Rice productivity improvement in Cambodia through the application of technical recommendation in a farmer field school

Innovation in rice (Oryza sativa) productivity improvement is a major goal for rice research. However, many studies have tended to analyse the various factors that affect productivity separately, while farmers invest their scare resources in farm inputs that impact on multiple factors in the real farm. This study assessed the effectiveness of integrated pest management practised during farmer field school (FFS) training in Cambodia on the production efficiencies, yields and profitability of rice farming. In total, 270 FFSs on rice cultivated in the early wet, wet and dry seasons were randomly selected from three provinces in 3 years to analyse the production practices and productivity using six cost-related factors: seed, planting methods, field management, fertilizer use, pesticide application and harvesting. It was found that yields and profits were significantly higher with the technically recommended practices (TRs) than with traditional farmer practices (FPs). However, the reverse was true for production costs due to the overuse of seed and pesticides in FP, neither of which are correlated with yield increase for both FP and TR. Thus, the FFS approach is a knowledge-intensive field management tool that enables the rational use of farm inputs and that is expected to be highly effective for sustainable rice production improvement.     

Non-cooperative bargaining and the incomplete informational core

In an exchange economy with incomplete information, the signaling core is defined by the set of state-contingent allocations to which no coalitions object under informational leakage through proposals by informed agents. An objection underlying the signaling core is supported by a sequential equilibrium of an ultimatum bargaining game with an informed proposer. We prove that a stationary sequential equilibrium allocation in a Rubinstein-type sequential bargaining game with a restart rule belongs to the signaling core if the belief of players satisfies a self-selection property.     

Probability weighting and default risk: a possible explanation for distressed stock puzzles

This paper suggests incorporating investor probability weighting and the default risk of individual firms into a consumption-based asset pricing model. The extended model provides a unified explanation for several anomalous patterns observed in financial markets. The analysis addresses not only widely recognized asset pricing puzzles, such as the equity premium puzzle, but also less-studied anomalies on financially distressed stocks. The simulation, under which the model is calibrated according to U.S. historical data, shows that a combination of mild overweighting of probability on tail events and nonlinearity of equity values caused by default risk has the potential to resolve these patterns.     

Fat tails and spurious estimation of consumption‐based asset pricing models

The standard generalized method of moments (GMM) estimation of Euler equations in heterogeneous‐agent consumption‐based asset pricing models is inconsistent under fat tails because the GMM criterion is asymptotically random. To illustrate this, we generate asset returns and consumption data from an incomplete‐market dynamic general equilibrium model that is analytically solvable and exhibits power laws in consumption. Monte Carlo experiments suggest that the standard GMM estimation is inconsistent and susceptible to Type II errors (incorrect nonrejection of false models). Estimating an overidentified model by dividing agents into age cohorts appears to mitigate Type I and II errors.     

Applying Multiattribute-Based Group Decision Making Techniques in Complex Equipment Selection Tasks

A practicing industrial engineer, even an experienced decision maker, needs help in the sense that there is a necessity to use more logical or analytical decision support tools, especially when dealing with control and instrumentation projects which are often worth millions of dollars. In this article we propose an algorithm which can support the process of group decision making relating to industrial automation, especially involving the selection of control and instrumentation equipment. The aim of this article is to look only at the algorithm's application and how it is applied. To this end, two test cases are used as examples: (1) selecting a local area network for installation in an academic environment; and (2) selecting an integrated control system for a real-world pulp and paper mill. Obtained results show that the algorithm leads to a satisfactory solution. A software form of the algorithm is being programmed for use as a decision support tool.     

On blocking coalitions: Linking Mas-Colell with Grodal–Schmeidler–Vind

In this paper we investigate the question of how many coalitions of a given relative size would block a non-Warlasian allocation in large finite economies. It is shown that in finite economies, if a Pareto optimal allocation is bounded away from being Walrasian, then, for any two numbers α$\alpha$ and β$\beta$ between 0 and 1, the proportion of blocking coalitions in the set of all coalitions with relative size between α$\alpha$ and β$\beta$, is arbitrarily close to 1/2, as the number of individuals in the economy becomes large.     

Inbound tourism policies in Japan from 1859 to 2003

This paper aims to clarify the development process of the inbound tourism policies of Japan from 1859 to 2003. Evolving through five periods and ten phases, policies have been variously promoted to obtain foreign currencies and break the country’s isolation at the earliest stage, to make it a peaceful and cultured nation via international exchanges and friendship after the Pacific War, and, more recently, to contribute to its economic revitalization in recession. The relationships between inbound and national land policies, as well as nonstructural aspects such as promotion, advertising, and services, are also examined.     

Pricing Commodity Spread Options with Stochastic Term Structure of Convenience Yields and Interest Rates

The purpose of this research is to provide a valuation formula for commodity spread options. Commodity spread options are options written on the difference of the prices (spread) of two commodities. From the aspect of commodity contingent claims, it is considered that commodity spread options are difficult to evaluate with accuracy because of the existence of the convenience yield. Hence, the model of the convenience yield is the key factor to price commodity spread options. We use the concept of future convenience yields to develop the model that enriches the stochastic behavior of convenience yield. We also introduce Heath-Jarrow-Morton interest rate model to the valuation framework. This general model not only captures the mean reverting feature of the convenience yield, but also allows us to handle a very wide range of shape that the term structure of convenience yield can take. Therefore our model provides various types of models. The numerical analysis presented in this paper provides some unique features of commodity spread options in contrast to normal options. These characteristics have never been addressed in previous studies. Moreover, it suggests that the existing model overprice commodity spread options through neglecting the effect of interest rates.     

ARE FISCAL SUSTAINABILITY AND STABLE BALANCED GROWTH EQUILIBRIUM SIMULTANEOUSLY ATTAINABLE?

This paper presents an examination of the sustainability of national debt and economic growth, and the growth effects of government debt and income taxation. Results show sustainability of national debt and economic growth under the primary surplus rule. Fiscal policy and balanced growth are compatibly sustainable if and only if the government sets a long‐run target debt/GDP (gross domestic product) ratio within a reasonable range. Results also show that a rise in the long‐run debt/GDP ratio reduces the balanced growth rate. Based on these two results, the long‐run debt/GDP ratio is greater than zero if the government aims to maximize the balanced growth rate.