Consumer-defined sustainably-oriented firms and factors influencing adoption

Guided by stakeholder theory, a pair of exploratory studies identifies factors that influence firms to adopt an environmentally-friendly approach to conducting business, while providing insight into consumers' perceptions of such firms. An analysis of twenty in-depth interviews and a qualitative survey yields a conceptual model, indicating that such firms are motivated by governmental intervention, organizational values, and the potential benefits that can accrue as a result of implementation. Moreover, consumers view sustainably-oriented firms as maintaining procedures, developing products, and portraying themselves accordingly. These findings are relevant to academicians as they describe the underlying rationale for such behaviors and outline a novel conceptualization of the construct, thus invigorating future research. The results are also useful for firms as they shed light on sustainability efforts that are salient to the consumer and provide support for implementation, thereby encouraging the joint maximization of social and economic objectives.     

Personalist Economics: Moral Convictions,Economic Realities,And Social Action

We examine the relationship between the administrative enforcement of environmental regulation, ethnic heterogeneity, and other community characteristics in New Jersey and New York. We find that the percentage of non-white population in a community is positively related with administrative penalties imposed on violators. However, penalties are lower in more ethnically diverse communities. This result may be due to the fact that these communities are less likely to coordinate to create solidarity across ethnic groups and demand stronger enforcement.     

The Relationship Between Economic Understanding and the Social Studies Curriculum

Much research is needed to determine the extent to which the high school social studies curriculum, and certain courses within that curriculum, contribute toward economic understanding. Boddy and Tocco report on their attempt to assess the social studies curriculum in Southwest Florida. They also single out one required course, Americanism vs. Communism, which was designed to “emphasize the free-enterprise-competitive economy of the United States,” and measure its impact on a sample of high school seniors. The findings are not encouraging. Although this study applies to one limited geographic area, others may find it interesting because it suggests the need for similar research in other parts of the nation.     

Bankruptcy Decision Making

When a firm encounters financial distress, there is a significantpossibility that, at some point, the firm itself should be shutdown and its assets put to better use. But Chapter 11 and indeedall market-mimicking reorganization regimes other than a speedyauction entrust the shutdown decision to a bankruptcy judgewho lacks information and expertise, as well as the abilityto control the timing of her decisions. Understanding the costsof entrusting the shutdown decision to a bankruptcy judge iscentral to assessing any law of corporate reorganizations. Thisarticle models the shutdown decision as the exercise of a realoption. The model suggests that the shutdown decision may loomso large in the early parts of the bankruptcy case that it erasesany significant difference between Chapter 11 and many alternativemarket-mimicking regimes. All these regimes take more time thanmandatory auctions and thus increase the cost of taking theshutdown decision away from a market actor. Moreover, the realoption itself gives parties an incentive to withhold information.Only a system of mandatory auctions both limits the amount oftime the shutdown option resides with an inexpert decision makerand forces insiders to give that decision maker sufficient informationto value the option while it is in her hands.     

Determinants of vacation travel among Israeli seniors: theory and evidence

This study investigates determinants of vacation travel among seniors. A consumer choice model is developed that incorporates effects of retirement and health on available leisure time, and effects of age and education on disposable income. The empirical implications of the model depend on leisure and income patterns, that in turn determine if time and budget constraints are binding. The model is illustrated using data collected from Israeli seniors. Results confirm theoretical predictions regarding the changing effectiveness of constraints as seniors grow older.     

Domain‐Relevant Commitment and Individual Technical Innovation Performance

Individual innovators play a critical organizational role in that they generate and often champion technology and product ideas. Amidst an ongoing stream of organizational and team innovation research, few empirical studies focus on differences in individual innovation performance despite the importance of the individual innovator to a firm's innovation efforts. Based on goal commitment theory, we introduce a new domain‐relevant commitment construct and develop a conceptualization of conditional indirect effects. Our model suggests that relevant individual abilities enhance commitment to technical innovation and innovation performance while also insulating against the impact of situational variables, making employees' commitment to innovation performance less dependent upon context. Hypotheses are tested using two sources of data and a sample of 339 R&D professionals from a Fortune 100 industrial firm. Results suggest that commitment to innovation is a key motivational factor in explaining individual technical innovation performance. Situational characteristics impact motivation differently for individuals with lower vs. higher ability levels, even in this context in which truly low‐ability individuals, in the absolute sense, have been screened out by the employment selection process. The relationship between commitment and innovation performance is strengthened by higher levels of individual ability.     

Effects of Free Trade on Women and Immigrants: CAFTA and the Rural Dominican Republic

We construct a disaggregated rural economywide model with a focus on gender and immigration as well as on the allocation of time to wage work, household production activities, and housework (reproduction). We use this model to simulate the impacts of the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) on rural incomes and welfare in the Dominican Republic. We find that elimination of agricultural import tariffs hurts both agricultural and non-agricultural households, via adverse factor-market effects, but impacts vary substantially by workers’ gender and country of origin. Females and Haitian immigrants tend to fare better than Dominican males, and there are ramifications for both market and non-market activities.     

Financial safety nets: reconstructing and modelling a policymaking metaphor

This paper explains that financial safety nets exist because of difficulties in enforcing contracts and shows that elements of deposit-insurance schemes differ substantially across countries. It shows that differences in the design of financial safety nets correlate significantly with differences in the informational and contracting environments of individual countries and that a country's GDP per capita is correlated with proxies for a country's level of: (1) informational transparency, (2) contract enforcement and deterrent rights, and (3) accountability for safety net officials. The analysis portrays deposit insurance as a part of a country's larger safety net and contracting environment. This means that there is no universal method for preventing and resolving banking problems and that the structure of a country's safety net should evolve over time with changes in private and government regulators' capacity for valuing financial institutions, disciplining risk taking and resolving insolvency promptly, and for being held accountable for how well they perform these tasks.