ACCRUAL ACCOUNTING REFORMS: ONLY FOR BUSINESSLIKE (PARTS OF) GOVERNMENTS

Based on governmental accounting experiences and on the rising criticism of accrual accounting, this paper proposes that accrual accounting in governments will only succeed in businesslike (parts of) governments in the coming years. This proposition leans on the inappropriate transfer of the accrual accounting framework from the profit sector, the underestimation of difficulties considering accrual budgeting and the lack of attention to the political dimension. This paper points out that the advocates of accrual accounting have neglected some important considerations.     

Upstream Competition between Vertically Integrated Firms

We propose a model of two‐tier competition between vertically integrated firms and unintegrated downstream firms. We show that, even when integrated firms compete in prices to offer a homogeneous input, the Bertrand logic may collapse, and the input may be priced above marginal cost in equilibrium. These partial foreclosure equilibria are more likely to exist when downstream competition is fierce or when unintegrated downstream competitors are relatively inefficient. We discuss the impact of several regulatory tools on the competitiveness of the wholesale market.     

“Generalized Pareto Fit to the Society of Actuaries’ Large Claims Database,” Ana C. Cebrián,Michel Denuit,and Philippe Lambert,July 2003

Abstract

We consider the issue of modeling the latent or hidden exposure occurring through either incomplete data or an unobserved underlying risk factor. We use the celebrated expectationmaximization (EM) algorithm as a convenient tool in detecting latent (unobserved) risks in finite mixture models of claim severity and in problems where data imputation is needed. We provide examples of applicability of the methodology based on real-life auto injury claim data and compare, when possible, the accuracy of our methods with that of standard techniques. Sample data and an EM algorithm program are included to allow readers to experiment with the EM methodology themselves.     

Price Premiums for Providing Eco‐labelled Seafood: Evidence from MSC‐certified Cod in Sweden

Eco‐labelled seafood is an important tool to promote sustainable development in fisheries. A price premium on eco‐labelled seafood signals a return on investment in sustainable fishing methods, providing an incentive for fishers to adopt such methods. This paper investigates whether Swedish fishermen gained a price premium from participating in the Marine Stewardship Council (MSC)‐certified Swedish Eastern Baltic cod fishery in the period 2011–2012. Using a detailed dataset of landing tickets and log books, we apply a panel data methodology to estimate the MSC price premium. We cannot find reliable evidence that the consumer level premium for MCS cod is actually passed back to the producers in this case.     

Behaviour of Retail Entrepreneurs

Retailers' goal attainmet is studied using a model consisting of relationships concerning the productivity of labour and floor-space. Evidence from large supermarkets shows that retailers concentrate on the maximising of the value of annual sales rather than on maximising annual profit.     

Quasi-longitudinal Designs in SEM state Space Modeling

The collection of longitudinal data over the full model time scope is often an appropriate way to estimate the dynamic state space model with time-varying parameters. Nevertheless, in many situations it is possible and preferable to collect and combine data from independent groups of subjects, each covering a shorter interval than the full dynamic model. Several quasi-longitudinal designs are discussed: overlapping designs (overlapping cohort design OCD and overlapping samples design OSD) as well as nonoverlapping designs up to the exclusively cross-sectional design. The use of the structural equation modeling (SEM) program Mx and continuous time state space modeling is recommended. Finally, a number of the quasi-longitudinal designs is empirically evaluated, comparing the results with those of the full-longitudinal design.     

Economic development, institutional change, and the political economy of agricultural protection An econometric study of Belgium since the 19th century

This empirical study uses 100 years of annual data on 11 agricultural commodities from Belgium to measure the impact of structural changes coinciding with economic development and changes in political institutions on agricultural protection. The analysis shows that changes in agricultural protection are caused by a combination of factors. Governments have increased protection and support to farmers when world market prices for their commodities fell, and vice versa, offsetting market effects on producer incomes. Other economic determinants were the share of the commodities in total consumer expenditures (negative effect) and in total output of the economy (positive effect). With Belgium a small economy, there was no impact of the trade position. Changes in political institutions have affected agricultural protection. Democratic reforms which induced a significant shift in the political balance towards agricultural interests, such as the introduction of the one‐man‐one‐vote system, led to an increase in agricultural protection. The integration of Belgian agricultural policies in the Common Agricultural Policy in 1968 coincided with an increase in protection, ceteris paribus. Both institutional factors, related to changes in access to and information about the decision‐making at the EU level, and structural changes in the agricultural and food economy may explain this effect.     

Financial crises and the asymmetric relation between returns on banks,risk factors,and other industry portfolio returns

We show that the relations between the returns on the banking industry, risk factors, and other industries often are asymmetric. Lagged banking industry returns seem to improve predictability but the positive impact of a 1‐month lag of the return on the banking portfolio is much higher in the lower part of the return distribution. However, after the Dodd‐Frank Act in 2010, the cross‐autocorrelation with banks is changed and becomes negative in the upper part of the distribution. Returns on banks also seem to lead returns on five risk factors. This relation, however, is not robust across the distribution.     

The development status of women in South Africa: Patterns and progress in the provinces

The development status of women in South Africa declined between 1996 and 2001. This study examined whether the decline was pervasive throughout the nine provinces, and whether any development patterns were apparent among the provinces. The findings revealed that women had lost ground across the board, both in absolute terms and relative to men. They also showed that certain ranking patterns prevailed among the nine provinces and, notably, that women in provinces with pre-existing poor development statuses may also be predisposed to a poor development status relative to men. This double burden may translate into a perpetuation of poverty for women who find themselves in these provinces.     

Legal Protection,Corruption and Private Equity Returns in Asia

Although trustworthiness has been described as a source of competitive advantage, its value extends to organizational governance and wealth creation. We identify the importance of the commitment–compliance continuum in the decision to trust and note that trustworthiness is a subjective perception viewed through each person’s mediating lens. That lens and each person’s interpretation of the social contract impact one’s commitment to cooperate. We suggest five propositions that integrate trustworthiness, governance, and wealth creation.