New development: Accounting recognition of public infrastructure—applying a practical control criterion approach

ABSTRACT

The accounting recognition of public infrastructure can be extremely complex. This article explores and discusses the key IPSAS definitions and reviews the national accounting frameworks of some countries as regards their criteria for recognizing these assets. The author makes an important contribution to public sector accounting research by presenting a new way of recognizing public infrastructure as an asset based on the control criterion.     

Opportunities for higher education: the ten-year effects of conditional cash transfers on upper-secondary and tertiary enrollments

This article investigates the effect of the conditional cash transfer program Oportunidades on rural enrollment/completion in higher education, ten years after the initiation of the program in Mexico. We use data from the International Food Policy Research Institute and employ a Regression Discontinuity approach. We find that Oportunidades eligible households had higher 2007 technical school (14–18 year olds) and college (39+) enrollment/completion relative to comparable non-eligible households. However, the program benefits are heterogeneous depending on school access. Accounting for access to schools, we find that the program also had positive effects for school enrollment/completion for upper secondary (14–18) and college (19–28, 29–38). Further, we find positive tertiary education benefits for individuals in treated households who were too old to qualify for benefits directly, indicating either positive externalities or complementarities for individuals residing in eligible households. Possible mechanisms are relaxing budget constraints, and changes in educational aspirations.     

Culture As A Moderator Of The Relationship Between Service Quality And The Tourist'S Satisfaction With Different Distribution Channels

The present research analyzes the influence of culture on the relationship between each of the dimensions of service quality and tourists' satisfaction with the distribution channel, differentiating between travel agencies and the Internet. More specifically, the research seeks to understand the influence of the cultural dimensions of uncertainty avoidance and individualism/collectivism on the relationship between each of the dimensions of service quality and satisfaction, depending on the medium through which the service is purchased. The sample was made up of 600 tourists. Of these, 300 tourists (150 Spanish and 150 English) had purchased hotel accommodation for their last holiday via a travel agency, and the other 300 (150 Spanish and 150 English) had purchased hotel accommodation for their last holiday via the Internet. The findings indicate that there are variations in the relationships between each of the dimensions of service quality and satisfaction, and that these variations are shaped by the cultural dimensions of uncertainty avoidance and individualism/collectivism.     

Price convergence in an online virtual world

This paper tests for the existence of price convergence using a unique data set from the largest online game, World of Warcraft. It provides a controlled setting without the usual obstacles that make testing price convergence difficult. These difficulties include trade barriers, transportation costs, imperfections and restrictions in capital markets, and differences in productivity growth. The data set consists of eight structurally identical copies, or worlds, of a virtual macroeconomy. We use the non-linear convergence test developed by Phillips and Sul (Econometrica 75(6):1771–1855, 2007), and find price convergence in all eight worlds. We further develop our own simple band of inaction test for price convergence, and under reasonable parameters find price convergence in all eight worlds.     

Maturity effects in the Mexican interest rate futures market

This study investigates the relationship between volatility and contract expiration for the case of Mexican interest rate futures. Specifically, it examines the hypothesis that the volatility of futures prices should increase as contracts approach expiration (the “maturity effect”). Using panel data techniques, the study assesses the differences in volatility patterns between contracts. The results show that although the maturity effect was sometimes present, the inverse effect prevails; volatility decreases as expiration approaches. On the basis of the premises of the negative covariance hypothesis, the study provides additional criteria that explain this behavior in terms of the term structure dynamics. © 2010 Wiley Periodicals, Inc. Jrl Fut Mark 31:371–393, 2011     

What level of decentralization is better in an environmental context? An application to water policies

This paper analyses the optimal division of environmental policymaking functions among the different levels of government. Using fiscal federalism theory, we identify the most appropriate level of decentralization in each case. The paper focuses on water resources policies, with an application to Spanish regions during the 1996–2001 period. A simulation allows the implementation of more efficient policies in the context of water resources. The results of the empirical exercise show that a decentralized scenario is preferred under strong differences among preferences.      

Must Sell

Why are moving sales a successful and widespread phenomenon? How can it be optimal for a seller to disclose her low valuation for the item to be sold? We propose an explanation based on the “lemons problem” in bargaining with asymmetric information about quality. Disclosing a low valuation signals that there are significant gains from trade, so that trade takes place when it wouldn't otherwise, and all agents are made better off.     

Modeling the International-Trade Network: a gravity approach

We investigate whether the gravity model (GM) can explain the statistical properties of the International Trade Network (ITN). We fit data on trade flows with a GM using alternative estimation techniques and we build GM-based predictions for the weighted topological properties of the ITN, which are then compared to the observed ones. Our exercises show that the GM: (i) may replicate part of the weighted-network structure only if the observed binary architecture is kept fixed; (ii) is not able to explain higher-order statistics that, like clustering, require the knowledge of triadic link-weight topological patterns, even if the binary structure perfectly replicates the observed one; (iii) performs very badly when asked to predict the presence of a link, or the level of the trade flow it carries, whenever the binary structure must be simultaneously estimated.