Structure of the demand function and Pareto optimal set with natural boundary conditions

We consider utility functions defined on P?, the closure of the positive orthant of R^l, that satisfy the differentiable monotonicity and differentiable convexity conditions. We show that the demand function derived from such a utility function is piecewise smooth in a strong sense. We use this result to show that the Pareto optimal subset of a pure exchange economy derived from the kind of utility functions we consider is generically the union of a finite number of compact manifolds-with-corners.     

Asset diversification,firm risk,and risk-based capital requirements in banking

The implications of diversification by firms for risk has been raised particularly in connection with conglomerate mergers. This issue is of special interest in banking now because of a recently implemented policy — risk-based capital guidelines. This study presents results of an empirical investigation into the relationship between diversification of a bank's financial assets and indicators of the risk of insolvency. Results indicate that financial asset diversification, as well as geographic diversification, are related to lower risk.     

Global New Product Development Processes: Preliminary Findings and Research Propositions

This study examines the processes and routines firms employ for developing new global products. Observations from 13 Japanese, American and European multinational companies reveal that global new product development processes vary in terms of the involvement of overseas subsidiaries in project teams and the generation of new product concepts. In particular, when the knowledge about different product design requirements among overseas markets or plants is tacit, firms employ cross-national product development teams and use overseas subsidiaries as sources of new product concepts. Anchoring these findings on information processing theory, we develop a set of research propositions on global new product development processes and suggest directions for future research.     

The Effect on Farmland Prices of Rural Severances in the Urban Field

The lengthy debate on appropriate public policy for agricultural land planning has had two major components: the regulation of severances of farmland and the orderly expansion of each growing city. Putting aside the latter issue, this paper reports research on the severance issue, which is perhaps the key controllable socio-economic policy variable in rural foodland protection. This paper examines data from one of the most complex areas, the intermediate rural fringe surrounding Toronto. A “severance theory” is presented, based upon a review of theories of externalities and land economics. To test the severance theory, a regression model is used. The research provides what may be the first quantitative information in North America on the extent of the pecuniary externalities alleged to arise from severances, and hence provides some of the information that would be required to evaluate empirically proposed and existing land use policies. The severance theory predicts that severance activity would increase the price of nearby farmland. From the statistical analysis, it is concluded that severances did affect farmland values but that the relationships were more complex than anticipated. Severances influenced farmer buyers to pay higher prices for farmland. However, the predominating nonfarm buyer of farmland in York Region consistently reacted as if there were negative externalities from severances and paid lower prices where severances had an influence. The implications of this study for public policies such as the Ontario Food Land Guidelines are limited by the study area and time period examined. The approach used in this study should be applied to other areas, especially ones less subject to purchases by nonfarmers, in order to define more precisely the impact of severance activity on nearby farmland values.