Testing the Empirical Relationship between Best Management Practice Adoption and Farm Profitability

Several "best management practices" (BMPs) aimed at reducing movement of nutrients, pesticides, and sediment into surface water resources have been developed and promoted by Extension and other agencies over the past several years. This study utilizes actual farm-level economic and BMP adoption data to rigorously analyze the relationship between BMP use and farm profitability. Results indicate that adoption of nutrient BMPs has a significant positive effect on net farm income (NFI) for wheat and corn, while herbicide BMP adoption, particularly use of BMPs related to the application of atrazine on corn, has a small (but statistically significant) negative impact on income. Adoption of soil conservation BMPs is not shown to have a statistically significant impact on farm income.     

A theory of socialistic internal capital markets

We develop a model of a two-division firm in which the “strong” division has, on average, higher quality investment opportunities than the “weak” division. We show that, in the presence of agency and information problems, optimal effort incentives are less powerful and thus managerial effort is lower in the strong division. This leads the firm to bias its project selection policy against the strong division. The selection bias is more severe when there is a larger spread in the average quality of investment opportunities between the two divisions.     

Cause-Brand Community: Toward Consumer Citizenship

Brand communities have been proven to be successful with commercial brands. However, a review of the literature indicated that brand community has not been studied in charity organizations. To shed light on this issue, a qualitative research was conducted among stakeholders of an internationally well-known charity organization using three different techniques: in-depth interviews, netnography, and nonparticipant observation at the charity’s brandfest. The results suggest that cause-brand communities exist, sharing the same elements of commercial-brand communities, but the two have some unique characteristics, such as the existence of different stakeholders and small communities that demonstrate an extreme commitment, the promotion of consumer citizenship among them, and the lack of oppositional brand loyalty. A cause-brand community has important managerial implications as it helps build the charity’s brand equity; at the same time, a well-known brand supports the construction of the brand community.     

TOOLS FOR RE‐RANDOMIZATION

With the rising popularity of field experiments in economics, re‐randomization schemes have emerged as tools to induce balance in observable variables across treatment groups. However, re‐randomization is not fully understood and the methodologies to estimate its effects on the distribution of parameters are still under‐developed. This paper helps to close that gap by suggesting an asymptotically normal re‐randomization scheme and bootstrapping procedure to carry inference under a wide range of estimators and re‐randomization schemes.     

Intolerable nuisances: some laboratory evidence on survivor curve shapes

The fraction of a user population willing to tolerate nuisances of size x is summarized in the survivor curve S(x); its shape is crucial in economic decisions such as pricing and advertising. We report a laboratory experiment that, for the first time, estimates the shape of survivor curves in several different settings. Laboratory subjects engage in a series of six desirable activities, e.g., playing a video game, viewing a chosen video clip, or earning money by answering questions. For each activity and each subject we introduce a chosen level \(x \in [x_{\min }, x_{\max }]\) of a particular nuisance, and the subject chooses whether to tolerate the nuisance or to switch to a bland activity for the remaining time. New non-parametric techniques provide bounds on the empirical survivor curves for each activity. Parametric fits of the classic Weibull distribution provide estimates of the survivor curves’ shapes. The fitted shape parameter depends on the activity and nuisance, but overall the estimated survivor curves tend to be log-convex. An implication, given the model of Aperjis and Huberman (SSRN, doi:  10.2139/ssrn.1672820, 2011), is that introducing nuisances all at once will generally be more profitable than introducing them gradually.     

Latin America: Environmental and firm-level challenges

During the last decades Latin America, as the rest of the world, has gone through a process of increased commercial openness and due to the commodities price boom of the last years the region has grown significantly. However competitiveness hasn't improved much, mostly due to lack of concern from governments. Companies, though, cope with the increase in competition resulting from the greater openness by refining their management practices in the different management areas: marketing, finance, information technology and strategy. Academics study these effects in the papers that comprise the special issue of the Journal of Business Research with the best papers from the conferences of the Business Association for Latin American Studies (BALAS).     

EU quality labels in the Italian olive oil market: How much overlap is there between geographical indication and organic production?

In the early 1990s, the European Union established two main quality schemes: geographical indications (GIs) and organic production (OP). Despite the abundant literature on the EU quality schemes applied to many food categories, including extra virgin olive oil, in most studies, GIs and OP are analysed separately, under the assumption that they are independent. This study aims to prove that synergies exist between GIs and OP labels. We analysed EU labelling on GIs and organic attributes simultaneously using bivariate probit models, and also assessed the level of independence from each other. A survey was administered to Italian consumers to elicit their purchasing behaviour of olive oil. The results found a correlation between the two certifications, highlighting the promising use of both certifications for olive oil products.     

Improving road transport operations through lean thinking: a case study

Traditionally, logistics and transportation problems have been addressed through mathematical modelling, operations research, and simulation, but criticism has emerged about their effectiveness to actually address real-life problems. This paper documents a case study whereby the road transport operations of a leading Mexican brewery were improved through lean thinking and waste reduction. Two lean-based principles and tools were combined: the Seven Transportation Extended Wastes and Transportation Value Stream Mapping. Three systematic steps were proposed to facilitate the implementation of improvement. Feasibility studies conducted in this research suggested that lean thinking is an effective alternative for the improvement of road transport operations. The findings of this research could be used as guidance for transport managers to improve road transport operations. This paper also expands the limited evidence of the application of lean thinking in road transport logistics and highlights the research areas where its application has been concentrated in this sector.     

Contractual restrictions on insider trading: a welfare analysis

Summary. This paper analyzes the welfare effects of permitting firms to negotiate contractually the right to allow corporate insiders to trade shares in the firm on private information. A computational framework is employed to (i) analyze formally the effects of insider trading on managerial investment choice, the informational efficiency of stock prices, and the welfare of all investor types; and (ii) examine the effectiveness of various compensation schemes (such as stock and insider trading rights) to mitigate conflicts of interest between managers and shareholders. I show that shareholders will typically choose not to grant insider trading rights to managers. This decision is socially optimal. Received: September 23, 2000; revised version: December 12, 2000