TOWARDS PRACTICAL GUIDELINES FOR MULTIPLE USE MANAGEMENT*

The general acceptance of multiple use as a desirable management goal has not been matched by practical guidelines to implement and achieve that goal. As Pearse [5] rightly noted, the most serious obstacles to applying multiple use principles are usually the lack of appropriate data and lack of established methodology. This study did not face prohibitive problems in valuing extra-market goods, but as with all multiple use studies, it did face the problem of applying the standard economic model of the multi-product firm. It is hoped this particular empirical application of the model contributes generally to the provision of guidelines for multiple use management.     

On the optimal choice of capital intensity in LDCs with migration

"Sen's classic work on the choice of capital intensity of investment is generalized in the light of new theoretical developments and empirical findings concerning rural-to-urban migration in LDCs. This is done by explicitly incorporating a migration function into the basic choice model. Revised conditions for maximization of surplus are derived and compared with Sen's original condition. Some justification for the particular migration function used in the presence of risk-aversion is suggested."     

Foetal Exposure to Air Pollution and Students' Cognitive Performance: Evidence from Agricultural Fires in Brazil*

This paper examines the impact of foetal exposure to air pollution from agricultural fires on Brazilian students' cognitive performance later in life. We rely on comparisons across children who were upwind and downwind of the fires while in utero to address concerns around sorting and temporary income shocks. Our findings show that agricultural fires increase $$, resulting in significant negative effects on pupils' scores in Portuguese and Maths in the $$ grade through prenatal exposure. Back-of-the-envelope calculations suggest that a 1% reduction in $$ from agricultural burning has the potential to increase later life wages by 2.6%.     

Right-to-Work Laws and Geographic Differences in Living Costs: Comment

A bstract . M. Reynolds and M. Edwards , commenting on R. J. Cebula's study of geographic differences in living costs in states with Right-to-Work Laws , seek to extend his results and explore the relevance of alternative variables. Cebula, in reply, addresses the comment and re-estimates the living cost impact of such laws, taking into account additional factors. Even after allowing for additional South/non-South differences , Cebula reports, the original basic model is resilient.     

Ein Index zur numerischen Bestimmung der Niveau-Eigenschaft eines psychologischen Tests

Zusammenfassung Es wird ein Index definiert, der den Grad, in dem ein Intelligenz- oder Leistungstest die Eigenschaften und Bedingungen eines ideal-typischen Niveau-Tests erfüllt, kennzeichnet. Der Index variiert in den Grenzen von 0 bis 1, wobei der Wert 0 einem idealtypischen Schnelligkeitstest (Speed-Test) und der Wert 1 einem idealtypischen Niveau-Test entspricht. Dieser Index kann aufgrund einer einmaligen Testdurchführung bestimmt werden; er ist abh?ngig von der Zeitbegrenzung des Testes und vom Leistungsniveau der untersuchten Stichprobe. Es wird vorgeschlagen, einen Test mitw> > 0,7 als Niveautest, einen solchen mitw<0,3 als Schnelligkeitstest zu bewerten. Die Berechnung vonw wird an Hand bekannter Tests demonstriert und einige Anwendungsbeschr?nkungen er?rtert.

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Summary An index (w) for determining a test as to its degree of being a speed or a power test is proposed varying like a coefficient of correlation from zero to one. This index may be derived from a single testing a posteriori. It is dependent on the given time limit and on the achievement level of the sample tested. From empirical evidence it is suggested to accept a test with an indexw>0,7 as a power test and a test withw<0,3 as a speed test. Numerical examples for calculatingw are given and some restrictions for its application are discussed.

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Herrn Prof. H. Münzner (Berlin) danken die Verfasser für die Durchsicht des Manuskriptes und für seine wertvollen Anregungen.     

Work and Welfare in Economics:

Abstract . Today's conventional economics typically ignores the impact of alternative forms of work organization upon the welfare of the worker. In effect, its methodology is concerned with the welfare of the individual as a consumer, but not with the welfare of the individual as a worker. Hence, welfare conclusions of economics are subject to challenge on grounds of being incomplete. Whether the worker is alienated or achieves self-fulfillment, etc., stands in no necessary relationship to either the formal lines of enterprise ownership, political ideology or form of economic system. Questions of authority and power in work organizations and the workplace conditions affecting the worker on the job transcend them.     

Water accounting for the Orange River Basin: An economic perspective on managing a transboundary resource

The framework for water accounting is applied to an international river basin, the Orange River Basin, which is shared among Botswana, Namibia, Lesotho and South Africa. Each of the riparian states faces water constraints and relies increasingly on shared international water resources. The countries have adopted the principle of an economic approach to water management, once basin human needs are met, and all but Lesotho have constructed national water accounts to assist in water management. The water accounts for the Orange River Basin bring an economic perspective to water management at the regional level. The accounts include supply and use tables, which are used to compare the contribution to water supply from each riparian state to the amount used. The water accounts are then linked to economic data for each country to calculate water use and productivity by industry and country. There are considerable disparities in water productivity among the countries, which should be taken into account in future decisions about water allocation, pricing and infrastructure development.     

Speeding Up the Pace of New Product Development

This study empirically investigates a wide array of factors that have been argued to differentiate fast from slow innovation processes from the perspective of the research and development organization. We test the effects of strategic orientation (criteria- and scope-related variables) and organizational capability (staffing- and structuring-related variables) on the speed of 75 new product development projects from ten large firms in several industries. Backward-elimination regression analysis revealed that (a) clear time-goals, longer tenure among team members, and parallel development increased speed, whereas (b) design for manufacturability, frequent product testing, and computer-aided design systems decreased speed. However, when projects were sorted by magnitude of change, different factors were found to influence the speed of radical and incremental projects. Moreover, some factors that sped up radical innovation (e.g., concept clarity, champion presence, co-location) were found to slow down incremental innovation. Together, the radical and incremental models explain differences in speed better than the general model. This suggests a contingency approach to speeding up innovation. Implications for researchers and managers are discussed.     

Research notes and communications corporate restructuring and strategic change: The effect on diversification strategy and R & D intensity

In the 1980s a number of large corporations restructured their diversified businesses through divestitures. It is hypothesized that restructuring activity focused on firms at intermediate levels of diversification (e.g., related-linked) which have a mixture of related and unrelated business units. Results confirm this hypothesis which explains that such mixed corporate strategies create organizational and control inefficiencies in managing both related and unrelated types of business units. Restructured firms were also found to move towards two types of different internal capital markets (related and unrelated). Most restructuring firms moved toward lower levels of diversification (e.g., related-constrained), although some moved toward higher levels of diversification (e.g., unrelated business). Also, this study finds restructuring firms that changed their corporate strategy by reducing diversified scope increased their R&D intensity. Firms that restructured and increased their diversified scope decreased R&D intensity. This result suggested a partial substitution between diversification and R&D activity.     

How do internal capabilities and external partnerships affect innovativeness?

How do a firm’s internal capabilities and external partnerships contribute to its product and process innovativeness? How do their impacts differ? Based on the theoretical framework of exploitation and exploration, we develop an integrative model linking the impact of both internal capabilities and external partnerships on product and process innovativeness. Survey responses from Taiwanese biotechnology firms indicate that research and development (R&;D), marketing, and manufacturing capabilities have different effects on product and process innovativeness. Of the four types of external partnerships, only partnerships with universities and research institutes seem to add value, whereas partnerships with suppliers, customers, and competitors do not contribute to innovativeness. Moreover, marketing capability and customer partnerships have a positive interaction effect on product innovativeness, while manufacturing capability and supplier partnerships have a positive interaction effect on process innovativeness.