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14
result(s) for
"Method of tariff formation"
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Development of an effective method of tariff formation for rural areas: the case of Russian Federation
by
Popova, Elena
,
Zamotajlova, Daria
,
Pereira, João Paulo
in
Communications Engineering
,
Compromise prices and tariffs
,
Computer Communication Networks
2021
The conducted researches have shown that the features of the housing and communal sector do not allow talking about the possibility of calculating the “optimal” tariff rate. The development of an effective method of tariff formation for rural areas is particularly acute. The use of traditional method to calculate the amount of tariffs for housing and communal services provided to the population and enterprises (called “cost plus” approach) consists in a simple summation of the cost price of a service with a premium that was set directly by a particular housing and communal enterprise within the maximum and minimum values. The authors found that none of the current pricing and tariffs’ setting methods fulfills the requirements for an effective and economically founded tariff policy in the housing and communal services sector. In this regard, the development of a new methodology that will ensure the receipt of compromise tariffs for housing and communal services is required. Compromise analysis, the main purpose of which is to obtain optimal prices, can be used as a basis of such methodology.
Journal Article
Critical perspectives on GVC theory: uncovering GVC resilience through non-lead power
2024
Purpose
In international business (IB), the discussion of COVID-19-related global value chain (GVC) models driving resilience has taken momentum since May 2020. The purpose of this study is to uncover insights that the pandemic provided as a unique research opportunity, holistically, revealing the significant role of non-lead firms in GVC outcomes and resilience. This allows to extend theory as the authors critically identify impact criteria and assess interdependence and valence, thus progressing the traditional (pre-pandemic) IB view of GVC governance and orchestration.
Design/methodology/approach
This study opts for an integrative review to help create a much-needed extension of IB theory by means of a critical perspective on GVC theory. The authors examine the extant body of IB literature as the relevant stock of collective IB knowledge prompted by the COVID-19 pandemic, uncovering contributions – with a focus on the role of non-lead firms in orchestration and resilience – that allows to clarify what was not evident pre-pandemic. With this, the authors move the theory from its efficiency focus to a better recognition of the interdependencies of power and profit outcomes stemming from asymmetries of interrelationships. By design, the authors focus on the unique research period of the pandemic and orchestration complexities along the development of configurational arguments beyond simple correlations (Fiss, 2011), revealing key dependencies as key themes. The authors highlight further research avenues following Snyder (2019) that are called upon to strengthen that understanding and that helps extend theory.
Findings
This research provides a critical perspective on the application of the traditional IB views for GVC governance (designed for efficiency, cost and proximity to markets with pre-dominance for just in time), which has shifted during the pandemic to accommodate for adaptation and adjustment to resilience and just in case considerations. The holistic review reveals not only the key country- and multinational enterprise (MNE)-dependencies with residual impact determining the balance between just-in-time and just-in-case. Also, the authors advance the understanding of the (un)balance of the traditional GVC – focused on just-in-case rather than just-in-time through a lead and non-lead GVC participation and power lens yet rarely observed. The authors find that governance should not be construed as “management” such that it resolves into decisions undertaken in lead firms for execution in subordinate GVC participants. Autonomy allows to subsidiary units by MNE lead firms and/or exercised by (mainly, innovative) non-subsidiary GVC participant firms, is uncovered as a key driver in this. Greater delegation capacity appears to help provide resilience to loss in profit, with a recognition that there may be a dynamic trade-off between power and profit. In addition, the authors are able to identify correlations with innovation, demand elasticity, digital uptake, investment and other, that the authors trust will set the scene for additional research deepening and extending the findings.
Research limitations/implications
Integrative literature reviews include a problem formulation (i.e. that is limited to published topics around an emerging theme) and are hence very focused in nature and approach. This applies to this paper. Data analysis in this method is not typically using statistical methods in contrast to meta-analyses. Also, the authors limit the sample to a relatively short time period with 33 publications analysed, purposefully focusing on the most prompt and “acute” insights into GVCs during the pandemic.
Practical implications
The traditional GVC governance model is designed for efficiency, cost and proximity to markets with pre-dominance for just in time. The authors reveal dependencies that are instrumental to better understand lead and non-lead interaction and relative autonomy, with a focus on residual impact determining the balance between just-in-time and just-in-case that, if in the sought equilibrium and agile, can allow alignment with context and this resilience. This paper specifically provides practical insights and visualization that highlights stages/“ripple” effects and their impact and the questions to ask as stakeholders look for GVC resilience. This includes, int.al., firms and their role as strategic agents, prompting participants through the learnings from exogenous shock to realign their strategies, redistributed manufacturing of production across subsidiary and non-subsidiary non-lead firms, greater competition and hence power for suppliers leveraging resilience and innovation, greater understanding of localization and regionalization of production of essential supplies, interaction with governments, and of investment impacts abroad especially to secure GVC participation.
Social implications
The insights provided through this extension of theory with its literature review reveal the importance of aligning IB research into GVCs to factors that became visible through alternative or unusual settings, as they have the power to reveal the limitations of traditional views. In this case, a mainly efficiency-led, just-in-time focused GVC governance model is reviewed through the literature that emanated during the pandemic, with a critical perspective, which helped uncover and underline the complexities and evolution of GVC governance, providing fundamental support to solutioning the continuing global supply chain challenges that started as a result of the pandemic and are yet again accelerated by the Ukraine and Middle Eastern wars and its impact with, int.al., concerns over possible severe global food, labour/migration and resources crises. IB holds a social responsibility to help identify critical challenges from the disciplinary perspective and help advance resilience for social benefit.
Originality/value
This paper supports the original IB theory development by extending GVC theory into the lead – non-lead dynamics that may, under certain conditions, provide a “Resilience wall” for GVCs. The value created through insights stemming from a unique period of time for GVC is significant. It allows us thus also to pave the way to an emerging and critical research adaption looking into equilibrium, nuancing demand elasticity, better understanding trade and investment impacts along GVCs and more. By examining views on the sources of pandemic risks in a possibly unique setting, the authors offer added value from extant IB research insights by combining them, revealing the importance for GVCs to investigate not only key dependencies between the exogenous shock, i.e. context, and the impacts assessed through this literature but to further use their inherent value to create a framework for further conceptualization and extension of the traditional IB view on GVC governance. This work illustrates the urgency and importance for IB to take a timely and possibly more critical approach to the investigation of governance models that have, to date, shown some significant limitations.
Journal Article
Networks, human capital and export success: evidence from Bangladesh
by
Jayanthakumaran Kankesu
,
Bari Mohammad Tariful
in
Candidates
,
Capital formation
,
Economic theory
2021
This research recognises firm heterogeneity theories and uses the extensive transaction-level data of customs to analyse the export success of Bangladesh at the level of annual activity of individual exporters during the period 2004–2011. It identifies the network of peer exporters as a significant factor that promotes export success in both direct and indirect channels. As well as the financial system reported in earlier studies, this study finds the formation of human capital as another influential candidate for an indirect channel. Our findings also suggest that at the exporter’s level, experience with destination and products, initial exports and the level of competency with products contribute significantly to the success of new exports. More importantly, for Bangladeshi exporters, the effect of destination experience is stronger than that of product experience.
Journal Article
Voluntary Export Restraints on Automobiles: Evaluating a Trade Policy
by
Levinsohn, James
,
Pakes, Ariel
,
Berry, Steven
in
Automobile industry
,
Automobiles
,
Automotive industries
1999
We evaluate the voluntary export restraint (VER) that was initially placed on exports of automobiles from Japan in 1981. We evaluate the impact this policy had on U.S. consumer welfare, firm profits, and forgone tariff revenue from its initiation through 1990.
Journal Article
Overlapping coalitions, bargaining and networks
2017
We model the formation of coalitions that are not necessarily disjoint. We propose a new bargaining game that yields an overlapping coalition structure as an outcome. Equilibrium does not always exist in pure strategies for such a game, but we show that it always exists with a mild degree of mixed strategies. We derive conditions for a complete duality between networks and overlapping coalitions, and we provide a new rationale for the sequential formation of networks.
Journal Article
Farsighted free trade networks
by
Zhang, Jin
,
Zu, Lei
,
Xue, Licun
in
Agreements
,
Behavioral/Experimental Economics
,
Dissolution
2013
The paper examines whether bilateral free trade agreements can lead to global free trade. We reconsider the endogenous tariff model introduced by Goyal and Joshi (
2006
) who study pairwise stability of free trade networks. We depart from their analysis by adopting the concept of
pairwise farsightedly stable networks
(Herings et al.
2009
, GEB). We show that the complete network (i.e., global free trade) constitutes a pairwise farsightedly stable set. In particular, there is a farsightedly improving path from the empty network (i.e., no free trade agreement in place) to the complete network, which involves link additions only, while farsightedly improving paths from preexisting free trade networks may involve link deletion (i.e., dissolution of some bilateral FTAs). Moreover, we show that pairwise farsightedly stable set of networks is not unique. One implication of our results is that bilateral trade negotiations, if properly channeled, can lead to global free trade, although some bilateral agreements may have to be dissolved first to pave the way towards global free trade.
Journal Article
A leader-followers model of power transmission capacity expansion in a market driven environment
by
Vespucci, Maria Teresa
,
Pisciella, Paolo
,
Bertocchi, Marida
in
Balancing
,
Business and Management
,
Competition
2016
We introduce a model for analyzing the upgrade of the national transmission grid that explicitly accounts for responses given by the power producers in terms of generation unit expansion. The problem is modeled as a bilevel program with a mixed integer structure in both upper and lower level. The upper level is defined by the transmission company problem which has to decide on how to upgrade the network. The lower level models the reactions of both power producers, who take a decision on new facilities and power output, and Market Operator, which strikes a new balance between demand and supply, providing new Locational Marginal Prices. We illustrate our methodology by means of an example based on the Garver’s 6-bus Network.
Journal Article
Coalition Formation in the House and Senate: Examining the Effect of Institutional Change on Major Legislation
by
Carson, Jamie L.
,
Madonna, Anthony J.
,
Lynch, Michael S.
in
Changes
,
Cloture
,
Coalition Formation
2011
We investigate various theories of legislative coalition formation in a bicameral context. More specifically, we employ a quasi-experimental design to examine the size of coalitions in both the House and Senate across the late nineteenth and early twentieth centuries. This offers us considerable analytical leverage in investigating how changes in key institutional decision rules (the adoption of the Reed’s Rules in the House and the passage of cloture in the Senate) affect the likelihood of passing major policy reform. Our findings indicate that when the size of the majority party is adequately controlled for, changes in institutional structures do not have a significant effect on cross-chamber coalition formation.
Journal Article
Corruption, institutions and trade
2012
The economics literature describes various factors that affect trade between countries, which, in addition to the standard economic and geographic factors, also include cultural, ethnic and historical factors. The present study is apparently one of only a few attempts in the literature to examine directly the effects of corruption on trade and the first attempt to examine trade over time in a specific country whose level of corruption changed significantly. Israel was chosen as the subject of the study mainly because of the fact that, according to international indexes, the country’s status as a civil society has declined significantly over the past decade. According to the corruption index of Transparency International, Israel was ranked 33rd in the world, at the end of the sample period in 2008, having fallen from 14th in 1995. The results of the research can serve as the basis for comparison to similar studies of other Western countries. The study’s conclusions support the hypothesis that the effect of corruption on trade of any given country is significant, stable and negative.
Journal Article
Stochastic and Dynamic Shipper Carrier Network Design Problem
by
Valsaraj, Varunraj
,
Waller, Steven Travis
,
Unnikrishnan, Avinash
in
Algorithms
,
Capacity shifting heuristic
,
Civil Engineering
2009
The focus of this work is to determine the optimal storage capacity to be installed on transhipment nodes by shippers in a dynamic shipper carrier network under stochastic demand. A two stage linear program with recourse formulation is developed where in the first stage, the shipper decides the optimal capacity to be installed on transhipment nodes. In the second stage, the shipper chooses a routing strategy based on the realized demand. The performance of the following solution methods: Stochastic L Shaped Method, Regularized Decomposition and L Shaped Method with preliminary cuts were compared for various network sizes and numerous demand scenarios. A novel capacity shifting heuristic was introduced to generate a feasible implementable solution which significantly improves the performance of Regularized Decomposition and provides the best performance in the cases tested. Various ways of generating analytical bounds on the objective function value was discussed. The new capacity shifting heuristic was found to be efficient in generating tight upper bounds. Even though the formulation considered in this paper is for a single commodity, the model can be easily extended to account for multiple commodities.
Journal Article