Why panel tests of purchasing power parity should allow for heterogeneous mean reversion

Recent studies of purchasing power parity (PPP) use panel tests that fail to take into account heterogeneity in the speed of mean reversion across real exchange rates. In contrast to several other severe restrictions of panel models and tests of PPP, the assumption of homogeneous mean reversion is still widely used and its consequences are virtually unexplored. This paper analyzes the properties of homogeneous and heterogeneous panel unit root testing methodologies. Using Monte Carlo simulation, we uncover important adverse properties of the panel approach that relies on homogeneous estimation and testing. More specifically, power functions are low and assume irregular shapes. Furthermore, homogeneous estimates of the mean reversion parameters exhibit potentially large biases. These properties can lead to misleading inferences on the validity of PPP. Our findings highlight the importance of allowing for heterogeneous estimation when testing for a unit root in panels of real exchange rates.     

Identification of critical operational performance measures— a research note on a benchmarking study in the transportation and distribution sector

In this paper the results presented are of an empirical benchmarking study investigating which operational performance measures in the transportation and distribution sector are the most important for financial performance. In the existing literature, the selection of operational performance measures is mostly derived from strategy, using interviews and discussions with management. The main contribution of this paper is to show how an application of benchmarking can identify the relative importance of different operational performance measures and to set standards for those measures.$g0     

Anticipating the future: ‘Biotechnology for the poor’ as unrealized promise?

This article analyses visions of the future articulated by proponents of ‘biotechnology for the poor’, those who claim that an embrace of transgenic technology in agriculture is critical to alleviating poverty in developing countries. Specifically, we analyse how such ‘biotechnology for the poor’ proponents represent a future with or without transgenic crops. Such representations include visions of a beckoning (promising) future, where much is to be gained from an embrace of transgenic technology in agriculture, and an onrushing (threatening) future, where much will be lost if the technology is not embraced. The article shows that claims about a beckoning or onrushing future by ‘biotechnology for the poor’ proponents are based upon unexamined or problematic assumptions about the poor and poverty. As such, poverty becomes merely a moral backdrop against which visions of a future are articulated. Furthermore, ‘biotechnology for the poor’ writings do not engage in dialogue with alternative voices in articulating their perspectives on the future, losing a key opportunity to democratize debate about this crucial issue. We conclude by considering the policy consequences (in regulatory and institutional terms) of ‘biotechnology for the poor’ depictions of the future, particularly for the global South where such consequences will be felt.     

Efficient replenishment im handel — probleme und lösungsansätze aus sicht der agency-theorie

In den letzten Jahren hat Efficient Consumer Response vermehrt in der Konsumgüterindustrie Einzug gehalten. In der Praxis wird die lieferseitige Kooperation von Herstellern und H?ndlern im Efficient Replenishment jedoch durch verschiedene Probleme erschwert. Diese lassen sich aus Sicht der Prinzipal-Agenten-Theorie interpretieren. So lassen sich theorie-basierte L?sungsans?tze, sogenannte Kooperationsdesigns, erarbeiten, die diese Probleme mindern und dadurch die Stabilit?t und Effizienz der Kooperation steigern k?nnten.     

The Non-Trivial Choice between Innovation Indicators

We discuss the strengths and weaknesses of five alternative innovation indicators: R&D, patent applications, total innovation expenditure and shares in sales taken by imitative and by innovative products as they were measured in the 1992 Community Innovation Survey (CIS) in the Netherlands. We conclude that the two most commonly used indicators (R&D and patent applications) have more (and more severe) weaknesses than is often assumed. Moreover, our factor analysis suggests that there is little correlation between the various indicators. This underlines the empirical relevance of various sources of bias of innovation indicators as discussed in this paper.     

Firm size and the demand for energy in Dutch manufacturing, 1978–1986

As in most other industrialized countries the oil price shocks in the seventies led to major rearrangements in the production processes in Dutch manufacturing. The substitution of (expensive) energy consuming processes by less energy intensive ones is analyzed by means of a dynamic equation, relating the energy demand to the level of output, the price of energy and the prices of other inputs. Using a rather unique data set, consisting of panel data pertaining to several thousands of manufacturing firms, it is found that large firms can reduce energy costs more than small firms.This article reports on research carried out in the MOPS-project. Participants of MOPS are the Netherlands Central Bureau of Statistics, the Research Institute for Small and Medium-sized Business in the Netherlands, and the Erasmus University Rotterdam. The views expressed in this article do not necessarily reflect the policies of the Netherlands Central Bureau of Statistics.The authors thank Bert Balk, Jos van Deventer, Peter Kooiman, Huib van de Stadt, Roy Thurik, Wim Vosselman, Ton Werkhoven and two anonymous referees for helpful comments.