Modeling and Measuring Productivity in the Agri-Food Sector: Trends, Causes and Effects

This article overviews recent trends in modeling and measuring productivity patterns, and in distinguishing their determinants and implications, for the agri-food sector. Theoretical methodologies as well as empirical implementation and results are discussed, with a view toward identifying those with potential for facilitating understanding of productivity measures, and ultimately using them for policy guidance. Productivity growth evidence for the food systems of the U.S., Canada and the U.K. is summarized, and recent studies distinguishing underlying causes of production structure patterns and linking them with market-structure patterns are reviewed, as a basis for assessing the key messages from and trends in this literature.
L'auteurfait un survol de révolution récente dans les domaines de la modélisation et de la mesure des courbes de productivité ainsi que de la caractérisation de leurs determinants et de leurs significations pour le secteur agroalimentaire. Il passe en revue les méthodes théoriques aussi bien que les applications empiriques et leurs résultats afin d'en dégager ceux qui pourraient faciliter la comprehension des mesures de la productivité et qui, éventuellement, pourraient servir de guide awe décideurs. L'auteur analyse les signes de croissance de la productivité des filières agroalimentaires observés aux Etats-Unis, au Canada et au Royaume-Uni. Enfln il examine les études récentes sur les causes sous-jacentes des évolutions des structures de production et sur leurs liens avec l'évolution des structures de marché, dans le but d'en dégager les messages et les tendances dés.     

Executive overconfidence and the slippery slope to financial misreporting

A detailed analysis of 49 firms subject to AAERs suggests that approximately one-quarter of the misstatements meet the legal standards of intent. In the remaining three quarters, the initial misstatement reflects an optimistic bias that is not necessarily intentional. Because of the bias, however, in subsequent periods these firms are more likely to be in a position in which they are compelled to intentionally misstate earnings. Overconfident executives are more likely to exhibit an optimistic bias and thus are more likely to start down a slippery slope of growing intentional misstatements. Evidence from a high-tech sample and a larger and more general sample support the overconfidence explanation for this path to misstatements and AAERs.     

Hide-and-Seek in the Market: Placing and Detecting Hidden Orders

This paper investigates why traders hide their orders and howother traders respond to hidden depth. Using a logit model,we provide empirical findings suggesting that traders use hiddenorders to manage both exposure risk and picking off risk. Usingprobit models, we show that hidden depth increases order aggressiveness.Our interpretation of this empirical evidence is threefold.First, hidden depth detection is possible and frequent. Second,when traders detecthidden volume at the best opposite uote,they strategically adjust their order submission to seize theopportunity for depth improvement. Third, traders' responsewhen hidden depth is detected suggests either that they do notassociate hidden orders with informed trading or that the riskof trading with an informed trader is widely offset by the opportunityfor depth improvement.     

Understanding gay consumers’ clothing involvement and fashion consciousness

This study’s primary objective was to provide a better understanding of gay consumers’ clothing involvement and fashion consciousness. Personal in‐depth interviews were conducted with 13 gay professionals in Canada. One hundred and forty‐five usable survey questionnaires were also collected from gay consumers. The Fashion Involvement Index Scale (FII scale) was adapted for this study. Interview participants indicated that, in general, gay men tend to be more fashion conscious than heterosexual men. Survey results also indicated two dimensions, fashion interest and fashion awareness that were found to be stronger for this group of gay consumers than for heterosexual men. The FII value for the survey participants also resulted in a sum score mean value of 11.2, a medium level of fashion involvement that is a slightly higher level than has been found for heterosexual consumers. Interestingly, this study does not provide strong evidence of gay consumers’ involvement in cutting‐edge fashion trends.     

Optimal Leverage and Aggregate Investment

We analyze the optimal financing of investment projects when managers must exert unobservable effort and can also switch to less profitable riskier ventures. Optimal financial contracts can be implemented by a combination of debt and equity when the risk-shifting problem is the most severe while stock options are also needed when the effort problem is the most severe. Worsening of the moral hazard problems leads to decreases in investment and output at the macroeconomic level. Moreover, aggregate leverage decreases with the risk-shifting problem and increases with the effort problem.     

Reconciling economic and biological modeling of migratory fish stocks: Optimal management of the Atlantic salmon fishery in the Baltic Sea

The paper puts forward a model of the Atlantic salmon fishery in the Baltic Sea that integrates the salient biological and economic characteristics of migratory fish stocks. Designed to be compatible with the framework used for actual stock assessments, the model accounts for age-structured population dynamics, the seasonal harvest and competing harvesting by commercial and recreational fishermen. It is parameterized for the Simojoki River stock. The socially optimal policy for maximizing discounted net benefits from the fishery within an uncertain environment is determined using a dynamic programming approach and numerical solution method. Our results indicate that substantial economic benefits could be realized under optimal management without compromising stock sustainability.     

The 21st-century public servant: working at three boundaries of public and private

In a project on the roles and skills of the 21st-century public servant, interviews with public service workers highlighted three boundaries of public and private: relating to ethics, careers and identities. Two contingent factors shape the capacity of staff to be able to reconcile the public and private aspects of their work: the degree of fiscal austerity and the scope for reflective practice. Strategic workforce planning needs to support staff to manage the different versions of public and private.     

Earnings Management Using the Valuation Allowance for Deferred Tax Assets under SFAS No. 109*

Statement of Financial Accounting Standards No. 109 (SFAS No. 109) allows firms to use their discretion to set arbitrarily high valuation allowances against deferred tax assets. Firms can then later use these "hidden reserves" to manage earnings. Our evidence indicates that most banks do not record a valuation allowance to manage earnings, but rather to follow the guidelines of SFAS No. 109. However, if the bank is sufficiently well capitalized to absorb the current‐period impact on capital, then the amount of the valuation allowance increases with a bank's capital. In later years, bank managers adjust the valuation allowance to smooth earnings. The magnitude of the discretionary adjustment increases with the deviation of unadjusted earnings from the forecast or historical earnings.