ASSISTING DEMOBILIZED RUSSIAN OFFICERS OBTAIN HOUSING: THE HOUSING CERTIFICATE OPTION

Under the dwelling purchase certificate program a retired or demobilized Russian officer returning from the "near abroad" is given a certificate which he can use to purchase a new housing unit in the market. The certificate is priced at estimated market price of dwellings, and prices vary by unit size and location (region). There was great uncertainty when the program was launched as to whether officers would find units available for purchase. In fact, most officers succeeded in using their certificate and most contacted several sellers in searching for housing.     

A Classification of Dutch Manufacturing based on a Model of Innovation

Summary The paper studies the degree of homogeneity of innovative behavior in order to determine empirically an industry classification of Dutch manufacturing that can be used for policy purposes. Defining homogeneity in terms of an economic model distinguishes our classification from existing taxonomies such as those of the OECD, Pavitt and the various classifications based on a principal components analysis. We use a two-limit tobit model with sample selection, which explains the decisions by business enterprises to innovate and the impact these decisions have on the share of innovative sales. The model is estimated for eleven industries based on the Dutch Standard Industrial Classification (SBI 1993). A likelihood ratio (LR) test is then performed to test for equality of the parameters across industries. We find that Dutch manufacturing consists of three groups of industries in terms of innovative behavior, a high-tech group, a low-tech group and the industry of wood. The same pattern shows up in the three Dutch Community Innovation Surveys. The empirical part of this study has been carried out at the Centre for Research of Economic Microdata at Statistics Netherlands. The authors wish to thank Statistics Netherlands, and in particular Bert Diederen, for helping us in accessing and using the Micronoom data set. The views expressed in this paper are solely those of the authors. The authors also wish to thank Fran?ois Laisney, Patrick Waelbroek and participants at presentations in Maastricht, Strasbourg, Leuven and Lille for their helpful comments. The first author acknowledges financial support from METEOR.     

Applicability of the market appeal—robusticity matrix: a case study of heritage tourism

Hong Kong is a city where contemporary global culture coexists with traditional Chinese heritage. One way of promoting Hong Kong's traditional built heritage is to develop a number of linked sites as a heritage trail. For helping the development of such, this study evaluates the applicability of the market appeal—robusticity matrix on heritage tourism development, by assessing the potential for tourism in the single-surname villages of Hong Kong's New Territories. The study techniques include documentary research, questionnaire survey and interviews. The findings indicate the matrix is effective for enabling the assessment of heritage tourism potential because it simultaneously demonstrates the importance of two major considerations for both tourism industry and heritage managers, namely market appeal—an asset's appeal to tourists, and robusticity—its ability to endure visitation. The shortcomings of the model includes the inappropriateness of the technical term “product design needs” in the market appeal subset and lack of community concerns in the robusticity subset of the matrix.     

THE STOCK PRICE REACTION TO SUPPLY CHAIN MANAGEMENT ADVERTISEMENTS AND COMPANY VALUE

The research examines the stock price reaction to the announcement of the adoption of supply chain management‐enhancing tools and technologies to determine whether there is a significant response from the capital markets. The results show that the adoption of supply chain management‐enhancement tools appears to be value creating. The strength of the stock price reaction is positively related to the degree of certainty regarding the publication date of the publication.     

Grains — more or better storage?

From time to time attention is directed to startling losses in livestock and crops caused by parasites and diseases, many of which occur during storage.¹ It is important that the losses be reduced. Reduction of losses in storage in particular: (a) makes more food available from a given amount produced; (b) makes more of it available for the poor, who suffer most from shortages; and (c) makes it available at the time of greatest scarcity, before the next production season or harvest.² It is, however, equally important that resources should not be wasted in misguided efforts to reduce waste. In the normal condition of cruelly restricted resources, these should be used to reduce waste only if the return in doing so is as good as, or better than, in other activities.     

Dynamic tariffs with asymmetric information

Recent developments in dynamic game theory are applied to determine when two countries can sustain freer trade given that they determine trade policies non-cooperatively. Countries know their own level of protection, but not the other country's level of protection. Using import trigger strategies, cooperation (in the form of low tariffs) can be supported, although there are periodic reversionary (high tariff) episodes. However, if terms of trade trigger strategies are used, cooperation does not occur.     

DURATION,IMMUNIZATION, AND HEDGING WITH INTEREST RATE FUTURES

The recent advent of the interest rate futures markets has greatly enriched the hedging opportunities of market participants faced with undesired interest rate risk. The variety of futures contracts presently spans a number of instruments with different risk, maturity, and coupon characteristics. This paper modifies the concept of duration and extends the duration hedging approach to cases where futures contracts are used as the hedging instrument. The derived hedge ratios take into account differences in coupon, maturity, and risk for three different regimes. Usage of these hedge ratios should lead to more efficient hedging of interest rate risk.