Substitute or complement? Assessing renewable and nonrenewable energy in OECD countries

The elasticity of interfuel substitution between renewable and nonrenewable energy is key to establishing effective climate change policy. This is the first study to estimate the elasticity of substitution between different fossil fuels and renewable resources. We used 12 manufacturing industry-level datasets for the OECD countries from 1995 to 2009. We found a complementary relationship from nonrenewable energy to renewable energy in eight industries, whereas a substitute relationship was maintained for four industries. In particular, the food and pulp industries had a strong complementary relationship.     

Using capabilities to project growth, 2010–2030

We forecast average annual GDP growth for 147 countries for 2010–2030. We use a cross-country regression model where the long-run fundamentals are determined by the countries’ accumulated capabilities and the capacity to undergo structural transformation.     

On the Use of Intra-Industry Information to Improve Earnings Forecasts

We investigate whether earnings forecasts are improved by earlier earnings disclosures by firms in the same industry. We find improvements for time series forecasts, but not for analysts' forecasts. Considering prior earnings announcements reduces correlations between forecast errors and security price reactions to earnings announcements, even when incorporating these announcements improves forecast accuracy. Our explanation for this anomaly, which is supported by additional analysis, is that intra-industry information facilitates predicting transitory, rather than permanent, earnings components. The question of whether information transfers improve earnings forecasts provides the context for the analysis, but the primary contribution is the documentation of intra-industry information transfers in a setting other than capital markets.     

A dynamic measure of inaccuracy between two past lifetime distributions

In the present communication we introduce a dynamic measure of inaccuracy between two past lifetime distributions over the interval (0, t). Based on proportional reversed hazard rate model (PRHRM), a characterization problem for this dynamic inaccuracy measure has been studied. An upper bound to the dynamic measure of inaccuracy H*(f, g; t) has also been derived.     

The resource dynamics of early internationalising Indian IT firms

Building on the resource-based view of the firm, this study explores how firms entering into early internationalisation combine different resources to discover the international market opportunities. Based on an in-depth analysis of case studies of five knowledge-intensive firms from India, this study suggests that the differences in the extent of resources available and their combinations influence the early stage of the internationalisation process and pace of learning in the foreign markets. This study contributes to the existing research on international entrepreneurship by explaining how new international ventures overcome the challenges of internationalisation by wisely utilising a broad set of available and potential resources during their early internationalisation efforts and gradually shift the focus on the internalisation of resources. Moreover, this study suggests that the effects of the combination of resources vary across different ventures. A strong combination can increase internationalisation and minimise the risks of failure in new international ventures.     

Foreign capital,return to education and child labour

The paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy using a three-sector general equilibrium framework with child labour. We show that reduction in poverty is not a necessary condition for the problem of child labour to improve in the developing economies. Economic reforms like an inflow of foreign capital can mitigate the incidence of child labour by raising the return to education and lowering the earning opportunities of children.     

Techno-economic evaluation of 3G and beyond mobile business alternatives

Three business case scenarios in the context of emerging mobile access network technologies and business players have been studied and the economical results are presented. The aim is to cover some of the most interesting business alternatives in providing the new 3G and beyond services including cases where the operator may have an existing second-generation cellular network or not, and a license for the 3G UMTS network or not. The scenarios have been analyzed in different Western European country groups that are not exactly representative of any defined country, but rather share typical demographic characteristics. Investments and operational expenditures are identified and the results show how diverse business models and technologies lead to different revenue, cost, and profitability profiles. The business case scenarios include incumbent’s 3G evolution with UMTS compared to an alternative 3G technology deployment with mobile WiMAX, new entrant’s UMTS deployment business case, and a greenfield CDMA450 deployment business case.     

The perceived role of ethics and social responsibility: A scale development

Marketers must first perceive ethics and social responsibility to be important before their behaviors are likely to become more ethical and reflect greater social responsibility. However, little research has been conducted concerning marketers' perceptions regarding the importance of ethics and social responsibility as components of business decisions. The purpose of this study is to develop a reliable and valid scale for measuring marketers' perceptions regarding the importance of ethics and social responsibility. The authors develop an instrument for the measurement of the perceived role of ethics and social responsibility (PRESOR). Evidence that the scale is valid is presented through the assessment of scale reliability, as well as content and predictive validity. Finally, future research needs and the value of this construct to marketing are discussed. Anusorn Singhapakdi is Associate Professor of Marketing at Old Dominion University. He received his Ph.D. in Marketing. His has published in the Journal of Macromarketing, the Journal of Business Ethics, the Business and Professional Ethics Journal, the Journal of Public Policy and Marketing, the Journal of Personal Selling and Sales Management and the Journal of the Academy of Marketing Science. He has presented papers at various professional conferences including the American Marketing Association and the Academy of Marketing Science. Scott J. Vitell is Associate Professor of Marketing and holder of the Phil B. Hardin Chair of Marketing at the University of Mississippi. He received his Ph.D. in Marketing. His work has previously appeared in the Journal of Macromarketing, the Journal of Business Ethics, Research in Marketing, the Business and Professional Ethics Journal and the Journal of the Academy of Marketing Science as well as various other journals and proceedings. Kumar C. Rallapalli is Assistant Professor of Marketing at Troy State University. His research has been published in the Journal of Business Ethics, the Journal of the Academy of Marketing Science and the Journal of Pharmaceutical Marketing and Management as well as various national and regional proceedings. His research interests include marketing ethics, health care marketing, international marketing and direct marketing. Kenneth L. Kraft is Director of Graduate Studies at the University of Tampa. He received his DBA in Management. He has published numerous articles on Business Ethics, Organization Design and Strategic Planning in Journals such as the Academy of Management Review, America Business Review and the Journal of Business Ethics. His current research interest centers on the measurement of moral intensity.     

SIMULATION-BASED PORTFOLIO OPTIMIZATION FOR LARGE PORTFOLIOS WITH TRANSACTION COSTS

We consider a portfolio optimization problem where the investor's objective is to maximize the long-term expected growth rate, in the presence of proportional transaction costs. This problem belongs to the class of stochastic control problems with singular controls , which are usually solved by computing solutions to related partial differential equations called the free-boundary Hamilton–Jacobi–Bellman (HJB) equations . The dimensionality of the HJB equals the number of stocks in the portfolio. The runtime of existing solution methods grow super-exponentially with dimension, making them unsuitable to compute optimal solutions to portfolio optimization problems with even four stocks. In this work we first present a boundary update procedure that converts the free boundary problem into a sequence of fixed boundary problems. Then by combining simulation with the boundary update procedure, we provide a computational scheme whose runtime, as shown by the numerical tests, scales polynomially in dimension. The results are compared and corroborated against existing methods that scale super-exponentially in dimension. The method presented herein enables the first ever computational solution to free-boundary problems in dimensions greater than three.     

Bill-and-Keep peering

Peering arrangements between Internet Service Providers (ISPs), in which providers agree to carry traffic originating from a peer, are common in the Internet. A common contractual peering agreement between smaller ISPs is “Bill-and-Keep”, where no money changes hands between the peers. This paper first investigates a situation when ISPs who have access to a transit ISP capable of handling their traffic for a fee, decide to peer incurring some fixed peering cost. Using a simple model it is shown that Bill-and-Keep peering is the fair and efficient outcome if the transit ISP charges for both inbound and outbound traffic and transit charges as well as costs of peering are symmetric. Next, complementarity between providers at the operational level, as measured by improvement in quality of service (QoS), is analyzed using an idealized model. Assuming that each provider incurs costs, or degradation in QoS, from its traffic traversing its own as well as the peer's links and chooses the amount of traffic to send on its peers’ links in its self-interest, the Nash equilibria of the resulting one shot game and then of an infinitely repeated game are analyzed. For the one-shot game, it is established that, while it is not possible for all the providers to be worse off, it is certainly possible for all of them to be better off. An intuitive sufficient condition for each of the providers to be better off in Nash equilibrium is then derived. Further, it is shown that providers that are better off in the one-shot game can cooperate using threat strategies in an infinitely repeated game and can each be even better off. Coalition formation between peers as a dynamic process is also investigated and some examples and conjectures on some preliminary findings are provided. Finally, the policy implications of the findings are discussed.