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  • Articles  (580)
  • Articles: DFG German National Licenses  (580)
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  • Blackwell Publishing Ltd/Inc.  (511)
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  • Economics  (580)
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  • Articles: DFG German National Licenses  (580)
  • Articles and Proceedings (GFZpublic)
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  • 1
    Electronic Resource
    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: When public budgets have been drafted and approved, a new and equally important game begins. Budgets are routinely broken when they are implemented, causing higher public spending than politicians originally intended. Institutional, political, and economic causes of budget overruns are examined in an empirical analysis of more than 17,000 cases. While political factors have only marginal effect, it turns out that tractability explains budget overruns well; if users and producers are strong, budget overruns tend to be large. In a reform perspective, the effect of institutional rules is especially interesting. No quick fixes to problems with budget overruns exist, but rules prohibiting supplementary appropriations for non-mandatory spending can reduce overruns, provided that politicians are willing and able to credibly commit themselves not to waive them later.
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  • 2
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Studies of measurement and accountability are leading public sector transformation. By examining military work, this paper addresses the relationship between measurements and accountability by highlighting the measurements. Evidence was gathered from documents, political statements and field research. Several layers of accountability systems were found in the organisation. The principal can be the weak link in an accountability relationship if the measurement agenda is in the hands of the agent. The problems seem to go beyond performance and output, and a more fundamental question is challenging the public sector: `Are we doing the right things?' Or an even more dramatic existential question arises: `Why do we exist?'
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  • 3
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
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  • 4
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
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  • 5
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: At the end of a long process of transition from cash accounting, UK central government departments discharged their public accountability in 2001–02 by presenting Departmental Resource Accounts (DRAs) to Parliament. This article assesses the implementation of Resource Accounting, focusing on timeliness (measured by certification lags) and accounts quality (measured by the property of not being qualified). The descriptive statistics indicate substantial variation in certification lag. The estimated OLS regression model has strong explanatory power. Explanatory variables include those that can be regarded as enduring and those that are attributable to the transition process. The enduring variables are: new DRA, consolidation, audit qualification and pension scheme (whose statistically significant positive coefficients show that these are associated with longer certification lags) and percentage of Appropriations-in-Aid (statistically significant negative coefficient). The transitional variables are Executive Agency and a dummy for 2001–02 (whose statistically significant negative coefficients show that these are associated with shorter certification lags). Potential for shorter certification lags is identified, as are administrative deficiencies that delay the arrival of some certified DRAs into the public domain. Accounts quality improved during the transition period, though problems still occur in some departments that are important in terms of expenditure and assets.
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  • 6
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Since 1999 devolved administrations with elected bodies have been set up in the United Kingdom (Scotland, Wales and, though intermittently suspended for political reasons, Northern Ireland). Because the staff of the administrations remain linked with the British civil service, they are influenced by Britain-wide trends in public management, and especially programmes of modernisation and organisational change. Devolution involves a balance between pro-modernisation forces and of resistance to modernisation, and the three devolved systems show different patterns of response. They use the rhetoric of modernisation, but their strategies tend to be more cautious and politically constrained than at the UK level.
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  • 7
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    Electronic Resource
    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper examines the extent to which PFI is a product of a modernisation agenda and its role in furthering it. We define modernisation using an analysis of the UK Government's legislation and pronouncements framing it in the context of New Public Financial Management (Olsen et. al, 1998). The paper uses the example of healthcare to consider recent changes in the procurement and accounting for infrastructure investment. Finally we evaluate the use of PFI in the context of NPFM and the modernisation agenda and consider whether the public sector should provide funding for the infrastructure of the public services.
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  • 8
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: The purpose of this study is to explore the implications of the rationality of accounting thought and practice as a mediating mechanism in the highly-charged, conflict-ridden situation in Northern Ireland (NI). The paper draws on a variety of data sources, including a series of interviews with key actors. There are some indications of accounting information being used to inform discussion and debate at the new Assembly. However, a number of politicians, from a spectrum of political traditions, do not relate to this new language, and the instability of the process (evidenced by frequent suspensions) discourages learning and engagement. Overall, this suggests that, without greater continuity, there is a limitation on the ability of accounting practices to mediate tensions.
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  • 9
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Financial accountability and management 21 (2005), S. 0 
    ISSN: 1468-0408
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper provides an assessment of the development of the Scottish Budget as a key instrument of parliamentary accountability. The new Scottish Parliament established a budgetary process which sought a more meaningful role for Parliament in the scrutiny and approval of estimates, wider public consultation, and greater transparency, in a three stage budget process of strategic priorities; draft budget; and budget approval. The paper sets out the budgetary framework, evaluates the process in practice, and highlights problems of setting priorities. It concludes that there is now greater scrutiny than under Whitehall, where it was minimal. However, whilst the budget information provided is an improvement over past practice, progress is inconsistent across departments. There is scope for further rationalisation and greater transparency in the process, and reforms implemented in 2004 suggest that progress will continue.
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  • 10
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This study examines the interactive effects of change in managing director/chief executive officer (MD) and financial distress together with five control variables (type of audit firm; audit fees; gearing; time; and company size) on first, audit opinion and secondly on auditor switching. Based on a sample of 297 UK listed companies between 1987 and 2001, we find that companies that are financially distressed and change their MD are most likely to receive a qualified audit report, ceteris paribus. In addition, we find evidence of both familiarity and intimidation threats and that the probability of a switch increases with the severity of qualification.
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  • 11
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  In recent years credit rating agencies have started rating firms who have not asked for a rating. Recipients of unsolicited ratings argue that the assigned ratings are too low and reflect a lack of comprehensive knowledge of the rated firms. We set out to examine these claims using a comprehensive and international sample of 1,060 bank ratings. Our results show that there is a significant difference in the distributions of ratings, and the shadow group has lower ratings. The results also indicate that banks that received shadow ratings are smaller and have weaker financial profiles than banks that have other ratings. This explains, in part, the lower ratings. In addition, we develop a model to explain bank ratings. The two-step treatment effects model shows that bank size, profitability, asset quality, liquidity, and sovereign credit risk are important factors in determining bank ratings.
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  • 12
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  We study the relationships between three variables which proxy for the ex-ante level of information asymmetry – forecast dispersion, forecast revision volatility, and the level of analyst coverage, and equity bid-ask spread and depth changes around quarterly earnings releases. Kim and Verrecchia (1994) suggest that earnings releases increase the level of information asymmetry and lower the level of liquidity in the security market. Using both an OLS regression framework and a simultaneous equations model, we examine whether equity bid-ask spreads increase and depths decrease as the level of information asymmetry increases. Our results indicate that spreads are higher (relative to a non-event period) around earnings announcements when information asymmetry is more pronounced; however, depths are lower only on the day following the announcement when there is greater information asymmetry. Relative spreads have a significant positive relation with both forecast dispersion and revision volatility and a significant negative relation with analyst coverage. Relative depths have a significant negative relation with forecast dispersion and a significant positive relation with analyst coverage. Our findings indicate that the equity specialist adjusts both spreads and depths when confronting informed traders around earnings releases and that these adjustments are more pronounced when the level of information asymmetry is greater.
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  • 13
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This paper examines whether the incidence of earnings management by UK firms depends on board monitoring. We focus on two aspects of board monitoring: the role of outside board members and the audit committee. Results indicate that the likelihood of managers making income-increasing abnormal accruals to avoid reporting losses and earnings reductions is negatively related to the proportion of outsiders on the board. We also find that the chance of abnormal accruals being large enough to turn a loss into a profit or to ensure that profit does not decline is significantly lower for firms with a high proportion of outside board members. In contrast, we find little evidence that outside directors influence income-decreasing abnormal accruals when pre-managed earnings are high. We find no evidence that the presence of an audit committee directly affects the extent of income-increasing manipulations to meet or exceed these thresholds. Neither do audit committees appear to have a direct effect on the degree of downward manipulation, when pre-managed earnings exceed thresholds by a large margin. Our findings suggest that boards contribute towards the integrity of financial statements, as predicted by agency theory.
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  • 14
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This study provides evidence that mandatory cash flow disclosure required by Approved Australian Accounting Standard AASB 1026, Statement of Cash Flows(June 1992) was associated with a decline in bid-ask spreads following the introduction of the regulation, even after controlling for changes in trading volume and price volatility. More pronounced decreases in bid-ask spreads were associated with firms having lower correlations between reported CFO and estimates of CFO using balance sheet reconstructions. We conclude that mandatory cash flow disclosure reduces information asymmetry across market participants.
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  • 15
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  A theoretical analysis argues that a company will provide benefits if they are worth more to the employee than income equal to the net amount it is costing the firm to provide the benefit. Because the individual is being denied choice, other things being equal he/she would prefer the income. But the firm may be able to provide a benefit-wage package which compensates the individual because of (i) tax advantages, (ii) economies of scale in purchasing or (iii) production function advantages. The empirical work focuses on benefit provision in the UK.
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  • 16
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This paper shows that in a voluntary disclosure environment entailing both a fixed disclosure cost and a variable proprietary cost, partial disclosure equilibria may arise in which firms voluntarily disclose bad private information to the public. Furthermore, it is shown that such equilibria may arise more frequently as the threat of incuring proprietary cost increases and/or the proprietary cost itself increases.
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  • 17
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This study examines the role of financial analysts in equity valuation in Japan by comparing the relevance of financial analysts’ earnings forecasts, over financial statement information, to investors’ decisions. We find that the value-relevance of a set of accounting variables is very modest, but the incremental contribution of analysts’ forecasts is very significant. This is in line with the expectation that the skill and expertise of analysts are more valuable in markets with poor financial disclosure, such as Japan. We also find that the importance of the financial statements increases over time while the importance of the analysts’ forecasts does not change. We also provide evidence of the effect of Japanese corporate groupings, keiretsu, on the informativeness of accounting signals and earnings forecasts. The results show that the contribution of accounting variables to valuation is lower for keiretsu firms, which supports the exclusionary hypothesis that companies which are a part of keiretsu, disclose less information than do non-keiretsu companies. The analysts’ forecasts are equally important for investors in both types of firms.
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  • 18
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This paper studies the performance of 60 European funds from four countries. The paper extends the UK matched pair approach for fund evaluation developed by Mallin et al. (1995) to a European setting. The findings suggest that there is no difference between ethical and non-ethical funds according to the performance measures employed. Neither type of fund displayed any ability to time the market. Finally, the results indicate that the management fee is a significant explanatory variable for the Jensen measure as Chen et al. (1992) and Grinblatt and Titman (1994) suggested.
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  • 19
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  In this study, we document evidence of a ‘reverse’ weekend effect – whereby Monday returns are significantly positive and they are higher than the returns on other days of the week – over an extended period of eleven years (from 1988 to 1998). We also find that the ‘traditional’ weekend effect and the ‘reverse’ effect are related to firm size in that the ‘traditional’ weekend effect tends to be associated with small firms while the ‘reverse’ weekend effect tends to be associated with large firms. In addition, we find that during the period in which the ‘reverse’ weekend effect is observed, Monday returns for large firms tend to follow previous Friday returns when previous Friday returns are positive, but they do not follow the previous Friday returns when Friday returns are negative. Furthermore, we find that during the period in which the ‘reverse’ weekend effect is observed, Monday returns are positively related to the volume of medium-size and block transactions, but negatively related to the volume of odd-lot transactions.
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  • 20
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This paper investigates the initial pricing and performance of Canadian unit trust IPOs over a three- to four-year period and then draws implications for the efficiency of the Canadian market. Overall, the results confirm the following: in the short term, unit trust IPOs are underpriced and outperform the Canadian market; in the medium term, IPOs are fairly priced and neither outperform nor underperform the Canadian market; and in the long term, IPOs are fairly priced but underperform the Canadian market. In addition, our results confirm that the size of underpricing is related to ex-ante uncertainty about the value of the issue. Ex-ante uncertainty proxies, namely total risk, exchange listing, relative bid-ask spread, and relative volume of initial trade, all explain the size of underpricing. When the effects of these factors are controlled, the results confirm that Canadian unit trust IPOs are indeed overpriced in the short term but underpriced in the long term. We conclude that the Canadian unit trust IPO market appears to be inefficient in the short and long term, but over the medium, the market appears to be efficient.
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  • 21
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  Conflicting evidence on weak form efficiency of the Dhaka Stock Market appears to stem from the use of monthly versus daily data, structural changes after the 1996 market crash, and the use of tests with or without heteroscedasticity adjustment. Heteroscedasticity-robust tests indicate short-term predictability of share prices prior to the crash, but not afterwards. Although a heteroscedasticity-robust Box-Pierce test was used by Lo and MacKinlay (1989) in their simulations, our study appears to be the first to apply this test to stock prices. Typical rejection of weak-form market efficiency by the usual autocorrelation tests may be reversed by a heteroscedasticity-robust test.
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  • 22
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  Using a survey approach, this paper examines the importance and relevance of the various theories of dividend policy for UK companies. Further, it evaluates the extent to which corporate characteristics such as size and industry influence managerial responses to the survey. In general, the results support dividend hypotheses relating to signalling and ownership structure, in preference to those about capital structure and investment decisions and agency issues. At a more detailed level, the cross sectional analysis reveals important differences between managers’ responses, based on company size, industry sector, growth opportunities, ownership structure and information asymmetry.
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  • 23
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  Evidence from recent US and UK studies reveals a pattern of poor long run post acquisition performance by acquiring firms. One explanation, due to Jensen (1986) is that acquirers with an excess of free cash flow (FCF) will have a propensity to squander this on wasteful investments, including take-overs. In this paper, using a dataset of UK take-overs and proxies for free cash flow similar to those used by Lang, Stulz and Walking (1991), we find no support for the FCF hypothesis and show that this conclusion is robust to the model of long run returns employed. Contrary to the free cash flow hypothesis there is evidence that acquirers with high free cash flow perform better than acquirers with low free cash flow. Although not consistent with the Jensen hypothesis, this evidence is compatible with the emerging UK evidence that shows cash flow-to-price measures are associated with market returns.
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  • 24
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  We examine adverse selection costs around NYSE decimalization. Further, we analyze the relation between adverse selection costs and trade size. We find a significant increase in the percentage adverse selection cost and a reduction in dollar adverse selection cost (percentage adverse selection multiplied by the spread) following complete decimalization on the NYSE. On estimating the adverse selection components by trade size classes, we find a decline in dollar adverse selection costs in trades of all sizes, with the strongest evidence coming from medium size trades, followed by small and large size trades. One implication of our findings is that there appears to be less stealth trading following complete decimalization and less institutional trading overall.
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  • 25
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  Using a unique dataset, we examine financial performance, and venture capital involvement in 167 MBOs exiting through IPOs (MBO-IPOs) on the London Stock Exchange, during the period 1964 –1997. VC backed MBOs seem to be more underpriced than MBOs without venture capital backing, based on average value-weighted returns. MBOs backed by highly reputable VCs tend to be older companies, and exit earlier than MBOs backed by less reputable VCs. The results contradict ‘certification’ and ‘grandstanding’ hypotheses supported by US data (Megginson and Weiss, 1991; and Gompers, 1996, respectively). We found no evidence of either significant underperformance, or that VC backed MBOs perform better than their non-VC backed counterparts in the long run. However, MBOs backed by highly reputable venture capital firms seem to be better long-term investments as compared to those backed by less prestigious venture capitalist firms. The results remain robust after using different methods to measure performance, and after controlling for sample selectivity bias.
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  Is earnings management affecting (driving) the measures of earnings conservatism?Ball et al. (2000) point out that the asymmetry in the recognition of good and bad news in earnings (faster recognition of bad news: earnings conservatism) is more pronounced in common-law than in code-law based accounting regimes. However, comparative studies on earnings conservatism in Europe have failed to identify significant differences between common-law and code-law based countries. We argue that in code-law based countries managers have incentives to reduce earnings consistently. This enhances the association between earnings and returns in bad news periods. We find that after controlling for discretionary accruals, the differential earnings response to bad news in Germany and France decreases significantly.
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  • 28
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
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    Topics: Economics
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  • 29
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  We examine the newly developed international diversification instruments–iShares traded on the American Stock Exchange. Given the fact that iShares can be created and redeemed at will, the daily price of an iShare is expected to be equal to the daily portfolio value of the underlying assets in the home-country market. Therefore, theoretically, iShare pricing should be influenced by the risk from the iShare's home-country market and not the risk from the US market, per se. We evaluate the risk exposure of iShare prices to the US market (non-fundamental effect) as well as the home-country market (the fundamental effect). We find that most iShare returns are significantly influenced by and sensitive to the US market risk. Moreover, the US market appears to be the key permanent driving factor and the home-country market is a pronounced transitory driving force for iShare prices. These findings indicate the presence of limits of international arbitrage for iShares. As a result, the international diversification benefits of iShares become questionable.
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  We examine the hypothesis that firm size affects the sensitivity of bank term loan maturity to its underlying determinants. As borrower size increases, negotiating power with the lender and information transparency increase, while the lender is able to spread the fixed costs of loan production across a larger dollar value of the loan. We find strong evidence of firm size dependency in the determinants of bank term loan maturity and show that this is unrelated to syndication. Only large borrowers can manipulate bank loan contract terms so as to increase firm value.
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  This paper investigates the relationship between investor uncertainty, gauged by properties of analysts’ forecasts, and the stock market response to earnings. We find that uncertainty is best characterized by a comprehensive measure recently proposed by Barron, Kim, Lim and Stevens (1998), BKLS. The BKLS measure is related to uncertainty-inducing events, as well as factors that affect the difficulty faced by analysts in forecasting earnings. We conclude that, first, pre-disclosure uncertainty is a significant determinant of the price reaction to the earnings release, and second, BKLS is a more comprehensive measure of uncertainty than simple dispersion.
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  • 32
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of business finance & accounting 32 (2005), S. 0 
    ISSN: 1468-5957
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: Abstract:  The China Securities Regulatory Commission requires all listed firms to make earnings announcements by the end of April each year. This requirement creates a unique opportunity for us to evaluate the timing of earnings announcements in a four-month cluster. Firms, which are willing to make early announcements, tend to surprise the market, as indicated by the higher volume and price reactions. Later announcements are more predictable, as indicated by the lower volume and price reactions. These results indicate that an information asymmetry exists between early and late earnings announcements in Mainland China.
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    Journal of business finance & accounting 32 (2005), S. 0 
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    Topics: Economics
    Notes: Abstract:  Most UK companies separate the roles of CEO and Chairman. The former runs the company and the latter runs the board. Using turnover data on 2,180 separate Chairmanships of the top 460 UK firms over the 1990–1998 period, I find that the Chairman is more likely to be replaced when the CEO is dismissed. Detailed data on the dismissal events suggests that Chairman replacement is associated with board restructuring. This may be necessary to bring in different skills and experience which, in turn, might facilitate changes in future corporate decisions. Moreover, I find that the Chairman's previous position, or the type of Chairmanship, does not affect the association between Chairman removal and CEO dismissal. But, the increase in the dismissal likelihood of the Chairman at the time of forced CEO departure is higher when she is involved in the appointment of the failing CEO. This, in turn, can be interpreted as an indication of effective governance.
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    Topics: Economics
    Notes: Abstract:  This paper examines long-run convergence between US, UK and seven European stock markets. We report evidence to suggest that while real short-run diversification gains may occur, in general they tend to be short-lived. However we also find that US and UK markets are relatively less bound to a common trend, which would imply that increased stock market merger activity, and any transition to the European common currency by the UK, may lead to relatively large stock market adjustments as markets adapt to these institutional changes.
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    Topics: Economics
    Notes: Abstract:  This paper evaluates whether directors of target companies make response recommendations in takeovers which are consistent with the interests of shareholders, by examining the relationship between target director recommendations and associated takeover characteristics and ownership and corporate governance characteristics of target companies. The findings suggest that response recommendations appear to be more closely associated with the self-interest of directors rather than shareholders’ concerns, and that common governance initiatives aimed at aligning the interests of shareholders and managers are ineffective in resolving this agency problem. The results suggest the need for legislative or judicial reforms in Australia to encourage takeover activity and reduce takeover hostility.
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    Topics: Economics
    Notes: Abstract:  The Gramm-Leach-Bliley Act (GLBA) of 1999 marks the end of Depression era regulations like the Glass-Steagall Act of 1933 and Bank Holding Company Act of 1956. These acts have restricted banks from securities and insurance underwriting business. This paper examines the impact of the GLBA on the banking industry. We find that the banking industry has a welfare gain from this law. We investigate two different categorizations of the banking industry. We find that Money Center banks followed by the Super Regional banks benefited most from this deregulation. On the other hand, banks that had Section 20 investment subsidiaries gained more than other banks in the second category. The results also show that the exposure to systematic risk for different categories of banks decreased after the passage of this law, which implies that the GLBA is fairly successful in containing the risk that accompanied the act and also created diversification opportunities. For Money Center banks, Super Regional Banks, banks with a section 20 subsidiary and banks with a new financial subsidiary, a shift in the exposure to systematic risk can explain the overall cross sectional variation in return from the deregulation. In both categorizations we find that larger banks gained more, while the overall explanatory power of profitability is not conclusive.
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    Topics: Economics
    Notes: Abstract:  In this first ever study to examine the marginal importance of collateral level vis-à-vis reputation in reducing information asymmetry, we find using unique data for UK business credit, that pre-existing reputation is the single-most important determinant in inducing a bank to extend a loan. Moreover, a bank responds positively to higher levels of collateral and negatively to higher credit requests. Similar to Cole (1998), but controlling for collateral level, we find that it helps to have banked with the lender before. Non-trivial information search costs imply an important role for reputation in extending credits.
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    Topics: Economics
    Notes: Abstract:  Investors in coupon bonds evaluate them based upon financial considerations such as coupon rate, time-to-maturity, callability, convertibility, and financial condition of the issuer. These investors regard promised yield as only a rough measure of the reward a bond offers to compensate them for the pure time-value-of-money and the financial risks to which they are exposed. Hence, they need a more meaningful measure of reward to facilitate comparisons among coupon bonds. The purpose of this paper is to describe an alternative heuristic approach to the task of making such comparisons. The approach produces a simple ordinal measure of reward, called the ‘indifference spread,’ that considers implicitly the potential sources of return to, as well as many of the risks associated with, investment in coupon bonds. For any coupon bond, the indifference spread method permits assessment of relative reward offered for the combined exposures to price and call risks, while also reasonably accommodating possible sale anytime prior to maturity. Once an investor (e.g., money manager) identifies indifference spreads for all bonds under consideration as of any moment in time, he/she can then draw conclusions regarding their relative values at that time based, in large part, on these spreads.
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    Journal of regional science 45 (2005), S. 0 
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    Topics: Geography , Economics
    Notes: Abstract.  In the recent literature on spatial agglomeration models, substantial progress has been made in modeling urban structures in terms of number and size of cities, but the question where cities arise remains unanswered. This paper illustrates that if a spatial agglomeration model is extended with a true geographical dimension, the location of cities can also be endogenized. A geographical agglomeration model for Europe shows that the size and place of cities can be simultaneously determined. The empirical results suggest that elementary economic forces such as agglomeration economies and transportation costs might be able to explain place and size of cities in the long run to a substantial degree. In addition, some new statistical measures of fit are discussed that are needed to evaluate simulations results of this kind.
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    Topics: Geography , Economics
    Notes: Abstract.  This paper estimates the effects of knowledge spillovers on patent growth rates across 335 European regions over the 1989–1999 period. We propose a dynamic model based on an innovation production function. A Bayesian approach is used to take into account area-specific innovation and spatial spillovers. The estimation of the model proceeds via Markov Chain Monte Carlo simulation. The results show significant positive and negative spatial effects on innovative activity. The model allows for a rich spatial specification, which we illustrate by incorporating transport proximity measured by transportation time between regions to augment the typical spatial proximity measure of connectivity between regions. Doing this produces more pronounced spatial spillovers that exhibit a more polarized spatial pattern than a model relying on spatial proximity alone.
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    Topics: Geography , Economics
    Notes: Abstract.  This paper provides an empirical investigation of the advantages accruing to workers in industrial clusters. Using a unique data set based on the Cluster Mapping Project of the Italian National Statistical Institute, we examine whether industry agglomeration leads to wage and labor mobility differentials. We estimate complete Mincerian wage equations, investigating whether returns to seniority and education are a possible source of differentiation. We find that working in an industrial cluster reduces the returns to education, does not affect the returns to seniority, and does not provide average wage premia. On the other hand, industrial agglomeration positively affects the likelihood of being employed, of starting a business, and of making a transition from payroll employment to entrepreneurship; it also increases blue-collar worker mobility across jobs.
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    Journal of regional science 45 (2005), S. 0 
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    Topics: Geography , Economics
    Notes: Books reviewed:Luc Anselin, Raymond J. G. M. Florax, and Sergio J. Rey. Advances in Spatial Econometrics: Methodology, Tools and ApplicationsAmy Ellen Schwartz. City Taxes, City Spending: Essays in Honor of Dick NetzerAndrew Wood and David Valler. Governing Local and Regional Economies: Institutions, Politics and Economic DevelopmentVijayendra Rao and Michael Walton. Culture and Public ActionKent W. Colton. Housing in the Twenty-First Century: Achieving Common GroundLeo van den Berg and Antonio Russo. The Student City: Strategic Planning for Student Communities in EU CitiesHarry W. Richardson and Chang-Hee Christine Bae. Urban Sprawl in Western Europe and the United StatesRon J. Johnston and James D. Sidaway. Geography & Geographers: Anglo-American Human Geography since 1945Georges Benko and Ulf Strohmayer. Human Geography: A History for the 21st CenturyGary L. Gaile and Cort J. Willmott. Geography in America at the Dawn of the 21st CenturyMichael Storper. Institutions, Incentives and Communication in Economic GeographyMichael D. Bordo, Alan M. Taylor, and Jeffrey G. Williamson. Globalization in Historical PerspectiveA. J. Dietz, Ruerd Ruben, and A. Verhagen. The Impact of Climate Change on Drylands, With a Focus on West AfricaFrancis J. Leazes Jr. and Mark T. Motte. Providence, the Renaissance CityMike Carr. Bioregionalism and Civil Society: Democratic Challenges to Corporate Globalism
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    Topics: Geography , Economics
    Notes: Abstract.  In this paper, we extend the partial equilibrium urban model of DeSalvo (1985) to include mode choice. DeSalvo demonstrated that the urban model of Muth (1969) was robust to the extension to leisure choice. We show that the model is robust to mode choice as well. In addition, we derive the comparative static results that commuters choose higher speed modes for longer commutes, at higher wage rates, with greater tastes for housing, and with lower housing prices. Also, for a given distance commuted, we derive the comparative static result that commuters chose shorter duration commutes at higher wage rates. Whereas it is typically assumed that marginal commuting cost is positive and non-increasing with distance, we derive these results. Moreover, we derive the results that marginal commuting cost rises with an exogenous increase in housing price and falls with increased tastes for housing. We also explore the effects of exogenous commuting-cost changes on the endogenous variables of the model. The remaining comparative static results on housing consumption and location are qualitatively the same as in DeSalvo.
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    Topics: Geography , Economics
    Notes: Abstract.  This paper presents methods to analyze convergence in cross-sectional data collected over time using distribution free statistics that are not sensitive to the magnitudes involved. Measures of concordance and discordance are employed in the empirical analysis of real personal income per capita for 48 U.S. States over the period 1929–2002. Although most States are converging with each other, some are converging faster than others. The methods used have the flexibility to focus on specific characteristics such as convergence in absolute differences or convergence in the ratio of rewards. The methods may also be used to consider convergence without switching and additionally be applied to other features such as the percentiles of the distributions.
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    Journal of regional science 45 (2005), S. 0 
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    Topics: Geography , Economics
    Notes: Abstract.  This paper tests some of the main hypotheses about the importance of horizontal clusters for the growth of employment in small firms using data from Computing Services in Great Britain. In the main section of the paper, spatial econometric models are estimated controlling for supply- and demand-side conditions to isolate the effect of initial cluster intensity. The paper then projects cluster development using the fitted model, showing how clusters are likely to emerge and intensify. One aspect of the paper is the existence of a de-clustering mechanism due to congestion effects.
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    Topics: Geography , Economics
    Notes: Abstract.  Numerous models propose an income-distribution/growth linkage, but the empirical evidence is ambiguous and depends on the regression approach. Mixed findings are not unexpected if there are differing short- and long-term responses. Approaches utilizing cross-sectional variation primarily reflect long-run effects, whereas those using time-series variation primarily reveal short-run effects. This study reconciles these issues using U.S. state data. After allowing for short- and long-run responses and for separate effects between the tails and middle of the distribution, the consistent pattern is the middle-class share and overall inequality are positively related to long-run growth. However, the short-run income-distribution response is less clear.
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    Notes: Abstract.  Transaction costs have attracted considerable attention in the theoretical literature on residential mobility. Transaction costs are thought to cause suboptimal consumption of housing but may also negatively affect labor market outcomes. In the current paper, we demonstrate empirically for the Netherlands that transaction costs have a strong negative effect on the owners' probability of moving. Under a range of different specifications, it appears that a 1 percent-point increase in the value of transaction costs—as a percentage of the value of the residence—decreases residential mobility rates by (at least) 8 percent. The estimates imply that ownership to ownership mobility rates would be substantially higher in the absence of the current 6 percent ad valorem buyer transaction tax. Our estimates are consistent with the observation that in the Netherlands ad valorem transaction costs mainly consist of buyer transaction costs.
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    Topics: Geography , Economics
    Notes: Abstract.  In this paper's model, undocumented workers are endogenously sorted into secondary labor markets. When further illegal immigration occurs, some new migrants follow their fellows into already migrant-dominated jobs, lowering migrant wages and raising real incomes of host-country labor and capital. Some submarkets switch from employing legal workers to employing migrants, lowering demand for and wages of legal workers. Undocumented immigration is Pareto-improving when enforcement reserves primary-sector jobs for legal workers. Pareto-dominant policies target the number of migrant-dominated submarkets, not the number of migrants. This appears consistent with U.S. enforcement practices. The effects of deportations, employer sanctions, and amnesties are explored.
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    Notes: Abstract.  This paper extends the interval Hotelling model with quadratic transport costs to the n-player case. For a large set of locations including potential equilibrium configurations, we show for n 〉 2 that firms neither maximize differentiation—as in the duopoly model—nor minimize differentiation—as in the multi-firm game with linear transport cost. Subgame perfect equilibria for games with up to nine players are characterized by a U-shaped price structure and interior corner firm locations. Results are driven by an asymmetry between firms. Interior firms are weaker competitors than their rivals at the corners. Increasing the number of firms shifts even more power to the corner firms. As a result, there is too much differentiation from the social perspective if n ≤ 3, while adding firms leads to a level of differentiation in equilibrium below the social optimum.
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    Notes: Abstract.  This study implements and tests a mathematical programming model to estimate interregional, interindustry transaction flows in a national system of economic regions based on an interregional accounting framework and initial information of interregional shipments. A national input–output (IO) table, regional data on gross output, value-added, exports, imports, and final demand at sector level are used as inputs to generate an interregional IO account that reconciles regional economic statistics and interregional transaction data. The model is tested using data from a multiregional global IO database and shows remarkable capacity to discover true interregional trade patterns from highly distorted initial estimates.
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    Notes: Abstract.  The concept of economic homogeneity in regional science is based on two very different notions: composition and similarity. In the case of the states of the US, measures of homogeneity based on these different notions are negatively correlated with each other, suggesting that the results of studies that use measures of economic homogeneity are likely to be sensitive to the conceptual basis of the specific measure. In order to overcome this problem, a portfolio-theoretic measure of economic homogeneity with some attractive properties is presented. It is naturally decomposable into two components reflecting each of these notions and easy to construct using widely available data. Using this measure, patterns of homogeneity for the states of the US are illustrated and discussed, and hypotheses about the relationship between homogeneity and economic instability are tested.
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    Notes: Abstract.  The U.S. Regional Ferrous Scrap Model analyzes spatial variations in prices for two grades of ferrous scrap using a logistic model of choice under differentiated products. The model uses a computer-generated equilibrium framework to solve for prices that support the observed spatial distribution of supply and demand quantities. This paper presents the model's formal structure and its solution algorithm. The model specification is highly disaggregated with 1,212 supply and 240 demand regions. Characteristics of the equilibrium solution are described for prices and interregional flows. Sensitivity of equilibrium values to changes in model parameters is reported.
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    Notes: Books reviewed:Der-Horng Lee, Urban and Regional Transportation Modeling: Essays in Honor of David BoyceRichard Netzer, The Property Tax, Land Use and Land Use RegulationEric Sheppard and Robert B. McMaster, Scale and Geographic Inquiry: Nature, Society, and MethodLaura A. Reese and David Fasenfest, Critical Evaluations of Economic Development PoliciesTracy M. Gordon, Planned Developments in California: Private Communities and Public LifeAlberto Alesina and Enrico Spolaore, The Size of NationsTimothy Bresnahan and Alfonso Gambardella, Building High-Tech Clusters: Silicon Valley and BeyondDavid Brunori, Local Tax Policy: A Federalist PerspectiveAndré Sorensen, Peter J. Marcotullio, and Jill Grant, Towards Sustainable Cities: East Asian, North American and European Perspectives on Managing Urban RegionsMichael Dear and Gustavo Leclerc, Postborder City: Cultural Spaces of Bajalta CaliforniaEdward J. Lincoln, East Asian Economic RegionalismFiona Hill and Clifford Gaddy, The Siberian Curse: How Communist Planners Left Russia Out in the ColdJonathan Barnett, Redesigning Cities: Principles, Practice, ImplementationJohn Punter, The Vancouver Achievement: Urban Planning and DesignDavid Halle, New York & Los Angeles: Politics, Society, and Culture: A Comparative ViewChris Couch, City of Change and Challenge: Urban Planning and Regeneration in LiverpoolAlan Rabinowitz, Urban Economics and Land Use in America: The Transformation of Cities in the Twentieth CenturyDon Mitchell, The Right to the City: Social Justice and the Fight for Public Space
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    Notes: Abstract.  This paper examines the initial location choice of legal employment-based immigrants to the United States using Immigration and Naturalization Service data on individual immigrants, as well as economic, demographic, and social data to characterize the 298 metropolitan areas we define as the universal choice set. Focusing on interactions between place characteristics and immigrant characteristics, we provide multinomial logit model estimates for the location choices of about 38,000 employment-based immigrants to the United States in 1995, focusing on the top 10 source countries. We find that, as groups, immigrants from nearly all countries are attracted to large cities with superior climates, and to cities with relatively well-educated adults and high wages. We also find evidence that employment-based immigrants tend to choose cities where there are relatively few immigrants of nationalities other than their own. However, when we introduce interaction terms to account for the sociodemographic characteristics of the individual immigrants, we find that the estimated effects of location destination factors can reverse as one takes account of the age, gender, marital status, and previous occupation of the immigrants.
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    Notes: Abstract.  Recent natural and manmade disasters have had significant regional economic impacts. These effects have been muted, however, by the resilience of individual businesses and of regional markets, which refers to the inherent ability and adaptive responses that enable firms and regions to avoid potential losses. Computable general equilibrium (CGE) analysis is a promising approach to disaster impact analysis because it is able to model the behavioral response to input shortages and changing market conditions. However, without further refinement, CGE models, as well as nearly all other economic models, reflect only “business-as-usual” conditions, when they are based on historical data. This paper advances the CGE analysis of major supply disruptions of critical inputs by: specifying operational definitions of individual business and regional macroeconomic resilience, linking production function parameters to various types of producer adaptations in emergencies, developing algorithms for recalibrating production functions to empirical or simulation data, and decomposing partial and general equilibrium responses. We illustrate some of these contributions in a case study of the sectoral and regional economic impacts of a disruption to the Portland Metropolitan Water System in the aftermath of a major earthquake.
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    Notes: Abstract.  This paper attempts to rescue the regional export-base growth model from a purely demand-side interpretation. It formally develops the classic Northian approach, where the exploitation of region-specific resources by export-orientated production sectors determines regional growth. In this model, the nature of the regional expansion is shown to be stimulus-specific with the value of the marginal export-base multiplier varying within very wide limits, depending upon key characteristics of the region and the nature of the supply-side shock to the export base.
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    Public administration 83 (2005), S. 0 
    ISSN: 1467-9299
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    Topics: Political Science , Economics
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    Public administration 83 (2005), S. 0 
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    Topics: Political Science , Economics
    Notes: Despite high expectations, in The Netherlands the formation of public-private partnerships (PPPs) in the field of transport infrastructure is stagnating. This article addresses the question of why this is the case. On the basis of a comparative analysis of 9 case studies concerning the building of partnerships, 3 patterns are identified. The first is the successful formation of partnerships resulting in enriched projects. The second pattern is that of early interaction resulting in ambitious proposals for which there is no support. The third pattern shows ineffective market consultations followed by unilateral public planning, leading to stagnating contract negotiations.These patterns are coherent and are caused by a number of generic factors. An important explanation for stagnation is the lack of interaction. As a result, public and private parties will fail to reach a common understanding, will be unable to contribute to the enrichment of the project content and will fail to develop mutual trust. If parties engage in early interaction, the lack of embeddedness of their efforts may result in an uncritical piling up of ambitions and an absence of the capability to realize trade-offs and generate support. These explanations are related to the absence of conscious and systematic attempts to manage and arrange interaction processes aimed at the formation of PPPs. On the basis of these findings the author formulates a number of suggestions to improve the quality and effectiveness of these processes.
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    Topics: Political Science , Economics
    Notes: In the career civil service the US federal government has long been guided by a merit system. This article traces how the principle of merit in appointment and promotion has developed since the nineteenth century and examines contemporary applications of competency frameworks in the US – their development, character, strengths and weaknesses. If core competency discussions and frameworks are to have a broader impact at both the government wide and the agency level, the frameworks will have to be disentangled. Existing notions of competencies for the political appointees, the leadership echelons of the career service, the rest of the career service, the entire government, central agencies, individual agencies, and badly needed future leaders not only suggest superhuman abilities, but also contain seriously conflicting expectations.
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    Notes: Since its election in May 1997, the Labour Government in the United Kingdom has emphasized the need for modernization in the improvement of public services. For local government, this emphasis has led to the introduction of a variety of measures intended, primarily, to improve political management and service delivery. Two key policies have been the introduction of Best Value and the Comprehensive Performance Assessment (CPA). CPA is used by the Audit Commission for measuring local authority performance in England and has led to each authority being classified as excellent, good, fair, weak or poor. Each authority's classification has implications, financially and in terms of its freedom to determine priorities and policies. In addition, the structure of local government is being reviewed by central government, alongside discussions as to the merits of establishing regional assemblies. In considering the justification for, and the impact of, changes, it is important to consider the views of local government employees, not least professional groupings and chief officers. This paper reports the findings of a national survey of chief financial officers (CFOs) of the single tier and county council local authorities in England to establish their views on key features of the Government's modernization agenda.
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    Notes: Mark R. Rutgers (ed.), Retracing Public AdministrationLester Salamon (ed.), The Tools of Government: A Guide to the New GovernanceMichael Moran, The British Regulatory State: High Modernism and Hyper-InnovationMaura Adshead and Michelle Millar (eds), Public Administration and Public Policy in Ireland: Theory and MethodsColin Seymour-Ure, Prime Ministers and the Media: Issues of Power and ControlKaren Duke, Drugs, Prisons and Policy-MakingBronwen Morgan, Social Citizenship in the Shadow of Competition: The Bureaucratic Politics of Regulatory JustificationPenny Leonard, Promoting Welfare: Government Information Policy and Social CitizenshipNikolaos Zahariadis, Ambiguity and Choice in Public Policy: Political Decision Making in Modern DemocraciesBruce Bimber, Information and American Democracy: Technology in the Evolution of Political Power
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    Notes: Path dependency is an important notion in diachronic approaches to understanding social and political processes. The first section of this paper examines the application of path dependency to policy studies; the advantages of the concept in understanding policy development are highlighted by examples from pension policy and social housing policy in the UK, and the EU budget. The next section considers several criticisms of path dependency: (1) it is a fashionable label for the intuition that ‘history matters’ without a clear and convincing account of decision-making over time; (2) it explains only stability and not change; (3) its normative implications are confused and mostly left unexplored. The final section concludes that path dependency, despite being theoretically inchoate and difficult to operationalize empirically, is a valid and useful concept for policy studies. However, its proper application demands sensitivity from scholars to other temporal dynamics that may operate in policy development.
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    Notes: Research on the governance of publicly funded research does not recognize that social science and ‘science’ are distinct activities. Neither does it recognize that regulating research policy in purely science and technology terms has undesirable consequences for the social sciences – intended or otherwise. This paper seeks to correct these omissions and considers the governance of social science through the example of regulating ‘everyday epistemology’ at the science policy level. The British research council system is used in order to demonstrate how social science has been politically constructed as a legitimate enterprise for public funding. We find that social science is in fact regulated by non-social scientists. The result is that social science, seen as a square peg, is forced into the round hole of natural scientific thinking. When this policy is translated into governance structures it creates a ‘slave social science’ and subverts the role of social science as social science.
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    Notes: Central government in the UK has introduced performance management regimes that apply rewards and sanctions to local service providers. These regimes assume that organizational performance is attributable to decisions made by local policy-makers rather than circumstances beyond their control. We test this assumption by developing a statistical model of external constraints on service standards and applying this model to the outcomes of comprehensive performance assessment (CPA) in English local government. The results show that CPA scores were significantly influenced by the characteristics – such as social diversity and economic prosperity – of local populations. Thus ‘poor’ performance is partly attributable to difficult circumstances rather than bad choices.
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    Notes: This paper, which is based on recent field research, suggests an interpretative model of territorial government in France. Relations between national and local authorities as well as policy- making processes suggest that the centralized state has faced a major decline of its hegemony and that decentralization reforms have induced a polycentric dynamic. Seven basic characteristics and three key properties of the model are discussed. The emerging model fits neither a new localism nor a new centralist pattern. It is the product of ongoing and incremental trade-offs between centrifugal and centripetal rationales. This complexity reflects a situation that is under the rather conservative, as well as tight, control of national politicians who hold multiple local elected mandates.
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    Notes: The theoretical and empirical analysis of administrative activities has been an important area of research since the establishment of political science as an academic discipline in Germany at the end of the 1960s. But is administrative science still a significant part of political science in Germany today? I argue here that in Germany a political science oriented administrative science has developed from a science focused on public administration, that is, on organizational questions, to one focused on public policies and thus on questions concerning the conditions and consequences of political problem solving and control (Steuerung). The question of the internal organization of government is increasingly regarded as an irrelevant one; in addition, the institutional promotion and funding of political science administration research has dramatically decreased since the 1970s. Today's new challenges (economization and internationalization) for both government and public administration seem to exceed the capability of political science administrative research. These challenges open up new opportunities, however, since, in the search for solutions beyond the dichotomy of market/managerialism on the one hand and traditional bureaucracy and state government on the other, political science in particular regains more importance. As will be shown, there are now tendencies which indicate that political science administrative research might encounter a stronger political demand. If the consequent research is able to find a new mixture of theory and practice, this in turn could help revitalize political science administrative research in Germany.
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    Notes: The current UK government is committed to extending participation in civil society, with the aim of significantly increasing volunteer numbers by 2005. It has put much effort into attracting ‘representative participants’, particularly from traditionally under-represented groups. ‘Natural joiners’ attract far less interest and are often written off as ‘the same old faces’. But the growth in opportunities for participation has actually encouraged the natural joiners because the nature of much modern participation requires people like them. Focusing on natural joiners and their motivations rather than looking at why the non-joiners don’t join, should increase understanding of why people participate and suggest new ways forward. This article looks at people active in tenant participation – a case study of a government ‘Sounding Board’ and some preliminary results of a survey of activists. There are some unexpected findings, including that the motivations of natural joiners are close to those of career professionals in the same field, and that interest in the ‘subject’ of participation may be a motivator, rather than an outcome.
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    Notes: While the notion of governance has received considerable scholarly attention, much less is known about change, and its sources, across modes of governance within respective policy domains. This article explores these neglected issues in two policy domains characterized by multi-level governance characteristics: Land (state)-local relationships in the domain of building administration and relationships governing the prisons domain in Germany. It does so in three steps. First, the article explores governance and considers endogenous and exogenous sources of change. Second, it discusses the institutional arrangements in the two domains and analyses modes of governance and their change. Third, the article compares the different dynamics of change and links these findings to wider debates regarding change across and within modes of governance. The analysis of the two domains suggests that ‘hunting around’ effects (i.e. permanent instability) are less prominent than suggested by cultural theory, while external pressures for change are filtered by the preferences of the actors within the respective domains.
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    Notes: The tension between the goals of integrated, seamless public services, requiring more extensive data sharing, and of privacy protection, now represents a major challenge for UK policy-makers, regulators and service managers. In Part I of this article (see Public Administration volume 83, number 1, pp. 111–33), we showed that attempts to manage this tension are being made at two levels. First, a settlement is being attempted at the level of general data protection law and the rules that govern data-sharing practices across the public sector. We refer to this as the horizontal dimension of the governance of data sharing and privacy. Secondly, settlements are also being attempted within particular fields of public policy and service delivery; this we refer to as the vertical dimension.In this second part, we enquire whether risks to privacy are greater in some policy sectors than others. We do this, first by showing how the Labour Government's policy agenda is producing stronger imperatives towards data sharing than was the case under previous administrations in three fields of public policy and services, and by examining the safeguards introduced in these fields. We then compare the settlements emerging from differing practices within each of these policy sectors, before briefly assessing which, if any, principles of data protection seem to be most at risk and in which policy contexts. Four strategies for the governance of data sharing and privacy are recapitulated – namely, seeking to make the two commitments consistent or even mutually reinforcing; mitigating the tensions with safeguards such as detailed guidelines; allowing privacy to take precedence over integration; and allowing data sharing to take precedence over privacy. We argue that the UK government has increasingly sought to pursue the second strategy and that the vertical dimension is, in practice, much more important in defining the settlement between data sharing and privacy than is the horizontal dimension. This strategy is, however, potentially unstable and may not be sustainable. The conclusion proposes a radical recasting of the way in which the idea of a ‘balance’ between privacy and data-sharing imperatives is conceived.
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    Notes: Books reviewed: Robert T. Nakamura and Thomas W. Church, Taming Regulation: Superfund and the Challenge of Regulatory ReformPaul Teske, Regulation in the StatesM. Barzelay and C. Campbell, Preparing for the Future: Strategic Planning in the US Air ForceJonathan Zeitlin and David M. Trubek (eds), Governing Work and Welfare in the New Economy: European and American ExperimentsGeoffrey Brennan and Francis G. Castles (eds), Australia Reshaped: 200 Years of Institutional TransformationNevil Johnson, Reshaping the British Constitution: Essays in Political InterpretationPhilip Haynes, Managing Complexity in the Public ServicesCatherine Bochel and Hugh M. Bochel, The UK Social Policy ProcessHandley Stevens, Transport Policy in the European UnionJonathan G.S. Koppell, The Politics of Quasi-Government: Hybrid Organisations and the Dynamics of Bureaucratic Control
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    Notes: This paper uses the concept of path dependency to examine the changes to the political management structures of English local government. We note how the possible experience of decreasing returns among some local authority actors combined with the powerful intervention of politicians within New Labour at the national level led to a significant break from past policy and the imposition of measures to establish a separate executive that was claimed as a radical step forward for local democracy. Using survey data from the Evaluating Local Governance research team (), we explore the establishment of a separate political executive in all major local authorities and map out the style of decision-making that is emerging. We find that some established institutional patterns reasserted themselves in the process of implementation, but that increasing returns are not as great as some theorists of path dependency would suggest and they may be a force for system change as well as for stability.
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    Notes: This paper is concerned with how administrators in the Housing Benefit (HB) service in Great Britain have reacted to the discretionary powers given to local authorities as a result of the introduction of Discretionary Housing Payments (DHPs). DHPs can be awarded to HB claimants deemed to require additional assistance with their housing costs. The paper first argues that the HB service can be categorized as ‘rule-bound’ before outlining the DHP regime and the nature of the discretion that it affords HB administrators. A brief review of the literature on discretionary decision making in public service organizations suggests four propositions in respect of DHP decision making. The paper then seeks to test these propositions. It concludes that in general HB administrators do not appear to have experienced the difficulties associated with discretionary decision making in rule-bound services that might have been expected on the basis of previous work in this field.
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    Notes: In order to examine institutional change in Republic of Ireland (hereinafter referred to as ‘Ireland’ or ‘the Irish case’) as a consequence of European integration, this article looks at the adaptation of national institutions subsequent to EU membership. A new institutionalist approach is taken towards the definition and discussion of institutions in order that the analysis may encompass the broadest range of changes consequent to EU membership: in relation to national structures; decision-making patterns; socialization processes; and overall ‘system change’. The analysis uses the organizing concepts offered by Bulmer and Burch (1998) in their evaluation of the impact of Europeanization on national systems of public administration in Britain. According to this framework, ‘institutions can be analysed in terms of four gradations moving from the formal, through the informal, to the normative and cultural’ (Bulmer and Burch 1998, p. 604).
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    Notes: The question can be raised whether the principal effect of interactive policy development is to shore up a (creaking) democratic system or to destabilize its very foundations. In this article, a framework is presented for assessing the democratic credentials of interactive policy development. It is based on four views on how a democracy should work: instrumental or substantial democracy and direct or indirect democracy. Critics and advocates differ in their confidence that the intended aims can ever be realized. Based on extensive case study material of interactive local policy development projects collected between 1997 and 2001, the validity of the various arguments for or against interactive policy-making is analysed. The analysis indicates that whether interactive policy development undermines or sustains democracy depends principally on the extent to which divergences in the expectations of the various groups are made explicit and unrealistic or mistaken expectations are dispelled.
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    Notes: Now that it is widely accepted that the European Union (EU) constitutes a system of governance, analysts need actively to explore precisely how it may affect the continuing struggle better to coordinate national and European administrations. In its 2001 White Paper on governance, the European Commission interpreted governance to mean less central control and more network-led steering. Its interpretation of such networks is that they are self-organizing. Drawing upon an empirical study of environmental policy integration (EPI) in the EU, this article shows that this vision may not adequately fit the multi-actor, multi-level coordination challenges associated with some EU problems. By studying the administrative capacities that the European Commission and three member states have created to achieve better environmental coordination, this article shows significant administrative weaknesses. It concludes that the coordination challenges now troubling the EU require a more thoughtful discussion of network management than the White Paper suggests.
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    Notes: Competition was one of the guiding threads of public policy under the Conservative Governments of the 1980s and 1990s. But whereas the Conservatives looked to the market primarily for the disciplining and economizing effects of competition, the Labour Government sees the market as a source of innovation and improvement. Following a brief description of these different perspectives, this paper identifies three avenues deserving of further inquiry: the costs and benefits of high trust interorganizational relationships; the way in which partnerships combine the competencies of different sectors; and finally, the extent to which the new partnerships transform public service delivery.
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    Notes: Abstract.  Recently, Oosterhaven and Stelder (2002, Journal of Regional Science, 42, 533–543) (OS) addressed the issue of measuring the economic importance of an industry. In practice, the traditional multipliers are commonly multiplied by, for example, the outputs. According to OS, this is a misuse that leads to double counting, a correction for which results in their net multipliers. In this note, I will provide an economic interpretation, which suggests that net multipliers may be a good choice for descriptive purposes. The comment by de Mesnard (2002, Journal of Regional Science, 42, 545–548) adopts a different viewpoint. Following his approach, I will show that also the common procedure—which was the central point of rejection in OS—has a sound economic interpretation. In its turn, this yields an alternative interpretation for the matrices used in supply-driven input–output models.
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    Notes: Abstract.  Business cycles in different regions of the United States tend to synchronize. This study investigates the reasons behind this synchronization of business cycles and the consequent formation of a national business cycle. Trade between regions may not be strong enough for one region to “drive” business cycle fluctuations in another region. This study suggests that regional business cycles synchronize due to a nonlinear “mode-locking” process in which weakly coupled oscillating systems (regions) tend to synchronize. There is no definitive test for mode-lock. However, simulations, correlations, Granger causality tests, tests for nonlinearities, vector autoregressions, and spectral analysis reveal modest econometric support for the regional mode-locking hypothesis of business cycle synchronization.
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    Notes: Abstract.  The paper proposes a human capital-based model of choice between paid employment and entrepreneurship that can give rise to multiple equilibria in occupational structure. The model is consistent with evidence of pronounced, persistent, and hitherto unexplained regional variations in entrepreneurship. Whether multiple equilibria emerge is shown to depend on the occupation-specific productivity of human capital and the costs of human and financial capital. The paper goes on to discuss the implications for governments seeking to promote entrepreneurship as a tool of regional development policy.
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    Notes: Abstract.  We analyze an urban spatial model to examine the possible link between urban land use and obesity. Households maximize utility defined over housing, weight, and food subject to a fixed time budget allocated to commuting, calorie expenditure, and work. Our model explains the observed correspondence between high obesity rates and low development densities, but implies that these are determined endogenously in a spatial market equilibrium. We study the sorting of residents by attributes such as income, initial weight, and weight preferences, and examine the impacts on weight and density of urban design modifications that lower the costs of calorie expenditure.
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    Notes: Abstract.  This paper draws on micro-level data to fully inform the debate on decentralization and regional development. Using labor-income trajectories of emigrants from Mexico City, the paper analyzes how the labor market in a regional city, Leon, evolves. Results from the econometric model suggest that migrants’ labor-income trajectories differ between the large agglomeration and the regional city in an early stage of the evolution of the labor market, but converge in a later stage. Specifically, the slope of the earning function for recent migrants is steeper and statistically different from the slope for early migrants. The findings presented in this paper enrich the existing theory by providing microfoundations to a typically macroeconomic area of research and enable policy makers to better understand the processes underpinning the evolution of regional labor markets.
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    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Books reviewed:Meric S. Gertler. Manufacturing Culture: The Institutional Geography of Industrial PracticeJamie Peck and Henry Wai-chung Yeung. Remaking the Global Economy: Economic-Geographical PerspectivesÅke E. Andersson, Börje Johansson, and William P. Anderson. The Economics of Disappearing DistancePriscilla Pue Ho Chu. The Making of Women Entrepreneurs in Hong KongJean-Louis Mucchielli and Thierry Mayer. Multinational Firms’ Location and the New Economic GeographyAnthony Downs. Still Struck in Traffic: Coping with Peak-Hour Traffic CongestionAnthony Downs. Growth Management and Affordable Housing: Do They ConflictYasuhide Okuyama and Stephanie E. Chang. Modeling Spatial and Economic Impacts of DisastersTony Champion and Graeme Hugo. New Forms of Urbanization: Beyond the Urban–Rural DichotomyJoseph Persky, Daniel Felsenstein, and Virginia Carlson. Does “Trickle Down” Work? Economic Development Strategies and Job Chains in Local Labor MarketsSherry L. Smith. The Future of the Southern PlainsDoryane Kermel-Torrès et al. Atlas of Thailand: Spatial Structures and DevelopmentGyörgy Enyedi and István Tózsa. The Region: Regional Development, Policy, Administration and E-GovernmentHeinz G. Preusse. The New American RegionalismYue-man Yeung and Shen Jianfa. Developing China’s West: A Critical Path to Balanced National Development
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  • 94
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    Journal of regional science 45 (2005), S. 0 
    ISSN: 1467-9787
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Abstract.  Consider two firms, at different locations, supplying a homogenous good at constant marginal production cost. Consumers incur travel costs to the firm for each unit purchased, and the travel costs increase with the amount of travel to each firm (congestion). When all traffic and all congestion are generated by travel to a duopolist, both the Nash–Bertrand equilibrium prices and the Nash–Cournot equilibrium prices exceed the sum of the marginal production cost and the marginal external travel cost. However, when the road is shared by travelers to the duopolists' facilities and travelers in competitive markets, the Nash–Bertrand duopoly price equals the competitive price and the Nash–Cournot price contains a markup.
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  • 95
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of regional science 45 (2005), S. 0 
    ISSN: 1467-9787
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Abstract.  We use the Getis/Ord local G statistic and detailed county-level industry employment data from the U.S. Bureau of Labor Statistics to isolate discrete industrial complexes—or groups of nominally linked industries clustered in particular locations—for two recent years: 1989 and 1997. We describe the characteristics of the complexes in terms of their number, spatial extent, broad regional distribution, and other factors. Data from the two periods help illustrate key shifts in industrial locations, including the continuing concentration of the apparel industry in the Southeast and the ongoing southern shift in U.S. vehicle production.
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  • 96
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of regional science 45 (2005), S. 0 
    ISSN: 1467-9787
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Abstract.  Less information about a location has long been believed to be a barrier to new migration to that location. Diverse empirical results support this belief. Here we show that if agents are risk-neutral, less information about a location not only is not a barrier to migration to that location, it is actually an attractor. Only if agents are Bayesian and risk-averse is less information a barrier.
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  • 97
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of regional science 45 (2005), S. 0 
    ISSN: 1467-9787
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Abstract.  This article adapts a regional adjustment model to examine land use change in the Rocky Mountain West region of the United States. Three interrelated questions motivate the research. How does the proliferation of urban, suburban, and exurban sprawl in the Rocky Mountain West relate to the population and employment growth process? Are population and employment endogenously determined there? And what does this imply for the sustainability of economic development in the region? Through a series of regional adjustment models, the empirical analysis links population and employment growth in the Rocky Mountain West to explicit spatial outcomes and delivers substantive evidence of endogeneity between the two. The results suggest that the long-term prosperity of the region depends on the preservation of the high quality of life it offers, and that greater intergovernmental coordination, careful infrastructure planning, and attention to the character of its economic structure may help to accomplish this. Future research should focus on looking deeper into certain explanatory variables used in this analysis and on developing a better picture of what the spatial equilibrium that regional adjustment models emulate may look like.
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  • 98
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    Journal of regional science 45 (2005), S. 0 
    ISSN: 1467-9787
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Geography , Economics
    Notes: Books reviewed:Michael W. Klein, Scott Schuh, and Robert K. Triest, Job Creation, Job Destruction, and International CompetitionCarl Davidson and Steven J. Matusz, International Trade and Labor Markets: Theory, Evidence, and Policy ImplicationsWilliam R. Black, Transportation: A Geographical AnalysisBernard Fingleton, European Regional GrowthBernard Fingleton, Ayda Eraydin, and Raffaele Paci, Regional Growth, SMEs and the Wider EuropeJulia Traistaru, Peter Nijkamp, and Laura Resmini, The Emerging Economic Geography in EU Accession CountriesJohannes Bröcker, Dirk Dohse, and Rüdiger Soltwedel, Innovation Clusters and Interregional CompetitionAlan Hyde, Working in Silicon Valley: Economic and Legal Analysis of a High-Velocity Labor MarketRobert Mark Silverman, Community-Based Organizations: The Intersection of Social Capital and Local Context in Contemporary Urban SocietyWilliam A. V. Clark, Immigrants and the American Dream: Remaking the Middle ClassBarry G. Rabe, Statehouse and Greenhouse: The Emerging Politics of American Climate Change PolicyAmrita Daniere and Lois M. Takahashi, Rethinking Environmental Management in the Pacific Rim: Exploring Local Participation in Bangkok, ThailandCenter for Sustainable Environments, Northern Arizona University, with Terralingua and Grand Canyon Wildlands Council, Safeguarding the Uniqueness of the Colorado Plateau: An Ecoregional Assessment of Biocultural Diversity
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  • 99
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    European financial management 11 (2005), S. 0 
    ISSN: 1468-036X
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: This paper uses a bivariate GARCH framework to examine the lead-lag relations and the conditional correlations between 10-year US government bond returns and their counterparts from the UK, Germany, and Japan. We find that while mean and volatility spillovers exist between the major international bond markets, they are much weaker than those between equity markets. The results also indicate that the correlations between the US and other major bond market returns are time varying and are driven by changing macroeconomic and market conditions. However, in contrast to the finding that the benefits of international diversification in equity markets evaporate during high-stress periods, we find that the benefits of diversification across major government bond markets do not decrease during periods of extremely high bond market volatility or following extremely negative US and foreign bond returns.
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    Oxford, UK; Malden, USA : Blackwell Publishing Ltd/Inc.
    European financial management 11 (2005), S. 0 
    ISSN: 1468-036X
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
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