bluuebunny/crossref_metadata_2025_split huggingface dataset:
Welfare Losses Due to Market Power: Hicksian versus Marshallian Measurement
Authors: Lavergne Pascal , Réquillart Vincent , Simioni Michel 
Published: March 2003

AbstractThis paper warns against the use of Marshallian welfare loss in applied analysis of market power. We show how to compute the Hicksian deadweight loss from an ordinary demand. Then, from an experiment using real data on twenty‐one sectors of the French food industry, we find that the Marshallian deadweight loss poorly approximates the exact Hicksian measure. Hence, it is advisable to use the latter in applied welfare analysis.
Capturing Experts' Uncertainty in Welfare Analysis: An Application to Organophosphate use Regulation in U.S. Apple Production
Authors: Roosen Jutta , Hennessy David A. 
Published: March 2003

AbstractThe use of organophosphate insecticides in apple production has become of regulatory concern since the Food Quality Protection Act passed into law in 1996. Through an expert opinion survey, we assess the economic impact of possible regulatory scenarios on the apple industry. Because experts are unsure of the impacts, we ask them for distributions of impacts to explicitly capture the uncertainty they face. We apply Bayesian methods to aggregate these distributions. Welfare impact distributions for different policy scenarios are estimated and ordered using a nonparametric test for stochastic ordering of probability distributions to facilitate policy decision making.
Agriculture and Ecosystem Restoration in South Florida: Assessing Trade‐Offs from Water‐Retention Development in the Everglades Agricultural Area
Authors: Aillery Marcel , Shoemaker Robbin , Caswell Margriet 
Published: March 2003

AbstractAgricultural production decisions can affect ecosystem function and environmental quality. Environmental restoration policies can, in turn, affect the profitability of the agricultural sector. A dynamic model of agricultural production, soil loss, and water retention in the Everglades Agricultural Area is developed to assess agricultural impacts under alternative water policy and land acquisition scenarios.
U.S. Trade Policy on Lamb Meat: Who Gets Fleeced?
Authors: Paarlberg Philip L. , Lee John G. 
Published: March 2003

AbstractThe U.S. lamb meat industry received protection from import competition in 1999 with a tariff‐rate quota. This paper analyzes proposed and adopted policies using a partial equilibrium model of lamb meat and lambs incorporating imperfect competition in the packing industry. Under a tariff policy packers can only exercise oligopsony power in the lamb market and both packers and lamb growers benefit from protection. If a quota or tariff‐rate quota policy is used, packers can assert oligopoly power. Packers benefit from protection, but lamb growers may not. Under the tariff‐rate quota adopted, lamb growers suffer a welfare loss.
Unconditional Elasticities in Two‐Stage Demand Systems: An Approximate Solution
Authors: Carpentier Alain , Guyomard Hervé 
Published: March 2003

AbstractTwo‐stage budgeting postulates that the consumer's utility maximization decision can be decomposed into two steps. In the first stage, total expenditure is allocated over broad groups of goods. In the second stage, group expenditures are allocated over elementary commodities. In this article, we assume that the current weighted true cost‐of‐living price indices defined for each broad group of elementary commodities vary only very slightly with sub‐utility levels. Hence, it is possible to approximate the first stage of a two‐stage budgeting structure by a maximization problem involving a single price index and a single quantity index for each of the broad groups. Relationships between conditional and unconditional expenditure and price elasticities are derived within this context.
Price Behavior in a Dynamic Oligopsony: Washington Processing Potatoes
Authors: Richards Timothy J. , Patterson Paul M. , Acharya Ram N. 
Published: March 2003

AbstractPunishment strategies are necessary to sustain a collusive oligopsony in a repeated game context when demand is uncertain and only market variables are observable. This article proposes a test for tacit collusion among potato processors in Washington state using a dynamic regime‐switching model estimated with a finite mixture method. The results support the existence of punishment and collusive regimes and show the welfare losses due to anti‐competitive behavior on the part of processors to be significant. Processors' oligopsony power is enhanced by higher domestic production, imports, and existing stocks, but it is ameliorated by high capacity utilization rates and exports.
Dynamic Supply Response and Welfare Effects of Technological Change on Perennial Crops: The Case of Cocoa in Malaysia
Authors: Gotsch Nikolaus , Burger Kees 
Published: March 2003

AbstractModern biotechnology will generate crops with higher yields and enhanced resistance to pests and diseases. In the case of perennial crops, the age composition of the present stand, the farmers' willingness to invest, and the yield profiles of old and new trees determine the speed of adoption of the new technology and the timing of the effects on supply and demand conditions. We adapt conventional welfare measures to account for these factors in the assessment of research induced supply shifts. The application to cocoa in Malaysia shows that consumers and adopting producers gain and non‐adopters lose. Overall, 72% of the welfare gains go to the consumers.
Least Squares and Entropy: A Penalty Function Perspective
Authors: Preckel Paul V. 
Published: March 2003

AbstractMathematical measures of entropy as defined by Shannon and cross entropy as defined by Kullback and Leibler are currently in vogue in the field of econometrics, primarily due to the comprehensive work of Golan, Judge, and Miller. An alternative interpretation of the entropy measure as a penalty function over deviations is presented, and a number of parallels are drawn with least squares estimators. It is demonstrated that both approaches may be applied to the general linear model. The causes of differences in estimated parameter values are described, and some suggestions for the formulation of entropy‐based econometric problems are presented.
A Hotelling‐Faustmann Explanation of the Structure of Christmas Tree Prices
Authors: Vukina Tomislav , Hilmer Christiana E. , Lueck Dean 
Published: March 2003

AbstractWe examine the relationship between a tree price and a tree age (height) using a Hotelling‐Faustmann type model of optimal plantation management, which accounts for the possibility of replanting and biological growth. The model predictions are tested using the data on Christmas tree prices in North Carolina collected in December 1997. The estimates show that, in general, the rates of change in prices between adjacent age cohorts reflect a competitive equilibrium in the capital market thus supporting the Hotelling‐Faustmann paradigm.
In‐Store Valuation of Steak Tenderness
Authors: Lusk Jayson L. , Fox John A. , Schroeder Ted C. , Mintert James , Koohmaraie Mohammad 
Published: March 2003

AbstractExperimental methods were used to examine consumer willingness‐to‐pay for steak tenderness in a grocery store setting. When relying on a taste test alone to determine product quality, the participants paid an average premium of $‐1.23/lb for a tender versus tough steak. Fifty‐one percent of the participants were willing to pay an average of $‐1.84/lb when they had completed a taste test and were also provided information about the steak's tenderness. Results indicate that most consumers prefer more tender steaks and that many are willing to pay a premium for tender steaks.
Assessing the Financial Performance of Forestry‐Related Investment Vehicles: Capital Asset Pricing Model vs. Arbitrage Pricing Theory
Authors: Sun Changyou , Zhang Daowei 
Published: March 2003

AbstractCapital asset pricing model (CAPM) and arbitrage pricing theory (APT) are used to assess the financial performance of eight forestry‐related investment vehicles. Although results from APT support previous findings from CAPM about timberland investments, three bodies of evidence show that APT findings are more robust. The major conclusions are (a) institutional timberland investments and timberland limited partnerships have a low risk level and excess returns; (b) forestry industry companies have not earned risk‐adjusted returns, and the performance of medium forest industry firms is worse than that of large firms; (c) stumpage price does not resemble the return generation process of timberland investments; and (d) lumber futures have little excess return.
Economies of Scale and Inefficiency in County Extension Councils: A Case for Consolidation?
Authors: Garrett Thomas A. 
Published: March 2003

AbstractCurrent funding, mission, and organizational difficulties question the long‐run survival of extension and the Land‐Grant system. Consolidation of county extension offices is seen as a possible remedy for extension's problems. This paper estimates scale economies and inefficiencies in county extension offices in Kansas using parametric and nonparametric techniques. Large economies of scale and inefficiencies are found. Based on the empirical results, several simulations are performed to measure the short‐run cost savings associated with consolidation. The results reveal that while all counties would experience significant savings from consolidating, rural and less populated counties would experience the greatest per unit savings.
The Food Stamp Program and Food Insufficiency
Authors: Gundersen Craig , Oliveira Victor 
Published: March 2003

AbstractFood stamp participants have higher food insufficiency rates than eligible nonparticipants, even after controlling for other factors. Given the Food Stamp Program's prominent role in the alleviation of hunger, this is a counterintuitive result. We conjecture that these higher rates are due to adverse selection insofar as households more likely to be food insufficient are also more likely to receive food stamps. We establish a theoretical framework to address this adverse selection. Using a simultaneous equation model with two probits, we show that once one controls for this adverse selection, food stamp recipients have the same probability of food insufficiency as nonrecipients.
Optimal Production Tax and Quota under Time Consistent Trade Policies
Authors: Gervais Jean‐Philippe , Lapan Harvey E. 
Published: March 2003

AbstractThis article investigates the policy active importers' incentives and welfare implications of using production and trade policies in a dynamic framework where production decisions occur before consumption decisions. We show that the equilibrium for production taxes and quotas are not equivalent, and that each equilibrium depends on whether the trade policy instruments are tariffs or quotas. Under import quotas, the equilibrium policy is to tax domestic production, whereas under a tariff either a production tax or subsidy may be optimal. We also show that a collective agreement to ban production policies is likely to be welfare‐improving in many circumstances.
Fixed Costs, Efficient Resource Management, and Conservation
Authors: Zhao Jinhua , Zilberman David 
Published: March 2003

AbstractThis article develops a framework to analyze the impacts on resource development of efficient management practices that account for possible resource conserving technological changes. Compared with the traditional management practice ignoring these changes, efficient management may not delay or reduce resource development, depending on the level of the changes. Under efficient management, a higher probability of resource conserving technologies may not delay or reduce resource development. These ambiguities are due to the existence of fixed and increasing marginal costs in resource development.
Recycled Effluent: Should the Polluter Pay?
Authors: Feinerman Eli , Plessner Yakir , DiSegni Eshel Dafna M. 
Published: March 2003

AbstractA coastal city can either dispose of recycled effluent by dumping it in the sea, or transfer it to farmers in its hinterland for irrigation. Who should bear the cost of recycling? Three alternatives are employed: a central planner who maximizes the combined utility of city and farmers; regulation by prices, for which purpose we develop the city's supply function;and a bargaining framework for the allocation of costs. The main conclusions are that “the polluter pays” rule cannot be justified in principle and that bargaining may result in inefficiency. We demonstrate with an example from Israel that essentially conforms to the theoretical structure.
Regulating Broiler Contracts: Tournaments Versus Fixed Performance Standards
Authors: Tsoulouhas Theofanis , Vukina Tomislav 
Published: March 2003

AbstractGrower discontent with tournaments as mechanisms for settling poultry contracts can largely be attributed to the group composition risk that tournaments impose on growers. This article focuses on the welfare effects of a widely advocated regulatory proposal to prevent integrator companies from using tournaments and replace them with schemes that compare performance to a fixed standard. The analysis shows that the mandatory replacement of tournaments with fixed performance standards, absent any rules that regulate the magnitude of the piece rate, can decrease grower income insurance without raising welfare. However, replacing tournaments with fixed performance standards can simultaneously increase income insurance and welfare, provided that the magnitude of the piece rate is also regulated.
Price Discrimination and Pricing to Market Behavior of Canadian Canola Exporters
Authors: Brown Jennifer 
Published: March 2003

AbstractThe role of exchange rate fluctuation on the pricing behavior of Canadian canola exporters to Japan, Mexico, and the U.S. is examined using a model identifying noncompetitive and exchange rate related pricing behavior. Price discrimination was identified for Canadian canola exports to the three destinations over the period of 1993'99. Results also suggest that Pricing to Market strategies were employed for Japanese imports. Canadian canola exporters used local currency price stabilization to dampen the effects of relative price changes in the Japanese currency, perhaps linked to the large size of Japanese imports relative to Mexico and the U.S.
The Influence of Regulation on the Publication of Consolidated Statements
Authors: Walker R. G. , Mack Janet 
Published: March 2003

The impact of regulation on the publication of consolidated statements by Australian listed companies is examined by reviewing evidence of the first use of consolidated statements by holding companies listed on the Sydney Stock Exchange, excluding companies incorporated elsewhere, and relating that evidence to the chronology of the development of statutory, professional and stock‐exchange regulations permitting or prescribing the use of consolidated statements. The findings are that the wider adoption of consolidation accounting has been associated with changes in statutory and other forms of regulation. These findings contradict the conclusions of earlier studies (Whittred, 1986, 1987, 1988), namely that regulation was of minimal influence, and that the adoption of consolidation accounting was explainable by ‘contracting cost variables’. Major flaws identified in these earlier studies were an apparent failure to recognize that Sydney listed companies may have been subject to regulations established in other jurisdictions, and a crucial misinterpretation of the history of Australian stock exchange listing rules, which led to the misidentification of listed companies as having adopted consolidation ‘voluntarily’.The findings also underline comments made previously in critiques of other papers which have tested hypotheses incorporating agency or contracting costs. While historical analysis can assist the exercise of judgment in the classification of events, those who rely on historical evidence in the development of theories and in framing hypotheses should use that evidence with care, having regard to pertinent contextual factors.
The Evolution of Standard Costing in the U.K. and U.S.: From Decision Making to Control
Authors: Fleischman Richard K. , Tyson Thomas N. 
Published: March 2003

Decision making and control are two fundamental components of industrial management that are aided by accounting information. This article traces the evolution of standard costing in the U.K. and U.S. and describes how it has served these two purposes over time. At the start of the industrial revolution, standard costing, in the form of past actual costs, aided managers in make‐or‐buy, pricing, outsourcing and other routine and special decisions. In the late nineteenth century, as the mass production of homogeneous products became more common, predetermined, norm‐based standard costs were promoted as the means to control operations and reduce waste. The use of predetermined costs was recommended by both academic and professional branches well into the twentieth century. Since the mid‐1980s, norm‐based standards have come under fire for not providing appropriate strategic signals in an era of global competition, continuous improvement and perpetual cost reduction.This article compares the nature of standard costing practices in the British Industrial Revolution with those that evolved in the U.S. under scientific management. The enquiry is not limited to double‐entry systems and, like Miller and Napier (1993), the domain is broadened to include other forms of cost‐keeping practices. We utilize primary and secondary sources to argue that the environment and rationales for standard costs have changed fundamentally over time. It is speculated that in the future standard costing will be used far less for individual accountability or operational control, but will return to its decision‐making roots in the form of long‐run cost targets that benchmark the success of continuous cost‐reduction efforts.
Accounting Practice Harmony, Accounting Regulation and Firm Characteristics
Authors: Rahman Asheq , Perera Hector , Ganesh Siva 
Published: March 2003

Harmonization of accounting standards has been the subject of many initiatives taken at international, regional and national levels in recent years. Policy makers advancing this idea believe that accounting regulation harmony will lead to practice harmony. The literature in the area of accounting harmonization also generally relies on a similar belief.Comparing accounting regulations and accounting practices of two countries that are pursuing a program of harmonization, Australia and New Zealand, revealed some association between the levels of regulation harmony and practice harmony. Although this indicates that regulatory harmony can improve practice harmony, the association is ‘noisy’, suggesting that there are also other factors affecting practice harmony. Evidence adduced here shows that accounting practice harmony is also associated with firm‐specific characteristics.
Earnings Persistence, Losses and the Estimation of Earnings Response Coefficients
Authors: Donnelly Ray 
Published: March 2003

One of the major themes of capital markets accounting research concerns mapping the relation between accounting earnings and security returns. There is still not agreement on the functional form of this relation. The models analysed here are those where: the level of earnings alone, the change in earnings alone, or both, scaled by price, are used as explanatory variables for returns. This article demonstrates that if earnings are either completely permanent or entirely transitory, the earnings response coefficients (ERCs) estimated by levels and changes models should coincide. However, if earnings comprise a mixed process of permanent and transitory components, the ERC estimated by the levels will differ from that estimated by the changes model. Using losses to identify transitory components in earnings, empirical evidence consistent with these predictions is provided.A combined model using both the level of, and change in, earnings is justified as a weighted average of an earnings and a book value valuation model (e.g., Ohlson, 1989). An alternative rationalization concerns the mitigation of an errors‐in‐variables problem associated with the estimation of unexpected earnings (Ali and Zarowin, 1992). The results for the combined model are more consistent with the latter. In this context, some previous empirical studies perceive the levels variable as a useful addition to the changes variable when there are transitory components in earnings. However, the evidence reported here suggests that the level of earnings, scaled by price, appears to be the fundamental earnings explanatory variable for returns (Ohlson, 1991, p. 1). The changes variable can, when the errors‐in‐variables problem is not mitigated by other methods, be a useful addition to the levels variable.
The Investment Opportunity Set and Capitalization versus Expensing Methods of Accounting Choice
Authors: Dhaliwal Dan S. , Heninger William G. , Hughes II K.E. 
Published: March 2003

This paper examines the effects of the investment opportunity set (IOS) on management’s decision to capitalize or expense significant costs in two diverse settings: (1) in accounting for exploration and development (E&D) costs by firms in the oil‐and‐gas industry, and (2) in accounting for research and development (R&D) costs by firms (across industries) prior to 1974. We argue that the relation between the IOS and the decision to capitalize versus to expense is based upon managerial incentives to reduce the variance of accounting earnings. High‐growth firms are more likely to have more variable earnings, which therefore creates greater incentives to reduce earnings variability. Because the capitalization method generally results in a lower variance of reported earnings than does the expensing method, high‐growth firms are more likely to select capitalization. Our results show that, after controlling for firm size and for the indirect effects of the IOS mediated by debt contracts, high‐growth firms (firms with fewer assets‐in‐place) are more likely than low‐growth firms to select the capitalization method of accounting for E&D and R&D expenses. JEL classification: M41; G31