Generalized piecewise linear histograms

We extend the concept of piecewise linear histogram introduced recently by Beirlant, Berlinet and Györfi. The disadvantage of that histogram is that in many models it takes on negative values with probability close to 1. We show that for a wide set of models, the extended class of estimates contains a bona fide density with probability tending to 1 as the sample size n increases to infinity. The mean integrated absolute error in the extended class of estimators decreases with the same rate n^–2/5 as in the original narrower class.     

Mutual Fund Advisory Contracts: An Empirical Investigation

We investigate marginal compensation rates in mutual fund advisory contracts and find the following. Equity and foreign fund advisors receive higher marginal compensation than debt and domestic fund advisors. Advisors of funds with greater turnover receive higher marginal compensation. Also, closed-end fund advisors receive higher marginal compensation than open-end fund advisors. Finally, we find that marginal compensation is lower for advisors of large funds and members of large fund families. We argue that these differences in marginal compensation reflect differences in advisor marginal product, differences in the difficulty of monitoring performance, differences in control environments, and scale economies.     

Ex ante assessment of the returns to livestock disease control in Indonesia

Agriculture's importance in the process of economic growth highlights the role of sustained advances in farm production practices by improving the quantity and quality of farm products. In this context, investment in improved agricultural technology continues to be an important avenue of assistance to the developing countries. However, the increased resource pressures facing both aid donors and recipients have emphasised the need for the prior assessment of the potential benefits of aid projects to assist effective aid planning and management. Here, the main requirements are to establish viable project goals for translation into effective programmes, to predict the likely project impacts, and to evaluate the potential benefits and costs of adopting the project's outcomes. An ex ante assessment of assistance in controlling a major livestock disease in Indonesia's eastern islands is described in this paper. The annual net benefits from controlling this disease ranged between $A0.45 and $A2.5 million according to the mortality rate reduction achieved. The benefits were shared between beef producers and consumers according to the market elasticity conditions assumed.     

Preference adjustment and opportunities for agreement: Decision modeling to assess negotiating flexibility at UNCED

This paper develops a conceptual framework and applies it to analyze the dynamics of national interests in prenegotiation. The study's goals are to develop a systematic approach for analyzing prenegotiation processes and provide results that will have practical utility for negotiators. Specifically, the approach is applied to the prenegotiation process of the 1992 United Nations Conference on Environment and Development (UNCED), examining the financial resources issue, in particular. Decision analytic models were built to account for three key negotiation actors, and sensitivity analyses were performed to evaluate the incremental modifications to issue preferences required to achieve mutually acceptable compromises. Conclusions are drawn that indicate the extent of flexibility required of key negotiation actors to take advantage of the opportunities for agreement in the financial resources issue area. The conceptual framework and methodological approach explored in this paper can provide practical assistance as a planning tool for negotiators, helping them to diagnose the situation and plan strategies for future environmental and other multilateral negotiations. The approach can suggest specific opportunities for compromise and the degree and type of flexibility needed to achieve a convergence of interests on the issue.     

Economic analysis of the impact of adopting herd health control programs on smallholder dairy farms in Central Thailand

The economic impact of adopting herd health programs for mastitis and reproduction by small-scale dairy producers of Central Thailand was assessed using a policy analysis matrix (PAM). Following a reduction in the incidence of bovine disease on adopter farms, an increase in private net profits is observed. More importantly the social costs of supporting dairy farmers is reduced; the PAM effective protection coefficient was reduced by 35% for mastitis program adopters and by 44% for reproductive program adopters, indicating improved social efficiency of dairy policy. Other indicators of efficiency and policy implications are discussed.     

The New Economy is dead,long live the information economy

The arrival of the 2001–2003 recession caused many to suppose that the so-called “New Economy” was now defunct. This article addresses a number of related issues, including the question of the durability and viability of business cycles in the face of the technological developments of the information age. It asks what went wrong with the New Economy and examines its characteristics as well as its remaining possibilities and prospects for the future. Finally, it considers the spread of the Information Economy to Europe, especially to Germany, the country that one might expect to be the leading European player, but which is not at present actually a strong competitor for that role.