The challenge of long-term structural change

In the next 15 years, provided that aggressive rearmament is avoided, the world economy is likely to grow relatively slowly and erratically, constrained by the availability of oil. Besides energy, two other factors are challenging the established economic order—Third world industrialisation and new technologies. The author argues that the only way for a developed economy, particularly the UK, successfully to meet all three challenges is by adopting these new technologies as quickly as possible: to yield to protectionist pressures would be self-defeating since growing Third world markets will be essential to the growth of the developed world. The policy dilemma is that slow growth and rising unemployment exacerbate the rigidities of the system and slow down adjustment at a time when the need for change is at its greatest.     

A microbiological survey of communal kitchens used by undergraduate students

The majority of food poisoning cases occur in the domestic environment as a result of inadequate hygiene practices. The possibility of food safety errors may be increased in domestic kitchens that are shared. However, there is very little information concerning the hygiene of these kitchens. This study investigates the microbial load of key sites in six student communal kitchens. In addition, hygiene was evaluated visually and questionnaires were used to assess the hygiene practices of the kitchen users. Results show that visual hygiene assessments are not a good indicator of microbial contamination, which, in this study, reveal poor levels of hygiene. Food safety errors were commonly made by users of the kitchens and their food hygiene practices suggest limited food safety knowledge and/or an absence of feelings of responsibility for the hygiene standard of the kitchen.     

Integrating Ethics Content into the Core Business Curriculum: Do Core Teaching Materials Do the Job?

Some business schools have integrated business ethics issues into their core functional courses rather than simply offering a separate ethics course. To accommodate such a strategy, functional faculty members usually teach ethical issues, a task for which they are rarely trained. However, learning materials are available: some core course textbooks provide additional coverage of ethics, and case studies (and accompanying teaching notes for instructors) are also available which cover ethical issues. This paper reports on an analysis of these materials. We find that a sample of the leading textbooks provides only very superficial coverage of ethical issues. Cases provide a wide range of issues suitable for class discussion, but their teaching notes in many cases provide little guidance for instructors unfamiliar with teaching ethics. Thus there remains a need for teaching resources for business faculty new to teaching ethics.     

Organizational Learning in Cooperative Alliances: Some Case Studies in Biotechnology

Dedicated biotechnology firms (DBFs) have played an important role in commercializing biotechnology. They emerged first in the US and, after a 5-year time lag, they also appeared in Europe. Faced with long and costly product lead times, DBFs raised money by entering into research contracts, mainly with large chemical and pharmaceutical companies. These coopertive research alliances have not vanished as biotechnology has matured and are more in evidence today than they were in the early dasy of the commercialization of biotechnology. This paper investigates how and why large and small companies enter research collaborations, what they learn from working together, and the effects on European competitiveness.     

A New Prepayment Model (with Default): An Occupation-time Derivative Approach

A new prepayment model is developed, which improves the modeling of the borrowers decision process by incorporating an occupation-time derivative in the valuation framework of a fixed-rate mortgage. This option-theoretic mortgage valuation model is based on stochastic house-price and interest-rate models, and requires a particularly subtle technique to incorporate a new type of occupation-time derivative, where the barrier (which activates the derivative) is in the value process and not the underlying process (as it is in standard occupation-time derivatives). This new model simulates a delay in prepayment by the borrower (beyond the time simple ruthless prepayment dictates), thus increasing the value of the mortgage to the lender, compared to the value gained using more basic models. This allows for a more advanced borrower decision process, where a rational exercise structure is retained in a modified form. Empirical evidence supports this theory, which should be beneficial for accurate mortgage-backed security pricing. The results in this paper explore thoroughly the effect on the mortgage value of a delay in prepayment by the borrower on the embedded options held and on the insurance component.

Greasing the wheels of rural transformation? Margarine and the competition for the British butter market

This article considers an example of the impact of a new good on producers of close substitutes: the invention of margarine and its rapid introduction into the British market from the mid‐1870s. This presented a challenge to the traditional suppliers of that market, butter producers from different European countries. We argue that the capacity to react quickly to the appearance of this cheap substitute by improving quality and establishing product differentiation was critical for the fortunes of butter producers. This is illustrated by a discussion of the different reactions to margarine and quality upgrading in Ireland, Denmark, and the Netherlands. A statistical analysis using monthly data for Britain from 1881–7 confirms that margarine had a greater impact on the price of poor quality butter than that of high quality butter, presumably because it was a stronger substitute.