Elicitation of irrigators' risk preferences from observed behaviour

Water trading in the Murray–Darling Basin of Australia has developed to the point where it is a common adaptation tool used by irrigators, making it an apt case study to elicit the marginal value of irrigation water and irrigators' risk preferences in two key industries with differing levels of water dependence. Our data come from large‐scale and representative surveys of irrigated broadacre and horticultural farms in the Murray–Darling Basin over a 6‐year period. The marginal contribution of irrigation water to profit is estimated at $547 and $61/ML on average in horticulture and broadacre, respectively. Horticultural irrigators are found to be averse to the risk of large losses (downside risk) while broadacre irrigators are averse to the variability (variance) of profit.     

Customers’ Perceptions of Employee Engagement: Fortifying the Service–Profit Chain

This study investigated the three dimensions of employee engagement: dedication, energy, and absorption from the customer’s perspective. The service–profit chain (SPC) and employee behavior that promotes customer satisfaction and loyalty were examined. The results revealed that certain aspects of employee engagement are more readily perceived by consumers and more likely to promote customer satisfaction and loyalty. Findings showed that energy and dedication combined were most likely to foster feelings of satisfaction and loyalty among hospitality patrons. From a theoretical perspective, the study contributes to the literature by enhancing the SPC, revealing new insight into employee engagement, and linking employee engagement to positive consumer outcomes. Hospitality industry professionals may find that employee engagement benefits the customers’ perceptions of the establishment, ultimately increasing profitability. This study utilizes the SPC in the hospitality context and proposes a new link in the chain: employee engagement.     

Supporting Rural Labour Markets

Deprivation and disadvantage in rural areas is often thought to be "hidden" from official statistics largely because people in rural areas are dispersed into small, scattered settlements. This paper draws on research undertaken in two contrasting rural areas to explore one aspect of disadvantage, the labour market, and goes on to consider possible policy mechanisms which might be able to address rural deprivation. In particular, it examines the potential for more flexible policies, which appear to have been successful in urban contexts, but which are targeted at areas with high concentrations of deprivation so that rural areas do not qualify.     

Choosing Winners and Losers in a Classroom Permit Trading Game

This paper presents a classroom game in which students trade pollution permits. By changing the distribution of permits across firms, the game shows students how the allocation of property rights determines the winners and losers in the permit trading system but does not affect the efficiency of the system. This game can be used in a variety of classes, including principles or environmental economics, and can be conducted in a 50-minute class period with follow-up discussion in the next class.     

Tailored to the extremes: Quantile regression for index‐based insurance contract design

A new approach for weather index‐based insurance design based on Quantile Regression (QR) to condition the yield‐index dependency is developed and compared to standard regression technique. Three conceptual different risk measures, i.e., Expected Utility, Expected Shortfall and a Spectral Risk Measure, are used to evaluate the risk reducing properties of these contracts. Our findings show that QR is much more powerful in establishing the yield‐index dependency and lead for all risk measures to a higher risk reduction than the standard technique ordinary least squares (OLS). Thus, QR leads to a more efficient contract design, which is beneficial for both, the insurer (smaller remaining risk) and the insured (higher demand and willingness to pay). Our empirical application is based on a 31 years long time series of wheat yield data from Northern Kazakhstan.     

Achieving a new equilibrium? The stability of cooperative employer–union relationships

The current popularity of ‘partnership’ in workplace industrial relations raises the question of the durability of such arrangements. This article investigates the stability of cooperative employer–union relationships by means of case studies. It analyses perceptions of the experience of negotiation and consultation. Continuing net benefits are reported both by managers and by union representatives in workplaces where cooperative relationships are robust. The benefits come primarily from the informal consultative processes and levels of trust that are engendered. Nonetheless, parties to the relationship, however robust they were, faced substantial challenges to their efforts to diffuse and sustain cooperative working. It is concluded that cooperative relationships are likely to be stable where employers wish to maintain an independent employee voice, especially where workplace union density remains relatively high.     

Recognition versus Disclosure: An Investigation of the Impact on Equity Risk Using UK Operating Lease Disclosures

This study examines the equivalency of accounting recognition versus disclosure. OLS regression analysis is used to determine whether there is an association between equity risk and an adjustment to financial risk for off-balance sheet operating leases. Two methods of adjustment are considered: constructive capitalisation and a simple factor method. The observation of a reliably positive association suggests that UK investors/analysts view operating leases from a property rights perspective rather than an ownership perspective. This supports the argument for recognition of all lease rights and obligations 'on-balance sheet', as proposed in the recent G4+1 discussion paper ASB (1999).     

Attitudes towards business ethics held by South African students

This study uses the ATBEQ, as published by J.F. Preble and A. Reichel (1988) to measure attitudes towards ethical business attitudes held by final year South African Bachelor of Commerce students at Rhodes University. Three samples of students were assessed over three consecutive years of 1989, 1990 and 1991, and results are compared with samples (1988) of American and Israeli students and a sample (1991) of Western Australian students. A significant difference in attitudes was found to exist between the Israeli and South African samples. A factor analysis of the questionnaire identified eleven factors of which seven are theoretically labelled. A revised version of the ATBEQ is suggested which excludes the poorly performing questions.Robert S. Moore, is a lecturer in the Department of Management at Rhodes University, Grahamstown, South Africa. His research interest is in the area of business ethics mainly related to commerce students.Sarah E. Radloff is a senior lecturer in the Department of Mathematical Statistics at Rhodes University, Grahamstown, South Africa. Her research interest is in data analysis and she is the statistical consultant for many departments at the University.     

Investing in Eastern Europe: Two case histories

This feature is in three parts: the first two are case histories of the contrasting experiences of two Western companies which expanded abroad for the first time in the mid-1990s, into different countries in Eastern Europe. One is so far successful, the other not. The third section draws out the implications of these experiences: although still quite risky, investment in Central and Eastern Europe can already be made to pay by firms that enter as part of a well-conceived and financed global strategy. Particular benefits are lower labour costs and access to untapped markets.