Generalized extreme value discrete choice demand models : Existence and uniqueness of market equilibria

Generalized extreme value (GEV) random utility choice models have been suggested as a development of the multinomial logit models that allows the random components of various alternatives to be statistically dependent. This paper establishes the existence of and provides necessary and sufficient uniqueness conditions for the solutions to a set of equations that may be interpreted as an equilibrium of an economy, the demand side of which is described by a multiple-segment GEV random choice model. The same equations may alternatively be interpreted in a maximum likelihood estimation context. The method employed is based on optimization theory and may provide a useful computational approach. The uniqueness results suggest a way to introduce segregation/integration effects into logit type choice models. Generalization to non-GEV models are touched upon.     

On the financial balance of input–output constructs: revisiting an axiomatic evaluation

Financial balance is fundamental to input–output (IO) analysis, and consequently the respect of this balance is one of the dominant criteria in evaluating IO constructs. Kop Jansen, and ten Raa [(1990) The Choice of Model in the Construction of Input–Output Coefficients Matrices. International Economic Review 31, 213] proved that the byproduct-technology construct (BTC) and the industry-technology construct (ITC) do not generally conserve financial balance. In contrast, Majeau-Bettez et al. [(2016) When do Allocations and Constructs Respect Material, Energy, Financial, and Production Balances in LCA and EEIO? Journal of Industrial Ecology 20, 67–84] demonstrated that the BTC necessarily respects financial balance and that the ITC is always financially balanced when applied to data recorded in monetary units. The present article resolves this paradox.     

Organizational tenure and mastery-avoidance goals: the moderating role of psychological empowerment

Mastery-avoidance (MAv) goals are recognized to be detrimental as they arouse counterproductive work-related behaviors. In the current literature, MAv goals are assumed to be more predominant among newcomers and longer-tenured employees. The alleged relationship provides important implications but yet has received scant empirical attention. In response, this study examines the proposed U-shaped curvilinear relationship between organizational tenure and MAv goal orientation. In addition, the potential moderating role of psychological empowerment on this curvilinear relationship is investigated. Based on data from 655 certified accountants, the results support the existence of the hypothesized curvilinear relationship. Also, it revealed that for employees who experience higher levels of psychological empowerment, the U-shaped relationship between organizational tenure and MAv goal orientation becomes flattened. Implications and future research are discussed.     

Product‐Marketing Innovation,Skills, and Firm Productivity Growth

The role of product and marketing innovation for productivity growth is addressed using survey and register data for the Danish economy. It is hypothesized that product and marketing innovation are complementary inputs and that innovation activities are skill‐intensive. It is established that product and marketing innovation in skill‐intensive firms results in significantly faster productivity growth. Moreover, product and marketing innovation have independent roles in productivity growth, which cannot be attributed to organizational changes. Finally, we apply an instrument variable approach for firms, innovation choices to study endogeneity. The results strongly support the idea that product–marketing innovation leads to faster productivity growth in skill‐intensive firms.     

Inflation Dynamics in a Small Open Economy

We evaluate the empirical performance of forward‐looking models for inflation dynamics in a small open economy. Using likelihood‐based testing procedures, we find that the exact formulation is at odds with Norwegian data. Moreover, some of the parameters in the model are not well identified. We also find that the inexact formulation is not rejected statistically using a test based on a minimum distance method. However, confidence regions also reveal an identification problem with this model. Instead, we find a well‐specified backward‐looking model with imperfect competition underlying the price setting, which is a model that outperforms an alternative forward‐looking model in‐sample. The backward‐looking model also forecasts somewhat better than the alternative forward‐looking model, during and after the recent financial crisis.     

Euphemisms and hypocrisy in corporate philanthropy

Over the past two decades, a growing number of large multinational corporations have come to view philanthropy as an important part of their business operations. This has stimulated research on the many different strategies that are pursued by these corporations in their attempts to become more philanthropic while remaining economically responsible. In this situation, some researchers have argued, corporations run the risk of being caught out as hypocrites. Through an analysis of the corporate social responsibility reports of the biggest multinational corporations, this article shows how the risk of hypocrisy is managed communicatively through the use of euphemisms. The article argues that the use of euphemisms makes it possible to communicate both economically and philanthropically without manifest contradictions. Euphemisms, however, are also risky in their own right.     

Exploring alternative relationships between perceived investment in employee development,perceived supervisor support and employee outcomes

The purpose of this study was to explore alternative relationships between perceived investment in employee development (PIED), perceived supervisor support (PSS), and employee outcomes in the form of attitudes (affective commitment and turnover intention) and work performance (work effort, work quality and organisational citizenship behaviour). A cross-sectional survey among 331 employees from a Norwegian telecommunications organisation showed that the relationship between PSS and employee attitudes was partially mediated by PIED. In addition, PSS was found to moderate the relationship between PIED and three self-report measures of work performance. The form of the moderation revealed a positive relationship only for high levels of PSS. These findings suggest that line managers are of vital importance in implementing developmental HR practices, either because they influence how such practices are perceived by employees, which, in turn, affects employee attitudes, or because positive experiences with both line managers and HR practices seem to be needed in order for developmental HR practices to positively influence employee performance.     

A Comparison of Sequential and Information‐based Methods for Determining the Co‐integration Rank in Heteroskedastic VAR Models

In this article, we investigate the behaviour of a number of methods for estimating the co‐integration rank in VAR systems characterized by heteroskedastic innovation processes. In particular, we compare the efficacy of the most widely used information criteria, such as Akaike Information Criterion (AIC) and Bayesian Information Criterion (BIC) , with the commonly used sequential approach of Johansen [Likelihood‐based Inference in Cointegrated Vector Autoregressive Models (1996)] based around the use of either asymptotic or wild bootstrap‐based likelihood ratio type tests. Complementing recent work done for the latter in Cavaliere, Rahbek and Taylor [Econometric Reviews (2014) forthcoming], we establish the asymptotic properties of the procedures based on information criteria in the presence of heteroskedasticity (conditional or unconditional) of a quite general and unknown form. The relative finite‐sample properties of the different methods are investigated by means of a Monte Carlo simulation study. For the simulation DGPs considered in the analysis, we find that the BIC‐based procedure and the bootstrap sequential test procedure deliver the best overall performance in terms of their frequency of selecting the correct co‐integration rank across different values of the co‐integration rank, sample size, stationary dynamics and models of heteroskedasticity. Of these, the wild bootstrap procedure is perhaps the more reliable overall as it avoids a significant tendency seen in the BIC‐based method to over‐estimate the co‐integration rank in relatively small sample sizes.