Deployment and utilization of plug-in electric vehicles in round-trip carsharing systems

Electric Vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEVs) can reduce gasoline consumption, but increase vehicle acquisition costs and introduce operational constraints. We develop a comprehensive approach to EV/PHEV deployment and utilization in round-trip carsharing systems. First, we formulate and solve the tactical problem of utilizing a mix of gasoline vehicles and EVs/PHEVs to serve trip demand, using Mixed Integer Programming optimization to estimate the minimal gasoline consumption in a computationally efficient manner, and simulation to assess the effect of reservation order on realized gasoline consumption. Second, we use these results to inform the strategic deployment of EVs/PHEVs in the carsharing fleet, using meta-optimization. We implement our approach using data from a large carsharing provider. From the perspective of a carsharing operator, our results suggest that replacing some portion of existing gasoline fleets by EVs/PHEVs would result in gasoline savings likely to outweigh upfront investments and the constraints on vehicle utilization that it creates. Moreover, we find that easily implementable heuristics can capture some of these benefits, and that the integration of vehicle utilization patterns into the design of EV/PHEV deployment strategies can result in added benefits.     

The impact of IAS 39 on the risk-relevance of earnings volatility: Evidence from foreign banks cross-listed in the USA

We examine the impact of adopting International Accounting Standard 39 – Financial Instruments: Recognition and Measurement (IAS 39) by non-US commercial banks cross-listed in the US on earnings volatility and its risk relevance. As IAS 39 requires the recognition of unrealized fair-value gains and losses for a larger set of financial and derivative-financial instruments, and the impairment charges for loans and receivables, we expect and find that IAS 39 adoption increased earnings volatility in IFRS-adopting firms from 2005 onwards. Furthermore, both hedge accounting and the fair value option under IAS 39 are designed to reduce mixed-measurement volatility and to improve the sensitivity of firm risk measures to earnings volatility. We also find that the relationship between credit ratings (proxy for risk) and earnings volatility increases for IFRS-adopting firms after 2005. The evidence is consistent with the argument that IAS 39 increases the credit relevance of earnings volatility.     

Current and future European regulation of electronic communications: A critical assessment

The current European regulation for electronic communications has been applicable since 2003 and is currently under a review that should lead to new rules applicable by 2010. This paper aims to assess the implementation of the current regulation and the proposals for reform tabled by the European Commission. It is argued that those proposals go in the right direction but should go further. First, the regulatory framework should clearly state that the objectives of regulators are to maximise the long-term welfare of European citizens. Secondly, the main body of economic regulation—the so-called Significant Market Power regime—should be based on a strong test aiming to identify structural market problems that cannot be efficiently dealt with by competition law. Thirdly, possible remedies applicable by the regulators should include structural and technological components, provided that a strict cost benefit analysis is undertaken. Fourthly, the institutional design should be improved by better aligning the incentives of the National Regulatory Authorities with the dynamic nature of the markets, by improving the checks and balances (in particular those provided by national courts and European Commission), and by improving coordination amongst the institutions (the national regulators and the national Courts).     

A folding methodology for multivariate extremes: estimation of the spectral probability measure and actuarial applications

In this paper, the folding methodology developed in the context of univariate Extreme Value Theory (EVT) by You et al. is extended to a multivariate framework. Under the usual EVT assumption of regularly varying tails, our multivariate folding allows for the estimation of the spectral probability measure. A new weakly consistent estimator based on the classical empirical estimator is proposed. Its behaviour is illustrated through simulations and an actuarial application relative to reinsurance pricing in the case of an insurance data-set.     

A model of the learning process with local knowledge externalities illustrated with an integrated graphical framework

We present a unified graphical framework accounting for the nature and impact of spillover effects. The dynamics of the learning process with a specific spillover transfer mechanism can be illustrated by referring to this four-quadrant picture. In particular, a whole cycle of technological learning is explained with the help of such a graphical representation of the basic learning process in the presence of knowledge spillovers.

We hypothesize two different functional specifications of spillover exchanges among firms within a local innovation system. Each conceivable shape for the knowledge transfer relationship among firms expresses a possible mode and intensity of information processing arising from technology spillovers. A general proposition regarding the relative efficiency of the two alternative formal models with spillover effects is derived. The basic models with spillover effects are then extended in several relevant directions.     

Further Evidence on the Labor Market Effects of Addiction: Chronic Drug Use and Employment in Metropolitan Miami

This study used data collected from 1996 to 1997 in low-income and high-crime neighborhoods in Miami, Florida, to analyze the effects of chronic drug use on employment. Given the significant gender differences in substance use patterns and labor market behavior, separate models were estimated for males and females. The analysis estimated univariate probit models of employment and bivariate probit models that allow for possible correlation among missing or unobserved determinants of drug use and employment. The key finding was that regardless of gender and specification, chronic drug use significantly reduced the probability of being employed. (JEL I12 , J22 , J24 )     

BUBBLES IN EXCHANGE RATES AND MONETARY POLICY

We evaluate the macroeconomic performance of different monetary policy rules when there are bubbles in the exchange rate. We do this in the context of a non‐linear rational expectations model. The exchange rate is allowed to deviate from its fundamental value and the persistence of the deviation is modeled as a Markov switching process. Our results suggest that reacting to exchange rate movements does not significantly improve welfare. However, taking into account the switching nature of the economy may be more beneficial.     

LINKING STRATEGY,STRUCTURE, PROCESS,AND PERFORMANCE IN INTEGRATED LOGISTICS

The current research was undertaken to present and test a framework of supply chain logistics integration that synthesizes current logistics thought with an established theory of organizational design. The framework portrays performance as an outcome of appropriate alignment between strategy, structure, and processes. The results support the contention that a firm that pursues a relational strategy, develops information and measurement structures to support relational processes, and then uses these tools to implement and execute integrated operations will experience high levels of logistical performance. In addition, the results indicate that superior logistics performance is related to simultaneous integration of internal and external operational processes.     

Asymmetric information about workers' productivity as a cause for inefficient long working hours

In this paper, a model of labor contracting with asymmetric information is developed in order to explain the existence of inefficient long working hours. Since firms cannot observe workers' true productivity, they use long working hours as a mechanism to sort productive workers. The model therefore predicts that workers with a high productivity will tend to work inefficient long hours. An empirical analysis confirms this prediction: high-productivity workers are more likely to experience hours constraints in the form of overemployment than low-productivity workers. Moreover, the extent of overemployment is positively related to productivity.     

Banking Relationships and Syndicated Loans during the 2008 Financial Crisis

The research shows that banking relationships are important to lending. However, few studies focus on the banking relationships in syndicated loans, although these loans have became a major source of financing. The last financial crisis clearly shows the impacts of credit rationing and tightening credit conditions, even in the syndicated loans market. We investigate whether banking relationships help firms to benefit from better terms for syndicated loans in a chaotic financial environment. Using a sample of syndicated loans arranged from 2003 to 2008 in North America and Europe, we find that firms with a previously developed relationship with a lead bank obtained a lower spread and a longer maturity during the financial crisis but did not benefit from larger loan facilities.