Banks, Lies and Bricks: The Determinants of Home Value Inflation in Spain during the Housing Boom

During the first decade of this century, Spain experienced the most important economic and housing boom in its recent history. This situation led the lending industry to dramatically expand through the mortgage market. The high competition among lenders caused a dramatic lowering of credit standards. During this period, lenders operating in the Spanish mortgage market artificially inflated appraised home values in order to draw larger mortgages. By doing this, lenders gave financially constrained households access to mortgage credit. In this paper, we analyze this phenomenon for this first time. To do so, we resort to a unique dataset of matched mortgage-dwelling-borrower characteristics covering the period 2004–2010. Our data allow us to construct an unbiased measure of property’s over-appraisal, since transaction prices in our data also includes any potential side payment in the transactions. Our findings indicate that i) in Spain, appraised home values were inflated on average by around 30% with respect to transaction prices; ii) creditconstrained households were more likely to be involved in mortgages with inflated house values; and iii) a regional indicator of competition in the lending market suggests that inflated appraisal values were also more likely to appear in more competitive regional mortgage markets. Keywords: Housing demand, appraisal values, house prices, housing bubble, credit constraints, mortgage market. JEL Classification: R21, R31

Improving demand forecasting practices in the industrial context

Demand forecasting is one of the fundamental managerial tasks. Most companies do not know their future demands, so they have to make plans based on demand forecasts. The literature offers many methods and approaches for producing forecasts. When selecting the forecasting approach, companies need to estimate the benefits provided by particular methods, as well as the resources that applying the methods call for. Former literature points out that even though many forecasting methods are available, selecting a suitable approach and implementing and managing it is a complex cross-functional matter. However, research that focuses on the managerial side of forecasting is relatively rare. This thesis explores the managerial problems that are involved when demand forecasting methods are applied in a context where a company produces products for other manufacturing companies. Industrial companies have some characteristics that differ from consumer companies, e.g. typically a lower number of customers and closer relationships with customers than in consumer companies. The research questions of this thesis are: 1. What kind of challenges are there in organizing an adequate forecasting process in the industrial context? 2. What kind of tools of analysis can be utilized to support the improvement of the forecasting process? The main methodological approach in this study is design science, where the main objective is to develop tentative solutions to real-life problems. The research data has been collected from two organizations. Managerial problems in organizing demand forecasting can be found in four interlinked areas: 1. defining the operational environment for forecasting, 2. defining the forecasting methods, 3. defining the organizational responsibilities, and 4. defining the forecasting performance measurement process. In all these areas, examples of managerial problems are described, and approaches for mitigating these problems are outlined.

Utilizing online demand generation in an engineering company

Työn tarkoituksena on selvittää miten sähköistä kysynnän herättämistä voidaan hyödyntää Mantsinen Group Ltd Oy:ssä siten, että sillä pystytään tukemaan myyntiä. Lisäksi sähköisen kysynnän herättämisen tehokkuutta tutkitaan, jotta saadaan selville onko se kannattavaa ja kuinka hyvin se sopii yritykselle. Kysynnän herättämisjärjestelmän käyttö on määritelty kirjallisuuteen perustuen ja sen jälkeen järjestelmän käyttö on aloitettu. Sähköisen kysynnän herättämisen tehokkuus mitataan kolmen kuukauden tarkastelujakson todellisella datalla. Sähköisen kysynnän herättämisen sopivuutta arvioidaan perustuen sen kustannustehokkuuteen ja tuloksiin. Työn tulokset osoittavat, että sähköinen kysynnän herättäminen on kannattavaa ja se sopii yritykselle. Sillä voidaan parhaiten tukea myyntiä järjestelmän tuottaessa laadukkaita myyntimahdollisuuksia tasaisena virtana myynnille. Myös aiemmin manuaalisesti tehtyjä työtehtäviä voidaan automatisoida ja näin vähentää myyjien työtaakkaa.

Seeder-fertilizer machine: energetic demand as a function of vegetal covering handling and manure deposition shank depth in no-tillage system

The purpose of this work was evaluating the energetic demand of a seeder-fertilizer machine as a function of the type and handling of vegetal covering culture and of the fertilizer deposition shank depth. A Valtra BM100 tractor was used implemented to pull a high precision seeder-fertilizer machine with four ranks of seeding, spaced 0.9 m for maize culture. Experiment was conducted with design in randomized blocks in factorial plots, in the Laboratory of Machines and Agricultural Mechanization experimental area (LAMMA) of UNESP-Jaboticabal, using two covering cultures (black-mucuna and crotalaria), three handlings of this covering, two mechanical (straw crusher and roller knife) and one chemical (pulverization of herbicide), performed 120 days after seeding of covering cultures and three depths of fertilizer deposition shank, completing 18 treatments, with four repetitions, totaling 72 observations. Parameters of displacement speed, gliding, force on traction bar, peak force, power on pulling bar and fuel consumption were evaluated. It was possible to conclude that force on traction bar was less for depths of 0.11 and 0.14 m of fertilizer plough shank, the same occurring for peak force, power on traction bar and volumetric consumption. The specific consumption was lower at a depth of 0.17 m of fertilizer plough shank. Covering cultures and their handlings did not interfere in the performance of machines under inquiry.

Effect of time-temperature binomial in obtaining biochemical oxygen demand of different wastewaters

Studies on the effects of temperature and time of incubation of wastewater samples for the estimation of biodegradable organic matter through the biochemical oxygen demand (BOD), that nowadays are rare, considering that the results of the classic study of STREETER & PHELPS(1925) have been accepted as standard. However, there are still questions how could be possible to reduce the incubation time; whether the coefficient of temperature (θ) varies with the temperature and with the type of wastewater and if it approaches 1.047. Aiming the elucidation of these questions, wastewater samples of dairy, swine and sewage treated in septic tanks were incubated at temperatures of 20, 30 and 35 °C, respectively for 5, 3.16 and 2.5 days. From the parameter of deoxygenation coefficient at 20 °C (k20), θ30 and θ35 were calculated. The results indicated that θ values changes with the type of wastewater, however does not vary in the temperature range between 30 and 35 °C, and that the use of 1.047 value did not implied significant differences in obtaining k in a determined T temperature. Thus, it is observed that the value of θ can be used to estimate the required incubation time of the samples at different temperatures.

Energy demand in citrus production under varied operational efficiency values

Citrus orchards are very important in Brazil, especially in São Paulo State, where occupy an area of 600,000 ha approximately. To identify sustainability degree of citrus production system, an energy analysis allows evaluating efficiency of direct and indirect applied inputs. Thus, this study aimed to evaluate citrus production system under energetic point of view, in which invested energy is paid back with citrus production; being compared within three scenarios for operational field efficiency. As result, by sensitivity analysis was determined that fuel was the main energy demander, followed by pesticides and fertilizers. In operational work capacity analysis, all combinations between efficiency (minimum, typical and maximum) and yield levels became positive in the seventh year, except for the combination minimum efficiency and 10 % less yield, positive in the eighth year. The best combination (maximum efficiency and 10 % more yield) has promoted investment payoff around the sixth and seventh year. By this study, it is possible to determine the total energy demand to produce citrus and indentify the applied inputs that need more attention by the decision-makers. Labor and seedlings can be ommited for further studies with citrus, since they were irrelevant. Management of agricultural machinery may pose an important role on decreasing environmental impact of citrus production.

Fuzzy rule-based system for evaluation of uncertainty transaction in cassava chain

A fuzzy ruled-based system was developed in this study and resulted in an index indicating the level of uncertainty related to commercial transactions between cassava growers and their dealers. The fuzzy system was developed based on Transaction Cost Economics approach. The fuzzy system was developed from input variables regarding information sharing between grower and dealer on “Demand/purchase Forecasting”, “Production Forecasting” and “Production Innovation”. The output variable is the level of uncertainty regarding the transaction between seller and buyer agent, which may serve as a system for detecting inefficiencies. Evidences from 27 cassava growers registered in the Regional Development Offices of Tupa and Assis, São Paulo, Brazil, and 48 of their dealers supported the development of the system. The mathematical model indicated that 55% of the growers present a Very High level of uncertainty, 33% present Medium or High. The others present Low or Very Low level of uncertainty. From the model, simulations of external interferences can be implemented in order to improve the degree of uncertainty and, thus, lower transaction costs.

Driver of Demand in Cargo and Passenger Traffic Between Penta Ports

Maritime transport moves around 6 billion tonnes of freight every year. The freight consists of liquid bulks (45%), dry bulks (23%) and general cargo (32%). Freight traffic and transports chains vary according to region, commodity and the origin and the destination of freight. In the European Union the ports sector handles over 90% of the trade with third countries. The share of intra-EU trade is approximately 30% of the total transportation and the number of passengers is over 200 million every year. The Baltic Sea has more than 50,000 vessels a year pass the Skaw at the northernmost tip of Denmark on their way into or out of the Baltic. Roughly 60% to 70% of these vessels are cargo vessels and 17% to 25% tankers. Ports and maritime transport play a crucial role in global commerce today. Today’s business environment is changing rapidly, and the constant changes create challenges for the transport industry and maritime traffic. Ports have to adapt to continuous changes in economic structures, logistics demands, and people’s travel and leisure patterns. In order to ensure the competitiveness of sea connections, the ports need to fully enhance multilateral cross-border understanding and cooperation. In this report the focus is on liner traffic between five ports in the Central Baltic Region: Stockholm, Tallinn, Helsinki Turku and Naantali. The report defines the drivers of the demand for cargo and passenger traffic and highlights the most important factors. The economic situation and foreign trade of each county are elaborated on with detailed information about the flows of traffic between the five ports. Based on expert interviews, the main characteristics of each port, including strengths and weaknesses, are presented. The report is based on primary and secondary data. Primary data was received through interviews and mail surveys. Secondary data was attained through a literature research, statistics, data given by the PENTA ports and webpages. The report is divided into two main parts: the drivers creating the demand for transport and the results of current cargo and passenger flows between PENTA ports.

Business on demand and its mobile solution - study with SAP ByDesign

Business On-Demand solutions are widely used by SMEs in the world today. When I started working in SAP, SAP had just launched its first version mobile solutions for Business On-Demand solutions. SAP ByDesign mobile solution is great, but I believe we could do something even better on mobile phones. My job is focusing on mobile application development. Therefore, I have lots of thoughts about how we could make the mobile solutions better serve desktop solutions and how to distinguish the mobile solutions. Finally I decide to have a further research into this area. The purpose of this thesis is trying to find out how to improve the mobile solutions for Business On-Demand, find out its benefit and limits, and distinguish SaaS mobile solutions from desktop ones. In order to conduct this research, I had some online literature search to find out the Business On-Demand market and major players in this area. I compare the materials from public internet with the ones that are used internally in SAP. I had some interviews with SAP solution manager and SAP‟s potential customers. I finally made some pro-posals for mobile SaaS solutions which I believe will make the solutions better present and much helpful to the customers.

The demand for global student talent: Capitalizing on the value of university-industry collaboration

The university sector in Europe has invested money and effort into the internationalization of higher education. The benefits of internationalizing higher education are fuelled by changing global values, choices and practices. However, arguments that serve the internationalization of higher education tend to stress either local organizational or individual interests; seldom do they emphasize the societal benefits. This dissertation investigates how collaboration between university and industry facilitates a shift in thinking about attracting and retaining global student talent, in terms of co-creating solutions to benefit the development of our knowledge society. The macro-structures of the higher education sector have the tendency to overemphasize quantitative goals to improve performance verifiability. Recruitment of international student talent is thereby turned into a mere supply issue. A mind shift is needed to rethink the efficacy of the higher education sector with regard to retaining foreign student talent as a means of contributing to society’s stock of knowledge and through that to economic growth. This thesis argues that academic as well as industrial understanding of the value of university-industry collaboration might then move beyond the current narrow expectations and perceptions of the university’s contribution to society’s innovation systems. This mind shift is needed to encourage and generate creative opportunities for university-industry partnerships to develop sustainable solutions for successful recruitment of foreign student talent, and thereby to maximize the wealth-creating potential of global student talent recruitment. This thesis demonstrates through the use of interpretive and participatory methods, how it is possible to reveal new and important insights into university-industry partnering for enhancing attraction and retention of global student talent. It accomplishes this by expressly pointing out the central role of human collaborative experiencing and learning. The narratives presented take the reader into a Finnish and Dutch universityindustry partnering environment to reflect on the relationship between the local universities of technology and their operational surroundings, a relationship that is set in a context of local and global entanglements and challenges.

The role of due diligence in cross-border acquisitions

Mergers and acquisitions (M&A) have become an important strategy for international expansion, even though numerous acquisitions fail to achieve their financial and strategic objectives. The risk associated with transactions partly depends on the extent to which the insight into the target company actually holds true. Due diligence is performed to eliminate this information asymmetry. Due diligence is an audit conducted prior to the planned transaction. It can be described as a purposeful and systematic investigation of business opportunity and risk during on-going sale negotiations. The importance of due diligence is emphasized widely in the academic literature as well as among M&A practitioners. On the other hand, researches and practitioners have differing views on what and how much is enough for a due diligence audit. Therefore, this study examines the role of due diligence in a cross-border acquisition process. The main objective of the research is fulfilled by examining the reasons for conducting due diligence, recognizing the elements affecting effective due diligence and analyzing the need and opportunities for enhancing the utilization of due diligence. For the empirical part of this qualitative study five expert interviews were conducted among experienced Finnish acquirers and advisors. In addition, five expert interviews conducted for a distinct study were utilized as a secondary source of data. The results of this study present fundamental reasons for conducting due diligence. However, conducting due diligence is not always self-evident. Doubtful attitude towards due diligence exists, though it is exceptional. Carefully planning the focus of due diligence and compiling and managing the team conducting due diligence are identified as the main elements affecting effective due diligence. Altogether, due diligence can have plural roles which in this study are categorized as the confirmatory, preparative, and cross-functional roles of due diligence. The older academic literature tends to emphasize the confirmatory role whereas the current academic discussion also supports the preparative role of due diligence. It can be argued that the roles of due diligence differ among experienced due diligence practitioners based on several factors. In attempt to increase the value of due diligence for acquirers, more than one role of due diligence is likely to exist. As a result of the different approaches and the controversy regarding the concept of due diligence, the demand for a new, wider definition of due diligence can be claimed to exist.

Designing a Demand Forecasting Process in the Fast Moving Consumer Goods Context

The purpose of this thesis was to study the design of demand forecasting processes. A literature review in the field of forecasting was conducted, including general forecasting process design, forecasting methods and techniques, the role of human judgment in forecasting and forecasting performance measurement. The purpose of the literature review was to identify the important design choices that an organization aiming to design or re-design their demand forecasting process would have to make. In the empirical part of the study, these choices and the existing knowledge behind them was assessed in a case study where a demand forecasting process was re-designed for a company in the fast moving consumer goods business. The new target process is described, as well as the reasoning behind the design choices made during the re-design process. As a result, the most important design choices are highlighted, as well as their immediate effect on other processes directly tied to the demand forecasting process. Additionally, some new insights on the organizational aspects of demand forecasting processes are explored. The preliminary results indicate that in this case the new process did improve forecasting accuracy, although organizational issues related to the process proved to be more challenging than anticipated.

Value added logistics in supply and demand chain : COSTFIX : New operation model for maintenance material logistics in paper industry

This research report illustrates and examines new operation models for decreasing fixed costs and transforming them into variable costs in the field of paper industry. The report illustrates two cases – a new operation model for material logistics in maintenance and an examination of forklift truck fleet outsourcing solutions. Conventional material logistics in maintenance operation is illustrated and some problems related to conventional operation are identified. A new operation model that solves some of these problems is presented including descriptions of procurement and service contracts and sources of added value. Forklift truck fleet outsourcing solutions are examined by illustrating the responsibilities of a host company and a service provider both before and after outsourcing. The customer buys outsourcing services in order to improve its investment productivity. The mechanism of how these services affect the customer company’s investment productivity is illustrated.