Explaining Real Commercial Rents Using an Error Correction Model with Panel Data

This paper presents rent models for retail and office property in the United Kingdom. Panel data are used covering eleven regions for 29 years, enabling us to overcome the limitations of a relatively short time series. We use an error correction model (ECM) framework to estimate long-run equilibrium relationships and short-term dynamic corrections. The combination of panel data and an ECM is an innovative approach that is still being developed in economics. We construct new supply series that combine infrequent stock data with more frequent construction data. Separate regional models are estimated for retail and office properties. The regions are then combined into a number of panels on the basis of the income and price elasticities in the long-run and short-run models. Unlike previous studies, we find no evidence of a board north–south divide between low growth and high growth regions. Like these studies we do find a London effect: in London, demand elasticities for space with respect to both price (rent) and income are much lower in magnitude. We conclude that, while the economic drivers may vary, there is no evidence of differences in the operation of the regional property markets outside London. Elasticities for retail and office are similar. Our final models are parsimonious with single measures of economic activity and of supply and always support the use of an ECM.     

The ‘new public management’ and the reform of public services to agriculture in adjusting economies: the role of contracting

This paper outlines the conditions under which contracting of different types succeeds in the provision of public services to agriculture. It observes that performance contracting has been widely attempted in adjusting countries but generally with little success, since it is demanding of resources, flexibility and motivation in government under conditions where these are scarce. Examples are drawn from agricultural marketing. Given the largely private nature of the services to agriculture currently provided by the state, the long-term reform strategy should be market development. Contracting out and management contracting may have a role in this strategy, particularly in better managed adjusting economies.     

Bridging the research-practice divide: Harnessing expertise collaboration in making a wider set of contributions

Understanding how we develop research contributions which go beyond conversations in the academic field is an enduring challenge. While much has been written on the importance of academic-practitioner relationships in the research process more is needed on conceptualizing how we develop a wider set of contributions. In this paper, we call for researchers to be reflective as to how different forms of expertise can be drawn on during collaborative relationships to bridge the research – practice divide. We develop a framework which combines different levels of expertise with varying forms of academic-practitioner collaboration to widen the impact of our research. Four strategies are proposed by which academics may leverage their expertise in collaborative relationships with practitioners to develop Research Impact and Contributions To Knowledge (RICK). These include: maintaining critical distance, promoting deeper engagement, developing prescience, and achieving hybrid practices. We discuss implementation approaches for each of these RICK strategies and suggest writing genres to help increase engagement by practitioners in research contributions.     

The Role of Information and Influence in Social Networks

A bstract .   This article examines two mechanisms through which social networks are related to job mobility: (1) access to diverse sources of information about job openings and (2) nonredundant sources of influence. Using data on job changing and social networks among television station managers, we assess the extent to which job information and influence variables mediate the relationship between social network structure and getting a better job. Results indicate that there is an association between job mobility and having nonredundant contacts, but our measures of the information and influence mechanisms are not significant mediators. We conclude by reexamining the network-resource model that forms the basis for much of the research on the relationship between social networks and job mobility.     

Overseas equity analysis by UK analysts and fund managers

This paper examines how UK-based analysts and fund managers cope with international differences in financial reporting systems when analysing overseas equities. This subject has become increasingly important given the internationalisation and institutionalisation of equity markets. Our results indicate that there is a substantial reliance on sources other than the annual report by both groups when analysing overseas companies. We also find considerable variation in the approach to analysing equities internationally. In particular, we find evidence that there is greater reliance on alternative sources to accounting information (such as other foreign analysts) in countries characterised as having weak equity markets. Finally, we examine the coping mechanisms that analysts and fund managers employ when analysing overseas securities, including reliance on locally based analysts, use of non-accounting information, use of more familiar accounting standards and re-stating accounts to a more familiar basis.     

Explaining qualifications in audit reports using a support vector machine methodology

The verification of whether the financial statements of a firm represent its actual position is of major importance for auditors, who should provide a qualified report if they conclude that the financial statements fail to meet this requirement. This paper implements support vector machines (SVMs) to develop models that may support auditors in this task. Linear and non‐linear models are developed and their performance is analysed using training samples of different size and out‐of‐sample/out‐of‐time data. The results show that all SVM models are capable of distinguishing between qualified and unqualified financial statements with satisfactory accuracy. The performance of the models over time is also explored. Copyright © 2005 John Wiley & Sons, Ltd.     

Does Corporate Diversification Destroy Value?

We analyze several hundred firms that expand via acquisition and/or increase their number of business segments. The combined market reaction to acquisition announcements is positive but acquiring firm excess values decline after the diversifying event. Much of the excess value reduction occurs because our sample firms acquire already discounted business units, and not because diversifying destroys value. This implies that the standard assumption that conglomerate divisions can be benchmarked to typical stand-alone firms should be carefully reconsidered. We also show that excess value does not decline when firms increase their number of business segments because of pure reporting changes.     

MEASURING AND IMPROVING TECHNICAL EFFICIENCY IN UK POST OFFICE COUNTERS USING DATA ENVELOPMENT ANALYSIS

This paper sought to establish how technically efficient Post Office Counters is nationally and regionally. The method by which this was determined is data envelopment analysis, applied to data for 1989 on 1281 Crown post offices. The input used was labour, and outputs consisted of average waiting times as a measure of quality of service, and nine different categories of counter transactions. Nationally it was found that technical efficiency could be significantly improved by making more efficient use of labour inputs and reducing average waiting times. Wide disparities were found in regional efficiency and it was hypothesized that these relative differences were due to differing working practices, turnovers of staff and local labour market conditions. It was also concluded for the period studied that some structural inefficiency existed due to the existence of inefficient working practices and the lack of computerization of transaction procedures.     

Social Networks and Economic Sociology

A bstract The social network metaphor is widely used by sociologists to study socioeconomic behavior and processes The use of social networks generally takes place within the ranks of sociology However, a more complete social science would result by combining work being done on social networks within sociology with mainline economic theory The insights from such a research agenda will help us better understand socioeconomic behavior With this in mind, the main objective of this paper is to demonstrate the utility of the network metaphor to economists This objective will be accomplished through developing four basic components of social networks, and using them to navigate through the existing literature in economic sociology Furthermore, topics for future research in which social networks can provide contributions to the explanation of socioeconomic behavior are explored as well