There is power in a union? Union members' preferences and the conditional effect of labour unions on left parties in different welfare state programmes

This article studies the effect of labour unions on policy-making in six different parts of the welfare state (passive and active labour market policy, employment protection, old-age pensions, health care and education) in OECD countries after 1980 with a two-level strategy: At the micro-level, we investigate union members’ preferences. Ordered logit regression analyses indicate that union members favour generous social policies more strongly than non-members. Moreover, this effect is stronger for programmes closely related to the labour market than for programmes without a strong labour market link. At the macro-level, we investigate the conditional effect of unions on left parties expecting the former to push the left towards more generous labour market-related (but not towards less-labour market-related) programmes. Regression analyses essentially provide evidence for such a relationship. Overall, unions have been powerful in promoting their members’ social policy preferences via left parties in government but their power is recently vanishing.     

STATE DEPENDENCE AND HETEROGENEITY IN HEALTH USING A BIAS‐CORRECTED FIXED‐EFFECTS ESTIMATOR

This paper estimates a dynamic ordered probit model of self‐assessed health with two fixed effects: one in the linear index equation and one in the cut‐points. This robustly controls for heterogeneity in unobserved health status and in reporting behavior, although we cannot separate both sources of heterogeneity. We find important state dependence effects, and small but significant effects of income and other socioeconomic variables. Having dynamics and flexibly accounting for unobserved heterogeneity matters for those estimates. We also contribute to the bias correction literature in nonlinear panel models by comparing and applying two of the existing proposals to our model. Copyright © 2012 John Wiley & Sons, Ltd.     

New development: Governmental accounting reforms in Latin America. The case of the municipality of Medellín,Colombia

ABSTRACT

Government accounting reforms in Medellín (Colombia) were promoted with the adoption of New Public Management principles. The reforms began by introducing accrual accounting, using this financial information for decision-making and, finally, adopting international standardization and comparability. This article shows how and why the government of Medellín modernized its public financial management systems to achieve transparency, accountability and efficiency.     

The influence of proximity to market on bean producer prices in Nicaragua

Transport costs are an important determinant of smallholder welfare in developing countries. In particular, transport costs influence the prices that smallholders receive for their produce. We propose a simple way of quantifying this influence. Taking the example of bean producers in Nicaragua, we employ a hedonic price model to estimate the effects of a smallholder's proximity to markets on the prices that he/she receives, while controlling for other factors such as the volume and quality of beans sold. We find that on average each additional minute of travel time reduces farm gate prices by 2.5 cents per quintal. Based on these results, the annual income from bean sales of the average smallholder in our sample would increase by between 24 and 110 USD if travel time to markets were reduced by 25%. Estimates of this nature can make an important contribution to cost–benefit assessments of infrastructure investments.     

The different roles played by venture capital and private equity investors on the investment activity of their portfolio firms

Venture capital (VC) and private equity (PE) investors play different roles in their portfolio companies. We argue that this will translate in a recognizable difference in the investment sensitivity to cash flows of portfolio companies and its evolution after the first investment round. We hypothesise that VC, thanks to its ability in overcoming asymmetries in information, will entail a reduction in the financial constraints which hampered the growth of investee firms. We predict, instead, a greater dependency of investments to cash flow for PE-backed companies, driven by the renewed interest for growth of their management combined with higher leverage. We find evidence confirming our hypotheses on a large panel of Spanish unlisted firms in low and medium technology sectors, where both VC and PE firms are active.     

Comparing children's explicit and implicit understanding of advertising and placement on TV

ABSTRACT

Although product placement is a frequently used promotional tool in local and international productions, particularly in combination with advertising, its study has been almost neglected in Latin America. This paper examines the explicit (verbal) and implicit (cued) understanding of advertising and placement in a sample of 9-, 12- and 15-year-old children from Chile. The results showed a more sophisticated comprehension of advertising in comparison with product placement. They also revealed that age is positively correlated with a more sophisticated understanding of both placement and advertising. Finally, significant differences were observed when comparing the use of verbal and cued methods. The results are discussed in terms of prior literature and their practical implications.     

Virtual Teams and International Business Teaching and Learning: The Case of the Global Enterprise Experience (GEE)

The increasing importance of global virtual teams in business is reflected in the classroom by the increased adoption of activities that facilitate real-time cross-cultural interaction. This article documents the experience of students from two Colombian universities who participated in a collaborative international project using virtual teams as part of the international business (IB) curriculum. The data reveals that in spite of challenges associated with time zone differences, technology limitations, and trust issues, the vast majority of students perceived that the use of virtual teams as a teaching tool facilitates cultural understanding and IB-relevant learning. The findings of this research suggest that online experiential exercises can be an effective approach in teaching and in the development of virtual collaboration skills.     

Gender differences in socially responsible consumption. An experimental investigation

We report on a simple experimental study designed to investigate the different gender attitudes towards socially responsible consumption. We use the Vote-with-the-Wallet Game, (VWG), a version of a repeated multiplayer prisoner’s dilemma that mimics the characteristics of the choice between a conventional and a socially responsible product. More precisely we test the effect of three factors: two different frames and an ex-post redistribution mechanism that transfers resources from purely self-interested consumers to responsible ones. We find that women remain significantly more cooperative (choosing more often the responsible good) when the redistribution mechanism is interrupted and are significantly less satisfied about the behaviour of the other players in that treatment.