Do Japanese consumers care about sustainable fisheries? Evidence from an auction of ecolabelled seafood

This paper investigates Japanese consumers' willingness to pay for Marine Stewardship Council (MSC) ecolabelled seafood using a sealed bid, second price auction. Participants in an experiment in Tokyo were provided varying degrees of information about the status of world and Japanese fisheries and the MSC program in sequential rounds of bidding on ecolabelled and nonlabelled salmon products. A random‐effects tobit regression shows that there is a statistically significant premium of about 20 per cent for MSC‐ecolabelled salmon over nonlabelled salmon when consumers are provided information on both the status of global fish stocks and the purpose of the MSC program. This premium arises from a combination of an increased willingness to pay for labelled products and a decreased willingness to pay for unlabelled products. However, in the absence of experimenter‐provided information, or when provided information about the purpose of the MSC program alone without concurrent information about the need for the MSC program, there is no statistically significant premium.     

Unfulfilled Promise: Laboratory experiments in public management research

Abstract

We make the case for increased laboratory experimentation in public management research. Laboratory experiments can generate useful knowledge, particularly in testing causal relationships among constructs of interest. The challenge in this regard is one of identifying the appropriate role for experiments in a greater knowledge production enterprise. Although laboratory experiments are underutilized, they have proffered important knowledge contributions to the field, especially in areas of decision-making and, increasingly, motivation. Because practical problems may pose a greater obstacle to laboratory experimentation in public management than epistemological issues, we address external validity and the cost of conducting laboratory experiments before concluding with suggestions for future research.     

The Application of Monoline Insurance Principles to the Reregulation of Investment Banks and the GSEs

This article explores the benefits of reregulating the investment banks and government-sponsored enterprises (GSEs, namely, Fannie Mae and Freddie Mac) by applying the monoline principle that has been long established in regulating insurers that offer coverage against mortgage and bond default risks. The monoline regulatory principle was created to ensure that losses on a risky insurance line would not endanger other safe lines. The principle is applicable to both investment banks and the GSEs because both sets of institutions have operated with two basic divisions: a hedge fund division that maintained a highly risky investment portfolio and an infrastructure division that carried out activities with high direct value for the overall financial or mortgage markets. The monoline principle involves placing the two divisions in a new regulatory structure whereby the infrastructure division is bankruptcy remote from any losses that might occur within the hedge fund division.     

A cross-country comparison of corporate governance and firm performance: Do financial structure and the legal system matter?

We blend the corporate governance and the financial structure/legal system literature streams to study whether firm performance is enhanced when its governance structure embodies the demands of the host country’s financial structure and legal system. Using a sample of 1736 unique firms representing 22 countries, we find that the joint effect of a country’s financial structure and legal system does matter when explaining the relationship between performance and the overall level of corporate governance in a given country. The results also suggest that firms operating in the market/common combination countries tend to command higher market valuations than firms with a comparable level of corporate governance that operate in the bank/civil combination countries.     

Robert Browne and Full Employment

Among the valuable contributions Robert Browne made in his career was the role he played in shaping the “Equal Opportunity and Full Employment Bill of 1974” that was introduced by Congressman Augustus Hawkins of California. Browne defined full employment as “a condition in which all persons willing and able to work, no matter what their race, gender, or national origin would be guaranteed a job”. In his view, if the private sector was unable to produce full employment, the government should act as the employer of last resort. Language in support of that view was included in the Hawkins bill. Robert Browne believed only a national policy to achieve that goal would eliminate racial disparities in employment and unemployment—a long term reality in the American labor market. The 1974 Hawkins bill was met with only tepid Congressional support, little notice from civil rights leaders, and no response from the business community. Little was done to advance full employment legislation until Senator Hubert H. Humphrey of Minnesota embraced the cause in 1975. Negotiations with Congressman Hawkins led to the development of the “Full Employment and Balanced Growth Act of 1975,” a legislative measure to replace the Employment Act of 1946. The new bill was commonly known as the Humphrey–Hawkins Full Employment Bill. Robert Browne offered far less support for the new bill than for the original full employment bill introduced by Mr. Hawkins. The Humphrey Hawkins Bill failed to provide explicitly a job guarantee for all workers, and included an inflation target to make price stability co-equal with full employment as a national policy objective. The Humphrey–Hawkins Bill was enacted into law in 1978, and remains the nation’s policy dictum on full employment to this day.     

ESTIMATING RISK EFFECTS IN CHINESE FOODGRAIN PRODUCTION

Given the importance of Chinese foodgrain production both in China and in the world food market, it is useful to explore the sources of the increased variabilities of China's foodgrain production (Stone and Zhong, 1989). A production function with composite error structure and a heteroscedastic disturbance is applied to cross-section and time-series data from China. The function provides information on the contributions of inputs to production variance and therefore on risk. It is found that production variance is positively related to sown area, chemical fertiliser and irrigation, and is negatively related to electricity use. However, most of the estimates determining the marginal risk effects lack statistical significance. This suggests that the measured controllable factors do not contribute very significantly to Chinese foodgrain production variability.