A COMPARISON OF PROCEDURES FOR ESTIMATING RETURNS TO RESEARCH USING PRODUCTION FUNCTIONS

The production function approach has been one of the two main ex-post procedures used to estimate the rate of return to agricultural research. A critical part of estimating the marginal internal rate of return (MIRR) is the procedure adopted to spread the benefits of research through time. Past studies using this approach have given only brief consideration to this computational procedure. The objective in this study was to review the different computational procedures used and, then, using cross-section production function estimates for U.S. agriculture, determine whether the MIRR estimates are sensitive to the computational procedure used. The results from this comparison indicate a large range in the estimates. The implication, then, is that careful consideration should be given to the choice of computational procedure, both when undertaking such a study and when comparing the results of different studies.     

What are the real prospects for total EC integration?

Nothing can stop the momentum behind the movement for total European integration, or so it would seem. But what about the impact of Gemn reunijication, strong nationalistic feelings, and the socialist tradition in Europe? The authors look at what impact these might have on the move toward creation of a Single Market.     

Ideology or pragmatism? trade union education in France and Britain

Trade union education–a significant area of trade union activity – has been characterised by a tension between the desire to provide a certain ideological, economic and political perspective and the need to develop pragmatic bargaining skills. This comparative study examines the differing ways in which trade union education has developed in France and Britain.     

An empirical analysis of the composition of manufacturing employment in the industrialized countries

The paper seeks to identify empirically, using pooled regression estimation, the role that resource variables and resistance factors, tariffs in particular, play in determining employment patterns in manufacturing. Cross-section data were utilized pertaining to 20 industries and 18 industrialized countries for 1970. The possible primary impact of post-Kennedy Round (1972) tariff reductions on employment by industry and country can be calculated on the basis of the tariff elasticities presented.     

THE VALUATION EFFECTS OF FREQUENT COMMON STOCK ISSUANCES

Previous empirical studies show that announcements of seasoned common stock registrations and issuances lead to significant reductions in common stock prices and shareholder wealth. Nevertheless, some firms issue common stock frequently. Our empirical study of nonutility firms that issued common stock four or more times within ten years shows that market reactions to announcements of offerings and to registrations are less unfavorable than typical reactions for infrequent issuers. A cross-sectional analysis reveals no unique characteristics that distinguish frequent issuers from one-time common equity issuers. In fact, the only detectable characteristic unique to the firms is that they issue common stock frequently.     

Is it still economic to build a new coal-fired power plant in the U.S.? A real option analysis

In the U.S., virtually no new coal-fired power plants have been built in recent years. Both industry experts and academics seem to believe that no rational firm will build a new coal-fired plant. Will such a trend continue in the future? To provide insights into this question, we investigate the optimal decision of an electricity company with an irreversible and deferrable opportunity to build either a new coal-fired or natural gas-fired power plant as its new base-load resource. According to our real option analysis, the optimal decision depends on the location. In the case of the eastern U.S., it is optimal to choose a natural gas plant if a firm is given a choice among a new natural gas plant, a new coal plant and deferring the investment. However, contrary to the common sentiment in the industry and academia, building a new coal plant in the western U.S. is still more economical than building a new natural gas plant in the absence of emission pricing. Furthermore, introducing carbon pricing to western U.S. states, as California did, can substantially increase the probability that a firm will optimally choose a natural gas plant over a coal plant.     

Editorial proximity equals publication success: A function of rational self-interest or good-faith economy?

This paper inquires into a recent finding that shows that proximity to the editor of a top accounting journal significantly increases one's chances of publishing in that journal. Three explanations are provided for this finding—two based on ‘rational self-interest’ and one on the ‘good-faith economy’. These explanations are further considered in light of interview data collected from individuals who worked in the same social space as these editors. While the first two of these explanations align themselves with the field's dominant methodological assumptions they alone do not fully describe actual practice in this field. Indeed, to the extent that this field's actors ignore or discount the third, good-faith explanation the field abrogates its scientific commitment to truth-seeking and objectivity, putting its faith instead in a naïve and potentially damaging vision of human behavior.