Stochastic frontier models with random coefficients

The paper proposes a stochastic frontier model with random coefficients to separate technical inefficiency from technological differences across firms, and free the frontier model from the restrictive assumption that all firms must share exactly the same technological possibilities. Inference procedures for the new model are developed based on Bayesian techniques, and computations are performed using Gibbs sampling with data augmentation to allow finite‐sample inference for underlying parameters and latent efficiencies. An empirical example illustrates the procedure. Copyright © 2002 John Wiley & Sons, Ltd.     

Socio‐economic distance and spatial patterns in unemployment

This paper examines the spatial patterns of unemployment in Chicago between 1980 and 1990. We study unemployment clustering with respect to different social and economic distance metrics that reflect the structure of agents' social networks. Specifically, we use physical distance, travel time, and differences in ethnic and occupational distribution between locations. Our goal is to determine whether our estimates of spatial dependence are consistent with models in which agents' employment status is affected by information exchanged locally within their social networks. We present non‐parametric estimates of correlation across Census tracts as a function of each distance metric as well as pairs of metrics, both for unemployment rate itself and after conditioning on a set of tract characteristics. Our results indicate that there is a strong positive and statistically significant degree of spatial dependence in the distribution of raw unemployment rates, for all our metrics. However, once we condition on a set of covariates, most of the spatial autocorrelation is eliminated, with the exception of physical and occupational distance. Racial and ethnic composition variables are the single most important factor in explaining the observed correlation patterns. Copyright © 2002 John Wiley & Sons, Ltd.     

Work Relationships in Telephone Call Centres: Understanding Emotional Exhaustion and Employee Withdrawal

This paper examines the nature of employment and the conditions of work in five telephone call centres in the telecommunications industry in Australia. Call centre work typically requires high levels of sustained interpersonal interaction with customers which can lead to burnout and employee withdrawal. Customer service staff can also become targets of customer hostility and abuse. In addition, this form of work tends to involve extensive employee monitoring and surveillance with little job discretion or variety of tasks. The paper draws upon survey data from 480 telephone service operators to identify the factors that are associated with emotional exhaustion and the frequency of absence amongst the employees. A modelling of the data using LISREL VIII revealed that a number of job and work-setting variables affected the level of emotional exhaustion of employees. These included interactions with the customer, a high workload and a lack of variety of work tasks. Moreover, higher rates of absence were associated with emotional exhaustion.     

The appraisal of ordinary shares by Saudi investors

This paper reports on a questionnaire survey about share valuation practices among investors and their intermediaries in Saudi Arabia. The findings suggest that fundamental analysis is used most by investor respondents where a P/E multiple is applied to an earnings forecast to generate a prediction of future price. However, technical analysis is also used to a much greater extent than in developed markets. Finally, the results indicate that quarterly and annual reports as well as newspapers are widely consulted by investors when forming their expectations about share valuations.     

Learning and the monetary policy strategy of the European Central Bank

This paper examines the welfare implications of alternative inflation targeting proposals for the monetary policy of the European Central Bank. We assume that policy makers have to “learn” the laws of motion of inflation in an economy characterized by “stickiness” in domestic price setting behavior and subjected to recurring shocks to productivity, exports and foreign price. We find that a switch from an “asymmetric” inflation targeting strategy to an “symmetric” makes little difference in welfare payoffs, but it comes at a cost of much higher interest-rate variability. We also find that there are practically no welfare gains from switching from an inflation-targeting strategy based on the Harmonized Index of Consumer Prices (HICP) to a strategy based on the domestic price component of the HICP.     

Foreign Factor Ownership and Optimal Tariffs

In the presence of foreign factor ownership tariffs change not only the terms of (goods) trade but also income flows between countries. Assume that only the home country owns factors abroad. Then the optimal tariff is negative if and only if foreign factor ownership entails trade-pattern reversals. Trade-pattern reversals are neither a necessary nor a sufficient condition for a negative optimal tariff if the foreign country owns factors in the home country. Changes in the home country's tariff shift the foreign country's offer curve. This adds a new dimension to optimal tariff analysis.     

The National Lottery:A Preliminary Assessment of net Additionality

This paper makes a preliminary assessment of how the current structure for the distribution of UK National Lottery funds affects the promise of net additionality for the designated 'good causes'. Indifference analysis demonstrates that the funding structure is optimal in these terms. However, the measurement of net additionality is highly problematic and involves both quantitative and qualitative techniques. Whilst a preliminary comparison with Ireland shows that the UK system is in a better position to achieve net additionality through its accountability and transparency, net additionality could still be only a relatively small proportion of the dedicated Lottery money, depending on the behaviour of politicians, local authorities, other interest groups, and the distribution boards themselves.     

An exploratory study of exclusive dealing in channel relationships

The channel literature has paid little attention to issues related to exclusive dealing governance arrangements. Consequently, there is only limited knowledge about how exclusive dealing impacts various channel processes and outcomes. This gap is especially regrettable since exclusive dealing, in addition to being one of the most commonplace governance formats within the distribution channels, is also one of the best exemplars of viable unilateral governance formats. In this initial investigation, the authors explore the linkages among the constructs of exclusive dealing, relationalism, communication, and performance. Empirical data for the study were drawn from the photocopier industry. He obtained his M.B.A. and D.B.A. degrees from Boston University. His primary research interest includes channels of distribution, franchisor-franchisee relationships, and consumer purchase behavior in international contexts. He has published articles inJournal of Marketing Channels and the proceedings of several marketing conferences. This article was crafted when Rajiv Dant was at Boston University. He received his M.B.A. from Bombay University and his Ph.D. from Virginia Polytechnic Institute and State University. His research focuses on channels of distribution, with primary emphasis on franchise structure, franchisee-franchisor relationships, and public policy aspects of franchising growth and ownership topics. His research has been published inJournal of Marketing, Journal of Public Policy & Marketing, Research in Marketing, Journal of Retailing, Journal of Business Research, Journal of Business Venturing, Journal of the Operations Research Society, Marketing Letters, Journal of Small Business Management, Journal of Economic Psychology, Southern Business & Economics Journal, Philosophical and Radical Thought in Marketing, Journal of Healthcare Marketing, Journal of Marketing Channels, andInternational Small Business Journal.