The hospital capital crisis: issues for trustees

The erosion of the capital position in the hospital industry--one of the most complex and overregulated industries in the United States--is a major challenge to trustees. Hospital trustees have often neglected to examine their hospitals' capital needs on more than a project-by-project basis. In dealing with their hospitals' capital needs, trustees, most of whom are successful business people, too often take off their "business" hats and put on their "social worker" hats. In doing so they not only neglect to subject their hospitals' capital and operating programs to searching cost-benefit review, but they also overlook much useful knowledge about how to use corporate organization to shelter new ventures and strengthen their hospitals' market position and solvency. In this article, the authors discuss how hospitals can adopt successful corporate restructurings and strategies to respond to the adverse financial developments they will have to face in the coming years.     

Ex Ante Research Evaluation and Regional Trade Flows: Maize in Kenya

Public sector investment in agricultural research is an important component of developing country efforts to bolster staple cereal production in the face of rapid population growth. This paper uses a spatial equilibrium model to evaluate the potential impact of maize research in six regions of Kenya. The application highlights the important role of research in meeting future food needs, as well as the geographic variability of producer and consumer benefits from technology and trade policy options. Despite significant research induced supply shifts, Kenya will require additional production increases of 1.5 to 2 per cent per year to meet stated goals of self-sufficiency in maize production with open markets. Import restrictions can ensure self-sufficiency and generate producer welfare gains at greater expense to the majority of Kenyans who are net consumers of maize. In the debate over trade policy, public sector investments in maize research should be seen as a potential mechanism to compensate producers for welfare losses associated with market liberalisation.     

Seeing One's Intellectual Roots: A review essay

The Review of Austrian Economics -     

Integrating Technology Traits and Producer Heterogeneity: A Mixed-Multinomial Model of Genetically Modified Corn Adoption

This article proposes a model of technology adoption that integrates demand for individual traits of new technologies with the potential for heterogeneity based on farm and farmer characteristics. The model is applied to recent genetically modified corn adoption data from Minnesota and Wisconsin farmers, using a mixed-multinomial logit (MMNL) model to estimate the effects of traits and farm and farmer characteristics on adoption outcomes. This approach allows explicit recovery of estimates of farmers' shadow prices for individual technology traits. Results show the importance of producer and regional heterogeneity in preferences for seed traits.     

Dual Job Holding and the Gig Economy: Allocation of Effort across Primary and Gig Jobs

This article explored motivations for allocating effort between “gig” and primary jobs using a sample of Amazon Mechanical Turk workers. We found that main job hour constraints, a commonly cited rationale for traditional moonlighting, were a motivation for men but not for women. Other factors affecting effort were also gender specific: Men were driven to spend more time on gig jobs to increase their incomes, while women were motivated by insecurity in their main job. Women, though not men, who were more depressed based on the Center for Epidemiologic Studies Depression scale earned less in their gig economy job. Finally, higher risk aversion reduced income from gig work for men, but not women. We concluded that motivations for effort allocated between the primary and gig jobs differ from those identified in past literature as important for traditional moonlighting decisions.     

Do investment banks listen to their own analysts?

To what extent conflicts of interest affect the investment value of sell-side analyst research is an ongoing debate. We approach this issue from a new direction by investigating how asset-management divisions of investment banks use stock recommendations issued by their own analysts. Based on holdings changes around initiations, upgrades, and downgrades from 1993 to 2003, we find that these bank-affiliated investors follow recommendations from sell-side analysts in general, increasing (decreasing) their relative holdings following positive (negative) recommendations. More importantly, these investors respond more strongly to recommendations issued by their own analysts than to those issued by analysts affiliated with other banks, especially for recommendations on small and low-analyst-coverage firms. Thus, we find that investment banks “eat their own cooking,” showing that these presumably sophisticated institutional investors view sell-side recommendations as having investment value, particularly when the recommendations come from their own analysts.     

The Future Is Rural: Societal Adaptation to Energy Descent

Our present era of high-energy modernity will likely end over the course of the 21^st century, as fossil hydrocarbons wane and new energy technologies fail to compensate. Long-term trends of urbanization will reverse and a migration back to the countryside to regions of high biocapacity will ensue during the coming decades of energy descent. Food will become a central and organizing concern for de-industrializing populations, and key concepts and general methods to secure food supplies using less mechanization and with few outside inputs are presented. Given that high social complexity is institutionalized, with system identities locked-in, we should not expect a planned response to declining net energy. Instead, the so-called Great Simplification will unfold through a series of crises that force reorganization and alter belief systems. Resilience science suggests a role for promoting system transformability along more benign paths and into social forms that are more frugal.     

Real Estate and the Arbitrage Pricing Theory: Macrovariables vs. Derived Factors

Two empirical models are used to implement the arbitrage pricing theory: the factor loading model (FLM) and the macrovariable model (MVM). This study compares the ability of these two models to explain real estate returns using equity REIT returns as a proxy. Two tests are performed: a comparison of crosssectional adjusted-R2's and the Davidson and Mackinnon test. The results show that while the two models perform equally well during the period 1974–1979, the MVM outperforms the FLM over the periods 1980–1985 and 1986–1991. In addition, both models suggest superior financial performance for EREITs relative to other investments in the market during the period 1980–1985.