Expert and entrepreneur: the unique research domain of professional service entrepreneurs

Professionals are knowledge experts who create customized solutions for clients. Many professionals practice in the context of strong professional institutions that prescribe intense socialization and codes and norms. While some professionals work as employees, many start their own firms in order to practice. Firm start-up for professionals is more prevalent than for most other occupations. While professional institutions often constraint their activities, firm start-up for professional service entrepreneurs (PSEs) involves similar entrepreneurial activities as other entrepreneurs, creating an interesting paradox worth investigating. This paper explores the uniqueness of PSEs and the firms they start, and the distinctiveness and value of research in the context of PSEs and professional service firms.     

Evaluating an Agricultural Extension Program Aimed at Improving Biodiversity in Alberta,Canada

We evaluate an agricultural extension program aimed at increasing on‐farm biodiversity in Alberta. Using reports prepared for program participants by the extension agency, customized surveys were used to collect data on whether recommended practices were adopted. Data were also collected from producers who were willing but unable to participate in the program due to its unexpected cancellation. A count model compared the number of practices adopted by participants and nonparticipants to evaluate the program's efficacy, and a probit model using participants’ adoption data were used to understand factors affecting adoption. Simple, low‐cost, and easily trialed practices were adopted at high rates, though some higher cost practices associated with observable benefits were also adopted at moderate or high rates. Farm‐specific characteristics, such as size, tenure, or group membership were also significantly linked to the likelihood of adoption. Results suggest that the extension program was successful in encouraging adoption of environmentally beneficial practices with caveats; project completion and quality were not verified, and decreasing marginal returns to extension efforts may have been realized within the small participant pool. Nous évaluons un programme d'éducation permanente en agriculture visant l'augmentation de la biodiversité fermière en Alberta. Utilisant des rapports préparés par les agences d'éducation pour les participants de programmes, des sondages individualisés ont servi à la collecte de données concernant l'adoption de pratiques recommandées. Des données ont aussi été recueillies auprès de producteurs qui auraient voulu participer mais qui n'ont pas profité du programme suivant son annulation inattendue. Un modèle de comptage a servi à comparer le nombre de pratiques adoptées par les participants et non‐participants pour évaluer l'efficacité du programme, et un modèle probit basé sur les données d'adoption par les participants a servi à comprendre les facteurs ayant un impact sur l'adoption. Les pratiques simples, peu coûteuses et faciles à tester ont été hautement adoptées. Certaines pratiques à coûts plus élevés, associées à des avantages observables, ont aussi vu des taux moyens et élevés d'adoption. Les caractéristiques spécifiques aux exploitations agricoles comme la taille, la longévité et l'adhésion à un groupe se sont aussi trouvées liées de façon significative aux probabilités d'adoption. Les résultats suggèrent que le programme d'éducation permanente a réussi à encourager l'adoption de pratiques bénéfiques pour l'environnement avec quelques bémols: la réalisation des projets et leur qualité n'ont pas fait l'objet de vérification, et la diminution des rendements marginaux en fonction des efforts d'éducation pourrait avoir été réalisée dans le cadre d'un petit bassin de participants.     

The Bullionist Controversy: Theory and New Evidence

The Bullionist Controversy in the United Kingdom is one of the first debates about the determination of the price level and the exchange rate under a paper money standard. Despite the importance of the debate in the development of monetary theory, there remains little empirical evidence that uses modern, multivariate time series techniques. The evidence that does exist provides support for the Anti‐Bullionist position. The purpose of this paper is to review the debate and develop a dynamic general equilibrium model that is capable of capturing key features of the nineteenth‐century British financial system. The model is estimated using Bayesian procedures to test the competing hypotheses. The paper provides support for the Bullionist position.     

Estimating Key Economic Variables: The Policy Implications

The current monetary policy debate has focused on current estimates and the future path of the natural rate of unemployment and the equilibrium interest rate. Estimates of the natural rate of unemployment should vary over time with changes in demographics and improvements in human capital. However, these changes should be gradual. This paper shows that the estimates of the natural rate of unemployment by Federal Reserve officials and private-sector economists seem to move pro-cyclically, potentially showing too much weight given to short-term fluctuations in economic variables. As with the natural rate, there are good reasons to expect the equilibrium interest rate to change over time. In fact, the level may actually be more responsive to current economic data, reflecting changes in aggregate savings and investment. Yet, we see that equilibrium interest rate estimates by both Federal Reserve officials and private-sector economists have declined quite dramatically over the past five years. A potential concern raised in this paper is that estimates of these critical economic variables for policy determination appear to be overly sensitive to high frequency economic data.     

Introduction to the Special Issue on “The Intersection Between Industrial Organization and Healthcare Economics”

This article introduces the special issue on the intersection between industrial organization and healthcare economics. This intersection has received increasing research interest, growing from 2% of the industrial-organization literature in 1991 to 6% in 2016. We describe the nine included articles, which cover a range of healthcare markets that include hospital services, insurance, and pharmaceuticals.     

Revealing transactions data to third parties: Implications of privacy regimes for welfare in online markets

We examine the effects of privacy policies regarding transactions (e.g., price/quantity) data on online shopping platforms. Disclosure of transactions data induces consumer signaling behavior that affects merchant pricing decisions and the welfare of platform participants. A profit‐maximizing platform prefers the disclosure policy that maximizes total welfare. Although this policy benefits sophisticated consumers, it harms unsophisticated (myopic) consumers. Consequently, the welfare effects of alternative privacy policies, data breaches, deceptive privacy policies, and opt‐in/opt‐out requirements can differ sharply, depending on the level of consumer sophistication and on other factors such as the prevailing status quo.     

“Just a Little Respect”: Effects of a Layoff Agent’s Actions on Employees’ Reactions to a Dismissal Notification Meeting

For several decades, most discussion on financial fraud has centered on the fraud triangle, which has evolved over time through various extensions and re-interpretations. While this has served the profession well, the articulation of the human side of the act is indirect and diffused. To address this limitation, this research develops a model to explain the role of human desires, intentions, and actions in indulgence of, or resistance to, the act of financial fraud. Evidence from religion, philosophy, sociology, neurology, behavioral economics, and social psychology is integrated to develop and support an alternative fraud model, called the disposition-based fraud model (DFM). To articulate the model, its two primary components, disposition and temptation, are further developed and extended. Although the DFM is generally applicable to any act of fraud, this paper focuses on executive fraud. The similarities and differences between the DFM and extant fraud models are discussed. Importantly, in light of the DFM, a re-interpretation of the fraud triangle is made to improve our understanding of the human element in it. Additionally, potential implications of the model for corporate governance are discussed, suggestions for further research are offered, and the DFM’s strengths and limitations are noted.     

The role of accounting and the accountancy profession in economic development: A research agenda

A widely held view in the accountancy profession and the donor community is that accounting and the accountancy profession play an essential role in economic development. However, our review of the academic literature finds limited empirical research evidence on the relation between accounting and the accountancy profession and economic development, including specifically whether any such relation is causal, and if so, the direction of the causality. Entities, including those comprising the donor community, policymakers, and professional accountancy organizations (PAOs), need evidence on the question of whether and how the accountancy profession contributes to economic development. Such research could assist donors in evaluating the outcomes of interventions aimed at building the capacity of PAOs in emerging and developing economies and inform future interventions. We summarize the limited academic research addressing the relation between PAOs and economic development and present insights from two roundtables facilitated by the International Association for Accounting Education and Research. We identify research opportunities and research design considerations. We hope our paper will stimulate accounting researchers to advance this literature.