TECHNICAL,ECONOMIC, AND ALLOCATIVE EFFICIENCY IN PEASANT FARMING: EVIDENCE FROM THE DOMINICAN REPUBLIC

This paper presents measures of technical (TE), economic (EE), and allocative (AE) efficiency for a sample of sixty peasant farmers in the Dajabon region of the Dominican Republic. Maximum likelihood techniques are used to estimate a Cobb-Douglas production frontier, which is then used to derive its corresponding dual cost frontier. These frontiers are the basis for obtaining farm level efficiency estimates. The results reveal average levels of TE, AE, and EE equal to 70 per cent, 44 per cent, and 31 per cent, respectively. In a second step analysis, two-limit tobit regression techniques are used to estimate three separate equations where TE, EE, and AE are expressed as functions of the following farm/farmer characteristics: contract farming, agrarian reform status, farm size, schooling, producer's age, and household size.     

Constrained Mean-Variance Portfolio Optimization with Alternative Return Estimation

This paper studies the problem of asset allocation in a mean-variance framework. The theoretical model of portfolio optimization is specified and then applied to a long panel data set from historic to most recent times, March 1990 – March 2013. The paper contributes in three ways. First, an alternative asset return model is proposed that combines the historical returns, capital asset pricing model (CAPM) and returns estimated based on firm fundamentals. These return estimates enter the optimization problem. The second contribution is the application of an improved covariance matrix estimator that has superior properties compared to the typical sample covariance estimator. Third, the paper proposes two investments strategies. The first proposition suggests always choosing the maximized Sharpe ratio portfolio and the second one, the portfolio with the highest information ratio. The nature of both strategies is designed for investors with different appetites for risk. The performance of these choices is analyzed in light of four types of constraints: upper/lower investment limits, group constraints and transaction costs. The one-period optimal investment portfolio is rebalanced at quarterly intervals. Both strategies are benchmarked against an alternative investment choice such as holding the S&P 500 index, or investing in a risk-free asset such as a bond. Portfolio analysis and backtesting reveal that the strategies are superior to simply holding an equally weighted portfolio, a risk-free asset or the S&P 500 index.     

The Intellectual Structure of Product Innovation Research: A Bibliometric Study of the Journal of Product Innovation Management, 1984–2004

Product innovation research has matured substantially in the last two decades. A great deal of knowledge has been produced on various aspects of the discipline, so it is of interest to assess the state of the art the scientific community has reached in this discipline and the route it has taken. This perspective is investigated through a bibliometric study of the Journal of Product Innovation Management (JPIM), arguably the most important specialized journal on this topic. The work reviews all journal paper contributions in JPIM from 1984 to 2004 in determined time frames, assesses the citations contained in these papers, identifies how the citations are related to the various topics of production innovation research (topic‐related citation variety, topic‐related citation consistency, variation in topic‐related citation pattern), and offers a retrospective examination of the evolution of the field. The overall analysis of citations shows that most papers in JPIM cite at least one of the top 50 works identified by this study. This testifies to the strong impact of the most influential works on the intellectual structure of product innovation research. The observed citation pattern suggests that the top 50 papers gained influence in product innovation research either because they represent a relevant contribution on a fundamental topic that already has been authoritatively studied or because they investigate in a relevant manner a new topic. The paper suggests that JPIM might benefit in its aim to consolidate its position as one of the top academic business journals if published papers increasingly drew on the most influential works to inform their research design and explicitly stated the theoretical underpinnings they draw on in their research design. Overall, the analysis of the subperiods (1984–1988, 1989–1993, 1994–1998, and 1999–2004) provides evidence for the maturation of new product innovation research. Books covering a wide range of topics are replaced by journal papers addressing a specific topic; over time, specific topics emerge and become influential for the discipline's intellectual structure; papers published in JPIM augment their methodological rigor and increasingly address contingency factors. The paper also notes that obtaining relevance for JPIM authors constitutes a necessary condition for being considered by management researchers at large as an influential contribution to product innovation research.     

Technical efficiency analysis correcting for biases from observed and unobserved variables: an application to a natural resource management project

This article brings together the stochastic frontier framework with impact evaluation methodology to compare technical efficiency (TE) across treatment and control groups using cross-sectional data associated with the MARENA Program in Honduras. A matched group of beneficiaries and control farmers is determined using propensity score matching techniques to mitigate biases stemming from observed variables. In addition, possible self-selection arising from unobserved variables is addressed using a selectivity correction model for stochastic frontiers recently introduced by Greene (J Prod Anal 34:15?C24, 2010). The results reveal that average TE is consistently higher for beneficiary farmers than the control group while the presence of selectivity bias cannot be rejected. TE ranges from 0.67 to 0.75 for beneficiaries and from 0.40 to 0.65 for the control depending on whether biases were controlled or not. The TE gap between beneficiaries and control farmers decreases by implementing the matching technique and the sample selection framework decreases this gap even further. The analysis also suggests that beneficiaries do not only exhibit higher TE but also higher frontier output.     

Continuity Under a Different Name: The Outcome of Privatisation in Serbia

Normally, privatisation is seen as beneficial. This paper considers the case of Serbia – a latecomer in the matter – where privatisation was partly a result of exogenous pressures and where the process has been deemed a failure. In Serbia, a sizeable number of privatised firms were bought by bureaucrats and politicians and all firms were subjected to a period of supervision. We argue that the design of this process allowed rent-seekers to conserve their privileges through asset-stripping, which explains the failure. In order to do so, we perform an empirical analysis of the determinants of liquidation, merger and bankruptcy of privatised firms from 2002 to 2015. We construct a novel data set from primary sources, free of the ‘survivorship bias’ and containing proxies for various types of owners, indirect signs of asset-stripping strategy and a broad range of controls. Our results indicate that firms owned by politicians faced significantly higher risks of bankruptcy, especially after the end of supervision.     

Evaluation periods and asset prices: Myopic loss aversion at the financial marketplace

Examining myopic loss aversion (MLA [Benartzi, S., Thaler, R., 1995. Myopic loss aversion and the equity premium puzzle. Quarterly Journal of Economics 110, 73–92]) in real financial markets has several merits: in repeated situations investors may learn from each other, aggregate market prices may eliminate individual violations of expected utility, and individuals may decide differently in real situations than in laboratories. We utilize a special feature at the Tel Aviv stock exchange (TASE): occasional shifts of securities from daily to weekly trading. If investors’ decisions are influenced by trading frequency manipulation, then returns should be predictably affected. MLA results in a negative relation between risk aversion and the length of the evaluation period. Thus, the longer the evaluation period is, the lower the expected return is. This intuition also suggests reduced sensitivity to economic events in longer evaluation periods. We find strong support for MLA in the marketplace when testing expected return, as well as return sensitivity.