Economic Assessment of Forest Ecosystem Services Losses: Cost of Policy Inaction

This paper presents a bottom-up methodological framework for estimating some of the key ecosystem services provided by forests biomes worldwide. We consider the provision of wood and non-wood forest products, recreation and passive use services, and carbon sequestration. The valuation framework derives per hectare estimates by applying meta-analysis, value-transfer and scaling-up procedures in order to control for the existing heterogeneities across world regions and forest biomes. The first part of the study estimates stock values per hectare for each forest ecosystem service in the baseline year 2000 and in the year 2050. Results differ per geographical region and biome. Carbon stocks represent, on average, the highest value per hectare, followed by provisioning services, passive use and recreational values respectively. The second part provides an estimation of the welfare loss (or gain) associated with policy inaction in the period 2000–2050 leading to a change in the forest area. Welfare results are mixed and require a careful interpretation, ranging from a worldwide annual benefit of + 0.03% of 2050 GDP to an annual loss of −0.13%. The highest damage is expected in Brazil due to the increasing deforestation taking place in tropical natural forests, which is causing a considerable loss of carbon stocks.     

The timing and probability of FDI: an application to US multinational enterprises

An ‘option-pricing’ model is employed to analyse the timing of FDI. Assuming that the firm's profits are determined by the attractiveness of both the home and foreign countries, and that attractiveness follows a Brownian motion, an optimal trigger value of FDI is derived. The model shows that, contrary to the NPV rule, FDI entry should be delayed the greater the uncertainty of attractiveness in both locations. Another important result is that MNEs do not regard FDI as a risk-diversification tool. The results of the model were then tested empirically with US FDI data, using labour costs as a proxy for (the reciprocal of) attractiveness. The results support the findings of the analytical model.     

Epistemology, Research Methodology and Rule 702 of the Federal Rules of Evidence Versus Eva®

This article questions the continued use and application of EVA^® (economic value added) because it is epistemologically a non-sequitur, fails to satisfy the requirements of sound research methodology in terms of being a reliable and valid metric, and is unlikely to satisfy the requirements of Rule 702 of the Federal Rules of Evidence. In the light of these insufficiencies, the continued use of EVA^® is ethically questionable, and moreover in time is likely to result in class actions.     

实施CMMS的五项原则及其使用——一个石化工厂的案例研究

大多数计算机维修管理系统(CMMS)没有起到管理系统应有的作用,或者实施以后限制了管理的能力.另一个重要的事实是:如果实施时间少于二年,大约有50%的CMMS实施是注定要失败的.笔者采用Peter Senge的观点,把学习组织(Learning Organisations)作为新方法来实施和使用CMMS.探讨如何成功地把这个方法应用于Rio de Janeiro天然气化工厂,保证全面使用CMMS.     

Bootstrap Methodology in Claim Reserving

In this article, we use the bootstrap technique to obtain prediction errors for different claim‐reserving methods, namely, the chain ladder technique and methods based on generalized linear models. We discuss several forms of performing the bootstrap and illustrate the different solutions using the data set from Taylor and Ashe (1983) , which has already been used by several authors.     

Entrepreneurship,regional development and job creation: the case of Portugal

This paper investigates whether a high level of new business formation in a region stimulates employment growth in that region. We look at the lag structure of these effects using a data set covering a fairly large time span (1982–2002). We find that indirect effects of new firm births on subsequent employment growth are stronger than direct effects. However, indirect effects only occur about 8 years after new firm formation. In particular, and unlike the findings from studies of other countries using a similar approach, positive indirect effects do not seem to tail off in the Portuguese case. This is likely due to a general pattern of results in which lags appear to be longer for Portugal. In view of these results, we suggest that the lag times and magnitudes the effects on new firm formation on subsequent employment growth are likely dependent on the types and qualities of start-ups.

The Sustainability of European External Debt: What have We Learned?

In this paper we aim to analyze the level of sustainability of external debt and, more importantly, how it has changed for a number of European economies. Given the severity of the crisis since 2008, we argue that the path of external debt burdens may have changed since the start of the crisis, given the concerns about debt accumulation in most countries. We analyze the reaction of present debt accumulation to past debt stock, incorporating the possibility of endogenously determined structural breaks in this reaction function. We find that structural breaks happen in most cases after 2008, highlighting the importance of the policy measures taken by most governments.     

Optimal subsidies and guarantees in public–private partnerships

In this paper, we analyse how certain subsidies and guarantees given to private firms in public–private partnerships should be optimally arranged to promote immediate investment in a real options framework. We show how an investment subsidy, a revenue subsidy, a minimum demand guarantee, and a rescue option could be optimally arranged to induce immediate investment, compensating for the value of the option to defer. These four types of incentives produce significantly different results when we compare the value of the project after the incentive structure is devised and also when we compare the timing of the resulting cash flows.     

Internationalization of innovative capabilities: counter‐evidence from the electronics industry in Malaysia and Brazil

The focus of this paper is the extent to which firms in the electronics industry in Malaysia and Brazil (Manaus) developed significant innovative technological capabilities. By examining whether innovative capabilities have spread to these two late‐industrializing countries, the paper seeks to add new evidence to the debate over internationalization of innovative capabilities and to argue against existing generalizations. Internationalization of innovative capabilities is measured here by the technological capability types and levels built within firms. The framework for capability‐building identifies types and levels of technological capabilities. The paper draws on empirical evidence from 82 electronics firms—transnational corporation subsidiaries and local firms: 53 in Malaysia (25 in Penang and 28 in Klang Valley) and 29 in Manaus (Northern Brazil). Empirical evidence was collected during extensive fieldwork based on different data‐gathering strategies. Both qualitative and quantitative data analysis methods were used. Contrary to common generalizations, the study found that the capabilities of most sampled firms had been upgraded to carry out diverse innovative technological activities. Additionally, these capability‐building efforts were strongly associated with higher capabilities for local decision‐making and control, automation level and efforts to increase exports. The study found firms that innovated to be competitive by reducing costs, being more productive, reducing lead time and producing better products—regardless of whether they were in a domestic market‐oriented country or in an export‐oriented country. Finally, the analysis and framework in this study challenge some existing perspectives on the internationalization of innovative capabilities to the late‐industrializing context.