Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Macroeconomics
A Demand And Supply Game Exploring Global Supply Chains, Bei Hong
A Demand And Supply Game Exploring Global Supply Chains, Bei Hong
Research Collection School Of Economics
In this article, the author describes a classroom experiment in which participants make decisions to achieve the lowest-cost production. Student volunteers acting as smartphone companies are provided with confidential information representing their own cost of production and are asked to make trade decisions to form a supply chain at the lowest possible cost. This interactive classroom experiment facilitates an understanding and appreciation of the basic demand and supply model. Students also explore the motivations, facilitators, and impediments of global supply chains. Suggestions are made to expand the game by incorporating more sophisticated models of the global supply chain, and also …
Uncertainty, Depreciation And Industry Growth, Roberto Samaiego, Juliana Yu Sun
Uncertainty, Depreciation And Industry Growth, Roberto Samaiego, Juliana Yu Sun
Research Collection School Of Economics
When investment is irreversible, firms invest only when the mismatch between their productivity and their capital stock is large. This suggests that two factors should be related to the frequency of mismatch: volatility and capital depreciation. A canonical model of industry dynamics with investment irreversibility displays slow growth in times of high uncertainty, and decline is particularly pronounced in industries where capital depreciation is rapid. A differences-in-differences regression using industry growth data from a large sample of countries supports this result.