Why do trade costs vary?

As tariffs have fallen, it is apparent that trade costs are a significant obstacle to international trade and that they vary from country to country. The gap between the cif and fob value of a trade flow is a useful measure of aggregate trade costs, but only if the measure is based on a consistent volume of trade; mirror statistics are unsuitable. Using high quality Australian import data disaggregated at the HS 6-digit level, we find large country-by-country variations in trade costs. Distance, weight and size account for part of the variation in trade costs. Indicators of institutional quality pick up some of the variation in trade costs, but the relationship is not uniform across mode of transport and commodities; exporting countries’ institutional quality is more strongly related to trade costs for air freight than sea freight, and the relationship is commodity-specific and strongest for manufactured goods. Country-specific characteristics influencing trade costs provide a link between institutions and economic development.     

Job preferences of students and new graduates in nursing

This article investigates the preferences of student and newly graduated nurses for pecuniary and nonpecuniary aspects of nursing jobs. It is the first study applying methods based on discrete choice experiments to a developed country nursing workforce. It is also the first to focus on the transition through university training and into work. This is particularly important as junior nurses have the lowest retention levels in the profession. We sample 526 individuals from nursing programmes in two Australian universities. Flexible and newly developed models combining heteroscedasticity with unobserved heterogeneity in scale and preference weights are estimated. Overall, salary remains the most important feature in increasing the probability that a job will be selected. ‘Supportive management/staff’ and ‘quality of care’ follow as the most important attributes from a list of 11 nonpecuniary characteristics. However, the subset of new graduates rank ‘supportive management/staff’ above salary increases, emphasizing the importance of a supportive workplace in the transition from university to the workplace. We find substantial preference heterogeneity and some attributes, such as the opportunity for clinical rotations, are found to be attractive to some nurses while seen as negative by others. Nursing retention could be improved by designing different employment packages to appeal to these different tastes.     

Sanac Inc.: From ABC to time-driven ABC (TDABC) – An instructional case

This case deals with the decision of Sanac Inc., a Belgian wholesale company, on whether to proceed with the implementation of an activity-based costing (ABC) system or switch to time-driven activity-based costing (TDABC). As a business consultant, you are hired to decide about the appropriate costing method. Your task is to decide which system the company should implement, given the desire of the president of the company to calculate profitability at the order and the customer level.     

Violation of the iid-normal assumption: Effects on tests of asset-pricing models using Australian data

Financial data are typically not identically, independently and normally distributed (iid-normal). Yet, standard tests of asset-pricing models are based on this assumption, and we have little information on how sensitive the tests are to violations of iid-normality. Recent evidence suggests that test outcomes may be sensitive to these violations. In this paper, we use Australian data to compare the standard test results with those that do not require iid-normality: the GMM-J test and bootstrap-based tests. We find that different tests produce differences in prob values at least as large as those in US studies but that test outcomes are generally robust.     

Farmland prices and land-use changes in periurban protected natural areas

This paper provides empirical and conceptual insights in analysing the factors that determine the prices of farmland within Protected Natural Areas that are close to densely populated urban areas, the changes in land use experiences as well as the additional control policies needed to curb this unsustainable trend.The Urdaibai Biosphere Reserve nearby the metropolitan area of Bilbao (Basque Country, Spain) is the case study considered and its bordering non-protected rural area is used as a reference for comparison. A spatial hedonic farmland price model is estimated and the willingness of land purchasers to pay for different farmland characteristics quantified both inside and outside the Urdaibai Biosphere Reserve. The main results are that: (1) residential development is taking place in all categories of farmland, (2) aside from neighbouring prices, farmland prices depend on different factors depending on whether the marketed plots stand inside or outside the Protected Natural Area, (3) the “reserve effect” on land prices is less powerful than the “proximity to the metropolitan area (and motorway) effect” observed from villages of the non-protected area located in the 3rd crown of Bilbao, (4) the reasons for farmers non-compliance with policy regulations is the necessary knowledge base for the farmland conservation policy design and (5) in the light of the results, three development-control policy instruments such as Payments for Ecosystem Services, Tradable Planning Permits and development-taxes are discussed considering the factors that could improve compliance.     

Short-Term Water Consumption Patterns in Ciudad Juárez, Mexico

Water utility planning efforts are becoming increasingly difficult throughout the world. Located in a semi-arid region, Ciudad Juárez, Mexico is a fast growing municipality that faces both physical infrastructure and water supply constraints. This paper examines monthly water consumption in Ciudad Juárez utilizing a linear transfer function procedure (LTF). Analysis is carried out for per customer usage and for the total number of municipal water system accounts. Models estimated for both series are subjected to a series of simulation benchmark tests. Findings suggest that water consumption in Ciudad Juárez reacts quickly to changes in economic and weather conditions. Out-of-sample simulation results are mixed. Per customer usage forecasts do not fare as well those for total customers relative to random walk benchmarks.Financial support for this research was provided by Southwest Center for Environmental Research Policy Grant W-04-03. Additional financial support was provided by El Paso Electric Company, Wells Fargo Bank of El Paso, and National Science Foundation Grant SES-0332001. Helpful comments and suggestions were provided by Cely Ronquillo, Brian Kelley, and Cesar Olivas. Econometric research assistance was provided by Marycruz De Leon and Irma Torres.