Residential Hedonic Models: A Rational Expectations Approach to Age Effects

This paper develops a rational expectations framework for interpreting the coefficient on age in a standard hedonic model. The model demonstrates that there are two components to the age coefficient: a pure cross-sectional depreciation component and a demand-side component that changes over time. We also show that a constant quality price index with age constant can be estimated by using any repeat sales database that contains the year of construction (or property age). When Fairfax County data are fitted to the model, the time series of age coefficients is non-stationary: they change from negative in the early 1980s to positive in the late 1980s; we infer that the demand-side component dominated in the latter period.     

Why I am a Psychology Major: An Empirical Analysis of Student Motivations

The underlying “architecture of the decision to pursue a degree in psychology was quantified using the Method of Sorting technique to identifying the critical issues necessary to make this choice. Multidimentsional scaling procedures were employed to construct a three-dimensional map representing the relationships between reasons for selecting psychology as a major. Freshman and senior psychology majors (N = 165) from a regional university and a large research-based institution rated the relative importance of items in their decision-making process. Hierarchical clustering procedures revealed seven different groups of students. Although significant differences associated with class standing were not found, institutional affiliation did influence cluster composition. Reflecting local emphases, students at the regional institution had a greater interest in Counseling Psychology, whereas those at the research-based school focused on Clinical Psychology. This semantic map and the associated item clusters arising from psychology student data provides an empirical basis for, amongst other things, course selection, faculty-initiated program design or revision, strategic niche marketing, and student retention.     

STRATEGIC INVESTMENT DECISION-MAKING: COMPLEXITIES, POLITICS AND PROCESSES*

This article is a preliminary report on an investigation into the processes of investment decision-making. Three case studies from three firms are presented which show disparities in a number of aspects of process, for example, the length of time taken to arrive at a decision, the number and intensity of disagreements and uncertainties encountered. Data were collected for these cases through semi-structured interviewing from multiple informants in the three organizations, thereby permitting the use of analysis of variance techniques of the different perspectives given by informants. Perceptions of the effectiveness of the decisions were also gathered. One finding from the study is that the decisions with the lowest perceived effectiveness (in firm HE) also lost support from those involved in making the decision during the process, although the decision was eventually implemented. This decision also had the least agreement amongst informants as to the main sources of disagreements. Informants of all three decisions saw effect upon product quality and productivity, fit with business strategy and competitive position of the company as the most important factors to take into account in evaluating the decisions. In firm CG, however, there were disagreements as to how the investment should be evaluated. In the conclusions to the article a disucssion is given as to the nature of evaluation procedures in relation to the developing theory of information systems.     

Measurement of the Socioeconomic Impact of Lake Restoration: An Assessment Model Employing a Benefit/Cost Cross-Impact Probabilistic Approach

A bstract . A number of lake restoration demonstraton projects have been launched by the Environmental Protection Agency as a result of Public Law 92-500. To evaluate the cost-effectiveness of these public investment projects requires the development of an assessment model. The proposed Benefit/Cost Cross-Impact Probabilistic Approach (BCCIPA) is one attempt at assessing the interdependent socioeconomic and environmental impacts of the lake restoration project over time, both quantitatively and qualitatively, so that various changes brought about by the project can be investigated and evaluated in two comparative stages for three points in time—before, during and after project implementation.     

THEORIES OF CHOICE UNDER IGNORANCE AND UNCERTAINTY

Abstract. In this paper, Knight's distinction between risk and uncertainty, and its significance for economic analysis are examined. The paper consists of a survey of some recent developments on the theory of choice under uncertainty and some applications of these theories to problems for which Bayesian Decision Theory has not proved entirely satisfactory. Two problems are examined in detail. The first is that of finance and insurance and the second is that of risktaking behaviour with special emphasis on lotteries.     

An Integrative Framework for Measuring the Extent to which Organizational Variables Influence the Success of Process Improvement Programmes

abstract    Studies on the three types of process improvement programmes (Continuous Improvement, Reengineering and Benchmarking) have appeared many times in the literature. These studies suggest that certain organizational variables act as enablers and their presence or absence can significantly influence success rates. Such studies have tended to examine companies where a single programme has been implemented. In contrast, this paper examines a sample of companies who have experienced all three programmes. Our aim is to compare and contrast each programme's impact on firm performance and identify which organizational variables are common and which are programme-specific enablers of success. We build and test an integrative framework to support our analysis. Our study found that: (1) Reengineering delivered the greatest impact on performance; (2) executive commitment was needed to make this happen; (3) strategic alignment was the major influence on the success rate of Reengineering and Continuous Improvement programmes; and (4) employee empowerment was necessary for each programme to work effectively.     

Boom, bust, and the poor: Poverty dynamics in the Middle East and North Africa, 1970–1999

This paper analyzes changes in poverty and inequality in the Middle East and North Africa. It finds that the structural relationship between poverty reduction, income growth and distribution is the same for MENA and other developing economies. Prior to 1985 rapid growth sharply reduced poverty. After 1985, despite very low income growth, a rising share of income accruing to the lowest quintile meant that the average income of the poor rose more rapidly than that of the non-poor. These unusual poverty dynamics were primarily due to international migration. Remittances both increased per capita incomes in labor exporting countries and increased the share of income accruing to the poor.     

Book briefs

Key variables in social investigation, Routledge & Kegan Paul, London, 1986, vii + 276 pp.

Reproductive change in developing countries, Insights from the World Fertility Survey, Oxford University Press, Oxford 1985, xvi + 301 pp, ISBN 0‐19‐828465‐9.

The world crisis in education, The view from the eighties, Oxford University Press, New York, 1985, vii + 353 pp ISBN 0‐19‐503503‐8

Reaching the Urban Poor, Project implementation in developing countries, Westview Press, Boulder Colorado. 1986, vii + 264 pp, ISBN 0‐8133‐7129‐5

Housing policy, An international bibliography, Mansell Publishing Limited, New York, 1986, ix ‐ 398 pp, ISBN 0‐7201‐1785‐2

Agribusiness and the small‐scale farmer: A dynamic partner for development, Westview Press, Boulder, 1985

Agriculture and employment in developing countries: Strategies for effective rural development, Westview Press, Boulder, 1985

Progress in natural resource economics, Clarendon Press, Oxford, 1985

International agricultural trade: Advanced readings in price formation, market structure and price instability 1984

The role of markets in the world food economy, Westview Press, Boulder, 1983     

Social distance and shopping behavior

This research was designed to see whether a reconceptualization of social distance (as measured by social class variables) between shoppers and stores would provide a basis for understanding store avoidance behavior. A survey of shoppers classified into two distinct social classes investigated their images, including social class images, of two stores that had been selected as representatives of upscale and downscale retailers. A new measure of social distance was proposed and evaluated. Controlling for other functional aspects of store image such as price and personnel, the social distance measure was found to be influential in discriminating shopping frequency groups for the two stores, providing evidence that people tend to avoid stores that are perceived as being socially distant from themselves.