THEORY AND EVIDENCE IN PSYCHOLOGY AND ECONOMICS ABOUT MOTIVATION CROWDING OUT: A POSSIBLE CONVERGENCE?

The empirical relevance of motivation crowding out is a controversial issue in economics and psychology. As already pointed out by Frey and Jegen ( 2001 ), this is partly due to the historical development of two distinct and parallel strands of literature that stem from different theoretical traditions, have radically different tenets and therefore, are difficult to reconcile. In this survey, we go back to the details of the debates that took place independently among psychologists and economists, and sketch an integrative interdisciplinary approach likely to favor a more fruitful collaboration between economics and psychology. From this perspective, experimental economics (both field and laboratory) is viewed as a major research field shedding new light on the conditions of relevance of motivation crowding out.     

Partner‐diversity effects on alliance termination in the early stage of green alliance formation: Empirical evidence from carbon‐emission reduction projects in Latin America

Partner diversity is a key influencer in interorganizational alliances, and several empirical studies have shown that its outcomes are contingent on alliance‐specific factors. We extend this research as well as the growing literature on green alliances, in which partner diversity is uniquely high. Specifically, we examine partner‐diversity effects on alliance termination in the early stage of green alliance formation. We hypothesize that in this context, size disparity increases termination likelihood, whereas organizational variety and cultural separation have the opposite effect. To test our hypotheses, we use a sample of 366 alliance projects located in Latin America and submitted to the Kyoto Protocol's Clean Development Mechanism for evaluation, validation, and registration from 2004 to 2014. Our findings contribute to several research streams and provide practical guidance for successful formation of alliances focused on environmental protection.     

Analyzing credit risk transmission to the nonfinancial sector in Europe: A network approach

We use a factor model and elastic net shrinkage to model a high-dimensional network of European credit default swap (CDS) spreads. Our empirical approach allows us to assess the joint transmission of bank and sovereign risk to the nonfinancial corporate sector. Our findings identify a sectoral clustering in the CDS network, where financial institutions are in the center and nonfinancial entities as well as sovereigns are grouped around the financial center. The network has a geographical component reflected in different patterns of real-sector risk transmission across countries. Our framework also provides dynamic estimates of risk transmission, a useful tool for systemic risk monitoring.     

Managing political imperatives in war time: strategic responses of Philips in Australia, 1939–1945

The Australian subsidiary of Dutch multi-national enterprise Philips came under secret service surveillance and faced risk of government takeover as enemy property during World War II. It was also excluded from Australian government contracts for war-related communications equipment at a time when it was forced to reduce civilian production. These threats to its assets and operations required the firm to develop an adaptive corporate strategy in order to respond to the political imperatives it faced; not just minimising political risk, but also taking advantage of the opportunities that war-related production offered during the war years and after.     

Recentralization as an Alternative to Urban Dispersion: Transformative Planning in a Neoliberal Societal Context

Growing dissatisfaction with the prevailing dispersed urban form and its generalized reliance on the automobile has resulted in the formulation of planning models seeking to substitute dispersed development with recentralization. A survey of 301 planning documents with a metropolitan focus, originating from the 58 US and Canadian urban regions with a population exceeding one million, reveals widespread support for urban recentralization. But interviews with 55 planners, involved in the preparation of these plans and/or the implementation of their proposals, highlight actual and foreseen barriers to the implementation of recentralization strategies. The article interprets the popularity of recentralization in planning documents as the outcome of planners' attempts to reconcile their commitment to sustainable development with societal factors affecting planning possibilities. Still, we anticipate serious problems in achieving large‐scale recentralization due to urban development path dependencies emanating from the prevailing urban form and dynamics, institutional structures, and from the limited urban transformative potential afforded by neoliberalism.     

(Not So) Easy Come, (Still) Easy Go? Footloose Multinationals Revisited

The central question of this paper is to test whether multinational firms (MNFs) are more likely to exit the local market than domestic firms. Using firm‐level data for Belgium, we estimate a random effects probit model taking into account the endogeneity of firm size, total factor productivity (TFP) and sunk costs in firm exit. Our results highlight two features of the ‘footloose’ nature of MNFs. First, controlling for firm and sector characteristics, the exit probability of MNFs is larger than that of domestic firms. Second, MNFs have a lower sensitivity to TFP and size than do domestic firms. This means that an improvement in economic performance on the local market will not prevent a multinational from closing its local plant as much as it would for a domestic firm.     

Is a Policy of Free Movement of Workers Sustainable?

In this paper, we study the costs and benefits of the adoption of a policy of free movement of workers. For countries to agree on uncontrolled movements of workers, short‐run costs must be outweighed by the long‐term benefits of better labor‐market flexibility and income smoothing. We show that such a policy is less likely to be adopted when workers are more impatient and less risk‐averse, when production technologies display stronger decreasing returns, and when countries trade a significant share of their products.     

EXPLAINING THE SPREAD OF TEMPORARY JOBS AND ITS IMPACT ON LABOR TURNOVER

This article provides a simple model that explains the choice between permanent and temporary jobs. This model, which incorporates important features of actual employment protection legislations neglected by the economic literature so far, reproduces the main stylized facts about entries into permanent and temporary jobs observed in Continental European countries. We find that job protection has very small effects on total employment but induces large substitution of temporary jobs for permanent jobs, which significantly reduces aggregate production.     

How did the Invisible Hand Handle Industrial Waste? By-product Development before the Modern Environmental Era

A growing number of historians have turned their attention tothe past behavior of industrialists toward their waste. Manyhave argued that the price system and competition typicallyfostered a short-term outlook that rewarded pollution ratherthan encouraging "loop-closing," a modern term that refers tothe linkages between different industries in which the residualof one becomes the input of another. Others have identifiedprecedents in this respect that are credited to ProgressiveEra reformers. Building on evidence that has, by and large,escaped the attention of the present generation of historicalwriters, this essay challenges both views by arguing that marketinstitutions, which included both profit motive and propertyrights, actually resulted in the usage of industrial by-products.Although past industrial activities did create significant pollutionproblems, perhaps our ancestors should be given more creditthan they generally are for the creativity and resourcefulnessthey displayed in profitably solving numerous environmentalproblems.