Target costing as a strategic cost management tool for success of balanced scorecard system

The precondition of gaining and sustaining competitive advantage for companies that operate today＇s competitive markets is the effective cost management. Since price is determined by the market, the ways of increasing profits are productivity and cost reduction. Balanced scorecard system is accepted by academicians and practitioners as an effective strategic management tool for applying the strategy successfully. In the financial perspective of the balanced scorecard system, cost reduction is a strategic objective. It is necessary that company＇s cost reduction strategy should not only be a reaction to the market, but also a continual strategy. The approach which aims to the reduction of costs that reveal along product life cycle and preset this aim at the design stage is target costing （TC）. TC can be used as an effective tool in BSC＇s financial perspective for the objective of cost reduction. In this study, the authors aim to display how to integrate the TC to BSC.     

Child abuse: Does public enforcement crowd out private vigilance?

We investigate whether increased public reporting of child abuse crowds out private reporting. We find, despite theoretical models suggesting significant crowding out, that public and private reports have risen nearly equiproportionately and that crowding out is small and not significant.     

Capital adjustment cost and inconsistency in income‐based dynamic panel models with fixed effects

After the seminal work of Nickell (1981), a vast literature demonstrates the inconsistency of ‘conditional convergence’ estimator in income‐based dynamic panel models with fixed effects when the time horizon (T) is short but the sample of countries (N) is large. Less attention is given to the economic root of inconsistency of the fixed effects estimator when T is also large. Using a variant of the Ramsey growth model with long‐run adjustment cost of capital, we demonstrate that the fixed effects estimator of such models could be inconsistent when T is large. This inconsistency arises because of the long‐run adjustment cost of capital which gives rise to a negative moving average coefficient in the error term. Income convergence will be thus overestimated. We theoretically characterize the order of this inconsistency. Our Monte Carlo simulation demonstrates that the size of the bias is substantial and it is greater in economies with higher capital adjustment costs. We show that the use of instrumental variables that take into account the presence of the negative moving average term in the error will overcome this bias.     

Redistributive innovation policy,inequality, and efficiency

We examine the efficiency and distributional effects of regressive and progressive public R&D policies that target high‐tech and low‐tech sectors using a heterogenous‐agent growth model with in‐house R&D and incomplete capital markets. We find that such policies have important implications for efficiency and inequality. A regressive public R&D investment financed by income tax could boost growth and welfare via a positive effect on individual savings and effort. It could, however, also lower growth and welfare via its effect on the efficiency–inequality trade‐off. Thus, the relationship between public R&D spending and welfare is hump‐shaped, admitting an optimal degree of regressivity in public R&D spending. Using our baseline model, and the US state‐level GDP data, we derive the degree of regressiveness of public R&D investment in US states. We find that US states are more regressive in their R&D investment than the optimal regressiveness implied by our growth model.     

Assessment of social–ecological transitions in a peri-urban Ethiopian farming community

In a peri-urban poverty-stricken community in the outskirts of Addis Ababa, Ethiopia, 15 years of development efforts were undertaken by establishing an enterprise, which initially consisted of a horticultural farm and finally was composed of a multifunctional farm and a restaurant with a shop. The enterprise collaborated with BioEconomy Africa, which was charged with administrative, monitoring and facilitation tasks, and provided a training, demonstration and research facility. In the innovation process, the enterprise selected technologies and implemented them within the context of local economic and market conditions. The project benefitted from a flexible allocation of modest funds. This paper assesses the sustainability of the enterprise and the community on the basis of social–ecological system transformability and resilience. The scheme of the Food and Agriculture Organization is used to evaluate the transformability, while resilience is evaluated through self-organization capacity, disturbance absorption capacity, and learning and adaptability. The project period was divided into five Macro-phases. The transformability assessment of the enterprise revealed nonlinear and asynchronous dynamics of environmental sustainability, economic resilience, social well-being and governance that after reaching a minimum attained a maximum at the end of the period under observation. The resilience assessments showed that the self-organization capacity, the disturbance absorption capacity, and learning and adaptability slowly changed to reach a satisfactory level at the end of the observation period. The changes in transformability and resilience profoundly affected the livelihood of the community. The paper demonstrates the important role of agricultural in the development of poverty-stricken peri-urban communities and indicates that innovation processes and the efficiency of facilitation extension model implementation can be enhanced by applying adaptive project execution procedures. It can be concluded that the continuous monitoring and assessments of transformability and resilience are a prerequisite for efficiently moving the socio-ecological system on a smooth road towards a socially acceptable standard of living.     

The Level of Pollution and the Economic Growth Factor: A Nonparametric Approach to Environmental Kuznets Curve

Journal of Quantitative Economics - This paper uses nonparametric method to study the relationship between economic growth and the level of pollution. The results indicate that as income increases...     

A Survey of Differentially Private Regression for Clinical and Epidemiological Research

Differential privacy is a framework for data analysis that provides rigorous privacy protections for database participants. It has increasingly been accepted as the gold standard for privacy in the analytics industry, yet there are few techniques suitable for statistical inference in the health sciences. This is notably the case for regression, one of the most widely used modelling tools in clinical and epidemiological studies. This paper provides an overview of differential privacy and surveys the literature on differentially private regression, highlighting the techniques that hold the most relevance for statistical inference as practiced in clinical and epidemiological research. Research gaps and opportunities for further inquiry are identified.     

Decent rural employment and farm production efficiency: empirical evidence from Tanzania and Ethiopia

Promoting decent rural employment, by creating new jobs in rural areas and upgrading the existing ones, could be one of the most efficient pathways to reduce rural poverty. This article systematically investigates the impact of decent rural employment on agricultural production efficiency in Ethiopia and Tanzania. The analysis applies an output‐oriented distance function approach with an estimation procedure that accounts for different technological, demographic, socioeconomic, institutional, and decent rural employment indicators. Data of the 2011 round of Living Standards Measurement Study‐Integrated Surveys on Agriculture for the two countries are used, and a set of indicators is derived to proxy core dimensions of decent rural employment. The findings of our analysis show that decent rural employment contributes to agricultural production efficiency.     

IDIOSYNCRATIC AND AGGREGATE RISKS,INEQUALITY AND GROWTH

The paper disaggregates productivity shocks at a firm level into idiosyncratic and aggregate risks, and studies their impacts on inequality, growth and welfare. It develops a growth model with human capital and incomplete insurance and credit markets that provides a closed‐form solution for income inequality dynamics. We find that uninsured idiosyncratic risks are the most important determinants of inequality, growth and welfare. They are the source of nondegenerate wealth distribution. A lower weight of these shocks leads to lower steady‐state inequality, higher growth and welfare. A redistribution of income that serves as social insurance against such risks increases welfare and decreases inequality. But, it also decreases growth by distorting individual consumption and saving decisions.