A general dependence test and applications

We describe a test, based on the correlation integral, for the independence of a variable and a vector that can be used with serially dependent data. Monte Carlo simulations suggest that the test has good power to detect dependence in several models, performing nearly as well or better than the BDS test in univariate time series and complementing the BDS test in distributed lag models. Finally, we apply our test in conjunction with the BDS test to examine models of US unemployment rates. © 1998 John Wiley & Sons, Ltd.     

Public investment under autocracy and social unrest

This paper studies the determinants of public investment under autocracy. The optimal investment level balances rent extraction with increasing the future tax base and preventing social unrest. The citizens balance their time between producing and protesting. The labor supply is downward distorted. The public investment level suffers three downward distortions and a fourth, potentially upward distortion. The joint distortions can generate moderate to large efficiency losses. Empirically we show that government spending in autocracies varies more and is less related to tax collections than in democracies. Additionally, it responds to democratization pressure.     

The Switch-Up: An Examination of Changes in Earnings Management after Receiving SEC Comment Letters

The SEC has long asserted that earnings management practices result in adverse consequences for investors. We examine whether SEC oversight affects firms' accounting quality in terms of earnings management trade-offs. We expect that increased firm-specific regulatory scrutiny, in the form of an SEC comment letter, will induce management to switch from accrual-based earnings management (AEM), which is a main focus of the SEC, to real-activities-based earnings management (REM), which is not likely to be commented on in the SEC's review process. Consistent with our predictions, we find that AEM is lower and REM is higher following the receipt of a comment letter, relative to non-comment-letter years and a propensity-score-matched sample of non-comment-letter firms. However, we do not find a significant difference in total earnings management (i.e., the sum of AEM and REM), suggesting that the higher REM acts as a substitute for lower AEM activity. We further find that our results are driven by accounting comments relating to estimates and accruals and not by classification-only comments, which suggests that a comment letter that does not question specific issues associated with estimates and accruals is not a strong enough signal to induce the firm to change earnings management behavior. Additionally, the shift to REM is attenuated for firms with high institutional ownership. These results collectively suggest that the comment letter process effectively constrains AEM but has the unintended consequence of firms, on average, switching to REM.     

Probing the role of institutional stereotypes in Americans’ evaluations of hazard-managing institutions

Abstract

Potential effects of institutional stereotypes on trust in hazard-managing organizations have been little explored. Americans’ views of attributes of government agencies, corporations, and non-profit advocacy groups (which try to influence policy) were probed in three surveys 2014–2016. Top-down ratings of positively and negatively phrased institutional attributes were based upon either perceived beliefs of ‘most Americans’ or the respondents themselves. Advocacy groups were rated most positive and least negative, and agencies the reverse, with corporations largely in the middle. Inter-individual differences in demographics, political ideology and interest, and worldviews produced modest variations in these views, supporting attributes’ culturally shared (i.e. stereotypical) nature. Explained variance in trust in institutions significantly increased (if with small to moderate effects) with the addition of stereotypes, particularly positive ones, controlling for other predictors. Institutional stereotypes may hold promise as complementary heuristics in citizen judgments of trust in hazard-managing organizations when they lack motivation or opportunity for situation-specific information; their effects when controlling for the latter (e.g. salient value similarity) remain to be tested.     

Foreign Language Training in U.S. Undergraduate IB Programs: Are We Providing Students What They Need To Be Successful?

A growing number of U.S. business schools now offer an undergraduate degree in international business (IB), for which training in a foreign language is a requirement. However, there appears to be considerable variance in the minimum requirements for foreign language training across U.S. business schools, including the provision of “business” language courses, and in what is viewed as “competence” or “fluency” in a foreign language. Similarly, business schools differ in their procedures for how the foreign language requirement is applied to foreign native speakers and/or to speakers of heritage languages. This study reports the results of an online survey that was sent to 226 schools offering a major or concentration in IB. The findings from 79 reporting schools indicate that the level of proficiency expected of foreign language learners in the IB program continues to vary widely, that few schools require a course in the business aspects of the foreign language, and that there is inconsistency in what is meant by foreign language “competence” and “fluency,” as well as in the treatment of foreign native speakers and heritage speakers of foreign languages. The results question whether students who satisfy the minimum foreign language requirements in undergraduate IB programs are adequately prepared for the professional IB world.     

Dimensions of self-selected leisure activities,trait coping and their relationships with sleep quality and depressive symptoms

Although leisure is presumed to be beneficial, certain profiles of leisure may be especially good. This paper tests whether dimensions of self-selected leisure activities (SSLAs) differentially relate to depressive symptoms and poor sleep quality, including (a) positivity (SSLA-PO), (b) difficulty (SSLA-DF), (c) distraction (SSLA-DI) and (d) thinking about negative events (SSLA-TN). Furthermore, it tests whether those low in perseverative cognitions (PCs) and high in ‘John Henryism’ active coping are equally likely to benefit from leisure. Participants (n = 362, 76% female) at a large university in Wisconsin rated two SSLAs on the dimensions above and completed measures of depression, sleep quality, PCs and active coping. Regression analyses showed that SSLA-TN predicted greater depression and poor sleep quality. For the moderators, more SSLA-DI and SSLA-TN each predicted greater depression for those more prone to PCs, and more SSLA-DI predicted more depression and worse sleep quality at lower active coping levels. Results suggest that not all leisure is equally beneficial, and have implications for the design of leisure-based interventions.     

Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise?

Homeownership is touted as the “American Dream.” It is credited with enhancing wealth; increasing civic pride; and improving self‐esteem, crime prevention, child development and educational outcomes, among other benefits. This article does not dispute any of these claims. Instead, this study hypothesizes that crowding toward homeownership raises the price of homes above their fundamental value resulting in the purchase of a home becoming a contraindicative action. After setting the holding period to the average American's tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period.     

Evolve and integrate: a new imperative for ambulatory care

A highly evolved ambulatory care delivery system possesses four key attributes: high-quality care, exceptional levels of access, outstanding patient and staff satisfaction, and cost-effective delivery of care. Such a system seeks to ease management of the patient care continuum by delivering as many services as possible under one umbrella. High-quality, cost-effective care is achieved through improved care coordination and cost management, resulting from a tight connection between physicians and hospitals and between inpatient and outpatient settings. Improved access is an important means to improving patient satisfaction.