Productive efficiency of French grain producers: A latent variable model

In this article we propose to implement a covariance structure analysis to deal with the estimation of a stochastic frontier production function on panel data and the measurement of a time-varying technical efficiency. First, this method solves the potential problem of correlations between input quantities and individual effects. Second, individual effects and efficiency measures can be recovered as a byproduct of the analysis through the so-called factor scores. We implement this approach by fitting to a balanced panel of French grain producers, a parsimonious version of the Cornwell, Schmidt, and Sickles [1990]'s model where technical efficiencies are individual-specific linear functions of time. A specification search shows that this model is preferred to the traditional production function. Results shed light on the temporal pattern of efficiency in the French grain production sector.The authors thank Jacques Mairesse, Quang Vuong, two referees, the editor, and session participants at the Econometric Society European Meeting, Cambridge, September 1991, at the Second European Workshop on Efficiency and Productivity Analysis, Louvain-la-Neuve, October 1991, at the Conference on Current Issues in Productivity, Newark, December 1991, and at the ENSAE-EHESS seminar, Paris, March 1992, for helpful comments and suggestions.     

Some Implications of the Philosophy of Technology for Science, Technology and Society (STS) Studies

Technology is frequently considered in terms of its impact on entities outside its essential nature: as the impact of technology on the environment and society, but also the impact of human values and needs on technology. By taking particular social implications of technology into account, the Science–Technology relationship can be extended to the field of Science, Technology and Society (STS) studies. STS studies are grounded in socio-technological understanding, that is, systematic knowledge of the mutual relationship between technical objects, the natural environment and social practice. Because technology is a key element of STS, it is expected that the philosophy of technology will have implications for STS studies. The dynamic nature of technology as such leaves its own philosophy in a tentative or flexible state. However, the implications of the philosophy of technology, being in a development phase at the moment with changes in emphasis occuring, for STS studies ought to be determined continuously. The aim of the article is to identify and discuss possible implications of the the philosophy of technology for STS. In order to deduce these implications, the relevant theoretical framework underpinning the article will be discussed in broad outlines. Seeing that the philosophy of technology is such a wide field a delineation of the field needs to be done. Mitcham’s proposed preliminary framework is taken as point of departure for the article. Technology as knowledge (epistemology/theory of knowledge) and technology as activity (design methodology) will be discussed as two key aspects of the modern philosophy of technology which could provide implications for STS. A theory of knowledge usually includes methodology, but seeing that Mitcham classified methodology as one of the modes in which technology is manifested, it is dealt with separately. The epistemology and methodology of technology will each be discussed from a philosophical, historical and practice-based methodological perspective. Some implications of the philosophy for STS are identified and discussed.     

An empirical analysis of the interrelationships among equity markets under changing exchange rate systems

The purpose of this article is to investigate the interrelationships between seven stock markets (Germany, France, Italy, the Netherlands, Belgium, the United Kingdom and U.S.A.) over the period 1969–1976. The impact of flexible exchange rates on the various correlation coefficients is shown to be rather low. The results show a trend towards higher segmentation between the various stock exchanges, which means larger opportunities for international diversification. Finally the relationships between stock index variations and exchange rate fluctuations are analyzed.     

Prices, wages and fertility in pre-industrial England

To shed light on the economic-demographic mechanisms operating in the epoch of pre-industrial economic stagnation, a two-sector Malthusian model is formulated in terms of a cointegrated vector autoregressive model on error correction form. The model allows for both agricultural product wages and relative prices to affect fertility. The model is estimated using new data for the pre-industrial period in England, and the analysis reveals a strong, positive effect of agricultural wages as well as a nonnegative effect of real agricultural prices on fertility. Furthermore, it is demonstrated that there is strongly decreasing returns to scale with respect to labour in the agricultural sector and approximately constant returns to scale in the manufacturing sector. The analysis provides evidence in favour of the usual Malthusian model, as invoked by unified growth theories such as e.g. Galor and Weil (Am Econ Rev 90:806–828, 2000).     

Agglomeration and Welfare with Heterogeneous Preferences

This paper constructs a model of endogenous location of entrepreneurs with preference heterogeneity between individuals. Two main results are found. First, agglomeration and partial dispersion can be simultaneously stable but preference heterogeneity reduces the possibility of multiple equilibria. Secondly, measuring individual welfare in terms of equivalent income we show that in the case of agglomeration, the worst-off workers would prefer a dispersed equilibrium.     

Discussion of Corporate Governance Reform and Executive Incentives: Implications for Investments and Risk Taking

We discuss the strengths and weaknesses of the article by Cohen, Dey and Lys (CDL). Strengths include persuasive theoretical arguments for impacts of the Sarbanes Oxley Act (SOX) on corporate investment strategies and for several mechanisms through which firms influence changes in risky investments. CDL also provides intriguing opportunities for learning about impacts of external regulatory events and for enriching management accounting research and classroom discussions of management control. Weaknesses include (1) narrow scope, perhaps driven by archival data availability; (2) difficulties in implementing the research design and method; (3) possible bias of incentive and investment measures; (4) incomplete estimates of the effect of SOX on compensation, incentives, and investments; and (5) questionable control of endogeneity. We offer recommendations from extant literature to mitigate these weaknesses in future research.