PRODUCTION TECHNOLOGY UNCERTAINTY AND THE OPTIMAL LOCATION OF THE FIRM*

ABSTRACT This paper investigates the implication of production-technology uncertainty for the exclusion theorem. The paper presents the result that the risk-averse firm facing production technology uncertainty prefers an intermediate location to avoid risk under certain conditions. The firm chooses an intermediate location (over a corner location) particularly if its degree of risk aversion overwhelms the inherent convexity of profit with respect to location. The latter depends, in turn, on the structure of production technology characterized by the elasticity of substitution and returns to scale parameters.     

Traditions and transitions in Korean bronze technology

Metallurgical examination of Korean bronze artifacts shows that a technical tradition based on casting and use of leaded high-tin alloys was established in Korea at the early stages of bronze use. After the subsequent discovery of quenching methods that suppress formation of the brittle δ phase, new thermo-mechanical techniques were introduced between the 7th and 10th centuries AD. Lead-free alloys were used, and tin contents near that of the peritectic point in the Cu–Sn phase diagram were chosen. Leaded high tin alloys continued in use, but only in cast objects, and with significant composition variation. The unique conditions during the time of innovation suggest that the transition to new metallurgical techniques was gradually achieved through domestic technical innovation inspired by external influences.     

Transitions in cast iron technology of the nomads in Mongolia

Metallurgical study of seven cast iron artifacts recovered from sites of the former Xiongnu (BC 3rd to AD 1st), Turk (AD 6th to 8th), Khitan (AD 10th to 12th), and Mongolian empires (AD 12th to 15th) shows that the earlier Xiongnu and Turk artifacts were made of cast iron alloys of near eutectic composition. The later Khitan and Mongol objects had greatly reduced carbon content in the range of ultrahigh carbon steel rather than cast iron, and contained more than 0.5 mass % silicon as an alloying element. Inclusions high in sulfur, phosphorus or silicon are also present. These differences suggest that Mongolia experienced a technical transition a few centuries before the establishment of the Mongolian empire, which is in agreement with some written accounts. The microstructures of the cast iron artifacts are compared with the related archaeological and documentary evidence. The results suggest that the use of fossil coal in smelting and the state policy of controlling iron production were the major factors responsible for the transition.     

Technological traditions inferred from iron artefacts of the Xiongnu Empire in Mongolia

Iron objects excavated from sites of the Xiongnu Empire (3rd century BC–2nd century AD) in Mongolia have been examined using optical and scanning electron microscopy. The results show that the Xiongnu iron tradition may be characterized by the use of low carbon iron and carbon control by carburization. Cast iron was also used in the Xiongnu Empire, but only in very limited applications and with no convincing evidence of its use for the production of low carbon iron. The Xiongnu iron technology seems to have been established on the basis of the bloomery technique, without much influence from the Chinese style of technology, based on cast iron.     

Palaeopathology in Britain: a critical analysis of publications with the aim of exploring recent trends (1997–2006)

This study collects data from three major journals and analyses them in order to assess the recent (1997–2006) nature of the study of palaeopathology within Britain. It considers the types of study published (case, population or method), whether findings are integrated with other data, the particular ‘theme’ that is considered (diet, activity patterns, etc) and the particular pathological condition focused upon (metabolic, dental, etc). The findings show there is a move away from the traditional case study and an increase in the acknowledgement of the value of integrating data with wider information. There is also a bias towards certain ‘themes’ and pathologies, reasons for which are discussed. Copyright © 2009 John Wiley & Sons, Ltd.     

A preliminary study on the role and implication of plate-type iron artifacts in the ancient iron technology of Korea

Special iron objects in the form of a narrow plate with a fan-shaped blade on one or both ends, but with a substantial variation in shape and size, have continually been excavated from ancient historical sites located in the southern part of the Korean peninsula. The frequency and abundance of their excavation imply that they must have played a crucial role in the initial shaping of the Korean iron industry. Little is known, however, of their intended purposes or the exact engineering processes applied in their production. Speculation suggests that they might have been used as currencies or intermediate materials for the making of finished products. This study examined the microstructures of three such iron objects from the Korean Three Kingdoms Period (ca. 300–600 AD). It was determined that they were made of low carbon iron generally containing a number of non-metallic inclusions, with hints of surface carburization particularly at the ends of the plates. These results reveal the likely presence of an iron technology based primarily on the bloomery technique as opposed to the Chinese style of iron-making based on cast iron technology, which was also in use in ancient Korea.     

Revisiting the South Korean developmental state after the 1997 financial crisis

This study reassesses the conventional wisdom surrounding the developmental state of South Korea (hereafter Korea) since the 1997 Korean financial crisis. The conventional wisdom is that, as a result of the continued structural reforms prompted by the crisis, the Korean developmental state, inherently characterised by active or direct state intervention, strong economic and industrial policies, the chaebol-oriented economic policy, and labour exclusion, has finally begun to dissolve in earnest. In this study, we have considered whether that is really the case and also which theoretical implications can be drawn from this consideration. Analysis of the Korean developmental state following the 1997 crisis has indicated that, quite contrary to conventional wisdom, the developmental state has continued to prevail as a core policy framework of the Korean administrations even after the crisis. There is no doubt that the continued structural and market reform after the crisis certainly undermined the Korean developmental state to a certain degree, but that does not mean the beginning of the end of the Korean developmental state at all. For much evidence strongly indicates that the Korean developmental state still remains intact and strong despite the structural reforms, on account of the successive Korean governments’ assiduous and deliberate efforts to maintain and reinforce it. Even after the crisis, the Kim Dae-Jung and post-Kim regimes have hardly abandoned many of their market interventionist policies. Such market interventionist policies, which were routinely practised under the military regime in the 1960s and 1970s, diametrically contravene the argument that the Korean developmental state has begun to dissolve as a result of structural reform after the 1997 crisis. Contrary to conventional wisdom, the Korean developmental state persists as usual. All this information, then, suggests that path dependence is in action in the case of the Korean developmental state, and this suggests a further hypothesis that the Korean developmental state is very likely to persist in the future as well, despite increasing globalisation pressure, given the strong path dependence.     

Large-scale 2nd to 3rd century AD bloomery iron smelting in Korea

Iron production in Korea has traditionally been seen in the shadow of developments in cast iron technology in China, with limited indication for a northern influence via Russia’s Maritime Province. The possibility of the existence of bloomery iron production in ancient Korea has been little explored, and relevant discussion is fraught with speculations based primarily on the early use of cast iron. The recent excavation of a site in South Korea recovered substantial amounts of slag providing direct evidence of bloomery smelting. The accelerator mass spectrometric dating of burnt wood from inside one of the slag pieces showed that the site was in use in the early 3rd century AD or earlier, which is in agreement with the assessment based on ceramic typology. The traits of a bloomery process evident in the slags’ microstructure, shape, composition and excavation context are discussed along with the implications for historical iron technology in Korea, where cast iron and the influence from China have been overly emphasised.