Investment and dynamic DEA

A dynamic version of data envelopment analysis (DEA) is developed in the present paper. Our model introduces investment in traditional DEA and imposes intertemporal cost minimization. Adding an intertemporal adjustment constraint into the cost minimization problem, we derive the relation between the DEA variables of the variable cost function and those of the primary production frontiers’ coefficients. The augmented DEA model can be solved using standard linear programming. This dynamic framework enables computing the production frontiers, measuring the productive efficiencies and evaluating the potential economies all in the presence of adjustment costs.

Designing a linear pension scheme with forced savings and wage heterogeneity

This paper studies the optimal linear pension scheme when society consists of rational and myopic individuals. Myopic individuals have, ex ante, a strong preference for the present even though, ex post, they would regret not to have saved enough. While rational and myopic persons share the same ex post intertemporal preferences, only the rational agents make their savings and labor supply decisions according to these preferences. Individuals are also distinguished by their productivity. The social objective is “paternalistic”: the utilitarian welfare function depends on ex post utilities. We examine how the presence of myopic individuals affects both the size of the pension system and the degree of redistribution it operates, with and without liquidity constraints. The relationship between proportion of myopic individuals and characteristics of the pension system turns out to be much more complex than one would have conjectured. Neither the impact on the level of pensions nor the effect on their redistributive degree is unambiguous. Nevertheless, we show that under some plausible assumptions adding myopic individuals increases the level of pension benefits and leads to a shift from a flat or even targeted scheme to a partially contributory one. However, we also provide an example where the degree of redistribution is not a monotonic function of the proportion of myopic individuals.      

The Clean Development Mechanism in a world carbon market

This paper discusses the role of the Clean Development Mechanism (CDM) in the market for carbon quotas and countries' commitments to reduce their carbon emission levels. We show that the CDM contributes to an efficient funding of clean technology investments in least developed countries. However, the CDM is not neutral on the global level of carbon emissions as it entices countries to raise their emission caps. The CDM may also make inappropriate the inclusion of any country that takes no emission abatement commitment. It can even make inefficient a country's decision to commit to an emission target. The implications of the presence of non‐additional projects are also analyzed.     

Corollaries of the collective: The influence of organizational culture and memory development on perceived decision-making context

The market-focused learning organization continues to attract attention in the marketing literature. Two central and interrelated aspects of collective learning are organizational culture and memory. The relationship between culture and performance has been demonstrated both theoretically and empirically. This study investigates the influence of culture and organizational memory development on perceptions of managers’ decision-making context. Findings suggest that both organizational culture and memory influence marketing managers’ perceptions of decision-making context. Specifically, managers in externally focused cultures tend to perceive a relatively higher proportion of strategic problems than managers in internally focused cultures, and managers in organic process cultures tend to perceive a relatively higher proportion of unstructured problems than managers in mechanistic cultures. The implications for managerial practice are discussed and avenues for future research outlined. Pierre Berthon is a professor of marketing at the School of Management, University of Bath, United Kingdom. Prior to taking up his present position, he was adjunct professor of marketing at Columbia Business School, University of Columbia, New York. His research interests are eclectic but focus mainly on the areas of management decision making, strategic modes of organization, electronic commerce, and interactive marketing. His work has been published in a wide range of journals, includingSloan Management Review, California Management Review, Journal of Business Research, Journal of Advertising Research, Business Horizons, Omega, andTechnological Forecasting and Social Change. He is coauthor of a textbook on electronic commerce (Electronic Commerce: The Strategic Perspective, published by Dryden). Leyland F. Pitt is a professor in the School of Marketing at Curtin University of Technology in Perth, Western Australia. He has also taught executive programs at the University of Chicago, Columbia University, and the London Business School. His current research focuses on marketing strategy and the marketing/technology interface. His work has been accepted for publication in such academic and practitioner journals as theCalifornia Management Review, Sloan Management Review, Columbia Journal of World Business, Communications of the ACM, theJournal of Advertising Research, theJournal of Business Research, andMIS Quarterly, of which he is also an associate editor. Michael T. Ewing is an associate professor in the School of Marketing at Curtin University of Technology. Before that, he worked for Ford Motor Company. He has taught in Australia, Hong Kong, Singapore, Malaysia, the Czech Republic, South Africa, and England. His research and teaching interests include marketing communications, E-commerce, and international advertising. Among others, his work has appeared in theAsian Journal of Marketing, Business Horizons, theJournal of Advertising Research, theJournal of Business Research, theJournal of Marketing Communications, and theInternational Journal of Advertising. He serves on the editorial review board of theJournal of Advertising Research.     

U.S. Monetary Policy since the 1950s and the Changing Content of FOMC Minutes

Content analysis is used to analyze 60 years of Federal Open Market Committee (FOMC) minutes. Since there is no unique algorithm to quantify content, two different algorithms are applied. Wordscores compares content relative to a chosen benchmark, while DICTION is an alternative algorithm that is specifically designed to capture various elements that capture the sentiment or tone conveyed in a text. The resulting indicators are then incorporated into a VAR. The content of FOMC minutes is found to be significantly related to the state of the economy, notably real GDP growth, and changes in the fed funds rate. However, the relationship between content and macroeconomic conditions changes after 1993 when minutes are made public with a lag. Both content indicators also suggest substantive changes in the content of FOMC minutes since the 1950s in terms of the FOMC's dovishness or hawkishness.     

A Case of Mistaken Identity? Measuring Rates of Improved Seed Adoption in Tanzania Using DNA Fingerprinting

Studies of improved seed adoption in developing countries are almost always based on household surveys and are premised on the assumption that farmers can accurately self-report their use of improved seed varieties. However, recent studies suggest that farmers’ reports of seed varieties planted, or even whether the seed is local or improved, are sometimes inconsistent with the DNA fingerprinting results of those crops. We use household survey data from Tanzania to test the alignment between farmer-reported and DNA-identified maize seed types planted. In the sample, 70% of maize seed observations are correctly reported as local or improved, while 16% are type I errors (falsely reported as improved) and 14% are type II errors (falsely reported as local). Type I errors are more likely to have been sourced from other farmers, rather than formal channels. An analysis of input use, including seed, fertiliser, and labour allocations, reveals that farmers tend to treat improved maize differently, depending on whether they correctly perceive it as improved. This suggests that errors in farmers’ seed type awareness may translate into suboptimal management practices. The average yield of seed that is correctly identified as improved is almost 700 kg per hectare greater than that of type I errors. This indicates that investments in farmers’ access to information, seed labelling, and seed system oversight are needed to complement investments in seed variety development.     

Using OLS to Estimate and Test for Structural Changes in Models with Endogenous Regressors

We consider the problem of estimating and testing for multiple breaks in a single‐equation framework with regressors that are endogenous, i.e. correlated with the errors. We show that even in the presence of endogenous regressors it is still preferable, in most cases, to simply estimate the break dates and test for structural change using the usual ordinary least squares (OLS) framework. Except for some knife‐edge cases, it delivers estimates of the break dates with higher precision and tests with higher power compared to those obtained using an instrumental variable (IV) method. Also, the OLS method avoids potential weak identification problems caused by weak instruments. To illustrate the relevance of our theoretical results, we consider the stability of the New Keynesian hybrid Phillips curve. IV‐based methods only provide weak evidence of instability. On the other hand, OLS‐based ones strongly indicate a change in 1991:Q1 and that after this date the model loses all explanatory power. Copyright © 2013 John Wiley & Sons, Ltd.