The Cost Efficiency of Real Estate Investment Trusts: An Analysis with a Bayesian Stochastic Frontier Model

Using a stochastic frontier methodology that incorporates Bayesian statistics, this paper analyzes the cost efficiency of real estate investment trusts (REITs) by observing the deviations of the measured costs of individual REITs from a defined efficient cost frontier. Using 1995–1997 data, we extend the previous research in this area and measure REIT efficiency more precisely by isolating random measurement error from the overall deviations from the efficient cost frontier. We calculate the magnitude of each REIT's managerial inefficiency, the industry inefficiency, and returns to scale. In addition, we assess specific characteristics of REITs for their contribution to inefficiency by calculating the odds ratio that a REIT with a specific characteristic is more efficient than a REIT with an alternative characteristic. The results show that, for the years studied, REITs are relatively cost efficient with most REITs facing increasing returns to scale. Additionally, the REIT's use of debt and the REIT's management style significantly affect the cost performance of REITs during the aforementioned time period. Finally, diversification across property types, as measured, does not seem to influence REIT cost efficiency.     

Single Market effects on productivity in the German insurance industry

The Single Market project of the European Commission was supposed to foster productivity growth in the financial service industry. We assess its consequences on productivity development in the German insurance industry, one of the largest insurance markets within the European Union, by applying Data Envelopment Analysis to a panel of German insurance companies. We estimate standard and bootstrapped efficiency scores for the years 1991 through 2006 and apply a test on scale efficiency based on bootstrapped statistics. Furthermore, we compute a Malmquist index and test for different types of productivity convergence across firms.     

Produktinnovationen und Produktmodifikationen in der Versicherungswirtschaft: Rolle und Bedeutung nach der Deregulierung

One consequence of the deregulation of the insurance industry in 1994 is a considerably improved scope for insurance companies to design products. Therefore, the question should be raised if there is an observable effect on the insurer’s behaviour with regard to the development of new products. This paper embodies results of an empirical study that collected data of 650 products that were launched in the German insurance industry between 1996 and 2005 and that could be categorised as product innovations or as product modifications. On the basis of the study, it was possible for the first time to provide quantitative evidence that in the whole industry the amount of product innovations (in average 2,4 per year) as well as of product modifications (in average 63 per year) stayed on a modest level after the deregulation and that the evaluated impact of the deregulation on the development of new products is relatively small. This is also demonstrated by the fact that 27% of all German insurers developed only one new product in ten years. In addition, it became evident that there is no significant change in the extent of the (small) impact in the last ten years. Thus, the deregulation itself only sent limited impulses for renewing products in the German insurance industry. Apparently, the theoretical considerations are supported that while considering a high entrepreneurial risk and the absence of a monopoly rent at the same time the Value Based Management imposes a high hurdle for the insurance industry to develop new products. The role of renewing products is therefore determined by their value contribution to companies and customers, whereas the deregulation itself marginally changed this role.     

在变化的金融体系中维护金融稳定:吸取历史教训

本文为美国堪萨斯联储行长、经济学家Hoeing在EMEAP-BCBS-FSI联合举的亚太区银行监管高级会议上的主题发言.本文以金融结构演进为切入点,从理论层面分析了次贷危机的根源及对现行监管制度和维护金融体系稳定政策带来的挑战.作者的观点有助于业界深入思考金融市场化取向的改革、金融创新的利弊、金融监管制度乃至金融稳定政策的调整等重大前沿性问题.     

Alert or oblivious? Factors underlying consumer responses to marketing stimuli

Recently published studies have introduced consumer researchers to uses of priming theory in marketing messages. A two‐factor model of assimilation and contrast effects has been proposed which focuses on aspects of message context and cognitive resource differences between consumers. However, these accounts do not consider an important additional factor pertinent to the production of category‐based contrast effects in response to marketing communications. This article discusses recent priming research and presents theoretical discussion in support of the putative third factor of consumer wariness for predicting judgmental outcomes of priming effects in consumer market settings. © 2000 John Wiley & Sons, Inc.     

Response to haar's comment— and the beat goes on: Corporate downsizing in the twenty‐first century

Corporate downsizing continues to be a major strategy used by organizations to cope with a dynamic and turbulent global marketplace. A fundamental assumption made by executives is that this strategy improves the financial health of the corporation. De Meuse, Vanderheiden, and Bergmann (1994) examined several indices of financial performance over a five‐year period and found that firms employing downsizing experienced a deterioration in financial performance rather than an improvement. Haar (1999) questioned the findings of this study, asserting that if a company's risk level would have been included in the analysis, their results could have been different. In the present investigation, risk was incorporated in the original analysis. Again, the findings strongly indicate that downsizing was not an effective corporate strategy for enhancing the financial performance of corporations. © 1999 John Wiley & Sons, Inc.     

Long‐term effects of alcohol warning labels: Findings from a comparison of the United States and Ontario,Canada

Since 1989 the U.S. federal government has required warnings on alcohol containers. Findings are presented from telephone surveys conducted between 1990 and 1994 in the U.S. and Ontario, Canada, the no‐treatment reference site. In the U.S., penetration peaked in 1993–94, with 43% of the lifetime drinkers reporting label awareness. Label exposure was weaker (<20%) for all years in the reference site. The proportion reporting conversations about drinking during pregnancy was higher among label seers in both sites. Those seeing labels in the U.S. were more likely to engage in conversations about drinking and driving than those not seeing. Reports of limiting drinking for health reasons showed a positive association with label exposure increasing with time. In the U.S. only, across all years, controlling for age, gender, education, and alcohol consumption, label seers were more likely to drive after drinking too much, but also to say they had deliberately not driven after drinking during the last year. Findings from this quasi‐experiment cannot establish causal relationships, but the pattern of results, though mixed, suggests modest effects on conversations and several precautionary behaviors related to risks of drinking. The label's effects may partially offset an overall trend toward lower public concern about health risks of alcohol. Results are interpreted as consistent with Congressional intent to remind people of certain hazards of drinking, especially during pregnancy or before driving vehicles. © 1999 John Wiley & Sons, Inc.