Environmental policy and stable collusion: The case of a dynamic polluting oligopoly

We show that the imposition of a Markovian tax on emissions, that is, a tax rate which depends on the pollution stock, can induce stable cartelization in an oligopolistic polluting industry. This does not hold for a uniform tax. Thus, accounting for the feedback effect that exists within a dynamic framework, where pollution is allowed to accumulate into a stock over time, changes the result obtained within a static framework. Moreover, the cartel formation can diminish the welfare gain from environmental regulation such that welfare under environmental regulation and collusion of firms lies below that under a laissez-faire policy.     

Delegation in a mixed oligopoly: the case of multiple private firms

Previous research examining mixed duopolies shows that the use of an optimal incentive contract for the public firm increases welfare and that privatization reduces welfare. We demonstrate that these results do not generalize to a mixed oligopoly with multiple private firms. We derive the optimal incentive contract for a public firm that weighs both profit and welfare and show that its use may either increase or decrease welfare depending on the number of private firms and the exact nature of costs. We also identify the conditions that determine whether or not privatizing the public firm facing an optimal incentive contract reduces welfare. Copyright © 2008 John Wiley & Sons, Ltd.     

The house price determination process: Rational expectations with a spatial context

Applying the rational expectations hypothesis, this essay models the current value of a house as the conditional expectation of the discounted stream of housing services accruing to the owner of the house. The value of housing services is determined by neighborhood effects as well as the physical attributes of the property itself. In the existing hedonic literature, future transactions have not been utilized to describe neighborhood effects. The rational expectations asset pricing model in this study accounts for expected future neighborhood effects as well as observed current neighborhood effects. The reduced form of the rational expectations model is a spatial autoregressive (SAR) model with two spatial lags. After employing the generalized method of moments (GMM) in estimating the spatial asset pricing model, I find that both expected future transactions and prior transactions in the neighborhood are significant. The inclusion of expected future transaction prices in the neighborhood takes into account the influence of expected changes in the community and factors these potential changes into the current house price. This is consistent with forward-looking households. The forward-looking model generates superior out-of-sample prediction performance relative to both the conventional hedonic model without considering neighborhood effects or the standard spatial hedonic model including only past transactions.     

Drug testing in the transportation industry: The maritime case

The maritime industry provides an interesting case study of the design and implementation of drug-testing programs in the transportation industry during the 1980s. It is clear that such programs were designed and implemented less because of empirical evidence of safety problems than for political reasons. The results in the maritime industry are indicative of a program that is expensive to operate, intrusive with regard to employee privacy, and which will have little or no impact on safety. Focusing such programs on the issue of impairment rather than on the issue of drug usage per se is likely to improve the outcome of the programs. Although, despite common belief, there is little evidence that drug usage or the “drug problem” in U.S. society as a whole had gotten worse in the preceding years (Schonsheck, 1989, 250–251).     

The Warwick way: A case study of entrepreneurship within a university context

The University of Warwick perceives itself as an innovative and entrepreneririal organization, and has a reputation as such amongst institutions of higher education within the UK. The Conservative Government of Mrs. Thatcher has since 1979 applied steadily increasing pressure on the British system of higher education for it to be more flexible, responsive and business-minded, with less dependency on public funding. The result has been a turbulent and challenging environment for the quasi-public sector universities, with a premium being placed on their ability to manage change. At the time ofwriting, Warwick appears to have operated successfully within this new climate, both to its benefit and to that of its local industrial district. The airticle examines the factors which facilitate and stimulate innovative and entrepreneurial activity amongst the Warwick academic community - factors which will become increasingly important if the university world .is to adapt with flexibility, responsiveness and imagination to the changing and increasingly demanding economic and governmental climate now prevailing not only in the USA and the UK, but also in Australia, Canada, New Zealand and Nigeria.     

社区治理中的政府定位——以杭州市为例

社区治理必须树立现代治理理念.政府与社区组织之间存在着相互依赖关系,必须彼此交换资源、合作互动、持续协调才能顺利实现各自目标.目前政府与社区组织在社区治理中的关系尚未理顺,政府职能转变进程的滞缓和主导性强势行为直接影响了社区治理的效果.要改变现状,政府必须正确定位,摆脱自身社会管理的重负,采取积极有效措施加快培育发展社区自治组织,使之有能力以主体姿态参与社区治理,实现社会管理社会化.     

The effect of lead-time variability: The case of independent demand

We show in this study, through analysis and examples, the impact on stockouts and stockout risk if the variability of lead time in independent demand systems is ignored. In calculating safety stocks, we recommend that the compound distribution of demand during lead time, or a good approximation to it, be used. We motivate the article by a case study on lead-time variability at the U.S. Air Force and show the impact of lead-time variability by means of numerical examples and by marginal analysis. Having established that it is essential to consider lead-time variability, we take advantage of theoretical developments and show how to calculate reorder points and safety stocks in some common situations.It is important to use the proper form for the compound distribution of demand during lead time. A normal approximation to it will often yield significant errors. This is because the true distribution is usually very much skewed to the right.     

Resources and bridging: the role of spatial context in rural entrepreneurship

This article contributes to the emerging discussion on the role of context in entrepreneurship as well as the development of theorizing on rural entrepreneurship. It does so by exploring the role of spatial context for rural entrepreneurs. Through a case study of 28 ventures, two modes of spatializing rural entrepreneurial activities are identified in the form of resource endowments and spatial bridging. Additionally, we develop a typology of rural entrepreneurs, which captures hitherto unexplored heterogeneity within this group of entrepreneurs. Spatial context is found to be of considerable significance to the rural entrepreneurial process and hence this study contributes to a micro-level understanding of place-specific entrepreneurial practices and the non-local circulation of value that can enrich local economies.     

Agency costs and dividend payments: The case of bank holding companies

This paper examines the hypothesis that agency costs are a primary factor motivating dividend payments. Norohna et al. (1996) present evidence that the agency cost rationale is context specific and that dividends will not be driven by agency costs when other mechanisms exist for controlling agency problems. We argue that regulation of bank holding companies involves a context specific case where agency costs may be less relevant. Using an empirical methodology similar to Born and Rimbey’s (1993), we find that the abnormal returns associated with dividend announcements by bank holding companies are not related to their external financing activities. The monitoring activities of the capital markets are not a rationale for dividend payments in the presence of bank regulation. Our results are robust to an alternative explanation involving the signaling role of new equity financings.     

Estimation for spatial dynamic panel data with fixed effects: The case of spatial cointegration

Yu et al. (2008) establish asymptotic properties of quasi-maximum likelihood estimators for a stable spatial dynamic panel model with fixed effects when both the number of individuals n and the number of time periods T are large. This paper investigates unstable cases where there are unit roots generated by temporal and spatial correlations. We focus on the spatial cointegration model where some eigenvalues of the data generating process are equal to 1 and the outcomes of spatial units are cointegrated as in a vector autoregressive system. The asymptotics of the QML estimators are developed by reparameterization, and bias correction for the estimators is proposed. We also consider the 2SLS and GMM estimations when T could be small.     

The costs of job redesign: a preliminary analysis

John Kelly examines and rejects the claim that job redesign satisfies the mutual interests of workers and employers through its provision of improved job satisfaction and performance. He investigates the costs to the parties involved which have been almost invariably neglected.     

Spatial oligopoly: price-location interdependence and social cost in a discrete market space

Spatial oligopoly theory has been restricted in largest part to the analysis of duopoly. Although ingenious, the work has led to results of limited applicability. The present paper generalizes the analysis to n firms but is restricted to the use of specified functions, in the belief that more general results are not to be obtained. Use is made of a nonlinear programming and a Weber-point algorithm in tandem to derive a number of interesting propositions for specific examples. Location patterns and social costs of oligopoly are derived, and an attempt is made to tie the results to previous parameters used by Smithies and to extend his analysis.     

The deployment of temporary production workers in assembly operations: a case study of the hidden costs of learning and forgetting

The dynamics of workforce skill levels has a considerable impact on plant-level performance that is commonly overlooked by managers of manufacturing operations. In this study, we present a discrete event simulation model inspired by and validated in an actual manufacturing setting that includes short product life cycles, mid-volume production quantities, and a production environment consisting of assembly, inspection and testing.The effect of worker skill dynamics is analyzed using a factorial experimental design that contrasts the use of temporary versus permanent workers on manufacturing cost performance. The manufacturing costs assessed include labor, inspection and testing. The cost of reworking a defect is captured as an increase in the labor consumption. Materials costs are not assessed. At the core of the analysis, it is assumed that temporary workers have relatively less skill and therefore have higher average production times, higher average defect rates associated with their assembly activity, and lower rates of learning. In addition, the variance of the production time is higher for the temporary workers. Despite these indicators of performance problems, temporary workers may be used because of the considerably lower wage rate compared to permanent employees.Our in-depth case analyses shows that assigning skilled permanent workers to upstream build operations was superior to other policies deploying temporary workers, regardless of lot size or product complexity. Attesting to the importance of the labor mix component of manufacturing strategy, workforce deployment policies tended to dominate product switching frequency (a proxy variable for lot size and product mix) in impacting costs.     

交通巨变条件下贫困县的旅游发展——以陕西省柞水县为例

通过分析柞水县旅游发展状况及存在问题,指出贫困县在旅游业发展初期阶段必须由政府强力主导,系统规划,充分利用国家交通干线带来的大好机遇,达致双赢.     

The effect of reimbursement of worker's transport costs: The case of urban areas in Japan

In some economies, workers are compensated for their commuting costs to the workplace. The spatial structure of an urban area is analyzed comparing a transport cost compensated system to one where expenses are borne by workers. Profit maximizing behavior by firms results in lower wages being paid in the city where transport costs are compensated. It is shown that worker renters achieve a higher level of utility in the area where transport costs are not compensated. Numerical examples are constructed using a range of parameter values which yields measures of the increase in spatial size of the city where transport costs are compensated. The loss in welfare is also evaluated.     

Quality-improving R&D and merger policy in a differentiated duopoly: Cournot and Bertrand equilibria

We combine a model of product research and development (R&D) and technological spillover with the concept of technological distance and examine horizontal mergers in a duopolistic market with R&D. The results are fourfold. First, a merger can better encourage R&D investment than the competition case. Second, with a small degree of product differentiation (PD), the merger criterion under the Cournot duopoly is stricter than that of the Bertrand case. By contrast, with a moderate or large degree of PD, the opposite is true. Third, with a small technological distance, a merger should be allowable. Finally, with a small degree of PD and moderate technological distance, a merger should be allowable.     

Estimated parameters as independent variables: An application to the costs of electric generating units

The cost of an electric generating unit or other piece of capital equipment should depend on several unit-specific attribtes. Some of these attributes (such as capacity) can be observed without error, but others (such as reliability or efficiency) cannot be. This study is concerned with situations in which estimates of key unobservable quality attributes can be obtained from time series data on actual performance. Adopting a measurement error perspective, a consistent (adjusted least-squares) technique for using such estimates as independent variables in cross-section regression analysis is derived. Our technique is applied to the estimation of a construction cost function for coal-fired electric generating units.     

Feedback equilibria in a dynamic renewable resource oligopoly: Pre-emption,voracity and exhaustion

We revisit a recent literature on productive asset exploitation describing a differential oligopoly game of resource extraction under static, linear feedback and nonlinear feedback strategies, where we explicitly allow for the possibility of resource exhaustion. We show that (i) feedback rules entail resource exhaustion for a finite number of firms; and (ii) feedback strategies are more aggressive than static ones as long as the resource stock is large enough, in accordance with the acquired view based on the traditional pre-emption argument associated with feedback information.     

Mapping the benefits and costs associated with process innovation: The case of RFID adoption

The successful implementation of any innovation requires an understanding of its benefits and costs. This study examines the changes in the magnitude of costs and benefits associated with technology process innovation adoption as the innovation diffuses across different industries. Using RFID as an exemplar technology, the study shows that the magnitude of benefits and costs associated with technological process innovation adoption within different industries varies as technology diffuses beyond early adopters to the early majority. During the early stages of technology evolution, the development cost, the cost of capital, ethical costs and simple direct implementation costs (in the form of the cost of tags) predominate. As a dominant design emerges the profile of costs changes with the emphasis on initiation costs, more holistic direct implementation costs and indirect implementation costs. A similar change in the emphasis of benefits is observed, with a shift from direct to indirect benefits being noticeable as the technology moves from early adopters to early majority adopters. Our findings help to explain the difficulties in consistently measuring innovation outcomes observed in the innovation implementation literature, and emphasize the need to take into consideration the stage of technology development as a significant factor that influences the realised outcomes from innovation implementation.