Valuing urban accessibility and air quality in Sweden

This article is concerned with the implicit values of urban accessibility and air quality in Sweden. Based on the hedonic wage and rent theory, we construct an econometric model to compute such values, and illustrate their implications for regional welfare analysis. It is shown that for most Swedish cities, welfare has increased from 1986 to 1998 due to improved air quality but the positive effect is partly offset by the deteriorated accessibility in some areas. The results also indicate that the values people place on urban accessibility and air quality vary considerably across regions.     

Forecasting levels of log variables in vector autoregressions

Sometimes forecasts of the original variable are of interest, even though a variable appears in logarithms (logs) in a system of time series. In that case, converting the forecast for the log of the variable to a naïve forecast of the original variable by simply applying the exponential transformation is not theoretically optimal. A simple expression for the optimal forecast under normality assumptions is derived. However, despite its theoretical advantages, the optimal forecast is shown to be inferior to the naïve forecast if specification and estimation uncertainty are taken into account. Hence, in practice, using the exponential of the log forecast is preferable to using the optimal forecast.     

Trade protection and balance of payments problems

A model to be used for planning short-term in-patient medical care is presented. The individual clinic is treated as a production unit which produces different kinds of treated wardcases with a given technique of production (given production-cost-structure). It is assumed to maximize the yearly number of treated wardcases under the constraints of (1) The yearly demand for different kinds of treated wardcases, which is assumed to be proportional to the number of citizens within the area which the clinic serves (the clinics population), (2) The yearly budget which is assigned by public authorities and has to cover all costs as the medical care is supplied free of charge, (3) The clinics physical capacity, measured by the number of beds.

The model has been applied to the branch of general medicine using the estimated production-cost-structure at an existing clinic within this branch. The kind of information that one can get is illustrated, for example: Given a clinic with a certain technique of production (production-cost-structure) which optimizes its production in the way that the model assumes, what is the marginal effects of changes in the size of budget, physical capacity or the size of population? In the case of an existing clinic, perhaps it serves too big a population (the marginal effect of reducing this constraint is zero)? or, when establishing a given kind of clinic what is the best combination of population size, size of budget and physical capacity? How much of the demand will be unsatisfied with different combinations, i.e. how large will the queues become?     

WILDLIFE MANAGEMENT IN ZIMBABWE: EVIDENCE FROM A CONTINGENT VALUATION STUDY

If communities living adjacent to the elephant see it as a burden, then they cannot be its stewards. To assess their valuation of it, a contingent valuation method study was conducted for one CAMPFIRE district in Zimbabwe. Respondents were classified according to their preferences over the elephant. The median willingness to pay for the preservation of 200 elephants is ZW$260 (US$4.73) for respondents who considered the elephant a public good and ZW$137 (US$2.49) for those favouring its translocation. The preservation of 200 elephants yields an annual net worth of ZW$10,828 (US$196) to CAMPFIRE households. However, the majority of households (62%) do not support elephant preservation. This is one argument against devolution of elephant conservation. External transfers constitute one way of providing additional economic incentives to local communities.     

Driving Forces behind Exiting from Farming in Western Europe

This study examines the exit process of Western European farmers. Using a simple theoretical model of structural change, we examine empirically the impact of farm characteristics, macroeconomic conditions and policy intervention on farm exits during the 1990s. Econometric estimates using regional data for 110 regions in Western Europe indicate that exits from farming are strongly influenced by farm characteristics and policy conditions. In particular, exit rates are higher in regions with smaller farms and are closely related to production structures. Exit rates are lower in regions with more part‐time farming, high subsidy payments and high relative price increases for agricultural outputs, indicating that off‐farm income and government intervention slow down structural change in European agriculture.     

‘SMART GOODS’ AND MOBILE RFID A CASE WITH INNOVATION FROM VOLVO

This paper presents a case from Volvo that explores an innovative RFID solution that leverages the exiting infrastructures of mobile usage. ‘Smart goods’ is used to explain features applied through Radio Frequency IDentification, utilization of cellular networks (GSM/GPRS) and web technology together with collaboration among supply chain actors. This has reduced traditional barriers of entry. An empirical case provides the basis for evaluation from the perspectives of operational reliability, usability and productivity.     

The efficiency of selected moment methods in Gompertz-Makeham graduation of mortality

Summary

The King-Hardy method and the Hardy method mentioned in e.g. Miller (1946, 6.4) are old, well known moment methods in Gompertz-Makeham graduation of mortality. They have poor efficiencies (Forsén, 1977, App. F.6 and F.5), measured in terms of asymptotic variance, relative to the modified minimum chi-square method which is optimal (Hoem, 1972, 6.2, 7.2). This paper shows that a modification of the moment methods mentioned, gives a method that is “almost” as efficient as the best method available, and it is easier to use in practice.     

Wage Formation and Bargaining Power during the Great Depression*

We present an econometric analysis of wage behaviour in Norway during the interwar years. The analysis is based on a panel of manufacturing industry data using GMM estimation methods. Our empirical analysis shows that wage formation in the interwar period can be understood with the help of modern bargaining theory and well‐established wage equations. We estimate a long‐run wage curve that has all the standard features of being homogeneous in prices, proportional to productivity, and with a negative unemployment elasticity. We also present some new Monte Carlo evidence on the properties of the estimators used.     

The impact of conglomeration on the option value of equity

Using contingent claims analysis, I quantify the effect of risk-reducing corporate diversification on the value of equity as a call option on firm assets. The impact of conglomeration on firm risk is heavily conditioned on firm size. In contrast to small firms, the risk of large firms does not decline with increasing conglomeration. Accounting for this effect, the expected equity discount is much lower than commonly assumed and can even turn into a premium if the path dependency of equity is incorporated. My results stand in direct contrast to those of Mansi and Reeb (2002) and caution against using asset substitution as a qualitative argument for explaining economy-wide value phenomena.