Towards a complete real-time electricity market design

The general design for the real-time electricity market presented in this paper optimizes and prices both real and reactive power simultaneously in an AC setting, where all assets—generation, load and transmission—are allowed to bid and are financially settled at the locational price times energy consumed or produced. The result is that transmission lines are compensated for both capacity and admittance, providing incentives for efficient operation of transmission-related assets such as FACTS devices, if price-taking behavior is assumed. Losses are incorporated into the design and become an operating cost for transmission. The market design is shown to be revenue neutral and, under some assumptions, nonconfiscatory.      

A theoretic reappraisal of the offsetting behavior hypothesis

This paper examines the theoretical basis of the claim that product safety regulation may not lead to either a decrease in accident rates or an increase in consumer health. We find that the technology which determines the household's probability of having an accident may guarantee that regulation will lower accident rates, and that therefore, predictions about the effect of regulation on the incidence of accidents can be made without detailed knowledge of consumer behavior.     

How useful are signals? A micro-structure analysis

We analyze how the market processes a signaling event by studying a sample of self-tender offers, events often viewed as signals of firm value. By examining changes in the degree of informed trading, we find asymmetric information costs fall at announcement, remain low throughout the event, and increase at offer expiration. By one month following expiration, informed trading returns to a level not significantly different from that prior to the offer. Higher risk firms have significantly larger declines in information asymmetry during the offer. Increases in information asymmetry persist one month following expiration for firms with lower pre-offer informed trading. (JEL G14, G32)     

Can national infrastructure spending reduce local unemployment? Evidence from an Australian roads program

We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To address the likely funding endogeneity problem, we exploit variation in spending due to pork-barreling, and find that higher government expenditure on roads substantially reduces local unemployment.     

Decomposing the effects of organizational memory on marketing implementation

There is limited evidence to explain the effect of organizational memory on marketing implementation. This paper addresses this gap by identifying multiple components of organizational memory and examining how each affects marketing implementation. Organizational memory is a collective recollection of the past that is embedded within firm culture, procedures, and expertise. The findings demonstrate potential tradeoffs to linking versus locking into the firm’s past, particularly in turbulent environments. By decomposing organizational memory’s effects, this paper explains how organizational memory can both enable and constrain marketing implementation.     

When does an employee not help coworkers? The effect of leader–member exchange on employee envy and organizational citizenship behavior

Using a sample of 233 front-line hotel employees, we examined leader–member exchange (LMX), envy, and organizational citizenship behavior (OCB). The results from path analysis support the research model that employees who have a relatively poor working relationship with their supervisor (i.e., low-quality LMX relationship) were more likely to show higher levels of envy than employees who have relatively closer working relationships with the same supervisor (i.e., high-quality LMX relationship). Ultimately, higher levels of envy decreased employee voluntary helping behavior (i.e., organizational citizenship behavior, OCB) toward coworkers. This finding suggests that employees perceiving a poor working relationship with their supervisor committed less voluntary helping behavior toward coworkers than their counterparts. Implications for managers and suggestions for future research are discussed.     

Estimating the Effect of Air Quality: Spatial versus Traditional Hedonic Price Models

Empirical studies of hedonic housing prices show that the spatial maximum likelihood estimation (MLE) method is preferable to the traditional ordinary least squares (OLS) hedonic method. Current computing capabilities restrict the MLE method to relatively small data sets. This paper circumvents this limitation by coupling the spatial MLE method with block bootstrapping, a form of Monte Carlo simulation that accounts for spatially dependent data. Blocks are created based on monthly and census tract information for resampling. For each month, we obtained 50 resamples of 750 observations from a data set of 15,727 residential properties to compare OLS and MLE empirical results. We find that the spatial MLE method consistently outperforms the traditional OLS method under these simulated conditions and that air quality matters irrespective of the method used.     

Expected purchasing power parity

Conclusions The results of this study indicate that movements in the exchange rate are determined primarily by expected purchasing power parity. Expected future wholesale and consumer prices were both significantly related to the exchange rate. The coefficients were negative and close to unity. Finally, the results imply that expected future inflation can have an impact on a country’s terms of trade.     

A cross-national comparison and taxonomy of DEA-based hospital efficiency studies

This paper provides the first taxonomy of hospital efficiency studies that uses data envelopment analysis (DEA) and related techniques. We provide a systematic review of 79 such studies published from 1984–2004 that represent 12 countries. Only studies written in English are considered. A cross-national comparison reveals significant differences with respect to important study characteristics such as type of DEA model selected and choice of input and output categories. Compared with US studies, European efforts are more likely to measure allocative rather than technical efficiency, use longitudinal data, and use fewer observations. We take a longitudinal perspective that illustrates the life cycle of this research, as well as its diffusion across disciplines. Our taxonomy can be used by policy makers and researchers to review past, and assemble new, DEA models.     

A Critical Analysis of the Accounting Industry’s Voluntary Code of Conduct

The public accounting industry’s voluntary code of conduct in the United States is the American Institute of CPA’s Code of Professional Conduct. Based on our analysis, we conclude that the accounting industry’s current code is limited in its ability to serve the public interest in three respects. Specifically, the code is input-based, requires no third-party attestation of compliance with the code, and contains no public reporting process of code compliance/noncompliance at the accounting firm level. We propose that the accounting profession should reorient its largely input-based Code of Professional Conduct to include output-based performance measurements. We also conclude that third-party attestation of compliance with the profession’s code would help to promote compliance. Finally, we maintain that the accounting industry should initiate a public reporting process at the individual accounting firm level. Such a requirement would add a degree of public accountability as to whether a firm complies or fails to comply with the industry’s voluntary code of conduct. John D. Neill, Ph.D., CPA, is a professor of accounting at Abilene Christian University and has previously published articles in numerous journals including the Journal of Business Ethics, Journal of Accounting Literature, Accounting Horizons, Advances in Accounting,theFinancial Analysts Journal,and theJournal of Accounting, Ethics, and Public Policy. O. Scott Stovall, Ph.D., is an assistant professor of accounting at Abilene Christian University and has published articles in the Journal of Business Ethics, Management Accounting Quarterly, and Cases from Management Accounting Practice. Darryl L. Jinkerson, Ph.D., is an assistant professor of management and chair of the Management Sciences Department at Abilene Christian University and was formerly the Director of Assessment and Measurement for Arthur Andersen.