Effects of subsidies in Russian dairy farming

This study develops a microeconometric model of specialized dairy farms in the Moscow region using panel data over the period 1995–2001. The model is used to analyze the role of subsidies on profit as well as input and output allocation. Theoretical conditions for short‐term profit maximization are not rejected by the data. Differences between farms allow for a fixed‐effect specification. The dairy producers in the region demonstrate a low responsiveness to market signals, but technology change becomes important. Labor, land, and livestock had low shadow prices. Although subsidies have a distorting effect on the input–output mix, this study shows they relieve the credit constraints on dairy farms and have an important positive influence on farm profit.     

Disentangling the tourism sector’s fragmentation: a hands-on coding/post-coding guide for interview and policy document analysis in tourism†

Qualitative tourism research is inevitably multidimensional. The fragmentation of the tourism sector across policy domains, scales, space and stakeholders leads to ‘blurry’ and aggregated datasets. Yet, tourism studies have a weak record in describing how results emanate from raw qualitative data. This paper presents a coding/post-coding scheme that proved robust in disentangling multidimensional tourism datasets in a middle-range research project that necessitated reflecting on the position of the researcher and the literature study during the data analysis. It describes the pragmatic decisions taken to organise the qualitative data from a research project on cross-border tourism and regional development processes. The paper also functions as a reflexive account of how this scheme came into existence. It contributes to the tools available to practically acknowledge the fragmentation of the tourism sector and the resulting multidimensional qualitative data, and calls for a more open accounting of the data analysis process and the underlying research values in tourism studies.     

Project Valuation With Time-Varying Cash Flows: A Bayesian Approach

This article investigates the valuation of a project when the distributions of cash flows vary over time. The decision maker is assumed to be a Bayesian decision maker under uncertainty. Using the dynamic programming principle of backward induction and assuming that the capital asset pricing model is valid in each time period, we derive the project's valuation formulas and systematic risks, and investigate their characteristics. Our valuation formulas embed a Bayesian learning effect and differ from the traditional textbook capital budgeting formulas.     

The dynamics of preference formation

Individual's preferences are explained on the basis of two types of influences, his own past consumption and the consumption of others which is directly observable by him. These effects are estimated using the “individual welfare function” approach of Van Praag, and a model of preferences formation.     

Individual welfare functions and social reference spaces

A model of interdependent welfare functions is developed. The relationship between the parameters of an individual's welfare function and the income distribution in his Social Reference Space is established. Results based on Dutch data are presented.     

Eigenstructure,multiplier and game characterizations of administrative personnel requirements and activities

A time-and-cost accounting characterization of the structure of administrative personnel in an organization (industry) is used to relate the primary input of a Leontief economy to models of attenuation, promotion and recruitment of staff. A multiplier analysis is then utilized to obtain direct and indirect administrative load requirements. The effects of variation in wages and pattern of administrative activities on the size of the administrative component are discussed in the context of a matrix game formulation.     

Empirical comparison of the shape of welfare functions

This study compares the fit of the lognormal welfare function proposed by Van Praag (1968) with the fit of 12 other functions. The comparison uses a sample of about 14;000 respondents. The lognormal function outperforms 11 alternatives in terms of the residual variance criterion, while the logarithm performs slightly better.     

A recommendation for applied researchers to substantiate the claim that ordinal variables are the product of underlying bivariate normal distributions

A simulation study was carried out to study the behaviour of the polychoric correlation coefficient in data not compliant with the assumption of underlying continuous variables. Such data can produce relatively high estimated polychoric correlations (in the order of .62). Applied researchers are prone to accept these artefacts as input for elaborate modelling (e.g., structural equation models) and inferences about reality justified by sheer magnitude of the correlations. In order to prevent this questionable research practice, it is recommended that in applications of the polychoric correlation coefficient, data is tested with goodness-of-fit of the BND, that such statistic is reported in published applications, and that the polychoric correlation is not applied when the test is significant.     

Alternative utility functions: review,analysis and comparison

The paper reviews the development of von Neumann and Morgenstern (vNM) utility theory. Kahneman and Tversky’s (KT’s) prospect theory is introduced. The vNM utility function is compared and contrasted with KT’s value function. We prove the uniqueness of two popular utility functions. First, we show that all power utility functions possess constant RRA. And, we show that all exponential utility functions have constant ARA. The paper concludes by discussing applications, strengths and weaknesses of various utility functions.