option value empirical evidence from a case study of recreation and water quality a procedure for measuring option value and other preservation values of water quality is developed and applied to a case study area in the south platte river basin colorado benefits from water based recreation activities are the focus of the study the results provide an empirical test and confirmation of weisbrod s proposal that option value and other preservation values represent important social benefits and should be added to the aggregate consumer surplus of recreation activities to determine the total benefit of environmental amenities to society in the absence of such an estimate insufficient resources would be allocated by society to preservation of unique environments such as pristine mountain streams where mineral and energy development may irreversibly degrade water quality

valuing option existence and bequest demands for wilderness to assess the relative importance of current costs and future benefits of nuclear waste storage we develop a simple model of bequest value the basic model of nonparternalistic altruism is extended to account for the uncertain nature of the externality

a welfare analysis of monopolistic r d abstract welfare analysis of monopolistic r d is considered in this paper the concept of reservation technology level as introduced in the economic literature is used a reservation technology level is defined as that technology level such that an r d decision maker is just indifferent between doing r d or not it is demonstrated that a monopolist is less persistent in r d search than a social welfare maximizer in the sense that a monopolist has a lower reservation technology level than a social welfare maximizer

patterns of research output and author concentration in the economics literature this study finds that a strong bibliometric regularity exists in the publication pattern in the economics literature the number of authors publishing n papers is approximately 1 n superscript c of those publishing one paper the economics literature conforms very well to the model with c 1 84 if data are taken from a large collection of journals when applied to individual journals the result shows that values of c range from 2 04 to 3 11 this paper also reports the degree of author concentration among leading economics journals finally this study finds that the graduates of three graduate programs account for more than half of the top 100 authors indicates strong institutional dominance in the production of the most prolific authors copyright 1991 by mit press

patterns of research productivity in the business ethics literature insights from analyses of bibliometric distributions in any academic discipline published articles in respective journals represent production units of scientific knowledge and bibliometric distributions reflect the patterns in such outputs across authors or producers closely following the analysis approach used for similar studies in the economics and finance literature we present the first study to examine whether there exists an empirical regularity in the bibliometric patterns of research productivity in the business ethics literature our results present strong evidence that there indeed exists a distinct empirical regularity it is the so called generalized lotka s law of scientific productivity pattern the number of authors publishing n papers is about 1 n c of those publishing one paper we discuss the likely processes that underlie the productivity pattern postulated by the generalized lotka s law we find that the value of the exponent c is equal to about 2 6 for the comprehensive bibliometric data across the two leading business ethics journals the observed research productivity pattern in the business ethics area a relatively young discipline is interestingly very consistent with those found in much older related business disciplines like economics accounting and finance we discuss the general implications of our findings

patterns of productivity in the finance literature a study of the bibliometric distributions this study finds a bibliometric regularity in the finance literature that the number of authors publishing n papers is about 1 nc of those publishing one paper we find that the finance literature conforms very well to the inverse square law c 2 if data are taken from a large collection of journals when applied to individual finance journals we find that values of c range from 1 95 to 3 26 we also find that top rated journals have higher concentrations among their contributors this implies that the phenomenon success breeds success is more common in higher quality publications it is frequently observed in bibliometric matters and in various social phenomena that success breeds success a frequently cited paper is more likely to be cited again than one little cited an author of many papers is more likely to publish again than one who has published little a journal which has been frequently consulted is more likely to be consulted again than one of previously infrequent use this is analogous to the folk saying the rich get richer and the poor get poorer lotka s law of scientific productivity is an example of such empirical laws lotka 1926 proposes an inverse square law relating authors of scientific papers to the number of papers written by each author specifically using data in the decennial index of chemical abstracts and in the name index of auerbach s geschichtstafeln der physik lotka plots the number of authors against the number of contributions made by each author on a logarithmic scale lotka finds that the points are closely scattered around a straight line having a slope of approximately negative two on the basis of this empirical observation lotka concludes the following in the cases examined it is found that the number of persons making 2 contributions is about one fourth of those making one the number making 3 contributions is about one ninth etc the number making n contributions is about 1 n2 of those making one and of all contributors the proportion that make a single contribution is about 60 percent thus lotka s empirical finding can be summarized by the equation an a1 n2 n 1 2 3 1

conjoint effect of environmental labeling disclosure of forest of origin and price on consumer preferences for wood products in the us and uk abstract a study that conjointly analyzed the effects of environmental labeling disclosure of forest of origin and price on consumer preferences for wood products was conducted in the us and the uk a choice based elicitation tool was used to mimic a real life situation where a single product was selected over a set of options data collected were analyzed using a conditional logit model certification issued by a government agency or an environmental non government organization both had a favorable effect on consumer preference over a non certified option the most relevant implication of our findings was the negative effect that disclosing information about a product coming from tropical forests had on consumer preferences even compared to a product of unknown origin a decline in product preference was observed along higher price premiums as expected the degree of sensitivity to price changes was affected by demographic characteristics model coefficients were used to estimate market shares of tropical wood products under different scenarios in both countries scenarios explored the effect of environmental certification and price premiums on product market shares

valuing environmental commodities some recent experiments a general model of consumer behavior is proposed to assess six recent experiments that have attempted to reveal preferences for environmental goals each experiment used a mix of both the techniques and the theory of demand for non market commodities and each was designed to estimate a non market attitude associated with the environment and to analyze potential biases in the techniques the six cases show some consistency in results the linkage within the contingent market between the environmental attribute institutional setting and the bidding instrument must be realistic and accepted by the respondent to avoid biased results possibly the most important result is the replication of results using a traditional property value study and a contingent bidding approach all evidence obtained to date suggests that hedonic studies of property values or wages travel costs and survey techniques all yield values well one order of magnitude in accuracy 41 references 2 tables

estimation of distance decay functions to account for substitution and spatial heterogeneity in stated preference research in a site selection choice experiment various hypotheses are tested related to spatial heterogeneity in willingness to pay wtp for environmental improvements spatial heterogeneity is measured through distance decay effects substitute sites inside and outside the experiment s choice set and spatial trend variables we demonstrate that distance decay functions differ between users and nonusers and across study sites also the distance to substitutes outside the choice set explains spatial variation in wtp we show that further extending the model with spatial trend variables reveals additional spatial heterogeneity in choices accounting for spatial heterogeneity patterns results in significantly different wtp estimates for environmental improvements jel q25 q51

nonmarket values of major resources in the korean dmz areas a test of distance decay the demilitarised zone dmz and its adjoining areas serve not only as a geopolitical buffering zone between north and south korea but also as rare refuges for various animals and plants this paper investigates conservation values of major dmz resources and comparatively tests distance decay between contingent valuation and choice modelling the overall conservation value for the dmz resources per person as one off payments was 9 06 or 34 97 respectively from the cvm and cm datasets research findings deny distance decay regardless of elicitation methods when the distance variable is parameterised as part of utility functions conversely a segmentation valuation approach demonstrates conflicting conclusions on distance decay and the wtp anomaly between users and non users depending on elicitation methods the cm results demonstrate that protection of the dmz resources might be less important and attractive to local populations than to those in the distant regions a direct cross method transfer of any distance effect might not be granted

on the reswitching property of r d existing theoretical models of research and development r d treat r d as a single economic activity once r d terminates the only way for the activity to resume is by assuming some exogenous changes in the basic parameters of the model e g the distribution of technological advances in contrast this paper treats r d as two unique but dependent economic activities a sequential r d search model is developed to establish three fundamental results first reswitching of r d is endogenized success in development may bring research back as the next optimal choice of action it is shown that the reswitching phenomenon of the dynamic process of r d is a result of optimal decision making second when the economic returns based on existing production technology are low compared to what is potentially feasible the immediate returns to development are high thus development is preferable to research as the level of economic returns increases due to development success the likelihood of further developmen

institutional contributions to the leading finance journals 1975 through 1986 a note in a recent issue of this journal heck cooley and hubbard 2 provided several rankings of finance departments the various rankings were based on publications in the journal of finance since 1946 the year in which the journal began publication separate rankings were generated for the leading institutions on the basis of source of doctorate and current employment the employer rankings were provided for the past forty years 1946 through 1985 and for several ten year subperiods 1946 through 1955 1956 through 1965 1966 through 1975 and 1976 through 1985 the work by heck cooley and hubbard builds on earlier contributions by klemkosky and tuttle 3 4 schweser 6 ederington 1 and moore and taylor 5 in their two papers klemkosky and tuttle measured the contributions to two groups of journals for the period 1966 through 1975 they included the volume of scholarship published in the three leading finance journals journal of finance journal of financial and quantitative analysis and journal of financial economics they also included the contributions to eight leading business and economics journals that publish finance and finance related articles journal of business journal of money credit and banking american economic review review of economics and statistics econometrica quarterly journal of economics journal of political economy and journal of monetary economics in their first paper klemkosky and tuttle 3 measured research performance according to the institutional source of publications in their follow up paper 4 they ranked programs on the basis of the publication output of doctoral students in a related paper schweser 6 analyzed the doctoral origins of contributions to the journal of finance for 1964 through 1975 ederington 1 prepared rankings of the top twenty departments based on total pages published in the journal of finance and journal of financial and quantitative analysis and citations in the social science citation index for works in these journals for the period 1967 through 1972 moore and taylor 5 tabulated the number of articles and pages published during 1972 through 1978 in fifteen leading journals in five academic areas of business including finance marketing management science behavioral management and general business for each area three journals were included and in finance the journals were the journal of finance journal of financial and quantitative analysis and financial management publication performance rankings were provided for all fields combined and for each discipline individually

characterizing the effects of valuation methodology in function based benefits transfer abstract meta analyses have demonstrated that willingness to pay wtp estimates vary systematically according to methodological factors the benefits transfer literature provides little guidance with regard to the treatment of such effects transfers are typically conducted by ignoring such effects using ad hoc adjustments or otherwise suppressing information regarding the sensitivity of wtp to methodological attributes this paper illustrates a means to characterize methodological effects within benefits transfer based on an application of the common bootstrap drawing from meta analysis the approach characterizes the sampling distribution of wtp with respect to patterns of methodological variation present in underlying studies results provide a means to characterize the extent of variation associated with predefined groups of methodological attributes providing transparent information on the sensitivity of wtp not typically available in benefits transfer

effect of distance on the preservation value of water quality in the past dozen years an extensive body of literature has developed on the willingness to pay for water quality in particular its recreation use and nonuse preservation values this paper illustrates a procedure for estimating the effect of distance on the preservation value of environmental quality using the contingent valuation approach the case considered is the potential degradation of water quality due to coal mining activity in the flathead river drainage system montana the analysis supports a negative association for this particular study area the effect of distance on preservation value was considered both directly and indirectly through its effect on visits 36 references 2 tables

the new approach to wilderness preservation through benefit cost analysis over the last 15 years economists of resources for the future led by john krutilla have been developing a new approach to wilderness preservation this paper offers a concise exposition of their approach and adds a few new steps the basic ingredient of the new approach is a perception of declining net benefits of wilderness development and rising net benefits of wilderness preservation over time these alter the entire shape of the benefit cost analysis of potential development the new steps involve reversibility postponability and recognition of multiple interest rates

a new paradigm for valuing non market goods using referendum data maximum likelihood estimation by censored logistic regression abstract this paper challenges the w m hanemann amer j agr econom 66 332 341 1984 and c sellar j p chavas and j r stoll j environ econom management 13 382 390 1986 utilizations of logit models to estimate the value of non market resources from referendum survey data these data are more informative than conventional choice data the random utility interpretation of logit models is therefore too restrictive bypassing the utility function entirely it will be shown that parameters and standard errors for utility theoretic inverse hicksian demand functions can be extracted directly and much more simply estimated demand functions need not be limited to those corresponding to the linear in parameters utility difference specifications which can be handled by packaged logit programs

adoption and diffusion of an innovation of uncertain profitability the argument has frequently been made that the pattern of diffusion associated with most new innovations will typically have certain characteristics a diffusion curve for an innovation is usually defined as the proportion of its potential users who have already adopted as a function of time measured from the first adoption many empirical studies by both economists and other social scientists have shown that diffusion curves nearly always have two distinct characteristics i they are s shaped the proportion adopted is an increasing function of time which is initially convex but eventually becomes concave and ii they tend to be right hand skewed the inflection point occurs at a time corresponding to a proportion adopted which is less than one half so that the function is concave over the greatest amount of time in fact this skewing is occasionally severe enough to make the diffusion curve appear concave everywhere the focus of most empirical studies of innovation diffusion has centered on identification of either the major determinants of the speed of diffusion or the characteristics of firms which determine how long they delay adoption the seminal contributions are griliches 6 study of hybrid corn and mansfield s 121 study of 12 industrial innovations these studies and most of the similar ones following conclude that diffusion is faster for innovations with higher profitability and that large firms tend to be the earliest adopters some studies e g mansfield 121 herregat 71 have attempted to ascertain

publish or perish what the competition is really doing this study provides comprehensive publications performance data over a twenty five year period for finance doctorates these data indicate that publishing one article per year in any finance journal or finance accounting economics or business journal over any prolonged period of time is a truly remarkable feat met by only 5 percent of the graduates tenure screens combining various quantity and quality requirements are examined to assess their ability to predict future publication productivity faculty and administrators seeking defensible benchmarks for evaluating faculty research productivity in finance will find that these data and results are particularly useful copyright 1992 by american finance association

the impact of journals and authors on international business research a citational analysis of jibs articles in this paper we use citational analysis to examine the influence of individuals and disciplines on international business research we collected citational data over the ten year period 1984 to 1993 from every issue of the journal of international business studies we found that management economics marketing and finance disciplines have had significant influence on international business research and identified researchers such as dunning porter vernon casson rugman and hofstede as having made significant contributions to international business research

differentiating use and nonuse values for coastal pond water quality improvements this paper measures the benefits of water quality improvements in three coastal ponds on the island of martha s vineyard massachusetts u s a use option and existence values were elicited from martha s vineyard property owners by the contingent valuation method on average more than half of the total benefits are attributed to existence value results from the heckman selection model show that the exclusion of protest as well as missing bids does not cause significant bias in estimating respondents willingness to pay socioeconomic characteristics are found to have distinctively different influences on use option and existence values different model parameters are likely to be estimated depending on which value categories are measured by a selected valuation technique these findings emphasize the importance of nonuse values from water quality improvements and of socioeconomic characteristics for measuring different categories of values

how large is the extent of the market for public goods evidence from a nationwide contingent valuation survey to assess the extent of the geographic area over which to sum vertically the public good benefits of removing two dams and restoring salmon populations households were surveyed throughout the us households were asked a dichotomouschoice contingent valuation question regarding their willingness to pay higher federal taxes for ten years to remove the dams and restore salmon populations while the distance from the site of the dam removal is statistically significant and negative in the logit willingness to pay equation benefits per household fall off slowly and the extent of the market is nationwide with a majority of households living outside the immediate area of the dam the rest of the us households reflect 97 of the national benefits for dam removal and salmon restoration this example suggests that failure to account for the national public good market can result in a serious underestimate of the value of public goods

enhanced geospatial validity for meta analysis and environmental benefit transfer an application to water quality improvements meta regression models are commonly used within benefit transfer to estimate willingness to pay wtp for environmental quality improvements theory suggests that these estimates should be sensitive to geospatial factors including resource scale market extent and the availability of substitutes and complements valuation meta regression models addressing the quantity of non market commodities sometimes incorporate spatial variables that proxy for a subset of these effects however meta analyses of wtp for environmental quality generally omit geospatial factors such as these leading to benefit transfers that are invariant to these factors this paper reports on a meta regression model for water quality benefit transfer that incorporates spatially explicit factors predicted by theory to influence wtp the metadata are drawn from stated preference studies that estimate per household wtp for water quality changes in united states water bodies and combine primary study information with extensive geospatial data from external sources results find that geospatial variables are associated with significant wtp variations as predicted by theory and that inclusion of these variables reduces transfer errors

valuing public goods a comparison of survey and hedonic approaches although the theory of public goods has progressed rapidly since paul samuelson s seminal article the empirical measurement of the value of demand for public goods only recently has received increased attention perhaps the best known and most widely accepted empirical approach has been the use of hedonic prices wherein for example it is assumed that either wages or housing values reflect spatial variation in public good characteristics of different communities this indirect approach based on theoretical work of charles tiebout kelvin lancaster sherwin rosen and others has proven quite successful among public goods or bads which have been valued using the hedonic approach are climate i hoch air pollution robert anderson and thomas crocker d harrison and d rubinfeld social infrastructure r cummings et al and other community characteristics such as noise level j nelson and ethnic composition ann schnare an alternative approach is to directly ask households or individuals to state their willingness to pay for public goods using survey techniques despite arguments that strategic bias will invalidate survey results there exists the need for an alternative to the hedonic approach as an example consider the case of a remote and unique scenic vista valuable to recreators which is threatened by air pollution from a proposed coal fired plant a typical situation in the western united states although it is possible in principle to impute the value of clean air and visibility from the relative decline in local visitation which might follow construction of a power plant information on the value of visibility at the site is needed prior to construction for socially optimal decision making on plant location and pollution control equipment the hedonic approach is unavailable both because the scarcity of local population as opposed to recreators makes use of wage or property value data impossible and because scenic vistas may themselves be unique for these reasons a randall et al first applied survey methods for valuing visibility and other environmental effects of large coal fired power plants in the four corners region of new mexico since this initial application the survey approach has been widely used to value environmental commodities where market data for hedonic analysis is difficult to acquire see for example brookshire ives and schulze rowe et al brookshire et al other early attempts to value public goods using the survey approach include r davis peter bohm and j hammack and g brown although results of using the survey approach for estimating the value of public goods appear to be internally consistent replicable and consistent with demand theory see schulze et al little work on external validation has been reported thus the purpose of this paper is to report on an experiment designed to validate the survey approach by direct comparison to a hedonic property value study the los angeles metropolitan area was chosen for the experiment because of the well defined air pollution problem and be assistant professor university of wyoming assistant professor university of missouri rolla associate professor university of wyoming and professor university of wyoming respectively the research reported here was funded under a grant methods development for assessing air pollution control benefits from the u s environmental protection agency we would like to give special thanks to alan carlin and shelby gerking for their helpful suggestions and contributions additional helpful comments were received from a myrick freeman iii john tschirhart and james murdoch all conclusions are of course our sole responsibility

a profit sharing scheme for a two firm joint venture consider the scenario when two firms are setting up a joint venture one firm has a set of technologies and knowhow for a new product while the other contributes the necessary capital for setting up and running the venture the key issue that the two firms face in negotiating the joint venture is to determine a fair value for the technologies and knowhow this paper presents an approach by which each firm bids a price for the technology with an objective to maximize their own profits from the joint venture provided that their bids satisfy a cooperation condition the two firms settle on a price using a simple valuation formula we analyze the impact of various factors on the decision process and provide numerical results to illustrate the bidding strategies we conclude that in order to maximize their profits it is often more important for both firms to increase the chance of cooperation than to increase their own shares of the joint venture

directional heterogeneity in wtp models for environmental valuation many studies in the stated preference literature on environmental valuation do not include the effects of substitutes and distance in willingness to pay wtp models in spite of the relevance of these effects in aggregation and benefit transfer heterogeneity in the availability of substitutes over space may cause multidirectional distance effects in wtp as a result disregarding this spatial heterogeneity may lead to biased estimators of the distance effect and associated wtp values cameron 2006 in this paper we demonstrate that distance decay is subject to significant directional effects which tend to be related to differences in the availability of substitutes across the study area we apply a straightforward methodology to account for such spatial heterogeneity in choice experiments and assess the effect on wtp for improvements in ecosystem services in a lake district we model distance decay effects whilst controlling for heterogeneity between users and non users and non use related wtp reasons the directional effects result in significantly different wtp estimates different market sizes reflecting the population with positive wtp and differences in total wtp up to 32

expected encounters and willingness to pay for outdoor recreation there is increasing interest in the management of natural resources for recreational activities much of it concerning the effect of crowding in outdoor recreation earlier work outlined models for estimating the effect of increased visitor contacts on individual willingness to pay for wilderness experiences cicchetti and smith 1973 others have looked at how crowding affects recreational resource valuation and criteria for the optimal management of recreational resources anderson and bonsor 1974 fisher and krutilla 1972 while the present paper is also concerned with the effect of visitor contacts on willingness to pay for outdoor recreation it differs from earlier work by looking at how individual willingness to travel is influenced by pre trip expectations of interparty encounters at the site we begin the paper by reviewing the related literature concerning user contacts and outdoor recreation the next section discusses the methods employed in this study and presents the empirical results based on data from the high peaks area of the adirondack mountains in new york state the final section discusses the results and our conclusions

journal communication and influence in financial research this article uses the articles and citations from a set of eight finance journals to explore interjournal citation patterns the research interests of individual journals each journal s influence in particular areas areas of recent interest to finance and the extent of interdisciplinary borrowing by finance we find the following two journals comprise the research core of finance research most journals publish in a variety of research areas but are influential in a smaller number a higher level of interest in financial markets than in corporate finance or financial institutions and an overall low level of borrowing from outside disciplines in this study we use journal publication and citation data to explore the communication of knowledge through journals such data are used in finance research by zivney and bertin 1992 chung and cox 1990 and heck and cooley 1988 among others to explore research productivity and by jensen et al 1990 to explore journal ratings most recently schwert 1993 employs such data in examining the influence of the journal of financial economics since its inception these types of data are also useful for investigating knowledge communication because they provide evidence of both transmission and reception of knowledge among journals the remainder of this article is organized to address the following three issues interjournal communication journal publication and influence across research areas and interdisicplinary borrowing in the first section we describe our data we study interjournal communications by examining the citation patterns of an eight journal set in section ii then in section iii we investigate journal publication and influence by categorizing each journal s articles by research area and by measuring the citation frequency of a journal s articles in individual research areas we also explore the areas of high overall publication interest in section iv we examine the level of interdisciplinary borrowing in finance by categorizing every citation of every article by discipline concluding remarks are in section v

self interest altruism and health risk reduction an economic analysis of voting behavior while classical economic theory suggests that the demand for private goods is motivated by economic self interest a growing body of literature suggests that the demand for public goods is driven both by self interest and by altruistic motives the political arena has been a major testing ground for this hypothesis recently a number of studies have tried to empirically isolate and determine the importance of economic versus ideological factors in explaining political choices by representatives kau and rubin 1979 peltzman 1984 kalt and zupan 1984 while congressional voting records have provided a rich source of data for empirical analysis a consensus opinion on the importance of self interest versus altruism has not been reached and remains controversial altruistic motivations have also been

on the joint decisions of r d and technology adoption this paper attempts to bridge the gap between r d models that do not consider technology adoption decisions and technology adoption models that do not consider r d decisions it develops and analyzes a decision theoretic model on the joint decisions of r d and technology adoption of a firm two interesting comparative statics results are obtained first an increase in the cost of r d reduces the incentive for a firm to do r d secondly an increase in the cost of technology adoption or an increase in the market interest rate reduces the incentive for a firm to adopt new technology and also reduces the incentive for a firm to do r d under certain conditions an increase in the cost of r d increases the incentive for a firm to adopt new technology

the role of knowledge in r d efficiency past research has recognized that both demand and capability influence the allocation of r d resources scholars have had an easier time getting a grip on demand than on capability while it has been recognized that knowledge is an important part of capability to date formalization of knowledge and its role in r d activity has been unsatisfactory this paper models the role of knowledge in r d various sources of such knowledge are considered the model throws a different light on analyses that employ a knowledge capital stock and also illuminates the dual private and public nature of technological knowledge