A Parametric Distance Function Approach for Malmquist Productivity Index Estimation

Malmquistindexes of productivity are generally estimated using index numbertechniques or non-parametric frontier approaches. The aim ofthis paper is to show that Malmquist indexes can be estimatedin a similar way using parametric-deterministic or parametric-stochasticfrontier approaches. To allow a multi-output multi-input technologyand for technical change in production, we adopt an output distancefunction which is specified in a translog form. We then showthat using the estimated parameters, several radial distancefunctions can be calculated and combined in order to estimateand decompose the productivity index. Finally, this approachis applied to a panel of Spanish insurance companies. The mainresults confirm those generally obtained for financial services:very low rates of growth and technical change in spite of a rapidderegulation process and expansion of activity.     

Einzelbesprechungen

Ohne Zusammenfassung     

How trade and investment agreements affect bilateral foreign direct investment: Results from a structural gravity model

We employ a structural gravity approach to analyse the impact of preferential trade agreements (PTAs), bilateral investment treaties (BITs) and other policies on bilateral foreign direct investment (FDI). We use the UNCTAD global database on bilateral FDI stocks and flows. To control for the heterogeneous nature of PTAs, we employ two different indicators of PTA depth. We find that on average signing a PTA increases bilateral FDI stocks by around 30%. Nevertheless, we also find that ‘deeper’ or comprehensive PTAs (e.g., including provisions on investment, public procurement and intellectual property rights provisions) do not have a significantly different impact than signing regular PTAs. Belonging to the EU single market, on the other hand, has a strong impact and increases bilateral FDI by around 135%, and signing a BIT has an effect that is comparable to signing a PTA.     

Do momentum-based strategies work in emerging currency markets?

Existing studies on the profitability of trading rules in the currency market focus mainly on the currencies of developed countries. The profitability of technical trading rules on the currencies of emerging economies is surprisingly understudied. This paper evaluates the profitability of technical trading rules in emerging currency markets. Similar to Okunev and White [Okunev, J. and White, D., (2003) “Do Momentum-based Strategies Still Work in Foreign Currency Markets?” Journal of Financial and Quantitative Analysis 38, 425–447.], 354 long/short moving average rules for six currencies are investigated. It is found that investing in emerging currencies can generate a considerable annual return of over 20%, even after a 5% annual transaction cost is imposed. The trading-rule profits are relatively stable across the 20 year sample period. Furthermore, the impact of financial crises on the trading-rule returns is also examined. It is found that the profitability of the trading rules is improved after the crises.     

The Evaluation of Hotel Website Functionality by Fuzzy Analytic Hierarchy Process

Although previous studies have identified different factors on hotel website functionality evaluation, the evaluation of the relative importance of these factors has not been empirically determined. This study adopted a sophisticated approach that analyzes the weights of hotel website functionality. This approach involved triangular fuzzy numbers and an analytic hierarchy process to develop a fuzzy analytic hierarchy process (AHP) model which prioritizes the relative importance of hotel website functionality criteria. First, 20 criteria for hotel website functionality evaluation were developed from a literature review and three focus group interviews. After that, a fuzzy AHP approach was used to examine the relative importance of the criteria and sub-criteria of hotel website functionality evaluation. As human judgments are often uncertain and vague, the use of fuzzy set theory, rather than exact numbers, enables us to capture decision-makers' uncertainty. Finally, the results indicated that “Reservation Information” is the most important criterion to hotel website functionality.     

Maximum likelihood estimation and inference methods for the covariance stationary panel AR(1)/unit root model

This paper considers Maximum Likelihood (ML) based estimation and inference procedures for linear dynamic panel data models with fixed effects.     

Location factors of international R&D activities: an econometric approach

A model is developed of the relation between adoption of an innovation by firms and firm size. Decision making is represented as a group assessment of the perceived ratio between expected returns after succesful introduction, and the risk that implementation will fail or will last too long to makc adoption worth while. In view of differences in thc assessment of uncertainty and corresponding demands on the perceived return-to-risk ratio, among influencers of decisions in the firm, decision making is taken as stochastic, with a probability of adoption related to (objective) net benefits, and probability of non-adoption related to risk. The model gives a new way of looking at the fact that small firms lag behind in the adoption of new technology. In contrast with previous models proposed by David and Davies the explanation has nothing to do with there being some critical size below which adoption is not profitable. The present model explains the adoption lag for smaller firms as the result of expected returns being proportional to size while risk of failed implementation is independent of size. The model is tested and estimated empirically on data for the adoption of computers in small scale retailing, in the Netherlands.     

Co-operation in the Dutch Container Transport Industry

During the last 25 years, co-operation within the Dutch container transport industry has served in various ways as Q means of reducing rkk. Co-operation has been aimed chiefly at reducing financial risks, pooling financial resources, and regulating com- petition. In most cases, a direct solution of the problem of match- ing supply and demand has not been an important motive for CO- operation. In the early days of containerisation, industry culture was facilitating co-operation in liner shipping more than in the stevedoring and road haulage industries.     

Measuring peer effects in the Brazilian school system

Using the identification strategy proposed by Graham and Hahn (2005), we estimate the magnitude of classmate effects on math scores using Brazilian data from 2005. In addition, we provide a detailed discussion about the identification of endogenous peer effects in the linear in means models. Our results show that both peer characteristics (exogenous peer effects) – like race, socioeconomic status and gender – and peer actions (endogenous peer effects) are important determinants of students’ outcomes in the fifth grade of elementary school. Our estimates of endogenous peer effects are about 0.008 of 1 SD of math test scores, which can be interpreted as evidence of a so-called ‘conformist’ individual behaviour, under which students face large costs to exert effort levels that are distant from what is believed to be the norm in the classroom. Those estimates of endogenous peer effects imply a social multiplier of about 1.67.     

Guus Veenendaal. Spoorwegen in Nederland. Van 1834 tot nu. Amsterdam: Boom, 2004. 604 pp. ISBN 90-5352-980-2, {euro}49.50.

This book is a commissioned history for Nederlandse Spoorwegen(Dutch Railways, or NS), but in his foreword the author claimsthat the commission had no influence on the contents. Afterreading the book, I believe in the sincerity of this claim.NS is only visible commercially in a very subtle manner, thatis, in the choice of the company colors (yellow and blue) forthe book dust jacket. While NS formally was founded only in 1917—as a communityof interests of the