Demystifying the Meese–Rogoff puzzle: structural breaks or measures of forecasting accuracy?

Structural breaks have been suggested by several economists as a possible explanation for the Meese–Rogoff puzzle, in the sense that an exchange rate model can outperform the random walk in terms of the out-of-sample forecasting error if the period under investigation is free of structural breaks. The results indicate that structural breaks cannot explain the inability of the flexible price monetary model to outperform the random walk. The only plausible explanation for the Meese–Rogoff puzzle is that forecasting accuracy is traditionally assessed by magnitude-only measures. When forecasting accuracy is assessed by alternative measures that do not rely exclusively on the magnitude of error, the monetary model can outperform the random walk regardless of the presence or otherwise of structural breaks.     

Applying Target Costing in the Development of Marketable and Environmentally Friendly Products from Swine Waste

Management of swine waste generated in the United States is a challenging problem facing engineers, farmers, scientists, regulators, and policy-makers. Technologies for processing and storing swine waste have not been fully developed and refined in a manner acceptable to the public and environmental regulators. The primary concerns with improperly disposed swine waste are the effects on human and livestock health, surface and groundwater quality, air quality, and conservation of nitrogen fertilizers (Hagenstein 2003 Hagenstein, P. R. 2003. Air Emissions from Animal Feeding Operations: Current Knowledge, Future Needs, Washington, D. C.: National Research Council, National Academy Press.  [Google Scholar]).

The purpose of this study is to demonstrate the concept of target costing by applying it to a very specific example: the production of biomethanol from swine manure. This study summarizes the analyses that outline a design and calculate a preliminary cost estimate for a proposed system for producing biomethanol from swine manure (initial process). In this study the target costing process is demonstrated with calculation of a target cost. This article also demonstrates an application of value engineering as a systematic, interdisciplinary examination of factors affecting the cost of a product so as to find means to fulfill the product's specified purpose at the required standards of quality and reliability and at an acceptable cost.

The article is organized as follows. First, the purpose of applying target costing methodology to the development of marketable by-products from swine manure is outlined. Next, target cost is calculated for biomethanol made from swine manure based on current methanol prices and currently available subsidies for biomethanol made from swine manure. A system for producing biomethanol from swine manure is described. The current cost is calculated for producing biomethanol. Concepts of value engineering are employed to reduce a significant cost component of the initial process resulting in Process II. Finally, value engineering is employed the second time to further reduce the cost of Process II yielding Process III.     

Tradeoffs Among Resource,Social, and Managerial Conditions on Mountain Summits of the Northern Forest

This research examined the relative importance of indicators and standards of quality at three mountain summits in the Northern Forest. The three summits ranged from low to high levels of use, development, and management. Computer-generated photographs were used to present a range of resource, social, and managerial conditions in a stated choice survey. Results suggest that visitors prefer minimal resource impact, few other people, and low intensity management. However, when faced with tradeoffs, respondents accept more intensive management to help ensure resource protection. Findings also suggest that a range of recreation opportunities should be provided at mountain summits in the Northern Forest.     

The link between hunting goals and strategy and harvest outcome

Abstract

This article explores relationships among hunting goals, hunting strategies, and harvest success and attempts to assess if and how the relationships between harvest and nonharvest goals and harvest outcomes change in the presence of selected intervening hunting strategy variables. Log‐linear analysis examines the relationship among harvest outcome, hunting goals, and hunting strategies. Hunting strategies were found helpful in explaining the patterns of harvest outcome, suggesting that how a person hunts may be as important as why they hunt. Hunting strategy is seen as a viable concept for use in future investigations.     

Barrier option pricing: a hybrid method approach

This paper adapts the hybrid method, a combination of the Laplace transformation and the finite-difference approach, to the pricing of barrier-style options. The hybrid method eliminates the time steps and provides a highly accurate and precise numerical solution that can be rapidly obtained. This method is superior to lattice methods when trying to solve barrier-style options. Previous studies have tried to solve barrier-style options; however, there have continually been several disadvantages. Very small time steps and stock node spaces are needed to avoid undesirable numerically induced oscillations in the solution of barrier option. In addition, all the intermediate option prices must be computed at each time step, even though one may be only interested in the terminal price of barrier-style complex options. The hybrid method may also solve more complex problems concerning barrier-style options with various boundary constraints such as options with a time-varying rebate. In order to demonstrate the accuracy and efficiency of the proposed scheme, we compare our algorithm with several well-known pricing formulas of barrier-type options. The numerical results show that the hybrid method is robust, and provides a highly accurate solution and fast convergence, regardless of whether or not the initial asset prices are close to the barrier.     

New development: Spin-outs and social enterprise: the ‘right to request’ programme for health and social care services

The ‘right to request’ policy encouraged and supported National Health Service (NHS) community health staff in England to ‘spin out’ services into independent social enterprises. This article considers the processes and outputs of the initiative and reflects on the likelihood of positive outcomes for patients being achieved. It highlights lessons for future programmes seeking to transfer services out of public ownership.     

Food for Thought? A Rejoinder on Peer-review and RAE2008 Evidence

This Rejoinder responds to criticisms made by Simon Hussain (2011) Hussain, S. 2011. Food for thought on the ABS Academic Journal Quality Guide. Accounting Education: an international journal, 20(6), : 545–559. [Taylor & Francis Online] , [Google Scholar] about the construction and operation of the Association of Business Schools' (ABS) Academic Journal Quality Guide. In this paper the broad purposes of journal lists and guides are outlined before an account is given of the long history and multiple forms of these lists, particularly in the field of Accounting. Having described the main features of different types of journal list, the advantages and benefits of the approach adopted in the compilation of the ABS Journal Quality Guide is outlined. The paper then ends by noting that one of the copy-editing mistakes identified by Dr Hussain has been rectified, but the remaining concerns about the rating of accounting education and accounting history journals reflect the absence of these titles from journal citation reports and international journal lists. Furthermore, the lower rating of Accounting & Finance research in the RAE2008 in comparison with Business & Management Studies research in the same year and Accounting & Finance research in 2001, has more to do with the way in which the Accounting & Finance Panel calibrated and normalized its judgements than with the ratings contained within the ABS Guide.     

Social Return on Investment (SROI) and Performance Measurement

Abstract

Social enterprises are being promoted as responsive and innovative way to deliver public services. As part of this promotion, these organizations are being required to demonstrate the social and economic value they generate. Social return on investment (SROI) is a performance measurement tool currently being encouraged to capture this impact. This paper draws on survey and interview data to analyse how SROI is used and understood in health and social care settings. It indicates that despite being accepted as an internationally recognized measurement tool for social enterprise, SROI is underused and undervalued due to practical and ideological barriers.