The modified second-round estimator in the general qualitative response model

This paper suggests a modification of the method of scoring in the general multivariate qualitative response model to attain simpler computation when there are many observations per cell. The paper shows that the proposed estimator is asymptotically efficient even in the cases when the generalized Berkson's estimator (see Amemiya, Journal of the American Statistical Association, June 1976) is not.     

On the transferability of the Asian rice green revolution to rainfed areas in sub‐Saharan Africa: an assessment of technology intervention in Northern Ghana

This article investigates the impact of technical intervention on the adoption of a set of improved rice production technologies, as well as on productivity and profit for smallholders in rainfed lowland areas in Northern Ghana. The key finding is that productivity and profit are significantly enhanced when modern varieties (MVs) and chemical fertilizer are adopted, coupled with water control techniques. This is essentially the transfer of the Asian Green Revolution to sub‐Saharan Africa. Such transfer, however, is not truly successful unless information about the use of MVs and fertilizer is directly disseminated by extension activities.     

Shared Renewable Resources: Gains from Trade and Trade Policy

This paper examines the effects of international trade and trade policy in a two‐country, two‐good model with an open‐access renewable resource that is internationally shared. We show that both countries may still benefit from trade when they specialize in the production of their comparative advantage good, although the shared resource is reduced by trade. In addition, we demonstrate that the steady state utility of a resource‐good importing country may be reduced by trade, even if it specializes in the production of a non‐resource good. Import tariffs and export taxes on a resource good may increase or decrease the shared stock level depending on the production patterns in a trading steady state. The trade policy is likely to be Pareto‐improving when the shared stock rises, while both countries may be made worse off by the trade policy when the shared stock falls.     

Valuing recreational fishing in Tasmania and assessment of response bias in contingent valuation*

We report results from contingent valuation studies in each of two Tasmanian fisheries that estimate the value of a day’s recreational fishing. Published studies estimating the economic value of recreational fishing in Australia and New Zealand are limited, although the economic and social benefits associated with this activity are sizable and the importance of understanding the behaviour of recreational fishers for the sustainable management of aquatic resources is well recognised. In our contingent valuation surveys, we use a double‐bounded version of the dichotomous choice question, which improves the statistical efficiency of the estimates relative to those based on a single dichotomous choice question. We test and control for response bias, in the form of anchoring and a shift effect, that may occur in data collected using a double‐bounded dichotomous choice (DBDC) elicitation format. We highlight the importance of identifying and correcting for response bias in DBDC models on a case‐by‐case basis. Our estimation results show that there is no significant difference in the willingness to pay for a day of recreational fishing across individuals who caught different number of fish in either fishery. This suggests that high and low catch fishers placed the same value on a day’s fishing.     

Quantitative easing and Japanese bank equity values

One of the primary motivations offered by the Bank of Japan (BOJ) for its quantitative easing program—whereby it maintained a current account balance target in excess of required reserves, effectively pegging short-term interest rates at zero—was to maintain credit extension by the troubled Japanese financial sector. We conduct an event study concerning the anticipated impact of quantitative easing on the Japanese banking sector by examining the impact of the introduction and expansion of the policy on Japanese bank equity values. We find that excess returns of Japanese banks were greater when increases in the BOJ current account balance target were accompanied by “non-standard” expansionary policies, such as raising the ceiling on BOJ purchases of long-term Japanese government bonds. We also provide cross-sectional evidence that suggests that the market perceived that the quantitative easing program would disproportionately benefit financially weaker Japanese banks. J. Japanese Int. Economies 20 (4) (2006) 699–721.     

Using a competency approach to understand host-country national managers in Asia

This study empirically explored host-country nationals (HCNs) in multinational enterprises (MNEs) using a competency approach. Participants consisted of 500 managers working for a leading Japanese retail MNE, with 100 each from Japan, China, Hong Kong, Malaysia and Thailand. The study highlighted three competency variables for 12 skills of those managers: (1) the level of competency demands, (2) the level of developed competencies and (3) the level of competency improvement needs as assessed by the difference between the levels of developed competencies and the levels of corresponding competency demands. Three conclusions were drawn: First, relationship skills are the most demanded and developed competency of HCN managers in Asia, while their levels tend to vary with Asian countries. Second, goal-setting skills are also very important competency demands but are insufficiently developed by HCN managers. Therefore, HCN managers need to improve their goal-setting skills to a great degree as a top priority. Third, interpersonal and behavioral competency areas of the 12 skills are more important demands for HCN managers than analytical and perceptual competency areas. Based on the empirical evidence obtained from this study, theoretical and practical implications were discussed.     

Third-Degree Price Discrimination in the Presence of Asymmetric Consumption Externalities

In this paper, we consider third-degree price discrimination in two markets in the presence of asymmetric consumption externalities; we establish that under plausible conditions, a firm reduces its price in the market with low price elasticity of demand. The firm can increase its profits by reducing the price for these consumers and enlarging the demand for other consumers, provided that positive consumption externalities exist. Moreover, we show that third-degree price discrimination enhances not only the firm’s profit but also total consumer surplus.