Stability of the Demand for M1 and Harmonized M3 in Finland

We derive a theoretical model for the demand for money using the money-in-the-utility-function approach. The steady-state – utility function – parameters of the model of narrow money (M1) estimated with cointegration techniques are stable over the foreign exchange rate regime shift; whereas in the model of harmonized M3 (M3H) they are not stable. The theoretical model fits the M1 data. The adjustment cost parameters of the M1 model describing the dynamics of the demand for money are stable over the sample period. The adjustment cost parameters of the M3H model are not stable. These results suggest that from the Finnish point of view M1 would be a more appropriate intermediate target for monetary policy than harmonized M3.money-in-the-utility-function model; structural breaks; demand for money; narrow money; harmonized M3

On the Estimation of Euler Equations in the Presence of a Potential Regime Shift

The concept of a peso problem is formalized in terms of a linear Euler equation and a nonlinear marginal model describing the dynamics of the exogenous driving process. It is shown that, using a threshold autoregressive model as a marginal model, it is possible to produce time-varying peso premia. A Monte Carlo method and a method based on the numerical solution of integral equations are considered as tools for computing conditional future expectations in the marginal model. A Monte Carlo study illustrates the poor performance of the generalized method of moment (GMM) estimator in small and even relatively large samples. The poor performance is particularly acute in the presence of a peso problem but is also serious in the simple linear case.peso problem; Euler equations; GMM; threshold autoregressive models

Labour and product market competition in a small open economy, Simulation results using a DGE model of the Finnish economy

Using the DGE model of the Finnish Economy (the ‘Aino’ model), we study the response of the economy to reforms in both labour and product markets. The reforms are two-fold. We assume that the wage mark-up, ie the monopoly power of wage-setters is gradually reduced by 5 percentage points. At the same time, the degree of competition is increased, ie price margins are exogenously reduced by 2 percentage points. These reforms imply a very favourable outcome of the economy. Both consumption and employment in-creases permanently and the reforms are welfare enhancing. Public balances improve giving room for 1.5 percentage point cut in income taxes. Our simulation exercises clearly demonstrate that such reforms may help in financing the future fiscal burden of an ageing population.competition; dynamic general equilibrium; public finance

Towards Agile Workforce – Case Study Research in Three Companies

Many companies today face a highly turbulent and volatile environment caused by intense foreign competition, rapid technological change, shorter product life-cycles, and customers demand- ing more customized products. Several strategies have been developed to deal with unpredictability in the environment. Agility and agile methods have been widely accepted as a new competitive concept in many countries, including Finland. However, the understanding of how to build agile organizations remains weak. The thesis provides initial empirical evidence to better understand essential elements of agile workforce and their relationship with organizational agility. More specifically, the research aims to understand and describe the concept of workforce agility in the selected case companies. The second goal is to discover the management practices, methods and tools that the case companies have adopted in order to enable and support the actions of an agile workforce. The thesis employs qualitative research methods with empirical approach doing semi- structured interviews in case study companies and conceptual approach using previous academic research. The case study companies are OP, DNA and Alma Media. The phenomenon of developing an agile workforce is rather new in large previously traditional organizations in Finland. Consequently, the study is exploratory by nature and aims to increase familiarity of the phenomenon in the Finnish context. The different cases were studied through interviews with managers that have been in a superior decision-making position and responsible for the change process, and managers or employees that have participated the implementation of the change process. Also, a HR specialist from Vincit was interviewed for her expertise on enterprise agility. According to the findings employees’ agile capabilities and attitudes towards agility are important factors when transforming towards enterprise agility. Findings show that companies that aim to make their organization more agile face two kinds of challenges. Firstly, companies must be able to arouse excitement and interest towards agility among employees. The second challenge concerns enabling agile work and managing the frustrations that arise. To deal with these challenges case companies employed similar practices, tools and methods that enable change management, change attitudes and culture, increase internal communication, knowledge sharing and cooperation; support empowerment and work organization, and promote new work methods and training

Short Subjects: Collecting at the 1982 World\u27s Fair

When the World\u27s Fair came to Tennessee (1 May-31 October 1982), it brought an opportunity for the staff of the McClung Historical Collection of the Knoxville-Knox County Public Library to collect small, ephemeral fair-related items. There is a scarcity of such items from the city\u27s early exposition experiences--the Appalachian Expositions of 1910 and 1911 and the National Conservation Exposition twenty years later. This led to thoughts on the needs of future researchers and how easily similar requests might be met with relatively little effort in the present

Accountability without hierarchy: How to engage and commit employees to decisions without enforcing authority.

Traditionally hierarchy and structure has determinate how organization create and implement decisions, but because of the modern business environment organizations have to adopt to more flexible and agile way of working, often by flattening the hierarchy. Since lack of structure leads often to decreasing accountability, commitment and engagement, this thesis focus on how these attributes can be harnessed in this new environment. This is observed by a retrospective analysis data of a start-up organization’s behavior, which they have recorded digitally on their own platform. The measured attributes: engagement and commitment are regarded by research highly important in different phases of decision-making from designing a decision to implementing it. Problem with studying it retrospectively is that individuals have a bias on remembering their own logic and behavior. This quantitative study focus on analyzing records of this behavior rather than memories of it to eliminate this bias. Statistical correlative analysis of these data records indicate that there is negative correlation with being accountable to oneself and committing in doing one’s own actions, more precisely individuals were more committed to action when they were accountable for someone else. Also the statistic shows that individuals who were in active role in a decision were more committed to it. Thirdly the relationship of general engagement and activity in a decision and its effect on individuals’ commitment was analyzed, this showed some correlation, but because of the small sample size and spread of data, this result can’t be accepted as scientific significant.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format