Regional welfare loss meaures of the 1973 oil embargo: a numerical methods approach

A simple exercise of time-series analysis shows that the presence of the phonomenon of temporal aggregation in quarterly consumption data can substantially alter the empirical inference about Hall' mocel of consumption behaviour. This fact has received almost no attention in the econometric research in this field.     

Economic determinants of Soviet foreign trade with Eastern Europe

Using a cross-sectionally correlated and time-wise autoregressive pooling procedure, we have obtained long-run estimates of export and import elasticities of Soviet-East European bilateral trade with respect to supply, demand and trade resistance factors. Our results indicate that Soviet exports to East Europe during 1963–1973 was, for most product groups, determined by demand conditions found in the East European partner countries while Soviet imports from Eastern Europe, for the same period, was for most product groups determined by East European supplies.     

Systematic risk estimation in the presence of large and many outliers

It is well recognized that the effect of extreme points on systematic risk estimates is not adequately captured through least squares estimation. This article uses the reweighted least median squares (RWLMS) approach, first proposed by Rousseeuw (1984), which accurately detects outlier presence. Using a large sample of 1350 NYSE/AMEX firms, the article demonstrates that least squares does indeed mask several potentially influential points, that this masking is very pervasive over the sample, and that it may persist even after conventional robust estimation techniques are applied. When these masked points are “unmasked” by RWLMS and zero weights assigned to such observations, the resulting RWLMS estimates of beta are on average 10%–15% smaller. However, a Bayesian treatment of such points (assigning a priori nonzero weights) is possible in both one and two factor market models.     

Impulse and diffusion in the study of technical change

A common model of innovation diffusion is extended to incorporate the interaction of demand growth and capacity growth, building in part on work by Kuznets and Burns on industrial growth and retardation. It is shown how price and production cost evolve during a diffusion process, and how Schumpeter's theory of the transient nature of innovator's profits has a natural place within the analysis of diffusion. The framework is intended to assist future analysis of the links between the diffusion and the evolution of a given technology, taking account of, eg, learning by doing, production bottlenecks and the inducement to innovation, and producer/adopter interaction to improve technological performance.     

The dynamics of long-term business-to-business exchange relationships

A framework for business-to-business interaction is proposed that integrates approaches to bargaining from social psychology and economics to provide a conceptual paradigm emphasizing long-term exchange relationships rather than individual transactions. The authors propose a classification of negotiation behavior along two continuous dimensions and examine the mechanics of the dyadic negotiation process that translate negotiation behavior into long-term relationships. They suggest that exchange relationships are formed by achieving mutually beneficial outcomes from a series of exchange transactions and that there is a bi-directional link between negotiation behavior and exchange relationships mediated by negotiation outcomes. The framework also explores the determinants of negotiation behavior in dyadic negotiations between businesses in terms of organizational, individual, and “other party” influences. Propositions are developed, using both role theory and economic bargaining theory, to support the overall framework. Finally, the classification of negotiation behavior is revisited to examine the evolution of exchange relationships over time. She received her Ph.D. from Georgia State University. Her research interests include attitude and choice models, services marketing, customer satisfaction, and business-to-business relationships. She has published articles in theJournal of Consumer Research, Journal of Business Research, Psychology and Marketing, Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior, and theJournal of Health Care Management, as well as various conference proceedings. He received his Ph.D. from the University of Pittsburgh. His research interests include organizational buying behavior, negotiation strategies, small group dynamics, and cross-cultural differences in buyer-seller interactions. His research has been published in theJournal of Marketing, Journal of Consumer Research, Journal of International Business Studies, andIndustrial Marketing Management, as well as numerous conference proceedings. She also holds an M.B.A. from the Uni- versity of Tennessee. Her research interests include consumer value determination, consumer satisfaction, and business-to-business relationships.