Towards Agricultural Policy 3.0 – an agenda for agricultural research

This article reviews the development from market‐based support measures (‘Agricultural Policy 1.0’) towards direct and decoupled payments (‘Agricultural Policy 2.0’) which are increasingly justified by environmentally friendly practices (‘Agricultural Policy 2.1’) to which payments are bound. It describes frequent problems connected with today's agri‐environmental programmes, particularly non‐compliance and a too indirect link between practices paid for and environmental effects. Other programmes have started to pay farmers more directly for environmental outputs on their fields, such as the number of valuable plants on their grassland. Transaction costs for the administration and control of these programmes have been shown to remain at an acceptable level, so that such output‐related policies may be effective and promising options. It is suggested to direct the work of agricultural researchers, including economists, into looking for a stronger link between environmental outputs and public support, something that could be termed Agricultural Policy 3.0. This could lend some more visibility, relevance and attractiveness to our discipline .     

Moderate Rent Controls: A Microeconomic and Public Choice Analysis

Why do people vote for (and against) moderate rent controls? The microeconomic effects of rent controls are complex–they affect both renters and homeowners in many ways, creating a complicated pattern of winners and losers. Renters stand to gain initially from the controlled rents, but competition for scarce housing dissipates these gains. Homeowners are affected by changing housing demand patterns and shifts in property tax burdens. An econometric analysis of the 1980 Seattle, Washington rent control referendum supports the conclusion that voters recognized the microeconomic gains and losses and voted accordingly on this issue. Use of census tract data makes this public choice analysis particularly strong compared to other studies that aggregate voters at the city or county level, possibly missing important intrajurisdiction voting patterns.     

Rockets and feathers meet markup margins: Applications to the oil and gasoline industry

This article investigates the existence of asymmetric price transmission between crude oil, rack (wholesale) and retail gasoline prices. A threshold cointegration technique is used, with regime switches being triggered by the size of the markup margin. There is consistent evidence of band‐TAR in which the crude, rack and retail prices are free to diverge until the markup margin is squeezed or stretched beyond a lower or upper critical threshold. This finding indicates that abnormally high markup margins cannot be sustained, which provides evidence against market power exertion. The threshold error correction models indicate that there is no systematic relationship between the speed of adjustment back to the long‐run relationship and the markup margin, which rules out the existence of “rockets and feathers.”     

Factors contributing to injury severity in work zone related crashes in New Zealand

Roadworks take place frequently on existing roads in New Zealand. The adverse effects of poor road conditions and reduced road width due to the presence of a work zone on the safety of road users and workers at the work zone have been a matter of concern. Several studies have been conducted to examine the risk factors contributing to the occurrence of road crashes in work zones in different countries. Slow-moving and stopped vehicles near work zones have been found to be the primary cause of crashes and casualties in the work zones. Excessive speed of passing traffic has also been recognized as a crucial factor contributing to work zone related crashes in New Zealand. This study examined the effect of possible risk factors contributing to severe injury and fatality in work zone related crashes in New Zealand. A multinomial logistic regression model was established to determine the association between crash severity and factors such as road environment, vehicle attributes, driver behavior, and crash circumstances, based on the information available on 453 road crashes during the period from 2008 to 2013. The results indicated that the time period, vehicle involvement, and presence of vulnerable road users were the factors that determined the crash severity in work zones. This implies that improvements are required in traffic control and management measures in work zones to enhance road safety in the long run.     

OECD’s interim economic outlook,March 2017

The OECD’s overall projection for the global economy is for a modest pick-up in global growth. The bad news is that this remains too slow to make good on commitments and expectations, and has fragile foundations of sluggish productivity growth and rising inequalities. Further, a range of financial vulnerabilities have built up, and there is the threat of rising trade protectionism. To grow the global economy and share the prosperity, we need to introduce fiscal initiatives using the fiscal space gained by low or negative interest rates. These combined fiscal-and-structural initiatives to boost inclusive growth can support demand in the near term but also will address medium-term supply issues.     

RATIONAL TIMING OF CALLS OF CONVERTIBLE PREFERRED STOCKS

Conversion-forcing calls of convertible preferred stocks are re-examined focusing on the value of the conversion option impounded in the preferred price. This amount represents the preferred shareholder wealth potentially transferable to common stockholders. Capture of this wealth underlies the theoretical motivation for calling and forcing conversion as soon as possible. Most of the preferred issues examined exhibit nonpositive average option values throughout all but short periods; hence, no wealth transfer opportunity exists for immediate calls. Issues that exhibit positive option values are called quickly. In contrast to interpretations that have persisted for over fifteen years, our results reveal no substantial delays in calling convertible preferred stocks.     

Connections: Integrated Meanings of ATV Riding among Club Members in Maine

Off-highway vehicle (OHV) riding is one of the fastest growing recreation activities in the United States. Little research has examined the nature of recreational activity from the perspective of all-terrain vehicle (ATV) riders. Understanding leisure and recreation activity involves exploring how people interpret experiences and how experiences are viewed as meaningful. Nineteen semi-structured interviews with members of ATV clubs in the state of Maine provided data for analysis. The three themes that emerged are connecting with nature, others, and self. This study demonstrates that ATV riders share meanings with other types of outdoor recreationists. Future research should expand into the social aspects of ATV riding and address meanings in the context of related constructs.     

Overview

Abstract

From the inception of Social Security in 1935 to the present time, a variety of measures for evaluating the actuarial status of the program have been employed. In addition, how the results of these measures have been displayed and interpreted has also evolved. These results have had great influence on policymakers’ and the general public’s perceptions of the financial condition of the program. This paper is intended to be an update of my earlier paper on the same subject, that is, a historical review of the development of these methods and their interpretation. The paper closes with suggestions as to future changes in the measurement methods, in the light of possible future changes in the program itself.     

Analyzing determinants of value creation in domestic and cross border acquisitions in India

The present study seeks to assess the acquiring company announcement gains, and determinants thereof, in domestic and cross border acquisitions in India. For this purpose, 268 acquisitions comprising of 202 cross border acquisitions and 66 domestic acquisitions constitute the sample set. Standard event study methodology has been employed for computing the announcement returns. Further, regression analysis has been conducted to assess the sources of wealth gains in domestic and cross border acquisition. The results of event study indicate that cross border acquisitions have created significantly higher wealth gains than the domestic ones. Further, the results of regression analysis highlight that cross border acquisitions, pursued by the acquiring companies in technology intensive sector, for the target companies also in technology intensive sector, create superior wealth gains. The reason being, such cross border acquisitions provide an opportunity to the acquiring company to combine and judiciously utilize intangible resources of both the companies on a broader scale across new geographies. Thus, the study contributes to the existing literature on internalization theory by extending it to an emerging market like India.