The factor content of Chinese trade

This article demonstrates that the growth of China's exports in recent years is consistent with the Heckscher–Ohlin–Vanek (HOV) prediction of the factor content of trade based on international differences in factor endowments, after adjusting for substantial differences in factor-specific productivity. A comparison of the Organisation for Economic Co-Operation and Development input–output data in the year 2000 shows that China's labor productivity relative to the United States is the lowest in a sample of 33 diverse countries, although China's capital is more productive than US capital. This in turn demonstrates the importance of a factor-specific rather than factor-neutral productivity adjustment common in much of the HOV literature. The use of value-added data to measure factor usage helps to correct for unobserved differences in factor qualities and differences in productivity across sectors, as is demonstrated for China. China's low average labor productivity reflects the structure of the Chinese economy where most employment is still in the inefficient agriculture and service sectors, with only 11% of employment in the more modern export-oriented manufacturing sector. Due to a trade surplus, China exports both labor and capital but Leamer's (The Journal of Political Economy 1980;88: 495–503) test for trade-revealed factor abundance confirms that China is labor abundant even after substantial factor-specific productivity adjustments.     

Make my memory: How advertising can change our memories of the past

Marketers use autobiographical advertising as a means to create nostalgia for their products. This research explores whether such referencing can cause people to believe that they had experiences as children that are mentioned in the ads. In Experiment 1, participants viewed an ad for Disney that suggested that they shook hands with Mickey Mouse as a child. Relative to controls, the ad increased their confidence that they personally had shaken hands with Mickey as a child at a Disney resort. The increased confidence could be due to a revival of a true memory or the creation of a new, false one. In Experiment 2, participants viewed an ad for Disney that suggested that they shook hands with an impossible character (e.g., Bugs Bunny). Again, relative to controls, the ad increased confidence that they personally had shaken hands with the impossible character as a child at a Disney resort. The increased confidence is consistent with the notion that autobiographical referencing can lead to the creation of false or distorted memory. © 2002 John Wiley & Sons, Inc.     

The future of deforestation in the Brazilian Amazon

Concern about the future of Amazonian forests is growing as both the extent and rate of primary forest destruction increase. We combine spatial information on various biophysical, demographic and infrastructural factors in the Brazilian Amazon with satellite data on deforestation to evaluate the relative importance of each factor to deforestation in the region. We assess the sensitivity of results to alternative sampling methodologies, and compare our results to those of previous empirical studies of Amazonian deforestation. Our findings, in concert with those of previous studies, send a clear message to planners: both paved and unpaved roads are key drivers of the deforestation process. Proximity to previous clearings, high population densities, low annual rainfall, and long dry seasons also increase the likelihood that a site will be deforested; however, roads are consistently important and are the factors most amenable to policymaking. We argue that there is ample evidence to justify a fundamental change in current Amazonian development priorities if additional large-scale losses of forests and environmental services are to be avoided.     

Anreizsysteme als Instrument des Beteiligungscontrolling in Venture-Capital-Gesellschaften

Vor dem Hintergrund des Prinzipal-Agenten-Ansatzes werden vorhandene Fehlanreize in der Finanzierungsbeziehung zwischen Venture-Capital-Gesellschaften und jungen Unternehmen aufgezeigt. Diese Fehlanreize k?nnen mittels Anreizsystemen, welche ein Instrument des Beteiligungscontrolling darstellen, reduziert oder gar unterbunden werden. Nachdem die Bestandteile von Anreizsystemen und die Anforderungen an diese in allgemeiner Form dargelegt wurden, wird überprüft, inwieweit verschiedene Ausgestaltungen von Anreizsystemen, unter Berücksichtigung in der Praxis verwendeter Finanzierungsarten, diesen Anforderungen gerecht werden und insofern wirkungsvoll als Instrument des Beteiligungscontrolling eingesetzt werden k?nnen.     

Tests of restrictions in large demand systems

This paper compares some asymptotic tests of linear restrictions, using exact results and Monte Carlo methods, in systems which contain the same regressors in each equation. It is found that under a variety of conditions, a statistic suggested by Deaton provides a better approximation to the true distribution in small sample situations than the Wald, likelihood ratio or Lagrange multiplier tests.     

Exchange rate exposure

In this paper we examine the relationship between exchange rate movements and firm value. We estimate the exchange rate exposure of publicly listed firms in a sample of eight (non-US) industrialized and emerging markets. We find that exchange rate movements do matter for a significant fraction of firms, though which firms are affected and the direction of exposure depends on the specific exchange rate and varies over time, suggesting that firms dynamically adjust their behavior in response to exchange rate risk. Exposure is correlated with firm size, multinational status, foreign sales, international assets, and competitiveness and trade at the industry level.     

Nursing leadership: championing quality and patient safety in the boardroom

OBJECTIVE: Identify the extent to which hospital boards of trustees, CEOs, and CNOs are engaged in quality and safety at the leadership and governance level and how CNOs can support board engagement in quality and safety. BACKGROUND: Although research is emerging, still relatively little is known about the impact and interface of hospital boards of trustees, CEOs, and nursing executives related to improving quality and patient safety. METHODS: 73 telephone interviews were conducted with hospital board chairs, CEOs, and CNOs from a convenience sample of 63 U.S. hospitals. The interviews (22 of which were with CNOs) lasted 30 to 45 minutes and were supplemented by a focus group of five nursing executives. RESULTS: There are significant differences in the perceptions of CNOs versus those of board chairs and CEOs. CNOs reported a greater familiarity of landmark reports on quality and patient safety than board chairs. CEOs and board chairs gave substantially higher ratings to integration of quality planning. Boards have limited comprehension of salient nursing quality issues. CONCLUSION: CNOs have a critical role as boardroom champions of patient safety and quality improvement.     

Finding Donors by Relationship Fundraising

Our research utilizes revenue–business-based relationships and data to expand the donor bases of non-profit organizations. Fundraisers desire to predict who will donate and how much to allocate their marketing resources effectively. To answer both questions, we develop the Spatial Tobit Type 2 (ST2) model that integrates the auto-Logistic (AL) and auto-Gaussian (AG) models into the Tobit type 2 framework. The AL component is used to predict who is likely to donate by inferring inter-client similarities based on the clients' transaction information from the revenue businesses. Similarly, the AG component is used to predict how much based on a similar measure of inter-client similarities. The Tobit type 2 framework combines both components into the single framework of ST2. Our empirical application linking a veterinary school's medical treatment records to its donation records demonstrates that clients' relationships built through their medical treatments at the school hospital positively contribute to their donation decisions.