Resource allocation, equity and public risk: Dying one at a time vs dying all together

This paper focuses on the evaluation, from an individual and societal perspective, of risk in terms of possible loss of life due to an exposure to two different types of events over a period of time. The two types are: risk of death from a catastrophic event (a sudden death of many people in a disaster at a yet unknown point in time) expected to occur during a planning period, or risk of death from another event (e.g. disease, road accident, etc) which claims fewer lives each year. but for which the expected total number of deaths over the planning period is equal to the expected number of deaths from the catastrophic event. Our analysis considers the extreme case in which these two types of events have the same probabilities of death every year and the same expected number of fatalities over the planning period. The individual's decision problem is described using a von-Neumann Morgenstern (vNM) utility function. The model suggests that the choice between these types of events depends on the value of the following variables: the probability of death over the planning period, the length of the planning period, the individual's time preference pattern, and the utility of being in different anxiety states. Stochastic extensions that may direct the public decision making process (involving aggregated preferences) are discussed. We also discuss issues of implementation.     

Bank-type specific determinants of sensitivity of loan-loss provisions to business cycle

In this paper, we explore several new factors which may affect the procyclicality of loan-loss provisions in all commercial and cooperative banks operating in Poland between 2000 and 2012. More specifically, we test whether there are visible differences between commercial and cooperative banks in the sensitivity of those provisions to the business cycle. Our results show that whereas loan-loss provisions are procyclical in both cases, the procyclicality is particularly prominent and stronger in the case of commercial banks, than of the cooperative banks. Additionally, in contrast to existing findings, we establish that the negative impact of the business cycle on loan-loss provisions is greater in the case of small banks than of medium or large ones, this feature being common for both commercial and cooperative banks. We have identified two factors which affect procyclicality of loan-loss provisions in different ways for commercial and cooperative banks. The first factor is the empirical importance of capital adequacy ratio size. In commercial banks, the capital ratio size exerts a statistically significant impact on the procyclicality regardless of capitalization. The other factor is discretionary income-smoothing, as we find that the statistically significant increase of procyclicality due to the high discretionary income-smoothing is present only in cooperative banks.     

Green taxation and individual responsibility

The current article aims at studying the effects of taxation on environmental quality, in an economy where its agents are responsible. Individual responsibility towards nature is modelized by the voluntary effort to which the households have agreed insofar as the improvement of environmental quality is concerned. It is an original way to show that the individuals may feel committed towards the environment and assume obligations towards it as well as towards environmental public policy. Given that, in our model, such effort is taken from one's allocated time for leisure, its opportunity cost is that of the sacrificed time for leisure, and is therefore equal to the individual's wage. We shall highlight that State intervention through the introduction of a (green) tax always crowds out individual responsibility. However, the intensity of this crowding-out depends on the performance of the State. Moreover, State intervention could, depending on the amount of crowding-out, reduce the overall quality of the environment. In a general equilibrium setting, we show that the crowding-out effect is not systematic. This is because there will then be an interaction between effort (or work time) and the cost of that effort (linked to the individual's wage, and therefore to production and finally to work/effort). In this article, we shall discuss the conditions under which public policy crowds out individual responsibility within this context.     

Sensitivity and stability of efficiency classifications in Data Envelopment Analysis

A new technique for assessing the sensitivity and stability of efficiency classifications in Data Envelopment Analysis (DEA) is presented. Here developed for the ratio (CCR) model, this technique extends easily to other DEA variants. An organization's input-outut vector serves as the center for a cell within which the organization's classification remains unchanged under perturbations of the data. For the l ₁, l and generalized l norms, the radius of the maximal cell can be computed using linear programming formulations. This radius can be interpreted as a measure of the classification's stability, especially with respect to errors in the data.Abraham Charnes passed away December 19, 1992.     

Respondent Related Correlates of Response Behaviour in Audience Research

Audience research by means of surveys has a long tradition, certainly withinarts and humanities oriented research. Yet, due to selective sampling and unitnonresponse it frequently lacks the methodological rigour to make scientificallyvalid statements based on sample estimates. This is one of the first attempts toexplore unit nonresponse in audience research. More specifically, it focuses onthe explanation of nonresponse by the socio-demographic and more topic relatedcharacteristics of a theatre audience. Using a two-step procedure for the on-sitecollection of data, the characteristics of respondents are compared with those ofnonrespondents. In step 1 the composition of the theatre audience is comparedto a proxy of a theatre population benchmark based on a weighted sample of theFlemish population (APS-2000). The validity of this best available method isdiscussed. Step 2 compares respondents with nonrespondents on a micro-level:ignoring unit nonresponse in step 1, we use logistic regression to map selectionin step 2. The chance of cooperating with the survey has been found to increasewith educational attainment and vary according to occupational category. Moreover,involvement with survey topic is confirmed as a strong predictor of survey participation.Gender, age and experience with theatre remain insignificant in predicting responsebehaviour. These findings are compared with the socio-demographic correlates ofresponse behaviour in general populations. Implications for statistically controllingfor nonresponse bias in audience research are discussed. Suggestions for furtherresearch are presented.     

The effect of cost information on buyer–supplier negotiations in different power settings

We investigate the influence of total cost of ownership (TCO) information on buyer–supplier negotiations in different power settings. Based on social exchange theory and recent literature on information processing, we expect that buyers with detailed TCO information and less power than their negotiation partners may try to (re)gain control over their own outcomes by sharing information. The results of our experiment indicate that the performance disadvantage of less powerful buyers is less pronounced when the buyer has detailed TCO information, whereas more powerful buyers do not seem to be able to profit from TCO information. These somewhat counterintuitive findings are explained through detailed analysis of the buyer’s negotiation behavior, which shows that less powerful buyers who have access to TCO data use problem solving techniques more frequently than powerful buyers, who tend to rely on distributive bargaining techniques instead. We conclude that power can motivate a failure to share TCO information, resulting in less effective interfirm negotiation outcomes.