Stochastic modelling of herd behaviour indices

This paper proposes different diffusion processes to model herd behaviour indices such as the Herd Behaviour Index (HIX). These models arise by combining popular mean-reverting processes with simple algebraic functions mapping the definition domain of the underlying mean-reverting process to the unit interval. The so obtained Itô processes preserve, to some extent, the mean-reverting trend of the underlying process while satisfying the fundamental properties of the so-called herd behaviour indices. In a numerical study, we calibrate the different model settings to time series data for a period spanning from January 2000 until October 2009 and investigate their ability to predict the future behaviour of herd behaviour indices.     

Is Fiscal Policy Procyclical in the Euro Area?

We test the relationship between the cyclically adjusted primary balance and alternative indicators of cyclical conditions for the euro area and 18 OECD countries over the period 1970–2009. A countercyclical stance of discretionary fiscal policy is found during bad times after 1999 in the euro area as a whole and in a few member countries only (France, Ireland and The Netherlands). It is also associated with high public deficits or low public debts. There is no significant case of procyclical fiscal policy after 1999, neither in good times nor in bad times.     

The reluctance of construction purchasers towards project partnering

While the literature argues that there are several benefits for construction purchasers who join forces to co-develop the project with contractors and to increase cooperation between the various project stakeholders (construction partnering), little research has been done on the reasons for the lack of extensive diffusion of such methods in the construction industry. This paper aims at understanding the rationale behind the reluctance of construction purchasers for this coordination mechanism in France. In particular the paper investigates the impact of the characteristics of the project but also of the characteristics of the purchasing companies in their project procurement behaviour. The findings reveal that the characteristics of the purchasing companies in terms of purchasing strategy, structure and culture seem more explanatory of their procurement behaviour than of the project characteristics. The paper suggests that the lack of diffusion and understanding of construction partnering may be due to the resistance of purchasers who feel threatened by the structural changes it involves in their purchasing habits.     

An economic analysis of the possibility of reducing pesticides in French field crops

The paper aims to study the effects of reducing pesticide use by farmers in the arable sector in France and the feasibility of a policy target of reducing pesticide use by half. The originality of the approach is to combine statistical data and expert knowledge to describe low-input alternative techniques at the national level. These data are used in a mathematical programming model to simulate the effect on land use, production and farmers' income of achieving different levels of pesticide reduction. The results show that reducing pesticide use by 30% could be possible without reducing farmers' income. We also estimate the levels of tax on pesticides necessary to achieve different levels of reduction of pesticide use and the effect of an incentive mechanism combining a pesticide tax with subsidies for low-input techniques.     

Joint production under uncertainty and multifunctionality of agriculture: policy considerations and applied analysis

The impact of various policy instruments on the production ofenvironmental goods that are complementary to or competing withagricultural commodities is analysed in the light of the uncertaintyin output prices and farmers' risk aversion. Some theoreticalassessments are first summarised and then tested on a case studyconcerning beef and grassland biodiversity production in Montsdu Cantal, France. The results of simulations carried out bymathematical programming farm-level models show that joint commodityand non-commodity production is nearly independent of the degreeof farmers' risk aversion, and that commodity-linked policyinstruments are not suitable for the production of environmentalgoods even under uncertainty.     

Private Equity Finance as a Growth Engine: What It Means for Emerging Markets

Entrepreneurship has long been considered crucial for economic development. An important element of entrepreneurship is the willingness and ability to mobilize private capital from both domestic and foreign sources. The private equity sector in the Middle East and North Africa (MENA) illustrates the role that private capital can play in the development of emerging markets. Data on the employment generation and growth performance of private equity provide evidence that it is an important driver of economic growth globally. This paper draws on initial evidence from the MENA region to illustrate the sector's potential there and in emerging markets generally. It then recommends a new generation of reforms to fuel this growth engine. A survey of MENA’s private equity industry survey conducted for this paper assesses these developments and the sector's need for proactive reforms to support it. It also shows that international financial market interest in private equity finance does not seem to have abated with the recent market bust. The paper concludes by identifying priority areas for future policy and research. JEL Classification O160     

Agricultural Policies and Structural Change in French Dairy Farms: A Nonstationary Markov Model

The aim of this paper is to gain an understanding into how agricultural policies have affected structural change in the French dairy sector. A nonstationary Markov model is estimated using a Generalized Cross Entropy approach. Results show that while the price of cow's milk encourages farm growth, direct payments and quota restriction favor small farms. The price signal is a key factor of structural change. As a result, higher milk prices may accelerate the trend toward the further growth of dairy farms. Settlement policy and technical change seem not to slow this trend.     

The dark side of office designs: towards de‐humanization

Recent research on flexible office designs have shown that open‐plan and/or flex offices may not have the expected effects in terms of employees’ productivity, well‐being, job satisfaction, organizational commitment, and retention. In this article, we propose to consider that the feeling of de‐humanization may explain such dark side of office designs. Adopting a mixed methods approach, we administrated a quantitative survey to 534 employees working in a variety of office designs, and conducted 12 semi‐structured interviews among the respondents to the survey in order to investigate how they experienced their office designs, notably in terms of de‐humanization. Results showed that the three specific office designs under study (i.e. cell, open‐plan, and flex offices) are associated with different levels of de‐humanization and that this feeling of de‐humanization mediates their impact on employees’ job satisfaction, affective organizational commitment, extra‐role performance, psychological strains, and turnover intentions. Interviews’ analysis reveals three main mechanisms in the development of the feeling of de‐humanization in such office designs: a triple feeling of dispossession (of space, voice and professional mastery), a feeling of abandon and an injunction to adopt a modern behaviour.     

Why are social enterprises good candidates for social innovation? Looking for personal and institutional drivers of innovation

The last few years witnessed theoretical and practical contributions to the field of social innovation and social enterprise. However, analysis of the interplay between these two different realms is still limited. This article aims to fill some gaps in this respect. We deal with historical reconstruction of the concept of Social Enterprise and Social Innovation, and their conceptual premises. We consider the process of creation of social innovation in social enterprises. As members’ motivations, ownership rights and governance rules in social enterprises create a new relational context and new routines, which are germane to the production of social knowledge and deliberation, social innovation can be considered one of the main outcomes of this setting. Social motivations, collective action of a cooperative kind, multi‐stakeholder governance and socialization of resources, and their interplay are singled out as main drivers of innovation. Social innovation is seen as akin to novelty in social interaction, a non‐standardized and non‐standardizable outcome of the operation of this organizational form.     

Implementing optimal procurement auctions with exogenous quality

In this paper, we consider the implementation of the optimal procurement auction outcome when there is a trade-off between price and quality for the buyer. The quality proposals of the competing firms are assumed to be exogenous and common knowledge. After defining the optimal auction, we characterize the discriminatory first score auction and the modified second score auction implementing it when the buyer is assumed to have the same information as the firms. Then we consider an auction which requires no specific information from the buyer and show that a second score auction followed by a negotiation stage can implement the optimal auction outcome under this more realistic assumption. Received: 30 March 2001 / Accepted: 14 December 2001 I am grateful to the anonymous referees for comments on an earlier version of this paper. The usual disclaimer applies.