Asymmetric Information and Global Sourcing

This paper aims to study the choice of offshoring modes made by multinationals in the presence of asymmetric information. We focus on two types of asymmetric information, namely hidden characteristics and hidden action. The former creates adverse selection problem, and the later leads to moral hazard problem, both of which incur non-trivial costs to multinationals. We show that different offshoring modes, including greenfield foreign direct investment, joint venture, and outsourcing, can serve as a means to overcome or mitigate the problem of information asymmetry. We study the conditions under which one particular type of offshore modes dominates the others. The model generates implications consistent with the patterns of the prevalence of various offshoring models over time, and across industries and countries.Asymmetric Information, Global Sourcing, Foreign Direct Investment, Joint Venture, Outsourcing

Asymmetric Information and Global Sourcing

This paper aims to study the choice of offshoring modes made by multinationals in the presence of asymmetric information. We focus on two types of asymmetric information, namely hidden characteristics and hidden action. The former creates adverse selection problem, and the later leads to moral hazard problem, both of which incur non-trivial costs to multinationals. We show that different offshoring modes, including greenfield foreign direct investment, joint venture, and outsourcing, can serve as a means to overcome or mitigate the problem of information asymmetry. We study the conditions under which one particular type of offshore modes dominates the others. The model generates implications consistent with the patterns of the prevalence of various offshoring models over time, and across industries and countries.Asymmetric Information, Global Sourcing, Foreign Direct Investment, Joint Venture, Outsourcing

Status and Multiple Growth Regimes

In order to explain multiple growth regimes, one of the working hypotheses is based on initial conditions. Using a standard optimal growth with the status effect represented by wealth a la Friedman (1953), this paper obtains multiple growth regimes based on initial conditions without reliance on other assumptions such as nonlinearities of production or consumption functions and heterogeneous agents/savings behavior. With the status effect, the resulting equilibrium distribution is characterized by a group with a lower level of income and another group with a higher level of income. Globally, a sufficiently strong monetary policy may be an instrument in order for an economy in poverty traps to take off and become wealthy in the long run. Locally, our model sheds light on the relationship between money/inflation and capital in the long run that, given general cash-in-advance constraints on investment relative to consumption, is determined by the curvature of the utilities of wealth and consumption.one-sector growth model, wealth effect, CIA constraint, takeoff

Inflation and Growth: Impatience and a Qualitative Equivalence

This paper studies the role of an endogenous time preference on the relationship between inflation and growth in the long run in both the money-in-utility-function (MIUF) and transaction costs (TC) models. We establish a qualitative equivalence between the two models in a setup without a labor-leisure tradeoff. When the time preference is decreasing (or increasing) in consumption and real balances, both the MIUF and TC models are qualitatively equivalent in terms of predicting a negative (or positive) relationship between inflation and growth in a steady state. Both a decreasing and an increasing time preference in consumption are consistent with the arguments in the literature. While a decreasing time preference in real balances corroborates with empirical evidence, there is no evidence in support of an increasing time preference in real balances.endogenous time preferences, superneutrality, qualitative equivalence

Rapid identification of Mycobacterium tuberculosis infection by a new array format-based surface plasmon resonance method

Tubercle bacillus [TB] is one of the most important chronic infectious diseases that cause millions of deaths annually. While conventional smear microscopy and culture methods are widely used for diagnosis of TB, the former is insensitive, and the latter takes up to 6 to 8 weeks to provide a result, limiting the value of these methods in aiding diagnosis and intermediate decisions on treatment. Therefore, a rapid detection method is essential for the diagnosis, prognosis assessment, and recurrence monitoring. A new surface plasmon resonance [SPR] biosensor based on an array format, which allowed immobilizing nine TB antigens onto the sensor chip, was constructed. Simultaneous determination of multiple TB antibodies in serum had been accomplished with this array-based SPR system. The results were compared with enzyme-linked immunosorbent assay, a conventional immunological method. Array-based SPR showed more advantages in providing label-free and real-time detection. Additionally, the high sensitivity and specificity for the detection of TB infection showed its potential for future development of biosensor arrays for TB diagnosis

Phase and Amplitude Responses of Narrow-Band Optical Filter Measured by Microwave Network Analyzer

The phase and amplitude responses of a narrow-band optical filter are measured simultaneously using a microwave network analyzer. The measurement is based on an interferometric arrangement to split light into two paths and then combine them. In one of the two paths, a Mach-Zehnder modulator generates two tones without carrier and the narrow-band optical filter just passes through one of the tones. The temperature and environmental variations are removed by separated phase and amplitude averaging. The amplitude and phase responses of the optical filter are measured to the resolution and accuracy of the network analyzer

A systematic review and meta-analysis of guided tissue regeneration/osseous grafting for the treatment of Class II furcation defects

AbstractBackground/purposeThe purpose of this article was to conduct a systematic review of the clinical evidence on the efficacy of guide tissue regeneration (GTR) with/without osseous grafting (OG) in treating periodontal furcation Class II defects.Materials and methodsReports from randomized controlled clinical trials, with at least 6 months follow-up, comparing open flap debridement (OFD); GTR, and GTR + OG were located from various sources. Sources included the electronic databases of Cochrane Oral Health Group specialist trials register, MEDLINE, and PubMed; in addition, journal archives were hand-searched. Trials up to and including March 2012 were included. Using the PICO (Patient or Problem, Intervention, Comparison, and Outcome) question format, data from eligible articles were extracted and meta-analyzed. The outcomes measures were furcation closure rate, vertical/horizontal bone fill (re-entry), and vertical/horizontal attachment level gain.ResultsThe meta-analysis showed that the GTR and GTR + OG groups obtained greater furcation closure rate, vertical/horizontal bone fill, and vertical/horizontal attachment level gain than the OFD group in mandibular molars. The GTR group obtained greater vertical/horizontal bone fill and vertical attachment level gain than the OFD group in maxillary molars. The GTR + OG group achieved better clinical outcomes than the GTR group did in all the comparing outcomes in mandibular molars.ConclusionGTR technique seemed to be more effective than OFD for resolving Class II periodontal furcation defects, and the GTR + OG technique showed even better clinical results. The outcomes were better for mandibular molars than for maxillary molars