Profitability and Efficiency of High Nature Value Marginal Farming in England

The UK Brexit vote triggered a new wave of policy developments for a future outside the EU. In this context, we analyse the business performance of English hill and upland farms, characterised by marginal economic conditions but also high nature value (HNV). The analysis aims to help identify farm-level management and policy options for greater economic, environmental and social sustainability. Business performance is measured as technical efficiency and the occurrence and persistence of abnormal profits, estimated through stochastic frontier analysis and static and dynamic panel-data methods. The results help indicate rationales for recent trends including farm enlargement, farm family diversification, and agri-environment scheme entry. The single farm payment is found to be negatively associated with farm technical efficiency while agri-environmental subsidies were positively associated to short-term farm profitability. Farm adaptation and resilience during a period of likely turbulence in external circumstances is discussed in light of these findings, as well as potential parallels with marginal HNV areas across Europe.     

Indigenous Peoples’ Health Care: New approaches to contracting and accountability at the public administration frontier

Abstract

This article analyses reforms to contracting and accountability for indigenous primary health care organizations in Canada, New Zealand, and Australia. The reforms are presented as comparative case studies, the common reform features identified and their implications analysed.

The reforms share important characteristics. Each proceeds from implicit recognition that indigenous organizations are ‘co-principals’ rather than simply agents in their relationship with government funders and regulators. There is a common tendency towards more relational forms of contracting; and tentative attempts to reconceptualize accountability. These ‘frontier’ cases have broad implications for social service contracting.     

The impact of consumer health information on the demand for health services

This paper empirically examines whether consumers use health information, from non-physician information sources, as a substitute or complement for health services – namely for physician visits and emergency room (ER) visits. An indicator of patient trust in physicians is developed and used as a proxy for potential unobserved heterogeneity that may drive both consumers’ propensity to seek information and to use physician services. The results, after correcting for sample selection bias and controlling for unobserved heterogeneity, concur with the literature, that consumer health information increases the likelihood of visiting a physician as well as the frequency of visits on average. However, low-trust consumers tend to substitute self-care through consumer health information for physician services. Further, better-informed consumers make significantly fewer ER visits suggesting that information may be improving efficiency in the market.     

Price competitiveness of tourism packages to Australia: Beyond the “Big Mac” index

One issue facing any country or region concerns its price competitiveness as a package tour destination. One method of measuring this is to use what in other contexts has been referred to as the Big Mac approach. The “Big Mac” is a simple product with ingredients in fixed proportions, whereas the tourism product is a very complex one comprising different components depending on tourist expenditure patterns. There is no equivalent tourism product offered across countries, as the nature of the product is tailored to the origin market, expenditure levels and the length of the trip involved. The key issue is that of how to standardize the products being compared, so as to determine their relative price competitiveness. A method of constructing price competitiveness indexes, developed by the authors, can be applied to develop measures of the price competitiveness of different tour packages. This paper has three aims: To set down the essence of the preferred approach to measuring price competitiveness, noting its advantages and limitations; to employ this approach to construct price competitiveness indexes for package tours to Australia from Japan and the USA; and to indicate areas for farther research into the price competitiveness of package tourism worldwide.     

An Analysis of Materiality and Reasonable Assurance: Professional Mystification and Paternalism in Auditing

Critical analyses of the audit profession have become more common in recent years. Many of these analyses focus on the entire audit profession in developing their criticisms and concerns. In this paper, the scope of analysis is narrowed to examine in depth the auditing profession's use of the concepts of reasonable assurance and materiality in audit performance and audit communications. Reasonable assurance and materiality are the terms that auditors use to describe the scope of their responsibility to the public. Similarly, reasonable assurance and materiality are the key determinants of audit effort. An overview of official guidance, practitioner reports, and academic research reveals that these two key concepts are not well specified nor are they consistently applied in audit practice. These findings are evaluated from two competing perspectives on professions – the traditional, functionalist perspective and the critical theorists' perspective. Evaluation from the latter perspective leads to a conclusion that the profession's use of these key terms to guide practice and communication leaves the profession open to charges of mystification and unjustified paternalism.     

Financing SME Growth: The Role of the National Stock Exchange of Australia and Business Advisors

Lack of access to finance presents a major setback to the development of the Small and Medium Enterprise (SME) sector in Australia. Demand and supply of finance to the sector entails more complex issues than apply to large firms. SMEs have a pecking order of preference for finance; they prefer internal equity to debt and debt to external equity. Nonetheless, a significant number of growing SMEs require external equity. Using the grounded theory method, interviews with six owners and 13 accounting and legal advisors indicate entrenched lack of knowledge about initial public offering (IPO) and the National Stock Exchange of Australia (NSX) among SME owners and their advisors. The study finds that the NSX's poor performance is attributable to lack of visibility, low listings, lack of underwriters, thin trading, inefficient processes and poor location. The NSX is entrenched in a vicious cycle of poor performance that threatens its viability. It is unable to attract sufficient listings to generate the income required for effective operation. Greater exposure of small business advisors to the IPO process should increase demand for public equity through the NSX.     

Economic Impacts of Inbound Tourism under Different Assumptions Regarding the Macroeconomy

On what is taken to be the 'Standard View', increased tourism expenditure from inbound markets has direct, indirect and induced effects on a host destination, leading to increased production, income and employment. Strong links between tourism and other sectors of business reduce import leakages from tourism expenditure thereby enhancing the multiplier effects of the injected expenditure on domestic output, value added and employment. The usual technique for analysing these effects is input-output analysis. This paper argues that economy-wide effects must be taken into account in determining the impacts of increased tourism expenditure on a destination, and that the 'Standard View' is superficial and very often misleading. An expanding tourism industry tends to 'crowd out' other sectors of economic activity, reducing the demand for traditional exports and import competing industries. The extent of these 'crowding out' effects depends, in turn, on the workings of labour markets, changes in prices and the real exchange rate, and the macroeconomic policy context. It is argued that these mechanisms can only properly be taken into account using Computable General Equilibrium (CGE) models rather than input-output modelling. The paper then looks at applications of CGE modelling to tourism growth in both nations and regions, classifying the various studies according to assumptions made about labour markets and government policies. The discussion has relevance for estimating the economic contribution of tourism in all destinations. The paper concludes with some observations regarding the use of CGE modelling in tourism contexts internationally and issues for further research.     

New product process activities and project outcomes

The new product process comprises the set of activities that move the product from idea to launch. The authors investigated the new product process activities of firms in Australia, England and Belgium. Objectives of the research were to determine—what activities are undertaken in the new product process? How proficiently are these activities performed and what improvements are needed? whether the sorts of activities undertaken and their proficiency affect project success or failure. Since these activities are largely under the control of management, the deeper is our understanding of new product process activities, the greater the scope for improved product innovation management.