Domestic Support and Border Measures for Processed Horticultural Products

In horticultural markets, trade barriers often apply to the processed products whereas domestic support applies to farm-produced raw commodities. Here we assess the effects of such trade barriers and domestic support by simulating the effects of policy reform on global processing tomato markets, which are faced with modest processed product tariffs and high domestic support in the European Union (EU). Both protection and EU subsidy drive down world welfare, but we find that reducing import tariffs for tomato products would yield greater effects on markets and larger welfare impacts outside Europe than would reductions in EU domestic support.     

Competitive effects of Basel II on US bank credit card lending

We analyze the potential competitive effects of the proposed Basel II capital regulations on US bank credit card lending. We find that bank issuers operating under Basel II will face higher regulatory capital minimums than Basel I banks, with differences due to the way the two regulations treat reserves and gain-on-sale of securitized assets. During periods of normal economic conditions, this is not likely to have a competitive effect; however, during periods of substantial stress in credit card portfolios, Basel II banks could face a significant competitive disadvantage relative to Basel I banks and nonbank issuers.     

Dividend Imputation and Shareholder Wealth: The Case of New Zealand

On April 1, 1988, New Zealand stopped the double taxation of dividends by implementing a full dividend imputation program. Because many believed that the tax advantage of debt had led to more highly leveraged firms subject to greater financial risk than was socially optimal, it was hoped the removal of incentives to finance with debt would result in a more efficient allocation of capital. The empirical results suggest that the shareholder wealth gain from dividend imputation was more than offset in firms with large debt levels. Moreover, an examination of debt ratios indicates debt levels declined in the post–imputation period.     

Social Capital and the Terms of Trade for Farmland

Social capital is a person or group's sympathy for or sense of obligation to another person or group. This article introduces social capital into a neoclassical model of farmland exchange and shows how relationships alter the terms of trade. Empirical evidence from a survey of farmers shows that the type of relationship farmland sellers have with farmland buyers has a statistically significant and economically important effect on the minimum-sell price for farmland. Compared to the minimum-sell price when selling to a total stranger in an arm's-length transaction, farmland sellers discount prices to friendly neighbors and relatives and require a premium from unfriendly neighbors and influential people in the community.     

The effect of spot and futures trading on stock index market volatility: A nonparametric approach

This article provides empirical evidence on the intraday relation between spot volatility and trading volume in the Spanish stock index futures market. GARCH methodology is used to estimate spot volatility. We analyze the potential relation between spot and futures trading volume and spot volatility by estimating the corresponding conditional density functions as proposed in Quah (1997). Our results reveal no significant link between those variables. Similar findings arise when expected and unexpected volume is considered. Our results suggest that derivative market is not a force behind episodes of significant spot jump volatility. © 2003 Wiley Periodicals, Inc. Jrl Fut Mark 23:841–858, 2003     

B‐TO‐B E‐COMMERCE: A CONTENT ANALYTICAL ASSESSMENT OF MOTOR CARRIER WEBSITES

An Internet presence is a critical early component in the process of building towards a fully operational and unified e‐commerce strategy. E‐commerce has significantly impacted logistics/supply chain strategies and the development and implementation of a website have become key issues for many firms within the transportation industry. This study provides an overview of website content within the motor carrier industry. Content analysis was used to assess the site design, informational content, and the interactive content of 152 motor carrier websites, and to compare the features offered on the Top 100 motor carrier firm websites with those offered on the sites of smaller carrier firms.     

Coordinated strategies for economic cooperation between Europe and the United States

Zusammenfassung Koordinierte Strategien für wirtschaftliche Zusammenarbeit zwischen Europa und den Vereinigten Staaten. - In diesem Aufsatz wird die dynamische Spieltheorie auf die Koordinierung der Politik zwischen den Vereinigten Staaten und der EWG in einem stark aggregierten Modell angewandt und folgendes gezeigt: (i) Eine Politik, die den Einflu\ von Ma\nahmen anderer L?nder vernachl?ssigt, führt in den USA zu Fiskalischen Einschr?nkungen und einer Verminderung der staatlichen Interventionen, in Europa dagegen zu einer Nachfragestimulierung, verbunden mit einer kontinuierlichen Herabsetzung des Diskontsatzes. Die EWG-L?nder sind, da sie ihre Politik nicht koordinieren, nach einigen Jahren wegen Zahlungsbilanzschwierigkeiten zu einer kontraktiven Nachfragepolitik gezwungen. (ii) Koordinierte Strategien best?tigen, da\ nicht-synchronisierte Politiken die Weltwirtschaft stabilisieren k?nnen. (in) Kooperation verbessert die wirtschaftlichen Leistungen, ausgedrückt in den Wachstumsraten und den Zahlungsbilanzen. Allerdings erbringt die ausdrückliche Zusammenarbeit kaum noch zus?tzliche Vorteile zu denen, die bereits im Rahmen der vollen Koordinierung erreicht werden k?nnen.

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Resumen Estrategias coordinadas de cooperación económica entre Europa y los EEUU.- La aplicación de un modelo dinámico de teoría de juegos a la coordinatión de política económica entre los EEUU y la CEE, como parte de un modelo altamente agregado de la economía mundial, permite concluír en este trabajo que (i) políticas que ignoran la influencia de medidas tomadas en otros países dan lugar a una contractión fiscal y a una menor interventión del Gobierno en los EEUU, pero a una estimulación de la demanda combinada con reducciones continuas de la tasa de descuento en Europa; al seguir políticas descoordinadas los países de la CEE están obligados a contraer la demanda agregada al cabo de unos a?os, debido a los problemas de balance de pagos, (ii) estrategias coordinadas confirman que políticas no sincronizadas pueden estabilizar la economía mundial; (iii) la cooperación favorece a la economía en términos de tasas de crecimiento y balance de pagos. Sin embargo, los beneficios adicionales de una cooperatión explícita resultan marginales en comparación con los beneficios ya alcanzados por la solución con coordinación total.

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Résumé Stratégies coordonnées pour la coopération entre l’Europe et les E.U. - En appliquant la théorie dynamique de jeu à la coordination de politique entre les E.U. et la CEE dans un modèle fortement agrégé de l’économie mondiale, cet article arrive aux conclusions suivants: (i) La politique qui ignore l’influence des actions suivies dans d’autres économies mène à la réduction fiscale et à moins interventions gouvernementales dans les E.U., mais à une stimulation de la demande avec des réductions continuelles du taux d’escompte en Europe. En cas d’une politique pas coordonnée les pays CEE sont forcés à prendre des mesures pour freiner la demande agrégée après quelques années à cause des problèmes de la balance des paiements. (ii) La stratégie coordonnée confirme que des politiques pas synchronisées pourraient stabiliser l’économie mondiale. (iii) La coopération peut élever le taux de croissance et améliorer la balance des paiements. Cependant, les gains additionnels d’une coopération explicite sont petits en comparaison avec les bénéfices déjà gagnés à l’aide d’une solution complètement coordonne’e.