Quantity Discount‐Based Inventory Coordination: Effectiveness and Critical Environmental Factors

It is understood that quantity discounts provide a practical foundation for coordinating inventory decisions in supply chains. The primary objective of this research is to test, under a variety of environmental conditions, the effectiveness of quantity discounts as an inventory coordination mechanism between a buyer and a supplier. A comprehensive simulation experiment with anova has been designed to investigate the impacts of (1) choice of quantity discount‐based inventory coordination policies, (2) magnitude of demand variation, (3) buyer's and supplier's relative inventory cost structure, and (4) buyer's economic time‐between‐orders on the effectiveness of supply chain inventory coordination. The analytical results confirm that the quantity discount policies have managerial properties as a mediator for inventory coordination. The results also show that the performance of quantity discount‐based inventory coordination policies is influenced significantly by environmental factors, such as the magnitude of demand variation, the buyer's and the supplier's inventory cost structure, and the buyer's economic time‐between‐orders.     

LIQUIDITY AND CONTAGION: THE CRISIS OF 1763

The financial crisis that swept across northern Europe in 1763 bears a strong resemblance to more recent episodes of financial distress. The combination of the specific contractual arrangements at the time, interlocking credit relationships, and the high leverage of market participants triggered distress sales of assets, leading to a severe liquidity crisis. Hence, the crisis is an early instance of contagion on the asset side of the balance sheet. We highlight the salient features of the 1763 crisis and propose a stylized model of the events. While the financial institutions have changed fundamentally in the intervening 200 or so years, the underlying problems appear to be universal. (JEL: 6621, E44, N23)     

Assessing point forecast accuracy by stochastic error distance

ABSTRACT

We propose point forecast accuracy measures based directly on distance of the forecast-error c.d.f. from the unit step function at 0 (“stochastic error distance,” or SED). We provide a precise characterization of the relationship between SED and standard predictive loss functions, and we show that all such loss functions can be written as weighted SEDs. The leading case is absolute error loss. Among other things, this suggests shifting attention away from conditional-mean forecasts and toward conditional-median forecasts.     

How Can we Achieve a Sustainable Redistributive Policy? Rethinking the Relationship Between Civic Engagement,Neighborhood Relationship and Labor Market Status

Social Indicators Research - The aim of this article is to examine the effect of social relations on support for redistribution and to explore desirable forms of redistribution based on mutual...     

From FOB to cool: Transnational migrant students in Toronto and the styling of global linguistic capital

Globalization and the rise of ‘Korean cool’ provide middle‐class Korean yuhaksaeng (visa students) in Toronto with resources they can mobilize as strategies of distinction. In their construction of themselves as new transnational subjects with hybrid identities that are simultaneously global and Korean, yuhaksaeng deploy re‐valued varieties of Korean language and culture as stylistic resources in the globalized new economy. In this process, yuhaksaeng contest their marginal positions as ‘FOBs’ (Fresh‐Off‐the‐Boats) and ‘Nerds’ in dominant Western racial discourse, and construct themselves as wealthy, modern, and cosmopolitan ‘Cools’vis‐à‐vis long‐term immigrants in local Korean diasporic communities as well as Canadians. The stories of yuhaksaeng illustrate how notions of ‘global’ and ‘local’ linguistic resources are transformed under the material conditions of globalization and its structures of inequality. ???? ‘??? ?’? ??? ???? ???? ??? ?? ????? ???? ?? ???? ?? ??? ????. ????? ???? ?? ??? ?????? ??? ????? ?? ??? ???, ???? ??????? ??? ???? ??? ???? ?? ??? ???? ??? ?????? ?? ???? ????. ? ???? ????? ??? ??? ?? ?????? ‘FOBs’ (Fresh‐Off‐the‐Boats) ? ‘Nerds’ ? ?? ??? ???? ????, ???? ???? ???? ?????? ??? ??? ??????? ????, ???? ???? ???????? ‘?’? ???? ????. ? ?? ??? ????? ???? ???? ??? ??? ? ???? ?? ??? ????? ???? ???? ??? ?????? ??? ????. [Korean]     

Avowed Happiness in Confucian Asia: Ascertaining its Distribution,Patterns, and Sources

This study reviewed three philosophical accounts of happiness, and then tested those accounts with the Asiabarometer surveys conducted in six Confucian societies during the summer of 2006. Statistical analyses of these surveys reveal that East Asians tend to experience happiness to a greater extent when they experience enjoyment together with achievement and/or satisfaction. The preponderance of such multi-dimensional conceptions in all those societies poses a direct challenge to a single dimensional account of happiness in the West. The analyses also reveal that positive assessments of interpersonal relationships matter more than the amount of knowledge or wealth in living a happy life in Confucian societies.

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MANAGING R&D IN VERTICAL RELATIONSHIPS

We study the optimal strategy for research and development (R&D) in a buyer‐supplier relationship. The buyer chooses whether to (1) insource a cost‐reducing R&D to its own research‐subunit or to (2) outsource it to its manufacturing supplier. The buyer cannot observe the R&D effort in either case, but can better observe the R&D result when the R&D is conducted internally. According to our analysis, the buyer prefers insourcing R&D to mitigate information asymmetry when the R&D cost is either small or large. When the R&D cost is intermediate, however, the buyer prefers outsourcing R&D, and can achieve the full information outcome (first‐best outcome) despite the information asymmetry associated with outsourcing R&D. Moreover, the buyer's preference for outsourcing high‐cost R&D increases when the R&D is more likely to succeed or to generate significant cost reductions, or the R&D result is more difficult to predict. Our analysis provides a theoretical explanation for the increasing trend of outsourcing innovation to manufacturing suppliers. (JEL D82, L22, L23)     

Vector error correction heterogeneous autoregressive forecast model of realized volatility and implied volatility

A vector error correction model is proposed for forecasting realized volatility which takes advantage of the cointegration relation between realized volatility and implied volatility. The model is constructed by adding a cointegration error term to a vector-and-unit-root version of the heterogeneous autoregressive (HAR) model of Corsi (2009 Corsi, F. 2009. A simple approximate long-memory model of realized volatility. Journal of Financial Econometrics 7 (2):174–96. [Google Scholar]). The proposed model is easier to implement, extend, and interpret than fractional cointegration models. A Monte Carlo simulation and real data analysis reveal advantages of the proposed model over other existing models of Corsi (2009 Corsi, F. 2009. A simple approximate long-memory model of realized volatility. Journal of Financial Econometrics 7 (2):174–96. [Google Scholar]), Busch Christensen and Nielsen (2011 Busch, T., B. J. Christensen, and M. Nielsen. 2011. The role of implied volatility in forecasting future realized volatility and jumps in foreign exchange, stock, and bond markets. Journal of Econometrics 160 (1):48–57. [Google Scholar]), Cho and Shin (2016 Cho, S. J. and D. W. Shin. 2016. An integrated heteroscedastic autoregressive model for forecasting long-memory volatilities. Journal of the Korean Statistical Society, 45:371–380. [Google Scholar]), and Bollerslev Patton, and Quaedvlieg (2016 Bollerslev, T., A. J. Patton, and R. Quaedvlieg. 2016. Exploiting the errors:A simple approach for improved volatility forecasting. Journal of Econometrics 192:1-18. [Google Scholar]).     

A practical extension of the generalized estimating equation approach for longitudinal data

Liang and Zeger (1986) proposed an extension of generalized linear models to the analysis of longitudinal data. In their formulation, a common dispersion parameter assumption across observation times is required. However, this assumption is not expected to hold in most situations. Park (1993) proposed a simple extension of Liang and Zeger's formulation to allow for different dispersion parameters for each time point. The proposed model is easy to apply without heavy computations and useful to handle the cases when variations in over-dispersion over time exist. In this paper, we focus on evaluating the effect of additional dispersion parameters on the estimators of model parameters. Through a Monte Carlo simulation study, efficiency of Park's method is compared with the Liang and Zeger's method.