Provision Point Mechanisms and Field Validity Tests of Contingent Valuation

Past field validity tests of contingent valuation have relied on voluntary contribution mechanisms to elicit actual willingness to pay, and may overestimate hypothetical bias because of free riding in the actual contributions. This paper argues that provision point mechanisms are a preferred alternative for field validity tests of contingent valuation because they increase the proportion of demand revealed in cases in which public goods can be provided in a step function. The results of a contingent valuation validity study of participation in a green electricity pricing program that uses a provision point mechanism are reported, and hypothetical open-ended and dichotomous choice responses are compared to actual participation. Calibration of hypothetical responses is also explored.     

The impact of corporate strategy on the capital structure of Australian companies

Research into the capital structure of firms has been the subject of extensive empirical investigation but further progress may be constrained by the conventional paradigm underlying most of this work. This paper seeks to extend the debate by examining the endogenous influence of corporate strategy on financing decisions made by firms. While the theoretical specification of the possible relationship has to be developed further, various models were constructed and company data from Australia, an economy with some notoriety for fairly loose corporate debt management, was used to examine various hypothesized relationships. Our analysis suggests that corporate strategy influences capital structure, particularly for the most diversified firms, and that the emerging relationship is complex. Profit, cash flow, the rate of growth and the level of earnings risk are important additional internal influences on capital structure. The results are reasonably robust and indicate that this focus of enquiry has considerable potential for further resolution of the capital structure puzzle, as well as contributing to the debate on the impact of institutional shareholders on the corporate strategy of the firms in which they invest.     

How efficient are national environmental standards? A benefit-cost analysis of the United States experience

This paper summarizes the results of the first systematic, geographically-specific efficiency assessment of the U.S. experience with national environmental standards and with alternative approaches to establishing those standards. This ex-post evaluation assessed the net benefits that resulted from EPA's regulation of conventional air and water pollutants from the pulp and paper industry between 1973 and 1984. The paper compares the benefit-cost efficiencies of the three dominant regulatory approaches: technology, ambient, and benefits. Unlike previous studies, which assessed benefits and costs on a national basis, the study estimates both costs and benefits on a facility-by-facility basis. The analysis shows how the efficiency of national environmental regulations can vary dramatically at local levels. The authors conclude that the technology-based standards for water pollution management failed as an efficient environmental strategy. The costs clearly exceeded the benefits in the aggregate, as well as in the specific in most situations. Benefits exceeded costs at only 11 of the 68 mills investigated. The ambient based standards for air pollution management succeeded as an environmental strategy in the aggregate, but succeeded in the specific for only one-third of the mills (22 of 60 mills). The benefits-based standards for air pollution management also succeeded in the aggregate as well as in the specific for about one-half of the mills. Benefits exceeded costs at 29 of the 60 mills investigated. The results of the study point to two major conclusions. First, a regulatory policy that is based on some measure of environmental results, either ambient-based or benefits-based, will be more efficient than a policy that ignores environmental results. Second, truly efficient policies for reducing environmental risks require pollution mitigation decisions that take into account local conditions. These include not only the changes in local ambient conditions, but also the number of people who will benefit from pollution reduction decisions. This latter conclusion suggests that national environmental standards per se may be inefficient.Dr. Luken is currently Senior Environmental Advisor to the United Nations Industrial Development Organization (UNIDO) in Vienna, Austria. He is on leave from the U.S. EPA where he was Chief of the Economic Analysis and Research Branch of the Office of Policy, Planning and Evaluation (OPPE). Mr. Clark is President of Environmental Economics Associates of Traverse City, Michigan. He was formerly Chief of EPA's Cost and Economic Impact Analysis Branch in OPPE. The views expressed are those of the authors and do not represent the views of the U.S. Environmental Protection Agency.     

Industrial relations,new technology and divisions within the workforce

Discussions of industrial relations and new technology often treat employers and employees as homogeneous groups. This article, based on a study of the introduction of electronic news gathering equipment into an independent television company, suggests that new technology can be a source of conflict and rivalry between different sections of the workforce.     

Asymmetric Network Interconnection

We develop a model of competition between interconnected networks,that allows for carriers to differ in size. Under two-partpricing, we show that because of asymmetry the larger network willalways prefer a reciprocal interconnection charge be set at cost.For sufficiently large asymmetry the smaller network will have thesame preference. Under the assumptions of our model a particularly simple regulation is optimal – if carriers cannot agree on the terms of interconnection, the larger carrier is entitled to select the access price which is then applied reciprocally.     

Pricing U.S. Dollar Index Futures Options: An Empirical Investigation

This paper develops a pricing model and empirically tests the pricing efficiency of options on the U.S. Dollar Index (USDX) futures contract. Empirical tests of the model indicate that the market consistently overprices these options relative to the derived model. This overpricing is more pronounced for out‐of‐the‐money options than for in‐the‐money options and more pronounced for put options than for call options. To validate the above results, delta neutral portfolios are created for one‐ and two‐day holding periods and consistently generate positive arbitrage profits, indicating that on average the market overprices the options on the USDX futures contracts.     

基于PCA-熵权法的经济发展方式转变进程的综合测评——来自湖南2001-2014年的经验证据

基于主成分分析(PCA)与熵权相结合的方法,采用经济发展、社会发展动力、人与自然协调发展以及人的全面发展指标的源数据,测评湖南经济发展方式转变进程.结果表明:从2001-2014年湖南经济发展方式转变进程综合指数评级依次为"较差—中等—较好—很好",呈现良好转变趋势,在2014年取得报告期历年最高值,综合指数评级达到 I 级.PCA 与熵权结合的方法能较好地保证评价结果的准确性,适用于经济发展方式转变进程的科学评价.     

Owning and testing smoke alarms: findings from a qualitative study

Reducing injury and death in house fires is an important public health intervention activity with the presence of an operating smoke alarm widely considered an important way of reducing harm from fire. Yet despite a number of initiatives and fire-safety campaigns, a number of households at greater risk of domestic fire fail to have a functioning alarm. This paper provides empirical insight into everyday experiences of owning, maintaining and testing smoke alarms among a purposive sample of individuals identified as being less likely to own a functioning smoke alarm. Analysis from focus group data identifies a number of reasons why individuals may not own or test an alarm, and provides new insight into how fire risk is understood in the context of a range of competing, and potentially more prominent, individual and household risks. We suggest that while initiatives that aim to reduce fire injury and death should be continued, their success, and indeed future research on fire risk, should pay attention to the mundane and everyday contexts within which individuals currently rarely reflect on their risk of experiencing a domestic fire.     

Insights from Accounting Practitioners on China's Convergence with IFRS

This study provides insights from accounting practitioners on China's convergence with International Financial Reporting Standards (IFRS). Through a survey of 33 senior financial executives of Chinese listed companies in 2014, the study reports their perceptions on the following issues: first, the degree of convergence between IFRS and Chinese Accounting Standards (CAS); second, the choice between fair value and historical cost accounting, and the usefulness of fair value accounting for Chinese companies’ financial reporting; third, challenges in the process of China's harmonisation with IFRS; and finally, essential capabilities of Chinese accounting professionals in the process of China's harmonisation with IFRS. Multivariate regression was used for further analysis. The survey findings reveal that in general CAS have converged with IFRS, with a few exceptions that reflect the unique Chinese context. Historical cost accounting is the preferred measurement base to fair value accounting. Exercising professional judgement was identified as a challenge for China's full convergence with IFRS. Ownership structure and the expertise of accounting practitioners were found to affect respondents’ judgements on China's convergence with IFRS. This study has policy implications for international accounting standard setters and accounting educators to consider the contextual issues of implementing IFRS in an emerging economy.