Arithmetic versus geometric mean estimators: Setting discount rates for capital budgeting

This paper addresses an issue central to the estimation of discount rates for capital budgeting: should the geometric mean or arithmetic mean of past data be used when estimating the discount rate? the use of the arithmetic mean ignores estimation error and serial correlation in returns. Unbiased discount factors have been derived that correct for both these effects. In all cases, the corrected discount rates are closer to the arithmetic than the geometric mean.     

Using data envelopment analysis to measure the efficiency of not-for-profit organizations: A critical evaluation—comment

This note responds to Nunamaker (1985) who supposedly deals with deficiencies in Data Envelopment Analysis (DEA) as an approach for (1) measuring efficiencies of not-for-profit entities identified as Decision Making Units (DMUs) and (2) locating sources and amounts of inefficiencies in each of the inputs used and in each of the outputs produced by each DMU. Corrections and comments are offered with references supplied for interested readers who wish to examine more detailed treatments of the topics covered.     

Auditing and accounting for program efficiency and management efficiency in not-for-profit entities

A measure of efficiency for not-for-profit entities - developed by the authors in association with Edward Rhodes - is explained and illustrated by data from Program Follow Through, a large scale social experiment in U.S. public school education. A division into Follow Through and Non-Follow Through participants facilitates a distinction between “program efficiency” and “managerial efficiency” which is also illustrated and examined for its use in evaluating such programs. Relations to comprehensive audits and other possible uses are explored.     

A multiplicative model for efficiency analysis

This paper develops theory and algorithms for a “multiplicative” Data Envelopment Analysis (DEA) model employing virtual outputs and inputs as does the CCR ratio method for efficiency analysis. The frontier production function results here are of piecewise log-linear rather than piecewise linear form.     

The integration of a logistical decision-making framework into nonprofit marketing

Marketing practitioners in for-profit-making settings are typically well acquainted with what logistical decisions can do for a marketing program and what marketing constraints can do to a logistics system. For the most part, however, the conceptual tansfer from a product-oriented firm to a service-producing organization has been lacking and obviously not made in non-profit marketing situations. This paper examines these areas and presents a creative expansion of the logistics decision-making area into nonprofit marketing. Hopefully, this setting will encourage others to investigate non-profit areas and, in particular, the interrelationships involved in the logistics area.     

Applying Ethics to the Tourism Industry

The world's largest industry has received little ethical attention, yet it raises questions of consumer fairness, marketing and environmental and cultural integrity. The author has recently gained an MSc in Tourism Studies from the University of Surrey, and is currently working as an independent consultant in the tourism and leisure sector.