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PurposeGlobal value chains (GVC) incorporate internationally fragmented sources of knowledge so as to increase global competitiveness and performance. This paper sheds light on the role of Industry 4.0 technological capabilities in facilitating knowledge access from international linkages and improving firm productivity.Design/methodology/approachDrawing on organizational learning research, the present study argues that the relationship between GVC breadth, analyzed in respect to the geographical fragmentation of production facilities and productivity follows an inverted U-shaped pattern that can be explained by the interplay between external knowledge access and the coordination costs associated with GVC breadth. We test our predictions using a purpose-built survey that was carried out among a sample of 426 Spanish manufacturing firms.FindingsOur results indicate that organizations adhering to a traditional manufacturing system are able to benefit from fewer transnational relationships (concretely 11 foreign facilities) in the search for productivity improvements. This can be largely attributed to the marginal value of the knowledge accessed and the costs of coordinating international counterparts' production and knowledge transfer. However, our study reveals that the adoption of Industry 4.0 technologies has the potential to broaden optimal GVC breadth, in terms of the number of linkages to interrelate with (concretely 131 foreign facilities) so as to obtain productivity gains while mitigating the complexities associated with coordination.Originality/valueThe study unveils that Industry 4.0 technologies enable management of broader GVC breadth, facilitating knowledge access and counteracting coordination costs from international counterparts.

Sugarcane is one of the important commercial crops and plays a crucial role in the agro-industrial economy of India. The present study was undertaken on hundred farmers of sugarcane cultivation in Sant Kabir Nagar district of Eastern Uttar Pradesh. Based on the nature of data, Cobb-Douglas production function was used for estimation resource use efficiency of sugarcane cultivation. The results revealed that return to scale on marginal, small and medium farms were 0.812, 0.912 and 0.962 respectively which are less than unity. It means, sugarcane cultivation is characterized by decreasing return to scale and the Coefficient of multiple determinations (R2) were 82.50, 84.10 and 87.50 percent the variation of output by dependent variable viz. seed, irrigation, plant protection and manure and fertilizers. The marginal value productivity of seed, irrigation, plant protection and manure and fertilizers measure were considerably high on all size groups of farms except fertilizers and seed on marginal farms. It indicates that positive relation is further scope for increase in the investment to realize more return.

Online reviews play an important role for the purchasing decision of customers. One challenge is that different reviewers have different judgment benchmarks when making online reviews, which can mislead purchasing decisions. Specifically, the same star rating may correspond to different levels of sentiment for different reviewers because of the explicit preference differences in individuals. This study explores the personal judgment benchmarks through a preference learning process. Considering the nonlinear cognition of reviewers, we propose a marginal value function with smooth shapes and clear parameters to model the scores of online reviews. A mathematical programming model is established to predict the specific marginal value function for each reviewer. Two kinds of performance accurateness are defined to measure the performance of the learning model. We evaluate two empirical data sets extracted from TripAdvisor.com to deepen the understanding of personal judgment benchmarks. A simulation study is conducted to validate the proposed model. The results have important theoretical and practical implications for purchasing decisions based on online reviews.

The goals of the guaranteed support price (GSP) scheme, adopted by several developing countries to support their farmers and the underprivileged population, are threefold: (a) as a supply‐side incentive, to ensure high output from the farmers, (b) as a demand‐side provisioning tool, to subsidize the consumption needs of the poor, and (c) to maintain an adequate amount of foodgrains as reserve stock, to mitigate the adverse effects of yield uncertainty (food security). We offer analytically supported insights on the fundamental aspects of this scheme by analyzing a Stackelberg game between a homogenous population of small farmers and a social planner. We model the strategic behavior of the farmers and the consuming population (Above‐ and Below‐Poverty‐Line consumers), and compare the equilibrium outcome with that under the direct benefit transfer (DBT) scheme, where the social planner simply distributes the budget among the BPL consumers. The comparison of the social planner's surplus depends on the marginal value from maintaining a reserve stock (i.e., the significance of food security). If this value is high, then the surplus under the GSP scheme strictly dominates that under DBT; otherwise, the surplus is identical. The comparison of the production by the farmers depends on two economic forces—the poorness of the BPL consumers and yield uncertainty. If the poorness is extreme, then the two schemes lead to identical production. If yield uncertainty is dominant, then DBT is ineffective in improving production while the GSP scheme can induce a strictly higher production by strategically choosing the reserve stock.

The interdependency of power systems and natural gas systems is being reinforced by the emerging power‐to‐gas facilities (PtGs), and the existing gas‐fired generators. To jointly improve the efficiency and security under diverse uncertainties from renewable energy resources and load demands, it is essential to co‐optimise these two energy systems for day‐ahead market clearance. A data‐driven integrated electricity‐gas system stochastic co‐optimisation model is proposed in tis work. The model is accurately approximated by sequential mixed integer second‐order cone programming, which can then be solved in parallel and decentralised manners by leveraging generalised Benders decomposition. Since the price formation and settlement issues have rarely been investigated for integrated electricity–gas systems in an uncertainty setting, a novel concept of expected locational marginal value is proposed to credit the flexibility of PtGs that helps hedging uncertainties. By comparing with a deterministic model and a distributionally robust model, the advantage of the proposed stochastic model and the efficiency of the proposed solution method are validated. Detailed results of pricing and settlement for PtGs are presented, showing that the expected locational marginal value can fairly credit the contribution of PtGs and reflect the system deficiency of capturing uncertainties.

Under current reimbursement (CR) practice even though an add-on drug in a combination therapy may produce marginal value in terms of health gain, the original therapy may also share in the reward for this additional value. We examine an alternative 'marginal value-based reimbursement' (MVBR) model in which an original therapy would not share in the marginal value.In a case study for treatment of HER2+ metastatic breast cancer, we computed the incremental cost-effectiveness ratios (ICERs) of adding pertuzumab to trastuzumab and docetaxel (PHT) vs. trastuzumab and docetaxel (HT) under the CR and the MVBR models, respectively. We further estimated the revised cost of pertuzumab under three alternative willingness-to-pay thresholds based on (a) using the current ICER of PHT vs. HT, (b) the historical ICER of HT vs. docetaxel, and (c) applying the oft-used $150,000/quality-adjusted life year (QALY) gained.If reimbursement were changed from CR to MVBR, at the current price of pertuzumab, the ICER would decline from $409,213 to $323,236/QALY gained. If the price were adjusted under the three thresholds, the payment for pertuzumab would be increased by between 32% and 93%.The proposed MVBR model would provide a stronger economic incentive to develop add-on drugs.

Conservation of predators – especially large carnivores and those that potentially pose threats to humans – can be controversial among stakeholders who must coexist with them. What is often overlooked, however, are the direct and indirect ecosystem services and disservices predators provide as a result of consumption of herbivores (“predation services”). We used a theoretical predator–prey–economic model to examine when predators are likely to provide a net service to society, by comparing services/disservices to a predator‐free counterfactual scenario. We found that net predator services were strongly dependent on how per‐capita services and disservices of predators and prey changed with abundance (ie assumed marginal value [MV] functions of service/disservice). We suggest that further empirical research is needed into MVs of services/disservices of wildlife, because transferring net services among locations – a common practice – is problematic unless MV functions are known. Rigorously quantifying services/disservices of predators could improve conservation and management outcomes by increasing effective communication to diverse stakeholders.

Share pledging for insiders’ personal bank loans is associated with the agency problems of insider risk aversion and stock price crash risk. We examine the relation between insider share pledging and the value of cash holdings using the pledging data of listed firms in Taiwan. We find that the value of cash holdings is lower for pledging firms, especially for those that are relatively more risk averse. Pledging firms that repurchase shares have a higher marginal value of cash than those with other payout methods, likely due to the role of repurchases in reducing the stock price crash risk. Our results show how insiders’ personal financing incentives arising from share pledging would affect the value of cash holdings from the perspective of agency problems and payout policy.

This paper investigates the impact of market incompleteness on investment decisions. In contrast to previous studies, we assume an entrepreneur has power utility and investment causes an additive increase in her wealth. By using the binomial theorem, we derive the analytical solutions for the option value and investment threshold. First, we show that an increase in wealth alleviates the over-investment problem caused by the market incompleteness. In addition, the marginal value of wealth is always more than one and decreases in the wealth level. Finally, the increase in wealth substantially enhances the value of the investment option and lowers the idiosyncratic risk premium.

A breeding female’s perceived value is a complicated process and depends on a combination of expected production costs, reproductive success, and calf values. A conceptual asset value model based on female characteristics as signals and net implicit marginal value expectations is developed. A hedonic model based on sequentially sold individuals at multiple Mississippi auction locations is estimated by panel regression. Among other findings, pregnant females are discounted in proportion to abortion risk, which decreases toward birth. A follow-up cost/benefit analysis indicates producers are better off from at home pregnancy checking and selling only nonpregnant females or cow/calf pairs.

I analyze the marginal value of reducing greenhouse gas emissions (the “social cost of carbon”) under uncertainty about warming, under uncertainty about how much warming reduces consumption...

We examine the effect of the oil and gas firms' use of derivatives for hedging risks on the marginal value of cash holdings. Analyzing 155 U.S. oil and gas producers from 1998 to 2017, we find that the use of derivatives for hedging risks, especially oil and gas‐related risk, reduces the marginal value of corporate cash holdings. Furthermore, the effect of using derivatives is stronger for firms exposed to higher risk. Our findings imply that cash holdings and derivatives use act as substitutes in hedging risk in this industry.

We consider a finite‐horizon, periodic‐review system for a perishable product at a retailer that faces stochastic, age‐dependent demand and loses excess demand, if any. For this system, we build three models that capture two sources of unfilled demand, insufficient inventory and inappropriate age, and penalize them at different rates. The models are characterized by increasing replenishment flexibility, and the goal of each model is to identify when to place an order and the quantity whenever an order is placed. In the first model, reorder intervals are equal. In the second model, reorder intervals can vary across orders. In the third model, reorder intervals continue to remain flexible but the retailer can also partially salvage her inventory whenever she has excess inventory. Using the models, we explore the effect of lost‐sales penalties on the structure of the optimal value function. We find that the inventory‐related cost in a period may lack convexity if the ratio of penalties for stockout and high age is below a threshold, which percolates to the value function as well. We also identify properties of the optimal replenishment policy for the three models. Finally, we conduct numerical experiments to identify the marginal value added by the flexibility in reorder intervals and the option to partially salvage inventory as a function of model parameters.

We describe a frame work for empirical welfare analysis that uses the causal estimates of a policy’s impact on net government spending. This framework provides guidance for which causal effects are (and are not) needed for empirical welfare analysis of public policies. The key ingredient is the construction of each policy’s marginal value of public funds (MVPF). The MVPF is the ratio of beneficiaries’ willingness to pay for the policy to the net cost to the government. We discuss how the MVPF relates to “traditional” welfare analysis tools such as the marginal excess burden and marginal cost of public funds. We show how the MVPF can be used in practice by applying it to several canonical empirical applications from public finance, labor, development, trade, and industrial organization.

This study aimed to evaluate the efficiency with which smallholder maize farmers use their input resources such as land, labor, capital, fertilizers, herbicides, pesticides, and improved seed in maize production. The study used the multi-stage sampling technique to collect cross-sectional data from 600 smallholder maize producers from the northern, Brong-Ahafo, eastern, and central regions of Ghana. This study employed the marginal value product (MVP) to marginal factor cost (MFC) ratio (MVP/MFC) of the input resources. The results revealed an increased return to scale, meaning smallholder maize farmers in the pooled sample and the studied regions should enlarge their production scale by about 3.2%, 2.2%, 7.6%, 6.8%, and 2.8%, respectively, to maximize productivity. The results also revealed that resource inputs like fertilizer, herbicides, pesticides, improved seed, and land were underutilized. Therefore, these resources need to be increased if smallholder maize farmers in the pooled sample want to be efficient in their production. Labor and capital were over-utilized and needed to be reduced to increase efficiency in the farmers' maize production.

This paper analyses the effect of labor opportunity cost on economic profitability of fertilizer microdosing (FM) in Burkina Faso. In order to assess the incremental change in net income when the investment cost increases and takes into account labor opportunity cost, the marginal value cost ratio (MVCR) approach is used. Using data from farmer’s field, the results showed that for both crops, the median yield of the fertilizer microdosing plots is 500 kg.ha-1, which is slightly higher than yield from recommended dose plots. Moreover, the rate of fertilizer microdosing plots of millet with a marginal value cost ratio above 2 shifts from 50% (without labor opportunity cost) to 41% (with labor opportunity cost) and not even one recommended dose plots reached this threshold. These findings argued that fertilizer microdosing adopters remain economically profitable for farmers compared to traditional practices despite the opportunity cost of labor. However, because of its importance in the process of fertilizer microdosing adoption, labor costs must be included in its economic evaluation. The results of this study confirm the need to accelerate mechanization of fertilizer microdosing application. Key words: Fertilizer microdosing (FM), labor, marginal value cost ratio, Burkina Faso.

What kind of firm benefits more from financial hedging, the focused or diversified? In fact, the benefit of financial hedging depends on diversification policies. By analyzing the interaction between financial hedging and corporate diversification in a theoretical model for a financially constrained firm, we find that focused firms have relatively higher marginal value of hedging in general static environment. However, dynamic analysis results show that an important synergy between financial hedging and diversification would reverse this result. Exercising corporate diversification policies has direct negative effect on liquidity and operating risk, thereby increasing the marginal value of financial hedging. As a result, it is possible that their relationship is complementary in a dynamic environment since these tools increase firm value in different channels. This suggests that firms could use financial hedging in the process of diversification if it is possible. Our findings also emphasize the importance of risk management capabilities which is hardly observable but contributes much to firm value.

Purpose The purpose of this study is to examine whether the presence of an audit committee (AC) members with Chief Executive Officer (CEO) experience (supervisory experts) affects the market value of cash holdings. Design/methodology/approach To estimate the marginal value of cash holdings, this study uses the model proposed by Faulkender and Wang (2006). The sample is 2,031 firm-year observations in Korea from 2000 through 2015. Findings The authors find that the presence of supervisory experts on ACs has a negative impact on the value of cash holdings. This result suggests that supervisory experts on ACs weaken monitoring of managerial actions. The authors also find that the negative effect of supervisory experts on the value of cash holdings is mitigated when there are other AC members with accounting expertise. Practical implications The findings that AC supervisory expertise impairs the effectiveness of ACs, and thus destroys shareholder value have policy implications because the current regulations in many countries use a broad definition of financial expertise that includes supervisory expertise. Originality/value This is the first study that directly examines the effect of AC supervisory expertise on the value of cash holdings. The study also contributes to the literature on the role of ACs in emerging markets by documenting the limitations of corporate governance systems adopted from the Anglo–Saxon model.

This paper considers the optimal dividend policy for an insurance company facing model uncertainty. We provide an explicit solution and show that an increase in ambiguity aversion leads to more conservative dividend policy. Interestingly, we find the ambiguity averse manager exhibits risk loving attitude when the company is close to bankruptcy. Finally, concerns about model misspecification have ambiguous effects on the marginal value of cash, which depends on the cash reserve.

In the following article, we forward the coalitional value theory (CVT) and apply it to several puzzles about human behavior. The CVT contends that humans evolved unique mental mechanisms for assessing each other’s marginal value to a coalition (i.e., each other’s coalitional value). They defer to those with higher coalitional value, and they assert themselves over those with lower. We discuss how this mechanism likely evolved. We note that it helps explains how human groups can expand into large, complicated, and specialized coalitions (chiefdoms and even nation states). And we combine this with strong evidence that suggests that status striving is a fundamental human motive to explain partially (1) anti-gay bias, (2) cultural signaling, (3) cultural conceptions of god, and (4) ideological conflict.

PurposeIn this paper, the authors examine the association between a firm's geographical location and the value of its cash holdings.Design/methodology/approachFollowing Loughran and Schultz (2005) and Nielsson and Wójcik (2016), the authors define firms as either geographically remote or geographically proximate based on their distance to areas that are either largely populated or concentrated in financial expertise. We also estimate the marginal value of cash using the model developed by Faulkender and Wang (2006).FindingsThe authors find that the marginal value of cash is $0.10–$0.16 lower in remotely located firms than in geographically proximate firms. The lower marginal value of cash is prominent among remotely located firms with greater severity of information asymmetry. Our findings support the view that the inability of shareholders to closely monitor how managers use of firm cash may increase the perceived conflicts of interest associated with managers' cash spending and decrease the value of cash.Originality/valuePrevious studies try to explain the cash holdings puzzle by attributing it to CEO overconfidence, external funding constraints, poor corporate governance, difference in corporate financial policy, poor investor protection, lack of firm diversification and large operating losses. This study contributes to the extant literature by offering new evidence of the role of geographic location on the value of cash holdings.

In keeping with the view that individuals invest cognitive effort in accordance with its relative costs and benefits, reward incentives typically improve performance in tasks that require cognitive effort. At the same time, increasing effort investment may confer larger or smaller performance benefits-that is, the marginal value of effort-depending on the situation or context. On this view, we hypothesized that the magnitude of reward-induced effort modulations should depend critically on the marginal value of effort for the given context, and furthermore, the marginal value of effort of a context should be learned over time as a function of direct experience in the context. Using two well-characterized cognitive control tasks and simple computational models, we demonstrated that individuals appear to learn the marginal value of effort for different contexts. In a task-switching paradigm (Experiment 1), we found that participants initially exhibited reward-induced switch cost reductions across contexts-here, task switch rates-but over time learned to only increase effort in contexts with a comparatively larger marginal utility of effort. Similarly, in a flanker task (Experiment 2), we observed a similar learning effect across contexts defined by the proportion of incongruent trials. Together, these results enrich theories of cost-benefit effort decision-making by highlighting the importance of the (learned) marginal utility of cognitive effort. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Asian dust (AD), a seasonal phenomenon in East Asia, refers to dust winds that blow from inland China and the Gobi Desert. Generally, AD occurs in the spring, but due to climate change and the desertification of AD sources, it has recently started occurring in every season except for midsummer. The occurrence of AD adversely affects human health and damages various industries. Accordingly, the Korean Meteorological Administration has provided an AD forecast service to minimize damage. The most essential part of providing the AD forecast service is the Asian Dust Aerosol Model (ADAM). This study tries to provide useful information for policymaking and research and development by deriving the economic value of ADAM improvement. To this end, a choice experiment (CE) was applied. The CE can derive the marginal value of or the marginal willingness to pay (MWTP) of improvement in attribute. All the MWTP estimates obtained in this study were statistically significant. The household MWTP estimates for a 1% improvement in ADAM accuracy and a one-level subdividing were obtained as USD 0.04 and USD 0.12 per household. This finding indicates that people have a greater preference for improving AD forecast segmentation than for improving ADAM accuracy.

Ecological birdwatching tourism is an ecological product and an essential part of ecotourism, and the realization of its recreation value is crucial for improving human well-being, and realization of the local benefits of ecosystem services for areas focused on biodiversity conservation, especially in bird species. In this study, we use travel cost interval analysis, one of the travel cost derived models featuring more easily satisfied assumptions and less limited data, to evaluate the recreation value of the ecological bird-watching tourism destination, and compare it with the general ecotourism, of Mingxi County destination in China. The results show that, firstly, the per capita recreation value of eco-birdwatching is 3.9 times that of general eco-tourism, its per capita social benefit is three times that of general eco-tourism, and its per capita economic benefit is 4.5 times that of general eco-tourism. Secondly, compared with general ecotourists, the per capita travel costs of eco-birdwatchers are higher, and there were significant statistical differences in the expenses for catering, tickets, shopping, opportunity cost, and total travel expenses between these two groups. Thirdly, in comparison with general ecotourists, the marginal cost of an individual eco-birdwatcher is higher, and the travel intention of an eco-birdwatcher is more robust at the same cost level. The price of a single eco-birdwatcher is higher under the same travel intention demand level. In short, the ecological bird-watching industry has a higher marginal value than general eco-tourism and has higher social, economic, and ecological benefits, bringing a higher level of development for the local tourism industry.

This paper investigates the local impact of biomedical research on mortality in the USA. Causally estimating the marginal value of biomedical research is challenging due to a lack of micro data linking health outcomes to plausibly exogenous variation in research. We create a new linkage between a research database (PubMed) and administrative death records that enables research to be related to mortality at the geographic, disease and time level. We then estimate the marginal impact of biomedical research on mortality using hospital market (HRR) level shocks to research activity by disease. Our identification strategy builds on the literature on the dissemination of knowledge, specifically that of local knowledge spillovers. By utilizing variation across diseases, time and distance from research we control for additional trends relative to the current literature. Our results show that an additional research publication on average reduces local mortality from a disease by 0.35%. Our results also provide novel evidence that there are health benefits to the local communities (local spillovers) in which biomedical research is conducted.

We propose a novel approach to multiple criteria sorting incorporating a threshold-based value-driven procedure. The parameters deciding upon the shape of marginal value functions and separating class thresholds are inferred through preference disaggregation from the Decision Maker’s incomplete assignment examples and partial requirements on the type of (non-)monotonicity for each marginal value function. These types include standard monotonic shapes, level-monotonic functions, A- and V-types combining increasing and decreasing value trends, and unknown monotonicity constraints. A representative instance of the sorting model compatible with the preference information is constructed by solving a dedicated Mixed-Integer Linear Programming problem. Its complexity is controlled by minimizing the number of changes in monotonicity between all subsequent sub-intervals of marginal value functions. The assignments derived using the constructed representative model are validated against the outcomes of robustness analysis. The proposed method is applied to a real-world problem of exposure management of engineered nanomaterials. We develop a model for predicting precaution level while handling nanomaterials in certain conditions using a respirator. The model captures interrelations between ten accounted evaluation criteria, including both monotonic and non-monotonic criteria, and the recommended class assignment. This makes it suitable for the management of exposure scenarios, which have not been directly judged by the experts., Miłosz Kadzi´nski acknowledges support from the Polish Ministry of Science and Higher Education under grant no. 0296/IP2/2016/74. Marco Cinelli acknowledges funding from the European Union's Horizon 2020 research and innovation programme under grant agreement no. 743553. Salvatore Corrente and Salvatore Greco acknowledge funding by the FIR of unknown3the University of Catania BCAEA3 "New developments in Multiple Criteria Decision Aiding (MCDA) and their application to territorial competitiveness". Salvatore Greco has also benefited of the fund Chance of the University of Catania.

Derek Parfit defends the Imprecise Lexical View as a way to avoid the Repugnant Conclusion. Allowing for ‘imprecise equality’, Parfit argues, makes it possible to avoid some well-known problems for the Lexical View. It is demonstrated that the Lexical View (without imprecise equality) has stronger implications than envisaged by Parfit; moreover, his assumption of Non-diminishing Marginal Value makes the Lexical View collapse into a much stronger view, which lets the two appear incompatible. Introducing imprecise equality does not address the latter problem. But it does makes it possible for the Imprecise Lexical View to soften the discontinuities it would otherwise face, at the cost of blurring the difference between options.However, if Non-diminishing Marginal Value is rejected, the remaining complications for the resulting most plausible version of the Imprecise Lexical View, including a confrontation with Arrhenius’ Non-Elitism Condition, may be within a range where the view largely remains defensible.

Companies can create value by differentiating their products and services along quantitative attributes. Existing research suggests that consumers’ tendency to rely on relatively effortless and affect-based processes reduces their sensitivity to the scope of quantitative attributes and that this explains why increments along quantitative attributes often have diminishing marginal value. The current article sheds new light on how “system 1” processes moderate the effect of quantitative product attributes on subjective value. Seven studies provide evidence that system 1 processes can produce diminishing marginal value, but also increasing marginal value, or any combination of the two, depending on the composition of the choice set. This is because system 1 processes facilitate ordinal comparisons (e.g., 256 GB is more than 128 GB, which is more than 64 GB) while system 2 processes, which are relatively more effortful and calculation based, facilitate cardinal comparisons (e.g., the difference between 256 and 128 GB is twice as large as between 128 and 64 GB).

The paper presents a method of assessing the value of individual elements of the multigraph, i.e. the value of its vertices and arcs, taking into account the fuzziness of its parameters. The need to take into account the specificity of the existing types of vertices (including logical functions specified on them) and the possibility of multiple relationships between two neighbouring vertices make it necessary to use a multigraph. The assumed basis for the evaluation of the individual elements of the multigraph was their marginal value, which is so-called contribution of a given element to the entire multigraph, assuming that the given element affects not only the adjacent elements directly related to it, but in a way, perhaps indirect, every other element of the multigraph.

The market for new drugs is changing: personalised drugs will increase the heterogeneity in patients' responses and, possibly, costs. In this context, price regulation will play an increasingly important role. In this article, we argue that personalised medicine opens new scenarios in the relationship between value-based prices, regulation and industry listing strategies. Our focus is on the role of asymmetry of information and competition. We show that, if the firm has more information than the payer on the heterogeneity in patients' responses and it adopts a profit-maximising listing strategy, the outcome may be independent of the choice of the type of value-based price. In this case, the information advantage that the manufacturer has prevents the payer from using marginal value-based prices to extract part of the surplus. However, in a dynamic setting where competition by a new entrant is possible, the choice of the type of value-based price may matter. We suggest that more research should be devoted to the dynamic analysis of price regulation for personalised medicines.

Purpose The purpose of this paper is to examine the relationship between the strength of corporate governance and the value of firm-level investment policies following the passage of the Sarbanes–Oxley (SOX) Act of 2002 and the associated changes to the listing requirements of major stock exchanges. In particular the authors seek to examine potential changes in the market’s assessed value of capital expenditures after the passage of the SOX Act relative to before. Design/methodology/approach The authors employ a difference-in-difference methodology, centred on the year of the passage of the SOX Act to test for the role of governance on the marginal value of capital expenditures. Excess stock returns are calculated by subtracting Fama and French (1993) size and book-to-market portfolio value-weighted returns from the firms’ annual stock returns. Each firm is grouped into one of 25 size and book-to-market portfolios for each year in the sample, with size and the book-to-market ratio proxying for sensitivity to common risk factors in stock returns (Fama and French, 1993). Findings The authors find that markets responded to the change in governance brought about by the new regulation by altering the value of firm-level capital expenditures in a way that is generally consistent with predictions of agency theory. While the overall findings imply a reduction in agency conflicts post-SOX, there is some evidence that certain firms may have suffered excessive costs of compliance, while still others saw managers become excessively risk averse. Research limitations/implications The study has implications related to the efficacy of legislation. Cross-sectional variation in the effect of SOX on the marginal value of capital expenditures suggests that one-size-fits-all legislative approach can have both expected as well as unintended consequences. The study limits its analysis to examining the impact of three significant provisions of the Act. While, the value implications of the Act are largely captured by the selected three, a more comprehensive study could expand on the set of provisions studies to obtain a more granular level impact. Practical implications This research should add to the growing body of the literature examining the effect of SOX on firms’ real activities and decisions, as well as contribute to the debate on whether the Act was beneficial or costly to firms. With particular reference to the impact of capital expenditure on firm value, the research contributes to the sparse literature examining the contribution of capital expenditures to firm value and the role that agency conflicts play in this relationship. Additionally, this research adds to the growing body of the literature that examines the costs and benefits of the sweeping new regulations brought on by the adoption of SOX. Social implications Given the importance of investment policy for economic productivity and growth, the insights provided by findings in this research should benefit lawmakers both within the USA as well as in countries where corporate misconduct and fraud is a concern. Originality/value This is the first study that examines the impact of the SOX Act on the way capital markets value firm-level investment in capital expenditures. Since use of corporate resources by managers is fraught with agency conflicts, the role of SOX in potentially alleviating this conflict as revealed by the tests in this study are very valuable.

This paper uses comprehensive and comparable firm-level manufacturing census data from four Sub-Saharan African countries to examine the extent, costs, and nature of within-industry resource misallocation across heterogeneous firms. The paper finds evidence of severe misallocation in which resources are diverted away from high-productivity firms toward low-productivity ones in all four countries, although the magnitude differs across countries. The paper shows that a hypothetical reallocation of resources that equalizes marginal returns across firms would increase manufacturing productivity by 31.4 percent in Cote d'Ivoire and as much as 162.7 percent in Kenya. The paper emphasizes the importance of the quality of the underlying data, by comparing the results against those from the World Bank Enterprise Surveys. The comparison finds that the survey-based results underestimate the extent of misallocation vis-a-vis the census. Finally, the paper finds that the size of existing distortions is correlated with various measures of business environment, such as lack of access to finance, corruption, and regulations.

The value of mobility is an unresolved question in transportation economics literature. The advent of ride-hailing services and the emergence of mobility as a service (MaaS) place increased pressure on the research community to develop methods to consider this question. We provide one of the first efforts to quantify the value of mobility using a consistent econometric approach. A series of discrete choice models are estimated for car ownership and residential density choices. The decision to purchase an additional vehicle is a concrete manifestation of the marginal value of travel vis-a-vis the desire to make additional trips. The proposed framework has the benefit of employing a single utility function, thus removing the need to set a reference alternative. Models are estimated with a large household travel survey for the Greater Toronto and Hamilton Area, which provides a close approximation to the true population. We estimate separate values of mobility by household composition, providing evidence for a high degree of heterogeneity. Results are examined in the context of MaaS and it is found that the value of mobility is much higher in suburban areas than suggested in previous research. Model results provide strong evidence for potential social exclusion with the widespread adoption of MaaS. The methods explored in this paper show great promise for quantifying the value of mobility and we present recommendations for additional research in this direction.

Introduction. One of the most important indicators determining the public transport service quality is the capacity utilization factor of transport fleet. This parameter directly effects on the economic efficiency of the transport organization. For the carrier it is desirable from an economic point of view that the value of the capacity utilization factor takes on the greatest value. Passengers, on the contrary, prefer to transfer without overfull capacity of transport vehicles. Moreover, this factor is used in determining travel fares, analyzing the executed movement regarding the availability of reserves in carrying capacity and planning transportation process. The paper discusses the method of marginal value calculation of the transport fleet’s capacity utilization factor of urban public transport based on ensuring standard vehicle's cabin filling limits.Materials and methods. The authors solved the task of determining the filling marginal value for transport fleet while working on regular urban routes by analyzing the dependence of the capacity utilization factor on the passenger traffic parameters, the average operating time of the transport fleet on the route and the speed fluctuation during public transport operation. The authors also proposed the indicator of the transportation speed fluctuation during the operation of urban public transport.Results. The authors found out that the capacity utilization factor of transport fleet substantially depended on the passenger traffic parameters, on the average operating time of the transport fleet and on the speed fluctuation during public transport operation.Discussion and conclusion. The obtained dependences allow us calculating the marginal values of capacity utilization factor with taking into account the parameters of the planned transport process. The standard capacity utilization factor varies within considerable limits from 0.2 to 0.4, depending on the operating conditions.

Non-point source pollution and the its impact on water quality has garnered interest from policymakers, residents, and scientists in the past decade. We develop a novel method that links water quality indicators derived from a hydrological process model with housing sales data between 1990 and 2013 to estimate the marginal value of water quality changes in the Upper Big Walnut Creek (UBWC) watershed in Ohio. Econometric results indicate that a one-foot increase of Secchi-disk depth in the Hoover Reservoir leads to 7.72% increase in the housing price of an average residential property located within 0.3 miles from the reservoir, with an aggregate impact of around $6 million in the watershed. We find that the impact of water quality is heterogeneous over space, decreases with distance from the reservoir, and is insignificant beyond 0.3 miles. This study provides an alternative approach to fill the gap when observational water quality data are limited and provides reliable estimations of water quality impact, which is essential to evaluate the benefits and costs associated with land use change and urban development.