ALTERNATIVE PRODUCTION FRONTIER METHODOLOGIES AND DAIRY FARM EFFICIENCY

This paper estimates technical efficiency (TE) measures using four alternative production frontier models, and evaluates the sensitivity of the results to the choice of methodology. The Cobb-Douglas functional form along with data for 1982 and 1983 from 404 dairy farms located throughout six northeastern states in the US are used in the estimation. A general conclusion is that, broadly speaking, frontier function models are neutrally upwardly scaled versions of the OLS or average model. A second conclusion is that different models yield markedly different efficiency levels across firms. However, the correlation between the indexes from the various methods is high, which implies that the ordinal ranking of firms according to their measured level of technical efficiency appears to be independent of the method used for a given year. By comparison, the correlation between efficiency indexes for the same method across time, although positive, is much lower than the previous set of correlations. Correlation analysis of efficiency versus farm size and of efficiency versus returns over variable costs, based on the alternative models, yielded consistent results.     

Modern Trends and Problems of Migration in a Russian Border Region: The Far East

The article has analyzed trends and problems in migration processes in the Far East of Russia in the 2010s. There are restrictions on population growth in the Far East due to migration. It has been determined that the implementation of modern policy decisions with regard to the Far East region does not create real prerequisites for increasing the incomes of the population. It has been proved that, in order to attract population to the Far East, it is necessary to institute economic development in the region that can increase incomes and make them comparable to other more successful federal districts.     

Comparative Assessment of Mortality Rate of the Population in Russian and Foreign Megacities

The article presents the results of a comparative analysis of mortality trends in two Russian capitals and two cities with population over one million, Krasnoyarsk and Rostov-on-Don, in comparison with foreign megacities (Berlin, Hong Kong, London, Los Angeles, New York, Paris, Singapore, Tokyo). From 1990 to 2015, in the Russian “model cities” the standardized mortality rates (SMR) for all causes on average decreased by almost a third: most in Moscow (44% for men and 42% for women) and less for Krasnoyarsk (22% for both men and women). An assessment of the statistical reliability of the decrease in SMR on the basis of long time series showed the absence of a positive dynamic of mortality from diseases of the digestive organs, mainly cirrhosis, which confirms the presence of the alcoholic component. Despite the sufficiently steady decline in mortality in the early 2000s, its level in Russian cities continues to significantly exceed the mortality rate in foreign megacities.     

Punishment in a Regulatory Setting: Experimental Evidence from the VCM

To analyze the effectiveness of punishment in inducing regulatory compliance, we modify a standard public goods experiment to include a financial penalty for free riding. The design allows us to vary both punishment probability and severity. We introduce the punishment mechanism in both a one-time and a repeated treatment and find that compliance (contributing to the public good) is increasing in expected punishment cost in both treatments. We also find that punishment severity has a larger effect on behavior than punishment probability. In the repeated treatment, we find that past punishment has a negative rather than positive effect on compliance.     

Competitiveness of the Euro Zone Manufacturing: A Panel Data Analysis

The purpose of this paper is to assess the main aspects involved in the competitiveness of manufacturing industries in the Euro zone area (EZ-12). To this end, we apply the generalized method of moments to a panel data error correction model. Our sample spans the period from 1970 to 2007, and our findings provide insight into the impact of manufacturing on the international competitiveness of European firms and industries. From the estimated magnitude of the relevant coefficients, we conclude that in the long run, a change in labor and capital compensation is not fully passed on to manufacturing growth, while an increase in the market power of the manufacturing sector will negatively affect its competitiveness.     

Good News and Bad News: Search from Unknown Wage Offer Distributions

The largest market in national economies is the labor market. Labor market contracting is characterized by job search, often from unknown wage offer distributions. This paper reports experimental tests of finite horizon models of job search in which the wage offer distribution is unknown. Theoretically-optimal search from an unknown wage offer distribution can have the seemingly paradoxical property that some offers will be accepted that are lower than other offers that will be rejected in the same period of the search horizon. Thus the reservation wage property (or lowest acceptable wage path) may not exist. This can occur because an offer that is a priori relatively high (good news) can imply that it is highly probable that search is from a favorable distribution, and such an offer can look unattractive when it is an a posteriori relatively low offer from a favorable distribution (bad news). This paper reports results from experimental treatments for search from unknown distributions in which the reservation wage property does exist and treatments in which it does not exist. We find that the consistency of search behavior with search theory reported in earlier papers is robust to the presence or absence of the reservation wage property and to whether the draws come from known or unknown distributions.     

Functional marketing plan development in department store retailing

Retailers are now implementing the types of formal marketing planning programs that have long characterized consumer goods firms. The functional marketing plans that are developed tend to be a year or less in duration. The primary responsibility for developing the plans resides with the general merchandise manager. The planning efforts of the retailing executive, in spite of their short term nature, do reflect an awareness of the importance of understanding the strengths and weaknesses of competitors and of the need to spell out issues involving profit planning, sales promotion planning, merchandise addition/deletion decisions, and issues involving inventory/physical distribution. A variety of marketing plans are developed. Separate plans are developed by merchandise lines in many organizations. The authors wish to express their appreciation to The Conference Board for permission to use the questionnaire, with modifications, underlying research for The Marketing Plan, Report No. 801, The Conference Board, 1981, as the basis for formulating the questionnaire used in this research     

ANTIDUMPING,INTRA‐INDUSTRY TRADE,AND QUALITY REVERSALS

We examine an export game where two (home and foreign) firms produce vertically differentiated products. The foreign firm is more R&D efficient and is based in a larger and richer market. The unique (risk‐dominant) Nash equilibrium exhibits intra‐industry trade, and the foreign producer manufactures a higher‐quality product. When transport costs are low, unilateral dumping by the foreign firm arises; otherwise, reciprocal dumping occurs. For some parameters, a domestic antidumping policy leads to a quality reversal in the international market whereby the home firm becomes the quality leader. This policy is desirable for the implementing country, though world welfare decreases.