A Career in a Less-than-Perfect Economy

Business economists work within the confines of an imperfect economy. Economic theory can only take us so far. A less-than-perfect economy is characterized by imperfect information, dynamic adjustments over time and economic policy inconsistencies. Forecasts and scenario analysis must account for these factors for our analysis to deliver results that will better inform both private and public decision makers.     

Read my lips: The role of information transmission in multilateral reform design

Context-specific knowledge is crucial to crafting multilateral reform programs. Nonetheless local knowledge often consists of unverifiable information, thus the quality of countries' reports depends on the conflict of interests faced by the recipient and the multilateral. We compare the performance of a “delegation-scheme” against a “centralization-scheme.” We find that recipients' discretion in the choice of reforms (delegation) should only be increased when the countries' local knowledge is strictly more important than the multilateral's information. Conversely, a reduction in the conflict of interests may lead the multilateral in to allowing the recipient less freedom in designing reforms (centralization). Our empirical results support these theoretical predictions.     

Deutsche am Schweizer Arbeitsmarkt

Immer mehr hochqualifi zierte deutsche Staatsbürger arbeiten im Ausland. Dabei hat die Schweiz die USA als Hauptzielland abgel?st. Da der Bedarf an gut ausgebildeten Arbeitskr?ften in der deutschen Wirtschaft steigt, erh?lt die Abwanderung Hochqualifi zierter zunehmende Aufmerksamkeit in der Politik. Dieser Beitrag quantifi ziert die Wanderungsbewegungen in die Schweiz und zeigt, in welchen Bereichen und mit welchen Qualifi kationsniveaus die Deutschen dort besch?ftigt sind.     

Diagnostic tools in beta regression with varying dispersion

We consider the issue of performing residual and local influence analyses in beta regression models with varying dispersion, which are useful for modelling random variables that assume values in the standard unit interval. In such models, both the mean and the dispersion depend upon independent variables. We derive the appropriate matrices for assessing local influence on the parameter estimates under different perturbation schemes. An application using real data is presented and discussed.     

Explaining Consumer Reactions to Corporate Social Responsibility: The Role of Gratitude and Altruistic Values

Although a lot of research establishes consumer reactions to corporate social responsibility (CSR), little is known about the theoretical mechanisms for these reactions. We conduct a field experiment with adult consumers to test the hypothesis that the effects of perceived CSR on consumer reactions are mediated by felt gratitude and moderated by the magnitude of altruistic values held by consumers. Two classes of consumer reactions are considered: intentions to (1) say positive things about the company, and (2) participate in advocacy actions benefiting the company.     

The financing of small innovative firms: the Italian case

Small firms encounter difficulties in collecting external finance due to greater information problems. For small innovative firms, whose activity is more difficult to evaluate, the cost of external finance could be even higher. This paper aims to shed light on special features in financial structures of small innovative firms, compared with firms of similar size that do not innovate. The evidence shows that small innovators rely less on financial debts and more on internal financial resources; no important differences appear for large firms. This is consistent with the view that information problems mainly affect small firms. Another finding is that small innovative firms show a lower investment sensitivity to cash flow than small non-innovative firms: it is likely that the high incidence of internal financial resources allows them more flexibility in deciding their investments. No difference in investment sensitivity to cash flow, by innovative attitude, is found for large firms.     

Does issuing equity help R&D activity? Evidence from unlisted Italian high-tech manufacturing firms

This paper evaluates the causal effect of issuing equities on the probability that a firm engages in R&D activity. Equity is a better source of external finance than debt for innovation. It does not require collateral, does not exacerbate moral hazard problems connected with the substitution of high-risk for low-risk projects, quite common when using debt, and, unlike debt, does not increase the probability of bankruptcy; equity also allows investors to reap the entire benefit of the returns of successful innovative projects. This paper focuses on high-tech firms for which asymmetric information problems are more pervasive. Implementing an instrumental variable estimation, we find that issuing equity increases the probability that the firm has R&D expenditures by 30–40%. We detect considerable heterogeneity in this effect: the impact of issuing equity is significant only for small, young and more highly leveraged high-tech firms. We also find interesting evidence that issuing equity increases R&D expenditures in relation to sales.     

Development and validation of an Integrated Organizational Safety Climate Questionnaire with multilevel confirmatory factor analysis

Meta-analytic and traditional reviews on safety climate reveal theoretical and methodological safety climate issues still open. The main aim of this study is to propose a questionnaire which combines recent and different approaches to safety climate, trying to give a contribute about these issues. The present research led to the development of a new questionnaire to measure safety climate, suitable for blue-collar workers, and to the evaluation of its psychometric properties, and usefulness to measure safety climate in the industrial sector. Multilevel confirmatory factor analysis (MCFA) was used to properly evaluate the factor structure underlying the safety climate questionnaire composed of three scales: organizational safety climate scale, supervisor’s safety climate scale and co-workers’ safety climate scale. The clear distinction, made with the use of three different scales, among safety agents (organization, supervisor, co-workers), allows the assessment of workers’ perceptions focused on each level, and allows to deeply explore, for instance, lateral relationships of supervisor’s safety climate and co-workers’ safety climate, analysing the interactions between the roles of these two safety agents. A two-level design was used, considering the individual level and the work-group level. Data collection involved 1,617 blue-collars from eight Italian manufacturing companies. The MCFA results demonstrated the importance to use proper analysis to study the factor structure of a multilevel construct as safety climate, and confirmed the theoretical structure of safety climate purposed from Griffin and colleagues, using not only psychological climate (i.e., the individual level), but also the group level safety climate.