Uniform Commercial Policy, Illegal Trade, and the Real Exchange Rate: A Theoretical Analysis

Countries on fixed exchange rates sometimes use uniform tariffcum subsidy (UTCS) schemes as a way of achieving a real depreciationwithout disturbing the nominal exchange rate. A potential drawbackof this policy in relation to an across-the-board devaluationis that a UTCS scheme provides incentives for illegal trade.Using an optimizing model with currency convertibility and illegaltrade. I find that welfare is lower under a UTCS scheme thanunder a corresponding across-the-board devaluation and thatin some cases the real exchange rate actually appreciates inresponse to an increase in the UTCS rate.     

Assessing academic department efficiency at a public university

The assessment of public universities has gained importance because of the demands from such state government bodies as the executive and the legislature. Public universities are increasingly being asked to account for how efficiently they have used diminishing state financial resources. Administrators thus have the responsibility of ensuring that the university's financial, human, and physical resources are allocated to academic departments in a manner that enhances the institution's efficiency. In this paper, data envelopment analysis (DEA) is proposed for evaluating the efficiency of academic departments at a public university. DEA provides a single measure of efficiency for each academic unit. It also identifies the causes behind the inefficiencies exhibited by poor performing units, as well as the changes that these units need to make in order to improve their efficiencies. Its usefulness as a planning tool is also discussed. Copyright © 2002 John Wiley & Sons, Ltd.     

Government Policy and the Evolution of the Market for Dutch Daily Newspapers

This paper investigates whether governments can change market structures through interventions. We study the effects of four political events over the life cycle of the market for daily newspapers in the Netherlands. We find that policy measures meant to lower entry barriers in an expanding industry created new entry and increased survival chances for potential entrants and incumbent newspapers. Exit barrier enhancing policies to reduce concentration tendencies have not been successful.     

Awareness of Distributed Denial of Service Attacks' Dangers: Role of Internet Pricing Mechanisms

Denial of Service (DoS) attacks consist of overwhelming a server, a network or a Web site in order to paralyze its normal activity. The additional parameter in Distributed Denial of Service (DdoS) attacks is the distributing strategy. It means that DDoS attacks do not come from a single computer but stem from all accessible channels and servers. Consequences are multiple, ranging from system errors, temporary inability to access the Web site for normal users to challenging the actual reliability of the Internet. Despite this, Internet users show carelessness. The explanation lies in the specificities of DDoS attacks. We explore possibilities to raise users' awareness about the actual amplitude of problems caused by DDoS attacks. We suggest a careful examination of Internet pricing mechanisms and switching from flat to usage-constraining pricing schemes.     

Market Structures for U.S. Water Quality Trading

The use of transferable discharge permits as a water pollution control policy is rapidly increasing in the United States. Drawing on evidence from existing water quality trading programs, this paper provides a taxonomy of the forms that such markets take. Four main structures are identified: exchanges, bilateral negotiations, clearinghouses, and sole-source offsets. Each of these structures has its own strengths and weaknesses; none is optimal for all scenarios. Since market structure is largely determined by a program's rules, policy makers should be aware of the differences between these structures and the conditions under which each comes to be.     

Symmetry and order in the portfolio allocation problem

Summary. This research studies the role of multivariate distribution structures on random asset returns in determining the optimal allocation vector for an expected utility maximizer. All our conclusions pertain for the set of risk averters. By carefully disturbing symmetry in the distribution of the, possibly covarying, returns, we ascertain the ordinal structure of the optimized allocation vector. Rank order of allocations is also established when a permutation symmetric random vector is mapped into the returns vector through location and scale shifts. It is shown that increased dispersion in the vectors of location and scale parameters benefit, ex-ante, investors as does a decrease in the rank correlation coefficient between the location and scale parameter vectors. Revealed preference comparative static results are identified for the location and scale vectors of asset returns. For most issues addressed, we arrive at much stronger inferences when a safe asset is available. Received: August 8, 2000; revised version: January 8, 2001