EQUIVALENCE SCALES AND THE WELFARE OF CHILDREN: A COMMENT ON “IS THERE BIAS IN THE ECONOMIC LITERATURE ON EQUIVALENCE SCALES?”

In a recent issue of this journal, M. Luisa Ferriera, Reuben C. Buse, and Jan-Paul Chavas argue that the equivalence scales implicit in the official U.S. poverty line and in public welfare programs overcompensate parents for their children, with resulting negative distributional and incentive effects. We show that their analysis is based on a very particular, and ethically unappealing, assumption about the importance of children's well-being.     

Estimation of technical inefficiency effects using panel data and doubly heteroscedastic stochastic production frontiers

In previous studies, measures of technical inefficiency effects derived from stochastic production frontiers have been estimated from residuals which are sensitive to specification errors. This study corrects for this inaccuracy by extending the doubly heteroscedastic stochastic cost frontier suggested by Hadri (1999) to the model for technical inefficiency effects. This model is a stochastic frontier production function for panel data as proposed by Battese and Coelli (1995). The study uses, for illustration of the techniques, data on 101 mainly cereal farms in England. We find that the correction for heteroscedasticity is supported by the data. Both point estimates and confidence intervals for technical efficiencies are provided. The confidence intervals are constructed by extending the “Battese-Coelli” method reported by Horrace and Schmidt (1996) by allowing the technical inefficiency to be time varying and the disturbance terms to be heteroscedastic. The confidence intervals reveal the precision of technical efficiency estimates and show the deficiencies of making inferences based exclusively on point estimates. First version received: March 2000/Final version received: Oct. 2001 RID="*" ID="*"  The authors are grateful to the Economic and Social Research Council for access to their Data Archive which has provided the data for this research. We are indebted to Badi Baltagi and two anonymous referees for their helpful comments and suggestions. The usual caveat applies.     

Financing Tertiary Education: An Examination of the Issues

The subsidies provided to the tertiary sector in Australia are more generous than those offered in most other advanced countries and most other industries. Evaluated using the criteria of economic efficiency, equity and consistency with the stated aims for the tertiary sector, these subsidies do not appear to be given for the right reasons. It can therefore be argued that there is justification for the imposition of tuition fees and for consideration of loans as a method of student finance. Overseas experience with loan finance is reasonably encouraging. Income contingent loans have been advanced as a viable means of perfecting the market for investment in human capital and as a form of profit sharing in which taxpayers share in both the costs and benefits of the educational investments of a nation's youth. Many standard arguments against loan finance, such as their disadvantaging lowincome groups and their constituting a negative dowry for female students, do not stand up to close scrutiny of the empirical evidence. The gradual introduction of a student loans scheme characterised by a high degree of income contingency, lengthy repayment periods, decreasing marginal tax rates per unit of debt, and moderate interest rate subsidies, appears to have considerable merit as a means of passing on to graduates part of the cost of the expensive service they now receive largely for free.     

Insolvency and Tests of Insolvency: An Analysis of the "Balance Sheet" and"Cashflow" Tests

National and international case law refers to two basic tests of insolvency: the "balance sheet" test and the "cashflow" test. While the former method is argued to be the bona fide test for insolvency, accounting principles fail to provide serviceable data for that function. Hence, the cashflow test is superior to the balance-sheet test principally because it quantifies the market worth of assets. The premise is that a financial test of insolvency requires current money equivalents for assets to be compared against all business debt incurred by the entity.     

Data Envelopment Analysis: A Practical Tool to Measure Performance

This paper describes a productivity method, data envelopment analysis (DEA), and how it can be used to measure performance using multiple performance measures. DEA compares organisations or parts of organisations that share common goals and use similar resources to produce similar products, and calculates the technical efficiency with which firms convert bundles of inputs into bundles of outputs. DEA has been used in both public and private settings, and the paper describes some of its applications within Australasia. A case study of New Zealand dairy farms is used to demonstrate the benchmarking capability of DEA. While built upon solid theoretical foundations, DEA is essentially a practical tool that can be used by academics for research as well as by managers and practitioners for improved performance measurement and accountability.     

Understanding the determinants of environmentally conscious behavior

An understanding of the various motivational determinants of environmental consumer behavior is developed based on Batson's (1987) model of prosocial behavior. A correlational study finds support for two independent determinants of environmental behavior, the first being motivation based on internal responses of distress, the second being motivation based on empathy. The advantage of motivating environmental behavior through distress and empathy, over the more standard approaches based on attitudes and rewards or punishments, are discussed. In addition, the research supports the role of perceived consumer effectiveness and faith in others as determinants of some environmentally conscious consumer behaviors. © 1999 John Wiley & Sons, Inc.     

ENVIRONMENTAL (‘GREEN’) MANAGEMENT TYPOLOGIES: AN EVALUATION,OPERATIONALIZATION AND EMPIRICAL DEVELOPMENT

Seven environmental management strategy models were reviewed, investigating their classification approaches, underlying structures and assumptions. Two major types of classification approaches are identified: (i) continuum/progression and (ii) categorical. A deductive approach is used for model development and only one model, that of Schot, has been evaluated in a research context. This evaluation sets a background for understanding the current research which utilizes the continuum model proposed by Hunt and Auster as the research framework for a study of eight Norwegian firms in two industries: printing and food processing. One conclusion of the study points to the inadequacy of the Hunt and Auster model as a research framework. Difficulties in classifying the companies into the model were evident when a multi-dimensional construct was collapsed into a linear rating scale. This did not lead to a successful approach to the classification of the companies being studied. A different analysis approach, which maintains the multi-dimensional nature of the data (cluster analysis), was then used to develop a new model. Through using an inductive approach, a preliminary empirically based model where all the data can be placed into the model is proposed. Another conclusion of the paper is that further research leading to the development of more empirically derived environmental management models is needed.     

Local stakeholders,role and tourism development

Building sustainable communities, as well as sustainable forms of livelihood, including tourism, has been a key objective among many government agencies and community stakeholders. Against this background, and through the lens of role theory, the present study investigates the potential for sustainable tourism to be developed in a rural community. Data were gathered among business owners and residents of Bridgetown, Western Australia. Four key groups of participants emerged, each emphasizing participants' role as community, and therefore, as tourism stakeholders. Alignment with various perspectives of role theory, including functional, “symbolic interactionist”, structural and cognitive was noticed; similarly, consensus, conformity and role taking were identified as key concepts. Whether currently involved in tourism or not, participants' pro-active role suggesting practical ways to enhance the sustainability of local tourism could be a powerful tool in this and other communities seeking to build their destination image.     

Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports

The United States mandated a Hazard Analysis Critical Control Points (HACCP) food safety standard for seafood in 1997. Panel model results for 1990 to 2004 suggest that HACCP introduction had a negative and significant impact on overall imports from the top thirty-three suppliers. While the effect for developed countries was positive, the negative effect for developing countries supports the view of "standards as barriers" versus "standards as catalysts." A different perspective emerges from individual country-level analysis. Regardless of development status, leading seafood exporters generally experienced a positive HACCP effect, while most other smaller trading partners faced a negative effect.