Accounting Price of an Exhaustible Resource: Response and Extensions

Wei (Environ Resour Econ 60:579–581, 2015) presents a novel derivation of the accounting price for an exhaustible resource in a non-optimal economy subject to an allocation mechanism. We show that Wei (2015) and Hamilton and Ruta (Environ Resour Econ 42:53–64, 2009) are in fact employing different and mutually exclusive allocation mechanisms for the economy, and this explains the differences between the respective accounting prices. Because accounting prices must be defined subject to the allocation mechanism for the economy, the prices derived in the two papers are equally valid within their respective allocation domains. Further analysis shows that if there is declining marginal product of factors, a ‘Hartwick investment rule’ for the model economy (set investment just equal to depletion, valued at the accounting price) will lead to declining consumption for the Wei (2015) accounting price, and increasing consumption for the Hamilton and Ruta (2009) accounting price. This result is extended to consider the accounting standards recommended in the UN SEEA (System of environmental-economic accounting 2012: central framework. United Nations, European Commission, Food and Agriculture Organization of the United Nations, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank, 2012), as well as accounting for environmental externalities from resource use.     

Progress along the path: evolving issues in the measurement of genuine saving

More than 10 years since a practical linkage between sustainable development and a measure of national wealth—expanded to include natural and environmental resources—was first posited, the empirical estimation of adjusted net savings, dubbed ‘genuine’ saving, has evolved considerably. In this paper we take stock of both progress achieved and the challenges that remain. We begin by recalling the key points made in Pearce and Atkinson (1993, Ecol Econ 8, 103), which presented the first cross-country estimates of savings rates adjusted to reflect depletion and degradation of the environment. We then briefly summarise the evolution of the theoretical argument linking savings and sustainability. However, the main focus of this paper is an aspect that concerned David Pearce greatly, namely the evolution of the measurement of genuine savings. We identify and consider the empirical evidence with regard to two particular measurement issues: the valuation of exhaustible resources and environmental degradation. Common to the both issues are concerns about measuring changes in national wealth in real world economies.      

Business intelligence methods — How ethical

In recent years, we have experienced some revival of society's concerns with the ethics of business practices as a result of several scandals. However, severe competitive pressures seem to continue to force executives to resort to marginally ethical ways that would provide knowledge about competitors' operations. Therefore, an empirical study was conducted during Spring and Summer of 1991 about information gathering methods by businesses regarding operations of competitors. Respondents were employed in a variety of different industries. A convenience sample was administered in two adjoining states, with one group residing in an urban city and the other in smaller predominantly rural communities.Analysis of perceptions held by these two groups supports the hypothesis that rural residents tend to be more conservative and less approving of questionable methods of information gathering. Similarly, within each group and in the sample as a whole, differences in condoning or disapproving information gathering methods were discovered on the basis of demographic characteristics of respondents.John Hallaq is a professor of marketing and international business at the University of Idaho. He won the A. D. Davis Free Enterprise Award in 1989. He has presented and published several articles dealing with country comparative studies and privatization trends.Kirk Steinhorst is a professor of statistics and statistical consultant at the University of Idaho. Recent articles include collaborative research in business, ecology, and geology.     

Is Background Music Effective On Retail Websites?

Web designers often advise online retailers against incorporating background music on websites. However, the effect of music in brick-and-mortar retail settings has generally been found to be favorable. The research on the effects of music has been mixed. Our study aims to examine whether congruent music on the website homepage influences online consumers. Using the responses of 290 visitors to two different commercial websites, we test the influence of background music on consumers’ arousal and pleasure perceptions. The results indicate congruent background music on a website's homepage will generate positive affective responses of arousal and pleasure within users, and will enhance users’ perceived usefulness and perceived enjoyment as well. The findings reveal the effects of respondent’ affective responses to the music differed by gender. Website music produces significant affective and cognitive responses in high web skill/low web challenge users and explains more of website enjoyment.     

Constitution

In looking toward the futures of Europe, the focal point of the legal and governmental aspects of European life has recently become the Treaty Establishing a Constitution for Europe—or just the ‘Constitution’ as it has become colloquially known. That socio-linguistic act of referring to a document as a constitution is a mammoth move. First, it ignores all of the concerns and hand-wringing around the idea of producing a legal document called a constitution that might immediately be thought of as a sovereign-building document, such as the German constitution or the Irish constitution. Second, it suggests that the people of Europe are in some way similarly situated as together to constitute something. In this article, the author continues a series of reflections on words regarding futures, and takes an extensive look at the use, misuse and power of the word ‘constitution’.     

State-space estimation of rational bubbles in the Yen/Deutsche Mark exchange rate

State-Space Estimation of Rational Bubbles in the Yen/Deutsche Mark Exchange Rate. — This paper considers a series that uncovered interest parity predicts to be white noise and inspects it for evidence of stochastic rational bubbles. State-space methods are used that specify a bubble component of the series as an unobserved state. The technique’s effectiveness is demonstrated by Monte Carlo experiments. One span of the series is found in which a stochastic rational bubble specification clearly dominates the white noise specification. It coincides with a period of general financial turm-oil in the associated economies, i.e. Japan and Germany during 1989 and early 1990.