A Dynamic Model of Demand for Houses and Neighborhoods

This paper develops a dynamic model of neighborhood choice along with a computationally light multi‐step estimator. The proposed empirical framework captures observed and unobserved preference heterogeneity across households and locations in a flexible way. We estimate the model using a newly assembled data set that matches demographic information from mortgage applications to the universe of housing transactions in the San Francisco Bay Area from 1994 to 2004. The results provide the first estimates of the marginal willingness to pay for several non‐marketed amenities—neighborhood air pollution, violent crime, and racial composition—in a dynamic framework. Comparing these estimates with those from a static version of the model highlights several important biases that arise when dynamic considerations are ignored.     

Optimal Digital Rights Management with Uncertain Piracy

Many firms that sell digital copies of copyrighted materials online face a common dilemma: the use of digital rights management (DRM) to impede pirates can impose restrictions on legitimate use. We introduce a two‐period model in which the use of DRM in the first period affects the probability that a consumer finds a pirated copy in the second period; the threat of legal action reduces consumers’ consumption of pirated copies; and firms choose whether to sell, and at what prices, either strongly or weakly DRM‐protected products, or both. Furthermore, we incorporate the role of uncertainty concerning future levels of piracy. Using a two‐period model with uncertainty, we investigate a firm's optimal DRM strategies and present the optimal pricing strategy as well as product launch strategy under different market conditions. We find that one important characteristic of the optimal strategy is that it is optimal to maintain the same product line configuration strategy for both periods. We also characterize the conditions under which each strategy is optimal.     

Abuse of elderly male client: efforts and experiences in rural and urban adult protective services

Elder abuse has not been viewed as seriously as child abuse because of the emotional sensibilities attached to child abuse. Although elder abuse is experienced disproportionately by women, men also are in need of protection and engagement. An important factor for understanding the work with elderly men is the social construction of manhood. Both urban and rural settings recognize this as a significant starting point to engage men in services. This paper describes the efforts in both rural and urban Adult Protective Service agencies to identify and work with abused elderly men from a strengths and solution-focused perspective.     

Staying safe while consuming alcohol: a qualitative study of the protective strategies and informational needs of college freshmen

OBJECTIVE: In this qualitative study, the authors examined how students attempt to minimize harm to themselves and others when drinking. PARTICIPANTS: The authors recruited freshmen at a large, mid-Atlantic US public university during the fall semester of 2005 to participate in 8 focus groups. METHODS: The moderator's guide was developed through an iterative process that included input from experts and pilot testing. The researchers audiotaped focus group conversations, transcribed them, and subjected them to an interrater reliability check. Analysis was based on the framework of Information-Motivation-Behavioral Skills Model and a phenomenological approach. RESULTS: College students have a repertoire of coping strategies they use in an attempt to safeguard themselves and their friends from harm when drinking. Strategies encompass planning a safe context for drinking, using safety measures to minimize harm when drinking, and taking care of someone who has consumed too much alcohol. CONCLUSIONS: A harm-reduction focus that acknowledges and builds on existing protective strategies may be a promising avenue for alcohol interventions.     

Community-managed water supplies in Africa: sustainable or dispensable?

Over the past two decades, community management has become theprevalent model for management of rural water supplies throughoutsub-Saharan Africa. Despite its widespread popularity amongdonors and implementing agencies, low water supply sustainabilitylevels throughout the sub-continent indicate that it is notthe panacea it is often presented to be. There is a strong needto distinguish between ‘community participation’which is a prerequisite for sustainability and ‘communitymanagement’ which is not. If community management systemsare to be sustainable, they require ongoing support from anoverseeing institution to provide encouragement and motivation,monitoring, participatory planning, capacity building, and specialisttechnical assistance. If such support is not available, alternativessuch as household water supplies and private sector servicedelivery should be considered.     

The Experience-Earnings Profile: Productivity-Augmenting or Purely Contractual? Evidence from the UK

We test the human capital interpretation of the experience-earnings profile. Does the upward sloping portion of the experience-earnings profile reflect on-the-job training which in turn causes the experience-productivity profile to slope upwards, or do purely contractual factors determine the nature of life-cycle earnings. Herein, we provide additional evidence on the relationship between productivity and earnings by examining earnings differentials in the UK academic labor market for economists. Using a test first suggested by Mincer, we find that the empirical results are consistent with human capital theory. We find that, although the positive relationship between earnings and experience persists when individual productivity measures are included in the salary equations for lecturers and senior lecturers, the positive relationship becomes statistically insignificant when the same productivity measures are included in the salary equations for professors. For lecturers and senior lecturers, the experience-salary profile properly reflects the structure of the national pay scale rather than variations in individual research productivity. At the professor level, where individual salaries are not determined by a pay scale, the data support the human capital explanation of the positive experience-earnings profile.

A NOTE ON HOLDING COSTS AND LOT-SIZE ERRORS

This note examines the sensitivity of the basic economic-order-quantity inventory model to lot-size errors when holding costs are assumed to be a strictly increasing (though not necessarily linear) function of average inventory. In particular, we show that the penalty associated with ordering either too much or too little is a function not only of the size of the error but of the shape of the holding-cost curve as well. We demonstrate that, under certain conditions, even relatively small lot-size errors can be extremely costly.     

FORECAST EVALUATION OF LIVINGSTON DATA ON INFLATION RATES AND INFLATION UNCERTAINTY*

Livingston data on expected inflation rates have been used extensively in the financial literature, especially in investgating the relationship between nominal interest rates and expected inflation rates; however, the data have not been subjected to a thorough analysis of forecast accuracy. The objective of this paper is to analyze the forecast properties of Livingston data using a wide variety of time and frequency domain methods over an extended sample period and for selected subperiods.     

STOCHASTIC COST-VOLUME-PROFIT ANALYSIS WITH A LINEAR DEMAND FUNCTION

In this paper we incorporate a linear demand function to model the price-volume causal relationship into stochastic cost-volume-profit (CVP) analysis. We assume that the objective function is to maximize expected profit; other objective functions are also discussed and compared. A linear stochastic model follows from which probabilistic statements can be easily obtained if the random variables are assumed to be multivariate normal. The basic framework is shown to be a special case of project value maximization where project value is the cash flow of the project discounted for time and risk according to the capital asset pricing model. Moreover, an intertemporal extension that considers inventory is developed. In summary, a new approach to stochastic CVP analysis that incorporates the management decision process in an uncertain environment is developed.