Variable Selection and Shrinkage: Comparison of Some Approaches

A common strategy within the framework of regression models is the selection of variables with possible predictive value, which are incorporated in the regression model. Two recently proposed methods, Breiman's Garotte (B reiman , 1995) and Tibshirani's Lasso (T ibshirani , 1996) try to combine variable selection and shrinkage. We compare these with pure variable selection and shrinkage procedures. We consider the backward elimination procedure as a typical variable selection procedure and as an example of a shrinkage procedure an approach of V an H ouwelingen and L e C essie (1990). Additionally an extension of van Houwelingens and le Cessies approach proposed by S auerbrei (1999) is considered. The ordinary least squares method is used as a reference.
With the help of a simulation study we compare these approaches with respect to the distribution of the complexity of the selected model, the distribution of the shrinkage factors, selection bias, the bias and variance of the effect estimates and the average prediction error.     

HRM practices in China-Western joint ventures: MNC standardization versus localization

In recent years, multinational corporations have become increasingly ascendant in the world economy. The HRM strategies that these corporations adopt may blend global integration with local responsiveness. This paper examines the compatibility between MNC standardization and localization of different HRM practices in a sample of Sino-Western joint ventures. The findings indicate that various HRM practices have different responses to MNC standaridization and localization.     

Human resource management and the performance of Western firms in China

The study examines the relationship between human resource management and organizational performance in sixty-two manufacturing Chinese-Western joint ventures and wholly owned subsidiaries located in different parts of the People's Republic of China. A positive relation was found between firm performance and the extent to which firms used a 'high-performance' HRM system as well as the degree to which they engaged in the integration of HRM and firm strategy.     

Enhanced Annuities – Produktinnovation als Lösungsstrategie für das Annuity Puzzle?

The private annuity markets are traditionally small even though annuity products have many favorable properties from a theoretical point of view. In this paper, the discussed approaches to the so-called annuity puzzle are examined and evaluated. In particular, adverse selection has been repeatedly held responsible for the annuity puzzle. Thus, it is investigated if enhanced annuities can eliminate or reduce problems on the annuity markets caused by adverse selection. It is shown by a modeling approach that – depending on the superior knowledge of the insured – a first-best-solution can be implemented by offering enhanced annuities.     

The importance of considering optimal government policy when social norms matter for the private provision of public goods

We study optimal government policy in a reference model (Rege, 2004, Journal of Public Economic Theory, 6, 65–77) of public good provision and social approval in a dynamic setting. We show that even if complete adherence to the social norm maximizes social welfare it is by no means necessarily optimal to push society toward it. We stress the different roles of social externality and the public good problem. We discuss the problem with the standard crowding in and out argument and analyze the relationship with Pigouvian taxes. We discuss the role of the cost of public funds and show how it can create path dependency, the multiplicity of both optimal equilibria and optimal paths, and discuss the role of parameter instability.     

In the eyes of the beholder: the HRM capabilities of the HR function as perceived by managers and professionals

This study investigated factors influencing line managers' and professionals' perceptions of the HRM capabilities of the HR function. Using a sample of 913 managers and professionals in subsidiaries of 11 Nordic multinational corporations, we tested the extent to which features of the unit's HRM system, attitudes of the unit's general manager and characteristics of the HR manager helped explain the perceived HRM capabilities. The analysis revealed that perceived HRM practice visibility and HRM inducements (the link between individual performance and HRM‐related benefits) were strong predictors of individual perceptions of the HR function's HRM capabilities. The use of e‐HRM and the most senior manager's attitudes towards the unit's HRM practices were also significantly related to perceived HRM capabilities.     

William E. Simon's capacities' approach to liberty: An essay in economic citizenship

This paper discusses the philosophical underpinnings of William E. Simon's productive public service and his championing of liberty in economic citizenship and the furtherance of entrepreneurial capitalism in America. The discussion suggests that his understanding and advocacy of the instrumental role of liberty made him distinctive among policymakers and unique among political and social conservatives. Two central themes are highlighted: the principle of liberty and private initiatives to further the cause of liberty. Secretary Simon was a passionate advocate for individual liberty being ascribed the highest value in American political life and called for vigilance against the unnecessary intervention of the state in people's lives. He committed his intellectual and financial resources to the promotion of these ideals through significant initiatives in support of institutions including universities and colleges, foundations and community organizations, and groups that exhibited a strong belief in, and support of, the cause of liberty. This, Secretary Simon believed, would strengthen the free enterprise system and the spiritual values on which it rests.The overriding principle to be revived in American political life is that which sets individual liberty as the highest political value—that value to which all other values are subordinate and that which, at all times, is to be given the highest priority in policy discussions.William E. Simon A Time for Truth, 1978, p. 218.