Malmquist-type indices in the presence of negative data: An application to bank branches

In this paper we develop an index and an indicator of productivity change that can be used with negative data. For that purpose the range directional model (RDM), a particular case of the directional distance function, is used for computing efficiency in the presence of negative data. We use RDM efficiency measures to arrive at a Malmquist-type index, which can reflect productivity change, and we use RDM inefficiency measures to arrive at a Luenberger productivity indicator, and relate the two. The productivity index and indicator are developed relative to a fixed meta-technology and so they are referred to as a meta-Malmquist index and meta-Luenberger indicator. We also address the fact that VRS technologies are used for computing the productivity index and indicator (a requirement under negative data), which raises issues relating to the interpretability of the index. We illustrate how the meta-Malmquist index can be used, not only for comparing the performance of a unit in two time periods, but also for comparing the performance of two different units at the same or different time periods. The proposed approach is then applied to a sample of bank branches where negative data were involved. The paper shows how the approach yields information from a variety of perspectives on performance which management can use.     

Développement financier,croissance économique et productivité globale des facteurs en Afrique Sub‐saharienne**

Résumé: L’article analyse empiriquement les liens développement financier (DF)‐croissance économique, et développement financier‐productivité globale des facteurs (PGF) en Afrique Sub‐saharienne. L’étude est basée sur une approche VAR: tests de cointégration de Johansen et modèles à correction d’erreurs. L’échantillon comprend 22 pays et porte sur la période 1960–2002. Les résultats suggèrent que le DF et la croissance, et le DF et la PGF sont cointégrés, dans plusieurs pays. De plus, dans plusieurs cas, la relation entre le DF et la croissance est caractérisée par une causalité bidirectionnelle au sens de Granger, alors que la relation entre le DF et la PGF est caractérisée par une causalité unidirectionnelle allant du DF vers la PGF. Il apparaît, à quelques exceptions près, que le développement financier stimule la croissance dans les pays où cette croissance est soutenue par le progrès technique. L’implication de nos résultats est que toute mesure qui stimule le développement financier, va stimuler la croissance économique à travers l’accélération du progrès technique. Abstract: The paper empirically analyzes the financial development (FD)‐growth nexus, and the financial development‐total factor productivity (TFP) link in sub‐Saharan Africa. The study is based on a VAR approach: Johansen cointegration tests and error correction models. The sample includes 22 countries over the period from 1960 to 2002. Results suggest that FD and economic growth and, FD and TFP are cointegrated for many countries. Moreover, in many cases, the relationship between FD and growth is characterized by bidirectional causality in the Granger sense, whereas the relation between FD and TFP is characterized by a unidirectional causality running from FD to TFP. With few exceptions, it appears that financial development spurs economic growth in countries where that growth is supported by technological progress. The implication of the findings is that any reform that causes betterment in the financial sector will foster economic growth through a sharp increase in technological progress.     

Tourism in Maasai communities: a chance to improve livelihoods?

This paper examines community-based tourism among Maasai communities in Tanzania in the context of national policies that have increasingly devolved control over natural resources to local communities. It focuses on economic revenues generated from tourism growth, their distribution to village communities and the constraints and conflicts resulting from attempts to control or access resources. Specific cases illustrate the political and economic complexity of devolved resource management and increased income generation at the community level. Ecotourism and community-based tourism are frequently claimed to be possible remedies for wildlife and natural resources conservation, but research indicates that implementation and revenue-sharing are far from straightforward. The paper uses case studies from communities in northern Tanzania, in Ngorongoro District (Loliondo and Lake Natron), Simanjiro District and Longido District (West Kilimanjaro) to explore issues between pastoralism, cultivation, hunting tourism, photographic tourism, conservation and governance systems. It discusses the implementation of the 1998 National Forestry and Wildlife Policies, the creation of Wildlife Management Areas and the 1999 Land Act and Village Land Act. Data and experiences were gathered over a three-year period working with the Sand County Foundation – Tanzania from 2006 to 2008. The paper contributes to the assessment and discussion of pro-poor tourism and poverty alleviation concepts.     

Hawkes model for price and trades high-frequency dynamics

We introduce a multivariate Hawkes process that accounts for the dynamics of market prices through the impact of market order arrivals at microstructural level. Our model is a point process mainly characterized by four kernels associated with, respectively, the trade arrival self-excitation, the price changes mean reversion, the impact of trade arrivals on price variations and the feedback of price changes on trading activity. It allows one to account for both stylized facts of market price microstructure (including random time arrival of price moves, discrete price grid, high-frequency mean reversion, correlation functions behaviour at various time scales) and the stylized facts of market impact (mainly the concave-square-root-like/relaxation characteristic shape of the market impact of a meta-order). Moreover, it allows one to estimate the entire market impact profile from anonymous market data. We show that these kernels can be empirically estimated from the empirical conditional mean intensities. We provide numerical examples, application to real data and comparisons to former approaches.     

Commitment to Environmental Management in Hotels in Accra

The sporadic development of hotel facilities in a developing West African city like Accra in Ghana, coupled with their consumption of natural resources and generation of waste has implications for environmental sustainability. This article therefore seeks to ascertain hotel managers’ attitude towards environmental management and to examine their commitment to environmental management through the implementation of environmental policies and programs. The study took the form of a survey of managers of 200 hotels, ranging from budget to four-star rated, employing the stratified random sampling procedure. Though a greater number of hotel managers had a positive attitude towards environmental management, it was the upscale and larger hotels that were more committed to environmental management especially in terms of having; a designated officer responsible for environmental management, written environmental policy statement, environmental action plan, a history of implementing environmental programs and ecolabelling or environment related certification. The article proposes interhotel collaboration in environmental management so that smaller hotels could profit from the experiences and resources of larger hotels.     

The failure of Ricardian equivalence under dynastic altruism

This paper investigates the theoretical accuracy of the Barro [Barro, R.J., 1974. Are government bonds net wealth? Journal of Political Economy, 82, 1095–1117] debt neutrality proposition. We first identify a discrepancy between the transversality condition of a social planning problem and the one of altruistically linked overlapping generations. Then, this discrepancy is exploited to construct public debt policies which affect the competitive equilibrium allocation even when bequests are strictly positive in all periods: a violation of Ricardian equivalence.     

PVYn and Potato Wart Disease Outbreaks in Prince Edward Island: Policy Response and Analysis

This study analyzed the impact of PVYn and potato wart disease outbreaks in PEI on the potato industry. The two disease outbreaks resulted in loss of the U.S. seed export market to PEI producers. The effects of the disease outbreaks were mitigated through value‐added processing. Price premiums for processed potatoes allowed PEI potato farmers to abandon seed export and helped to sustain financial viability potato production. Policy responses to the two disease outbreaks include (i) development of zones policies, which helped to reopen markets into the United States, and (ii) compensation to producers above the minimum levels required under the federal Seeds Act and Regulations. Implementation of the zones policy had beneficial impacts on the potato industry. In contrast, compensation above minimum requirements may set a costly precedent for future disease outbreaks. Dans la présente étude, nous avons analysé les répercussions des flambées de virus PVYn et de galle variqueuse à l'Î.‐P.‐É. sur l'industrie de la pomme de terre. En raison de ces flambées, les producteurs de l'Î.‐P.‐É. ont perdu le marché d'exportation de la pomme de terre de semence vers les États‐Unis. La transformation à valeur ajoutée a aidéà atténuer les répercussions. Les bonifications reçues pour la pomme de terre transformée ont permis aux producteurs de l'Î.‐P.‐É. d'abandonner le marché d'exportation de la pomme de terre de semence et ont contribuéà maintenir la viabilité financière de cette production. Les réactions politiques à ces deux flambées ont inclus: i) l'élaboration de politiques en fonction des zones qui a favorisé la réouverture des marchés étatsuniens; ii) le versement d'indemnisations supérieures à celles prévues par la Loi sur les semences et le Règlement sur les semences. La mise en vigueur de politiques en fonction des zones a eu des effets bénéfiques sur l'industrie. Toutefois, le versement d'indemnisations supérieures aux exigences minimales pourrait créer un précédent coûteux advenant de futures flambées de maladies.     

Transition and development of innovation capacities in Hungary

The paper attempts to synthesize the conclusions of theoretical works dealing with innovation processes and technological strategies in the frame of a national innovation system with some results from a survey of the national innovation system in Hungary.
An important focus of the paper is on the transition situation in Hungary and the role science and technology play and are expected to play to influence the competitiveness of the country. Special attention is therefore given to the new actors in the system. The conclusions are expressed in the form of premises dealing with the multiple impacts of the transition on the Hungarian innovation system.     

Monitoring Policy and Organizational Forms in Franchised Chains

Franchising is nowadays a prominent way to organize the distribution sector. While previous literature suggests that monitoring issues are a critical determinant of organizational choices, it is rather silent on the optimal monitoring strategy once the organization of the chain is set. In this article, we analyze the monitoring policy of chains with both franchised and company-owned units. We develop a model in which a chain monitors its outlets under asymmetric information on local demands and managers’ efforts. We show that partial monitoring (i.e., when the franchisor monitors only a subset of its outlets) represents an optimal monitoring policy. Second, we identify the units that should be monitored. Finally, we discuss the impact of information technologies and outlet location on monitoring policy and how it may affect the proportion of franchised and company-owned units within the mixed chains.     

Regional Climate Change: Trend Analysis of Temperature and Precipitation Series at Selected Canadian Sites

Global climate change does not necessarily imply that temperature or precipitation is increasing at specific locations. The hypothesis of increasing temperature and precipitation trends associated with global climate change is tested using actual annual temperature and precipitation data for nine selected weather stations, spatially distributed across Canada. Vogelsang's (1998) partial sum and Woodward et al's (1997) bootstrap methods are used for testing for trend. Both methods suggest no warming in the Canadian temperature series except for Toronto, Ontario, which had significant increase over time, along with Moncton, New Brunswick, and Indian Head, Saskatchewan, which had marginal increases. There is no evidence of increasing trend in precipitation except for Moncton, New Brunswick, which had a significantly increasing trend. Thus, public policies designed to address the regional effects of climate change need to be adapted for a particular ecological zone, based on knowledge of the climate trends for that region, rather than on general global climate change patterns. Les changements climatiques à l'échelle planétaire ne signifient pas nécessairement que la température et les précipitations sont en augmentation dans des emplacements donnés. Nous avons testé I'hypothèse d'une assoviation de la tendance à la hausse de la température et des précipitations avec les changements climatiques planétaires à partir des données réelles de température et de précipitations obtenues à 9 stations d'observation climatique réparties dans les diverses régions du Canada. Nous utilisons, pour cefaire, la méthode des sommes partielles de Vogelsang (1998) et celle de rééchantillonnage bootstrap de Woodward et al (1997). Les deux méthodes ne révèlent aucun réchauffement de la température dans les séries chronologiques, sauf pour Toronto, en Ontario, où l'on constate une hausse significative en fonction du temps, ainsi que pour Moncton au Nouveau‐Brunswick et Indian Head en Saskatchewan qui marquent de très légères augmentations. Rien n'indique une tendance à la hausse des précipitations, sauf à Moncton où se dessine une tendance significative dans ce sens. Les programmes publics destinés à faire face aux effets régionaux du changement climatique doivent donc être adaptés à chaque zone écologique particulière, à partir d”observations faites dans la région même, plutôt que de la configuration du changement climatique à l'échelle planétaire.