TY - JOUR
T1 - The Complementarity and Substitutability Relationships between Information Technology and Benefits and Duration of Unemployment
AU - Lin, Winston
AU - Chou, Chia-Ching
N1 - Funding Information:
For constructive and useful comments and suggestions that considerably improved the paper, the authors are greatly grateful to the Editor-in-Chief, Professor James R. Marsden, and the anonymous referees of this journal. The first author thanks the Research Committee of the School of Management at The University at Buffalo, The State University of New York, for financial support. Y.B. Zhao and Ta-Wei Kao served in the capacity of research assistants for two years and contributed to data collection and empirical estimation. The authors bear the sole responsibility for any errors that remain.
Publisher Copyright:
© 2016 Elsevier B.V.
PY - 2016
Y1 - 2016
N2 - This paper aims to analyze the complementarity and substitutability relationships between information technology (IT) and unemployment benefits (B) and duration of unemployment (D), two important policy and macroeconomic variables, by using the partial adjustment (PA) valuation (PAV) approaches where the speeds of PA are fixed and time-varying. The proposed eight research models derived from the PAV approaches based on the theory of PA are fitted into a country-level panel data set covering the period from 1993 to 2008 for a sample of 12 countries and are estimated by the seemingly unrelated regressions (SUR) and nonlinear SUR (NLSUR) methods. The findings include: (i) the speeds of PA are dynamic and variable rather than constant, causing the fluctuations of the performance index over time; (ii) among the three production factors used, the traditional (non-IT) capital (Kjt) is found to exert the greatest impact upon the desired (true) output and, consequently, upon the performance index; (iii) B or D or joint B and D has the power to shift the speeds of PA in the countries considered; (iv) the impacts of B, D, and the combination of B and D upon the actual (observed) output and, hence, upon the business value of IT vary from country to country; and (v) all in all, the empirical evidence strongly suggests that the government policy of B, D, or B and D combined is good for some advanced developed countries (e.g., US and CN) but may be ineffective for some newly developed nations (e.g., Greece and Norway) in the presence of IT, and that the policy of joint B and D is good for all four advanced developed countries and five (Australia, Denmark, Norway, Portugal, and Switzerland) of the eight newly developed economies in the absence of IT.
AB - This paper aims to analyze the complementarity and substitutability relationships between information technology (IT) and unemployment benefits (B) and duration of unemployment (D), two important policy and macroeconomic variables, by using the partial adjustment (PA) valuation (PAV) approaches where the speeds of PA are fixed and time-varying. The proposed eight research models derived from the PAV approaches based on the theory of PA are fitted into a country-level panel data set covering the period from 1993 to 2008 for a sample of 12 countries and are estimated by the seemingly unrelated regressions (SUR) and nonlinear SUR (NLSUR) methods. The findings include: (i) the speeds of PA are dynamic and variable rather than constant, causing the fluctuations of the performance index over time; (ii) among the three production factors used, the traditional (non-IT) capital (Kjt) is found to exert the greatest impact upon the desired (true) output and, consequently, upon the performance index; (iii) B or D or joint B and D has the power to shift the speeds of PA in the countries considered; (iv) the impacts of B, D, and the combination of B and D upon the actual (observed) output and, hence, upon the business value of IT vary from country to country; and (v) all in all, the empirical evidence strongly suggests that the government policy of B, D, or B and D combined is good for some advanced developed countries (e.g., US and CN) but may be ineffective for some newly developed nations (e.g., Greece and Norway) in the presence of IT, and that the policy of joint B and D is good for all four advanced developed countries and five (Australia, Denmark, Norway, Portugal, and Switzerland) of the eight newly developed economies in the absence of IT.
M3 - Article
SN - 0167-9236
VL - 90
SP - 12
EP - 22
JO - Decision Support Systems
JF - Decision Support Systems
ER -
