Human capital inequality and income inequality: testing for causality

This study investigates the causal relationship between human capital inequality and income inequality in case of Pakistan. The annual time series data ranging from 1973 to 2009 is used for econometric analysis. Johanson co-integration and Granger Causality tests are used to confirm the existence of long run relationship and the causal relationship between human capital inequality and income inequality. The results indicate that there is positive relationship between the two types of inequalities in the long run. The estimates of causality test indicate that income inequality causes the human capital inequality but human capital inequality does not cause income inequality. Policy initiatives to reduce income inequality may empower people economically to avail skill building opportunities and accumulate their human capital through access to educational services.     

Family networks and school enrolment: Evidence from a randomized social experiment

We present evidence on whether and how a household's behavior is influenced by the presence and characteristics of its extended family. Using data from the PROGRESA program in Mexico, we exploit information on the paternal and maternal surnames of heads and spouses in conjunction with the Spanish naming convention to identify the inter- and intra-generational family links of each household to others in the same village. We then exploit the randomized research design of the PROGRESA evaluation data to identify whether the treatment effects of PROGRESA transfers on secondary school enrolment vary according to the characteristics of extended family. We find PROGRESA only raises secondary enrolment among households that are embedded in a family network. Eligible but isolated households do not respond. The mechanism through which the extended family influences household schooling choices is the redistribution of resources within the family network from eligibles that receive de facto unconditional cash transfers from PROGRESA, towards eligibles on the margin of enrolling children into secondary school.     

Herding behaviour and the declining value relevance of accounting information: evidence from an emerging stock market

This article sheds light on the underlying mechanisms behind the changes in the value relevance of accounting information in the Karachi Stock Exchange (KSE) during the 1999–2010 period. We find that neither changes in earnings quality nor the earnings lack of timeliness hypothesis can explain the decline in the value relevance of accounting information in the KSE. Based on the stylized facts associated with the growth of the KSE and the broader economics literature, we argue that the reduction in the explanatory power of accounting information vis-à-vis stock returns was caused by herding behaviour. Empirical estimates from state-space model of herding behaviour confirm the existence of herding, and we find that the value relevance of accounting information is significantly lower in periods characterized by herding behaviour. This article is also amongst the first attempts to empirically demonstrate that an expansionary monetary policy and increases in foreign portfolio investment lead to increased levels of herding.     

The Effects of Alternative Methods of Crow Benefit Payment on Economic Rents of Farm Input Suppliers in Western Canada

This paper uses a multi-market partial equilibrium model to assess the impact of selected alternative methods of payment of the Crow Benefit on the economic welfare of farm input suppliers for the feed grain sector in western Canada. the model is calibrated using data representative of the period from 1986 to 1988. Inputs are grouped into categories of land, labor, machinery and buildings, and other purchased inputs. Impacts of alternative policy regimes are found to differ substantially by the characteristics of the particular policy proposal and also by the nature of the input in question. Input suppliers would be worse off under the method of payment embodied in the so-called Gilson, 50:50 and Agricultural Diversification Alliance proposals, but would be better off under the Grain Trasportation Refund plan. Adverse impacts on landowne welfare, measured as percentage change in economic rents received, would be larger than the effects on other input suppliers, in some cases exceeding 10% of the rents received under the status quo. L'étude utilise un modèle multi-marchéàéquilibre partiel pour évaluer les incidences de diverses méthodes de paiement du montant compensatoire du Nid-de-Corbeau sur la situation économique des agrofournisseurs du secteur des céréles de provendes dans l'ouest du Canads. Le modèle est étalonné au moyen de données représentatives d'une période allant de 1986 à 1988. Les intrants sont groupés en catégories: fonds de terre, main-d'oeuvre, machinerie et bâtiments et autres fournitures achetées. Les effets des divers régimes diffèrent sensiblement par les caractères du projet do politique et aussi par la nature des intrants en question. La situation des fournisseurs serait empirée si l'on emploie la méthode de paicment comprise dans les programmes Gilson, 50:50 et Agricultural Diversification Alliance, mais elle serait meilleure avec le plan de remboursement sur le transport du grain. Les effets négatifs sur la situation des propriétaires de terre, mesurés par le changement en pourcentage du loiyer économique reçu, étaient plus importants que les effets sur les autres catégories d'agrofournisseurs, dépassant parfois 10% du loye reçu dans le régime actuel.     

Is television advertising being placed to reach product users?

Several textbooks, journal articles, and advertising practitioners indicate that the advertising for many products should be directed toward the heavy users of the product category. Other works suggest that advertising should be directed at current users of a brand to retain them or to users of competitive brands in an effort to attract them. The purpose of this article is to compare these directions for how advertising should be placed with data showing how advertising is being placed. The comparison is made using supermarket scanner panel data and household advertising exposure data. Examples are also provided to indicate the extent to which advertising could be targeted to heavy users of the product category and users of a brand, given the actual viewing and consumption patterns. Several implications for the placement of advertising are discussed.     

Focusing on white space to improve patient throughput

When designing a new patient care process or modifying an existing one, healthcare leaders should: Set specific goals for frontline staff, Move beyond gathering and discussing data to acting on the data, Issue data reports frequently, Prepare to take advantage of success, Do not expect a silver bullet.     

Tree‐Based Intercropping in Southern Ontario,Canada

Tree‐based intercropping (TBI) integrates tree production within annual grain cropping. The system is widely used in tropical regions, but is not common in temperate regions. This study evaluates the annualized return from TBI systems in southern Ontario, Canada against annual grain crop production. The TBI systems include hybrid poplar, Norway spruce, and red oak. The annualized return for all TBI systems is less than for annual cropping using the base prices; however, when tree prices are high and grain prices low the hybrid poplar TBI system has a higher return than annual cropping. Grants for planting trees, technologies to reduce the cost of establishing and maintaining trees, and improving the returns from tree production will be required for producers in temperate regions to adopt TBI systems. Un système de cultures intercalaires (SCI) intègre la production d’arbres dans la culture annuelle de céréales. Ce système est largement utilisé dans les régions tropicales, mais peu courant dans les régions tempérées. La présente étude évalue le rendement annualisé des SCI dans le sud de l’Ontario, au Canada, par rapport à celui de la production annuelle de céréales. Les SCI intègrent le peuplier hybride, l’épinette de Norvège et le chêne rouge. Le rendement annualisé des SCI est inférieur à celui des cultures annuelles si l’on utilise les prix de référence. Toutefois, lorsque les prix des arbres sont élevés et que les prix des céréales sont faibles, le SCI qui intègre le peuplier hybride obtient un rendement supérieur à celui des cultures annuelles. Pour que les agriculteurs des régions tempérées adoptent les SCI, il faudra offrir des subventions à la plantation d’arbres, offrir des technologies qui permettront de réduire les coûts de plantation et d’entretien des arbres et améliorer les rendements/revenus de la production d’arbres.     

Empirical performance of alternative pricing models of currency options

This article examines the out‐of‐sample pricing performance and biases of the Heston’s stochastic volatility and modified Black‐Scholes option pricing models in valuing European currency call options written on British pound. The modified Black‐Scholes model with daily‐revised implied volatilities performs as well as the stochastic volatility model in the aggregate sample. Both models provide close and similar correspondence to actual prices for options trading near‐ or at‐the‐money. The prices generated from the stochastic volatility model are subject to fewer and weaker aggregate pricing biases than are the prices from the modified Black‐Scholes model. Thus, the stochastic volatility model may provide improved estimates of the measures of option price sensitivities to key option parameters that may lead to more effective hedging and speculative strategies using currency options. © 2000 John Wiley & Sons, Inc. Jrl Fut Mark 20:265–291, 2000     

Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?

This study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth, exports and currency devaluation in energy demand function for the case of Pakistan. The long-run and short-run effects are examined via ARDL bounds testing procedure. Foreign capital inflows and currency devaluation (economic growth and exports) decrease (increase) energy consumption in long-run. The results confirm a feedback effect between foreign capital inflows and energy consumption. These findings would be helpful to policy makers in designing comprehensive economic and energy policies for utilizing foreign capital inflows as a tool for optimal use of energy sources to enhance economic development in long run.     

Supplier evaluation in the context of circular economy: A forward step for resilient business and environment concern

Resource depletion is a concern for the global economy; many think that available resources on the planet will not be able to cater to an ever-growing population. Thus, economies are trying to become circular, leaving behind the linear tradition linear approach. In the circular economy (CE), physical resources and energy are made to loop back into the supply chain (SC) for a more extended period. Proper selection of suppliers is an essential criterion towards proper execution of the CE principle in SC. In this research, we have constructed a framework for evaluating the supplier concerning the CE implementation. Further, this research identifies the criterion and sub-criterion, which are pertinent for evaluating the supplier in CE context. Fuzzy-based ‘Criteria Importance Through Inter-Criteria Correlation (CRITIC)’ method is justifiably applied to determine the aggregated weights of the criteria. Finally, ‘Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)’ method is used to determine the suppliers' ranking in the Indian automobile industry. Six criteria and 24 sub-criteria are obtained as per recent literature and then inputs from experts. ‘Environment’ criterion came out as the most favourable criterion with a subjective weight of 0.230. The current research is one of the first such attempts to provide criteria for supplier selection in a CE environment. The developed framework would help organisations in implementing CE-based supplier selection. The identified criteria and sub-criteria would provide organisations with means to evaluate suppliers and help suppliers develop an effective and efficient CE based on the SC.