Stochastic specification of production functions and economic implications

The stochastic specification of input-output response is examined. Postulates are set forth which seem reasonable on the basis of a priori theorizing and observed behavior. It is found that commonly used formulations are restrictive and may lead to inefficient and biased results. A function which satisfies the postulates is suggested. Two- and four-stage procedures for estimation of the resulting function are then outlined. The estimators are shown to be consistent and, in the latter case, asymptotically efficient under normality.     

A general equilibrium model of production with a random marginal rate of substitution

This paper examines the qualitative effects of risk aversion in a two-sector general equilibrium model where uncertainty is due to random production in one of the sectors. Technology is more general than used previously and provides for a random marginal rate of substitution. Also, the possibility that risk is decreasing in factor usage is considered. Results show that earlier qualitative conclusions on the effects of changing risk may be reversed under these cases.     

Experimental Evidence for Attractions to Chance

Divide the decision-maker's future into: (i) a pre-outcome period (lasting from the decision until the outcome of that decision is known), and (ii) a sequel post-outcome period (beginning when the outcome becomes known). Anticipated emotions in both periods may influence the decision, in particular, with regard to an outcome that matters to the person, the enjoyable tension from not yet knowing what this outcome will be. In the experiments presented, lottery choice can be explained by this attraction to chance, and cannot be explained by either convex von Neumann–Morgenstern utility, or by rank-dependent risk-loving weights: attraction to chance is a separate motivator.     

Common ownership and competition in product markets

We investigate the relation between common institutional ownership of the firms in an industry and product market competition. We find that common ownership is neither robustly positively related with industry profitability or output prices nor is it robustly negatively related with measures of nonprice competition, as would be expected if common ownership reduces competition. This conclusion holds regardless of industry classification choice, common ownership measure, profitability measure, nonprice competition proxy, or model specification. Our point estimates are close to zero with tight bounds, rejecting even modestly sized economic effects. We conclude that antitrust restrictions seeking to limit intra-industry common ownership are not currently warranted.     

CSR-Washing is Rare: A Conceptual Framework,Literature Review,and Critique

Growth in CSR-washing claims in recent decades has been dramatic in numerous academic and activist contexts. The discourse, however, has been fragmented, and still lacks an integrated framework of the conditions necessary for successful CSR-washing. Theorizing successful CSR-washing as the joint occurrence of five conditions, this paper undertakes a literature review of the empirical evidence for and against each condition. The literature review finds that many of the conditions are either highly contingent, rendering CSR-washing as a complex and fragile outcome. This finding runs counter to the dominant perception in the general public, among activists, and among a vocal contingent of academics that successful CSR-washing is rampant.     

Contingent Commissions,Insurance Intermediaries,and Insurer Performance

This research investigates the relationship shared by contingent commission usage and insurer performance. We assess performance using both frontier efficiency and financial performance measures. Our findings reveal that the relationship is complex and varies across differing insurer business models. We find that nonusers of contingent commissions are more cost and revenue efficient than are users of contingents. However, among insurers that use contingents, relatively higher levels of use are associated with more efficient operations and also better financial performance. Additionally, these findings are conditioned on the type of distribution system the insurer employs.     

Agricultural arbitrage and risk preferences

A structural intertemporal model of agricultural asset arbitrage equilibrium is developed and applied to agriculture in the North Central region of the US. The data are consistent with a unifying level of risk aversion. The levels of risk aversion are more plausible than previous estimates for agriculture. However, the standard arbitrage equilibrium is rejected; perhaps, this is due to the period and the shortness of the period studied.     

Could the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 be Helpful in Reforming Corporate America? An Investigation on Financial Bounties and Whistle-Blowing Behaviors in the Private Sector

The purpose of this study is to investigate whether the availability of financial bounties and anonymous reporting channels impact individuals’ general reporting intentions of questionable acts and whether the availability of financial bounties will prompt people to reveal their identities. The recent passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 creates a financial bounty for whistle-blowers. In addition, SOX requires companies to provide employees with an anonymous reporting channel option. It is unclear of the effect of these provisions as they relate to whistle-blowing. Our results indicate that a financial bounty has the potential to increase participants’ propensity to report questionable acts and their willingness to reveal their identities when reporting, but the availability of an anonymous reporting channel does not affect participants’ propensity to report questionable acts. These findings could potentially help corporate management, government policy makers and accounting researchers to assess the effectiveness of their internal compliance programs and help determine if financial bounties in the private sector could encourage whistle-blowing.     

Grade-Risk: An Insurable Event in the Classroom

Grade-risk provides a powerful ally in establishing relevance between course content and the lives of students. As used in this article, grade-risk refers to the potential for the loss of points on examinations, quizzes, etc. This article describes the rationale and feasibility associated with the introduction of a student-centered grade insurance project that provides some measure of protection against grade-risk. The project engages students on multiple levels and in various capacities resulting in a significantly enriched learning experience. The authors include examples employed in their own classroom in demonstrating the feasibility and validity of grade insurance as a learning tool.     

Health and Motivational Factors In Sickness Absence

The influence on sickness absence of both attendance motivation and ill-health is addressed in a national sample of British working people. Three patterns of absence are studied, those suggested to be attributable to differences in ill-health alone, those considered to arise from variations in attendance motivation alone and those thought to be due to variations in both factors. the first pattern is illustrated by the finding that age is positively associated with sickness absence, contrary to suggestions from published meta-analyses. Variations in both ill-health and attendance motivation are implicated in the demonstration that the positive relationship with age is significantly non-linear, with elevated rates of sickness absence at younger as well as at older ages; minimum levels of sickness absence were found to be at 41 years for men and 38 years for women. Motivational (rather than ill-health) differences are suggested to underlie the observed greater sickness absence among employed people in comparison with the self-employed, and among full-time workers in relation to part-timers. Differences associated with gender, socio-economic status, shift-working and chronic health impairment are also reported here.