optimize the allocation of limited supplies across multiple, often competing, metabolic demands. As such, the regulation of metabolism can be analysed from the perspective of the economic theory of supply and demand. Here, we discuss how such analyses can provide new insights into the logic of metabolic control. In particular, we suggest that, in addition to being subject to well-appreciated homeostatic control, metabolism is subject to supply-driven and demand-driven controls, each operated by a dedicated set of signals throughout various physiological states, including inflammation. Furthermore, we argue that systemic homeostasis is a derived feature that evolved from the control systems that monitor metabolic supply and demand.

ANALYSIS OF DEMAND FOR BEEF DISTRICT OF JEMBER

Beff is a kind of foodstuff which relatively expensive, so not every household can buy it every time. This study aimed to: (1) analyze the factors that influence demand of beef at District of Jember, and (2) calculate the elasticity on price and income of demand of beef , also cross-elasticity of demand due on prices of other goods. This study used descriptive methods and surveys with deliberate regional selection (purposive method), selected sub district were Sumbersari, Patrang, Kaliwates, Jelbuk, Mayang, Tempurejo, Ambulu, and Sumberbaru. Sampling was carried out in proportioned random sampling with total of 72 respondents, data obtained from interviews community. Data analysis method used demand theory and Cobb-Douglas model multiple regression analysis. The results of this study concluded that: (1) the factors that significantly influence demand of beef at District of Jember were price of beef and fish , household income, dummy tasts and dummy research area, while the price factor of chicken meat, prices of eggs, education level , while number of family members hae no significant effect on.; (2) beef price elasticity was -4,701 showed that elsticity of beef was elastic, cross elasticity of chicken meat price, price of eggs and fish were 3,907; 4,416; 1,311, which showed that the three items were substitutes of beef, the income elasticity of 0,579 indicates that beef was a normal item, that was consumtion goods, which was in the event of an increasin g on income will caused increase demand.

Facility management demand theory

Purpose This study aims to confirm the inverse relationship between scheduled corrective maintenance (SCM) and corrective maintenance (CM) in health-care facility management. That is, the higher the SCM, the lower the demand for CM, and the lower the SCM, the higher the demand for CM. Furthermore, the study shows the importance of SCM as compared with CM in healthcare facilities. Design/methodology/approach This study investigated 28 services in facility engineering services for an exploratory study by using the open-ended approach of the grounded theory. Five years of data with a total of 20,480 SCM work orders and 84,837 CM work orders were extracted from the central management information system database. Data were analyzed using the Statistical Package for the Social Sciences program. Data were presented in the form of mathematical scores using descriptive statistics and correlation test to elaborate the variable characteristics and make conclusions. Findings This study provides empirical insights about the effectiveness of proactive maintenance in reducing breakdowns for systems or equipment in health-care facilities. Findings suggest that increasing SCM will reduce CM demands. Research limitations/implications The location approach, with restrictions to the comparison between CM and SCM, still allows for exploration, especially on the factors that can reduce the demand for correction. These factors include planned preventive maintenance, work flow process, level of competency of maintenance workers and health-care maintenance strategic planning. Practical implications Proactive maintenance is important in preventing dangerous occurrences in hospitals. Reducing breakdowns increases customer satisfaction. Therefore, this study shows implications to health-care maintenance organizations in the context of business strategic development. Originality/value Data are crucial in proving a hypothesis. This study confirms the evidence of facility management demand theory and highlights the inverse relationship between SCM and CM.

Permintaan, Penawaran Dan Keseimbangan Harga Dalam Prespektif Ekonomi Mikro Islam

In general, we believe that humans are social creatures with the need to complement each other’s lives, with each other's unlimited desires. While a Muslim is only allowed to consume halal and good. In Islamic teachings, illicit goods for consumption are not allowed to be made the basis of buying and selling or other transactions. In the demand and supply curves of Islam there are restrictions that must be done as a Muslim which is used as a basis for economic behavior. These restrictions are prohibited from making mafsadah, gharat, maisir, usury. This paper will answer the question how is the demand, supply and price balance in the perspective of Islamic microeconomics. The results of research shows that the concept of demand and supply in Islamic Islam aims to obtain prosperity or victory in the hereafter (falah) as a derivation of the belief that there is an eternal life after death, namely the after life, so that the existing budget must be set aside as provisions for the afterlife, such as alms and zakat. This means that there is a significant difference between conventional demand theory and Islamic demand theory. In conventional economics, consumers and producers have motivations that are dominated by the values of satisfaction, but in Islamic economics emphasizes only the level of need. The Islamic price balance mechanism in Islam is determined by the balance between demand and supply. This means that the price balance in the market is formed naturally, not because there is interference from the capitalist who can distort the market. This shows that the price regulation is left to the natural impersonal market mechanism. Keywords: Demand, Supply, Islamic perspective

The behavioral welfare economics of insurance

Behavioral economics poses a challenge for the welfare evaluation of insurance products and policy. It demands that we recognize that the descriptive account of behavior toward insurance depends on risk and time preferences that might not be the ones we were all taught, and still teach, and that subjective beliefs might not accord with actuarial assessments of loss probabilities. Challenging as that can be, things become even harder when we jettison naive notions of revealed preferences as the basis for evaluating the individual welfare of insurance decisions. These challenges demand theory, datasets that allow us to identify structural models, datasets that allow us to observe those that do not purchase insurance, appropriate econometric methods, and particularly pay close attention to the methodological nonsense that is often used to justify policy interventions.

The effects of exchange rate, price competitiveness indices and taxation on international tourism demand in Malaysia

This study examines the effect of Malaysia’s domestic taxation policy, price and exchange competitiveness with neighboring countries on international tourism demand in Malaysia based on the quantile estimation. Using monthly-based time series data, which set over the period of 1996-2017, we adopt the bootstrap quantile regression model to provide a comprehensive relationship of international tourism demand theory in Malaysia. The empirical results show that sales tax has a negative relationship with international inbound tourism demand, mainly at the middle quantile stages. Moreover, we also found that price competition from Thailand has a positive influence on Malaysia’s tourism demand; and appreciation of Indonesia’s exchange rate competitiveness tends to lead Malaysia’s tourism demand. These empirical findings open up new insights for policymakers in Malaysia as to how to improve fiscal policies and enhance continual increase of international inbound tourism demand in the upcoming years.

Peaking Interest: How Awareness Drives the Effectiveness of Time-of-Use Electricity Pricing

I apply and extend a new machine-learning method to estimate heterogeneous electricity demand responses to time-varying prices in an experiment on Irish households. The most important source of heterogeneity is consumer awareness, followed by information provision and baseline consumption. In-home electricity monitors doubled responses. Other household characteristics like demographics, appliance ownership, or house characteristics, were not predictive of heterogeneous effects. Surprisingly, households appeared to violate a central law of demand theory: while they responded to the existence of a price change, they were extremely insensitive to the magnitude of the price change. This suggests that “getting the prices right” is less important than getting consumers to pay attention in the first place.

What drives the venture capital investments in China?

Purpose This study aims to examine the venture capital (VC) industry in China. It has demonstrated a history of high growth with significant variations over time. The authors have examined the trends and determinants of VC investments in China over a 20-year period from 1995 to 2014. They find that the aggregate amount of VC investments, the total number of venture deals and the average amount of venture investments per deal in China are all significantly impacted by macroeconomic conditions (i.e. GDP, export, money supply), technology innovations and financial market indicators (i.e. initial public offerings (IPOs), interest rate, price-to-earnings ratio, etc.). They also find that the 2007 China A-Share stock market crash and the subsequent global financial crisis have motivated VCists in China to adjust their investment strategies and risk levels by allocating more capital to later-stage investments and securing more deals with later-round financings. However, after the 2008 global financial crisis, the China’s venture industry has recovered faster compared to the US counterpart response. Design/methodology/approach The authors first perform trend analysis of VC investments at an aggregate level, by stages of development, and across industry from 1995 to 2014.To test H1 and H2, the authors use multiple regression models with lagged explanatory variables. To test H3, the authors use univariate tests to compare the measures of VC investments at an aggregate level, stage funds ratios, stage deals ratios and financing series ratios during both a five-year and seven-year time windows around the 2007 A-Share stock market crash and the subsequent financial crisis. Findings The development of the VC industry in China has demonstrated a history of high growth with significant variation over time. The authors find that the aggregate amount of VC investments, the total number of venture deals and the average amount of venture investments per deal in China are all significantly impacted by macroeconomic conditions (i.e. GDP, export, money supply), technology innovations and financial market indicators (i.e. IPOs, interest rate, price-to-earnings ratio, etc.). The authors also find that the 2007 China A-Share stock market crash and the subsequent global financial crisis have motivated VCists in China to adjust their investment strategies and risk by allocating more capital to later-stage investments and securing more deals with later-round financings. However, the China VC industry has recovered faster compared to the USA just after the 2008 global financial crisis. Research limitations/implications There are also limitations in the study. The VC data in China in the earlier 1990s might not be very reliable due to the quality of statistics. Therefore, the trend analysis and discussions mainly focus on the time after 2000. Also, the authors cannot find VC financing sequence data for the analysis. Second, there is no doubt that the policy impact from Chinese transforming economic system and government policies on its VC industry is substantial (Su and Wang, 2013). However, they cannot find an appropriate variable to be included in the empirical models to consider this effect. Further study on this area would provide meaningful information. Third, although the authors have done comparison study between the VC industry in China in this study and the VC industry in the US documented in Ning et al. (2015) and discussed some interesting findings, more in-depth research in this area will be very useful. Practical implications The findings have meaningful implications for VCists and start-up companies seeking equity financings in China. VCists should closely monitor macroeconomic and market conditions to make appropriate adjustments to their risk and investment strategies. Entrepreneurs seeking equity financings for their business could also monitor the identified macroeconomic and market indicators, which can help them with their timing and to negotiate a better equity financing deal. VC financing is more likely to succeed when key macroeconomic and market indicators become favorable. Originality/value This paper contributes to the literature by testing the supply and demand theory on the VC market proposed by Poterba (1989) and Gompers and Lerner (1998) from the macroeconomic perspective using 20 years’ VC data from China. The authors also examine how the 2007 A-Share stock market crash and the subsequent financial crisis affected VCists to adjust their risk levels and investment strategies. It provides useful information for international academia and policymakers to understand the quick rise of China VC industry. The authors also find that the macroeconomic drivers of VC industry are somewhat different under different economic systems.

The Effect of Tourism and Market Institutional Policies on Tourist Visits from ASEAN Countries

Tourism industry has experienced a significant development. This can be seen from several indicators, such as the number of foreign and domestic tourist visits, tourist spending, employment opportunities and the tourism sector's contribution to national income (GDP). Indonesian Tourist Policy has been combined with Law No.10 of 2009 concerning Tourism, and operationalized by Government Regulation No. 50 of 2011 concerning the National Tourism Development Master Plan (RIPPARNAS). It coincides with the ASEAN liberalization policies. Previous economic tourism research has not accommodated the role of economic institutions as a determinant of foreign tourism demand in Indonesia. This study focuses on tourism demand from ASEAN countries. The model is expected to explain the optimization of tourism resources for development. This data panel study revealed that Fixed Effect Model (FEM) is the most appropriate econometrical model used to estimate tourism in Indonesia in ten years (2006-2015). This study revealed some similarities with previous studies, especially in strengthening the theory of demand. The relative cost of tourism which tends to be more efficient will increase the number of tourist visits. Access to communication infrastructure and the proportion of city residents in the country of origin will increase tourism demand to Indonesia. Liberalization of policies need not be feared by many people, because the institutional aspects of the market which include rules, regulations, fiscal strength and market openness will encourage the acceleration of tourism. However, this study found that tourism services in Indonesia are still inferior compare to those of ASEAN countries. This requires international tourism marketing that changes perceptions and develops adequate destinations to facilitate ASEAN community members. In addition, this study considers that modernization in rural areas and the strengthening of related policies are related to the implementation of tourism master plans to improve tourism optimization.

The Performances of insurance industry and the Nigerian economic growth

This research analyzed the insurance industry and economic growth in Nigeria between 1980 and 2015. Secondary data ranging from real gross domestic product, the premium of the insurance business, claim expenditure of insurance industry and inflation rate were utilized and sourced from Central Bank of Nigeria (CBN). The Ordinary Least Squares (OLS) multiple regression techniques, Descriptive statistics, Augmented Dickey-Fuller (ADF) test of stationarity and ARDL Bound Test Co-Integration were adopted for the model in the Study. The findings revealed that the premium of the insurance industry (PMI) impacts negatively on economic growth both in the extended and short run period. The claim expenditure of the insurance industry (CEX) revealed a progressive relationship with economic growth in the long run and a negative relation with growth in the short run. We therefore conclude following the Keynesian theory of aggregate demand which states that, ‘’if we will have to wait till the long run, we will all be dead’’, that insurance industry in Nigeria has not impacted positively on economic growth of Nigeria within the period under review and its operations and investment have not been prominent and contributory to the growth and development of Nigeria. Based on these outcomes, we recommend amongst others, that more investment ought to be made towards the insurance industry in Nigeria especially in terms of proper policy formulation by the government that would channel funds and encourage competition among the players in the industry and invariably contribute to the growth of the economy.

Contesting Contested Multilateralism: Why the West Joined the Rest in Founding the Asian Infrastructure Investment Bank

Abstract This study examines why a large number of Western advanced economies joined the China-led Asian Infrastructure Investment Bank (AIIB) in 2015 despite the bank’s purported challenge to the Western-centred international order in the area of multilateral development finance. Through a mixed-method examination involving elite interviews, analyses of government pronouncements and regressions, and by drawing on concepts from rational choice theory, international policy diffusion, and rational design of international institutions, this study finds that the AIIB’s success with regard to its large membership is due to China’s effective creation of a demand for the organization among Western advanced economies. We argue that policymakers in Western countries enjoyed ‘induced agency’, which China granted them in the process of creating the organization and deciding about its membership. First, Western advanced economies had agency because their involvement was needed to prevent the AIIB from becoming a homogenous small organization consisting of Asian debtor countries in favour of a global organization with a heterogeneous group of both debtor and creditor country members. The AIIB was thus set up to accommodate the specific economic and political goals of Western advanced economies. Secondly, Western advanced economies experienced agency in the process of deciding about their membership in the bank because China proactively courted them to join the AIIB. China moreover endorsed the spontaneous intensification of communications that ensued among Western advanced economies with regard to joining the AIIB. Both efforts ultimately resulted in diffusion among them of the decision to become members. Thirdly, the Western advanced economies were granted agency in the process of determining the AIIB’s organizational design, thus allowing them to converge the initially diverse visions for the institutional design of the bank and shift it from contesting the existing system of multilateral development banks to effectively integrating into it. Our study thus advances a theory of country-specific demand for membership in an international organization.