Abstract: Publication date: Feb 2022 Source:Advances in Economics and Business Volume 10 Number 1 Oscar Orellana and Raúl Fuentes In this study, we propose a mathematical theory for building neoclassical production functions with homogeneous inputs in both aggregate and per capita terms. This theory is based on two concepts: Euler's equation and Cauchy's condition for first-order partial differential equations. The analysis is restricted to functions that exhibit constant returns to scale (CRS). For the function to meet the law of diminishing marginal returns, we present the necessary and sufficient conditions to be satisfied by the curve that defines Cauchy's condition. In this context, we also discuss the Inada conditions. We first present functions that depend on two inputs and then extend and discuss the results for functions that depend on several inputs. The main result of our research is the provision of a clean and clear theory for constructing neo-classical production functions. We believe that this result may contribute to closing the huge methodological gaps that separate schools of economic thought that defend or reject the use of production functions in economics. PubDate: Feb 2022
Abstract: Publication date: Sep 2021 Source:Advances in Economics and Business Volume 9 Number 2 Habiba Abou-hafs and Fadila Boutora Entrepreneurial intent is a determining factor in entrepreneurship. It precedes the behavioral act of developing one's own business. Developing entrepreneurial intent requires gathering a number of necessary but not sufficient conditions. The present study will try to identify, based on a quantitative study conducted among 120 students involved in entrepreneurial competition projects organized in the city of Agadir (Morocco), the determinants of entrepreneurial intent. The arithmetic mean of 15 variables identified by literature review and interviews was calculated. The (t) test, principal component and regression analysis were used to classify, categorize and measure the links between the variables. The results indicate that the top five entrepreneurial intent determinants are Self-confidence, Self-Efficacy, Motivation, Technical and Technological Skills, Goal of fulfillment. The most important category of determinants is related to the attitudes and behaviors of students compared with the category of technical and professional factors and also the category of factors related to the family and social environment. These results can contribute to the entrepreneurship development in the city of Agadir (Morocco) by helping students to create their own business and therefore minimize unemployment. PubDate: Sep 2021
Abstract: Publication date: Sep 2021 Source:Advances in Economics and Business Volume 9 Number 2 Jon P. Nelson This paper extends an earlier study to compare two methods for meta-analysis of economic data: fixed-effect models and random-effects models. The models differ fundamentally in the ability to generalize beyond the sample in question. Both models are applied to estimates of pass-through rates for excise taxes on alcohol beverages. Using best-set data from 30 primary studies, weighted means are first reported and compared against a fully-passed tax or rate of unity. Dispersion and heterogeneity statistics are used to assess the performance of each model. Second, means and dispersion statistics are reported by subgroups for country source, beverage (beer, wine-spirits), and published status. Third, tests are conducted for publication selection bias using funnel plots and regression asymmetry tests. Fourth, three procedures are undertaken to reduce selection bias: trim-and-fill; cumulative meta-analysis; and meta-regressions. Three conclusions are reached in the paper. First, average pass-through rates are approximately unity regardless of beverage. Primary researchers should compare estimated rates against this value. Second, a random-effects model is more appropriate for these data, reflecting highly diverse estimates of pass-through rates. Third, greater attention needs to be given to the choice of model for meta-regressions in economics and related disciplines. PubDate: Sep 2021
Abstract: Publication date: Oct 2021 Source:Advances in Economics and Business Volume 9 Number 3 Eddie G Walker II and Mikayla D. Jones Research has provided evidence for a relationship among donor perceptions of social responsibility, trust, commitment, and intentions to donate. One research area lacking is how donors and non-donors to an institution differ in those factors. Communication between an institution and stakeholders helps build understanding and support. One approach to communication strategies includes the varying involvement of the stakeholders. This study endeavors to accomplish two goals: 1) to fit the data from a purposive sample to a validated model; and 2) to examine differences between donors and non-donors on the factors within that model. Results indicated that the data from this case study fit the theoretical model. Also, while donors and non-donors defined the factors in the model in similar ways, there were differences between donors and non-donors related to the intensity of the relationships between factors. Donors demonstrated a stronger relationship between trust/commitment and commitment/intent than non-donors did. Non-donors demonstrated a stronger relationship between trust/intent than donors did. One implication of this study is that universities and athletic departments can use information from the results to aid them in communicating with donors and alumni during fundraising campaigns. Specifically, if you can communicate with stakeholders in a way that increases trust and commitment to the institution then they would likely strengthen the donation intentions of current donors and encourage non-donors to donate in the future. Future research can build upon this study by determining the effects that a stakeholder involvement communication strategy would have on non-donor donation intentions. PubDate: Oct 2021
Abstract: Publication date: July 2021 Source:Advances in Economics and Business Volume 9 Number 1 Rongyu Wang In this paper, we discuss some properties of optimal consideration set in binary state continuous-action rational inattention decision problems. First, we show that it is the form of the utility function that determines the form of posterior distribution, i.e. whether it is a binary distribution or a triple or quadruple distribution, etc. Besides, we will also show that the posterior distribution may not be resulted after information acquisition in some circumstances. Second, we show that the optimal consideration set is essentially the optimal action strategies. Therefore, without further conditions, the rational inattention decision model is unidentifiable. Third, in order to identify the rational inattention decision model, we introduce another condition to the model. The discrete actions after information acquisition that satisfy the endogenously-determined probability (optimal action strategies) should satisfy the properties of probabilities, and therefore the discrete actions should also follow an exogenous probability distribution. This idea is tested by an example with quadratic utility function. Through this example, we find that under this condition, the optimal consideration set can be identified. The elements in the optimal consideration set, or equivalently the discrete signals after information acquisition, exhibit a curve or curves. PubDate: July 2021
Abstract: Publication date: Dec 2021 Source:Advances in Economics and Business Volume 9 Number 4 Efendi The purposes of this research are: (1) to find types of costing of universities which apply financial management of public service agencies in vocational education that apply boarding school system, (2) to arrange the suitable process of business for improving its graduates' competence doing more practice, (3) to know cost driver to be controlled for improving the effectiveness and efficiency. The result of this research shows that: (1) development of costing model at Poltekpel Surabaya and ATKP Surabaya through cost reduction program on cost drivers can increase competitiveness and independence in exploring sources and composition of costs, (2) planning and budget of Poltekpel Surabaya and ATKP Surabaya not yet maximal in using performance-based budgeting system, (3) need to simplify the business process at Poltekpel Surabaya and ATKP Surabaya, to compete in providing services to the community, (4) the financial management system Poltekpel Surabaya and ATKP Surabaya is good, transparent and accountable, by the provisions of the legislation, (5) the need to explore sources of financing derived from the use of assets and grants, (6) with the development of the model can increase the effectiveness and efficiency at Poltekpel Surabaya and ATKP Surabaya. PubDate: Dec 2021
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