Empirical Bayes analysis of log-linear models for a generalized finite stationary Markov chain

This article presents the empirical Bayes method for estimation of the transition probabilities of a generalized finite stationary Markov chain whose ith state is a multi-way contingency table. We use a log-linear model to describe the relationship between factors in each state. The prior knowledge about the main effects and interactions will be described by a conjugate prior. Following the Bayesian paradigm, the Bayes and empirical Bayes estimators relative to various loss functions are obtained. These procedures are illustrated by a real example. Finally, asymptotic normality of the empirical Bayes estimators are established.     

Representational Approaches Matter

This paper raises the question of how ethical issues arising out of social inequities involving international business in developing countries can be represented, and articulates a conceptual framework that identifies and maps four different approaches to representing or making sense of such issues. A fieldwork-based case study on the child labor issue in Pakistan’s soccer ball industry illustrates the argument that representational practices do matter, and that when representational approaches go awry, they end up savaging the well-being of the poor in the developing world. Farzad Rafi Khan holds a Ph.D. in Management from McGill University. He is currently an Assistant Professor at the Suleman Dawood School of Business, Lahore University of Management Sciences, Pakistan.     

Pricing and managing risks of ruin contingent life annuities under regime switching variance gamma process

We propose a model for valuing ruin contingent life annuities under the regime-switching variance gamma process. The Esscher transform is employed to determine the equivalent martingale measure. The PIDE approach is adopted for the pricing formulation. Due to the path dependency of the payoff of the insurance product and the non-existence of a closed-form solution for the PIDE, the finite difference method is utilized to numerically calculate the value of the product. To highlight some practical features of the product, we present a numerical example. Finally, we examine numerically the performance of a simple hedging strategy by investigating the terminal distribution of hedging errors and the associated risk measures such as the value at risk and the expected shortfall. The impacts of the frequency of re-balancing the hedging portfolio on the quality of hedging are also discussed.     

A New Decision Making Model for Subcontractor Selection and Its Order Allocation

All experts agree on the importance of subcontracting. The high impact of subcontractors on the construction process means that the selection of subcontractors is a sensitive activity. Previous investigations documented the selection of subcontractors based on criteria but did not consider the number of subcontracted tasks. This paper explores allocating the best portion of tasks to subcontractors while optimizing the risk and cost in the fixed project schedule. The study's main finding demonstrates that subcontractor selection without attention to the order allocation is not a realistic approach; therefore, a hybrid model that applies continuous ant colony and fuzzy set theory is proposed.     

Financial integration faced with the crisis: comparative cases of Greece and Portugal

The recent economic and financial crisis affected many countries in the world in several aspects. Studies of crisis impacts on different aspects of economies would be useful to better understand the actions of each part faced with crisis, as well as the influences of each part on others. In the present research, we studied and compared the international financial integration level and its variations caused by the recent crisis for Greece and Portugal that are strongly affected. Using the Feldstein–Horioka thesis and applying ARDL model with error correction, we measured the financial integration level of these two countries. Also, using simulation, we verified how such a level can be changed by the crisis. We found that the Greece’s financial integration level is affected by the recent crisis, while this crisis has not affected the Portugal’s financial integration level. Moreover, the results for both cases were somehow considered as support for the Feldstein–Horioka initial hypothesis.     

Implications of biofuels mandates for the global livestock industry: a computable general equilibrium analysis

The rapid growth of biofuels production, particularly in the United States, the EU, and Brazil, has had important implications for the global livestock industry—both by raising the cost of feed grains and oilseeds and by forcing onto the market a large supply of biofuel by‐products, most of which end up in livestock feed rations. This article investigates the impact of an expanding biofuels industry on the mix and location of global livestock production. Surprisingly, we find that growth in the U.S. and EU biofuels industries results in larger absolute reductions in livestock production overseas than in those regions, due to the international transmission of grains prices which is offset locally by the lower cost of by‐products. We also find that nonruminant production is cut more than ruminant livestock, because it is less able to use biofuel by‐products in its feed rations. Implementing biofuel mandates increases cropland area, a large portion of which is estimated to come from reduced grazing lands. The biofuel producing regions are expected to reduce their coarse grains exports and increase imports of oilseeds and vegetable oils, while they increase their exports of processed feed materials. In sum, biofuel mandates have important consequences for livestock as well as crops, with net effects influenced by the important role of by‐products in substituting for feedstuffs.     

Employee appearance and the Americans with Disabilities Act: An emerging issue?

The recent passage of the Americans with Disabilities Act (ADA), considered the most far-reaching civil rights legislation since the Civil Rights Act of 1964, promises to raise demanding new challenges for employers. This article alerts readers to one example of what may prove to be a long list of unanticipated, but potentially onerous, repercussions from this legislation. Specifically discussed is the role of the ADA in the likely emergence of the issue of employee physical appearance. In addition to the role of the ADA, we explain how other legal forces, as well as organizational and economic forces, may propel physical appearances to the level of a formidable social issue.An earlier draft of this paper was presented as a symposium at the 1989 Employee Responsibilities and Rights Conference, Orlando.     

Welfare Impacts of Alternative Public Policies for Agricultural Pollution Control in an Open Economy: A General Equilibrium Framework

A general equilibrium approach is used to evaluate the welfare impacts of alternative policies for reducing agricultural pollution in an open economy with preexisting distortions caused by income taxes and agricultural subsidies. The policies examined here include the removal of distortionary agricultural subsidies. We find that even though these distortions are small compared to others in the economy, removing them and imposing nitrogen reduction subsidies and/or output taxes can enhance welfare and reduce nitrogen pollution; thereby leading to a substantial double dividend. The relative efficiency of the alternative policies examined here depends on the level of the nitrogen reduction target.     

Implementing a model for identifying organizational complications for the purpose of increasing productivity in hydropower plant

The present economical conditions on today＇s world require specific point of view and policy making in business agencies. In this competitive world to achieve competence, competitive advantages in order to better governance, organizations have to increase their competitive powers through promotion and productivity. One of the fundamental approaches to elevate the productivity level is finding the complications and obstacles, and arise planning to remove them. In order to understand organizational complication, we have tried to take critical factors of success and continue improvement into consideration to demonstrate a model to find the main and radical problems and complications and recognize the recoverable areas in the business agencies. In order to verify and validate the performed research, he planned model has been accomplished in the Hydropower Plant Department, positive and acceptable results were obtained and organizations total factor productivity improvement was achieved which was appreciated by the organization.