The Effect of Endogenous Regulation on Telecommunications Expansion and Efficiency in Latin America

I examine the effect of reform on telecom performance using a second-generation regulatory framework index and panel data techniques to test how regulatory governance affected sector performance in 22 Latin American countries during the period 1980–1997. Sound regulatory governance in telecommunications has a positive impact on network expansion and efficiency, in both the static and dynamic specifications. Openness of markets to competition and divestment of former state-owned telco operators also contributed positively to better sector performance. The dynamic specification shows that past performance has its own strong effect on present (and perhaps future) performance.     

Repositioning the urban environment question in Zimbabwe: a review of the context,conditions and processes

This analysis is a reappraisal of two perspectives in urban development in Zimbabwe: environmental sustainability and human sustenance. The discussion seeks to reposition the conservation–survival debate by broadening it to the wider urban and national macroeconomic and sociopolitical context. It re‐examines Zimbabwe's environmental problems by examining the challenges posed by urbanisation, industrialisation and informalisation. To these ‘permanent’ strands are added the ‘transient’ phenomena of structural adjustment and indigenisation. The analysis is done within the overall national macroeconomic and sociopolitical environment. The article examines environmental sustainability and human sustenance as the two policy challenges that have to be reconciled in the quest for sustainable urban settlements in Zimbabwe. The analysis stresses that the exercise of striking a balance between the needs of humankind and those of nature has to take cognisance of the complexity of issues and the processes going on elsewhere in the urban and national context.     

Biotechnology: the emerging battlefield for US and Japanese pharmaceutical companies

The Japanese pharmaceutical industry has lagged behind the US in developing and marhting innovative new compounh. A gap anabsis rebing on international publication and patenting stahtics as well as market survgs shows that the US is the clear leader in biophannaceuticals. Recent Japanese public and private efforts to close the gap have posed no immediate threat to US pharmaceutical companies. The conflict over industrial policy among the ministries involved will take some time to be resolved. However, information networking activities and cross-border technology linkages of Japanese companies should not be underestimated. Biotechnology is current4 transforming theJapanese pharmaceutical induse, and the US will have to deal with a gowing Japanese challenge in the long run. Preventive US counter-measures should include investments in in-house biotechnology research, acquisitions of smaller biotechnology start-up ventures, global commercialization o f biophannaceuticals, and proactive management o f technology linkages with Japanese companies.     

Risk-taking incentives of executive stock options and the asset substitution problem

Various theoretical models show that managerial compensation schemes can reduce the distortionary effects of financial leverage. There is mixed evidence as to whether highly levered firms offer less stock‐based compensation, a common prediction of such models. Both the theoretical and empirical research, however, have overlooked the leverage provided by executive stock options. In principle, adjusting the exercise prices of executive stock options can mitigate the risk incentive effects of financial leverage. We show that the near‐universal practice of setting option exercise prices near the prevailing stock price at the date of grant effectively undoes most of the effects of financial leverage. In a large cross‐sectional sample of Canadian option‐granting firms, we find evidence that executives' incentives to take equity risk are negatively rather than positively related to the leverage of their employers.     

‘Gay Enclaves Face Prospect of Being PassÉ': How Assimilation Affects the Spatial Expressions of Sexuality in the United States

Journalists, activists and academics alike predict that gay neighborhoods in the United States will disappear, yet many of their claims are unsubstantiated or overly determined by economic factors. This article examines 40 years of media accounts to identify the mechanisms that explain why these urban areas are changing. I begin with the observation that the rate of assimilation of sexual minorities into mainstream society has accelerated in today's so‐called ‘post‐gay' era. Assimilation expands the residential imagination of gays and lesbians beyond the boundaries of a specific neighborhood to the entire city itself. Furthermore, as sexual orientation recedes in centrality in everyday life, residents opine that few care if a person self‐identifies as gay or straight. These two respective mechanisms of expansion and cultural sameness bring existing economic wisdom into dialogue with a cultural and political perspective about how our shifting understandings of sexuality also affect the decisions we make about where to live and socialize.     

Bayesian and Bühlmann credibility for phase-type distributions with a univariate risk parameter

Credibility theory is a statistical tool to calculate the premium for the next period based on past claims experience and the manual rate. Each contract is characterized by a risk parameter. A phase-type (or PH) random variable, which is defined as the time until absorption in a continuous-time Markov chain, is fully characterized by two sets of parameters from that Markov chain: the initial probability vector and transition intensity matrix. In this article, we identify an interpretable univariate risk parameter from amongst the many candidate parameters, by means of uniformization. The resulting density form is then expressed as an infinite mixture of Erlang distributions. These results are used to obtain a tractable likelihood function by a recursive formula. Then the best estimator for the next premium, i.e. the Bayesian premium, as well as its approximation by the Bühlmann credibility premium are calculated. Finally, actuarial calculations for the Bühlmann and Bayesian premiums are investigated in the context of a gamma prior, and illustrated by simulated data in a series of examples.     

New development: The conceptual underpinnings of international public sector accounting

The conceptual underpinnings of accounting standards are potentially very important for the future of public sector accounting internationally. The authors explain why and comment on the implications for public sector accounting.     

Measuring Production and Irrigation Efficiencies of Rice Farms: Evidence from the Punjab Province,Pakistan

We employ a non‐parametric approach, data envelopment analysis, to estimate the technical and irrigation efficiency of rice farms in the Punjab Province of Pakistan. We use a cross‐sectional dataset of 80 rice growers, including 45 tube‐well owners and 35 water buyers. Mean technical efficiency scores show that tube‐well owners and water buyers are operating at fairly high efficiency levels, indicating that access to technology is not a major constraint. However, irrigation inefficiency is pronounced, with water buyers being more inefficient than tube‐well owners. A bootstrap truncated regression is used to investigate the determinants of technical and irrigation efficiency. We suggest that groundwater management policies should be designed to address efficiency enhancing factors such as knowledge of crop water consumption requirement, better credit opportunities, outreach extension services and training programs.