nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2012‒11‒11
eight papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Do efficiency scores depend on input mix? A statistical test and empirical illustration By Mette Asmild; Jens Leth Hougaard; Dorte Kronborg
  2. Wrongful Discharge Laws and Innovation By Viral V. Acharya; Ramin P. Baghai; Krishnamurthy V. Subramanian
  3. Innovation and e-commerce in clusters of small firms: The case of a regional e-marketplace By Eleonora Lorenzini
  4. Rent Seeking and the Smoke and Mirrors Game in the Creation of Forest Sector Carbon Credits: An Example from British Columbia By G. Cornelis van Kooten; Tim Bogle; Frans P. de Vries
  5. Avaliação dos Fundos Setoriais: CT-Transporte By Fabiano Mezadre Pompermayer; Erivelton Pires Guedes
  6. Avaliação dos Fundos Setorias: CT-Info By Luis Claudio Kubota; Mauro Oddo Nogueira; Daniel Nogueira Milani
  7. THE BIPBOP PROGRAMME: Providing access to reliable, affordable and clean energy with a combined approach of investment, offers and training By Gilles Vermot Desroches; Thomas André
  8. Inequality of credit opportunities By G. Coco; G. Pignataro

  1. By: Mette Asmild (Warwick Business School, University of Warwick); Jens Leth Hougaard (Institute of Food and Resource Economics, University of Copenhagen); Dorte Kronborg (Department of Finance, Copenhagen Business School)
    Abstract: In this paper we examine the possibility of using the standard Kruskal-Wallis rank test in order to evaluate whether the distribution of efficiency scores resulting from Data Envelopment Analysis (DEA) is independent of the input (or output) mix. Recently, a general data generating process (DGP) suiting the DEA methodology has been formulated and some asymptotic properties of the DEA estimators have been established. In line with this generally accepted DGP, we formulate a conditional test for the assumption of mix independence. Since the DEA frontier is estimated, many standard assumptions for evaluating the test statistic are violated. Therefore, we propose to explore its statistical properties by the use of simulation studies. The simulations are performed conditional on the observed input mixes. The method, as it is shown here, is applicable when comparing distributions of efficiency scores in two or more groups in models with multiple inputs and one output with constant returns to scale. The approach is illustrated in an empirical case of demolition projects where we reject the assumption of mix independence. This means that it, in this case, is not meaningful to perform a complete ranking of the projects based on their efficiency scores. Thus the example illustrates how common practice can be inappropriate.
    Keywords: Data Envelopment Analysis (DEA), homogeneous efficiencies, small sample properties, Kruskal-Wallis, ranking, demolition projects
    Date: 2012
  2. By: Viral V. Acharya; Ramin P. Baghai; Krishnamurthy V. Subramanian
    Abstract: We show that wrongful discharge laws – laws that protect employees against unjust dismissal – spur innovation and new firm creation. Wrongful discharge laws, particularly those that prohibit employers from acting in bad faith ex post, limit employers' ability to hold up innovating employees after the innovation is successful. By reducing the possibility of hold-up, these laws enhance employees' innovative efforts and encourage firms to invest in risky, but potentially mould-breaking, projects. We develop a model and provide supporting empirical evidence of this effect using the staggered adoption of wrongful discharge laws across the U.S. states.
    JEL: G3 J5 J8 K31
    Date: 2012–11
  3. By: Eleonora Lorenzini (Department of Economics and Management, University of Pavia)
    Abstract: This paper draws on the literature on innovation in clusters and e-commerce to investigate how a particular kind of innovation project, the establishment of a regional e-marketplace (REM), may contribute to regional development. Using a firm-centred perspective, the role of geographical and cognitive proximity, absorptive capacity and other firm characteristics in the adoption and development of this particular type of innovation project is assessed. Hypotheses are tested with reference to the case of an REM recently established in the Italian area of Valtellina. The policy implications of the study are that REMs deserve support as an instrument of territorial development both in the establishment and in the implementation phase, more with “soft policies” than with “hard policies”.
    Keywords: clusters, innovation policy, e-commerce, proximity, Italy
    Date: 2012–10
  4. By: G. Cornelis van Kooten; Tim Bogle; Frans P. de Vries
    Abstract: From a cost standpoint and as demonstrated in this paper, it is beneficial to permit forest-sector carbon offsets in lieu of carbon dioxide emissions reduction. Such offsets play a role in voluntary markets and Europe’s Emission Trading System. However, problems related to additionality, leakages, duration and impermanence, high transaction costs, and governance raise important questions about the validity of most carbon offset credits from forestry. Using data for a forest estate in south-eastern British Columbia owned by the Natural Conservancy of Canada (NCC), we construct a forest management model to demonstrate that the planned NCC management program yields questionable forest carbon offsets. NCC management results in slightly less annual carbon sequestration than leaving the forest as wilderness, but sustainable commercial management of the site sequesters between 8 and 270 thousand tonnes of CO2 more per year than NCC management. Because commercial exploitation was the counterfactual used to justify the NCC carbon offsets, offsets were subsequently sold to non-arms-length buyers, and numbers of carbon offsets are highly sensitive to assumptions, one can only conclude that the carbon offsets generated by this (and probably many other) forest conservation projects are simply spurious.
    Keywords: climate change and forestry; forest carbon offsets; forest conservation; REDD
    JEL: Q54 Q23 P28
    Date: 2012–08
  5. By: Fabiano Mezadre Pompermayer; Erivelton Pires Guedes
    Abstract: Este Texto para Discussão faz parte da série de estudos sobre os fundos setoriais realizada pelo Ipea em parceria com o Ministério de Ciência e Tecnologia. O Fundo Setorial de Transportes Terrestres e Hidroviário (CT-Transporte) é, entre os fundos setoriais, o de menor volume de projetos e de recursos empenhados. O motivo para tão baixo desempenho foi a contenção das receitas que o Departamento Nacional de Infraestrutura de Transportes (DNIT) obteria com a exploração da infraestrutura rodoviária pelo setor de telecomunicações. Sem recursos, e com a implantação das Ações Transversais, o financiamento de projetos que seriam potenciais beneficiários do CT-Transporte passou a ocorrer por meio destas ações. Ainda assim, a oferta de recursos financeiros para os projetos em transportes era inferior à demanda. Analisando-se os projetos financiados pelos demais fundos, foi possível identificar mais de 60 projetos que estariam no escopo do CT-Transporte, contra apenas nove pelo fundo específico, evidenciando a incapacidade do fundo de fomentar a pesquisa e o desenvolvimento tecnológico no setor de transportes. A participação de empresas é baixa, apesar de ocorrer nos projetos de maior valor contratado. Considerando-se apenas os projetos diretamente financiados pelo CT-Transporte e pelas Ações Transversais de Transporte e Logística, a participação de empresas é ainda menor. Quanto aos temas estudados nos projetos, os que tiveram mais projetos financiados, bem como maior montante de recursos, foram os de intelligent transport system (ITS), transporte e logística, e transporte hidroviário interior. Poucos projetos em temas importantes para o setor de transportes foram identificados, havendo diversos temas importantes que não foram abordados nos projetos do fundo. This Discussion Paper is part of a series of studies on the Sector Funds conducted by Ipea in partnership with the Brazilian Ministry of Science and Technology. The CT-Transporte is, among sector funds, the smallest in number of projects and committed resources. The reason for such poor performance was the contention of the revenue that the DNIT would get from exploring the use of road infrastructure by the telecommunications industry. Without resources, and after the creation of the so called "Transversal Actions", the financing of projects, that would originally demand resources from the CT-Transporte, started to occur through these new actions. Still, the provision of financial resources for projects in transportation was lower than the demand. Analyzing the projects financed by other funds,we could identify more than 60 projects that would be within the scope of CT-Transporte (versus just nine by the specific fund), showing the inability of the fund to promote research and technological development in the transportation sector. Corporate participation is low, although it occurred in the bigger projects. Considering only the projects directly funded by the CT-Transporte and by the Transversal Actions for Transportation and Logistics, corporate participation is even lower. The topics studied in the projects that were granted with more projects and also more funding are: “Intelligent Transport System (ITS)”, “Transportation and Logistics” and “Inland Waterways and Transportation”. Few projects on issues important to the transportation sector were identified, with several important issues not covered in the projects of the fund.
    Date: 2012–01
  6. By: Luis Claudio Kubota; Mauro Oddo Nogueira; Daniel Nogueira Milani
    Abstract: Este estudo, que adota uma metodologia diferente de avaliação dos fundos setoriais, tem por objetivo realizar um exame da dinâmica de funcionamento e dos impactos do Fundo Setorial de Tecnologia da Informação (CT-Info) segundo o que está estabelecido como seu foco: fomentar projetos em empresas brasileiras do setor de informática. Para tanto, foi realizada uma investigação que buscou responder a três questões fundamentais: qual o perfil das empresas que obtiveram recursos concedidos pelo CT-Info? Como se desenvolveu a dinâmica de utilização destes recursos? Quais são os motivos para que empresas recorram ou não ao instrumento? Por um lado, os resultados apontam para uma captura do instrumento pelo complexo acadêmico-universitário. Por outro, para as poucas empresas beneficiárias, apesar das dificuldades burocráticas, os resultados obtidos foram muito expressivos. Palavras-chave: fundos setoriais; informática; sistema nacional de inovação. This articles adopts a differentiated methodology for evaluating sectoral funds, and its aim is to analyze the functioning and the impacts of CT-Info in what regards to its focus: to support projects in Brazilian information technology firms. To accomplish this goal, the research tried to answer three fundamental questions: what is the profile of the firms supported by CT-Info? How was the dynamics of utilization of the resources? What was the motivation for firms to use or not to use the instrument? In one hand, results point to a capture of the instrument by the Academy. On the other hand, for the few supported firms, despite bureaucratic difficulties, the obtained results were very important. Keywords: sectorial funds; information technology; national innovation system.
    Date: 2012–07
  7. By: Gilles Vermot Desroches (Schneider Electric - {-}); Thomas André (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)
    Abstract: Universal access to clean energy is a major worldwide concern which has been reaffirmed when 2012 was declared by the United Nations as the International Year of Sustainable Energy for All. Within that framework, multinational corporations are developing inclusive business approaches targeting lowincome populations. To be considered successful, these strategies must participate to development, be sustainable, and impact as many people as possible. We explore the case of Schneider Electric's BipBop programme which aims at promoting access to reliable, affordable and clean energy to the people who need it the most. We provide first key factors contributing to a broader combination of poverty eradication and protection of the environment from multinational corporations: engagement of top management; programme alignment with the strategy of the firm; incorporation of the Groups' entities; balancing global and local actions; measuring social and environmental results.
    Keywords: Base of the Pyramid, Bottom of the Pyramid, inclusive business, Access to Energy, BipBop, Schneider Electric
    Date: 2012–10–11
  8. By: G. Coco; G. Pignataro
    Abstract: This paper investigates the impact of credit allocation on heterogeneous wealth entrepreneurs from an egalitarian opportunity point of view. We show that in a model with hidden information about both entrepreneurial wealth and e¤ort aversion, and moral hazard, collateral proves ineffective in sorting good entrepreneurs from bad ones. Due to DARA, poor entrepreneurs, other things equal realize better projects. This notwithstanding, they may be rationed out or obtain a loan only at the cost of cross subsidizing bad projects realized by rich entrepreneurs.
    JEL: D31 D82 G21
    Date: 2012–10

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