Where have all the traditional classroom settings gone?—The use of large scale, public sector projects to illustrate a multidisciplinary approach to problem solving

This work describes the evolution and potential of an elective course for students who have already been exposed to the standard techniques of problem solving as presented in traditional courses. Students apply these techniques to large scale problems in directed mullidisciplinary project teams. In doing so, they are provided with a unique learning experience allowing them to serve as a resource to the community. Course projects described here include the promotion of a railing retail district; the formulation, implementation and monitoring of litter reduction strategies; the economic evaluation of using inmate labor to clean public areas; and economic comparisons of recycling strategies for used tires.     

Risk Management Using Quasi–static Hedging

In this paper, we try to develop a comprehensive theory of risk management for illiquid trading instruments and exotics by examining the consequences of a quasi–static hedging strategy. In contrast to a static hedging strategy, in which an initial hedge once executed is kept in place for the life of the trade, and a dynamic hedging strategy, in which hedges are frequently adjusted over the life of the trade, a quasi–static hedging strategy utilizes hedge adjustments but tries to minimize the frequency. Almost all the examples studied in the framework introduced here take this minimization to the extreme by limiting hedge adjustments to at most one during the life of a trade. We examine the application of this approach to long–dated forwards, long–dated options and exotic options such as cliquet and barriers. The model we present for barriers is a new generation of the Derman–Ergener–Kani approach which combines the flexibility of the approach with a sizable increase in model independence.     

ISSUES IN INSURANCE AND RISK MANAGEMENT EDUCATION

Abstract: The risk management and insurance discipline faces a number of challenges. The author poses some questions which focus on those challenges.     

Some differences between licensed and internalized transfers of machine tool technology: An empirical note

This note uses survey evidence drawn from the machine tool industry in three countries to identify some of the differences in form between technology transfers which are internalized and those governed by licensing contracts between independent firms. The results show that, consistent with transactions cost theory, the internalized mode of governance leads to the transfer of a much broader range of information and skills than licensed transactions.     

Beyond Self-Regulation: Towards A Critique of Self-Regulation As A Control Strategy For Hazardous Activities*

After highlighting some of the key issues and positions in the debate around appropriate preventive regulation, the paper presents a number of observations directed at the proponents of greater self-regulation. These observations confront directly a number of familiar, but often unchallenged, arguments for self-regulation. More centrally we address claims concerning, the extent to which the chemicals industries have a good and improving ‘safety’ record; and whether the sector consists of companies both motivated and capable in the context of effective crisis and disaster management. Lastly, the paper sets out some ‘new directions’ for the nature and role of regulation in the effective prevention of crises. Thus the paper indicates a number of regulatory developments which are distinct from any shift towards greater self-regulation, but which would result in more effective crisis and disaster prevention in the UK chemicals industries and, indeed, beyond that specific sector.     

STRATEGIC INVESTMENT DECISION-MAKING: COMPLEXITIES, POLITICS AND PROCESSES*

This article is a preliminary report on an investigation into the processes of investment decision-making. Three case studies from three firms are presented which show disparities in a number of aspects of process, for example, the length of time taken to arrive at a decision, the number and intensity of disagreements and uncertainties encountered. Data were collected for these cases through semi-structured interviewing from multiple informants in the three organizations, thereby permitting the use of analysis of variance techniques of the different perspectives given by informants. Perceptions of the effectiveness of the decisions were also gathered. One finding from the study is that the decisions with the lowest perceived effectiveness (in firm HE) also lost support from those involved in making the decision during the process, although the decision was eventually implemented. This decision also had the least agreement amongst informants as to the main sources of disagreements. Informants of all three decisions saw effect upon product quality and productivity, fit with business strategy and competitive position of the company as the most important factors to take into account in evaluating the decisions. In firm CG, however, there were disagreements as to how the investment should be evaluated. In the conclusions to the article a disucssion is given as to the nature of evaluation procedures in relation to the developing theory of information systems.     

Asymmetric FDI and tax-treaty bargaining: theory and evidence

Tax treaties are often viewed as a mechanism for eliminating tax competition, however, this approach ignores the need for bargaining over the treaty's terms. This paper focuses on how bargaining can affect the withholding taxes set under the treaty. In a simple framework, we develop hypotheses about patterns in treaty tax rates. A key determinant for these patterns is the relative size of bilateral foreign direct investment (FDI) activity. In plausible situations, more asymmetric countries will negotiate treaties with higher tax rates. This theory is then tested using 1992 data from US and Organization for Economic Cooperation and Development (OECD) bilateral tax treaties. Overall, the data supports the prediction that greater asymmetric FDI activity increases the negotiated tax rates.     

Professional design and primary children

An analysis of the way in which primary age children design, particularly when working with a professional designer, suggests that there are several similarities in approach between the two. This observation is supported by evidence from developmental psychology, which has stressed the crucial role which play performs in developing children's inventiveness and ability to solve problems. Subsequent research focusing on children's designing suggests that this play is fundamental to designing activity, and extends naturally into the more formalised activities of drawing and modelling. Through playing and using narrative language to describe their actions, children are learning to interpret their own mental images. To develop these images and make them more concrete children use their hands in drawing and modelling whilst drawing on their accumulated personal knowledge about the activity of designing, in a similar way to that in which professional designers make use of their own, highly sophisticated skills to bring an idea to concrete fruition. By comparison with some of the rigid models of the design process described in schools, designers and children may have more in common than we realise.