Applying financial portfolio and multiple criteria approaches to product line decisions

This article describes the application of decision rules from financial portfolio theory to the evaluation of product lines. The focus is on the risk/return implications of an “add” decision to the total portfolio versus the individual product. Multiple criteria approaches that aid product line evaluations are also presented.     

A taxonomy of manpower—educational planning models

In the last decade the literature has recorded several works concerned with the applications of network flow-like models to the area of manpower planning, and specifically the management manpower training program to assure that supply will meet the demand. Because the system which these models attempt to describe and/or decisions which they prescribe are rather complex in the real world, each of these models has imbedded in them certain simplifying assumptions. On the other hand, each incorporates different aspects of what is real. This paper develops a taxonomy of the landmark developments in this area. The taxonomical schema is then used to unify the models in consideration of the decision factors used. The schema envisions a general model containing all the factors which are explicitly or implicitly considered in the existing literature as being germane. The schema lends itself to both the identifying of those models which might be of interest and not available in the literature on the one hand and it shows in bold relief the similarities and differences between existing models.     

Efficient rank tests for semiparametric competing risk models

We consider a semiparametric competing risk model given by k independent survival times. The paper offers an asymptotic treatment of tests for the semiparametric null hypothesis of equality of the underlying risks. It turns out that modified rank tests are asymptotically efficient for certain semiparametric submodels, where the baseline hazard is a nuisance parameter. In addition, the asymptotic relative efficiency of the present tests is derived. A comparison of asymptotic power functions can then be used to classify various tests proposed earlier in the literature. For instance a chi-square type test is efficient for proportional hazards. Data driven tests of likelihood ratio type are proposed for cones of alternatives. We will consider certain stochastically increasing alternatives as a special example. The paper shows how the concept of local asymptotic normality of Le Cam works for hazard oriented models.     

Non-Segmented Equilibria Under Differential Taxation: Evidence from the Canadian Government Bond Market

This paper investigates tax effects in the Canadian governmentbond market during the period 1964—1986. Unlike previousstudies, we apply both statistical and nonstatistical teststoanalyze clientele effects and market equilibria. The resultsdivide the sample into two distinct periods of time, with theend of 1976 marking the division. We find that tax effects arealmost nonexistent in the Canadian government bond market beforethe end of 1976, but are predominant in the post-1976 period.Non-segmented market equilibria cannot be rejected before 1977,but are strongly rejected after 1976. In fact, segmented equilibriawith clientele effects in both quantities and prices characterizethe entire five year period from 1982 to 1986. These findingsare consistent with tax reforms, government deficit financingand interest rate fluctuations in Canada during our sample period.     

Income and religion: a heterogeneous panel data analysis

A recent empirical literature has addressed the relationship between income and religion, but most of the studies are based on microdata. Macroeconomic analysis of the issue has largely ignored the potential heterogeneity between countries. Using retrospective data on church attendance rates for a panel of countries between 1925 and 1990, we apply heterogeneous panel data estimators and reveal that the effect of participation in religious activities on income per capita is mostly non-significant. This is consistent with some of the recent research that casts doubt onto the influence of religion on income, once causality is taken into account.     

Politics matter: changes in unionisation rates in rich countries, 1960–2010

We use the Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts database to examine the changes in collective bargaining coverage and union density among 21 OECD countries over the past 50 years. The observed patterns suggest that national politics are a more important determinant of recent trends in unionisation than globalisation or technological change.     

The analytics of search with posted prices

Summary. This paper investigates the characteristics of the optimal posted price in the standard sequential search paradigm. Much of the intuition gleaned from the extensive sequential search literature in which the seller adopts a reservation price does not carry over to the posted price setting. For example, an increase in buyer valuations can lead to a reduction in the optimal posted price. We do, however, provide sufficient conditions on the hazard rate function h which ensure that an increase in demand induces an increase in the optimal posted price. As exhibited herein, the analysis of the posted price model depends critically upon analytical properties of h. Amongst the issues treated are the elasticity of demand, finite horizon, sale of multiple units, and competitive equilibrium. Received: October 21, 1999; revised version: March 7, 2000