Cost Approach (cost + approach)

Distribution by Scientific Domains


Selected Abstracts


Political Parties, Political Integrity and Public Policy: a ,Transactions Costs' Approach

POLITICAL STUDIES, Issue 1 2001
Philip Jones
Increasing concern about political ,sleaze' prompted the establishment, in 1995, of the Standing Committee of Standards in Public Life and the announcement, in 1999, of proposals to reform political party finance in the UK. A ,public choice' analysis predicts ,opportunism' by representatives at the expense of ,rationally ignorant' voters. It commends constitutional constraints to restrict the range of policy options open to representatives. By contrast, a ,transactions costs' approach suggests that electoral competition can offer protection when voters rely on ,party signal' as a low cost information source. If voters reduce transactions costs by relying on party signal, politicians have an incentive to maintain party reputation. Representatives are more willing than might otherwise be anticipated to accept the need for regulation if this serves to protect reputation. [source]


The Performance Effects of Business Groups in Russia

JOURNAL OF MANAGEMENT STUDIES, Issue 3 2009
Saul Estrin
abstract This study analyses the impact of business group affiliation on firm performance during a time when business groups are newly formed, when the economic and institutional environment is changing, and when group survival is uncertain. Based primarily on a transaction cost approach, we develop two hypotheses, concerning profitability and risk sharing (redistribution) respectively. The positive profitability hypothesis proposes that company affiliation with a business group directly and positively affects the profitability of each affiliate. A positive direct effect emerges when each affiliate benefits from access to group resources. The redistribution hypothesis considers the simultaneous possibility that inter-affiliate transfers of resources through internal markets are designed to redistribute profits among group members. We argue that variance-reducing redistribution from strong to weak group members is linked to group survival in times of institutional change. Our empirical approach focuses on testing these two linked hypotheses (and their alternatives) using a relatively large, contemporary and time varying database of Russian firms. We also develop a framework that distinguishes among the four possible empirical outcomes associated with the hypotheses. Our results provide unambiguous support for the case where the impact of group membership on profitability is positive and redistribution is variance-reducing. We term this outcome Business Group Robustness, and contrast it with other possible empirical outcomes. [source]


A Transaction Cost Primer on Farm Organization

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 4 2000
Douglas W. Allen
Agricultural economists, with their knowledge of farming, are well positioned to take advantage of the fertile ground of economic organization. The transaction cost paradigm is particularly useful in addressing such questions and is outlined in this paper. The overriding theme in the transaction cost approach is that patterns of ownership and contracts are chosen to mitigate transaction costs, which result from attempts to establish and maintain property rights. In agriculture, transaction costs are heavily influenced by Mother Nature. Nature's uncertainty, via weather and pests, leads to moral hazard and seasonal forces impose constraints on production cycles that are not often found in the production of most other commodities. Applications in land contracts, asset control, and business organization are discussed. [source]


Treatment technology for remediation of wood preserving sites: Overview

REMEDIATION, Issue 3 2000
Edward R. Bates
This is the first in a series of five articles describing the applicability, performance, and cost of technologies for the remediation of contaminated soil and water at wood preserving sites. Site-specific treatability studies conducted under the supervision of the United States Environmental Protection Agency (US EPA), National Risk Management Research Laboratory (NRMRL), from 1995 through 1997 constitute much of the basis for the evaluations presented, although data from other treatability studies, literature sources, and actual site remediations have also been included to provide a more comprehensive evaluation of remediation technologies. This article provides an overview of the wood preserving sites studied, including contaminant levels, and a summary of the performance of the technologies evaluated. The subsequent articles discuss the performance of each technology in more detail. Three articles discuss technologies for the treatment of soils, including solidification/stabilization, biological treatment, solvent extraction and soil washing. One article discusses technologies for the treatment of liquids, water and nonaqueous phase liquids (NAPLS), including biological treatment, carbon adsorption, photolytic oxidation, and hydraulic containment. The reader should be aware that other technologies including, but not limited to, incineration, thermal desorption, and base catalyzed dehalogenation, also have application for treating contaminants on wood preserving sites. They are not discussed in these five articles since the focus was to evaluate lesser known and hopefully lower cost approaches. However, the reader should include consideration of these other technologies as part of any evaluation or screening of technologies applicable to remediation of wood preserving sites. [source]


Trade costs in empirical New Economic Geography

PAPERS IN REGIONAL SCIENCE, Issue 3 2010
Maarten Bosker
Trade costs; New Economic Geography; market access Abstract Trade costs are a crucial element of New Economic Geography (NEG) models. Without trade costs there is no role for geography. In empirical NEG studies the unavailability of direct trade cost data calls for the need to approximate these trade costs by introducing a trade cost function. In doing so, hardly any attention is paid to the (implicit) assumptions and empirical consequences of the particular trade cost function used. Based on a meta-analysis of NEG market access studies as well as on the results of estimating the NEG wage equation for a uniform sample while using different trade costs functions, we show that the relevance of the key NEG variable, market access, depends nontrivially on the choice of trade cost function. Next, we propose an alternative way to approximate trade costs that does not require the specification of a trade cost function, the so called implied trade costs approach. Overall, our results stress that the specification of trade costs can matter a lot for the conclusions reached in any empirical NEG study. We therefore call for a much more careful treatment of trade costs in future empirical NEG studies. Resumen Los costos de comercio son un elemento crucial de los modelos de la Nueva Geografía Económica (NEG, siglas en inglés). Sin los costos de comercio no hay un rol para la geografía. En estudios empíricos de NEG, la falta de disponibilidad de datos de costos directos de comercio directo crea la necesidad de estimar estos costos de comercio mediante la introducción de una función de costos de comercio. Al hacer esto, apenas se presta atención a las suposiciones (implícitas) y consecuencias empíricas de la función de costo utilizada en particular. Basado en un meta análisis de estudios de acceso de mercado de NEG, así como en los resultados de estimar la ecuación salarial de NEG para una muestra uniforme al tiempo que utilizando diferentes funciones de costos de comercio, mostramos que la relevancia de la variable clave para la NEG, acceso a mercados, depende considerablemente de la elección de la función de costos de comercio. A continuación, proponemos una alternativa para estimar costos de comercio que no requiere especificar una función de costos de comercio, el llamado enfoque de costos de comercio implícitos. En resumen, nuestros resultados insisten en que el especificar los costos de comercio puede tener mucha importancia para las conclusiones alcanzadas en cualquier estudio empírico de NEG. Pedimos por tanto un tratamiento mucho más cuidadoso de los costos de comercio en futuros estudios empíricos de NEG. [source]


Political Parties, Political Integrity and Public Policy: a ,Transactions Costs' Approach

POLITICAL STUDIES, Issue 1 2001
Philip Jones
Increasing concern about political ,sleaze' prompted the establishment, in 1995, of the Standing Committee of Standards in Public Life and the announcement, in 1999, of proposals to reform political party finance in the UK. A ,public choice' analysis predicts ,opportunism' by representatives at the expense of ,rationally ignorant' voters. It commends constitutional constraints to restrict the range of policy options open to representatives. By contrast, a ,transactions costs' approach suggests that electoral competition can offer protection when voters rely on ,party signal' as a low cost information source. If voters reduce transactions costs by relying on party signal, politicians have an incentive to maintain party reputation. Representatives are more willing than might otherwise be anticipated to accept the need for regulation if this serves to protect reputation. [source]