Applying Wand and Weber's Surface and Deep Structure Approaches to Financial Reporting Systems

Wand and Weber's fundamental premise is that ‘a physical‐symbol system has the necessary and sufficient properties to represent real‐world meaning’. Their representation of real‐world meaning flows from three possible information system models: representational, state‐tracking and de‐compositional. We address these three types of information system in the context of financial reporting systems and we use purchased goodwill and other intangible assets to selectively critique their characteristics. The principle feature of this critique is the comparison that is made throughout the paper between an economic and an artefactual (physical‐symbol) representation of assets, particularly the intangible ones, in the financial reporting domain.     

A methodology for evaluating transit service quality based on subjective and objective measures from the passenger’s point of view

In this paper a methodology for measuring transit service quality is proposed. The methodology is based on the use of both passenger perceptions and transit agency performance measures involving the main aspects characterizing a transit service. The combination of these two types of service quality measurement fulfils the need to provide a reliable as possible measurement tool of the transit performance. Considering passenger perceptions is fundamental because the customer's point of view is very relevant for evaluating the performance of a transit service. At the same time, the use of a more objective measurement provided by the transit agency can be a useful solution for obtaining a more comprehensive service quality measurement. The proposed procedure is applied to a real case study of a suburban bus line; a series of subjective and objective indicators are calculated on the basis of users’ perception about the service and measurements provided by the transit agency.     

Pricing General Barrier Options: A Numerical Approach Using Sharp Large Deviations

In this paper we develop simulation techniques in order to evaluate single and double barrier options with general features. Our method is based on Sharp Large Deviation estimates, which allow one to improve the usual Monte Carlo procedure. Numerical results are provided and show the validity of the proposed simulation algorithm.     

Core and equilibria in coalitional asymmetric information economies

We study coalitional economies under uncertainty and asymmetric information, assuming a finitely additive measure space of agents and finitely many possible states of nature. We introduce a suitable core notion showing that it is equivalent to Walrasian expectations equilibria. The finitely additive approach proposed in the paper permits also asymmetric information economy with countably many agents, rather than requiring only a continuum. Moreover, it allows us to overcome well-known criticisms related to the interpretation of individual private core notions.     

An application of Target MOTAD Model to crop production in Zambia: Gwembe Valley as a case study

The Zambian Government encourages crop production in the Gwembe Valley without taking into consideration the risks involved. These risks mainly originate from the stochastic nature of rainfall. This paper, therefore, identifies optimal cropping patterns in the Gwembe Valley by using Target MOTAD Model. The results of the Target MOTAD Model indicate an optimal cropping pattern of growing sorghum, rice and soyabeans. This is different from the existing cropping pattern of sorghum, sunflower, cotton and maize. The overall policy implication of adopting the cropping pattern obtained from the model solution is that some resources allocated to the production of current crops have to be reallocated to the production of new crops. Moreover, since people in the Gwembe Valley are used to growing of cotton, sunflower and maize, the adoption of the suggested new crops will entail the education of the people (through extension services) in the crop husbandry of these crops.     

Economies with informational asymmetries and limited vetoer coalitions

With reference to a model of coalitional economies with asymmetric information, we consider different possible restrictions on the set of blocking coalitions. We provide suitable price systems decentralizing allocations in the corresponding enlarged core.     

Importance of location and product assortment on flea market loyalty

ABSTRACT

Recent trends in consumerism have highlighted the proliferation of the global flea market economy, which contributes significantly to the growing informal sector. Although a number of studies have explored the present topic within different contexts, few studies have addressed the factors that contribute to flea market loyalty among Millennial consumers. The purpose of the present paper is therefore to investigate the influence of market location and product assortment on market loyalty and the inter-construct relationships of market experience and purchase intention. By means of a quantitative study, 280 self-administered questionnaires were distributed amongst Millennial consumers. The data analysis was done using Structural Equation Modelling (SEM) in SPSS 23 and AMOS 23. The results indicated that all seven proposed hypotheses were significant. In other words, market location, product assortment and market experience positively influence consumer’s purchase intention and market loyalty. This paper is of paramount importance to brands and retailers who wish to expand their distribution network to the informal market economy, also known as the flea market economy. Marketers should realize the importance of the market’s location and the product assortment when investing in the flea market economy. The results of this paper contribute to literature in the informal market economy, which is rapidly expanding.     

Leviathan: Revenue-maximizer or glory-seeker?

We argue that the Hobbesian assumption of glory-seeking behavior, especially when applied to holders of high office, is both more realistic and has greater predictive power than Brennan and Buchanan's hypothesis of revenue-maximization. Whereas traditional public finance theory sees the sovereign as a benign agent without an objective of his own and Brennan and Buchanan endow him with the objective of revenue maximization, Hobbes's political construct envisages a sovereign-principal who devises rules and incentives to induce his subjects-agents to contribute to his own preservation and glory. We examine the implications of this Copernican revolution in public finance theory by referring to Brennan and Buchanan's key claim that the Leviathan ought to be constrained by a fiscal constitution. We argue that the interplay of the pursuit glory and the concern for self-preservation implies that the government cannot be bound by rules set by citizens.     

Remittances and healthcare expenditure: Human capital investment or responses to shocks? Evidence from Peru

This paper estimates the effect of international remittances on healthcare expenditures, taking into account both the interdependence with other consumption goods and the effects of health shocks. More precisely, we assess whether the budget allocation decisions of remittance‐receiving households reveal different preferences to invest in health capital, even when the simultaneous effect that health shocks may have on the demand of remittances and on other types of nondurable expenditures is accounted for. Using data from the “Peruvian National Survey of Households,” we find that remittances have a positive impact on healthcare budget shares, net of the remittance‐related income effect and independently of the occurrance of a health shock. They also have a positive impact on housing and a negative one on other expenditure items, that is, clothing, transport, and education. Hence, our results indicate a “pure” tendency of remittance‐receiving households to devote larger shares of their budget to health capital investment, rather than to other types of consumption goods.