The dynamics of phase farming in dryland salinity abatement

In Australia, soil salinisation has become a major concern. One way to deal with the problem is for farmers to plant trees or regenerate native bush. However, doing so raises several questions which involve optimal switching times, when switching involves a cost in the form of up-front investments. Optimality conditions are derived for the three-stage problem, and applied to dryland salinity control in Western Australia. Optimal management practices are found to be very sensitive to farmers' discount rates and to the speed at which the watertable rises or falls.     

Cooperative pricing and scale efficiency: The case of Korean rice processing complexes

Unlike most investor‐owned enterprises, cooperatives often have freedom to choose among a variety of firm objectives. Using 2002–2008 plant‐ and province‐level data, we ask in the present article which of several alternative maximands a Korean cooperative rice processing firm pursues. In contrast to earlier studies, farmer‐member supply functions are incorporated into the cooperative's optimization framework. We show that only large cooperative firms have operated at efficient scale, while small and medium‐sized ones have been scale‐inefficient. Because the latter operate where scale returns are increasing, mergers of small and medium‐sized cooperatives likely would be cost‐reducing and member‐return‐enhancing.     

International Trade,Technology, and the Wage Gap: Evidence from Granger‐causality Tests*

In this paper, we propose an alternative approach under which to examine the source of the increased wage gap between skilled and unskilled workers in US manufacturing. Rather than imposing the assumptions inherent in a given structural form, we posit a long‐run equilibrium relationship between international trade, technology, and the wage premium using a vector error‐correction model. We first test for the existence of a long‐run relationship using cointegration tests. If a cointegrating relationship is found, we then conduct tests on the direction of the long‐run relationship and of Granger causality. We apply our approach to each two‐digit and four‐digit SIC industry and find evidence in support of international trade being an important source of the wage gap. Our results suggest that it is premature to dismiss international trade as a possible suspect behind the rising wage premium.     

SYMMETRIC VERSUS ASYMMETRIC CONDITIONAL COVARIANCE FORECASTS: DOES IT PAY TO SWITCH?

Volatilities and correlations for equity markets rise more after negative returns shocks than after positive shocks. Allowing for these asymmetries in covariance forecasts decreases mean‐variance portfolio risk and improves investor welfare. We compute optimal weights for international equity portfolios using predictions from asymmetric covariance forecasting models and a spectrum of expected returns. Investors who are moderately risk averse, have longer rebalancing horizons, and hold U.S. equities benefit most and may be willing to pay around 100 basis points annually to switch from symmetric to asymmetric forecasts. Accounting for asymmetry in both variances and correlations significantly lowers realized portfolio risk.     

Decentralizing Allocation and Distribution by Separation with Information Transfers

Governments often divide operations into separate branches that face different constraints and have limited information. Such separation is feasible if each can operate by solving a simple optimization problem using limited information without requiring game-theoretic calculations about others' actions. We specify two structures of one-way information transfers that allow this. For each structure, we present conditions for unified and decentralized decision-making to have identical outcomes. One of them corresponds to using a Samuelson aggregate welfare function that is not always fully efficient. We apply our results to several examples, including public goods and Ramsey pricing.     

Transforming sales organizations through appreciative inquiry

The emergence of positive psychology has led to a change in the focus of researchers interested in psychological phenomena. Sales researchers, however, have been slow to adopt methods of positive psychology; few studies to date incorporate positive psychology constructs into the sales setting. One method of research consistent with positive psychology, called Appreciative Inquiry, has received a great deal of attention in recent years. Appreciative Inquiry is based on the assumption that positive individual and organizational change can be accomplished most effectively through a dialogue focusing on strengths and positive circumstances. This article is an initial attempt to examine the applicability of Appreciative Inquiry methods to the sales setting. © 2006 Wiley Periodicals, Inc.     

Odd‐lot Costs and Taxation Influences on Stock Dividend Ex‐dates

Abstract:   Past research has revealed significant abnormal ex‐date returns for stock dividends even though the ex‐date is known in advance and the distribution contains no new information. Various researchers have suggested that the higher transaction cost of selling odd‐lot share parcels compared to round‐lot share parcels is a key driver in the abnormal returns. However, no study to date has directly compared the ex‐date price reaction of stock dividends distributed when odd‐lot transaction costs were charged to those issued when odd‐lot costs were not evident. As odd‐lot trade costs were eliminated from the New Zealand Stock Exchange on 1 October, 1991, the New Zealand market provides a unique opportunity to directly test the role, if any, that odd‐lot transactions costs have in explaining stock dividend ex‐date returns. We find that prior to October 1991 stock dividend ex‐dates exhibit significantly positive returns, however, we do not find any significant ex‐date return once the higher odd‐lot transaction costs were removed. The New Zealand market also enables us to examine an imputation tax based argument of the ex‐date price reaction and we find evidence that imputation tax credits have a value greater than zero.