A hedonic price function for wine is estimated using Swedish data, 1989–1991. Implicit prices for quality attributes are determined
not from a regression of variety price on a vector of quality ...attributes, but rather from a regression of quantity sold (adjusted for weeks of availability) on price and quality attributes. Such a ‘reduced form’ is justified by the assumption that prices and attribute contents can be taken as exogenous to the Swedish consumer. Price elasticity is estimated to be about — 1.65 holding quality constant, showing that Swedish consumers are highly sensitive to price. Estimates of the implicit valuations of quality attributes are shown to differ greatly from those obtained from the more usual hedonic regression with price as the dependent variable.
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Menon and Williams indicate that many United States (US) over-the-counter (OTC) firms which form audit committees appear not to rely on them (cf. Menon, K., Williams, J.D. 1994. Journal of Accounting ...and Public Policy, 13(2), 121–139). Reliance on audit committees appears to depend upon board composition, while audit committee activity is associated with firm size. In this paper, we compare the US experience and evidence on audit committees and monitoring with the position in the United Kingdom (UK), where there has been a steady growth in the number of major companies voluntarily forming audit committees over the last 15 years (Collier, P.A. 1996. Accounting, Business and Financial History 6(2), 121–140). We contend that the dataset is best analyzed using the Heckman procedure (cf. Heckman, J.A. 1979. Econometrica 47(1), 153–161) which captures the two stages of the decision on audit committee activity.
Our results show little support from the UK data for the findings of Menon and Williams (cf. Menon and Williams, 1994. Journal of Accounting and Public Policy 13(2), 121–139). However, consistent with their agency theoretic perspective of monitoring, we found that high quality (Big Six) auditors, and to some degree leverage have a positive relationship with audit committee activity. Contrary to an agency theoretic expectation, we found that audit committee activity is reduced in firms that combine the role of chairman and chief executive. On the basis of this result we explored the impact of insiders (executive directors) and found that their presence on an audit committee had a significant negative impact on audit committee activity. This result suggests that the emphasis placed by the US Securities and Exchange Commission (SEC) (Staff Report on Corporate Accountability, US Government Printing Office, Washington, DC, 1980, p. 491) and the Cadbury Committee (Committee on the Financial Aspects of Corporate Governance. 1992. Report of the Committee on the Financial Aspects of Corporate Governance. Gee, London) on the independence of audit committee members may be well founded.
The reduction in audit committee activity that arises from the combination of the role of chairman and chief executive officer, and the presence of insiders on the audit committee, has important policy implications. Indeed, in the UK, both practices are the subject of recommendations in the Hampel Committee report Hampel Committee 1998. Committee on Corporate Governance. Gee, London.
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The year 1989 brought political upheavals in Central, Eastern and Southern Europe, the effects of which have not yet ended. The political discourse of the Cold War period disintegrated and gave way ...to competing alternatives. The contributors to this book are linguists, discourse analysts and social scientists, from all corners of the continent, whose tools of analysis shed light on the crucial two years of transition during which political concepts and political interaction changed in dramatic and sometimes violent ways.
According to the permanent income hypothesis with quadratic preferences, households save for a rainy day the transitory component of income innovations and consume entirely the permanent one. The ...model also rules out precautionary saving. Typically, income shock components are not separately observable, and information on the conditional variance of income is hard to come by. We show bow to combine income realizations with subjective expectations to identify separately the transitory and the permanent shock to income and to obtain a measure of idiosyncratic uncertainty, thus providing a powerful test of the theory in short panels. The empirical analysis is performed on a sample of Italian households drawn from the 1989-1991 Survey of Household Income and
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This article uses U.S. food consumption data to examine the effect of maternal nutrition knowledge on the dietary intakes of children between two and seventeen years of age. Results show that ...maternal knowledge influences children's diets and that such influence decreases as children grow older. Nutrition knowledge acts as a pathway through which maternal education influences children's diets. This finding supports the hypothesis that education affects health-related choices by raising the allocative efficiency of health input use. The results suggest that nutrition education may be more effective if targeted both toward mothers with young children and directly toward school-age children.
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A large portion of the more contemporary tax capitalization literature infers a measure of market irrationality in that housing market participants fail to fully discount the purchase price of ...housing to account for variations in tax liabilities. However, the empirical results described suggest that recent literature continues to be plagued by spurious correlation between public services and taxes, a problem that since Oates (1969) has been a focal point of past critiques. Data with substantial variations in taxes but without corresponding variations in public services are used, and a considerably higher degree of tax capitalization is obtained.
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Relacja mówiona zarejestrowana w ramach Programu Historia Mówiona realizowanego w Ośrodku "Brama Grodzka - Teatr NN" (www.historiamowiona.teatrnn.pl). Wyraża ona wyłącznie subiektywne wspomnienia i ...poglądy świadka historii, które nie mogą być utożsamiane z oficjalnym stanowiskiem Ośrodka.
Measuring the Liquidity Effect Hamilton, James D.
The American economic review,
03/1997, Volume:
87, Issue:
1
Journal Article
Peer reviewed
This paper measures the effect on the federal funds rate of an open-market operation. The paper deals with simultaneous-equations bias by developing a proxy for the errors the Federal Reserve makes ...in forecasting the extent to which Treasury operations will add or drain reserves available to private banks. These errors induce fluctuations in bank reserves which have measurable consequences for the federal funds rate. The paper estimates that a reduction in nonborrowed reserves of $30 million, if sustained for an entire 14-day reserve maintenance period, will cause the federal funds rate to rise by 10 basis points.
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19.
Do Riskier Borrowers Borrow More? Harrison, David M.; Noordewier, Thomas G.; Yavas, Abdullah
Real estate economics,
September 2004, Volume:
32, Issue:
3
Journal Article
Peer reviewed
Conventional wisdom in the mortgage industry holds that loan‐to‐value (LTV) ratios are positively correlated with mortgage default rates. However, not all empirical studies of mortgage loan ...performance support this view. This paper offers a theoretical signaling model of why the correlation between LTV ratios and default risk is contingent upon the default costs of the borrower. Specifically, the model proposes that when default costs are high there exists a separating equilibrium in which risky borrowers will self‐select into lower LTV loans to reduce the probability of facing a costly default, while safe borrowers will self‐select into higher LTV loans as a signal of their enhanced creditworthiness. This adverse selection process gives rise to the possibility of higher default probabilities for lower LTV loans. Conversely, when default costs are low the conventional result, in which risky borrowers select higher LTV loans than safe borrowers, is obtained. Empirical results, based on a sample of 859 single‐family residential mortgage loans drawn from the portfolio of a national mortgage lender, are consistent with the separating equilibria predicted by the model.
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Prior research has found negative impacts of public housing on neighborhood quality. Few studies have examined the impact of public and other assisted housing programs on real estate prices, ...particularly differential impact by program type. In this study, federally assisted housing units by program type are aggregated by 1/8- or 1/4-mile radii around individual property sales and regressed on sales prices from 1989 through 1991, controlling for area demographic, housing, and amenity variables.
Results show that public housing developments exert a modest negative impact on property values. Scattered-site public housing and units rented with Section 8 certificates and vouchers have slight negative impacts. Federal Housing Administration-assisted units, public housing homeownership program units, and Section 8 New Construction and Rehabilitation units have modest positive impacts. Low-Income Housing Tax Credit sites have a slight negative effect. Results suggest that homeownership programs and new construction/rehabilitation programs have a more positive impact on property values.
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