Is the small-ball strategy effective in winning games? A stochastic frontier production approach

Since the Japanese National Baseball team won the inaugural World Baseball Classic, “small ball” has been accepted, at least by the media, as a mainstream form of baseball management in Korea. Small ball refers to a manager’s active intervention or strategy implementation in baseball games. In general, the frequency of managers’ orders for play actions such as a sacrifice bunt is higher in Asian baseball than in North American baseball. This paper attempts to statistically test the hypothesis that small ball is effective in winning games by using data from Korean baseball. The panel data analysis of a stochastic production frontier model presents somewhat mixed empirical results, but the overall evidence suggests that small ball actually has detrimental effects on the number of runs scored.     

Bargaining power and the structure of salaries in major league Baseball

The relationship between bargaining power and the structure of salaries in major league baseball has been a subject of much empirical study. The evidence provided in this paper suggests that eligibility for final-offer arbitration does not result in a ‘fixed’ reduction in monopsonistic exploitation. Rather, the level of exploitation diminishes markedly in the first season of eligibility and continues to decrease in subsequent seasons. By the time the player reaches free agency eligibility, he can expect to earn the same single-season salary that he would as a free agent.     

Consensus-Performance Research: Theoretical and Empirical Extensions*

Research on the consensus-performance relationship has typically used correlational data to examine the simple, bivariate relationship between top management team consensus and firm performance. the results of this research are equivocal. Recent theoretical work, however, suggests a number of ‘third variables’ that may provide additional insight into the consensus-performance relationship through the ‘process of elaboration’. This paper presents theoretical models, based on recent theory building, that may be appropriate for incorporating these additional variables in future research.     

On the manager as principal clerk

Until recently, economic theory and economists treated the management process with benign neglect. Insofar as business enterprises — the firms of economic theory – require managers to oversee their daily operations, these managers are implicitly viewed as fungible ‘principal clerks’. This paper makes this view explicit and considers whether it is valid for a particular class of manager, that of a major league baseball team.     

The Crash and Ricardo: Does the US Budget Deficit Matter?

How important was the American budget deficit as a cause of the crash? Geoffrey Wood and Mahmoud Pradham of the City University Business School argue that the deficit was not even a contributory cause. A modern version of the‘Ricardian Equivalence Theorem’suggests that the effect of government borrowing on the economy can be greatly exaggerated.     

Diffusing ‘best practice’ in Chinese multinationals: the motivation,facilitation and limitations

With increasing global integration, the diffusion of ‘best practice’ is a critical activity in MNCs, particularly for those from developing countries which have recently joined global markets. Recent research has suggested that ‘reverse diffusion’ is an important approach to the internationalization of management. However, there is little empirical evidence in support of this argument. This paper draws on in-depth case studies of the UK subsidiaries of Chinese MNCs to explore the nature and characteristics of diffusion activities. It confirms that ‘reverse diffusion’ played a positive part in the internationalization process of these companies, although the impact on the home firms is limited. It also found that new forms of management transfer are emerging in these Chinese MNCs. This suggests that the diffusion of ‘best practice’ in MNCs can be varied with different national and organizational characteristics.     

Where is Urban Politics?

We outline the rationale for reopening the issue of the spatiality of the ‘urban’ in urban politics. There is a long tradition of arguing about the distinctive political qualities of urban sites, practices and processes. Recent work often relies on spatial concepts or metaphors that anchor various political phenomena to cities while simultaneously putting the specificity of the urban itself in question. This symposium seeks to extend debates about the relationship between the urban and the political. Instead of asking ‘what is urban politics?’, seeking a definition of the urban as a starting point we begin by asking ‘where is urban politics?’. This question orients all of the contributions to this symposium, and it allows each to trace diverse political dimensions of urban life and living beyond the confines of ‘the city’ as classically conceived. The symposium engages with ‘the urban question’ through diverse settings and objects, including infrastructures, in‐between spaces, professional cultures, transnational and postcolonial spaces and spaces of sovereignty. Contributions draw on a range of intellectual perspectives, including geography, urban studies, political science and political theory, anthropology, cultural studies, sociology, planning and environmental studies — indicating the range of intellectual traditions that can and do inform the investigation of the urban/political nexus.     

Accounting,economics and management in France: the slow emergence of an 'accounting science'

The relationship (or what might be better described as the absence of a relationship) between accounting, economics and management is an important feature of a French tradition built on a society in which accountants have been regarded as the ‘poor relations’ of the business community. This pattern is presented in the second part of the title of this article as ‘the slow emergence of an accounting science’. French business traditions have influenced accounting mainly through the property rights established by the French Revolution. The French bourgeoisie's concern with inheritance gave rise to a form of accounting which emphasized the balance sheet and inventory valuation, rather than cash flow analysis. Throughout the 19th century accounting in France was taught as a technical subject, secondary to the ‘noble’ disciplines such as engineering, law and later, economics. In the mid-20th century, the state, via the ‘Conseil National de la Comptabilité’ (the National Accounting Council) laid down accounting principles under the ‘Plan Comptable’. The separation between financial accounting and cost accounting reflected that between entrepreneurs or owners on the one hand and engineers or administrators on the other. Unlike the Anglo-Saxon countries, France did not recognize accountancy as a profession in its own right until recently. Recent years have seen a radical transformation of French accounting policies and conventions under the combined influence of the emerging requirements of financial markets, the globalization of business and the growing independence of the accountancy profession.     

Indirect Convertibility,Equity‐Based Banking and Financial Stability

Banking reform proposals put forward in the wake of the recent financial crisis maintain that equity‐based banking would be stable and would prevent bank runs. This article argues that complementing this form of banking with an indirect convertibility monetary standard and thereby dispensing with base money would enhance financial stability further. Banks would not hold a distinctive asset (base money) that would be called upon by customers at short notice, thereby removing the possibility of bank runs. No discrepancy in value between the two sides of a bank's balance sheet would arise as its assets (securitised loans) would be marked to market. Unlike other recent contributions, the intermediation model outlined here is not ‘limited purpose’ in nature as banks would not be restricted in the form of lending activity they can pursue. Common sources of banking and financial instability – liquidity risk, solvency risk, moral hazard – would be absent.     

Combatant recruitment and the outcome of war

What determines who wins a civil war? We propose a simple model in which the power of each armed group depends on the number of combatants it is able to recruit. This is in turn a function of the relative ‘distance’ between the group leadership and potential recruits. We emphasize the moral hazard problem of recruitment: fighting is costly and risky so combatants have the incentive to defect from their task. They can also desert altogether and join the enemy. This incentive is stronger the farther away the fighter is from the principal, since monitoring becomes increasingly costly. Bigger armies have more power but less monitoring capacity to prevent defection and desertion. This general framework allows a variety of interpretations of what type of proximity matters for building strong cohesive armies ranging from ethnic distance to geographic dispersion. Different assumptions about the distribution of potential fighters along the relevant dimension of conflict lead to different equilibria. We characterize these, discuss the implied outcome in terms of who wins the war, and illustrate with historical and contemporaneous case studies.     

Dominant CEO,Deviant Strategy,and Extreme Performance: The Moderating Role of a Powerful Board

This study examines the effect of dominant CEOs – defined as CEOs who are very powerful relative to other executives in their top management teams – on firm strategy and performance. Based on a sample of 51 publicly traded, single‐business firms from the US computer industry for the period 1997–2003, our results suggest that firms with dominant CEOs tend to have a strategy deviant from the industry central tendency and thus extreme performance – either big wins or big losses. Further, powerful boards weaken the tendency of dominant CEOs towards extremeness and, more important, improve the likelihood of dominant CEOs having big wins versus big losses. This study reconciles the pessimistic and heroic views regarding dominant CEOs, and suggests that the notion of power balance should be considered in a broader context.     

‘Sameness’ and ‘Difference’ Revisited: Which Way Forward For Equal Opportunity Initiatives?

Recent interest in ‘managing diversity’ has reopened debates about forms of equality in the workplace. Approaches to equality developed in the 1970s and 1980s have been characterized as an attempt to ensure that if individuals bring the same abilities to work, or perform in the same way, they should receive the same access to jobs and employment benefits, regardless of social group membership. Managing diversity appears to be about a more positive valuing of difference. Benefits are seen to derive from different perspectives and approaches and these should be nurtured and rewarded rather than suppressed. Feminists have long argued about the extent to which women are the same as, or different from, men, and about the political consequences of adopting these positions. Recent theoretical developments have led to some novel solutions to this dilemma. These include asserting claims to both ‘sameness’ and ‘difference’, the deconstruction of ‘difference’, and the reconstruction of ‘sameness’ on women's terms. This paper explores approaches to equal opportunities through both established and novel theoretical perspectives. It argues that existing practice cannot be fitted neatly into the conventional distinctions between ‘sameness’ and ‘difference’, and explores the potential characteristics and strengths and weaknesses of equality initiatives based on the new theoretical perspectives.     

Major league baseball division standings,sports journalists' predictions and player salaries

This paper analyzes the accuracy of predictions of division baseball winners and rankings for the 1982 to 1990 seasons. The forecasts in Sport, Sports Illustrated and the New York Times are more accurate than purely random forecasts except at predicting the National League winners. The journalists are better at predicting division winners, but not division rankings, than a naive model that assumes this season's rankings, will be the same as last seasons's. Combining the forecasts in the three publications does not result in greater forecasting accuracy. A model that uses the relative average salaries of teams significantly outperforms the journalists at predicting division rankings and, when allowance is made for ‘George Steinbrenner effect’, also at predicting division winners.     

Working for the family

Recent writing about the ‘service encounter’ suggests that high-quality service requires employee commitment and this will involve a more developed and sophisticated approach to HRM than has traditionally characterised the sector. Through an in-depth study of a sample of high service level hotels in the US and UK this paper argues, in contrast, that commitment can be created through a workplace culture that draws on family discourses and practices. It explores the ways in which this culture is developed and endorsed by both management and employees. This approach to generating commitment has costs in terms of the time and priority employees can give to their ‘real’ friends and family. By drawing on the highly gendered and hierarchical organisation of the family, it is argued that culture also contributes to gender stereotyping and hierarchies within and outside the workplace in ways that limit women's career opportunities.     

ON COMPARING MACROECONOMIC MODELS USING FORECAST ENCOMPASSING TESTS

ABSTRACT It is clearly of interest to macroeconomists to be able to evaluate whether one large-scale macroeconometric model ‘is better’ than another. Although comparisons between models are sometimes invidious, because the purposes for which the models were built differ, it is the case that formal comparisons of two models' statistical properties are rare. This is in spite of considerable theoretical advances in the econometric methodology, namely the development and use of non-nested and encompassing tests. Chong and Hendry (1986) advocate the use of the forecast encompassing regressions, where the outturns are regressed on competing (one-step-ahead) forecasts. This paper reports the findings of applying this rather easy-to-use method of comparing large scale macroeconometric models. The forecast data we use are those published by three macroeconometric modelling groups, namely: Liverpool; the National Institute; and The London Business School. Forecasts for up to three years ahead are published for unemployment, growth, and inflation, throughout the 1980's. Forecast encompassing tests fail to separate one model from another, based on one-year-ahead forecasts. Each model ‘wins’ once. However, the conclusions are not the same as using root-mean-square-forecast-error criteria, illustrating Clements and Hendry's (1994) observation that minimum root-mean-square-forecast-error is neither necessary nor sufficient for a model to have constant parameters, to provide accurate forecasts, or to encompass its rivals.     

Interindustry Linkages: Virtuous and Vicious?

Although overall linkages are steadily increasing in growth processes, em-pirical data supply strong evidence of large intercountry and intertemporal fluctuations of the domestic-to-overall linkages ratio. This paper tries to explain this phenomenon by modelling a producers' behaviour which appears more realistic than that usually assumed in interindustry or computable general equilibrium models. The main novelty of the results is that the same causes that generate interindustry multipliers can also ‘trap’ domestic linkages into reinforcing (‘virtuous’) or weakening (‘vicious’) circles, depending on whether the price competitiveness of domestic activities is above or below a threshold related to the non-price competitiveness of those activities. These results can help to explain the fluctuations of domestic linkages with respect to overall linkages by spatial and temporal shifts of the threshold between the vicious and the virtuous ‘areas’. Moreover, they emphasize the importance of supply policies-mainly R&D policies—because of their ‘pushing down’ effect on this threshold.     

Arrow's theorem with restricted coalition algebras

Arrow's Theorem is shown to be valid for measurable spaces of economic agents even with only a Boolean algebra of measurable coalitions. Purely competitive social welfare functions which ignore negligible coalitions may be handled by passing to a Boolean quotient algebra with the ideal of negligible coalitions. Invisible dictators are ‘agents’ in the Stone space of the quotient algebra, in which context social welfare functions induce continuous preference profiles.     

Technological and organizational changes as determinants of the skill bias: evidence from the Italian machinery industry

Recent empirical literature has introduced the ‘Skill Biased Organizational Change’ (SBOC) hypothesis, according to which organizational change can be considered as one of the main causes of the skill bias (increase in the number of highly skilled workers) exhibited by manufacturing employment in developed countries. This paper focuses on the importance of the SBOC with respect to the more traditional ‘Skill Biased Technological Change’ in driving the skill composition of workers in the Italian machinery sector. A dynamic panel data analysis is proposed which uses a unique firm‐level dataset. The results show that both skilled and unskilled workers are negatively affected by technological change, while organizational change—which in turn may be linked to new technologies—is positively linked to skilled workers. Copyright © 2005 John Wiley & Sons, Ltd.     

Does the Henry George Theorem Provide a Practical Guide to Optimal City Size?

A bstract .   The spatial distribution of economic activity is determined by a balancing of increasing and decreasing returns to scale activities. The Henry George Theorem states roughly that, if economic activity is efficiently organized over a "large" space, aggregate land rents equal the aggregate losses from the decreasing returns to scale activities. Kanemoto, Ohkawara, and Suzuki have tentatively applied the Henry George Theorem to investigate whether Tokyo has too large a population. This paper has two aims. The first is to explore the Theorem and its generality; the second is to examine whether it provides a promising conceptual foundation for estimating whether particular cities are over- or underpopulated.     

Urban security from warfare to welfare

Recent mobilization efforts to provide urban security in the American ‘War on Terrorism’ recall the expanding military–industrial complex during the nation’s preparations for the Cold War. This article suggests the current generation of American city leaders can learn much from history. Juxtaposing recent mobilization efforts alongside analogous episodes from the nation’s past reminds us that many powerful economic and political interests are well–served by the unbridled expansion of urban fear. This comparison raises important questions to be asked of current and future domestic urban security measures in the ‘War on Terrorism’. Les récents efforts de mobilisation visant à assurer une sécurité urbaine dans le cadre de la ‘guerre’ américaine contre le terrorisme évoquent le complexe militaro–industriel qui s’était développé pendant les préparatifs nationaux à la Guerre froide. La génération actuelle des dirigeants de villes américaines peut apprendre beaucoup de l’histoire. Juxtaposer ces récentes tentatives de mobilisation aux épisodes analogues du passé national rappelle que, pour beaucoup, les puissants intérêts économiques et politiques se nourrissent de l’essor incontrôlé des ‘peurs urbaines’. Cette comparaison suscite d’importantes interrogations quant aux mesures actuelles et futures en matière de sécurité intérieure urbaine dans le contexte de la ‘guerre contre le terrorisme’.