A One-sided Sustainability Test With Multiple Consumption Goods

In an economy with multiple consumption goods (including environmental amenities) that uniquely maximises the present value of utility with constant discounting, constant or falling augmented green net national product, or zero or negative augmented net investment, at any time implies that the economy is unsustainable then. "Augmented" means that time is treated as a productive stock, so augmented net investment includes the value of time. This allows future exogenous technical progress and changes in world prices to be included in a unified accounting framework, along with features such as resource depletion, pollution and foreign investment. The practical and philosophical rationale for testing sustainability in a present-value maximising, and therefore fully prescribed, development path are discussed.

Why do we invest ethically?

Analysis in this paper has proposed three potential motives for ethical investment - financial returns, non-wealth returns and social change. The motives are developed from the literature and illustrated in the context of a 'best of sector' fund and a socially screened fund. We find that the proposed motives are neither exhaustive nor exclusive and one single motive will not explain the behaviour of all ethical investors. There may be a trade-off between financial and psychic returns for some investors. The trade-off for consumption-investors is expected to be close to zero (total utility is maximised with small levels of ethical investment in the fun of participation model) and is expected to vary with the ethical intensity of investment-investors, as shown when we include ethical intensity into the investor's utility function. Psychic return can also be viewed as an increase in happiness and this approach would lend itself to empirical testing to increase our understanding of why we invest ethically

Network effects of the productivity of infrastructure in developing countries

Using panel data models, the author examines the threshold effects of the productivity of infrastructure investment in developing countries. He considers various specifications of an augmented production function that allow for endogenous thresholds. More precisely, these specifications are tested in a panel threshold regression model. The author's main robust result is the presence of strong threshold effects in the relationship between output and private and public inputs. Whatever the transition mechanism used, the testing procedures lead to strong rejection of the linearity of this relationship. In particular, the productivity of infrastructure investment generally exhibits some network effects. When the available stock of infrastructure is very low, investment in this sector has the same productivity as noninfrastructure investment. On the contrary, when a minimum network is available, the marginal productivity of infrastructure investment is generally largely greater than the productivity of other investment. Finally, when the main network is achieved, its marginal productivity becomes similar to the productivity of other investment.Economic Theory&Research,Investment and Investment Climate,Public Sector Economics&Finance,Non Bank Financial Institutions,Technology Industry

Improving the testing of Profit Software's insurance policy database system

Profit Software's Profit Life and Pension (PLP) is an investment insurance management system. This means that PLP handles investment insurances from the moment they are sold to when they eventually expire. For a system that handles money, it is important that it can be trusted. Therefore, testing is a required part of PLP's development. This thesis is an investigation into PLP's testing strategy. In this thesis we analyse PLP's current testing strategy to find flaws and impediments. We then offer improvement suggestions to the identified problem areas as well as suggest additions which we found could be beneficial

Network Effects and Infrastructure Productivity in Developing Countries

This paper proposes to investigate the threshold effects of the productivity of infrastructure investment in developing countries within a panel data framework. Various speci.cations of an augmented production function that allow for endogenous thresholds are considered. The overwhelming outcome is the presence of strong threshold effects in the relationship between output and private and public inputs. Whatever the transition mechanism used, the testing procedures lead to strong rejection of the linearity of this relationship. In particular, the productivity of infrastructure investment generally exhibits some network effects. When the available stock of infrastructure is very low, investment in this sector has the same productivity as non-infrastructure investment. On the contrary, when a minimumnetwork is available, the marginal productivity of infrastructure investment is generally largely greater than the productivity of other investments. Finally, when the main network is achieved, its marginal productivity becomes similar to the productivity of other investment.financial economics and financial management ;

The Feasibility of Reclaiming Shell Material from Investment Casting

This report examines the feasibility of investment shell component reclamation. Shell material components and their compositions are investigated with an industry survey, a study of the available literature, and analysis of specimen shell materials. physical properties and factors related to the reclamation and reuse of shell materials are described. Well known mineral processing methods are capable of producing concentrates of the various shell components. The theory and techniques of some applicable processes are discussed to assist with the development of reclamation operations. The recommended methods are; comminution by roll crushing, component concentration by screening, gravity settling or heavy medium separation. Aluminosilicate stucco (a major component of many investment shells) can be recovered in a form suitable for reuse as backup stucco. Zircon (a minor component in many shell compositions) -can be concentrated in an impure form, and subsequent caustic liberation treatments can remove the intermixed silica phases. Reuse of such zircon in investment casting may be possible but will require careful qualification testing. Fused and crystalline silica (major components of most shell compositions) are not reusable for investment casting. The feasibility of reclamation will be influenced by individual foundry choices of materials, composition and shell practice.HWRIC Project No. RRT-10NTIS PB92-16219

Improving the testing of Profit Software's insurance policy database system

Profit Software's Profit Life and Pension (PLP) is an investment insurance management system. This means that PLP handles investment insurances from the moment they are sold to when they eventually expire. For a system that handles money, it is important that it can be trusted. Therefore, testing is a required part of PLP's development. This thesis is an investigation into PLP's testing strategy. In this thesis we analyse PLP's current testing strategy to find flaws and impediments. We then offer improvement suggestions to the identified problem areas as well as suggest additions which we found could be beneficial

One-sided Unsustainability Tests and NNP Measurement with Multiple Consumption Goods

In an economy with multiple consumption goods (including environmental amenities) that uniquely maximises the present value of utility with constant or falling augmented green net national product, or zero or negative augmented investment, at any time implies that the economy is unsustainable then. "Augmented" means that time is included as a productive stock, which incorporates future exogenous technical progress and changes in world prices in a unified accounting framework. Examples are given of calculating accounting prices for multiple goods. The practical and philosophical rationale for testing sustainability in a present-value maximising, and therefore fully prescribed, development path is discussed.sustainability, net investment,net national product, optimality,green accounting

Dimensionality of risk perception : factors affecting consumer understanding and evaluation of financial risk

This article describes two studies of the factors affecting consumer understanding of financial risk. The first study investigated factors affecting people's perception and comprehension of information about the risks related to retirement investments. First, we asked respondents to list possible risk factors related to investment in a pension plan. Then we obtained ratings of different factors (e.g., the perceived level of knowledge about an investment) that could affect perception of the risk of financial products and retirement investment decisions. Finally, we asked the subjects to rate 11 different descriptions presenting risk information about the same financial product. The risk information framing that received highest rating presented risk as variation between minimum and maximum values with an average in between. The second study demonstrated the risk framing that received highest ranking also prompted more stable risk preferences over a 3-month testing period in comparison to standard measures of risk aversion. Thus, the second study corroborated the importance of the findings in the first study and also indicated that, although people can exhibit stable risk preferences if we ask them the right questions, these preferences were very specific to the risk domain