The monetary economics of Jules Dupuit

This paper analyses Dupuit's views on money, bimetallism, free banking and credit. By means of textual and contextual analysis, I argue that Dupuit endorsed the quantity theory based on the neutrality of money. For him, the value of money was determined by supply and demand. The only exception concerned the redistributive effects of gold between trading nations. Dupuit's approach to credit and his views on the issuance of banknotes were distinct from those of most French liberals. He did not consider credit to be capital, and he warned against the overissue of banknotes.     

Consumers’ willingness to pay for eco-friendly apples under different labels: Evidences from a lab experiment

An experiment was conducted in France to evaluate the impact of health and environmental information on consumers’ choices between conventional and organic apples. Results show that additional and precise messages about both pesticides use and pesticides residues significantly impact consumers’ choices between both products. The experiment also studied the effect of a new label signaling apples that only use few pesticides compared to conventional apples. With elicited willingness-to-pay, we show that the introduction of this new label increases the average participants’ surplus whatever the information context for participants, because of a higher quality compared to conventional apples and a lower price compared to organic products. In order to complement this label, a minimum-quality standard imposing the use of few pesticides is socially optimal when initial participants’ knowledge is limited.     

Real estate prices: An international study of seasonality's sentiment effect

The current study shows that real estate prices in several countries reveal a significant and persistent seasonality, where the highest rates of return are obtained in the spring and early summer, and the lowest rates of return are obtained in the fall. This seasonality is explained by a joint effect of the change in the number of daylight hours and the latitude of the area zone under consideration. Notably, latitude affects real estate prices above and beyond the effect of the change in the number of daylight hours, which by itself is a function of latitude. This joint effect is robust to the two explanations for seasonality given in the literature: the Matching Theory and the Bargaining Power Hypothesis, as well as to several macroeconomic variables. The effect also conforms to the well-known Seasonal Affective Disorder (SAD), which has been found in other studies to affect people's health, their risk attitude, and consequently their risk perception and investment decisions which, in turn, affect asset prices.     

A within-trial cost-effectiveness analysis of panitumumab compared with bevacizumab in the first-line treatment of patients with wild-type RAS metastatic colorectal cancer in the US

Abstract

Aims: This analysis investigated the cost-effectiveness of panitumumab plus mFOLFOX6 (oxaliplatin, 5-fluorouracil, and leucovorin) compared with bevacizumab plus mFOLFOX6 in the first-line treatment of patients with wild-type RAS metastatic colorectal cancer (mCRC).

Materials and methods: The cost-effectiveness analysis was developed from a third-party payer perspective in the US and was implemented using a partitioned survival model with health states for first-line treatment (progression-free), disease progression with and without subsequent active treatment, and death. Survival analyses of patients with wild-type RAS mCRC from the PEAK head-to-head clinical trial of panitumumab vs bevacizumab were performed to estimate time in the model health states. Additional data from PEAK informed the amount of each drug consumed, duration of therapy, subsequent therapy use, and toxicities related to mCRC treatment. Literature and US public data sources were used to estimate unit costs associated with treatment and duration of subsequent active therapies. Utility weights were calculated from patient-level data from panitumumab trials in the first-, second-, and third-line settings. A life-time perspective was taken with future costs and outcomes discounted at 3% per annum. Scenario, one-way, and probabilistic sensitivity analyses were performed.

Results: Compared with bevacizumab, the use of panitumumab resulted in an incremental cost of US $60,286, and an incremental quality-adjusted life-year (QALY) of 0.445, translating into a cost per QALY gained of US $135,391 in favor of panitumumab. Results were sensitive to wastage and dose rounding assumptions modeled.

Limitations: Progression-free and overall survival were extrapolated beyond the follow-up of the primary analysis using fitted parametric curves. Costs and quality of life were estimated from multiple and different data sources.

Conclusions: The efficacy of panitumumab in extending progression-free and overall survival and improving quality of life makes it a cost-effective option for first-line treatment of patients with wild-type RAS mCRC compared with bevacizumab.     

Family Vs. Non-Family Business Owners’ Commitment to Their Town: A Multigroup Invariance Analysis

This study examines differences between family-owned and non-family-owned small and medium tourism enterprises (SMTEs) operating in regional tourism destinations. The research focuses on SMTE owners' commitment to stay in the town in which they are embedded. Based on samples of family (N?=?157) and non-family (N?=?141) businesses in regional South Australia, was used to test the construct validity of SMTE owners' “commitment to stay”. Multigroup invariance was used to test the factorial equivalence of scores from the commitment model across family and non-family businesses. Results support the validity of the “commitment to stay” CFA model. Multigroup invariance analysis suggests family business owners have a greater commitment to staying in their town. These results contribute to our understanding of the unique objectives and behaviours of family businesses in tourism as well as present important implications to destination managers aiming to support sustainable entrepreneurial development.     

Developing Alteratives: Energy,Offices and the Environment

This paper maps some of the social and commercial forces shaping the debate around ‘realistic’ or ‘appropriate’ levels of energy specification in the commercial office market. It discusses how the dynamics of the market, alternative lease arrangements, enhanced building management standards, technological innovation and shifts in cultural taste are all redefining contemporary office space and presenting new opportunities for environmental innovation. Drawing upon interviews with developers, investors, agents, occupiers and property researchers in Britain and France, the changing, often conflicting, priorities underpinning decisions about energy standards are explored. The paper explores possible ‘futures’ for office development processes in the United Kingdom. Highlighting the ebb and flow of the market, the paper points to the changing nature of tenant demand and current ‘opportunities’ for the development of alternative, more ‘realistic’ energy specification levels. Looking beyond the current property slump it examines the cultural and structural shifts likely to sustain any reformation of British real estate practices. In particular, the paper highlights contemporary debates around transformation of the institutional lease and legislative codification of energy and environmental standards. It is argued that this loose constellation of social forces promises a significant, new mutuality of interests between developers and occupiers which is cultivating ‘appropriate’ specification and procurement practices. Cet article retrace certaines des formes sociales et commerciales qui modèlent le débat sur les niveaux ‘réalistes’ ou ‘appropriés’ de spécification de l'énergie dans le marché des bureaux commerciaux. Il explique comment les dynamiques du marché, l'organisation alternative du bail, une meilleure gestion des immeubles, la nouveauté technologique et le changement des goûts culturels redéfinissent l'espace contemporain du bureau et présentent de nouvelles opportunités d'innovation de l'environnement. M'appuyant sur des entrevues avec des promoteurs, des agents, des occupants et des chercheurs sur les propriétés immobilières en Grande-Bretagne et en France, j'examine les priorités changeantes et souvent contradictoires qui supportent les décisions quant aux niveaux d'énergie. Cet article explore les ‘futurs’ possibles pour les processus de développement des bureaux au Royaume Uni. Soulignant le va et vient du marché, cet article démontre la nature changeante de la demande des locataires et les ‘opportunités’ actuelles quant au développement de niveaux alternatifs et plus ‘réalistes’ de spécification de l'énergie. En regardant par delà l'effrondement actuel du marché immobilier, il examine les mouvements culturels et structuraux qui pourraient supporter une réforme des pratiques des agents immobiliers britanniques. Cet article souligne en particulier les débats contemporains sur la transformation du bail institutionnel et la codification législative de la qualité de l'environnement et de l'énergie. Je soutiens que cette constellation décousue de forces sociales promet une nouvelle et significative mutualité d'intérêts entre les promoteurs et les occupants qui cultive les spécifications ‘appropriées’ et les pratiques d'acquisition.     

A note on perceptions of auditors’ internal control report mandated by the PCAOB: Can reformatting the report enhance perceived value added?

The auditor’s report is a critical link in communicating financial data to users. Because of substantial audit costs incurred in integrated audits, the perceived value added by the auditor’s report becomes even more important. The auditor’s report prescribed by Auditing Standard No. 2 (and the new Auditing Standard No. 5) issued by the Public Company Accounting Oversight Board (PCAOB) includes a limitations paragraph. The SAS 58 audit report format that has been in use over 15 years does not contain a limitations paragraph. The SAS 58 report likely serves as a mental frame of reference (a referent report) for users evaluating other independent auditor’s report formats relating to assurance services, including the AS2 and AS5 reports. Whether inclusion of a limitations paragraph could adversely affect the users’ evaluation of the AS2 report is the focus of this study. In light of the publicity given to fraudulent financial reporting and other prevailing economic/environmental conditions, it is reasonable for users to expect that the auditor’s report provide a high degree of assurance regarding material fraud.We extend the [Foster, B. P., McClain, G., Shastri, T. (2005). A note on Pre-Sarbanes-Oxley Act users’ and auditors’ perceptions of a limitations paragraph in the auditor’s internal control report. Research in Accounting Regulations, 18, 195-217] study, by focusing on the AS2 report using data obtained about user perceptions from a field experiment conducted with MBA students. Results suggest that users perceive that an internal control report format without the limitations paragraph will enhance the readability and reliability of the report, and reduce the level of accommodation (additional information) required for decision making. Users perceive that the auditors’ exposure/liability is likely to remain substantially the same whether or not the report format includes a limitations paragraph. Also, users perceive that incorporating fraud wording would further enhance the readability and reliability dimensions of the internal control report format without the limitations paragraph. Taken collectively, the auditor’s report format with fraud wording, but without the limitations paragraph likely maximizes economic benefit accruing to users by minimizing their information risk. Policy-making bodies may find the results and approach taken in this study useful to evaluate report formats for assurance services.