Book review

Evaluating Health and Social Care By C. Phillips, C. Palfrey and P. Thomas (Macmillan, Basingstoke, 1994). Hardback £35.00; paperback £11.99. ISBN 0 333 59185 2 (hardback); 0333 59186 0 (paperback).     

Overcoming Opportunism in Public‐Private Project Finance

The possibility of opportunistic behavior, whether by the private investors who operate public‐private projects or by the government agencies who oversee and administer them, can become a powerful deterrent to raising public‐private project financing, especially considering the scale of the investment in infrastructure. Nevertheless, both parties can protect themselves against the counterparty's possible opportunism by giving the investor an “exit” (or put) option and the public agent a “bail‐out” (or call) option on the private investor's shares. In describing the role and design of such puts and calls, this paper presents a mechanism for converting “natural monopolies” into competitive or contestable markets by using over‐the‐counter option contracts that combine the stability of long‐term contracts and the flexibility of short‐term contracts. In the language of economists, the exit/bail‐out option mechanisms presented here are seen as reducing barriers to entry by streamlining incomplete long‐term contracts and avoiding contractual problems related to “bounded rationality” and opportunism.     

The dynamics of experiential learning: Microprocesses and adaptation in a professional service INV

In international new ventures (INVs), experiential learning happens in quick succession and across a wide number of diverse contexts. Yet, we lack an empirical understanding of the microprocesses through which INVs learn and adapt in their foreign expansion. Understanding those microprocesses is important because timely adaptation can save the venture time and resources, thus promoting sustainable growth. In this study, we investigate the dynamics of experiential learning and adaptation in the internationalisation process of an INV in the professional service sector. Findings from our study illustrate that the firm applies deliberate experiential learning by developing, revising, and finalising criteria for important dimensions in the international growth process, and adapts its internationalisation practices accordingly. We further show that deliberate experiential learning is predicated on an actively and closely monitored learning process, involving critical evaluation, adjustment of criteria, and acceptance of affordable mistakes, as opposed to learning by default.     

Poland's Investment Development Path and Industry Structure of FDI Inflows and Outflows

ABSTRACT

This study explores changes in industry composition of FDI inflows to and outflows from Poland, using the conceptual framework of J. Dunning's model of the investment development path (IDP). The data time frame used (from 1996 to 2005) allows for identification of significant changes in FDI structure as Poland moves through stage 2 of her IDP. The leading position of the manufacturing sector in both FDI inflows and outflows is replaced by services (especially financial and trade). The last section presents policy implications focused on measures designed to redress the imbalance between the still much larger inflows than outflows of FDI.     

Chinese Auditors' Ethical Behavior in an Audit Conflict Situation

This paper draws on the economics of ethical compliance model to examine the association between ethical reasoning, perceived risk of detection, perceived levels of penalties and Chinese auditors' ethical behavior in an audit conflict situation. Using 53 Chinese auditors from Shenzen as subjects, and a survey questionnaire, this study found that there is a significant negative association between ethical reasoning and the likelihood of unethical behavior and that this negative association is weaker for auditors who perceive higher risks of detection.     

The effect of sunlight on the colour of Ghanaian cotton printed fabrics

Abstract In a 3·2·2 factorial experiment in three replicates, Ghanaian cotton prints (Real Wax, Real Java, Batik) were studied. Specimens were hand washed in soap solution, rinsed in clean water and dried in shade or sunlight twice a week for 3 weeks. Unwashed specimens were similarly sun-dried or aired. All specimens were exposed to a total of 42 h in the sun or shade. Colour loss was measured by means of a grey scale. The specimens lost significantly more colour (P < 0·01) when dried in the sun (3·96) than when dried in the shade (4·09). Irrespective of the drying method, washed fabrics lost significantly more colour (P<0·01) (3·96) than unwashed ones (4·09). There was no significant interaction effect (P > 0·01) between method of drying and fabric type. However, there was a significant interaction (P<0·01) between fabric type and washing or airing. The grey scale mean for washing was 4·03 for Wax, 3·81 for Batik and 3·75 for Java. For airing, Batik, Wax and Java had means of 4·22, 4·19 and 4·17 respectively. Thus, Real Wax was the most stable when washed, whereas Batik was the most stable to airing. It is suggested that drying or airing of these fabrics be performed in the shade to preserve their colour.     

Impact of a local host on the success of an international assignment

This longitudinal study examined whether contact with a local host in the Netherlands positively impacts on the adjustment and performance of “Western” expatriates with English or French as their first language. Thirty‐one expatriates were put in contact with a Dutch host with whom they would have regular contact over nine months; another 30 similar expatriates would have no contact with a host. After a five‐month period of contact with a host, there was a positive impact on interaction adjustment. The results also indicated that expatriates who valued the contact highly derived more benefit from it. Contact with a host seems to be especially worthwhile for expatriates who have to deal with host nationals on a daily basis. ©2011 Wiley Periodicals, Inc.     

Life satisfaction and diet in transition: evidence from the Russian Longitudinal Monitoring Survey

This article develops a theoretical framework and provides empirical evidence on the impacts of diet and lifestyles on life satisfaction in Russia using 1995–2005 data from the Russian Longitudinal Monitoring Survey. Our results suggest that diet measured as calories, fat, protein, and diversity of food consumption has a statistically significant effect on life satisfaction levels of the Russian population. In addition, living in a region with higher per capita income increases population's life satisfaction. While living in a rural area, having health problems, and having young children affect individual life satisfaction in Russia in a negative and statistically significantly way. Life satisfaction is also positively correlated with education and income, and negatively with unemployment. Better understanding of the drivers of life satisfaction and more generally of subjective well‐being in Russia can assist in the government decision‐making processes, including the allocation of scarce resources and the design of public health policies.     

Using stated preference discrete choice modelling to inform health care decision-making: A pilot study of breast screening participation

This study was an important start to explore the feasibility of applying stated preference discrete choice modelling (SPDCM) for use in developing breast screening participation enhancement strategies. It needs to be followed by further research to establish model validity and authoritative results. In the meantime a random effects binary probit choice model was estimated using a main effects with selected 2-way interaction design and a convenience sample of Australian breast cancer screening participants. A response rate of 48% was obtained. Clear preferences for different service configurations were revealed and used to demonstrate how potential strategies to enhance future participation rates of women placed on routine recall could be identified. As anticipated accuracy of screening was the most important attribute of the service to influence the probability of uptake but others were screening time, travel time, information about screening benefits and the desire for privacy lending support to the view that benefit assessment goes beyond health factors. In summary, the SPDCM approach can be regarded as a judicious approach for helping decision-makers improve screening participation.