Estimating cigarette-tax revenue

This paper presents a cigarette-tax revenue model which predicts potential tax revenues. The model is unique in that revenues are estimated in a two-stage process which is invariant to the type of state sales/excise tax regime. The model also controls for cross-state spillover effects. The empirical model was estimated using data from Alabama and surrounding states from 1955 to 1990. The results suggest the demand for cigarettes in Alabama is relatively inelastic; spillover effects are found but are small in scale; and additional revenue potentials can be realized by changes in the tax regime.     

Estimated Value of Increased Pricing Accuracy for Fed Cattle

To improve vertical market coordination beef packers have introduced fed cattle grid pricing systems that offer premiums or discounts for varying carcass quality and yield grades. This study calculates the value of cattle quality information for producers considering live, dressed, and grid pricing alternatives. The value of fed cattle quality and yield grade information is at least $15/head. When fed cattle are sold on a live weight basis, high-quality cattle subsidize low-quality cattle by an average of $30/head. Price signals that could improve beef market coordination are ignored when fed cattle are marketed using traditional live or dressed weight methods.     

Digital divide: determinants and policies with special reference to Asia

Access to the new information and communication technologies (ICT) remains extremely unequally distributed across and within societies. While there have been a good deal of popular discussions about this “digital divide”, not much is known about the quantitative significance of its various determinants. By undertaking a set of cross-country regressions, the paper finds that income, education, and infrastructure play a critical role in shaping the divide. Based on this analysis, the paper also offers some policy suggestions as to how to promote a wider diffusion of ICT in poorer societies.     

Social and Symbolic Capital and Responsible Entrepreneurship: An Empirical Investigation of SME Narratives

This paper investigates links between social capital and symbolic capital and responsible entrepreneurship in the context of small and medium enterprises (SMEs). The source of the primary data was 144 ‘Business Profiles’, written by the owner-managers of small businesses in application for a Small Business Awards competition in 2005. Included in each of these narratives were claims relating to the firms’ contributions to wider society, relationships with customers, employees and stakeholders. These narratives were coded and classified in a framework drawn from Nahapiet and Ghoshal’s (1998, Academy of Management Review 23(2), 242–266) categorisation of social capital. The analysis revealed a range of strategic orientations towards the development of social and symbolic capital, along a conceptual continuum ranging from being responsible for oneself to being responsible for others. Overall, the evidence demonstrates the significance of the power inherent in the social relations of SMEs as a force for ethical behaviour, and suggests that normative theories of the development of social capital may provide ‘competitive advantage’ through responsible behaviour for small business in the global economy.Ted Fuller is a Professor of Entrepreneurship and Strategic Foresight, and Head of the Centre for Entrepreneurship and SME Development, Teesside Business School, University of Teesside.Yumiao Tian is a postgraduate research student in the Centre for Entrepreneurship and SME Development, Teesside Business School, University of Teesside.     

Human due diligence

Most companies do a thorough job of financial due diligence when they acquire other companies. But all too often, deal makers simply ignore or underestimate the significance of people issues in mergers and acquisitions. The consequences are severe. Most obviously, there's a high degree of talent loss after a deal's announcement. To make matters worse, differences in decision-making styles lead to infighting; integration stalls; and productivity declines. The good news is that human due diligence can help companies avoid these problems. Done early enough, it helps acquirers decide whether to embrace or kill a deal and determine the price they are willing to pay. It also lays the groundwork for smooth integration. When acquirers have done their homework, they can uncover capability gaps, points of friction, and differences in decision making. Even more important, they can make the critical "people" decisions-who stays, who goes, who runs the combined business, what to do with the rank and file-at the time the deal is announced or shortly thereafter. Making such decisions within the first 30 days is critical to the success of a deal. Hostile situations clearly make things more difficult, but companies can and must still do a certain amount of human due diligence to reduce the inevitable fallout from the acquisition process and smooth the integration. This article details the steps involved in conducting human due diligence. The approach is structured around answering five basic questions: Who is the cultural acquirer? What kind of organization do you want? Will the two cultures mesh? Who are the people you most want to retain? And how will rank-and-file employees react to the deal? Unless an acquiring company has answered these questions to its satisfaction, the acquisition it is making will be very likely to end badly.     

Will the U.S. Auto Market Come Back?

In the Great Recession, the automotive industry has been one of the hardest hit sectors, along with the housing and financial industries. As the largest and most cyclical consumer spending sector, the automotive sector has historically been important for economic recovery after every postwar recession. Will it be the same this time? Will consumer demand for new vehicles stay depressed in a prolonged deleveraging process? In this paper, we present an analysis of the fundamental factors that determine long-term vehicle demand, together with the factors that drive its cyclical fluctuations. We believe the recovery of the auto industry is inevitable and that it will again become an important driver of the mid-term U.S. recovery. However, a quick return to the precrisis peak is unlikely, given the slow recovery of employment and housing markets and higher energy prices.     

中美对话 谁上谁下？

又一轮中美战略经济对话（SED）结束了。上一次由于双方表现不佳，我们认为对话是失败的，那么这次能打几分呢？这次要好于上次，不过奇怪的是，双方与会者在很多方面更换了角色。别忘了中美战略经济对话不仅仅关于经济，还涉及安全问题。当峰会临近之际，朝鲜半岛的局势恶化了。     

Complaining: A function of attitude,personality, and situation

The random nature of situations where an acquired product or service contains a defect or deficiency means that consumers usually have no experience of seeking redress (i.e., complaining), or their experience may be from totally different situations. Because of this, most people have not formed a clear attitude about how to behave in the specific situation and they may also be uncertain about social norms for proper behavior. Hence, their behavior is guided by more general traits and dispositions as well as by situation‐specific factors, which are bound to exert a relatively strong influence on behavior. This study confirms that the likelihood that consumers will complain over defects and deficiencies depends a lot on the situation and specifically on the size of the loss due to the defect and deficiency. However, some individuals refrain from complaining even in serious cases. This study shows that the propensity to complain depends on the person's attitude toward complaining and on personality traits (inclination to become dissatisfied). The two latter variables reinforce one another. © 2009 Wiley Periodicals, Inc.     

De-growth: Do you realise what it means?

The implications of de-growth are much more far reaching and radical than seems to be appreciated. It is important to start with a brief consideration of the magnitude and nature of the global predicament, because when this is understood it becomes clear firstly that consumer-capitalist society cannot be made sustainable or just, secondly that a satisfactory and viable post-capitalist society must take a particular form, and thirdly that specific implications for transition strategy are indicated.