New Directions: Cambridge–Maastricht Symposium 2001

The Journal of Real Estate Finance and Economics -     

Assessing South Africa Learners’ Attitudes Towards Technology by Using the PATT (Pupils’ Attitudes Towards Technology) Questionnaire

The PATT (Pupils’ Attitude Towards Technology) questionnaire, as validated for the USA, was used to assess and analyse South African learners’ attitudes towards technology. The responses of 500 girls and 510 boys, from the Gauteng Province in South Africa, were analysed using a principal component and a principal factor analysis. The explained variance was rather low and indicated that the questionnaire needed adaptation for the South African context. The outcomes of the research were positive in that there were no significant differences regarding the gender attitudes that ‘technology should be for all’ and that ‘technology makes contributions to society’. The fact that girls have a stronger gender discrimination view related to themselves regarding technology needs to be addressed in future curriculum development issues. This revised version was published online in July 2006 with corrections to the Cover Date.     

Internalising the costs of fragmentation and nutrient deposition in spatial planning: Extending a decision support tool for the Netherlands

The Land Use Scanner (LUS) is a decision support system for land use planning that is widely used in the Netherlands. The model yields solutions that have a high resolution (500×500 m) and reflect economic equilibrium in the land market, in which eighteen types of land use and nine aggregated habitat types competitively bid for locations. Here, an extension to the LUS is presented that enables the internalisation of environmental externalities. The focus in this study is on two important externalities, namely ammonia emissions from agriculture and habitat fragmentation. We simulate four IPCC-based land use scenarios and assess the level of fragmentation of the nine habitat types. We also perform sensitivity analyses in the most market-oriented scenario on the effectiveness of market-based instruments in promoting more efficient land allocation. The simulation results suggest that particularly the habitat type ‘rain-fed mires and bogs’ is susceptible to fragmentation. The sensitivity analyses show that internalising the damage costs of fragmentation resulted in smaller changes in land allocation than internalising those of nitrogen deposition. For both instruments, the policy effort was large in relation to the efficiency gains in land allocation.     

Corporate Communication or McCommunication? Considering a McDonaldization of Corporate Communication Hypothesis

In this essay the perspective of Ritzer's McDonaldization of Society Thesis is the starting point for developing hypotheses about corporate communication (CorpCom). The central idea of McDonaldization is that increasing numbers of organizations are run as fast food restaurants, focusing on: efficiency, calculability, predictability, and control of people. That produces a form of rationality that becomes irrational. It is hypothesized that CorpCom is an ally of McDonaldization and the more the principles of McDonaldization are applied the more McDonaldized CorpCom becomes. This “McCommunication” could be less effective in gaining identification, support and trust from stakeholders than non-McDonaldized CorpCom.     

The impact of employers' recruitment behaviour on the allocation of vacant jobs to unemployed job seekers

This paper is focused on the allocation of vacant jobs to job seekers from a demand side perspective by studying the recruitment behaviour of employers. A model is developed to analyze the role of search and selection methods of employers as determinants of the probability that an unemployed person will be hired for a certain type of job. In an empirical application for the Dutch labour market, we have examined the effect of employer's recruitment behaviour on the allocation of vacant jobs to employed, unemployed and school-leaving job seekers.We find that job requirements for the applicants with respect to work experience are the most important determinant of the probability that an unemployed person will be selected to fill a vacant job. In addition, the use of advertisements by employers for jobs requiring high skill levels does also have a significant effect.     

Exchange rate volatility and international trade: A general-equilibrium analysis

We analyze the relation between exchange-rate volatility and the volume of international trade, in a general-equilibrium stochastic-endowment economy with imperfect international commodity markets, and treating both variables as endogenous. Even in the simplest model, the sign of the relation depends on the source for the change in volatility. For instance, more volatility of the endowments and higher costs to international trade both boost exchange risk (and lower welfare); but the first increases the expected volume of trade, while the second decreases trade. Note that even the (inter-equilibria) relation between trade and welfare is ambiguous.     

Selecting a Bond-Pricing Model for Trading: Benchmarking, Pooling, and Other Issues

Abstract:  Does one make money trading on the deviations between observed bond prices and values proposed by bond-pricing models? We extend Sercu and Wu's (1997) work to more models and more data, but we especially refine the methodology. In particular, we provide a normal-return benchmark that markedly improves upon the Sercu-Wu ones in terms of noisiness and bias, and we demonstrate that model errors contribute more to the variance of residuals—actual minus fitted prices—than pricing errors made by the market. Trading on the basis of deemed mispricing is profitable indeed no matter what model one uses. But there is remarkably little difference across models, at least when one re-estimates and trades daily; and with pooling and/or longer holding periods the results seem to be all over the place, without any relation to various measures of fit in the estimation stage. We also derive and implement an estimator of how much of the typical deviation consists of mispricing and how much is model mis-estimation or mis-specification. Lastly, we find that pooled time-series and cross-sectional estimation, as applied by e.g., De Munnik and Schotman (1994) , does help in stabilizing the parameter, but; hardly improves the trader's profits.     

How Does the Market for Corporate Control Function for Property Companies?

We investigate 95 takeovers of property companies all over the world and find that only two of those are hostile. To determine the effectiveness of the market for corporate control, we first study characteristics of targets and acquirers compared to a control sample, using the complete global universe of listed property companies during the most recent takeover wave (1999–2004). We find that the inefficient management hypothesis holds for both REITs and non-REITs, as targets exhibit significant underperformance before takeovers. In the second part of this study, we investigate shareholder wealth effects following takeovers and confirm previous findings that abnormal returns for targets and bidders are distinctly different for the real estate sector. Moreover, we show that this difference not only holds for REIT-to-REIT mergers, but also for mergers of real estate firms without a REIT-status.