Implementing just and efficient decision-making

In an economy with one public good, one private good and quasi-linear utilities we explore decision-making mechanisms to non-cooperatively implement an efficient outcome. By auctioning the leadership role among agents, one implements egalitarianism, namely the efficient outcome that distributes equally the surplus available from an a priori given status quo. A refinement of this mechanism (so-called autioning the leadership with differentiated buds) allows us to implement an efficient anonymous and neutral outcome: it achieves egalitarianism above the Vickrey-Clarke-Groves decision.     

Nothing like the Enron affair could happen in France (!)

Abstract

This paper reviews the reactions of the French accounting profession and academia following the collapse of both Enron and Andersen. It considers policy statements and declarations on the part of the accounting profession, legislative changes, the general impact on university accounting education programmes and specific developments in accounting teaching at my own institution, HEC. It considers the value of using corporate scandals in the teaching process and claims that more accounting theory and ethical issues should be introduced in accounting educational programmes.     

Extent and possible causes of intrayear agricultural commodity price volatility

Wheat, corn, rice, soybeans, and cotton experienced higher volatility in the second half of the 2000s. For the sample at hand, the unit root tests only validate a new period of high volatility for wheat and cotton. If in the next couple of years however, corn, rice and soybeans maintain their higher volatility, a new period of high volatility may also be validated statistically. Regarding the factors driving the intrayear volatility GMM estimates show that “commodity market fundamentals” i.e., the stock‐to‐use ratio and to a lesser extent the degree of internationalization, are the most systematically statistically significant coefficients among commodities. Over time, consecutive low stock‐to‐use ratios and a thin international market provoke typically high volatility. Speculative activity and liquidity in the agricultural derivative market have a stabilizing effect on the spot price, if any. Finally, “common macro” factors significantly impact volatility, especially the volatility of petrol and of exchange rates; their dispersion importance over the sample is quite sizeable. However, it is difficult to establish a link between, on the one hand, loose monetary policy, business cycle and inflation, and, on the other hand, commodity price volatility, as the sign of the estimated coefficient changes depending on the commodity and the estimated elasticities are quite low.     

Implementing and interpreting indicators of core inflation: the case of France

This paper presents a comparison of alternative indicators of underlying or “core” inflation in the French case. Four broad measures are considered and implemented. The first two are inflation excluding food and energy, and the trimmed inflation indicator. We then implement two methods relying on time-series models: the Dynamic Factor Index and the structural VAR approach.  Each indicator stresses on a particular type of shock on the inflation rate, so that no simple ranking of the measures emerges. Combining the various indicators conveys valuable information for appraising short term inflation developments. As regards theoretical interpretation, no indicator is fully satisfactory, lacking an explicit representation of monetary policy. However, comparing forecast performance with respect to inflation provides some specific support in favor of trimmed mean indicators. First version received: January 2000/Final version received: March 2001     

Performance analysis for three pillars of sustainability

Journal of Productivity Analysis - Gross domestic product (GDP) has come under criticism as the only objective that countries should pursue for societal well-being. In this paper we apply an...     

Impact of lifestyle oriented-motivation and corporate social responsibility on multiadventure sports firms´ performance

International Entrepreneurship and Management Journal - The number of sports firms has grown in recent years, along with the emergence in this sector of so-called lifestyle entrepreneurs. However,...     

Hospital capacity in large urban areas: is there enough in times of need?

Excess capacity can be viewed as wasteful (an unnecessary cost) or as prudential (a ready source of supply). The role of excess capacity is an important issue at the individual firm level as well as at the community level. In this paper we explore hospital capacity for a sample hospitals operating in the 15 largest standard metropolitan statistical areas (SMSAs) in the U.S. during 2002. Using Johanson’s (1968, Production Functions and the Concept of Capacity, Namur, Belgium, Recherches Récentes sur le Fonction de Production (Collection, Economie Mathematique et Econometrie no. 2). [Reprinted in Finn R. Førsund (ed) (1987) The Collected Works of Leif Johanson, vol 1. Amsterdam, North-Holland, pp 350–282]) notion of capacity as the maximum rate of output possible from fixed inputs (i.e., without restrictions on variable inputs), we measure capacity in a frontier setting using directional distance functions. Rather than attempt to determine the “optimal” level of hospital capacity, we instead quantify capacity and capacity utilization rates at both the individual hospital and, by aggregating, the SMSA levels. After determining capacity and capacity utilization rates, we then introduce a model that calculates the changes in variable inputs that would be needed to utilize excess capacity. Finally, we introduce a simulation model that is used to examine whether each SMSA has enough “excess” hospital capacity to accommodate the loss of one of its five largest hospitals. The approach developed in this study should be of value to decision makers and planners in a variety of fields.     

Towards a Universal Pension Points System in France

Intereconomics - A specificity of the current French system is that a private sector worker is currently covered by two mandatory public pay-as-you-go (PAYGO) schemes: a general defined benefit...