The hidden costs of hidden debt

We report evidence that salience may have economically signi.cant e¤ects on homeowners.borrowing behavior, through a bias in favour of less salient but more costly loans. Survey evidence corroborates the existence of such a bias. We outline a simple model in which some consumers are biased and show that under plausible assumptions this affects prices in equilibrium. Market data support the predictions of the model.

International tourists and road safety in Australia: developing a national research and management programme

Motor vehicle crashes are the leading cause of injury death for international tourists. This makes road safety an important issue for tourism authorities. Unfortunately, as it is in other areas of tourist health, the common response from the travel and tourism industry is to remain silent about this problem and to leave any mishaps in the hands of insurers. At the same time, but for different reasons, international tourists are not usually targeted for road safety initiatives by transport authorities. Given that there are considerable 'hidden' costs associated with international tourists and motor vehicle crashes, the topic should be of concern to both tourism and transport groups. This paper examines issues concerned with driving in unfamiliar surroundings for international visitors in Australia, and proposes a national research and management programme to guide policy and planning in the area. (C) 1999 Elsevier Science Ltd. All rights reserved.

Os custos de desempenho ocultos no dia-a-dia de um restaurante

RESUMO: O desafio era mostrar aquilo que poucos vêem e ninguém mede, mas que pode ajudar a resolver muitos problemas no sector da restauração. Assim, o objectivo é identificar, analisar e mensurar os custos de desempenho ocultos no dia-a-dia de um restaurante. A síntese bibliográfica reflecte a pesquisa efectuada, visando um método que nos ajudasse a medir concretamente os disfuncionamentos que ocorrem nos desempenhos diários dos empregados de mesa de um restaurante. Descobrimos a abordagem socioeconómica de Henri Savall e o seu método de avaliação dos custos de desempenho ocultos. Explicitamos de seguida este método de Savall e apresentamos uma síntese da história do restaurante, com o intuito de mostrar que, desde o seu nascimento, o restaurante é muito mais do que um local onde vamos comer. Feito este caminho, apresentamos o restaurante de luxo que escolhemos e onde aplicámos o método de avaliação dos custos de desempenho ocultos com algumas alterações, pois originalmente este método foi desenvolvido e aplicado ao sector da Indústria. Terminamos com a explicação da forma como aplicámos o método e os respectivos resultados encontrados. Concluímos que a aplicação do método escolhido revela informações preciosas para a gestão e para a tomada de decisão e enfatiza a importância do trabalho efectuado pelos empregados de mesa no seu dia-a-dia. ABSTRACT: Our challenge was to show what few people see and nobody measures, but that can help to solve lots of problems in the restaurants line of business. Our objective is to identify, analyze and measure the performance hidden costs in the daily activity of a restaurant. The bibliography used reflects the researches made, searching for a method which would help us to measure in detail the dysfunctions which occur in the daily performance of the waiters in a restaurant. We discovered the socioeconomic approach of Henri Savall and its evaluation method of the performance hidden costs. Next, we explain Savall’s method and present a synthesis of the restaurant history with the aim to show that, since its birth, the restaurant is much more than the place where people go to eat. This path made, we present the luxury restaurant which was chosen and where we have applied the evaluation method of the performance hidden costs, with some minor changes, because originally this method was developed and applied in the Industry sector. We finalize this work with the explanation of the way how we applied the method and with the presentation of the results. We have concluded that the application of the chosen method of study reveals vital information for the management department and for the decision processes, and that it emphasizes the importance of the waiters in their daily work inside a restaurant.

Gastos ocultos e competitividade empresarial

Mestrado em Contabilidade Analítica e Financeira

Disfuncionamentos ao nível da comunicação e gestão de tempo - estudo de caso

Mestrado em Contabilidade

Flood analysis of the clare river catchment considering traditional factors and climate change

The main objective of this thesis on flooding was to produce a detailed report on flooding with specific reference to the Clare River catchment. Past flooding in the Clare River catchment was assessed with specific reference to the November 2009 flood event. A Geographic Information System was used to produce a graphical representation of the spatial distribution of the November 2009 flood. Flood risk is prominent within the Clare River catchment especially in the region of Claregalway. The recent flooding events of November 2009 produced significant fluvial flooding from the Clare River. This resulted in considerable flood damage to property. There were also hidden costs such as the economic impact of the closing of the N17 until floodwater subsided. Land use and channel conditions are traditional factors that have long been recognised for their effect on flooding processes. These factors were examined in the context of the Clare River catchment to determine if they had any significant effect on flood flows. Climate change has become recognised as a factor that may produce more significant and frequent flood events in the future. Many experts feel that climate change will result in an increase in the intensity and duration of rainfall in western Ireland. This would have significant implications for the Clare River catchment, which is already vulnerable to flooding. Flood estimation techniques are a key aspect in understanding and preparing for flood events. This study uses methods based on the statistical analysis of recorded data and methods based on a design rainstorm and rainfall-runoff model to estimate flood flows. These provide a mathematical basis to evaluate the impacts of various factors on flooding and also to generate practical design floods, which can be used in the design of flood relief measures. The final element of the thesis includes the author’s recommendations on how flood risk management techniques can reduce existing flood risk in the Clare River catchment. Future implications to flood risk due to factors such as climate change and poor planning practices are also considered.

Budjetointimallin kehittäminen kuntien omistamassa kiinteistö- ja palveluyhtiössä

Diplomityö tehtiin kunnallisessa omistuksessa olevaan kiinteistö- ja palveluyhtiöön. Työn tavoitteena oli suunnitella ja luoda uusi budjetointimalli, jota kohdeyritys pystyy hyödyntämään talousjohtamisessa. Mallin keskeisiä ominaisuuksia on tulevan tilikauden toiminnan rahamääräinen ennustaminen, jonka avulla yritys pystyy hinnoittelemaan kiinteistöjen ylläpitovastikkeet ja palvelukokonaisuudet. Työn teoriaosuudessa esitellään budjetoinnin keskeiset tehtävät sekä budjetointi-järjestelmän sisältö; budjetin rakenne, budjetointiprosessin vaiheet, erilaiset menetelmät ja sovellukset sekä sen kehittämiseen liittyvät edellytykset. Työssä on esitetty perinteiseen budjetointiin kohdistunutta kritiikkiä, joiden huomioiminen on tärkeää toimivan budjetointimallin luomisessa. Empiirisessä osiossa kuvataan mallin kehittämisen vaiheita, budjetointiprosessia sekä siihen luotuja ominaisuuksia. Mallin ominaisuuksiin kuuluvat budjetointilomakkeet, niiden väliset yhteydet sekä kuluvan tilikauden ennustaminen, joka perustuu toteumaan sekä budjetoituihin tietoihin. Budjetin seuranta on järjestetty yrityksen taloudenhallintajärjestelmässä. Luodun budjetointimallin avulla yritys pystyy paremmin suunnittelemaan ja ennustamaan tulevan tilikauden toimintansa. Mallin kehittäminen jo prosessina paransi kohdeyrityksen talousjohtamista. Kustannukset saatiin paremmin esille, jolloin tärkeimpiin eriin ja ongelmiin voidaan puuttua. Mallista saatavan ennusteen avulla yritys pystyy tekemään tarvittavia toimenpiteitä tilikauden aikana. Tulevaisuudessa budjetointimallia tulisi kehittää tukemaan paremmin strategista johtamista sekä huomioimaan paremmin suorituskyvyn seuraamisen näkökulma.

An economic decision support tool for simulating paratuberculosis control strategies in a UK suckler beef herd

A dynamic, deterministic, economic simulation model was developed to estimate the costs and benefits of controlling Mycobacterium avium subsp. paratuberculosis (Johne's disease) in a suckler beef herd. The model is intended as a demonstration tool for veterinarians to use with farmers. The model design process involved user consultation and participation and the model is freely accessible on a dedicated website. The 'user-friendly' model interface allows the input of key assumptions and farm specific parameters enabling model simulations to be tailored to individual farm circumstances. The model simulates the effect of Johne's disease and various measures for its control in terms of herd prevalence and the shedding states of animals within the herd, the financial costs of the disease and of any control measures and the likely benefits of control of Johne's disease for the beef suckler herd over a 10-year period. The model thus helps to make more transparent the 'hidden costs' of Johne's in a herd and the likely benefits to be gained from controlling the disease. The control strategies considered within the model are 'no control', 'testing and culling of diagnosed animals', 'improving management measures' or a dual strategy of 'testing and culling in association with improving management measures'. An example 'run' of the model shows that the strategy 'improving management measures', which reduces infection routes during the early stages, results in a marked fall in herd prevalence and total costs. Testing and culling does little to reduce prevalence and does not reduce total costs over the 10-year period.

“Financial alchemy” or a zero sum game? Real estate finance, securitisation and the UK property market

Following the US model, the UK has seen considerable innovation in the funding, finance and procurement of real estate in the last decade. In the growing CMBS market asset backed securitisations have included $2.25billion secured on the Broadgate office development and issues secured on Canary Wharf and the Trafford Centre regional mall. Major occupiers (retailer Sainsbury’s, retail bank Abbey National) have engaged in innovative sale & leaseback and outsourcing schemes. Strong claims are made concerning the benefits of such schemes – e.g. British Land were reported to have reduced their weighted cost of debt by 150bp as a result of the Broadgate issue. The paper reports preliminary findings from a project funded by the Corporation of London and the RICS Research Foundation examining a number of innovative schemes to identify, within a formal finance framework, sources of added value and hidden costs. The analysis indicates that many of the gains claimed conceal costs – in terms of market value of debt or flexibility of management – while others result from unusual firm or market conditions (for example utilising the UK long lease and the unusual shape of the yield curve). Nonetheless, there are real gains resulting from the innovations, reflecting arbitrage and institutional constraints in the direct (private) real estate market

The evolution of mating rates in Pieris napi

In the green-veined white butterfly (Pieris napi), females obtain direct fitness benefits from mating multiply and studies have shown that fitness increases seemingly monotonically with number of matings. The reason is that at mating males transfer a large nutritious gift (a so called nuptial gift) to the females that the females use to increase both their fecundity and lifespan. In addition, if exposed to poor food conditions as larvae, females mature at a smaller size compared to males. Accordingly, it was suggested that smaller females could compensate for their size through nuptial feeding by, for instance, mating more frequently. We did not find any support for that hypothesis. On the contrary, larger females remated sooner and had a higher lifetime number of matings. Neither were smaller females able to compensate in any other way, because singly mated females and multiply mated females suffered to the same extent from their smaller size. This thesis also shows that despite the positive relationship between fitness and number of matings, there is a large variation in female mating frequency in wild populations and about every second female mates only once or twice. This variation is not dependent on how often females get courted by males, because female mating frequency was shown not to be affected by male courtship intensity. Hence, the reason for the low mating frequency could either be that males have evolved the ability to manipulate females to mate at a suboptimal rate as a measure of protection against sperm competition, or alternatively, that female mating rate is suppressed by some costs. Using two selection lines, artificially selected for either a high or a low mating rate, we showed that the variation in mating rate was mainly a female trait because which line the females were from affected their mating rate whereas which line the male was from did not. This implies that females mate at a low rate due to hidden costs or due to constraints. The same study also showed that females with a high "intrinsic" mating rate lived shorter, but only when denied remating. This led us to test the hypothesis that the cost females face is to have the ability to mate at a high rate but the cost is only paid when remating opportunities are scarce. However, we found no support for such an idea, because females with a high intrinsic mating rate held in a cold environment where the butterflies were prevented from flying and feeding did not live shorter. Neither was there an effect of a female’s mating rate on her ability to quickly break down and convert male nutrient gifts into egg material. Female mating rate did, on the other hand, affect dispersal tendency, with low mating rate females being more inclined to fly between different habitats. The underlying reason for this is still to be explored.

Extending private-collective innovation: a case study

The private-collective innovation model proposes incentives for individuals and firms to privately invest resources to create public goods innovations. Such innovations are characterized by non-rivalry and non-exclusivity in consumption. Examples include open source software, user-generated media products, drug formulas, and sport equipment designs. There is still limited empirical research on private-collective innovation. We present a case study to (1) provide empirical evidence of a case of private-collective innovation, showing specific benefits, and (2) to extend the private-collective innovation model by analyzing the hidden costs for the company involved. We examine the development of the Nokia Internet Tablet, which builds on both proprietary and open source software development, and that involves both Nokia developers and volunteers who are not employed by the company. Seven benefits for Nokia are identified, as are five hidden costs: difficulty to differentiate, guarding business secrets, reducing community entry barriers, giving up control, and organizational inertia. We examine the actions taken by the management to mitigate these costs throughout the development period.

An Investigation into Outsourcing Practice in Ireland:A New Direction in Logistics and Supply Chain Management

Companies are increasingly focusing on the development of core competencies as an integral part of their overall strategy development and implementation. The corollary of this is that functions regarded as being non-core are being outsourced. This paper investigates the case for and against outsourcing and in addition what is happening in Ireland regards outsourcing. Furthermore to analysis of current literature in the field, an Irish-wide postal and e-mail survey, as well as three case studies revealed many interesting facts. The key findings of the work are manufacturing outsourcing is now the most popular function to be outsourced for both small to medium sized enterprises (SMEs) and large enterprises. Large enterprises (LEs) do not prepare or examine hidden costs more than SMEs, nor do they differ much in relation to the use of consultants. Furthermore, the importance of time spent on preparing or producing contract, and the impact the contract can have on the supplier-buyer relation do not differ significantly. It was found that most companies outsourced within Ireland, which led to further investigation in that area. In relation to logistics outsourcing specifically, this has become very important in the supply chain over the last 20 years as an activity that was traditionally handled by firms as a support function. At that time logistics activities such as warehousing, distribution, transportation and inventory management were given low priority compared with other business functions within the organisation. However, since the customer has become more demanding, the logistics function has now become a source of competitive advantage and there has been a growing emphasis on providing good customer service.

Globala försörjningsbeslut i en industriell kontext

Purpose – The purpose with this study is to investigate which factors that needs to be considered for sourcing decisions to ensure an optimal long-term decision, and which of these factors that can be quantified in a product costing model. To fulfill this purpose two research questions have been proposed: Which factors needs to be considered for a sourcing decision? Which of these factors that needs to be considered can be quantified in a product costing model? Method – A case study was conducted to fulfill the purpose of this study. The case study produced empirical data through interviews and document studies. The empirical data was interpreted and analyzed on the basis of the theoretical framework, created through literature studies. This process produced the result of this study. Findings – Factors to be considered for a sourcing decision have been identified and categorized in four over-arching categories: unit cost, logistical factors, capability factors and risk factors. These factors have been quantified in a product costing model. A preparatory decision model was created to further integrate some risk factors that could not be quantified. Implications – Both the make or buy decision and the manufacturing location decision have been considered in the product costing model presented in this study. The product costing model visualize and take into account hidden costs, rarely considered in sourcing decisions. This further enables optimal long-term sourcing decisions. Limitations – Risk factors remain difficult to quantify. This makes it difficult to determine the cost of risk factors, and as a result of that, to include them in a product costing model. Companies with similar conditions suites the model since the case study was conducted at only one company. Whether the product costing model is true for business in other contexts remain uncertain.