A Measure of Fundamental Volatility in the Commercial Property Market

The low level of volatility observed in appraisal-based commercial property indices relative to other asset classes has been frequently noted and extensively commented on in the real estate finance literature. However, the volatility of such commercial property indices is only one source of information on the second moment of commercial property returns. The volatility of securitized property returns forms another potential source of information, though there is some uncertainty about how closely the volatility of securitized returns may match the volatility of the underlying asset. Each measure of volatility has a potential source of noise associated with it. This paper proposes a fundamental measure of volatility for the commercial property market by using a stochastic volatility model to filter out the signal in the different sources of volatility information. This allows for different measures of volatility to be decomposed into transitory noise and unobserved fundamental volatility. The suitability of such an approach and the properties of the underlying fundamental volatility series are analyzed using data from the U.K. property market.     

Optimum tariff on imports from imperfectly competitive labor-managed firms

This paper develops a model of international trade between a labor-managed economy and a capitalist economy and examines the short- and long-run optimal specific tariff in the presence of foreign imperfect competition among labor-managed firms. It will be shown that the underlying conditions for the optimal tariff rule are different from conventional wisdom.     

A microstructure examination of trading activity following stock splits

In a study of 1,131 stock splits spanning the period 1983–1989 we observe an increase in the number of trades as well as a reduction in the mean trade size following the split. Combined with earlier reported findings of an increase in the number of shareholders postsplit, we conclude that the number of liquidity traders increases after a split. We confirm the previously observed increase in the bid-ask spread following a split, and upon decomposition of the spread find an increase in its adverse selection component in the postsplit period. This is consistent with the finding by Brennan and Hughes (1991) of an increase in the number of analysts following a stock after a split. Further, observing a decrease in market depth following a split we determine that Kyle-type models incorporating diverse private information for informed traders most correctly describe the nature of security trading. Since this decrease in postsplit market depth is not related to the trading volume or the split factor, we reject price correction explanations for stock splits.     

Technological Upgrading under Tariffs and Equivalent Quotas*

This paper compares the effect of tariffs and that of equivalent quotas on the domestic firm’s production technology choice when it competes with a foreign firm in the domestic market. It is shown that under Bertrand price competition, the ranking of technology under tariff protection and quota protection is ambiguous, as it depends on the relative strength of the strategic vs output effects. The equivalent quota regime can generate a higher‐technology (implying a lower production cost) choice than the tariff regime if the strategic effect dominates the output effect. In contrast, the technology level is necessarily higher under the tariff regime than under the equivalent quota regime when the firms engage in Cournot quantity competition.     

Toward sustainable consumption: Researching voluntary simplifiers

This article examines and extends the notion of voluntary simplifiers (VS). VS are individuals who have freely chosen a frugal, anticonsumer lifestyle that features low resource use and environmental impact. The article will begin by reviewing empirical work with VS and their mainstream counterparts, non‐voluntary simplifiers (NVS). It will go on to identify and locate within this literature an intermediate group: beginner voluntary simplifiers (BVS). BVS may support some aspects of sustainability (such as buying fair‐trade coffee or recycling domestic waste) without either embracing a complete lifestyle change like VS, or completely dismissing ethical or environ‐mental features of products and services they consume, like NVS. Insight into the complex decision‐making processes of BVS is crucial for the understanding of the concept of voluntary simplification and is therefore important for the advancement of sustainable consumption. © 2006 Wiley Periodicals, Inc.     

Dynamic forecasting of monetary exchange rate models: Evidence from cointegration

The Frenkel-Bilson and Dornbusch-Frankel monetary exchange rate models are used to estimate the out-of-sample forecasting performance for the U.S. dollar/Canadian dollar exchange rate. By using Johansen's multivariate cointegration, up to three cointegrating vectors were found between the exchange rate and macroeconomic fundamentals. This means that there is a long-run relationship between the exchange rate and economic fundamentals. Based on error correction models, two monetary models outperform the random walk model at the three-, six-, and 12-month forecasting horizons. Therefore, monetary exchange rate models are still useful in forecasting exchange rates.     

Ubiquitous computing and its effects on small businesses

Much of the previous literature on ubiquitous computing (UbiComp) has been limited to case studies, reporting innovative practices of specific technologies (e.g., RFID) and social issues. There is a general paucity of research on strategic application of UbiComp, especially to small businesses. To address this issue, this study provides a broad overview of the current practices of UbiComp in leading countries and presents possible future directions. Then, the effects of UbiComp on small businesses are discussed. Through a cross-national comparative analysis, we present four strategies to provide some guidance to the countries that are currently considering entering into the UbiComp race.     

On the informationization of accounting information in China： The perspective of accounting information systems and its regulatory framework in the USA

The informationization of accounting information systems has brought many improvements to those systems. This paper highlights some of those significant advances in the informationization of accounting information systems in China. As China has become a major industrial power in the international economy, further improvements for these information systems are critical to the continued successes of China. To additionally improve these systems, China can draw upon the systems from other world economic leaders. With its fully developed capital markets, the United States offers development experience for the external reporting components of a fully integrated information system. This paper discusses a typical integrated information system in the United States and addresses the regulatory milestones that were instrumental in the development of those external components of accounting information systems. Recommendations are presented for improving informationization of systems in China based on U.S. systems＇ responses to those milestones.     

The demand for money in korea: Evidence from the cointegration test

This paper shows that there exists a long-run equilibrium relationship between M2 and its determinants, real income and the long-term interest rate, in Korea by using Johansen and Juselius maximum likelihood cointegration method. However, M1 does not have any meaningful cointegration relationships with its determinants. The long-term interest rate is a better proxy than the short-term rate to measure the opportunity cost of holding money. Based on the results, a broad definition of money is a better measure than a narrow definition of money in considering the long-run economic impacts of changes in monetary policy in Korea.