Factors Driving Quality Standard Compliance in the Polish Dairy Sector

We construct a model to identify determinants of the diffusion rate of quality standards in a food chain. We argue that adoption decisions in the food chain are determined by farmers’ and processors’ economic considerations. Factors such as pricing behaviour, compliance costs and market structure are identified and discussed in the paper. The findings are used to test an econometric model utilizing data on Polish milk processing firms gathered between 2000 and 2002. The results indicate that input and output prices have a significant influence on the diffusion rate of standards; the dominance of large-scale holdings in the relevant procurement market significantly increases diffusion as well. Compared to their competitors, small cooperatives were found to face more significant problems in procuring high quality raw materials.      

The Economic Contributions of James J. Heckman and Daniel L. McFadden

This paper analyzes the economic contributions of Daniel L. McFadden and James J. Heckman, who were awarded the Nobel Prize in economic science in 2000. McFadden's analytical work on discrete choices and related theory brings economic tools to bear on policy questions that previously had not been empirically investigated. The multinomial logit and similar models developed by McFadden enable researchers to empirically model factors that affect individual choices (e.g. of travel mode, occupation or employment, and residential location) with discrete outcomes. Heckman's research on selective samples demonstrates the difficulty of achieving generalizable results in analyses of choice-based behavior. In addition, his work on the evaluation of social programs has challenged conventional beliefs about the infallibility of experimental evaluation results and explored the limits and potential of non-experimental methodologies in a range of social science applications.     

Is Globalisation in Danger?

This paper compares the globalisation experience of the late 19^th century with that of the post world war period. It notes the enormous changes in the world economy arising from the increasing participation of the developing countries in the world goods, labour and capital markets and the reduction in the cost of communications that has underlined these changes. More importantly globalisation was made by a consensus on trade, debt and macroeconomics which has led to policy reforms in developing countries including China whose entry into the WTO provides a high watermark in globalisation of the latter period. The paper notes that globalisation is not in danger of reversal given that the forces that led to this outcome in the earlier period have become weak. Ideas, interests, international relations and stability achieved in the post World War period gives ground for qualified optimism about the continuation of globalisation.     

Beyond the journey: the lasting impact of culinary tourism activities

In general, food tourism research has focused on tourist behaviour prior to or during trips, as well as food tourism development and marketing from a destination perspective. This exploratory study investigates food tourism from a broader context to determine if food tourism activities may impact attitudes and future behaviours. Data from a nine-country survey indicate that food activities likely impact trip satisfaction and influence intention to return and likelihood to recommend a destination. Food experiences are connected with memory, and these food experiences and souvenirs may influence destination image and lead to future purchases. Suggestions are provided for further research.     

The marketability of bank assets, managerial rents and banking stability

Financial innovation and greater information availability have increased the tradability of bank assets and have reduced banks’ dependence on individual bank managers. We show that this can have two opposing consequences for banking stability. First, the hold-up problem between bank managers and shareholders becomes less severe. Consequently, banks’ capital structure needs to be less concerned with disciplining the management. Deposits – the most effective disciplining device – can be reduced, increasing banks’ resilience to adverse return shocks. However, limiting the hold-up problem also diminishes bank managers’ rents, reducing their incentives to properly monitor and screen borrowers, with adverse implications for asset quality. Thus, the default risk of banks does not necessarily decline. We argue that this delivers a novel explanation for the origin of the recent subprime crisis.