The effect of financing decisions on the choice of manufacturing technologies

This paper demonstrates the importance of jointly considering financing and technology choices when making manufacturing investments. We show that considerable value can be added to investments through financing decisions, and that the gains due to financing are sensitive to technology choice. A model of financing and technology choice is presented that considers differences in cost structure and product flexibility, and applies it to an example involving flexible manufacturing systems (FMSs). Three main results emerge. First, optimal financing decisions are different for different technologies and the choice of technology can change when financing and technology decisions are made simultaneously. Second, if one technology's fixed and variable costs are lower or its initial investment higher than another technology's the former has higher value added due to financing. Since empirical data shows that FMS and conventional technologies have this pattern, ignoring the benefits of debt financing leads to undervaluation of new technology. Third, product flexibility can add considerable value through its effect on financing decisions because product flexibility reduces variability of cash flows. A major conclusion is that financing and technology choice are long-term strategic decisions that should be made jointly. Firms that make these decisions separately, not considering the effect of one on the other, may make suboptimal technology decisions.     

Human capital, schooling and health

A consensus has been forged in the last decade that recent periods of sustained growth in total factor productivity and reduced poverty are closely associated with improvements in a population's child nutrition, adult health, and schooling, particularly in low-income countries. Estimates of the productive returns from these three forms of human capital investment are nonetheless qualified by a number of limitations in our data and analytical methods. This paper reviews the problems that occupy researchers in this field and summarizes accumulating evidence of empirical regularities. Social experiments must be designed to assess how randomized policy interventions motivate families and individuals to invest in human capital, and then measure the changed wage opportunities of those who have been induced to make these investments. Statistical estimation of wage functions that seek to represent the relationship between wage rates and a variety of human capital stocks may yield biased estimates of private rates of return from these investments for a variety of reasons. The paper summarizes several of these problems and illustrates how data and statistical methods can be used to deal with some of them. The measures of labor productivity and the proxies specified for schooling and adult health are first discussed, and then the functional relationships between human capital and wages are described. Three types of estimation problem are discussed: (1) bias due to omitted variables, such as ability or frailty; (2) bias due to the measurement of an aggregation of multiple sources of human capital, e.g. genetic and socially reproducible variation, which may contribute to different gains in worker productivity; and (3) errors in measurement of the human capital stocks. Empirical examples and illustrative estimates are surveyed.     

Bridging the climate mitigation gap with economy‐wide material productivity

Projections of UK greenhouse gas emissions estimate a shortfall in existing and planned climate policies meeting UK climate targets: the UK's mitigation gap. Material and product demand is driving industrial greenhouse gas emissions at a rate greater than carbon intensity improvements in the economy. Evidence shows that products can be produced with fewer carbon intensive inputs and demand for new products can be reduced. The economy‐wide contribution of material productivity and lifestyle changes to bridging the UK's mitigation gap is understudied. We integrate an input‐output framework with econometric analysis and case study evidence to analyse the potential of material productivity to help the UK bridge its anticipated emissions deficits, and the additional effort required to achieve transformative change aligned with 2 and 1.5°C temperature targets. We estimate that the emissions savings from material productivity measures are comparable to those from the Government's planned climate policy package. These additional measures could reduce the UK's anticipated emissions deficit up to 73%. The results demonstrate that material productivity deserves greater consideration in climate policy.     

Does the Wage Gap between Private and Public Sectors Encourage Political Corruption?

We present a dynamic network model of corrupt and noncorrupt employees representing two states in the public and private sector. Corrupt employees are more connected to one another and are less willing to change their attitudes regarding corruption than noncorrupt employees. This behavior enables them to prevail and become the majority in the workforce through a first-order phase transition even though they initially represented a minority. In the model, democracy—understood as the principle of majority rule—does not create corruption, but it serves as a mechanism that preserves corruption in the long run. The motivation for our network model is a paradox that exists on the labor market. Although economic theory indicates that higher risk investments should lead to larger rewards, in many developed and developing countries workers in lower-risk public sector jobs are paid more than workers in higher-risk private sector jobs. To determine the long-run sustainability of this economic paradox, we study data from 28 EU countries and find that the public sector wage premium increases with the level of corruption.     

Labor Embodied in Trade

Global production chains carry environmental and socioeconomic impacts embodied in each traded good and service. Even though labor and energy productivities tend to be higher for domestic production in high‐income countries than those in emerging economies, this difference is significantly reduced for consumption, when including imported products to satisfy national demand. The analysis of socioeconomic and environmental aspects embodied in consumption can shed a light on the real level of productivity of an economy, as well as the effects of rising imports and offshoring. This research introduces a consumption‐based metric for productivity, in which we evaluate the loss of productivity of developed nations resulting from imports from less‐developed economies and offshoring of labor‐intensive production. We measure the labor, energy, and greenhouse gas emissions footprints in the European Union's trade with the rest of the world through a multiregional input‐output model. We confirm that the labor footprint of European imports is significantly higher than the one of exports, mainly from low‐skilled, labor‐intensive primary sectors. A high share of labor embodied in exports is commonly associated with low energy productivities in domestic industries. Hence, this reconfirms that the offshoring of production to cheaper and low‐skilled, labor‐abundant countries offsets, or even reverts, energy efficiency gains and climate‐change mitigation actions in developed countries.     

Developing the Chinese Environmentally Extended Input‐Output (CEEIO) Database

Environmentally extended input‐output (EEIO) databases are increasingly used to examine environmental footprints of economic activities. Studies focusing on China have independently, repeatedly developed EEIO databases for China. These databases are usually not publicly available, leading to repeated efforts, inconsistent with one another using different approaches, of limited environmental accounts, and lacking transparency, preventing continuous updating. We developed a transparent, comprehensive, and consistent Chinese EEIO database covering a wide period of time (currently 1992, 1997, 2002, and 2007 for which benchmark input‐output tables [IOTs] are available), sector classifications (original sector classifications in benchmark IOTs, a 45‐sector classification commonly used in China's environmental and energy statistics, and a 91‐sector classification with maximized sector resolution ensuring temporal consistence), and environmental satellite accounts for 256 types of resources and 30 types of pollutants in this study. Moreover, the environmental satellite accounts cover households in addition to sectors, allowing developing closed models. We make this database publicly available with open access for broader dissemination ( www.ceeio.com ). We demonstrate the database by evaluating environmental pressures of Chinese products in 2007. Comparisons of our database with previous studies validate its rationality and reliability.     

The future of biomanufacturing in Singapore

Singapore's vision is to become a global biomedical sciences (BMS) hub and to develop the BMS industry as the fourth manufacturing pillar of Singapore's economy. The biomanufacturing industry has been a significant growth area for Singapore's BMS industry, with four major biologics investments totaling close to US$1 billion being committed in less than 2 years and the setting up of local biomanufacturing companies. In parallel, resources in biomedical research and bioprocess manpower capabilities are being built up for this knowledge-intensive industry. Located at the Biopolis, the epicenter of biomedical R&D, the Bioprocessing Technology Institute (BTI) has been developing bioprocess expertise and programs to support the manpower needs of the growing biomanufacturing sector. With a strong commitment to provide the biomanufacturing industry with research and manpower support, the future looks promising and Singapore is well positioned to become a leading biomanufacturing hub in Asia Pacific.     

A Measure of Total Research Impact Independent of Time and Discipline

Authorship and citation practices evolve with time and differ by academic discipline. As such, indicators of research productivity based on citation records are naturally subject to historical and disciplinary effects. We observe these effects on a corpus of astronomer career data constructed from a database of refereed publications. We employ a simple mechanism to measure research output using author and reference counts available in bibliographic databases to develop a citation-based indicator of research productivity. The total research impact (tori) quantifies, for an individual, the total amount of scholarly work that others have devoted to his/her work, measured in the volume of research papers. A derived measure, the research impact quotient (riq), is an age-independent measure of an individual''s research ability. We demonstrate that these measures are substantially less vulnerable to temporal debasement and cross-disciplinary bias than the most popular current measures. The proposed measures of research impact, tori and riq, have been implemented in the Smithsonian/NASA Astrophysics Data System.     

Truncation Error Estimates in Process Life Cycle Assessment Using Input‐Output Analysis

Process life cycle assessment (PLCA) is widely used to quantify environmental flows associated with the manufacturing of products and other processes. As PLCA always depends on defining a system boundary, its application involves truncation errors. Different methods of estimating truncation errors are proposed in the literature; most of these are based on artificially constructed system complete counterfactuals. In this article, we review the literature on truncation errors and their estimates and systematically explore factors that influence truncation error estimates. We classify estimation approaches, together with underlying factors influencing estimation results according to where in the estimation procedure they occur. By contrasting different PLCA truncation/error modeling frameworks using the same underlying input‐output (I‐O) data set and varying cut‐off criteria, we show that modeling choices can significantly influence estimates for PLCA truncation errors. In addition, we find that differences in I‐O and process inventory databases, such as missing service sector activities, can significantly affect estimates of PLCA truncation errors. Our results expose the challenges related to explicit statements on the magnitude of PLCA truncation errors. They also indicate that increasing the strictness of cut‐off criteria in PLCA has only limited influence on the resulting truncation errors. We conclude that applying an additional I‐O life cycle assessment or a path exchange hybrid life cycle assessment to identify where significant contributions are located in upstream layers could significantly reduce PLCA truncation errors.     

Generation and distribution of productivity gains in beef cattle farming: Who are the winners and losers between 1980 and 2015?

Surplus accounting is a method for evaluating trends in how a firm’s productivity factors (intermediate inputs, capital, land, labour) are performing and how the productivity gains are redistributed between agents in the economy. Here the surplus accounting method was applied on a database of 164 Charolais-area suckler cattle farms running from 1980 to 2015. Over this 36-year period – with differences per sub-period – the cumulative productivity surplus (PS) increased at a low rate of +0.17%/year (i.e. cumulative volume of outputs produced increased slightly more than cumulative volume of inputs used). This timid increase in PS is linked to the constant expansion in labour productivity whereas other factor productivities have shrunk. The observable period-wide macrotrends are that commercial farm businesses struggle to protect their revenues, we also observe a slight fall in input prices, land rent and financing costs, and a huge climb in direct support-policy payments. The bulk of the cumulative economic surplus has been captured downstream – 64% downstream of the cattle value chain as a drop in prices, and 22% downstream of other value chains (chiefly cereals). It emerges that the productivity gains in beef cattle farming mostly benefit the downstream value chain (packers–processors, distributors and consumers), whereas it is mainly government money backing this drop in prices of agricultural output. Here we see the principal of the 1992 ‘MacSharry’ reform at work, with a transfer from the taxpayer through direct support-policy payments through to the consumer via lower prices. The simple fact that farmers’ incomes are stagnating is a clear indication that they are net losers in this distribution of productivity gains, despite the improvement in labour factor productivity.     

The Scientific Impact of Developing Nations

This paper analyzes science productivity for nine developing countries. Results show that these nations are reducing their science gap, with R&D investments and scientific impact growing at more than double the rate of the developed world. But this “catching up” hides a very uneven picture among these nations, especially on what they are able to generate in terms of impact and output relative to their levels of investment and available resources. Moreover, unlike what one might expect, it is clear that the size of the nations and the relative scale of their R&D investments are not the key drivers of efficiency.     

A Quantitative Health Evaluation of an Eco-Economy in the Semi-Arid Loess Plateau of China

Understanding the factors that affect the health of a semi-arid region's eco-economy is necessary for its sustainable development. The health evaluation, or diagnoses, of an eco-economy at the small watershed scale requires the integrated analysis of ecological, economic, and social factors, yet few studies have achieved this. The health of an eco-economy comprises three components: vigor, organization, and resilience. We use an analytic hierarchy process to develop a health evaluation index system that evaluates the health of an eco-economy system. We then use this diagnostic method to explore the factors affecting the health status of a semi-arid loess watershed in China in 2007 and 2009. The results show that between 2007 and 2009 the health status of the eco-economy improved from the “better” stage to the “benign circle” stage. The primary productivity of grassland, land productivity, rural per capita net income, number of livestock per household, input–output ratio, commodity rate of farm produce, and labor productivity were the main factors influencing the health of this eco-economy. Furthermore, this study shows that the eco-economy depends on material input from regions outside the watershed.     

Self-organization and entropy reduction in a living cell

In this paper we discuss the entropy and information aspects of a living cell. Particular attention is paid to the information gain on assembling and maintaining a living state. Numerical estimates of the information and entropy reduction are given and discussed in the context of the cell's metabolic activity. We discuss a solution to an apparent paradox that there is less information content in DNA than in the proteins that are assembled based on the genetic code encrypted in DNA. When energy input required for protein synthesis is accounted for, the paradox is clearly resolved. Finally, differences between biological information and instruction are discussed.     

A Metabolic Profile of Peru: An Application of Multi‐Scale Integrated Analysis of Societal and Ecosystem Metabolism (MuSIASEM) to the Mining Sector's Exosomatic Energy Flows

The present Peru's metabolic profile study poses the specific question, What are the long‐term national energy system implications of the recent government‐supported growth of the mining sector? The question is addressed by analyzing interactions between human economic activity (in hours) and electricity input flows (in joules) in the mining sector of the Peruvian economy in 2000 and 2010, with a projection for 2020. The methodology is based on the multi‐scale integrated analysis of societal and ecosystem metabolism (MuSIASEM), which is an application of Georgescu‐Roegen's bioeconomics approach. Empirical results found for the national economy show: (1) the massive increase in size of the energy system, which is explained by exploitation of the Camisea natural gas (NG) reserves, and (2) the potential for establishing a carbon lock‐in in the electricity sector, owing to increasing construction of electricity plants based on NG as their primary energy source. Empirical results specific to the mining sector indicate: (1) the extremely high electricity metabolic rate of the mining sector (61.6 megajoules per hour in 2010), which was found to be 11 times the rate of electricity used per hour of human activity in the building and manufacturing sector in Peru, and (b) the potential increases in the proportion of electricity used in the mining sector (flow share), which could jeopardize the availability of high‐quality primary energy supplies for the rest of society. In light of these implications, it is argued that the Peruvian government's strong support for growth of the mining sector may have to be reconsidered.     

Defining and evaluating the ecological restoration economy

For decades, industry groups and many media outlets have propagated the notion that environmental protection is bad for business. However, missing from this public debate has been a detailed accounting of the U.S. economic output and employment that are created through conservation, restoration, and mitigation actions, which we call the “Restoration Economy.” In this paper, we review related literature, including 14 local and state‐level case studies of privately funded environmental restoration projects. We also review federal and state government programs that fund restoration throughout the United States, revealing the complex nature of this sector. We find growing evidence that the restoration industry not only protects public environmental goods but also contributes to national economic growth and employment, supporting as many as 33 jobs per $1 million invested, with an employment multiplier of between 1.48 and 3.8 (the number of jobs supported by every restoration job) and an output multiplier of between 1.6 and 2.59 (multiplier for total economic output from investments). The existing literature also shows that restoration investments lead to significant positive economic and employment impacts and appear to have particularly localized benefits, which can be attributed to the tendency for projects to employ local labor and materials. While these initial figures are promising, the extent of environmental restoration activities and benefits at a national level is not yet well understood. Our findings reveal the need for a methodological framework for more accurately and broadly estimating the size of the U.S. restoration sector and its impact on the U.S. economy.     

Assessment of yield gaps on global grazed‐only permanent pasture using climate binning

To meet rising demands for agricultural products, existing agricultural lands must either produce more or expand in area. Yield gaps (YGs)—the difference between current and potential yield of agricultural systems—indicate the ability to increase output while holding land area constant. Here, we assess YGs in global grazed‐only permanent pasture lands using a climate binning approach. We create a snapshot of circa 2000 empirical yields for meat and milk production from cattle, sheep, and goats by sorting pastures into climate bins defined by total annual precipitation and growing degree‐days. We then estimate YGs from intra‐bin yield comparisons. We evaluate YG patterns across three FAO definitions of grazed livestock agroecosystems (arid, humid, and temperate), and groups of animal production systems that vary in animal types and animal products. For all subcategories of grazed‐only permanent pasture assessed, we find potential to increase productivity several‐fold over current levels. However, because productivity of grazed pasture systems is generally low, even large relative increases in yield translated to small absolute gains in global protein production. In our dataset, milk‐focused production systems were found to be seven times as productive as meat‐focused production systems regardless of animal type, while cattle were four times as productive as sheep and goats regardless of animal output type. Sustainable intensification of pasture is most promising for local development, where large relative increases in production can substantially increase incomes or “spare” large amounts of land for other uses. Our results motivate the need for further studies to target agroecological and economic limitations on productivity to improve YG estimates and identify sustainable pathways toward intensification.     

The Impact of Land Privatization on Cooperation in Farm Labor in Kenya

Establishing private property in land through registration and titling has been promoted in developing countries due to the anticipated benefits of private ownership in access to credit, productivity enhancing investments, and productivity gains. Evidence of such benefits is limited, however. In this paper, we examine a related question: What is the impact of privatization on cooperation in farm labor? Data collected in 2005 from Samburu District in Kenya is analyzed, comparing one community where land has been privatized to a second where land is communally held in a group ranch. It is hypothesized that households with title deeds are less likely to cooperate in farm labor than households without deeds. The hypothesis was confirmed, as the odds of cooperating in communal farm labor are 93.0% lower for households with deeds compared to those without. This effect has negative implications for collective action efforts in Siambu.     

能源对北京市城市碳循环的影响

研究城市碳循环过程并阐明能源对碳循环的影响,可为城市节能减排政策的制定和实施提供参考依据。基于城市碳循环模型核算了2005—2014年北京市的碳储量和碳通量,并通过能源碳效应指数来探讨能源对城市碳循环的影响。结果表明人为碳储量是北京市总碳储量增加的主要驱动力。北京市的碳输入主要来自水平方向,表明北京市的发展在很大程度上依赖于外部环境的物质供给;北京市的碳输出主要是能源消耗产生的垂直碳输出。能源活动相关的碳通量占北京市总碳通量的比重,即能源碳效应,在2006年高达79.46%,而后开始呈波动下降的趋势。能源对北京市碳循环影响最大的是垂直输出方向,其次是水平输入方向,因此低碳城市建设需要加强对垂直碳通量和水平碳通量的调节和管理,尤其是与能源活动相关的碳通量,与此同时,保护自然植被和增加生态用地对提高城市碳减排能力也至关重要。     

基于MSIASM方法的沈阳城市代谢研究

本文采用社会代谢多尺度综合分析方法分析沈阳经济的演化过程。研究表明,1978～2003年,沈阳投入在第一、二产业的人类活动时间(HA值)所占比重有所下降;而第三产业的比重有增加趋势,但不明显;同时投入在家政部门的人类活动量(包括所有非经济活动)逐年下降;1978～1995年每个工作时间负担的非工作时间数量越来越小,1995～2003年每个工作时间负担的非工作时间数量越来越大,这与沈阳市的经济发展规律一致;沈阳社会/劳动生产率显著增加,社会经济生产率、社会劳动生产率、农业部门劳动生产率、生产部门劳动生产率,以及服务与管理部门的劳动生产率增长了20～30倍,说明沈阳的社会经济发展主要靠工业的拉动力。     

Social cognition and psychopathology: a critical overview

The philosophical and interdisciplinary debate about the nature of social cognition, and the processes involved, has important implications for psychiatry. On one account, mindreading depends on making theoretical inferences about another person''s mental states based on knowledge of folk psychology, the so-called “theory theory” (TT). On a different account, “simulation theory” (ST), mindreading depends on simulating the other''s mental states within one''s own mental or motor system. A third approach, “interaction theory” (IT), looks to embodied processes (involving movement, gesture, facial expression, vocal intonation, etc.) and the dynamics of intersubjective interactions (joint attention, joint action, and processes not confined to an individual system) in highly contextualized situations to explain social cognition, and disruptions of these processes in some psychopathological conditions. In this paper, we present a brief summary of these three theoretical frameworks (TT, ST, IT). We then focus on impaired social abilities in autism and schizophrenia from the perspective of the three approaches. We discuss the limitations of such approaches in the scientific studies of these and other pathologies, and we close with a short reflection on the future of the field. In this regard we argue that, to the extent that TT, ST and IT offer explanations that capture different (limited) aspects of social cognition, a pluralist approach might be best.