Economics & Environmental Sustainability

Does the Canadian Dollar Travel South? An Examination of Currency Substitution along the U.S.-Canadian Border* Full Text
Vol. 21, No. 2, p. 61
Michael J. Pisani, Central Michigan
University David W. Yoskowitz, Texas A&M University - Corpus Christi

This paper investigates currency substitution along the U.S.-Canada border with specific reference to the use of the Canadian dollar in the United States. In our study sites of Bellingham, WA; Buffalo, NY; Burlington, VT; Houlton, ME; Minot, ND; Port Huron, MI; and Sault Ste. Marie, MI, we found that 70.1 percent of 364 sampled U.S. located retail establishments accepted the Canadian dollar during the study period of July 2003. Accepting firms did so at an average premium of 7.7 percent per transaction with a concomitant average increase in stores sales of 3.0 percent. The significant variables at the firm-level in the decision to accept/reject the Canadian dollar are firm experience in the community; ownership model (local, regional, national or international); geographic location; cross-border operations; and retail category.

Learning from Failure Full Text
Vol. 20, No. 1, p. 13
Philip R. P. Coelho and James E. McClure, Ball State University

Failures may lead to ultimate success in both nature and business. Just as dynamic ecosystems depend on death to replace senescent organisms with vigorous growth, the termination of uneconomic activities is essential to wealth creation. This paper explores the benefits of failures, and uses aspects of the analogy between death and business failure to analyze how failures in business economize upon resources and lead to better firms and greater efficiencies. A distinguishing feature of our work is the analytic use of competitive markets to provide insights into the processes of success and failure. Recognizable patterns of business failures are discussed in an effort to provide entrepreneurs and managers with a basis for understanding and acting upon changing circumstances.

Learning from Failure Full Text
Vol. 20, No. 1, p. 13
Philip R. P. Coelho and James E. McClure, Ball State University

Failures may lead to ultimate success in both nature and business. Just as dynamic ecosystems depend on death to replace senescent organisms with vigorous growth, the termination of uneconomic activities is essential to wealth creation. This paper explores the benefits of failures, and uses aspects of the analogy between death and business failure to analyze how failures in business economize upon resources and lead to better firms and greater efficiencies. A distinguishing feature of our work is the analytic use of competitive markets to provide insights into the processes of success and failure. Recognizable patterns of business failures are discussed in an effort to provide entrepreneurs and managers with a basis for understanding and acting upon changing circumstances.

Perceived Value: A Dimension of the Consumer Risk Construct Full Text
Vol. 11, No. 1, p.15 
William D. Dodds, Fort Lewis College

This paper examines the effects of price and brand information on consumer risk in making purchase decisions. The introduction of non-monetary risk reinvigorates a promising research stream that has investigated the relationship of market cues and buying behavior. The research results strongly suggest that, in addition to the monetary risk of value, non-monetary risk such as social risk can be a key moderator between product character (quality and price) and consumers' willingness to buy. Not only do consumers make a rational trade off in terms of dollars and quality, but they appear to buy in terms of how they will be perceived by their friends, family and peers. Perceived value is found to be a multi-dimensional construct that covers the spectrum of financial and non-monetary risk.

The results solidify the following arguments for a market cue-product evaluation model:
-depicting how buyers use price and brand information as indicators of quality perceptions and monetary sacrifice;
-determining how quality perceptions and monetary perceived sacrifice influence the perceptions of monetary and non-monetary risk; and
-establishing the influences of purchase intentions.

The Dimensions of Sustainability for Business  Full Text
Vol. 9, No. 2, p.3 
O. Homer Erekson, Miami University
Orie L. Loucks, Miami University
Charles Aldag, Executive Consultant to Chemical Manufacturers Association

There has been a paradigm shift in business' approach with respect to environmental responsibility. This change has resulted in a realization that profitability, consumer acceptance, and competitiveness can be advanced by pursuing sustainable initiatives in business practice. Sustainable business operations require effective leadership throughout the organization and cross-functional business processes.

Integrated Manufacturing Strategy: A Prerequisite for Environmental Excellence Full Text
Vol. 9, No. 2, p.7 
W. Rocky Newman, Miami University
Mark D. Hanna, Miami University
William E. Youngdahl, Arizona State University West

This paper is based upon a framework which links the effective integration of manufacturing strategy into overall corporate strategy (Wheelwright and Hayes 1985) and corporate attainment of environmental excellence (Winsemius and Guntram 1992). By exploring the practical implications of this framework, the paper suggests that improvement of environmental performance may depend on adequate integration of manufacturing strategy into overall corporate strategy. Hence, situations may commonly exist where corporate goals for environmental excellence remain unachieved due to insufficient development of manufacturing strategy, and manufacturing strategy integration may be a critical prerequisite to environmental excellence.

Environmental Commitments and Liabilities of U.S. Corporations: Disclosures and Implications Full Text
Vol. 9, No. 2, p.15 
Stephen J. Newell, Bowling Green University
Jerry G. Kreuze, Western Michigan University
Gale E. Newell, Western Michigan University

Liabilities associated with environmental matters have become a major concern worldwide. Clearly, environmental impact must be a major element of a corporation's decision process and should be timely reported in its financial statements. The SEC intensely reviews the adequacy of the environmental disclosures of its registrants. This review covers both required environmental disclosures and the adequacy of financial disclosures in general. Despite this scrutiny, SEC Commissioner Roberts believes that accruals of environmental liabilities do not appear in financial statements quickly enough. This study reviewed the annual report environmental disclosures of 645 Forbes 500 firms. The study results revealed that the majority of firms provide no disclosure of environmental issues. The environmental disclosures that are included tend to be limited in terms of their informational content. It is also apparent that certain industries are more likely to include environmental disclosures than are other industries. Given the enormous impact of environmental cleanup costs to companies, the authors suggest that certain environmental issues be disclosed by all firms regardless of industry affiliation.

Size Versus Sustainability: The Environmental, Social, and Competitive Diseconomies of Scale Full Text
Vol. 9, No. 2, p.23 
Dean C. Ludwig, The University of Toledo

Assumptions of growth and an appreciation of the economies which can be achieved through large scale are deeply embedded in the history of management thought. While events of the 1970s and 1980s began to expose and challenge some of these growth assumptions, little systematic attention has been given to articulating the diseconomies associated with growth and large scale. This paper examines the concept of diseconomies of scale, explores its manifestation in several streams of literature (environmental, social, and competitive), and concludes by suggesting an alternative--more sustainable--model of development.

Environmental Sustainability of Third World Economic Development: Constraints and Possibilities Full Text
Vol. 9, No. 2, p.31 
Michael A. Burayidi, University of Wisconsin

This paper discusses the constraints as well as the opportunities to sustainable development in third world countries. The argument is made that sustainable environments cannot be achieved in the third world unless the living standards of residents in the the third world are raised substantially to enable them to achieve a critical minimum standard of living. The paper outlines the policy directions that are needed to achieve such levels of development as well as the commitments needed by the developed and third world countries in this regard.

Recent Developments in Per Capita Pricing in Discount Movie Theaters Full Text
Vol. 8, No. 2, p.53
Anthony J. Greco, University of Southwestern Louisiana

In the summer of 1989, Paramount Pictures began a per capita pricing policy for distribution of its films to discount theaters. This paper examines such proposed fees, including the arguments advanced by Paramount to justify these, as well as those offered and the actions taken in opposition by the discount theaters.

The author concludes that Paramount's proposed plan is apparently merely an attempt to compensate for its own lackluster performance in 1989 at the expense of discount theaters. He offers some evidence to substantiate this and suggests that Paramount's efforts should be redirected toward improved production and marketing strategies.

An Economical Method for Correcting Forecasting Error Full Text
Vol. 7, No. 2, p.55 
Jeffrey Jarret, University of Rhode Island

The purpose of this discussion is to present business forecasters and others who utilize forecast information a method for improving forecast performance. We summarize the generation of a forecast; evaluation of a forecast; and by example illustrate the optimal linear correction method for improving forecast accuracy. This technique permits forecasters and others to decompose forecast error into its components and, in turn, reduce forecast error.

Shift-Share Analysis of Structural Change in the Local Economy: A Case Study Full Text
Vol. 4, No. 1, p. 45
Wayne Bartholomew, Indiana University at South Bend
John E. Peck, Indiana University at South Bend

The economy today is characterized by the change in its structure from manufacturing to service production. In some communities, the process has been accelerated as existing firms choose to relocate to more economically favorable sites. Th economic prospects of such communities will be determined in part by their ability to accommodate and adapt to this structural transformation. The purpose of the article is to illustrate the application of shift-share analysis as one method by which these changes can be monitored. South Bend and Elkhart, Indiana serve as case studies.

The Changing Midwest Economy: Opportunities and Challenges Full Text
Vol. 3, No. 2, p. 3
David R. Allardice, Federal Reserve Bank of Chicago
Robert H. Schnobus, Federal Reserve Bank of Chicago

What are the economic strengths of the Midwestern region and how can we build upon them?

America's Creativity in Science and Technology: Past and Future Full Text
Vol. 3, No. 2, p. 6
James A. Lee, Ohio University

America's patent rate (per 100,000 population) rose steeply to 34 from 1820-1885, hovered between 28-36 for the next 40 years then started its plunge to the present 18. This article examines the numerous possible causes often found in the literature -- expenditures on R&D, poor patent protection, high fees and pendency delays, decline in education in science and engineering, etc. While there is some evidence to support each of these, none is as important as the decline in out immigrants from Europe. Protections of possible improvements in our creativity and innovation in sciences and technology are bound in the characteristics of our present and future immigrant streams, and these are not expected to replace the role played by our previous immigrant streams.