The determinants of office cap rates: The international evidence

We examine commercial office cap rates in 89 large cities in 33 developed and developing countries in the 2000–2019 period. We find that cap rates decline throughout the world over this period, reflecting a corresponding decline in the real rate of interest. In the cross-city analysis our most robust findings are that office cap rates are lower in wealthier cities, especially those that are either considered gateway cities or financial centers. In addition, cap rates tend to be higher in countries with lower credit ratings and higher inflation rates. We find that cap rates in suburban office markets are higher than in central business districts, and for a given metropolis, suburban cap rates are lower in suburbs with better public transport connections to the central business district. Finally, evidence from regressions with city fixed effects reveal that cap rates rise as the discount rate and vacancy rates increase and fall as cities get wealthier.     

Harnessing Innovation for Change: Sustainability and Poverty in Developing Countries

To date, a well‐developed business perspective on how to promote sustainability for those in poverty is sorely lacking. For sustainability enhancing innovations in developing countries, poverty presents unique challenges. In this paper, we argue that if sustainability enhancing innovations introduced in developing countries are to stick, they need to be designed with local customers, networks, and business ecosystems in mind. We illustrate this view using case examples from mobile telephony, fuel efficient stoves, clean drinking water, and household electrification. Our paper underscores the need for today's managers to understand poverty as an integral part of the sustainability nexus and the new international business equation.     

Examining long-run relationships between Australian beef prices

Cointegration and impulse response analyses are used to investigate the short-run and long-run dynamics of the Australian beef market. The aim of this study is to determine whether long-run relationships existed between Australian beef prices at the farm, wholesale and retail levels. Based on monthly data from 1971 to 1994, the results show that all three prices considered are cointegrated. Furthermore, the wholesale price is found to be weakly exogenous. The latter result might be an indication of market inefficiency due in part to price levelling often practised in the beef marketing system.     

Was the Australian Meat and Live‐stock Corporation’s advertising efficient?

A theory of the allocation of producer levies earmarked for downstream promotion is developed and applied to quarterly series (1970:2–1988:4) on red-meats advertising by the Australian Meat and Live-stock Corporation. Robust inferences about program efficiency are contained in the coefficients of changes in promotion effort regressed against movements in farm price and quantity. Empirical evidence of program efficiency is inconclusive. While the deeper issue of efficient disbursement of funds remains an open question, there is evidence, at least, of efficient taxation.     

Coming to Terms with London: Middle‐class Communities in a Global City

In this article we contrast the experience of middle‐class life in two areas of South London. We hypothesize that different sections of the middle class will live in different areas. Whilst these differences partly reflect economic capabilities and occupational divisions (such as public versus private employment sector, professionals versus managers), we suggest these divisions are becoming more complex. We develop a threefold model based on the work of Savage et al. (1992) and hypothesize that each group will tend to live in different and distinct areas of the city. In our comparison of two areas in which we have completed fieldwork (Telegraph Hill and Brixton), we are able to show very different accommodations to metropolitan life which provides initial support for our hypothesis. We characterize middle‐class life in Brixton as being essentially unstable, which is largely compensated for by the frisson of living in a cosmopolitan and mixed area. Telegraph Hill is a more stable area, with residents building a long‐term relationship with the area and forming substantial social networks with other residents; it, however, lacks the cultural infrastructure of Brixton. We argue that ‘circuits of education’ are of prime importance for middle‐class families living in London: in comparison to Brixton, our respondents in Telegraph Hill have developed sophisticated educational strategies which have enabled them to come to terms with living in London. Cet article compare la vie des classes moyennes dans deux quartiers du sud de Londres. Par hypothèse, il considère qu'au sein de ces classes, des catégories différentes vivront dans des quartiers différents. Si ces divergences traduisent en partie des capacités financières et des disparités professionnelles (ex.: entre secteur public et secteur privé, professions libérales et cadres), elles se font aussi plus complexes. L'article présente un modèle en trois parties basé sur le travail de Savage et al. (1992), en présumant que chaque groupe aura tendance à vivre dans un quartier spécifique de la ville. En opposant deux zones où le travail sur le terrain est terminé (Telegraph Hill et Brixton), il est possible de montrer des adaptations très variées à la vie métropolitaine, celles‐ci offrant une première contribution à l'hypothèse de l'étude. La vie des classes moyennes à Brixton peut se définir comme étant essentiellement instable, caractéristique largement compensée par le frisson d'une existence dans un quartier hétéroclite et cosmopolite. Telegraph Hill est une zone plus stable, les résidents établissant un lien durable avec le quartier et constituant entre eux de solides réseaux sociaux; il lui manque toutefois l'infrastructure culturelle de Brixton. L'article expose que les ‘circuits éducatifs’ sont primordiaux pour les familles des classes moyennes vivant à Londres: par comparaison à Brixton, les résidents de Telegraph Hill ont mis au point des stratégies d'éducation élaborées qui leur ont permis de s'accommoder de la vie londonienne.     

Human Choice: the genetic code for social development

A comprehensive theory of social development is needed that treats human beings as the center of the development process and integrates all its economic, political, social, and cultural factors. Drawing a wide range of intriguing parallels with biological evolution, the authors describe the central role of organization in social development; “surplus human energy” as both condition and fuel for the process; the role of conscious individual pioneers who express subconscious social aspirations; imitation as the mechanism for social diffusion; information flows that serve as catalysts for new things to do and new ways to do old things; and laws, policies and formal systems as way-stations on the road to internalized values and informal social organizations. The primary resource and ultimate determinant of development is the individual human being's unlimited capacity for creativity and resourcefulness. Extending greater freedom of choice to its individual citizens is the central mechanism by which society can tap and release this infinite resource for the collective benefit.     

Observing the PSASB: ED 50 and the Recognition of Infrastructure Assets

Provisions of AAS 27 significantly expanding the recognition of assets in local government financial statements have proven to be controversial, particularly through their application to items of infrastructure. In one instance, state legislation was amended to overrule the standard. More recently, the standard itself has been amended to extend the relevant transitional provisions. To assist in explaining why an accounting issue ostensibly resolved through the due process of standard-setting continues to generate controversy, the responses to the exposure draft (ED 50) that preceded the standard were reviewed and analysed. This led to the conclusion that any inference that respondents to ED 50 generally supported the proposals relating to accounting for infrastructure items is, at best, problematic. This paper provides insights to standard-setting processes, particularly the workings of the Public Sector Accounting Standards Board and the extent of its responsiveness to parties affected by its deliberations.     

Changes in subjective well-being with retirement: assessing savings adequacy

Does retirement represent a state of relative prosperity or unanticipated hardship? To assess whether individuals are successful in smoothing their well-being across the transition to retirement we analyse measures of subjective well-being (SWB) in the Household, Income and Labour Dynamics in Australia (HILDA) Survey. Specifically, this research examines retirees’ current standard of living, financial security and overall happiness relative to their pre-retirement levels. It is found SWB either improves or remains constant for the large majority of individuals as they retire from the labour force. However, there are significant disparities in changes in well-being with retirement among the group of retirees. In particular, the subset of individuals who are forced to retire early due to job loss or their own health, and who find their income in retirement to be much less than expected, report marked declines in their SWB with retirement.     

Entrepreneurship as a solution to poverty

Individuals living in poverty remain a critical issue. This special issue focuses on how entrepreneurship can help to solve such poverty. Rather than viewing those in poverty as a market for goods, the solution lies in understanding how to help those living in poverty create their own businesses. Ultimately, entrepreneurship among those in poverty will create a long lasting solution to their poverty. Herein, we initially examine the extant knowledge about entrepreneurship. We then examine where future research on this important topic should move. Finally, we introduce the five articles that make up this special issue. These five articles came from the initial 71 submissions and enhance our knowledge about entrepreneurship as a pathway to reducing poverty.