Addressing shortcomings in the Household Responsibility System: Empirical analysis of the Two-Farmland System in Shandong Province

Despite apparent overwhelming benefits, implementation of the Household Responsibility System (HRS) in China contained a number of flaws. The Two-Farmland System (TFS), which originated in Pingdu City in Shandong Province, sought to address the twin problems of land fragmentation and economies of size. A stochastic frontier production function analysis that isolates the impacts of land allocation reforms suggests that the TFS increased efficiency by around 7%. This article highlights the need for empirical analysis to assess objectively the merits or otherwise of particular reforms.     

Empirical Effects of Performance Contracts: Evidence From China

Performance contracts (PCs)—contracts signed between thegovernment and state enterprise managers—have been usedwidely in developing countries. China's experience with suchcontracts was one of the largest experiments with contractingin the public sector, affecting hundreds of thousands of statefirms, and offered a rare opportunity to explore how PCs work.On average, PCs did not improve performance and may have madeit worse. But China's PCs were not uniformly bad; in fact, PCsimproved productivity in slightly more than half of the participants.PC effects were on average negative because of the large lossesassociated with poorly designed PCs. Successful PCs were thosethat featured sensible targets, stronger incentives, longerterms, managerial bonds, and were in more competitive industries.Selecting managers through bidding was not associated with performanceimprovement. Good PC features were more often observed in state-ownedenterprises (SOEs) under the oversight of local governments,that faced more competition, that were smaller in size, andthat had better previous performance.     

Employment Protection,Threat and Incentive Effects on Worker Absence

This article provides new evidence on the effect of changes in employment protection on worker absence. We use novel multi‐organization data to examine changes in worker absence as workers move from temporary to permanent employment contracts. We demonstrate a robust positive effect of employment protection on sickness absence. It has also been suggested that the impact of employment protection on absence and effort is due to a fear of dismissal. We also provide evidence that suggests that temporary workers' absence is influenced by incentives to attain jobs with protection that is unrelated to threat of dismissal. This has not been considered in earlier research. This channel of employment protection effects has important policy implications.     

Modelling the influence of decision makers on the future

The article describes attempts to use futures research in a specific framework: the development of a model to be used as a basis for action within a UK local authority. The model is thus designed to explore the ramifications of the decision-making activities of real people within a specific organisation. It represents an original attempt to include explicitly the acts of human endeavour which influence the direction of the future within a model for indicating possible futures. The author describes the current state of the model-building activity which is intended to depict the policy-making process. The model is based upon concepts drawn from the fields of cognitive psychology and sociology.     

Audit Committee Effectiveness in Victorian Local Government

This research addressed the questions: do audit committees (AC) in Victorian local government function effectively? Qualitative and quantitative data were collected to measure the perceptions, attitudes and perspectives of mayors, chief executives and chairs of the AC. The results were compared with perceptions of committee members of the Local Government and Shires Association of New South Wales and board members of the Municipal Association of Victoria as the representative bodies of local government in New South Wales and Victoria. There was a similarity of views in relation to: (1) inputs of an AC; (2) the behavioural nuances of the rigour of debate, trust and effective communications; and (3) the relationships with councillors and management. Limitations to effectiveness included: (1) attraction and retention of members; (2) the variability of expertise and the skills of the members; (3) continuing professional development for members; (4) ‘gaming’ behaviours; (5) power games associated with the appointment process; and (6) domination of the AC by members or management. The suggested way forward is the reinforcement of a strong governance culture in local government and an effective AC providing oversight of compliance, governance, internal control and risk processes.     

A typology for defining agritourism

Agritourism has been studied in various ways and contexts. It can be argued, however, that studies have yet to provide a clear and basic understanding of the characteristics that underpin and define agritourism. This paper proposes an original typology for defining agritourism by identifying the key characteristics currently used to define agritourism in the literature and organising them into a transparent and structured framework. For the first time, the agritourism typology clarifies and classifies definitions of agritourism that currently exist in the literature. It therefore offers a comprehensive framework that can be used as a basis for more informed debate and discussion and for future empirical research.     

Budgeting and standard costing practices in New Zealand and the United Kingdom

The findings of a survey of budgeting and standard costing practices in New Zealand (NZ) and United Kingdom (UK) manufacturers are reported. The results suggest that some commentators' predictions of a demise in standard costing and variance analysis are overstated. It has been found that standard costing systems continue to be popular and that the majority of accountants surveyed do not envisage abandonment of standard costing and variance analysis in advanced manufacturing technology environments. Comparisons between budgeting and standard costing practices used in NZ and the UK reveal a high degree of consistency. In the case of the few differences that have been observed, it appears that there is a greater lag behind prescribed practice amongst NZ manufacturers. The main differences noted are: a greater proportion of performance reports used in NZ budget centers fail to distinguish between controllable and non-controllable costs; NZ manufacturers are more reliant on historic data when setting standard costs; when distinguishing between variable and fixed costs, there is a greater tendency in NZ to simply treat direct costs as variable and overhead costs as fixed.