Showing papers in "research memorandum in 1997"

Three-Class Association Schemes

Abstract: We study (symmetric) three-class association schemes.The graphs with four distinct eigenvalues which are one of the relations of such a scheme are characterized.We give an overview of most known constructions, and obtain necessary conditions for existence.A list of feasible parameter sets on at most 100 vertices is generated.

Strategic and tactical asset allocation and the effect of long-run equilibrium relations

Abstract: This article focuses on the relevance of long-term equilibrium relations for financial decision making. Special attention is devoted to optimal asset allocation in the presence of possibly cointegrated time-series, e.g., asset prices. Using a stylized asset allocation problem, the link is established between the number of cointegrating relations and their precise form on the one hand, and the optimal asset allocation on the other hand. The paper disentangles the different effects of long-term relations on optimal asset allocation with different planning horizons: error-correction mainly affects tactical asset allocation, while cointegration affects strategic asset allocation. The paper also presents results on the effects of incorporating an incorrect number of error-correction mechanisms in financial decision models. Mis-specifying the number of cointegrating relations in a scenario generator can induce either inefficient or overly risky financial management decisions. The findings are illustrated using a stylized empirical example from currency management.

Outlier robust cointegration analysis

Abstract: Standard unit root tests and cointegration tests are sensitive to atypical events such as outliers and structural breaks. This paper uses outlier robust estimation techniques to reduce the impact of these events on cointegration analysis. As a byproduct of computing the robust estimator, we obtain weights for all observations in the sample. These weights can be used to identify the approximate dates of the atypical events. We evaluate our method using some illustrative simulated data. Furthermore, since our robust approach involves a few additional decisions on the values of key parameters, we investigate the sensitivity of our method through extensive Monte-Carlo simulations. Finally, we present an empirical example based on real-life data to show that OLS-based cointegration tests can spuriously indicate stationarity.

The development of national governance principles in The Netherlands

Abstract: This paper explores how the connections between governance principles, collective actors and workplace relations have developed in the Dutch business system. In order to identify the governance principles (Kristensen, 1997) which regulate the formation and interaction of social groupings in the Netherlands, attention will first be directed to the geographical and socio-economical characteristics of late-medieval `Holland'' and, next, to the early history of the Republic of the Netherlands (17th century) when the rebellious Dutch provinces gained unity and identity in their combat against the Spanish overlordship and the ubiquitous water, and when merchant elites grasped the opportunities offered by the expanding oversees trade and the favourable location of the maritime part of the Netherlands. It will be argued that the development of governance principles and the formation of collective economic and institutional actors in the Netherlands, must be understood in terms of: a) the late-medieval and early-modern agrarian and commercial activities (cattle-farming, fishing, and trading), which were not governed by a feudal owner class or centralised kingdom, but supported by municipal bourgeois (`burghers''), b) the winning of land from the sea and securing it through dikes and dams, which has seen the rise of partly voluntary associations, founded on the cooperative principles of quasi-government through peer control, and, c) the emergence of large trade companies, `proto-MNCs'', which were coordinated by a group of `Heeren'' (`Gentlemen''): rather collegiate `management teams'' representing the interests of local and regional governments. These phenomena and processes have generated a distinctively Dutch pattern of constituting and regulating social groups which continues to dominate work organisation and workplace relations in the Netherlands. The central regulatory or governance principle that has become established can be summarised as the strong preference for compromise and consensus among peers, and I shall conclude the paper by a brief disciussion of how this has continued to influence the functioning of large complex organisations that developed in the 20th century.

Sector firm and management performance in The Netherlands : the role of national governance and institutions

Abstract: Paper presented to the fourth EMOT-workshop, theme 1, Economic performance outco- 1 mes in Europe, Berlin, January 30-February 1, 1997 This paper discusses performance characteristics and differences at three levels: at sector, firm and top management level. First, it explores the extent to which the particularities of the Dutch business system history influence the economic performance of different types of firms and sectors in the Netherlands. Elaborating on earlier work on the Dutch business system (Iterson and Olie, 1992; van Dijk and Punch, 1993: Sorge and Iterson, 1995, Iterson, 1997), it will be hypothesised which sectors and types of firms will prosper in the socio-institutional context and which sectors and types of firms will not. For instance, it will be brought forward that the agricultural sector, the mineral fuels and chemicals sector, the foods and detergents sector, the transport and transshipment sector and the financial services sector have emerged in a favourable socio-institutional context whereas the steel and the car sector have not. As to different types of firms, it will be brought forward that family-owned and state-owned companies are much less dominant in the Netherlands than public limited liability companies. At firm level, special attention will be given to the large multinational corporations, such as the Royal Dutch Shell Group, Unilever, AKZO, DSM and Philips. Secondly, the socially constructed managerial capabilities and discretion - again, related to economic performance - will be explored in this paper. They are to be understood as an outcome of the idiosyncratic formation of social groups in the Netherlands and the related emergent governance principles (Cf. Kristensen, 1995), which is known as `pillarisation''.

Dutch experiences in reforming social insurance and implementing active labour market policy in 1987-1995

Abstract: Deze studie geef?n overzicht van veranderingen in het socialezekerheidsstelsel en het actief arbeidsmarktbeleid in Nederland in de periode 1987-1995. Daartoe worden achtereenvolgens de beleidsdoelstellingen, -maatregelen en -evaluaties van deze veranderingen besproken. Ook worden nog bestaandeproblemen ge and iuml;nventariseerd en nieuwe maatregelen aangedragen. Drie verschillende benaderingen worden daarbij onderscheiden: de stelselherzieningvan 1987, de herijking van deverantwoordelijksheidsverdeling en de combinatie met actief arbeidsmarktbeleid. Deze strategie-en vullen elkaar aan omdat zij gezamenlijk bijdragen aande toekomstige betaalbaarlreid van de sociale zekerheid en de financi-ele prikkels op de arbeidsmarkt vergroten.

Multicriteria evaluation of sustainable agricultural land use. A case study of Lesvos

Abstract: Sustainable agriculture has become an important policy orientation in the area of land use. It serves as an analysis framework to reconcile conflicting interests. In the paper the notion of sustainable agriculture will be operationalized by using the concept of environmental utilisation space. This concept offers critical threshold values for various socio-economic and environmental indicators.The paper allows for flexibility and variability in expert opinion on sustainable agriculture by distinguishing various ranges of carrying capacity. Pending on the seriousness of the social costs involved, a ‘flag model’ is used to analyze the various trade-offs. Next, a multicriteria method using the Regime method is introduced in order to identify compromise solutions.The (stepwise) sustainability methodology will be applied to the case of agricuIture on the island of Lesvos, Greece. The Lesvian agriculture is faced with the threat of erosion and degradation caused by various interlinked developments. Three policy orientations on agriculture on Lesvos are evaluated by means of the flag evaluation method and the Regime method. According to the flag approach, a policy of structural support leads to the most sustainable situation. The scenario of environmental care in agriculture is next the most sustainable, while the scenario of liberalisation of agricultural markets and agricultural trade performs worst. This outcome corresponds to the majority of the outcomes of the Regime evaluation. Thus, the sustainability and continuity of agriculture seems to be best served by public, socio- economic support. Liberalisation of agricultural markets may certainly also be opted for, but would make the future of Lesvos undecisive.

The impact of accessibility on the valuation of cities as location for firms

Abstract: In this paper the relation between the attractivity of cities as a location for firms and the accessibility via the road network is analyzed. First a brief theoretical introduction on the relation between transport infrastructure and spatial patterns of economic activities is given. In the remainder of this paper the relation between the attractivity of cities as industrial sites, the image of cities and the accessibility of these cities via the road network is analyzed in an empirical study for the Netherlands. The correlation and the regression analysis both indicate a strong coherence between the valuation of cities as location sites for companies and the relative position of those cities in the Dutch road network

The confusing state of the art in top management composition studies: A theoretical and empirical review

Abstract: The purpose of this paper is to provide a theoretical and empirical review of the literature on top management composition. This research is theoretically inspired by the old tradition of group dynamics research and later insights into the effects managers have in shaping the course and fates of organisations. Throughout this paper we will develop a conceptual model linking team composition, behaviour and results. The paper also provides a critical discussion of the empirical findings in relation to the model and identifies some theoretical and empirical shortcomings in the research carried out so far.

A meta-approach to investigate the variance in transport cost elasticities. A cross-national European comparison

Abstract: Results from past studies on transport elasticities show a large variance. The aim of this paper is to assess key factors that influence the sensitivity of travellers to transport costs in Europe, by carrying out a comparative analysis of the different elasticity values of demand for transport that are being used in some of the different Member States. Our empirical base are elasticity studies in four different European countries, namely Norway, Finland, The Netherlands and the UK. We are dealing here with a data set consisting of a limited number of observations (i.e. elasticity study results), thus we are facing a high level of uncertainty. Therefore, our in-depth analysis of these causes is based on a meta-analytic approach. Such an approach can be used to extract lessons from a limited set of different research studies. The specific meta-analytic method used is called rough set analysis. The paper starts with a description of the concept of transport price elasticity. It succeeds with a review of the literature. Then an in- depth analysis of possible causes of variances between elasticity values across the four European countries is presented based on rough set analysis. It appears that the emerging importance from the literature of the difference between aggregate, empirical-based research methods and the use of disaggregate choice models, as well as model assumptions, for explaining the variance in elasticity values across studies are largely supported by our rough set analysis. From this analytical approach it also appears that the country involved, the number of competitive modes and type of data collected have a relative strong explanatory power for the size of elasticities.

Incidence matrix games

Abstract: We consider the two-person zero-sum game in which the strategy sets for Players I and II consist of the vertices and the edges of a directed graph respectively. If Player I chooses vertex v and Player II chooses edge e, then the payoff is zero if v and e are not incident and otherwise it is 1 or -1 according as e originates or terminates at v. We obtain an explicit expression for the value of this game and describe the structure of optimal strategies. A similar problem is considered for undirected graphs and it is shown to be related to the theory of 2-matchings in graphs.

Models and Scenarios for European Freight Transport Based on Neural Networks and Logit Analysis

Abstract: In this paper, we analyse interregional freight transport movements in Europe with a view on new spatial patterns based on transport economic scenarios for environmental sustainability. Two different approaches are compared, viz. the logit model and the neural network model.

Work, authority and participation : the scenario of circular organizing

Abstract: Two antagonistic tendencies in the way work is organized can be observed in Europe and the North-American continent. First, there is the growing tendency toward more efficient and flexible modes of organizing by way of a clear (re)distribution of authority. At the other hand, the importance of participation and cooperation in the workplace is growing, also in view of ideas about empowerment, organizational democracy, and self-management. The purpose of this paper is to explore the possibility of organizing work in a circular manner, based on a synthesis of traditional and participative work relationships. Circularity implies that an ultimate authority in the workplace is absent and each member of the organization can participate directly or through representation in decision-making. Design precepts for organizing in a circular manner are discussed, and some implications for the role of authority and participation in the (postmodern) workplace are explored.

A Note on the Kinks at the Mean Variance Frontier

Abstract: In this paper the standard portfolio case with short sales restrictions is analyzed.Dybvig pointed out that if there is a kink at a risky portfolio on the efficient frontier, then the securities in this portfolio have equal expected return and the converse of this statement is false.For the existence of kinks at the efficient frontier the sufficient condition is given here and a new procedure is used to derive the efficient frontier, i.e. the characteristics of the mean variance frontier.

Gender differences in recruitment outcomes

Abstract: Our results indicate that males and females have about the same probability of being hiredin a mixed pool of male and female applicants, independently of the type of vacancy. Theprobability of hiring a candidate of a certain sex is therefore determined by the gendercomposition of the pool of applicants who have selected themselves on the basis of jobcharacteristics, hiring standards and the type of sector.

New Proposals for the Validation of Trace-Driven Simulations

Abstract: Simulations try to mimick reality. Hence, it is desirable that simulated values resemble the values observed in real life. Although the problem how to validate a simulation model has received quite a lot of attention, even recent literature offers no generally accepted standard method. This paper proposes a general approach. For trace-driven simulation, three different objectives are formulated. At the one extreme, the individual outcomes of a real life process and the simulated process should agree. An intermediate objective is that the outcomes of the two processes should have a symmetric joint distribution. And at the other extreme, only the marginal distributions of both outcomes have to be comparable. For all three objectives, validation measures and/or tests are proposed. For the last objective, a simulation study is presented, comparing two competiting tests

A game theory of organizational ecology : a model of managerial inertia and market selection

Abstract: This paper merges two theoretical perspectives in a mathematical game model: industrial organization on the one hand, which basically is the economic theory of market competition and firm strategies, and organizational ecology on the other, which is a major sociological tradition that studies the evolution of organizational populations. The merger is instrumental in analyzing a key question in organization studies: what is the role of flexibility, inertia and efficiency in facilitating firm performance in a selection environment, in terms of both profitability and survival? Particularly, we argue that game theory can offer a mathematical model of organizational ecology. Such a game-theoretic model reveals that an inert firm may push a flexible rival from the market, even if the inert market leader faces a cost disadvantage. Moreover, this may happen in a munificent environment. That is, cut-throat rivalry can be the result of strategic competition only - being facilitated by organizational inertia. This paper operationalizes relative inertia by modeling managerial resistance against downsizing. The model clearly supports the key claim of organizational ecology that relative inertia facilitates rather than impedes survival chances.

Environmental security and sustainability in natural resource management. A decision support framework

Abstract: This paper seeks to offer an overview in recent issues in sustainable development and environmental security policy, as far as resource management is concerned. The focus is on agricultural policy analysis, with a particular view on the development of an operational decision support system. Three topics receive particular attention: the use of relevant indicators, the development of a set of critical threshold conditions, and the design of an assessment and evaluation methodology.

On Globalisation, Trade and Wages

Abstract: Low skilled workers have been facing declining real wages during the 80s in the US, while high skilled workers gained in the same period.This decrease in the relative wage of the low skilled provoked a lively debate on the causes of the observed decline.A lot of academic authors have opposed to the popular view that trade with low wage countries caused the relative deterioration of low skilled workers.This paper addresses the central question, whether we can ignore the role for trade on the basis of existing literature.To answer this question, we first set forth basic trade theory.Next the theoretical basis for empirical validation is established, whereafter the empirical contributions of several authors are reviewed.Finally alternative explanations are assessed.On the basis of this survey we argue that the denial of a role for trade by a number of contributors to the debate is not convincing.

Are urban agglomerations a better breeding place for product innovation

Abstract: Compared to firms in rural regions, firms in urban agglomerations of the Netherlands dedicate a higher share of their R and D to product development. In our Hurdle Count Data estimate of determinants of new product announcements we find that, with a given product-R and D-intensity, firms in central regions have higher probabilities of announcing at least one new product in a journal and they also announce new products in larger numbers. Such support for theurban hierarchy/filter down hypothesis was not found when confining our analysis to standard R and D data.

Telematics Networks for Health Care in Peripheral Regions A Greek Case Study

Abstract: This paper focuses on the potential of information and communication networks for regional development. Particular attention will be given to the role of the telematics sector in the policy for peripheral areas. The critical success factors of this high tech sector will be analyzed by means of the so-called Pentagon model and will be illustrated by a Greek case study. This is not only a Greek case but also a test case.

Earnings forecasting research: an overview and critique

Abstract: Past research has extensively addressed the influence of accounting information on stockprices. However, results of this branch of capital market based research have beeninconclusive, partly due to methodological deficiencies. Focusing on differential groups ofmarket participants, such as financial analysts forecasting earnings, might contribute to ourunderstanding of the functioning of capital markets and the role of accounting information. In this paper an overview and critique of the earningsforecasting literature is presented. For the purpose of offering some insight into the present state of the earnings forecasting research and detectingthe remaining deficiencies in our understanding of financial analysts a classification is made, Studies are divided into process-oriented studies andresults-oriented studies. Studying individual forecasting processes is necessary, since earnings forecasts at the aggregate level are found to bedistorted by inefficient individual information processing. However, process-oriented studies do not cover all aspects of the earnings forecastingprocess. For that reason, judgmental forecasting and decision making literature is drawn into the discussion to provide some directions for futureresearch.

Upgrading traditional technologies in small-scale industrial clusters: producer-driven innovation adoption in Indonesia

Abstract: This paper discusses processes of technological change in the tile cluster in the village Karanggeneng in Central Java, Indonesia. A growing number ofproducers in this cluster have switched from traditional kiln to so-called handpress production. We will analyze the processes of innovation adoption of the handpress technology in the cluster. Adoption of the handpress technology encompasses certain indivisibilities which require collaboration amongproducers to render innovation adoption profitable. We will discuss how pioneer adopters share information and stimulate social learning and adoption on the part of their neighbours, because simultaneous adoption of the handpress technology by groups of producers is needed in order to tackle theindivisibilities which pioneers are facing.

Global environmental change, local land use impacts and socio-economic response strategies in coastal regions

Abstract: This paper addresses the issue of possible land use strategies and responses in coastal zones as a consequence of global environmental change. It willfirst set out some key elements in global change that are of critical importance for the water and land management in such areas. Next, it will map outin more detail the various environmental and socio-economic repercussions of such megatrends. This will then be followed by a discussion of thenecessity to develop proper coastal zone management policy strategies in order to cope with uncertain challenges. In particular, the research needs will be addressed. The paper will then illustrate the potential of integrated coastal zone dynamic and spatial modelling and evaluation, on the basis of anempirical case study for a coastal region. Furthermore, a number of spatio-economic scenarios related to sea level issues in the Netherlands will bepresented. In this context also risk assessment is shortly discussed in relation to sea level rise.

Environmental Rehabilitation: Efficiency and Effectiveness in Soil Remediation*

Abstract: Soil cleaning-up operations have become a priority in most western countries. In the Netherlands, in particular, a systematic effort to restore the environmental quality of polluted sites has started in the early eighties. The cornerstone of the Dutch legislation is that of restoring soil multifunctionality, which allows the cleaned site to be used for any purpose, without functional constraints. In more than ten years of application, this approach has shown some weak points. First, the costs of cleaning-up may be extremely high. Many companies tend to delay as much as possible the operations, either to delay expenditures or to wait for the development of more effective cleaning-up technologies. Second, many cleaning-up techniques achieve very good results in terms of soil quality, but result into a transfer of pollution to other environmental media (for instance, air and water) and require an intensive use of scarce resources (for instance, energy, groundwater and space). Third, in many instances the site has a unique destination, an industrial site for instance, and cleaning-up beyond the level strictly necessary is very cost-inefficient. These considerations have lead to the development of a new approaches for soil cleaning-up and to the development of methodologies and instruments for addressing effectiveness and efficiency in soil remediation. The paper shows a Decision Support System which assists the planning of cleaning-up operations on the basis of: (1) their effectiveness in reducing the risks for the specific needs of the site; (2) their capacity of minimising the negative influences on the environment and on the depletion of scarce resources; (3) the possibility of minimising the costs of operation and of timing the cleaning-up investments. The paper focuses on the environmental quality part, showing how the negative influences of cleaning-up operations can be taken into

Economische aspecten en relaties van omliggende gebieden met het stedelijk netwerk van de Vlaamse Ruit

Abstract: In het huidig ontwerp Ruimtelijk Structuurplan Vlaanderen (RSV) wordt het gebied tussen Brussel, Gent, Antwerpen en Leuven aangeduid als een stedelijk netwerk op internationaal niveau. Teneinde uitvoering te kunnen geven aan het RSV werd dit stedelijk netwerk nader onderzocht. In een eerste deel van het onderzoek werd gezocht naar een morfologische en functionele basis voor de Vlaamse Ruit. In dit artikel wordt meer in het bijzonder ingegaan op het economisch luik van dit onderzoek. Daarna wordt ook aangegeven dat het ontwikkelen en versterken van een stedelijk netwerk op internationaal niveau ook voor de rest van Vlaanderen een meerwaar-de kan opleveren.