Would adopting the Australian dollar provide superior monetary policy in New Zealand?

Counterfactual experiments with the Reserve Bank of New Zealand's core model provide some insight into the implications for New Zealand's economic performance over the 1990s, had it credibly fixed its currency to the Australian dollar. If New Zealand had faced the relatively more stimulatory Australian monetary conditions prevailing over the 1990s, then output growth may have been temporarily boosted. However, demand pressures would have probably been greater and inflation higher. In particular, results suggest that over the latter part of the 1990s annual inflation would have been approximately 1% point higher on average. Stochastic simulation experiments provide a vehicle to analyse what the implications of currency union might be more generally. Results suggest that if New Zealand were to lose its ability to set monetary policy independent of that set in Australia, then the variability of inflation and output would increase over the business cycle.     

ON THE ROBUSTNESS OF RANGE‐BASED VOLATILITY ESTIMATORS

We empirically examine Parkinson's range‐based volatility estimate in the federal funds market, which is unique because institutional regulations create a predictable pattern in interday volatility. We find that range‐based volatility estimates and standard deviations produce the expected volatility pattern. We also find that at trading pressure points where microstructure noise should be greatest, range‐based estimates are less than the standard deviations. Thus, we support the argument that range‐based volatility estimates remove the upward bias created by microstructure noise. We find that the Parkinson method is the most efficient range‐based volatility measure among a set of alternates in this market.     

The appropriateness of default investment options in defined contribution plans: Australian evidence

For participants in defined contribution (DC) plans who refrain from exercising investment choice, plan contributions are invested following the default investment option of their respective plans. Since default investment options of different plans vary widely in terms of their benchmark asset allocation, the most important determinant of investment performance, participants enrolled in these options face significantly different wealth outcomes at retirement. This paper simulates the terminal wealth outcomes under different static asset allocation strategies to evaluate their relative appeal as default investment choice in DC plans. We find that strategies with low or moderate allocation to stocks are consistently outperformed in terms of upside potential of exceeding the participant's wealth accumulation target at retirement as well as downside risk of falling below that target outcome by aggressive strategies whose allocation to stocks approach 100%. The risk of extremely adverse wealth outcomes for plan participants also does not appear to be very sensitive to asset allocation. Our evidence suggests the appropriateness of strategies heavily tilted towards stocks to be nominated as default investment options in DC plans unless plan providers emphasize predictability of wealth outcomes over adequacy of retirement wealth.     

Going for Gold: Atlanta's Bid for Fame

This article explores the importance of image to the Atlanta Olympic Games of 1996. It suggests that the event must be seen as an example of the use of the propagation of selected images designed to boost the standing of the city in an increasingly competitive interurban environment. The intersection of major sporting spectacles, big business and vastly increased television coverage provides an important new medium through which boosterists can put their city on the world map. However, as the Atlanta case reveals, the ‘semiotics of the successful city‘ involves a highly ideological construction which often presents urban areas as conflict‐free zones. In Atlanta, potentially negative images were removed both physically and symbolically from the urban landscape, while the actual experience of the Games suggested that the city had some way to go in material terms to match its often hyperbolic self‐promotion. The article suggests that the staging of events such as the Olympics is a necessarily high‐risk venture for cities, one that, as in the case of Atlanta, may not have been ultimately worth the effort. Cet article examine l'importance de l'image dans le cadre des Jeux Olympiques d'Atlanta de 1996. Il propose de considérer l'événement comme un exemple de la diffusion d'images sélectionnées, conçues et utilisées afin de promouvoir la réputation de la ville dans un contexte interurbain de plus en plus concurrentiel. L'intersection entre des spectacles sportifs exceptionnels, de grandes entreprises et une couverture télévisuelle considérablement étendue constitue un moyen novateur grâce auquel les promoteurs de cette dynamique peuvent positionner leur ville sur la carte du monde. Cependant, comme le montre le cas d'Atlanta, la ‘sémiotique d'une ville gagnante’ implique une construction idéologique très forte qui présente souvent les zones urbaines comme des espaces non conflictuels. À Atlanta, les images à potentiel négatif ont étééliminées à la fois physiquement et symboliquement du paysage urbain, tandis que les Jeux eux‐mêmes laissaient à penser que la ville devait progresser sur le plan matériel si elle voulait correspondre à son auto‐promotion souvent hyperbolique. L'article suggère que la mise en scène d'événements tels que les Jeux Olympiques est une opération nécessairement très risquée pour des villes, opération qui, à l'instar de l'expérience d'Atlanta, peut finalement ne pas justifier les efforts réalisés.     

Pharmacy discount card programs: catching up with the health markets

Pharmacy costs continue to rise, as does the number of senior citizens. One of the ways of containing costs may be the pharmacy discount drug card program, for both seniors and the general population.     

实行按操作规程进行的维修

指出企业传统维修管理方式存在的弊病,阐述企业按操作规程进行维修的意义,并从优化工作内容,明确工作指令,装备可维修性,采编、优化装备维修工作计划,人员配置,保持先进性等六个方面具体说明如何成为一个按操作规程进行维修的企业.     

What is a strategic acquisition? Decision modeling in support of foreclosed housing redevelopment

This paper describes and develops a model for calculating location-based strategic values of foreclosed properties considered for acquisition and redevelopment by community development corporations (CDCs). A property’s strategic value refers to its proximity to site-specific neighborhood amenities and disamenities (e.g. schools, public transit, distressed properties), given the relative importance of that proximity to CDC organizational and community objectives. We operationalize the concept of strategic value, and apply this concept to a salient public sector decision problem. Using data and value assessments from a CDC engaged in foreclosed housing redevelopment, we compute measures of strategic value for a set of acquisition candidates. We show that strategic values can differ in systematic ways depending on the types of amenities and disamenities identified as relevant for CDC acquisition decisions, the relative importance assigned to those amenities and disamenities, and the utility maximization objectives of the CDC. We conclude by proposing a multi-criteria decision model for foreclosed housing acquisition and redevelopment which incorporates a theory of residential housing impacts for which strategic value measures are a special case.     

Risk factors in Australian bond returns

This study examines the risk factors in Australian bond returns. The study quantifies bond liquidity and estimates a liquidity risk factor in the Australian setting. We develop a three‐factor asset pricing framework that uses term, default and liquidity risk factors to explain the variation of Australian bond returns. Our findings corroborate the US evidence on the pervasiveness of these risk factors faced by bond investors. The three‐factor model developed in this study has practical applications when calculating the cost of debt, evaluating the performance of an active bond fund manager and hedging underlying risk in a bond portfolio.