Economic freedom and social capital

This article brings together two growing literatures, social capital and economic freedom, to examine whether economic freedom contributes to social capital. More specifically, using US state-level data from 1986 to 2004 and both OLS and System GMM dynamic panel estimation, we find that there is no clear trade-off between economic freedom and either the level or growth of social capital.     

Marriage traditions and investment in education: The case of bride kidnapping

The cultural practice of bride kidnapping in Kyrgyzstan may alter the returns to education for young women in an ambiguous direction due to two competing effects. On the one hand, women facing a risk of kidnapping may reduce education investment due to uncertain returns. Alternatively, since kidnapping is less likely to occur while a woman is in school, women may increase education investment to lower their personal risk of being kidnapped into marriage. Understanding how education is affected by kidnapping risk allows us to better anticipate changes in education when the laws are enforced and the risk declines. We develop a two-period utility model to highlight the effects of kidnapping risk on education and to help identify those girls who are most likely to increase their education when faced with positive regional kidnapping risk and thus most likely to reduce education if the risk is eliminated. We test the implications of the theory empirically using the Life in Kyrgyzstan data. Difference-in-difference regression results point to a negative relationship between regional kidnapping rates and education, suggesting that the elimination of kidnapping is likely to induce higher education rates of women in Kyrgyzstan. The results are informative to the literature at the intersection of marriage traditions, women's bargaining power and education attainment.     

International perspectives on future land use

The different approaches that other countries take to land use reflect many national variables, including planning systems, institutional structures, socio-cultural characteristics, population pressures and environmental priorities. Literature reviews of relevant land-use issues in Germany, Japan, the Netherlands, New Zealand and Sweden provided the background material for this paper. Other European countries appear to offer models of more pro-active and indicative land-use planning, in contrast to the adversarial system in the UK, and a much stronger regional focus. This seems to have made it easier to implement other policies, for example on renewable energy. Experience with liberalisation of agricultural markets, and the promotion of environmentally sustainable farming are both relevant to an increasingly polarised agricultural sector in the UK. Cutting across all these themes is a reflection on governance of land use. Of the countries considered, Sweden's focus on environmental sustainability, international responsibility and long-term consistency of direction appears to be most closely aligned to the coming land-use challenges. When drawing conclusions from this review it is important to bear in mind the effect of differences in bio-geographic factors, socio-economic conditions and political culture, both in other countries and within the UK.     

Managerial decision making in customer management: adaptive, fast and frugal?

While customer management has become a top priority for practitioners and academics, little is known about how managers actually make customer management decisions. Our study addresses this gap and uses the adaptive decision maker as well as the fast and frugal heuristics frameworks to gain a better understanding of managerial decision making. Using the process-tracing tool MouselabWEB, we presented sales managers in retail banking with three typical customer management prediction tasks. The results show that a majority of managers in this study are adaptive in their decision making and that some managers use fast and frugal heuristics. Usage of adaptive decision making seems to be mainly driven by low objective task difficulty, the use of fast and frugal heuristics by experience. While adaptive decision making does not impact predictive accuracy, usage of fast and frugal heuristics is associated with proportionally greater use of high predictive quality cues and a significant increase in accuracy. Hence, the existing skepticism concerning heuristics should be questioned.     

Are special items informative about future profit margins?

Most proponents of using profit margins in forecasting models suggest that unusual items be removed from income to create a core profit margin. We investigate the appropriateness of this assumption over short and long horizons. Specifically, we explore the association between profit margins and special items over windows of increasing length, from one to five years. We find that the association between past special items and future profit margins differs markedly between firms with low and high core profitability. For low profitability firms, past special items have no association with future profit margins, even over windows of five years. In sharp contrast, for high profitability firms, negative special items are associated with lower future profit margins. This suggests that some firms maintain high core profitability by becoming serial chargers and special items differ from core earnings only to the extent that the allocation process induces timing errors in reported earnings.     

Teaching Technological Knowledge: determining and supporting student learning of technological concepts

This paper reports on findings related to Technological Knowledge from Stage Two of the Technological Knowledge and Nature of Technology: Implications for teaching and learning (TKNoT: Imps) research project undertaken in 2009. A key focus in Stage Two was the trialing of different teaching strategies to determine how learning related to the components Technological Modelling (TM), Technological Products (TP) and Technological Systems (TS) could be supported. These components fall within the Technological Knowledge (TK) strand of technology in the New Zealand Curriculum (NZC) (Ministry of Education, 2007) and as such, reflect the key generic concepts or ‘big ideas’ of technology. During this stage of the research further exploration was also undertaken to determine how student understanding of these three components of technology education progressed from level 1 to 8 of the NZC (Ministry of Education, 2007). This resulted in a significant review of the Indicators of Progression for TM, TP and TS, providing clarification of the nature of the progression expected of students in each component as well as increased teacher guidance to support such progression. Common misconceptions, partial understandings and alternative concepts related to these components were confirmed and explained and five case studies were developed to illustrate strategies employed by teachers and their impact on student learning related to these three components.     

Panel evidence on finance,institutions and economic growth

This article investigates whether the level of institutional development affects the link between financial development and economic growth. Using a range of cross-sectional and panel approaches we find that the positive effect of banking development on growth is reduced as the level of institutions (e.g. rule of law, lack of corruption) increases. We do not, however, find a similar result when we examine the joint effect of institutional level and stock market development on economic growth. We attribute these results to the ability of banks to perform functions similar to those provided by well-operating institutions, whereas stock markets do not perform such comparable functions.     

The negative effects of expecting to evaluate: Reexamination and extension in the context of service failure

Service managers implement customer satisfaction evaluation cards (CSECs) to help them better understand and serve their customers. Yet a robust finding from recent research is that consumers who expect to evaluate provide lower satisfaction ratings than customers who are asked to evaluate without prior notice. This article reports results of two experiments that examine the effects of expecting to evaluate (here, the CSEC effect) in the negative context of service failure. The experiments utilize thought‐listing protocols to differentiate between vigilant processing (VPT) and negativity bias (NBT) theories and reinforce the internal validity of the CSEC effect. The studies also extend prior research by separating CSEC effects on evaluations of the service employee from CSEC effects on the service firm overall. Study 2 examines consequences of the CSEC effect not previously studied (switching, complaining, and negative word‐of‐mouth intentions) and extends external validity through an international replication. © 2005 Wiley Periodicals, Inc.     

Compensation design and political risk: the case of city managers

Although theory suggests its importance, empirical evidence on the relation between exogenous termination risk and contracted compensation packages is limited. This study takes a different approach by exploring determinants of contracted annual compensation and severance packages for city managers. Results indicate that managers exposed to greater exogenous political risk— i.e., those employed by municipalities where voters are more likely to recall elected officials—are 6 %–11 % more likely to receive severance, and receive, on average, 12 %–24 % more severance pay, but do not receive more annual compensation. Additional analyses suggest that the relation between contracted municipal severance and political risk primarily exists in states without restrictions on voters’ ability to file recalls and in municipalities with strong public sector unions. Findings also suggest that municipalities with greater expected agency problems between managers and citizens offer significantly more contracted annual compensation and severance pay.