RISK-EFFICIENT THRESHOLDS FOR PEST CONTROL DECISIONS

Risk and uncertainty are incorporated in an economic model to develop risk-efficient pest control advice similar in character to advice currently being offered by researchers to farmers. An example to illustrate computation of risk-efficient advice is presented and implications of risk aversion for efficient pest control advice and average pesticide use are examined.     

Cyclical analysis of key US aggregates during a period of macroeconomic stability (1953–1965)

The cyclical response patterns of major financial and macroeconomic aggregates to money shocks in the US economy is estimated. The data set is limited to the 1953–1965 period. The nature of this temporal window is rare in US economic history; growth was stable and noninflationary, and there was a marked absence of major downturns, inflationary expectations and supply shocks. These facts permit a more reliable portrayal of the dynamics associated with conventional monetarism than would otherwise be the case. Instead of a formal structural model, the methodology employs a four-variable vector autoregression. Variables are chosen according to the traditional IS-LM model and include money, the Index of Industrial Production, the CPI and various interest rates. While the method is a theoretical, the variables accord with accepted orthodoxy and the results allow theoretically, plausible interpretation. Significant patterns of persistence are found in major macrofinance aggregates over the period. Money shocks produce peaks at eight, twelve, and twenty-four months for interest rates, the IIP, and the CPI, respectively. We find the liquidity effect dominated by a short-term income effect. The Fed appears to have engaged in significant monetary accommodation over the period. A stable Phillips curve tradeoff is evident. Finally, we find the conventional upward-sloping yield curve replaced by a humpshaped configuration about eight months after a money-induced shock to aggregate demand.     

An Alternative View of Citation Patterns of Quantitative Literature Cited by Business and Economic Researchers

Using nationally representative data, the authors examine the effects of preprofessional education on the earnings of lawyers. They specify and estimate a statistical earnings function on the basis of well-established theory and principles. Along with standard control variables, categorical variables are included to represent graduate degrees in addition to the law degree and an assortment of undergraduate major fields. Holding a Ph.D. or M.B.A. degree, with the law degree, is associated with significantly higher earnings in some sectors. Lawyers with undergraduate training in economics earn more than other lawyers, ceteris paribus, and economics is the only undergraduate field associated with earnings that differ significantly. The available evidence supports the hypothesis that economics training increases a lawyer's human capital compared with other undergraduate majors.     

Implementation of a System Approach for Enhanced Supply Chain Continuity and Resiliency: A Longitudinal Study

Researchers and practitioners frequently point to inventory as a necessary component of an effective supply chain strategy. However, an undisciplined or ineffective approach to inventory can have a detrimental impact on an organization and its entire supply chain. When making inventory decisions, firms must ensure that the selected approach “fits” the overall supply chain strategy. While such an assertion seems intuitive, there is a need for empirical validation. We seek to contribute to this important body of research by investigating the impact of improved strategic alignment of inventory on resiliency and continuity. More specifically, we investigate the impact of improved strategic fit by comparing two distinct approaches to inventory management within a service parts environment. We hypothesize that a well‐aligned approach to inventory management can enhance continuity and resiliency. We test these hypotheses via a longitudinal field study involving 10 United States Air Force (USAF) locations and two years of data (approximately 650,000 inventory transactions). Results from nine test locations and one control location suggest that a well‐aligned approach to inventory management is indeed effective in improving continuity and resiliency, thus enhancing service‐based strategies—in this case, the USAF's ability to be mission‐capable. While the results of the study are derived from the USAF, we believe the implications provide broader insight into the use of inventory as a means of realizing a strategic fit.     

Inter-Group Inequalities in Child Undernutrition in India: Group Analogue of the Gini Coefficient and Atkinson's Index

Studies of undernutrition in India (and elsewhere) have focused exclusively on interpersonal inequalities, and estimates of the magnitude of inter-group inequalities are unavailable. A focus on “horizontal”, or group-based, inequalities offers vital policy insights that would be lost in an approach based purely on interpersonal inequalities. We therefore apply the group analogues of Atkinson's index and the Gini coefficient to shed light on the disproportionate burden of undernourishment borne by rural and historically vulnerable caste groups. Furthermore, the prominent determinants of inter-group disparities are identified through Blinder–Oaxaca decomposition analysis. The paper calls for explicit targeting of backward castes across the country and improved inter-sectoral collaboration to ensure equitable access to education, health care and water and sanitation, particularly across underdeveloped regions.     

Blogging: A new play in your marketing game plan

The emergence, proliferation, and ubiquity of the Internet have not only transformed businesses, but also altered the relationship between businesses and the customer. Recent advances in technology have helped to migrate this relationship to an interactive level where technology contributes to brand building by creating and sustaining a long-term relationship with the customer. Media fragmentation and customer indifference to traditional marketing tools are forcing marketers to seek new opportunities so the marketing message not only captures customers’ attention, but also tries to engage them with the company. This paper discusses blogs within the context of creating this new, more enduring relationship with the customer. Blogs are discussed within the framework of Web 2.0, the next generation of the Internet, which is comprised of user-generated content and social computing. The use of blogs by several companies as tools to better engage the customer in the creation, delivery, and dissemination of marketing messages is also demonstrated.     

Individual versus group spot price forecasting in the international petroleum market: A case study

This paper utilizes the conventional statistical tests associated with the rational expectations hypothesis so as to compare the relative accuracy of individual versus group forecasting within the organization. In order to maintain comparability between forecasting regimens the study employs like information sets for the two prediction methods. Using the rational expectations tests as criteria, the statistical results show group forecasts inferior to individually produced predictions These findings imply that group-produced forecasting accuracy may be hampered by the psychological interaction associated with consensus behavior. Conversely, we find forecasting accuracy improves when predictions are elicited from individuals in an isolated laboratory-like setting.     

Derivatives Activity at Troubled Banks

Because of moral hazard associated with deposit insurance, troubled banks that have a relatively thin capital cushion to absorb losses have an incentive to take speculative positions. Thus, the prevalence of problem banks among those actively engaged in derivatives markets should be of concern to bank supervisors. However, we find no evidence that bank supervisors take into account, either favorably or unfavorably, the derivatives activities of troubled banks in their decisions to downgrade bank ratings or impose regulatory actions. The derivatives activity of troubled banks should raise the same concerns expressed about banks' on–balance-sheet positions, namely, that they may not be fully exploiting hedging opportunities or may be placing their remaining capital at risk, intentionally or unintentionally.     

Ultrasound technology for better beef price

Sluggish growth in per capita consumption and a downward pressure on beef price at the farm level has required producers to raise cattle that precisely target the meat attributes desired by consumers. Coupled with the consumers' preference for beef with lean tissue and less external fat, the beef packing plants have used the dualistic grading system that emphasizes leanness and palatability; both important to carcass prices. Ultrasound technology can help farmers to produce a carcass with an optimal mix of attributes such as marbling and muscling, and external fat. The results of this study show a high level of accuracy of ultrasound technology in predicting carcass attributes. An estimated hedonic regression model shows that the carcass attributes are reflected on the implicit beef price. Ultrasound technology helps producers to produce carcass with the desired attributes and thus obtain a higher price.