A Simple Model of Commodity Taxation and Cross-border Shopping

This paper sets up a simple model in which two countries, differing in geographical extent, engage in commodity tax competition originating in opportunities for cross-border shopping. The non-cooperative tax equilibrium and various coordination initiatives are examined in the benchmark model and in two model extensions incorporating (i) costs of transportation for goods and (ii) border inspection. Among the more surprising results are the following: with (i), pure profits accrue to sellers near the border, but subjecting them to tax may lower the country's total tax revenue; with (ii), the volume of cross-border shopping may well increase.
JEL classification : H 20; H 87; H 26     

Understanding attractiveness in business relationships — A complete literature review

The concept of attraction has received surprisingly little attention within business relationship research. Yet, recently, more and more authors have argued that attraction may contribute to the motivation and willingness of a buyer and supplier to engage in and develop a business relationship. However, the concept of attraction is relatively new and there have been diverse interpretations of it. This literature review collates those interpretations with the aim of enhancing current understanding and creating fundamental knowledge of the current streams of literature on the concept. In examining how the concept has been investigated, the paper aims to establish the direction that the understanding and use of the concept of attractiveness may take in the future in the context of business research. The literature review indicates that attraction has been used in three research areas to explain or resolve a particular construct: 1) attraction in the development of buyer–supplier relationships, 2) customer attractiveness to suppliers, and 3) attractiveness in portfolio and key account management. This literature review contributes to the understanding of how knowledge of the power of attraction could enrich the theory and practice of business relationships.     

Counting the costs: Denmark's changing migration policies

During the Danish local and national elections in November 2001, the scale, intensity and tone of the debates on migration took both national and international commentators by surprise. Within the first year of the new right‐wing government, supported by the influential Danish People's Party, Denmark has become one of the most exclusive and restrictive immigration regimes in Europe. This article takes a closer look at the recent politicization of migration issues in Denmark. While there is certainly concern with the compatibility of migrant ‘otherness’, in particular Islam, with Danish society and norms, then an equally, or even more central issue regards the ‘cost of migration’ for Danish social policy standards. Because of high unemployment rates, migrants and their descendants receive a relatively large part of Danish social contributions. This has raised the more general question of how to combine immigration with a tax‐financed universal welfare system where all have rights to full social benefits immediately upon arrival. The answer of the government has been to cut both sides of the equation by implementing stricter entry rules for family reunification and asylum‐seekers, as well as making a historical break with the principle of equal social welfare benefits for all legal residents. Lors des élections danoises locales et nationales de novembre 2001, l'ampleur, l'intensité et le ton des débats sur la migration ont surpris les commentateurs tant nationaux qu'étrangers. Au cours de la première année au pouvoir du nouveau gouvernement de droite, soutenu par le puissant Parti populaire danois, le Danemark a mis en place l'un des régimes d'immigration les plus fermés et restrictifs d'Europe. L'article s'attache à la récente politisation des questions de migration dans ce pays. Sans négliger le souci réel de compatibilité de ‘l'altérité’ des migrants, notamment l'Islam, avec la société et les normes danoises, il expose un problème aussi, voire plus crucial: le ‘coût de la migration’ selon les bases de la politique sociale nationale. Compte tenu des forts taux de chômage, les migrants et leurs descendants reçoivent une part relativement importante des contributions sociales danoises. D'où une question plus générale sur la façon de combiner immigration et système social universel financé par la fiscalité, où tous ont droit à l'intégralité des prestations sociales dès leur arrivée. En réponse, le gouvernement a tronqué les deux câtés de l'équation, en appliquant des règles d'entrée plus strictes pour la réunification familiale et les demandeurs d'asile, tout en créant une rupture historique avec le principe de prestations sociales égales pour tous les résidents légaux.     

Performing arts audience segments

This article reports audience segmentation results of an extensive performing arts audience research study conducted in central Illinois. The audience segmentation results are discussed as well as the reasons why arts audience segmentation analysis is important. Some needed directions in arts audience segmentation research are suggested.     

Asymptotic normality of narrow-band least squares in the stationary fractional cointegration model and volatility forecasting

We consider semiparametric frequency domain analysis of cointegration between long memory processes, i.e. fractional cointegration, allowing derivation of useful long-run relations even among stationary processes. The approach is due to Robinson (1994b. Annals of Statistics 22, 515–539) and uses a degenerating part of the periodogram near the origin to form a narrow-band frequency domain least squares (FDLS) estimator of the cointegrating relation, which is consistent for arbitrary short-run dynamics. We derive the asymptotic distribution theory for the FDLS estimator of the cointegration vector in the stationary long memory case, thus complementing Robinson's consistency result. An application to the relation between the volatility realized in the stock market and the associated implicit volatility derived from option prices is offered.     

MULTIPLE INTERNAL RATES OF RETURN: A REVISITATION

This paper investigates the utility of certain existing rules for the identification of non-imaginary internal rates of return in the capital budgeting process. More specifically, the paper demonstrates the applicability of Descartes' Rule of Signs, Budan's Theorem, and Sturm's Theorem from the theory of equations and rules developed in the business literature by Teichroew, Robichek, and Montalbano (1965a, 1965b), Mao (1969), Jean (1968, 1969), and Pratt and Hammond (1979). In so doing, the paper provides a framework that accounting, economic, and finance practitioners may use while grappling with the increasing possibility of multiple solutions in contemporary capital budgeting decisions.     

Risk sensitivity in bargaining with more than two participants

In two-person bargaining over riskless outcomes where the outcome is chosen according to the Nash solution or the Kalai-Smorodinsky solution, an increase in a player's risk aversion is to the advantage of the opponent. It is shown in this note that for the n-person Nash solution, an increase in risk aversion is to the player's own disadvantage but needs not be advantageous to all the opponents. For the n-person Kalai-Smorodinsky solution, the increase is to the player's own disadvantage and to the advantage of all the opponents.     

The geometric chain-ladder

Abstract

The log normal reserving model is considered. The contribution of the paper is to derive explicit expressions for the maximum likelihood estimators. These are expressed in terms of development factors which are geometric averages. The distribution of the estimators is derived. It is shown that the analysis is invariant to traditional measures for exposure.