Inflation, Investment Composition and Total Factor Productivity

This paper employs a dynamic stochastic general equilibrium model with a financial market friction to rationalize the empirically observed negative relationship between inflation and total factor productivity (TFP). Specifically, an empirical analysis of US macroeconomic time series establishes that there is a negative causal effect of inflation on aggregate productivity. Rather than taking the productivity process as exogenous, the model is therefore set up to feature an endogenous component of TFP. This is achieved by allowing physical investment to be channelled into two distinct technologies: a safe, but return-dominated technology and a superior technology which is subject to idiosyncratic liquidity risk. An agency problem prevents complete insurance against liquidity risk, and the scope for insurance is endogenously determined via the relevant liquidity premium. Since the liquidity premium is positively related to the rate of inflation, the model demonstrates how nominal fluctuations have an influence not only on the overall amount, but also on the qualitative composition of aggregate investment and hence on TFP. The quantitative relevance of the underlying transmission mechanism which links nominal fluctuations to TFP via corporate liquidity holdings and the composition of aggregate investment is corroborated by means of the quantitative analysis of the calibrated model economy as well as a detailed analysis of industry-level and firm-level panel data. Notably, the empirical findings are consistent with both the properties of the agency problem postulated in the theoretical model and its implications for corporate liquidity holdings and physical investment portfolios.

Inflation, Liquidity Risk and Long-run TFP - Growth

This paper demonstrates a negative relation between inflation and long-run productivity growth. Inflation generates long-run real effects due to a link from the short-run nominal and financial frictions to a firm's qualitative investment portfolio. We develop an endogenous growth model whose key ingredients are (i) a nominal short-run portfolio choice for households, (ii) an agency problem which gives rise to financial market incompleteness, (iii) a firm-level technology choice between a return-dominated but secure and a more productive but risky project. In this framework, inflation increases the costs of corporate insurance against productive but risky projects and hence a firm's choice of technology. It follows that each level of inflation is associated with a different long-run balanced growth path for the economy as long as financial markets are incomplete. Finally, we apply U.S. industry and firm level data to examine the relevance of our specific microeconomic mechanism. We find that (i) firms insure systematically against risky R&D investments by means of corporate liquidity holdings, (ii) periods of higher inflation restrain firm-level R&D investments by reducing corporate liquidity holdings.

The identification, characterization, and expression of truncated hemoglobin genes in the nitrogen-fixing actinorhizal symbiont Frankia

Using a molecular approach (PCR), a group II truncated hemoglobin (trHb) gene was identified in several diverse isolates of Frankia. An analysis of three draft genome sequences for Frankia isolates EAN1pec, Ccl3, and ACN14a also revealed the presence of second trHb, homologous to group I trHbs. Phylogenetic analysis suggested that the Frankia trHb genes were grouped based on their respective genotype and clustered closest to Mycobacterium trHb genes. Frankia strain Ccl3 was grown under a variety of environmental stimuli to evaluate the expression of trHbN and trHbO genes. Nitrogen status did not affect expression of either gene, while oxidative stress caused a decrease in expression levels for both genes. The expression of trHbO increased under low oxygen environments, suggesting a role in increasing respiration rates. The expression of trHbN increased in response to spontaneously generated nitric oxide, suggesting a role in the protection from reactive nitrogen species

Inflation, liquidity and innovation

This paper presents a simple model with financial frictions where inflation increases the cost faced by firms holding liquid assets to hedge risky production against expenditure shocks. Inflation tilts firms' technology choice away from innovative activities and toward safer but return-dominated ones, and therefore reduces long-run growth. The theory makes specific predictions about how the severity of this adverse effect depends on industry characteristics. These predictions are tested with novel harmonized firm-level data from 139 developing countries, overcoming small sample problems constraining previous work. The analysis finds that inflation affects the composition but not the overall quantity of investment. A one percentage point increase in inflation reduces the establishment-level probability of innovation by 4.3 percent but does not affect total investment. Moreover, innovating firms display a stronger dependence on liquid assets, which, in turn, are negatively related to inflation. Generalized difference-in-differences estimations corroborate the sector-specific predictions of the theoretical model

The Impact of Video Conference on Orthopaedic Resident Education: A Survey

Background: Covid and required social distancing has accelerated the use of video conferencing. We hypothesized that residents and faculty would be less receptive to the video lecture format and prefer traditional didactic methods. Methods: A 16-question anonymous survey was distributed nationally to orthopaedic residents and faculty. The survey collected basic demographic information such as, level in training, gender, and age. We then asked the respondent to rate their agreement or disagreement with 8 statements on a Likert scale (1-5) about video conferencing regarding orthopedic education. Likert scale responses were evaluated using basic descriptive statistics. Respondents were divided into groups of faculty and residents. Residents were subdivided into junior residents (PGY-1s and PGY-2s) and senior residents (PGY-3s, PGY-4s, and PGY-5s). A Wilcoxon rank sum test was used for the Likert scale type questions and a Fisher’s exact test was used for the pros/cons questions to evaluate for a difference in responses between groups. Results: A total of 123 residents or faculty responded to the survey. One was excluded because only the demographics section was completed, leaving 122 respondents. Respondents were found to prefer the traditional didactics compared to the new virtual format (p Conclusions: Orthopaedic residents and faculty do not prefer the new virtual didactic format compared to the traditional approach. Level of Evidence: Level IV Cross-Sectional Stud

Towards a Consistent Service Lifecycle Model in Service Governance

Introducing an SOA in a company brings new challenges for the existing management. Small loosely coupled services allow the Enterprise Architecture to flexibly adapt to existing business processes that themselves depend on changing market environments. SOA, however, introduces a new implicit system complexity. Service Governance approaches address this issue by introducing management processes and techniques, and best practices to cope with the new heterogeneity. Service lifecycle management is one aspect. Existing definitions of service lifecycles vary greatly.. In this paper, we compare existing service lifecycle approaches concerning defined phases and process. In particular, we challenge the purpose of the distinctions made between design time, runtime, and change time. Concluding, we propose a consolidated service lifecycle model for usage in Service Governance

The relationship among development skills, design quality, and centrality in open source projects

The paradigm of the Internet of Services envisions trade on a global service-enabled internet. Companies, which participate in this new world of services, face the challenges of changing market conditions, new competitive threats, and new legal regulations. Service-oriented Architectures (SOA) provide a promising way to address some of these challenges at the level of the company’s IT infrastructure. In order to guideline an enterprise’s organization and IT and ensure smooth operations, governance frameworks have been established. More specifically, IT Governance and recently SOA Governance have been introduced. The basic structure of IT Governance frameworks is applicable to an SOA. However, they lack functionality or applicability concerning SOA-specific challenges. Current approaches, which focus on mere SOA Governance, lack framework scope and are mostly driven by individual companies. This issue aggravates taking into account the shift to an Internet of Services. We identify key issues and provide initial insights on building blocks for a Service Governance Framework which enables operations for companies in a moderated service network. We discuss service life cycle phases, stakeholder roles, and management processes taking into consideration existing frameworks such as ITIL and CObIT as well as industry-specific approaches from companies such as SAP, Oracle, and HP

Effect of narrow-banded blue LED device on host plant settlement by greenhouse whitefly and currant-lettuce aphid

Manipulating phytophagous insects with light-based repelling techniques has shown its potential to be a useful tool in integrated pest management systems in the future. Underlying optical mechanisms can be applied in field and in protected cultivation, with reflecting materials or emitting light sources, such as LEDs. Many pest insects are characterised by their cryptic lifestyle to avoid intervening pest protection measurements. In addition, there is a high degree of resistance mechanisms against insecticides in certain species. The idea of most light-repelling techniques is to reduce the immigration and the settlement of pest species on hostplants before population growth even starts. We conducted experiments with narrow-banded blue LEDs arranged around the plants and emitting radiation towards the sky. For compact rosette Lactuca sativa and upright-branched Euphorbia pulcherrima, we tested the suitability of the measure on settlement of Trialeurodes vaporariorum in 2 choice experiments. In further choice experiments with reduced number of untreated plants, T. vaporariorum and Nasonovia ribisnigri were evaluated for the effect on hostplant settlement of the light barrier on lettuce plants under more practical conditions. The light barrier shows high repellent impact on hostplant settlement by greenhouse whitefly, independent of different plant architectures. The modified choice experiment showed strong decrease in hostplant settlement for greenhouse whitefly. For currant-lettuce aphid, tendencies are shown, but no statistical effect could be demonstrated. Possible applications and differences between the insect species used for the experiments are discussed