The impact of lead time on capital investments

We study equilibrium investment strategies of firms competing in stochastic dynamic market settings and facing two types of investment structures: investment with significant lead time (or time-to-build) and investment without (or minor) lead time. We investigate how investment behavior changes when investment is subject to time-to-build versus when it is not. We characterize equilibrium investment strategies under several information structures and compare results to the social optimum. We offer some new results. The model predicts that, controlling for demand, and production and investment costs, investments and outputs can be higher in progressive industries (which often exhibit time-to-build) than in fast-paced industries (where time-to-build is insignificant). Furthermore, for both investment types (investment with or without time-to-build) we offer a novel equilibrium in which firms incrementally invest. This behavior is driven by demand uncertainty and capacity constraints. Also, expected outputs are lower than Cournot outputs as firms face uncertainty. Moreover, the amount of uncertainty has different effects over investment types.     

The impact of the early withdrawal option on time deposit pricing

Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is priced by banks and investors, suggesting that, ceteris paribus, CD yields will be lower than Treasury yields and that CD-Treasury yield spreads vary over time in ways predicted by option pricing theory. We show that yield spreads between five-year retail CDs of at least $90,000 and comparable maturity Treasuries are generally negative, despite reasons why CDs should provide higher yields than Treasuries. We also show that changes in the spread are negatively related to expected interest-rate levels (represented by the slope of the yield curve), negatively related to levels of interest rates (represented by the short-term riskless rate), and negatively related to expectations of interest-rate volatility (represented by implied volatility from exchange traded options).     

The effects of school competition on the achievement of Italian students

In this paper, we study the impact of the degree of school competition on the achievement of Italian students. Specifically, competition is measured as the number of schools available to students in a given area. The aim is to evaluate whether an increase in school choice improves the quality of education. Using the Programme for International Student Assessment (PISA, 2006) dataset we investigate with simple Least Squares regression models, controlling for a host of individual and school characteristics, if secondary school students with a wider range of schools choices perform better than those students whose choice is more limited. We find a significant positive correlation between students' performance and the degree of local schools competition. Moreover, we show that students achieve much better outcomes if schools operating in more competitive environments also experience a higher pressure on academic standards coming from parents. Copyright © 2010 John Wiley & Sons, Ltd.     

The effects of risk and time on entrepreneurship

The paper deals with the socioeconomic background of entrepreneurship. It is especially concerned with the actual relationship between entrepreneurship and risk and time perception (time preferences). It can be predicted that in societies characterized by risk aversion and a preference for short-term risk seeking, there will be optimum conditions for the development of entrepreneurship. The converse is true of societies characterized by short-run risk-averse behaviour or long-term risk seeking. Proxies are proposed for risk and time preference in OECD economies, and tests are developed. Empirical investigation verifies theoretical predictions. It is established that over the period examined (2000–2004), the economies in question have shifted to a non entrepreneurial territory where risk and time are combined. This change is capable of producing conditions which favour entrepreneurial development.     

The estimation of union wage differentials and the impact of methodological choices

This paper demonstrates that methodological differences can matter a lot in the estimation of union/non-union wage differentials. Using individual-level data from the 1991 Wave of the British Household Panel Survey and a model evolved from replicating six existing British studies, we find that the model specification adopted has an important impact on the estimated differential and that the choice of which group means to use when evaluating the mean differential in multi-equation models is of considerable importance. There are also important differences between membership and coverage differentials and the earnings measure used and sample selected also make a difference. However, apart from firm size, the contents of the control vector used is not found to be of great importance.     

Nonparametric estimation of the impact of taxes on female labor supply

This paper proposes a simple extension of nonparametric estimation methods for nonlinear budget‐set models derived in Blomquist and Newey ( 2002 ) to censored dependent variables. The nonparametric method is applied to estimate female labor supply elasticities using data on married women from the 1985 and 1989 waves of the Panel Study of Income Dynamics, exploiting the substantial variation in budget sets caused by the Tax Reform Act of 1986 as a source of identification. The estimated wage elasticities from this new method are 0.56 overall and 0.27 on the intensive margin. The income elasticity estimates are close to ? 0.67 overall and ? 0.13 on the intensive margin. Compared with the linear labor supply model, the estimated elasticities are usually larger for the nonparametric specifications that account for nonlinear budget sets. Copyright © 2010 John Wiley & Sons, Ltd.     

The impact of a STEM-based entrepreneurship program on the entrepreneurial intention of secondary school female students

Despite dedicated effort and research in the last two decades, the entrepreneurship field is still limited by little evidence-based knowledge of the impacts of entrepreneurship programs on the entrepreneurial intention of students in pre-university levels of study. Further, gender equity continues to be an issue in the entrepreneurial sector, particularly in STEM-focused entrepreneurship. In this context, this study was designed to explore the effects of a one-day female-focused STEM-based entrepreneurship program (for brevity, we call it the OzGirlsEntrepreneurship program) on the entrepreneurial intention of secondary school female students. The study collected data from two surveys completed by 193 secondary school female students, aged 14–16 years, who participated in the OzGirlsEntrepreneurship program. This program encouraged girls to develop and implement creative computational solutions to socially relevant problems, with an Internet of Things (IoT) component using the micro:bit device. The findings reveal that a key factor in the development of entrepreneurial attitudes in young female students is associated with soft-skills development, particularly in the areas of creative thinking, risk-taking, problem-solving, and leadership development. The importance of meaningful human connections, including positive role modelling and peer to peer learning were also important factors in fostering entrepreneurial intent. With these factors in mind, our findings highlight that the OzGirlsEntrepreneurship program substantially increased the entrepreneurial intention of secondary school female students. In addition, this study offers actionable implications and recommendations to develop and deliver entrepreneurship education programs for secondary school level students.

     

Choosing a school: the impact of social class on the primary school decision‐making process

One of the objectives of recent government educational reform is greater emphasis on parental choice of school. In consequence, schools are increasingly exposed to competition and in order to maintain pupil numbers will have to become more responsive to their customers. This study, drawing from semi‐structured interviews, examines the process of parental choice of primary school. There is a consensus among parents as to the importance of the decision being taken and regarding the influential evaluative criteria. However, during the early stages of the decision‐making process there are variations between different groups of parents, in particular first time choosers and those with a child already at school, but most especially between different socio‐economic groups. Implications for the primary schools' marketing strategy are considered. Copyright © 2000 Henry Stewart Publications.     

The impact of collective bargaining for teachers on resource allocation in public school districts

This paper presents a theoretical and empirical evaluation of the impact of teacher bargaining on the demand for school inputs, the compensation of school personnel, and the level of educational expenditure in public school districts. It is demonstrated that the major impact of bargaining for teachers has been on a regional rather than on a district by district level, and, contrary to the results of previous studies, bargaining does appear to have a substantial and significant effect on teachers' salaries. The empirical analysis is carried out on a sample of public school districts located in the state of California.     

The average number of events per time unit and its estimation

Let ζ _t be the number of events which will be observed in the time interval [0;t] and define as the average number of events per time unit if this limit exists. In the case of i.i.d. waiting-times between the events,E[ζ _t ] is the renewal function and it follows from well-known results of renewal theory thatA exists and is equal to 1/τ, if τ>0 is the expectation of the waiting-times. This holds true also when τ = ∞.A may be estimate by ζ _t /t or where is the mean of the firstn waiting-timesX ₁,X ₂, ...,X _n . Both estimators converage with probability 1 to 1/τ if theX _i are i.i.d.; but the expectation of may be infinite for alln and also if it is finite, is in general a positively biased estimator ofA. For a stationary renewal process, ζ _t /t is unbiased for eacht; if theX _i are i.i.d. with densityf(x), then ζ _t /t has this property only iff(x) is of the exponential type and only for this type the numbers of events in consecutive time intervals [0,t], [t, 2t], ... are i.i.d. random variables for arbitraryt > 0.     

The role of aggregation in estimating the effects of private school competition on student achievement

This paper investigates possible reasons for the disparity in results in the private school competition literature. In particular, the focus is on the data set, the grade range, and level of aggregation of the competition variable, and on the choice of OLS or IV estimation strategies. The results show that the size and significance of the competition variable depends on each of these attributes, although the grade range of the competition variable has a slightly smaller impact than the others. Private school competition does not have a consistently positive, significant effect on student achievement.     

The impact on the cost of equity capital in the effects of integrated reporting quality

Integrated reporting is a new reporting tool that includes financial and nonfinancial information, which represents a natural evolution of the corporate reporting movement. Although this practice has gained increasing attention in recent years, both from an academic and professional perspective, the quality of the reports still represents a critical aspect due to inadequate investigation. Only a few studies have focused on integrated reporting quality, and contributions on the effects of quality have been even rarer. This study aims to investigate on the impact of integrated reporting quality on the firm's cost of equity capital, owing to the paramount importance of this parameter for firms and investors. Our results highlight that integrated reporting quality has a significantly negative association with the cost of equity capital, suggesting that integrated reporting quality represents an innovative way to reduce the cost of equity. To our knowledge, this is the first study that examines the relationship between integrated reporting quality and a firm's cost of equity.     

Assessing the effects of measurement errors on the estimation of production functions

This article explores to what extent the poor results that are often found when estimating parameters of production functions can be attributed to measurement errors, due to the use of common price deflators across firms. Because of the lack of detailed micro‐economic data, econometricians have to rely on industry‐wide deflators when computing outputs and intermediate inputs. A unique feature of the longitudinal data used in this paper is that it reports firm‐level prices. This allows for a comparative assessment of production function parameters where the outputs and intermediate inputs are computed using both firm‐specific prices and industry‐wide deflators. The empirical results presented in this paper show that the use of common deflators across firms leads to lower scale estimates, mainly because of a large downward bias in the estimated coefficients for labour. Copyright © 2006 John Wiley & Sons, Ltd.     

Simulation-based estimation of peer effects

The influence of peer behavior on an individual's choices has received renewed interest in recent years. However, accurate measures of this influence are difficult to obtain. Standard reduced-form methods lead to upwardly biased estimates due to simultaneity, common shocks, and nonrandom peer group selection. This paper describes a structural econometric model of peer effects in binary choice, as well as a simulated maximum likelihood estimator for its parameters. The model is nonparametrically identified under plausible restrictions, and can place informative bounds on parameter values under much weaker restrictions. Monte Carlo results indicate that this estimator performs better than a reduced form approach in a wide variety of settings. A brief application to youth smoking demonstrates the method and suggests that previous studies dramatically overstate peer influence.     

The impact of attractiveness on employability: Gender differences in peer effects

In this study, we examine if there are peer effects on the influence of external appearance on employability. We presented participants with a series of male and female photos and asked them to rate the attractiveness, employability, and other characteristics of the people portrayed. Candidates who were rated as more attractive were also deemed more likely to be invited for an interview. However, male candidates were judged relatively such that a candidate's chance of being interviewed decreased when his image was presented with that of other handsome men. This relative effect was not found to be significant for women.     

The construction and estimation of continuous time models and discrete approximations in econometrics

We consider econometric models involving variables that are defined continuously over time, or more frequently than they are observed. Separate but analogous treatment is given to both closed models (involving no exogenous variables) and open models (involvingexogenous variables). Justification for the use of standard discrete time models is given. Some exact discrete time models, and some computationally convenient approximate ones, are considered. Asymptotically efficient estimation procedures for a wide class of models are described.     

Fuzzy model estimation of the risk factors impact on the target of promotion of the software product

ABSTRACT

This article studies the application of fuzzy logic to the risk analysis of a new software product development and marketing in specific case of a small size IT company. Identification and analysis of external and internal risk factors show that this type of business activity could be evaluated as high-risk enterprise. So, the purpose of the paper is to develop robust method to evaluate probability of occurrence of major risk events and their impact on the company financial health. The fuzzy logic is used to estimate degrees of threat of each relevant risk factor due to lack of reliable statistical data. The novelty of proposed approach is the inclusion into the model the risk event time.     

The impact of forecasting on operational performance: Mediation effects through flexibility enablers

Literature has devoted increasing attention to the problem of supply and demand management in uncertain contexts. Only limited contributions, however, can be found regarding the interaction between forecasting and flexibility enablers to manage demand as well as regarding the flexibility enablers’ effect on company performance. We will discuss the impacts of flexibility and forecasting on dynamic interactions. The aim of this work is to study the mediation effect of forecasting through flexibility enablers on company performance, i.e., customer satisfaction and cost efficiency. Our results provide evidence that the relationship between forecasting and customer satisfaction is mainly due to process flow management, while the relationship with cost efficiency is mainly due to layout.     

Modeling the effects of grade retention in high school

A dynamic discrete‐choice model is set up to estimate the effects of grade retention in high school, both in the short run (end‐of‐year evaluation) and in the long run (drop‐out and delay). In contrast to other evaluation approaches, this model captures essential treatment heterogeneity and controls for grade‐varying unobservable determinants. In addition, forced track downgrading is considered as an alternative remedial measure. Our results indicate that grade retention has a neutral effect on academic achievement in the short run. In the long run, grade retention, just like forced downgrading, has adverse effects on schooling outcomes and, more so, for less able pupils.     

Nonparametric estimation of distributional policy effects

This paper proposes a fully nonparametric procedure to evaluate the effect of a counterfactual change in the distribution of some covariates on the unconditional distribution of an outcome variable of interest. In contrast to other methods, we do not restrict attention to the effect on the mean. In particular, our method can be used to conduct inference on the change of the distribution function as a whole, its moments and quantiles, inequality measures such as the Lorenz curve or Gini coefficient, and to test for stochastic dominance. The practical applicability of our procedure is illustrated via a simulation study and an empirical example.