House Prices, Fundamentals and Bubbles

Abstract:  This paper studies actual (real) house prices relative to fundamental (real) house values. Such a focus is warranted since housing constitutes a large fraction of most household portfolios, and its characteristics are such that, in contrast to what prevails in financial markets, arbitrage will be limited and hence correction toward 'true' value is likely to be a prolonged process. Using UK data and a time-varying present value approach, our results preclude the existence of an explosive rational bubble due to non-fundamental factors. We further find that intrinsic bubbles have an important role to play in determining actual house prices although price dynamics appear to impact, particularly in periods of strong deviation from fundamental value. Price dynamics are found to be driven by momentum behaviour.     

Competence and trust guardians as key elements of building trust in east-west joint ventures in Russia

This paper summarises the author 's doctoral research on the development of interpersonal/interorganisational trust in relationships between expatriate and Russian staff working in east-west enterprises in Russia. There is strong evidence from a variety of researchers to suggest that in order for western businesses investing in Russia to succeed, the dif.cult process of building trust needs to be understood and managed since in the Russian business climate western standards and norms of ethical business have not yet been established. According to research.ndings, western investors doing business in Russia and the long-term, personal trust that characterises family and friend relationships more congenial and more productive than formal, arm's-length contacts and contracts. In such a context, it becomes important to identify what creates and destroys trust in the post-Soviet business environment. This paper describes the causal factors leading to trust or lack of trust in relationships within western-invested strategic alliances in Russia. The key relationship under consideration is the one between expatriate western staff and managers seconded to the venture on the one hand, and their local Russian staff, counterparts and superiors on the other.     

Resources in a stable society or the trashman cometh

The subject of this article is the “recycling” of the American junk heap, specifically, an assessment of the resultant happy state through an appropriate simulation plus digital computerization. The main section has the format of an interview based on a mélange of questions posed by fellow members of The Center for the Study of Democratic Institutions and a reporter from educational television.     

The role of e-Health in the changng health care environment

In 2005 health care organizations spent 2.3% of total operating expenses on information technology and are slowly developing the infrastructure necessary to expand e-Health capabilities. E-Health is being recognized as a method to improve the overall health status of the population. It is important to build partnerships among health care providers, local community organizations, and national health care associations to ensure the continued development of e-Health initiatives. This study has managerial implications associated with the strategic application of e-Health systems and policy implications on future resource allocation.     

Strategies and dividend imputation: the effect of foreign and domestic ownership on average effective tax rates

This study examines how dividend imputation affects the incentive of New Zealand firms to minimize tax. By effectively eliminating double taxation on company income, imputation reduces firms’ incentives to engage in costly tax minimization strategies. Before September 1993, resident and nonresident shareholders were treated differently under New Zealand’s imputation system. Because imputation credits cannot be passed to shareholders unless dividends are paid, we expect firms to pursue different tax paying strategies depending on their level of foreign ownership and their dividend payout ratios. After September 1993 when imputation credits were extended to nonresident portfolio shareholders, we expect that firms with high foreign ownership and high dividend payouts would have less incentive to minimize tax. Our results provide some support for these expectations.     

Buy Local! Familiarity and Preferences for Extra Virgin Olive Oil of Italian Consumers

Over the last few years, the origin of the local product has played a central role in consumer choices. This study explores what Italian consumers want and look for when purchasing olive oil by combining a web-based survey and a perceived analysis technique. In particular, preferences for different olive oil attributes as well as the psychographic traits of respondents were revealed through a web-based questionnaire administered to Italian consumers (N = 179). From this questionnaire, respondents who indicated their availability to participate further underwent a preference test under blind conditions (N = 99). Respondents also did an expectation test based on the visual observation of the labels. Results showed that the majority of consumers considered local production, PDO and region as factors of highest importance in determining olive oil quality.     

Digital insurance brokers—old wine in new bottles? How digital brokers create value

This article analyzes digital brokers in the countries of the DACH region, Germany, Austria, and Switzerland, from a business model perspective. We argue that the potential to create new value for insurance customers has not yet been fully realized. Our analysis has identified two strategic action areas. The first concerns the exploitation of the wealth of customer data available. Those digital brokers who will succeed in generating new content and services using data analytics have the potential to take customer centricity and individuality to new bounds. The second centers around introducing aspects of community, such as connecting peers and enabling them to interact. The critical success factors are volume, a high degree of automation as well as leveraging the infrastructure and data to delivering new, value-adding content and services that go beyond traditional intermediation.