An empirical assessment of the welfare effects of reciprocal dumping

Can two-way trade in similar products lead to lower welfare than if such trade was banned? Theory answers yes. To empirically investigate this proposition we examine Swedish imports of bottled water. Assuming one-shot (Bertrand and Cournot) competition, we can use the estimates from a structural model of demand to uncover marginal costs. We simulate the effect on consumer and producer surplus of banning imports. We do not find convincing evidence that banning imports would increase overall welfare. Given our choice of market this suggests we should not be overly concerned with the welfare effects of two-way trade in consumer goods that are close to homogenous.     

Selective versus Random Moose Harvesting: Does it Pay to be a Prudent Predator?

Seeking to act as prudent predators in many biological systems, humans try to harvest in a sustainable manner. In Sweden, wildlife managers and moose hunters use information about the future contribution of individual moose to population growth (i.e., their reproductive value), in order to harvest low-and non-reproductive animals. This selective harvest strategy results in a significantly faster overall population growth rate. To investigate whether this selective harvest policy is economically beneficial, we calculated the present value of the selective moose hunting policy used in Sweden compared to the present value of a non-regulated (i.e. random) moose harvest. Present values of the moose hunting produced by the different hunting regimes were calculated for a period of ten years and at interest rates ranging between 1% and 10%. The difference in present value between the selective hunting policy and the average outcome of random harvesting was SEK 310 million ($ 36 million) and SEK 300 million ($ 34 million), or SEK 1 321 ($ 154) and SEK 1 279 ($ 149) for an average moose hunter, when using interest rates of 3% and 4%, respectively. To determine whether the current selective moose hunting policy is economically profitable or not, benefit estimates like these should be weighted against the costs of upholding the policy. Most of the costs probably lie in providing the hunters with information about the future harvesting prospects and reducing the risk of divergences from the policy. The welfare effects of a hunting policy will also be dependent on the individual hunter's preferences, for instance in terms of their attitudes towards risk. This revised version was published online in August 2006 with corrections to the Cover Date.     

An entrepreneurial process perspective on succession in family firms

We review and analyze previous literature on succession in family firms from an entrepreneurial process perspective. Through a three-step cluster analysis of 117 published articles on succession in family firms published between 1974 and 2010, we find several themes within which succession can be understood from an entrepreneurial process perspective where both the entry of new owners and exit of old owners are associated with the pursuit of new business opportunities. We identify gaps within each cluster and develop a set of research questions that may guide future research on succession as an entrepreneurial process. Since succession involves implications for individuals, families and firms, we suggest researchers should adopt a multilevel perspective as they seek answers to these research questions. Our review and analysis also underlines the need to focus on ownership transition rather than only management succession, and the importance of carefully defining both succession and family firm.     

Robustness for path-dependent volatility models

In this paper, we consider a generalisation of the Hobson–Rogers model proposed by Foschi and Pascucci (Decis Eocon Finance 31(1):1–20, 2008) for financial markets where the evolution of the prices of the assets depends not only on the current value but also on past values. Using differentiability of stochastic processes with respect to the initial condition, we analyse the robustness of such a model with respect to the so-called offset function, which generally depends on the entire past of the risky asset and is thus not fully observable. In doing this, we extend previous results of Blaka Hallulli and Vargiolu (2007) to contingent claims, which are globally Lipschitz with respect to the price of the underlying asset, and we improve the dependence of the necessary observation window on the maturity of the contingent claim, which now becomes of linear type, while in Blaka Hallulli and Vargiolu (2007), it was quadratic. Finally, in this framework, we give a characterisation of the stationarity assumption used in Blaka Hallulli and Vargiolu (2007), and prove that this model is stationary if and only if it is reduced to the original Hobson–Rogers model. We conclude by calibrating the model to the prices of two indexes using two different volatility shapes.     

Moose Hunting Values in Sweden Now and Two Decades Ago: The Swedish Hunters Revisited

This paper is based on two national contingent valuation studies dealing with the extent and economic values of hunting in Sweden. The first valuation study was conducted in 1987 and the second in 2006. Both the game resource and the hunter community have undergone changes in the two decades covered by the surveys. An important purpose of the latter survey was to repeat relevant parts of the former one, which created a rare opportunity to compare valuations covering a very long time span. Moose hunting value and its determinants were compared between the two studies, showing that significant changes have taken place. Our analysis suggests caution in using results from old contingent valuation studies for e.g. benefits transfer exercises.     

Backcasting images of the future city—Time and space for sustainable development in Stockholm

This paper presents and discusses a backcasting study for Stockholm 2050. The focus is on developing images of a future where Stockholm citizens have sustainable energy use—here defined as a 60% reduction per capita over a 50-year period. The perspective is that of households, so all energy is allocated to individuals’ activities rather than being discussed from a sector perspective. Six images of the future are developed by combining a space dimension (three versions of changes in urban structure) and a time dimension (two versions of people's life tempo). Added to this is technological development, so that the images of the future illustrate how combinations of planning, behavioural change and technological development could lead to sustainable energy use.     

Researching Projects and Theorizing Families of Temporary Organizations

Following contemporary development in which most temporary, focused, and organized endeavors can be regarded as a project and studied as a temporary organization, here we ask: How can these phenomena be defined without hindering pluralism in understanding, development, and theorizing? Based on the notions of family resemblance—the idea that it is not a specific trait, but a variety of traits that are shared by some, but not all, members of a family—we propose a new dynamic framework we believe is useful in advancing the studies of projects and temporary organizations toward more opportunities for rigorous theorizing.     

Bayesian prediction with cointegrated vector autoregressions

A complete procedure for calculating the joint predictive distribution of future observations based on the cointegrated vector autoregression is presented. The large degree of uncertainty in the choice of cointegration vectors is incorporated into the analysis via the prior distribution. This prior has the effect of weighing the predictive distributions based on the models with different cointegration vectors into an overall predictive distribution. The ideas of Litterman [Mimeo, Massachusetts Institute of Technology, 1980] are adopted for the prior on the short run dynamics of the process resulting in a prior which only depends on a few hyperparameters. A straightforward numerical evaluation of the predictive distribution based on Gibbs sampling is proposed. The prediction procedure is applied to a seven-variable system with a focus on forecasting Swedish inflation.     

Why Agency Costs Explain Diversification Discounts

We study diversificsation within the real estate industry because of its relative transparency: portfolio management of assets with well-defined market prices. Diversification is over property types and geographical regions. The major cause of the diversification discount is not diversification per se but anticipated costs due to rent dissipation in future diversifying acquisitions. Firms expected to pursue nonfocusing strategies do indeed diversify more, are valued ex ante at a 20% discount over firms anticipated to follow a focusing strategy, are predominantly privately controlled and use dual-class shares extensively. The ex ante diversification discount is, therefore, a measure of agency costs.     

Board participation,toeholds and the cross-border effect

Research shows that the bid announcement return (BAR) of the acquiring firm is lower for cross-border than domestic acquisition announcements. The current lack of economically based explanations for this effect, labeled the cross-border effect by Moeller and Schlingemann (2005), motivates our study. We use unique hand-collected corporate governance data to study how the relationships between acquiring and target firms prior to a bid announcement affect the cross-border effect. Our tests show that non-operating associations between the acquiring and target firms, in the form of board participation and toeholds, have a positive effect on the BAR. The cross-border effect disappears when we control for board participation and toeholds. Thus, we suggest that the cross-border effect is at least partly a consequence of information asymmetries and the adverse selection problem that they generate.