Financing a central research laboratory: A tool of R & D subsidy policy

Abstract . In this paper we discuss two major issues of financing a central research laboratory.
First, the decision faced by the firm or the division whether to invest in its own laboratory or to rent compatible central laboratory services. The second issue is the price that a central laboratory should charge for renting out its facilities.
Under the assumptions that a laboratory can serve a large number of users over a long period of time and thus diversify the risk of liquidation better than a single firm or division, we show that, under uncertainty, the rent for the central laboratory assets is less than the price that a firm is willing to pay for its usage. This surplus has interesting policy implications for the diversified firm that operates a central R & D laboratory for the use of its divisions and may wish to establish a transfer price system. Moreover, if the government finances a central laboratory to service industrial firms and it follows a policy of subsidizing industrial R & D, the surplus may be given to the user of the laboratory as a direct subsidy.     

Institutions,quality competition and public service provision: The case of public education

This paper contributes to the literature on integovernmental competition in two ways. First, the institutional setting within which public services are delivered is analyzed with respect to the impact on the quality of services provided. Previous studies have measured competition only in terms of governmental structure, ignoring the issue of service quality and the potential for differentiating local governmental jurisdictions along quality dimensions. Second, the outcome of competition is defined in terms of service quality. Previous studies generally have measured the outcome of competition by examining the fiscal effects of fragmentation and accountability through service costs or tax revenue impacts. School districts were used to empirically test quality competition. Student academic performance was modeled as a function of control variables and the degree of competition from neighboring school districts. Academic performance in public schools was positively associated with the performance of neighboring districts, although the effect was small. These findings, however, suggest that strategies to strengthen interjurisdictional competition may be useful in enhancing public service quality.     

宾州大学帕克分校商学院雇员沉默的原因

作为老板的你无意问听到两个雇员的悄悄话,“如果老板知道顾客是这么说的,我这份工作就完蛋了。”你会作何感想？而这正是我在一家知名的高科技公司听到的原话。我们对沟通的研究表明,从基层到高管,各类雇员对言行的“自我审查”（selfcensorship）十分普遍,他们会隐瞒某些信息或想法。     

MRP II (material requirements planning): one year later

This article addresses the continued need for the behavior change process that must be managed long after materiel requirements planning (MRP II) implementation. Mason & Hanger, Pantex Plant is the final assembly and dismantlement facility for all United States nuclear weapons. On October 1, 1990, Mason & Hanger implemented a full production cutover to MRP II. One year later, following class A certification, the MRP II implementation team is still actively managing the change process through education and training programs and overall continuous improvement initiatives. Actual behavior change problems are identified together with the proven solutions implemented in a government-owned, contractor-operated facility environment. Performance measurements ranging from senior management planning to shop floor accomplishments and cost variance reports are shown as normal management tools used to identify target improvement areas.     

A note on the role of the average cost curve in the neoclassical theory of the firm

A number of influential authors have argued that the long-run average cost curve has only a limited role in the theory of the firm. This note examines this claim in more detail. It argues that the curve has an important role in determining long-run equilibrium as it provides an important ‘signal’ to agents in the capital and product market about the extent to which an industry is in disequilibrium. The effect of removing the certainty assumption is then examined and it is argued that the average cost curve is an important input in the assessment of operating risk.     

An empirical investigation of the effectiveness of an integrated service recovery system

Although service recovery has become an increasingly-studied topic in the operations management literature, robust theories and accompanying empirical studies have only begun to emerge. For example, while many authors have identified and measured the specific activities that are perceived by consumers as effective ways to recover from failure, much less attention has been directed at the systematic structuring of recovery efforts to consistently ensure customer satisfaction and achieve improved, long-term organizational outcomes. Building on recent research that identified the principal constructs of service recovery, this study seeks to explore the relative effectiveness of an integrated service recovery system. Data from 158 service organizations are used to explore the relationship between the system and its associated recovery outcomes. Results indicate that a complete recovery system defined by seven distinct dimensions (formalization, decentralization, comprehensiveness, accessibility, influence, human intensity, and system intensity,) significantly impacts internal capability improvements as well as externally-perceived outcomes (i.e., speed, employee empathy, and recovery effectiveness) while both of these outcomes have a significant impact on customer satisfaction and market performance attributed to service recovery     

Causality: a Statistical View

Statistical aspects of causality are reviewed in simple form and the impact of recent work discussed. Three distinct notions of causality are set out and implications for densities and for linear dependencies explained. The importance of appreciating the possibility of effect modifiers is stressed, be they intermediate variables, background variables or unobserved confounders. In many contexts the issue of unobserved confounders is salient. The difficulties of interpretation when there are joint effects are discussed and possible modifications of analysis explained. The dangers of uncritical conditioning and marginalization over intermediate response variables are set out and some of the problems of generalizing conclusions to populations and individuals explained. In general terms the importance of search for possibly causal variables is stressed but the need for caution is emphasized.     

The accuracy of long-term earnings forecasts in the electric utility industry

This paper examines the accuracy of various methods of forecasting long-term earnings growth for firms in the electric utility industry. In addition to a number of extrapolative techniques, Value Line analyst forecasts are also evaluated. Value Line analyst forecasts for a five-year time horizon are found to be superior to many of the extrapolative models. Among the extrapolative models examined, implied growth and historical book value per share growth rate models performed best. These results provide strong support for using Value Line growth forecasts in cost of capital estimates for electric utilities in the context of utility rate cases. Value Line forecast errors could be explained by changes in dividend payout ratios, the firm's regulatory environment and bond rating changes.