Forbearance: An empirical analysis

Several recent articles have analyzed conditions under which allowing capital-deficient banks to continue to operate may be optimal policy. This article examines the performance of banks admitted into the FDIC's Capital Forbearance Program between 1986 and 1989 and finds that, for the majority of these banks, there was no substantial improvement in their capital ratios. We use a logit regression analysis to attempt to identify those banks whose financial condition improved with forbearance and find that banks which did improve are not clearly identifiable from pre-forbearance financial data. Instead, the banks which improved did so due to infusions of new capital, extraordinary income, and improvements in the local economies, factors which are not easily identifiable ex ante by regulators. The conclusion is that, while some grants of forbearance may result in large saving to the FDIC, in the majority of cases granting forbearance to troubled banks is unlikely to reduce the expected loss to the deposit insurer.University of HoustonUniversity of HoustonCooperative Bank of Taiwan, Taipei, Taiwan     

Correlates of Drug Testing Attitudes in a Sample of Blue Collar Workers

Using responses from 1429 workers employed in the wood products industry, we examine the relationship between drug testing (DT) attitudes and several demographic, organizational, job attitude, and job outcome variables. After controlling for age and marital status, analyses revealed moderate correlations between DT attitudes and alcohol and drug variables, DT program characteristics, organizational, and work attitude variables. DT attitudes were weakly but significantly related to absences, late work arrivals, accidents, and injuries. Implications of the findings and future research suggestions are discussed.     

Expanding the Tension‐Reduction Model of Work Stress and Alcohol Use: Comparison of Managerial and Non‐Managerial Men and Women*

abstract The tension‐reduction model that links workplace stress to alcohol use and problems has received mixed support in previous investigations. Following recommendations that this model include moderated mediated relationships ( Frone, 1999 ) using more specific forms of workplace stress, we examine the impact of gender ratio, generalized workplace abuse, and stereotype threat in an effort to predict alcohol use and problems particularly for managerial women. A total of 1410 (57 per cent response rate) employees completed a survey containing items on job stress, escapist reasons for drinking, and alcohol consumption and problems, and SEM analyses were conducted separately for managerial and non‐managerial men and women. Results revealed that: (a) these three workplace stressors were differentially related to general workplace stress for the four groups; and (b) the contributions of the three stressors and of general work stress to the alcohol‐related variables varied by group.     

Dealing with demand forecasting games in transport privatization

Privatization has increased the number of players in the decision-making process for major transport investment decisions. The main argument of this paper is that this fragmentation is creating opportunities for strategic decision-making by each actor and that this is particularly obvious in the context of demand forecasting. This paper explores some of the specific causes and consequences of this new situation, including the perverse incentives, linked to the diversity of the objectives across the actors and to the risk allocation induced by the regulatory regime. It illustrates the issues and possible solutions from a wide range of modal and country experiences. In particular, it discusses the role of the newly independent sector regulators in reconciling these diverse goals and their limitations in view of the major information asymmetries problems they face.     

Paternalistic Capitalism

Brazil’s political-economic structure has rapidly evolved over the past decade, shedding its shallow policy alignment with neoliberalism of the 1990s. Brazil’s large, diversified industrial base was painfully constructed over the course of the twentieth century. A major and sustained political realignment, which began in 2003, has resulted in two essential thrusts in development policy: (i) a “growth with equity” strategy that has dramatically reduced poverty and inequality; and (ii) a state-led “industrial policy” designed to upgrade manufacturing and direct the accumulation process toward specific sectors, highlighting and consolidating the National Innovation System (NIS). Nonetheless, as a result of the commodity boom that swept through Latin America, Brazil’s natural resource sector achieved outsized growth from 2002 to 2012. One result has been a shift toward resource intensive activities and a broad opening to low-cost Chinese manufactures. Utilizing an institutionalist framework and method, this article analyzes the cohesion of the NIS and the emergence of the “deindustrialization” debate. Also, it assesses the instrumental nature of the “growth with equity” strategy. The article hypothesizes the viability of an endogenous “neo-developmentalist” strategy, while acknowledging the emergence of fundamental exogenous forces and structural ceremonial/institutional factors that have impeded the consolidation of a Brazilian social structure of accumulation.     

Over den vermogenstoestand des lands en de noodzakelijkheid van universeele schuld-vermindering

Dit stuk vormt de zakelijke inhoud van een op 24 October jl. tot H. M. de Koningin gericht adres, geschreven in de waarschijnlijk ijdele hoop langs dezen weg de verantwoordelijke instanties te overtuigen van den ernstigen economischen noodtoestand des lands en van den geringen ernst waarmee onze economische politiek geleid wordt; en geschreven met de nevenbedoeling om door publicatie iets bij te dragen tegen de markante onverschilligheid van ons volk voor zijne levensbelangen, die o.a. tot uiting komt in het stelselmatig ontwijken van de groote vraagstukken van onzen tijd en in de cynische wijze waarop het van deskundige zijde komend waarschuwend oordeel genegeerd wordt. De oorsprong bepaalt vorm en toon van het stuk. Het is een herhaald, op economische gronden steunend pleidooi voor eene principieel nieuwe economische politiek en voor een bepaalden ver-strekkenden nood-maatregel in 't bijzonder. Ware het enkel eene kritiek geweest op het economisch wan-beleid der laatste jaren, dan zou de toon waarschijnlijk anders en wat scherper zijn uitgevallen. Ware het eene theoretische verhandeling geweest over de besproken economische vraagstukken, ook dan ware de opzet eene geheel andere geweest. Nu is de inhoud van het stuk nog eens doorgewerkt aan de hand van mij van deskundige zijde geworden opmerkingen. Ten einde de leesbaarheid niet te schaden en den oorspronkelijken vorm te behouden zijn in den tekst slechts enkele uitdrukkingen, die tot misverstand aanleiding konden geven, gewijzigd. Een aantal punten, die in den tekst of niet voldoende duidelijk of voor betwisting vatbaar zijn, zijn in voetnooten toegelicht of verdedigd. Enkele beschouwingen over besproken vraagstukken, die zich wat meer zelfstandig naast den tekst bewegen, zijn als aanteekeningen aan het slot toegevoegd.     

Managers' reactions to implementing layoffs: Relationship to health problems and withdrawal behaviors

In the present study, we investigate several outcome differences among 410 managers who either had or had not implemented layoffs (i.e., handing out warn notices) during one or more years between 2000 and 2003. Using survey data, our findings show that issuing warn notices significantly predicts increased self‐reported health problems, seeking treatment for those health problems, sleep problems, feelings of depersonalization, and intent to quit. Emotional exhaustion fully mediates the relationship between issuing warn notices and health problems, depersonalization, and intent to quit, whereas it partially mediates the relationship to seeking treatment and sleep problems. A similar pattern was found for the mediating variable of job security. © 2006 Wiley Periodicals, Inc.