Willingness to Pay for Rural Landscape Improvements: Combining Mixed Logit and Random‐Effects Models

This paper reports the findings from a discrete‐choice experiment designed to estimate the economic benefits associated with rural landscape improvements in Ireland. Using a mixed logit model, the panel nature of the dataset is exploited to retrieve willingness‐to‐pay values for every individual in the sample. This departs from customary approaches in which the willingness‐to‐pay estimates are normally expressed as measures of central tendency of an a priori distribution. Random‐effects models for panel data are subsequently used to identify the determinants of the individual‐specific willingness‐to‐pay estimates. In comparison with the standard methods used to incorporate individual‐specific variables into the analysis of discrete‐choice experiments, the analytical approach outlined in this paper is shown to add considerable explanatory power to the welfare estimates.     

Supply Chain Performance Based on the Lean–Agile Operations and Supplier–Firm Partnership: An Empirical Study on the Garment Industry in Indonesia

The purpose of this study is to explore how lean–agile operations and supplier–firm partnership can improve garment small and medium enterprise (SME) supply chain performance. This study is based on cross‐sectional survey research that provides longitudinal evidence to show how lean–agile operations and partnership strategy influence supply chain and garment SME performance. To clarify the relationships among these constructs, structural equation model (SEM) is conducted to examine the model fit and the five hypotheses. The result shows that agile supply chain and partnership strategy are critical for garment SMEs because these strategies influence their supply chain performance. However, the leanness strategy does not necessarily influence their supply chain performance. The supply chain performance and partnership strategy have a positive influence on the SME performance.     

Investment and the soft budget constraint in China

This paper examines the incentive effects of the soft budget constraint on the investment behavior of firms in general and on the investment-cash flow sensitivity in particular. To this end, we develop a simple model of moral hazard that takes the soft budget constraint into account. Within this moral hazard environment, we show that investment is positively related to the amount of internal funds. We further show that the presence of the soft budget constraint deteriorates the moral hazard problem, thereby making the investment level less sensitive to the amount of internal funds. This is the case irrespective of whether the soft budget constraint renders the firm more or less liquidity constrained. To test the model's empirical implications, we employ data of China's listed companies for the period from 1997 to 2003. We use the share of state ownership as a proxy for the severity of the soft budget constraint. We find strong evidence that firms with larger shares of state ownership exhibit lower investment-cash flow sensitivities than firms with smaller shares of state ownership.     

Note on a model of Chinese national income determination

A macroeconomic model of Chow (1985) explaining aggregate consumption by the permanent income hypothesis of Robert Hall and aggregate investment by the accelerations principle was found to fit Chinese annual data from 1952 to 1982 well. This note shows that the same model can successfully explain Chinese annual data from 1978 to 2006.     

Interpersonal Relationship,Service Quality,Seller Expertise: How Important Are They to Adolescent Consumers?

Drawing upon social capital theory and psychosocial development theory, this paper argues that a true buyer–seller relationship is a key determinant of favorable consumer behaviors for adolescent consumers of hairstylist services. Other important determinants include quality of the service delivery process (i.e., service quality as measured by the five SERVQUAL factors) and quality of the core service (in this case, the hairstylist's expertise). A survey of 350 adolescent consumers confirms these predictions. It shows that a true interpersonal relationship negatively moderates the positive effects of service quality on consumer satisfaction with, and overall assessment of the hairstylist. This negative moderating effect is labeled resource substitution benefit and the argument made that this is the fourth social capital benefit. The theoretical and practical implications of these findings are discussed. © 2012 Wiley Periodicals, Inc.     

The revealed comparative advantage of the east asian NICs

The spectacular export performance of the East Asian NICs is clearly indicated by their increasing shares of manufactured exports in the world markets. However, the conventional wisdom that the comparative advantage of industrialized countries such as Japan has systematically shifted to the NICs is challenged by the results from this study. A detailed analysis of the threedigit SITC product categories for manufactures indicates that NIC exports have not replaced Japan's in the U.S. market. The growth of manufactured exports from the NICs is moving along with the growth of Japan's exports in similar product categories but at different stages of the product cycle or of technology sophistication. Hence, the NICs, rather than replacing the exports from Japan, are merely supplying some complementary manufactured products to the industrialized market.     

OPTIONAL REAL-TIME PRICING OF ELECTRICITY FOR INDUSTRIAL FIRMS

Abstract. This paper proposes a pricing mechanism, optional real-time pricing (RTP), with day-ahead hourly prices, that exploits the potential offered by a competitive wholesale power market. When an electric utility offers the option to its industrial customers, the retail prices are based on an existing Hopkinson tariff and expectations as to the wholesale market's next-day hourly spot prices. The proposed RTP mechanism is Pareto-superior to the tariff in that it assures both the utility and the customer of profits that will be at least as great as under the tariff.     

COMMENT ON "THE IRREDUCIBLE ROLE OF DERIVED MARGINAL UTILITY IN DYNAMIC STOCHASTIC PROGRAMMING"

This comment shows why the Lagrange method can be simpler than dynamic programming in solving dynamic optimization problems.     

Getting past yes: negotiating as if implementation mattered

Many deals that look good on paper never materialize into value-creating endeavors. Often, the problem begins at the negotiating table. In fact, the very person everyone thinks is pivotal to a deal's success--the negotiator--is often the one who undermines it. That's because most negotiators have a deal maker mind-set: They see the signed contract as the final destination rather than the start of a cooperative venture. What's worse, most companies reward negotiators on the basis of the number and size of the deals they're signing, giving them no incentive to change. The author asserts that organizations and negotiators must transition from a deal maker mentality--which involves squeezing your counterpart for everything you can get--to an implementation mind-set--which sets the stage for a healthy working relationship long after the ink has dried. Achieving an implementation mind-set demands five new approaches. First, start with the end in mind: Negotiation teams should carry out a "benefit of hindsight" exercise to imagine what sorts of problems they'll have encountered 12 months down the road. Second, help your counterpart prepare. Surprise confers advantage only because the other side has no time to think through all the implications of a proposal. If they agree to something they can't deliver, it will affect you both. Third, treat alignment as a shared responsibility. After all, if the other side's interests aren't aligned, it's your problem, too. Fourth, send one unified message. Negotiators should brief implementation teams on both sides together so everyone has the same information. And fifth, manage the negotiation like a business exercise: Combine disciplined negotiation preparation with post-negotiation reviews. Above all, companies must remember that the best deals don't end at the negotiating table--they begin there.