Option values,stipends and the returns to educational investment

In this paper we use a dynamic model of the returns to educational investment to analyze the flow of students moving through the various stages of an educational system. Dropout and graduation rate are linked to the profitability of an educational stage and thus may be influenced by an appropriate choice of stipend level. To determine the effects of changes in stipends on the output of the educational system we hypothesize a probability distribution of abilities in the population. The parameters of this distribution permit the estimation of the effects of stipends on the graduation rate of each educational stage.     

The existential necessity of midlife change

As life expectancy in the West increases and companies can no longer promise lifelong security, many businesspeople will need to make major changes during middle age, embarking on a second life and a second career. They must start by getting beyond two pervasive and opposing myths. The first is that midlife marks the onset of decline. Problems do arise during middle age--concerns about health and finances, for instance--but one's life force does not expire at 65, nor do possibilities vanish. In fact, by middle age, most executives have gained a freedom that only self-knowledge can impart, and they relish unprecedented opportunities for personal growth. Midlife transitions, however, must be rooted in realism, not driven by the second myth, which paints middle age as a time of magical transformation. Contrary to what self-help books and inspirational speakers proclaim, such transformations do not happen. A 50-year-old with little musical training, for instance, will not suddenly become a concert pianist. People who buy into this myth find that their inevitable disappointment can be debilitating. Paradoxically, the doctrine that aims to encourage change actually stifles it. To make successful transitions, executives must stay open to the possibilities their experience qualifies them for but remain realistic about what they can achieve. For companies, employees' midlife transitions represent both a challenge (senior managers seemingly on track to become CEO may instead leave) and an opportunity (other midlife executives, with different perspectives and experiences, may knock on the door). Organizations must help middle-aged executives through this difficult period, not just by offering a workshop or two but by providing ongoing coaching and opportunities for personal and professional development.     

Technology,market policies and institutional reform for sustainable land use in southern Mali

To identify appropriate interventions that support sustainable land use; a farm household modelling approach is applied to analyze micro-economic supply reactions to various policy measures. The modelling framework links agro-technical and economic data, and takes both production and consumption decisions into account, allowing land use and production technology adjustments in accordance with farm household objectives. Different types of farm households are distinguished on the basis of their resource endowments, savings coefficients and time discount rate. Actual and alternative (sustainable) cropping and livestock activities for different weather regimes are defined for southern Mali. The effects on sustainable land use and expected farm household welfare of adopting alternative technologies and modifying prices, transaction costs, access to credit and land taxes are demonstrated. Even with full information on sustainable technologies, strong policy interventions are required to halt soil degradation. Structural policies proved to be more effective than price policies to reduce soil degradation while maintaining positive income effects. When prices are determined endogenously, structural policy loses some effectiveness as an incentive for sustainable land use due to the effect of additional supply on local cereal and meat Prices.     

A new paradigm for forecasting security returns in a market regulated by price limits

Numerous futures markets in the US and many stock markets around the world set a “limit” price before each trading session, based on the settlement price at the end of the previous trading day. Price limits are boundaries set by market regulators to restrict large daily fluctuations in the price of securities. Once the return limit is triggered, traders cannot observe the equilibrium return that would have prevailed in the absence of such regulation. We develop an innovative approach for forecasting security returns (and prices) in a market regulated by price limits. Our forecasting model allows for multiple limit-hits. The model is robust, straightforward and easy for practitioners to use. A few numerical predictions are provided for hypothetical securities, and for seven traded futures contracts.     

Interdependent preferences: an econometric analysis

The theoretical model of Gaertner (1974) and Pollak (1976) for the interdependence of preferences in the Linear Expenditure System is estimated for a cross-section of households. The interdependence of consumption of different households has implications for the stochastic structure of the model and for the identifiability of its parameters. Both aspects are dealt with. The empirical results indicate a significant role played by the interdependence of preferences. One of its implications is that predictions of the effects of changes in a household's exogenous variables differ according to whether the exogenous variable only changes for this household or for all households jointly. © 1997 John Wiley & Sons, Ltd.     

Between relaxation and excitement: activities and benefits gained in retirees' tourism

While most studies that focused on older adults' tourism behaviour have used quantitative methods, most studies that focused on benefits that older adults gain from tourism have used qualitative methods. Thus, the associations between seniors' tourism behaviour and its results, namely, the benefits gained, were never explored. This study aimed to examine these associations. The study was based on a national mail survey of 298 Israeli retirees, who travelled abroad at least once in the year prior to the survey. Results indicated that there are nine factors of destination activities and five factors of benefits gained, which are intricately interrelated. In addition, four differentiated sub‐segments were identified based on their destination activities, but the differences between them in terms of benefits gained were rather minor. These findings suggest a balance mechanism in older adults' tourism that leads to maximization of benefits in different activities and/or circumstances. Copyright © 2009 John Wiley & Sons, Ltd.