Semiparametric inference in a GARCH-in-mean model

A new semiparametric estimator for an empirical asset pricing model with general nonparametric risk-return tradeoff and GARCH-type underlying volatility is introduced. Based on the profile likelihood approach, it does not rely on any initial parametric estimator of the conditional mean function, and it is under stated conditions consistent, asymptotically normal, and efficient, i.e., it achieves the semiparametric lower bound. A sampling experiment provides finite sample comparisons with the parametric approach and the iterative semiparametric approach with parametric initial estimate of Conrad and Mammen (2008). An application to daily stock market returns suggests that the risk-return relation is indeed nonlinear.     

The (Unknown) Providers to Other Firms' New Product Development: What's in It for Them?

For every inbound activity by a firm in open innovation, a reciprocal outbound activity by another firm must be generated. The reciprocal outbound activities range from transferring of knowledge and ideas to solutions delivered to other firms' new product development projects. This paper names the firms that produce the reciprocal outbound activity for “providers,” and is the first to empirically investigate such providers of ideas, solutions, and technologies for other firms' open innovation activities. The literature review shows a surprising shortage of research on who the providers are, how they engage with other firms, and not least what potential benefits can be achieved from supporting other firms' innovation activities. The paper uses a quantitative survey on Danish small and medium‐sized enterprises (SMEs) carried out in 2010 to identify the providers, the role they take on, and the main benefits the providers gain. This paper finds that firms that are providers are indeed an under‐researched and important phenomenon for firms' innovation activities. Compared to receivers of knowledge, the providers are younger, have a higher R&D intensity, adopt more open innovation practices, have higher absorptive capacity, and fewer barriers toward knowledge sharing as demonstrated by the NIH and NSH syndromes. Finally, although only tentatively, the paper finds that the provider firms are more product innovative compared to nonproviders. The paper further finds that more projects, more embedded relationships, and mutual rather than one‐way exchange relationships significantly raise the probability that a firm experiences a substantial benefit from providing to other firms' new product development projects. The overall ambition of the paper at this point is to inspire other researchers to pursue the agenda on the provider perspective for future research. To support such research, the paper suggests a broadening of the research perspectives from the receiver of knowledge, in the literature on interorganizational relationships and open innovation, to include the provider, and even suggests some preliminary ideas for such research. Hence, the contribution of this paper lies not only in opening a new research topic but also in identifying some first characteristics of the phenomenon adding a substantial perspective to the literature on open innovation and interorganizational relationships. The paper formulates three indicative recommendations for managers that consider becoming a provider to other firms' NPD.     

Eating Out: Statistics and Society Presidential Address

Eating-out is generally considered to be of increasing importance as a form of food consumption even though there are differing definitions of its scope. There have recently been some noteworthy additions to the available statistics on eating-out in the UK and these indicate its growth through time and its pattern across society. Eating-out involves a degree of interaction with others and has been studied by sociologists as well as by those whose interest primarily stems from ones in the agri-food chain or in food consumption. It also raises some interesting issues about how ‘externalities’ (and, in particular, those arising from smoking) are best allowed for in circumstances in which both application of the polluter-pays principle and very restrictive regulations may be considered impractical and inappropriate.     

The Measurement of Average Farm Size

Comparisons are regularly drawn between the average sizes of farms in particular countries or regions and in different farm-type categories. Indeed average farm size is often considered to explain (or create expectations of) changes or differences in technical or economic efficiency through time or between countries. There are, however, a number of issues involved in specifying what is meant by a farm and in choosing a suitable measure of farm size. These are examined prior to a discussion of various measures of average size, one of which (the mid-aggregate point) is described in some detail. The measures are illustrated with reference to agricultural holdings in England and in the Member States of the European Union.     

The Relationship between Animal Welfare and Economic Performance at Farm Level: A Quantitative Study of Danish Pig Producers

We propose a theoretical framework for the relationship between animal welfare and the economic performance of livestock farms. We empirically analyse this relationship based on a unique dataset of randomly sampled Danish pig herds that includes information from unannounced inspections of the compliance with the animal welfare legislation. We find large variations in economic performance and animal welfare. The relationship between these two indicators is rather weak, but tends to be slightly positive. A possible explanation for our results is that management has a major influence on both economic performance and animal welfare so that good farm managers are able to meet all animal welfare regulations, while achieving a high economic performance.     

Understanding South African social security through recent household surveys: New opportunities and continuing gaps

The aim of this article is to identify some of the difficult areas in researching the South African social security system, and to offer suggestions as to the kind of further research that is needed to improve our understanding over time. The article starts with a brief ‘tour’ through some of the articles dealing with the subject that have already appeared in Development South Africa, with a view to showing their relationship to each other and to the main data sets which have been used. This is followed by sections on the size of pension income relative to other sources of income; the use of the term ‘transfer income'; the relationship between policy design and socio‐economic behaviour; and some difficulties when comparing different government expenditures on welfare. It is hoped that this will contribute to a more careful analysis and interpretation of existing research, as well as the more precise formulation of social security research in future.     

'Under the Clock': Trade Union Responses to Cmputerised Control in US and Australian Grocery Warehousing

In contrast to optimistic interpretations of contemporary work reorganisation, the example of computerised work monitoring in US and Australian grocery warehousing highlights a far more negative picture of work intensification, job stress and low trust relations. Despite significant variation in trade union response, the article argues such examples reinforce the need for strong and independent trade union regulation to limit the worst excesses of workplace rationalisation.     

Deviations from long-run equilibria and probabilities of devaluations: An empirical analysis of Danish realignments

Deviations from Long-Run Equilibria and Probabilities of Devaluations — An Empirical Analysis of Danish Realignments. — The probabilities of realignments between the Danish krone and the D-mark are investigated for the 1979–1995 period. Two multivariate systems are estimated. In the I (1) systems, the deviations from the cointegration relations are used as explanatory variables when determining the probabilities of exchange rate changes. It is found that real imbalances in the economy have to a large extent determined the probabilities of central parity changes. Furthermore, the probabilities of central parity changes have been significantly lower after 1983.