Congestion Caused by Speed Differences

This paper investigates road traffic congestion caused by speed differences using both analytical and numerical simulation models. Especially outside peak hours, speed differences are probably one of the most important reasons for congestion. Some main conclusions are that optimal tolls for slow vehicles are higher than those for fast drivers, that the marginal external costs and the optimal tolls for slow drivers are actually decreasing in the equilibrium number of slow drivers, and that “platooning” may become an attractive option especially when the desire for a low speed is caused by a lower value of time.     

What UIP tests on extreme samples reveal about the missing variable

In their UIP regressions, Huisman et al. (1998. Extreme support for uncovered interest parity, Journal for International Money and Finance 17, 211–228.) focus on extreme forward premia and find much higher coefficients. We show that, for such results, the expectation signal needs to be thicker-tailed than the missing variable. Transaction costs may produce the right sort of bias. It is (i) bounded (i.e. it has no tails at all), (ii) wide (i.e. it may generate betas below 1/2) and (iii) U-distributed, which makes an “extreme” sample quite effective. We derive theoretical and numerical results in the direction of what Huisman et al. observe. We also tighten Fama's moment conditions.     

Transport Infrastructure and Industrial Location: The Case of Thailand

This paper addresses the impact of transport infrastructure projects of manufacturing employment in Thai regions. After a theoretical review we consider the impact of various transport modes: road, rail and ports. We find that roads and ports have a positive impact on industrial location, although the size of the impact is modest. Labor appears to be a more important location factor in Thailand. For the analysis of the data, geographical information systems (GIS) appear to be a quite useful tool.     

Country v sector effects in equity returns and the roles of geographical and firm-size coverage

Since Roll (The Journal of Finance 47(1):3–41, 1992) and Heston and Rouwenhorst (Journal of Financial Economics 36:3–27, 1994), there has been a debate whether country factors in international stock returns are typically more variable than sector factors. The addition of emerging markets (EMs) does boost the ratio of country-factor variance relative to industry-factor variance: these markets have a higher variability, but are also less related to global factors. Investigating to what extent this phenomenon can be tracked down to the impact of adding more small firms, we find the following. (1) Small firms do have higher volatility, but only after controlling for country and sector affiliation. (2) Small firms do have weaker sector affinity, as expected. (3) Small firms unexpectedly have weaker local-market sensitivities than large firms. Facts (2) and (3) mean that adding more small firms to the data base has a diversifying effect on both the sector- and country-factor variance; while the impact on sector variance is larger, the net effect turns out to be tiny. (4) Adding emerging markets has a very marked impact on the variance ratio. In fact, the addition of small stocks to the sample hardly dents the effect of adding EMs. Thus, the role of EMs cannot be reduced to just a small-firm phenomenon.     

Evaluation in Design-Oriented Research

Design has been recognized for a long time both as art and as science. In the sixties of the previous century design-oriented research began to draw the attention of scientific researchers and methodologists, not only in technical engineering but also in the social sciences. However, a rather limited methodology for design-oriented research has been developed, especially as to the social sciences. In this article we introduce evaluation methodology and research methodology as a systematic input in the process of designing. A designing cycle is formulated with six stages, and for each of these stages operations, guidelines and criteria for evaluation are defined. All this may be used for a considerable improvement of the process and product of designing.     

Operation flood: impacts and issues

This article investigates whether Operation Flood - the Indian dairy programme supported by the WFP, the EEC and other international donor agencies - has achieved its objectives of enhancing dairy production in India while also offering poor and landless farmers a chance to participate in dairying. Detailed empirical work on the project did not confirm the grand claims made for Operation Flood as a success story of global significance. In particular, conclusions are highlighted with regard to Operation Flood's impact on India's dependency on foreign (EEC) deliveries of skim milk powder; India's domestic dairy production; the incomes of participating farmers; existing informal dairy production and marketing; the nutritional levels in rural areas; and the position of rural women. Various options for the future are outlined.     

Multi-objective programming models: New ways in regional decision-making

The article focuses on the use of multiple objective functions in regional decision-making. After a survey of various multi-objective programming models an interactive procedure for determining a best-compromise solution is discussed. The method is illustrated by means of an empirical application in the field of regional industrialization policy.     

CEO–CFO team optimism: Commercial real estate transactions and REIT performance

The managerial optimism literature concentrates on CEOs neglecting other executive team members. We evaluate the interplay of the optimism levels of the CEOs and CFOs of real estate investment trusts, and study their commercial real estate transactions. We find that firms led by optimistic CEO/CFO teams pay 3% more than their peers for their asset acquisitions if cash ratio increases by one percentage point. Our findings also exhibit inferior stock performance by optimistic teams following a transaction. Conversely, diversity in terms of CEO/CFO optimism prevents firms from overpaying, serving as a soft governance mechanism with salience to firm performance.