The long-run relationship between private and public savings: An empirical note

This empirical note extends the recent work by Holmes (2006) in examining the long-run relationship between private and public savings in the U.S. over the post-World War II period. Standard Engle-Granger cointegration tests fail to reject the null hypothesis of no cointegration; however, once allowance is made for an endogenous break in the cointegrating relationship, the weak form of the Ricardian equivalence proposition is supported.     

Leisure and long-run risks: An empirical evaluation on value premium puzzle

I study the ability of a long-run risk model, with nonseparable leisure and consumption, to price the cross-section of U.S. equity returns over the 1948–2015 period. The stochastic discount factor features innovations to future leisure and consumption growth as factors. The model performs well, in terms of a variety of criteria, relative to competing models in explaining the cross-section of the spread in size and value portfolios.     

Conceptualizing academic-entrepreneurial intentions: An empirical test

Policy makers are increasingly recognizing the catalytic role of academics’ spin-off companies in a national economy, which derives from their innovativeness that result in new value generation, and job creation. Although research on academics’ spin-off companies has been increasing, knowledge gaps exist as to the specific determinants and processes that characterize the emergence of academics’ entrepreneurial intentions that lead them to spin off companies. This research aims to fill this gap. Drawing from psychological and entrepreneurship research on intentionality, the authors propose a conceptual model of academics’ entrepreneurial intentions. They empirically test the model using structural equation modeling and a robust data set collected in two European academic settings to guide future research on this important topic.     

An empirical test of a decision theory model for entrepreneurial acts

A decision theory model is presented where the decision to start a firm is assumed to be a rational economic decision of a utility maximizer. The model is tested using data for business births in 82 Mississippi counties over the period 1979-1987. Results of the aggregated model are encouraging but suggest that the alternative to a risky venture is not riskless wage labour. Rather, wage labour also carries a risk which is important in determining whether to start a business. The results indicate that there is a strong economic motivation in entrepreneurial ventures which must be considered in addition to psychological factors. The model suggests that encouragement of entrepreneurial ventures can be based upon lowering thc costs of start-ups and policies that increase the probability of success.     

An empirical test of a correspondence model of expatriate managers' work adjustment

We develop and empirically test a model of expatriate managers' work adjustment. In this model we relate the fit between work-related abilities and needs of expatriate managers as well as the fit between the job requirements of, and incentives associated with, an international assignment to the level of expatriate managers' work adjustment. We test this model with data gathered by means of an electronic survey among 118 German expatriate managers. The empirical findings largely support our theoretical model. The paper enhances our understanding of expatriate managers' work adjustment and its antecedents and contributes to the theoretical and empirical basis of research into expatriate management.     

The use of multiple scenarios in sales forecasting: An empirical test

Nearly 500 annual sales forecasts were generated from the responses of 82 subjects who were presented with either a time-series plot of historical sales data by itself or with the same plus three scenarios, and were then asked to make forecasts. Sales forecasts were made in either a stable or an unstable environment. The findings did not support the claims made by scenario advocates. Scenarios did not make unexpected outcomes less surprising. Instead, scenarios were found to increase confidence in a favored forecast. Furthermore, no support was found for the contention that scenarios improved upon ‘eyeball’ extrapolations or made judgmental sales forecasts more accurate than quantitative extrapolations. Scenarios were found to be tainted by many of the same biases previously identified by cognitive psychologists.     

Market anticipation of merger activities: An empirical test

This paper empirically examines the possibility that there is leakage of information regarding a merger prior to the announcement of the first bid for the target firm. The tests for the existence of market anticipation are based on the behavior of variances implied in the premia of call options listed on the target firms' stocks. We conclude that the evidence is consistent with the hypothesis that the market anticipates an acquisition prior to the first announcement.     

Career management practices: An empirical survey and implications

A key ingredient in the knowledge economy is the development of people's careers. Companies approach career development in a variety of ways. To better understand how these approaches fit together and how they are used to address different situations, the authors surveyed 194 United Kingdom companies and identified five groups of practices. These groups were associated with certain organizational characteristics. Drawing on concepts from the careers literature, the authors suggest a two‐dimensional model to explore how these groups of practices can be systematically understood and applied. © 2000 John Wiley & Sons, Inc.     

Cognitive skill and technology diffusion: An empirical test

Cognitive skills are robustly associated with good national economic performance. How much of this is due to high-skill countries doing a better job of absorbing total factor productivity from the world's technology leader? Following Benhabib and Spiegel (Handbook of Economic Growth, 2005), who estimated the Nelson–Phelps technology diffusion model, I use the database of IQ tests assembled by Lynn and Vanhanen, 2002, Lynn and Vanhanen, 2006 and find a robust relationship between national average IQ and total factor productivity growth. Controlling for IQ, years of education is of modest statistical significance. If IQ gaps between countries persist and model parameters remain stable, TFP levels are forecasted to sharply diverge, creating a “twin peaks” result. After controlling for IQ, few other growth variables are statistically significant.     

The stochastic frontier production function and average efficiency: An empirical analysis

This paper provides an empirical estimation of a stochastic frontier Cobb-Douglas production function using micro data from a cross-section of Brazilian manufacturing firms. Following a procedure developed by Aigner, Lovell and Schmidt incorporating both stochastic and efficiency disturbance terms in the estimating model, maximum likelihood techniques are used for the estimation of the stochastic frontier. A measure of mean technical efficiency is also developed and employed with the Brazilian data. Unlike the previous empirical exercises carried out with aggregated data, the efficiency disturbance with the Brazilian micro data estimates is not swamped by the stochastic disturbance.     

Seasonal exponential smoothing with damped trends : An application for production planning

This paper reviews a spreadsheet-based forecasting approach which a process industry manufacturer developed and implemented to link annual corporate forecasts with its manufacturing/distribution operations. First, we consider how this forecasting system supports overall production planning and why it must be compatible with corporate forecasts. We then review the results of substantial testing of variations on the Winters three-parameter exponential smoothing model on 28 actual product family time series. In particular, we evaluate whether the use of damping parameters improves forecast accuracy. The paper concludes that a Winters four-parameter model (i.e. the standard Winters three-parameter model augmented by a fourth parameter to damp the trend) provides the most accurate forecasts of the models evaluated. Our application confirms the fact that there are situations where the use of damped trend parameters in short-run exponential smoothing based forecasting models is beneficial.     

Competition in multiple characteristics: An empirical test of location equilibrium

With products differentiated in multiple dimensions, the location equilibrium for a duopolistic market exhibits maximum differentiation in one dimension and minimum differentiation in all the other dimensions. This paper analyses whether this equilibrium arises using real data for the Spanish movie theatre exhibition market where the firms (cinemas) are differentiated along two main dimensions (their geographical location and the set of movies exhibited). Data not only shows a trade-off, in that closer theatres tend to choose a higher proportion of different movies, but also that there is a tendency towards either max–min or min–max product differentiation.     

The implications of efficiency differences in sustainable development: An empirical study in the consumer product industry

Firms often invest in sustainable development projects to improve their environmental and societal performance. Given the broad spectrum of these projects and limited resources, managers face challenges in determining where to improve (e.g., improving water consumption and reducing carbon footprint). The study examines the connection between environmental performance and firm performance from a new angle to help managers make informed decisions. The study examines firms in the consumer product industry regarding their efficiency in the operational aspect, the resource-related environmental aspect, and the climate-related environmental aspect. It then employs panel data models to investigate the implications of efficiency differences across these aspects on firms' financial performance and business risk. The results indicate that the effects of these differences are adverse in general. Additionally, the relationship between the operational and environmental efficiency difference and financial performance is in an inverted-U shape. The study contributes to the literature by offering theoretical support and empirical evidence for the balanced portfolio approach in managing multiple environmental concerns. The study findings also provide managerial guidelines for decision-making. To gain a greater benefit, managers should aim to minimize the performance differences across multiple environmental aspects and manage a subtle balance between operational performance and environmental performance.     

An empirical test of the model on managing the localization of human resources in the People's Republic of China

The localization of human resources has been a major objective for many transnational corporations (TNCs) in the People's Republic of China (PRC). After a review of related literature and in-depth interviews with six TNCs, Wong and Law (1999) developed a model explaining the localization process in the PRC. Based on this localization model, this study empirically tested the antecedents of successful localization results of 139 TNCs in the People's Republic of China. Results showed that, (1) whether or not localization had been identified as an important goal, (2) overall localization planning efforts and (3) actual human resources management practices were important factors leading to successful localization of expatriate positions. Implications of the results are discussed.     

An empirical model of mainframe computer investment

This paper introduces a dynamic model of investment decisions in mainframe computer systems. I estimate and test the model using detailed micro data from a company in the telecommunications industry. The model accounts for ‘technological depreciation’ which distinguishes computers from other investment goods where physical depreciation is typically a key factor underlying replacement investment decisions. The company increased its installed mainframe computer capacity by over 30‐fold over the 10‐year sample period. Part of this growth was undoubtedly due to the huge increase in performance and the corresponding drop in the per unit cost of processing capacity of mainframes, a consequence of ‘Moore's law’. However, there was also tremendous growth in the need for computers for billing, account processing and other tasks, due to the rapid growth in the telecommunications industry over this same time period. I estimate the unknown parameters of the investment model using a nonlinear least squares–nested fixed‐point algorithm (NLS‐NFXP), which solves the Bellman equation underlying the dynamic model of investment and replacement of mainframe computers by nonlinear least squares. I demonstrate that it is feasible to estimate this model on an ordinary PC, whereas standard discretization approaches to solving the firm's optimal investment policy might not even be feasible using supercomputers. I show that the estimated model fits the data very well, and accurately captures the large growth in installed mainframe capacity, the timing and magnitude of replacement investment, as well as periodic upgrades of existing mainframe units. I use the model to decompose how much of the 30‐fold increase in mainframe computer capacity is due to ‘Moore's law’ (i.e. the huge drop in the unit cost of installed mainframe capacity), and how much is due to the growth in demand for services of mainframes, due to the rapid growth in demand for telecommunications services (particularly cell phone accounts) by the firm's customers. Copyright © 2010 John Wiley & Sons, Ltd.     

An empirical model of the market for resale homes

A model of the search process for a house is formulated, where both buyers and sellers are permitted adaptively to alter reservation prices. Houses on the market in a given period are sold or withdrawn or search for a buyer is continued. The empirical predictions are examined for single-family residential homes.     

Shared values make a difference: An empirical test of corporate culture

Is the recent popular management literature on corporate culture and cultural values just a passing fad or is it highlighting some fundamental organizational realities? The results from a recent nationwide survey of American managers shows, we are convinced, that clearly articulated organizational values do make a significant difference in the lives of employees, as well as in their organization's performance. This article is an effort to integrate this broad-based data on individual managers' values with the reported experience of successful organizations that pay careful attention to their culture. It also offers ideas on how human resource managers can facilitate the alignment of personal and organizational values.     

Transshipments and inventories in the Takayama-Judge model

This paper shows that the Takayama-Judge model to solve interregional and intertemporal market equilibrium conditions faces difficulties when transshipments take place and that the difficulties relating to inventories, pointed out by Guise and others in this Journal, are special cases relating to transshipments. These difficulties can be overcome, simply by relaxing the non-negativity condition imposed on x_ii(t) terms in the material balance conditions.