Wage Setting and Wage Flexibility in Ireland:Results from a Firm-level Survey

This paper investigates the wage-setting behaviour of Irish firms. We place particular emphasis on the use of flexible pay components and examine how these allow firms to deal with shocks requiring a reduction in costs without having to cut base wages. The results presented in this paper are based on a survey of Irish firms undertaken as part of the Wage Dynamics Network (WDN), which is a Euro-system research network. Our main findings are that almost two-thirds of firms applied at least some elements of the national wage agreement in place at the time of the survey (Towards 2016). Wage cuts or freezes were reported by a very small percentage of firms but changes in bonuses and other flexible pay components were relatively common if the firm needed to reduce labour costs. When asked about the relevance of different explanations for avoiding cuts in base wages, worker morale and loss of experienced workers were the main concerns. Regulatory or collective bargaining obstacles to wage cuts were the lowest ranked.

From Knowledge, Knowability and the Search for Objective Randomness to a New Vision of Complexity

Herein we consider various concepts of entropy as measures of the complexity of phenomena and in so doing encounter a fundamental problem in physics that affects how we understand the nature of reality. In essence the difficulty has to do with our understanding of randomness, irreversibility and unpredictability using physical theory, and these in turn undermine our certainty regarding what we can and what we cannot know about complex phenomena in general. The sources of complexity examined herein appear to be channels for the amplification of naturally occurring randomness in the physical world. Our analysis suggests that when the conditions for the renormalization group apply, this spontaneous randomness, which is not a reflection of our limited knowledge, but a genuine property of nature, does not realize the conventional thermodynamic state, and a new condition, intermediate between the dynamic and the thermodynamic state, emerges. We argue that with this vision of complexity, life, which with ordinary statistical mechanics seems to be foreign to physics, becomes a natural consequence of dynamical processes.Comment: Phylosophica

Can official advice improve mortgage-holders’ perceptions of switching? An experimental investigation. ESRI WP612, February 2019

Encouraging consumers to seek out and switch to lower-rate mortgages is important both for the individual consumer’s finances and for functioning competitive markets, but switching rates are low. We conducted an experiment with mortgage-holders to test whether official advice on how to select good mortgage products and how to navigate the switching process alters perceptions of switching. The experiment shows that the advice made consumers more sensitive to interest rate decreases and more favourable towards switching at longer terms. It also increased consumers’ confidence in their ability to select good offers. The findings imply that advice from policymakers can change perceptions and increase switching rates

Unidirectional light emission from high-Q modes in optical microcavities

We introduce a new scheme to design optical microcavities supporting high-Q modes with unidirectional light emission. This is achieved by coupling a low-Q mode with unidirectional emission to a high-Q mode. The coupling is due to enhanced dynamical tunneling near an avoided resonance crossing. Numerical results for a microdisk with a suitably positioned air hole demonstrate the feasibility and the potential of this concept.Comment: 4 pages, 6 figures (in reduced resolution

How Do Firms Set Prices? Survey Evidence from Ireland

Despite the importance of understanding and estimating the “stickiness” of prices of goods and services, empirical assessment of price setting behaviour by firms has remained relatively limited. This is the first paper to provide detailed information on the pressures, manner and frequency with which Irish firms adjust their output prices. Using survey information from almost a thousand Irish firms, we present a number of stylised facts on price setting behaviour. One of the first of these relates to the level of control firms have over their pricing strategy – the most common approach for firms is to set a price based on costs and a self-determined profit margin. However, one-third of firms said that their price was set primarily by following that of their closest competitors. The perceived intensity of competition was found to be one of the most significant factors in determining the price-setting approach and is also a central factor in determining price changes

Here today, gone tomorrow - adaptation to change in memory-guided visual search

Visual search for a target object can be facilitated by the repeated presentation of an invariant configuration of nontargets ('contextual cueing'). Here, we tested adaptation of learned contextual associations after a sudden, but permanent, relocation of the target. After an initial learning phase targets were relocated within their invariant contexts and repeatedly presented at new locations, before they returned to the initial locations. Contextual cueing for relocated targets was neither observed after numerous presentations nor after insertion of an overnight break. Further experiments investigated whether learning of additional, previously unseen context-target configurations is comparable to adaptation of existing contextual associations to change. In contrast to the lack of adaptation to changed target locations, contextual cueing developed for additional invariant configurations under identical training conditions. Moreover, across all experiments, presenting relocated targets or additional contexts did not interfere with contextual cueing of initially learned invariant configurations. Overall, the adaptation of contextual memory to changed target locations was severely constrained and unsuccessful in comparison to learning of an additional set of contexts, which suggests that contextual cueing facilitates search for only one repeated target location