Grades/Classes of Hard Wheats Exported from North America: Analysis of Growth and Market Segments

Issues about grain quality are integral to export demand and competition. In the past, debate focused on wheat class and country of origin. This study analyzed changes in imports for wheat grades and classes for hard wheats in Canada and the United States. Clustering techniques were utilized to examine importer behavior and identify market segments for characteristics of U.S. wheats over time. Shifts in marketing toward shipment of specific classes and from lower to higher grades were identified. Cluster analysis indicated changes in composition and an increase in the number of market segments.     

Conceptualizing coopetition as a process: An outline of change in cooperative and competitive interactions

This study discusses how and why cooperative interactions between competitors change as their coopetitive relation develops over time. Such cooperative interactions are conceptualized to depend on the existence of agreements between competitors, or rules for cooperating and competing, which are formulated based on past experiences from mutual interaction. The purpose is to develop a framework which explains change in coopetitive interactions and particularly in inter-organizational rules for interaction. This framework distinguishes three mechanisms underlying change: inter-organizational learning manifested in cooperation between competitors, intra-organizational learning based on confrontations between conflicting experiences among organizational members, and the development of the external environment. Based on this generic framework, three scenarios are developed that delineate the nature of the change process in relations characterized respectively by strong competitive and cooperative dimensions, and in relations characterized by equal and moderately strong levels of cooperation and competition. These scenarios further suggest that rules for interaction change in a predefined or discontinuous manner depending on the balance and strength of the cooperative and competitive interactions.     

Implications of biotech traits with segregation costs and market segments: the case of Roundup Ready(R) Wheat

Roundup Ready^® Wheat (RRW) is one of the first geneticallymodified (GM) traits for the wheat sector. We develop a spatialpartial equilibrium model of the higher-protein hard wheat marketand assess the changes in the distribution of welfare associatedwith release and adoption of RRW. It incorporates segments forGM aversion in each market and segregation costs for each segment.In the most likely scenario, producer and consumer welfare increasesby $301 and $252 million, respectively. Producers of hard redspring wheat in the US and Canada gain. There are welfare lossesto hard red winter wheat growers in the US and to EU consumerswho have to import at a higher cost.     

Factors Affecting Spring Wheat Variety Choices: Comparisons between Canada and the United States

The demand for high-quality hard wheats has been increasing in the 1980s and 1990s. In this article, factors affecting the varieties planted of hard red spring wheat in Canadian producing regions and North Dakota are compared. Differences exist in the development and release of varieties, which affect the supply and quality of hard wheats produced. Wheat areas in the Canadian provinces are more con- centrated in the top variety than those in North Dakota. However, in recent years, there appears to be a tendency toward increased varietal concentration in North Dakota and less in Canada. Econometric models are developed to compare and contrast factors affecting variety choice. In Canada, agronomic factors including relative yields are significant variables affecting variety choice. In North Dakota, agronomic factors generally have less effect on adoption rates, but economic variables are important. Varieties in North Dakota and Manitoba have shorter life cycles and reach their maximum utilization by farmers earlier than in Alberta or Saskatchewan. The longer varietal life cycles and higher concen- tration of the dominant variety suggest end-use variability should be lower in Canada than in North Dakota. La demande de blé vitreux de haute qualité s'accroît depuis une vingtaine d'années. Nous comparons id lesfacteurs déterminant le choix des variétés de ble deprintemps roux vitreux dans les régions canadiennes de production et au North Dakota. On observe, dans les modalités de création et de mise au commerce des variétés, des différences qui influent sur l'offre et sur la qualité des blés produits. Ainsi au Canada, les surfaces emblavées dans la variété la plus recommandée étaient plus concentrées qu'au North Dakota, bien que, ces dernières années, la tendance semble s'inverser. Des modèles économétriques ont été construits pour comparer et confronter les facteurs jouant sur le choix variétal. Au Canada, lesfacteurs agronomiques, notamment les rendements relatifs, ressortaient comme les variables significatives du choix variétal, alors qu‘au North Dakota leur importance était secondaire à celle des variables économiques. Les variétés adoptées au North Dakota et au Manitoba avaient un cycle de vie plus court et atteignaient leur sommet d'utilisation plus vite qu‘en Alberta ou en Saskatchewan. La plus longue durée du cycle de vie des variétés et les plus fortes concentrations de la variété dominante indiquent que la qualité du grainproduit devrait être mains variable au Canada qu'au North Dakota.     

Bank audit practices and loan loss provisioning

I empirically examine the evolution of loan loss accounting across banks that differ categorically by external auditing practice. Using a partial adjustment model, and a sample of 75,505 observations on affiliated banks, 1995–2009, I find evidence of convergence across audit categories in target ratios of provisions for loan losses to nonaccrual loans. This is consistent with a standardized method of accounting for “impaired” loans. I observe less convergence, on the other hand, in target ratios of provisions for loan losses to loans, which appears to accommodate a role for managerial discretion.     

Semiparametric inference in a GARCH-in-mean model

A new semiparametric estimator for an empirical asset pricing model with general nonparametric risk-return tradeoff and GARCH-type underlying volatility is introduced. Based on the profile likelihood approach, it does not rely on any initial parametric estimator of the conditional mean function, and it is under stated conditions consistent, asymptotically normal, and efficient, i.e., it achieves the semiparametric lower bound. A sampling experiment provides finite sample comparisons with the parametric approach and the iterative semiparametric approach with parametric initial estimate of Conrad and Mammen (2008). An application to daily stock market returns suggests that the risk-return relation is indeed nonlinear.     

Can Hand Washing Influence Hedonic Food Consumption?

The act of hand washing has been a routine part of hygienic practices across time and society. Aside from its physiological effects, hand washing has also been shown to symbolically cleanse individuals of their transgressions. However, most research demonstrating the metaphorical effect of hand washing has mainly been focused within the domain of morality. The objective of the current research is to explore the role of hand washing on consumption behavior, and more specifically, hedonic food consumption. Across two studies, this article establishes the role of hand washing after hedonic food consumption as well as prior to a hedonic food choice. In Study 1, washing one's hands after consumption of hedonic food decreased perceived guilt. In Study 2, washing one's hands prior to choice led to an increased likelihood of choosing a more hedonic (compared to less hedonic) food item. Thus, by washing one's hands, individuals are provided with a license to indulge in hedonic foods without the guilt that is commonly associated with such a choice. Several implications for consumer behavior research and the effects of hand washing on food decision making are discussed.     

Coincident correlations of growth and cash flow in banking

Prior empirical research indicates that loan growth in the banking industry is positively related to cash flow. I offer an alternative methodology that is better able to capture the effect of cash flow on loan growth while controlling for the potentially coincident effect of loan growth on cash flow. Using a sample of 171,389 observations on banks, 1986–2007, I find that causality runs more consistently from growth to cash flow than from cash flow to growth. This extends prior empirical research by Houston and James (1998) and Campello (2002) on cash flow sensitivities in the banking industry.     

An introduction to the product liability debate

No other field of consumer law has been subjected to such a heated debate as product liability. Unfortunately, the main feature of the debate is rhetorical overload. A surprisingly great amount of misleading and even false information has been put forward. Such a number of unsubstantiatable “horror stories” has been circulated in such ways that it may be hard not to get the impression that it is done by purpose, not by mistake, the purpose being to alleviate or forestall any product liability caused financial burden on industry through the injection of a false atmosphere of panic into the commercial and political scene. On this background the paper contains a rather general outline of product liability law — the law as it stands today and some proposals for reform — in Europe and in the U.S.A. in connection with a basic comparative analysis of differences and similarities. The paper gives nothing more than an overview. For instance, it does not define, analyze, or discuss the consumer policy aspects of product liability.     

Quality Uncertainty and Challenges to Wheat Procurement

Issues related to quality uncertainty in wheat producing countries have escalated in importance in recent years. While Canada addresses these issues in part through variety regulations, firms in the United States resolve these through varying commercial strategies. Conventional alternatives for procurement range from spot purchases with specifications for easily measurable characteristics, to varying forms of strategies with precommitment. In grains, these are complicated by intrinsic uncertainty associated with functional qualities that are not easily measurable and that procurement costs vary spatially. Thus, shifting origins may involve higher cost due to having to bid grain away from its best market. We posed alternative procurement strategies and developed analytical models to evaluate the costs and risks of these in the case of hard red spring (HRS) wheat. Climatic conditions are a source of uncertainty in functional performance which reduces incentives for contracting and vertical integration, and poses a challenge to any form of integrated supply chain management. Les problèmes liés à l'incertitude quant à la qualité des approvisionnements des pays producteurs de blé ont augmenté au cours des dernières années. Tandis que le Canada s'attaque à ces problèmes en imposant divers règlements, des entreprises états‐uniennes les résolvent en adoptant diverses stratégies commerciales. Les moyens d'approvisionnement traditionnels varient des achats au comptant assortis de critères pour les caractéristiques facilement mesurables, à diverses stratégies comprenant un pré‐engagement. Dans le secteur des céréales, la situation est compliquée par l'incertitude intrinsèque quant aux qualités fonctionnelles qui ne sont pas facilement mesurables et le fait que les coûts d'approvisionnements varient d'un endroit à l'autre. Par conséquent, s'approvisionner dans d'autres pays pourrait entraîner des coûts plus élevés en privant le secteur de son meilleur marché. Nous avons formulé d'autres stratégies d'approvisionnement et élaboré des modèles analytiques pour évaluer les coûts et les risques de ces stratégies dans le cas du blé de force roux de printemps. Les conditions climatiques sont une source d'incertitude de la qualité fonctionnelle qui diminue les incitatifs pour la conclusion de contrat et l'intégration verticale et qui pose un obstacle pour toute forme de gestion intégrée de la chaîne d'approvisionnement.