National Income Accounts: Measurement, Practice, and Welfare Implications of the Initial Estimates of Kosovo's GDP

This article reports estimates of Kosovo's GDP for 2000 based on a survey of household expenditures, the UN's government budget, customs data, and projections of international donor organizations' assistance and investment. Estimated per capita GDP was in the range of $1135–$1185, nearly three times the $400 World Bank estimate that had been conventionally used to guide policy and technical assistance designs. The article discusses the sources of the data, provides checks from macroeconomic theory on their credibility, and prescribes statistical resources and policies to ensure a more systematic and conventional tracking of Kosovo's future aggregate economic activity.     

A METHOD FOR ESTIMATING GLOBAL CORPORATE CAPITAL COSTS: THE CASE OF BESTFOODS

The financial management practices of many multinational corporations are at odds with both financial theory and the strategic case for global expansion. Despite the weight of academic literature, many financial executives still cling to ad hoc rules of thumb that discourage value-enhancing global growth. In particular, they tend to require large risk premiums for making foreign investments while ignoring the diversification benefits of such investments for their shareholders.
This article presents a practical method for estimating the cost of capital for use by multinationals both in evaluating foreign investment opportunities and in measuring the ongoing performance of overseas business units. The method represents a kind of "hybrid" version of the global CAPM—one that attempts to reconcile some of corporate executives' concerns about the distinctive risks of foreign investment with the finance theorist's portfolio perspective and reliance on capital market information. More specifically, the framework uses information from capital markets to determine the appropriate risk premiums for currency and sovereign risks associated with each country in an MNC's portfolio. But, at the same time, these risk premiums are partly offset by taking account of any diversification benefits that foreign investment provides for the firm's shareholders.
The method is illustrated using the case of Bestfoods, a Fortune 200 company with extensive overseas operations that recently adopted the method. For the purpose of evaluating new projects, Bestfoods produces quarterly updates of its cost-of-capital estimates for each country in which it has (or expects to have) major operations. For evaluating the ongoing performance of each country business unit, the relevant cost of capital is calculated annually (at the beginning of each fiscal year).     

The impact attenuation performance of materials used under indoor playground equipment at child care centers

In this article, we have investigated the pattern of road fatality in Brunei. It is seen from this analysis that road fatality in Brunei was one of the highest in the world in the early 1990s, but has been significantly reduced over the years, and is now one of the lowest in the world. Preliminary investigation shows that young male drivers are responsible for most road fatalities in Brunei. We have also fitted a linear regression model and found that road fatality is significantly positively related to people aged 18–24 years and new registered vehicles, both of which are expected to grow with the growth of population and economic development. Hence, road fatality in Brunei is also expected to grow unless additional effective road safety countermeasures are introduced and implemented to reduce road toll. Negative coefficient is observed for trend variable, indicating the reduction of road fatality due to the combined effects of improvements of vehicle safety, road design, medical facilities and road safety awareness among road user groups. However, short-term road fatality analysis based on monthly data indicates that the coefficient of the trend variable is positive, implying that in recent months road fatalities are increasing in Brunei, which is supported by media reports. We have compared Brunei's road fatality data with Australia, Singapore and Malaysia and found that Brunei's road fatality rate is lower than Singapore and Malaysia, but higher than Australia. This indicates that there are still opportunities to reduce road fatalities in Brunei if additional effective road safety strategies are implemented like in Australia without interfering in the economic and social development of Brunei.     

An econometric approach for evaluating the linkages between broadband and knowledge intensive firms

In addition to highlighting improvements in the availability and speed of broadband as a national priority, the National Broadband Plan also includes several recommendations for improving access and use of broadband by small businesses. The plan also recommends economic development officials include broadband in their local development strategies. While these are certainly import goals, more research is needed to evaluate how broadband impacts the regional business environment, and regional capacity to retain and attract businesses in particular industries. In order to further our understanding about the linkages between broadband and businesses, and the ability of places to retain and attract businesses in particular industries, this study will develop and estimate econometric models to better understand the linkages between broadband and firms in the knowledge intensive sector. Specifically, 54 metropolitan area specific models will be developed to examine regional variations in the linkages between broadband and firms in the knowledge intensive sector in 2004. Model results highlight the importance of broadband to knowledge firms in all but five metropolitan areas across the U.S. They also reveal variations in the impact of broadband on knowledge firm presence related to metropolitan area size and industrial legacy.     

Episodes of Exuberance in Housing Markets: In Search of the Smoking Gun

In this paper, we examine changes in the time series properties of three widely used housing market indicators (real house prices, price-to-income ratios, and price-to-rent ratios) for a large set of countries to detect episodes of explosive dynamics. Dating such episodes of exuberance in housing markets provides a timeline as well as empirical content to the narrative connecting housing exuberance to the global 2008 ?09 recession. For our empirical analysis, we employ two recursive univariate unit root tests recently developed by Phillips and Yu (International Economic Review 52(1):201–226, 2011) and Phillips et al. (2015). We also propose a novel extension of the test developed by Phillips et al. (2015) to a panel setting in order to exploit the large cross-sectional dimension of our international dataset. Statistically significant periods of exuberance are found in most countries. Moreover, we find strong evidence of the emergence of an unprecedented period of exuberance in the early 2000s that eventually collapsed around 2006 ?07, preceding the 2008 ?09 global recession. We examine whether macro and financial variables help to predict (in-sample) episodes of exuberance in housing markets. Long-term interest rates, credit growth and global economic conditions are found to be among the best predictors. We conclude that global factors (partly) explain the synchronization of exuberance episodes that we detect in the data in the 2000s.     

Financial reporting by charities: a matched case study analysis from four countries

This paper analyses financial reporting requirements applicable to charities in four jurisdictions—Australia; England; Ireland; New Zealand—using case study analysis which compares the actual financial statements of four charities operating in the same field and with similar levels of total income. The authors highlight common issues and implications in terms of the concepts underpinning not-for-profit organization (NPO) financial reporting and argue the case for harmonized international NPO accounting standards.     

Exploring the Persuasiveness of Accounting Numbers in the Framing of ‘Performance’ – A Micro-Level Analysis of Performance Review Meetings

Based on a micro-level analysis of performance review meetings and drawing on an interactional framing perspective, this paper analyses the role of accounting numbers as ‘framing devices’ in discussions about performance. Analyzing interactions between superiors and subordinates, we examine how and why these two groups of actors mobilize different accounting numbers to make claims about performance and try to persuade the other party. Our interest is with the choice of accounting numbers and how they come to be seen as persuasive. The main theoretical argument developed in this paper is that whether a specific accounting number or indicator comes to be seen as persuasive or not in a particular situation is both a matter of how legitimate the underlying indicator is to the actors involved as well as whether they regard the signal it provides, i.e. the actual outcome on this particular indicator, as salient when compared to the actual outcomes on alternative indicators. Taken together, our findings suggest that persuasiveness is not an ‘objective’ quality of accounting numbers, but a situated achievement that results from interactive alignments between different actors with potentially competing interests.     

Innovation by design: SPARK and the Overcoming of Stanford University's Translational “Valley of Death” in Bio-Medicine

Stanford University's world leadership as an entrepreneurial university induced a “paradox of success,” inhibiting further development of its organizational infrastructure for entrepreneurship support. Nevertheless, some prospective academic entrepreneurs realized that there were invisible persisting gaps in the university's innovation system. We discuss the role of the entrepreneurial university and provide a case study of SPARK, an organizational innovation, created to address Stanford's translational research gap, that was then spread to other universities. The creation of a support structure to encourage students and faculty to define entrepreneurial projects as part of their education and research revealed a novel organizational change dynamic.     

How to reduce your inventory: a real world case study

This case study describes the use of a performance analysis system at the Safety Products Division of Mine Safety Appliances Company, which contributed to the reduction of excess inventories by more than $8,000,000 during the first two years of implementation.