Measuring the Economic Effects of Competition Law Enforcement

Summary  Together with a move from a rules-based legal approach to a more economic approach in competition cases, the economic effects of competition law enforcement have received increasing attention. Measuring these effects is important for external accountability of the Competition Authority, for quality control of its decisions and for evaluating the effectiveness of the competition law. This raises many issues in measurement, including the choice of counterfactual, the choice of effects to be measured, and the proper use of available data. The papers in this Special Issue of De Economist discuss these and related issues, based on a broad range of experience in competition law enforcement.      

Export taxes and sectoral economic growth: evidence from cotton and yarn markets in Pakistan

Pakistan used an export tax on raw cotton from 1988-1995 in order to suppress the internal price of cotton to benefit the domestic yarn industry. An analysis was conducted to estimate the impact of this policy on both the cotton and yarn sectors. These effects were simulated using the results ol a structural econometric model of these sectors of Pakistan's economy Results indicated that the export tax had a negative impact on the growth rale in the cotton sector, while having little or no impact on the yarn sector. Thus, the export lax did not achieve its objective of increasing the growth rate of value-added (yarn) production above what would have occurred naturally.     

Sensation seeking and the prediction of attitudes and behaviours of wine tourists

Although socio-economic variables are commonly used for market segmentation and are widely applied in describing winery visitors, increasing awareness is evident in the literature that personality might also be useful for that purpose. The present study examined whether, compared with socio-economic variables (age, gender, education level, personal income, and household income), the personality variable sensation seeking adds to the ability to predict differences in various attitudes and behaviours of wine tourists. With the effects of the former controlled, sensation seeking was observed to be significantly related to spending on wine, and wine drinking, as well as to the frequency of visits to wineries and the number of activities engaged in at wineries, the use of the internet as a source of information about wineries, venturing off the beaten track during a visit to a wine region, and the strength of opportunity for learning, stimulation, or indulgence as incentives to visit a wine region. Sensation seeking was also observed to be significantly related to all but one of those variables when the effects of another variable which is receiving increasing attention as a means by which to characterize wine tourists, “involvement”, were controlled. The practical significance of the results for winery and wine region marketing and management is discussed, and several requirements for further research are identified.     

Private Information and the Exercise of Executive Stock Options

This paper finds strong evidence that executives use private information when exercising their stock options. The most informed executives tend to exercise early, do not exercise on the vest date, do not exercise to capture dividends, exercise a high percentage of their options, and exercise when the option is the least in‐the‐money. We also find that exercises around resignation and retirement are followed by significant negative abnormal returns. Furthermore, the operating performance of firms following exercises motivated by private information is significantly worse than that of firms in which the exercises are not motivated by private information.     

Not all Codes are Created Equal: The Software Engineering Code of Ethics, a Success Story

There has been a transition in the way software developers work. Mistakes in software have been treated as "normal" occurrences. "All software has bugs." However, software engineering is an emerging profession which as a profession has now said that a caviler approach to software errors is unacceptable. They have asserted a very strong ethical position in the Software Engineering Code of Ethics and Professional Practice, a position which mandates concern for all those affected by their work. The Code has several unique elements as a professional Code.     

Contents of Volume 26

Volume Contents

Contents of Volume 26     

学生管理系统的设计与实现

为了全面实现高校学生学籍、成绩、卫生、课程管理等各项功能,提高高校学生管理工作的效率和水平,采用了FoxPro数据库管理系统开发了“学生管理系统”。     

Integrated enterprise management: a look at the functions, the enterprise, and the environment--can you see the difference?

The performance of an organization is paced by its use of resources, including its ability to acquire, access, and use knowledge. A high-performance organization, more than likely, has structured its resources around process linkages and is characterized by a horizontal organization chart, teams and teamwork, empowerment, and operational excellence. Organizational researchers hypothesize that performance improves with fuzzy internal boundaries, cross-functional participation, and goals anchored in the interests of customers and other external stakeholders. This article looks at the competitive need for more integration of resources and greater sharing of knowledge, the integrated nature of work within emerging types of organizations, how expanded views can improve the marketplace centering of processes and individuals, and how combining a model of integration and individual work challenges thinking and actions in the new environment.     

Market index depository liabilities: Analysis,interpretation, and performance

This paper examines a new financial instrument, the market index CD. This deposit offers an interest rate equal to a specified fraction of the change in the stock market over the life of the CD with a guaranteed minimum. We present a pricing formula, an examination of the effects of underlying variables, an evaluation of the early redemption feature, empirical results on the historical performance, and a discussion of some issues suggested by the introduction of this product.     

Forthcoming papers

Review of quantitative finance and accounting

Forthcoming papers