The intensity of incentives in firms and markets: Moral hazard with envious agents

While most market transactions are subject to strong incentives, transactions within firms are often not explicitly incentivized. This paper offers an explanation for this observation based on the assumption that agents are envious and suffer utility losses if others receive higher wages. We analyze the impact of envy on optimal incentive contracts in a general moral hazard model and isolate the countervailing effects of envy on the costs of providing incentives. We show that envy creates a tendency towards flat-wage contracts if agents are risk-averse and there is no limited liability. Empirical evidence suggests that social comparisons are more pronounced among employees within firms than among individuals that interact in markets. Flat-wage contracts are then more likely to be optimal in firms.     

Empirical evidence on the sign of the slope of the hazard rate from unemployment from a fixed effects model

Empirical evidence on the sign of the slope of the hazard rate from unemployment is obtained from a fixed effects model based on the gamma distribution for unemployment duration. The data used are pairs of unemployment spells for adult males in the control and experimental groups of the Denver Income Maintenance Experiment. The sample selection issue involved in selecting the pair of spells used in the empirical work is discussed. The empirical results suggest that for these samples the hazard function is monotone decreasing and support the assumptions that the first two spells of unemployment are identically distributed and can be modelled using the gamma distribution.     

Trade unions and productivity: theory and evidence

Recent work by economists has generated new theories of the impact of trade unions on productivity. This article gives an exposition of these theories and assesses the extent to which they are supported by empirical evidence.     

Direct transfers between the former Soviet Union central budget and the republics: Past evidence and current implications

This paper examines the magnitude of direct transfers between the former Soviet Union central buget and individual republics. It shows that Kazakhstan and Central Asian republics were primary recipients of large net transfers of funds from the Soviet central budget amounting in some cases to about ten percent of their GNP. On the contrary, Russia was the single largest net donor of funds to the Soviet central budget through more transfers paid to the union budget than received from it, both in rouble terms and as a share of the GNP.With the dissolution of the central budget in November 1991, these transfers were discontinued. This has caused a dent in fiscal budgets and a large negative income shock in recipient republics. To some extent, external saving is suggested as the way to ease up the burden of the loss of income induced by the collapse of the fiscal system and the system of direct transfers within the former Soviet Union.     

Rent control with reputation: theory and evidence

Rent-control policy is modeled as an implicit contract between voters of a community and suppliers of rental housing. It is shown that if residents can make an ex ante commitment to never adopt rent controls they will do so. When precommitment is not possible there are conditions under which a policy of never adopting rent controls is not self-enforcing. Under such circumstances a state-invariant ceiling price is shown to be a subgame-perfect equilibrium rent-control policy. The model is tested using data for New Jersey where local option regarding the choice of rent control policy was declared constitutional in the early 1970s. Probit analysis is used to determine whether predictions of the model are supported by an investigation of factors leading to imposition of rent controls by 64 of the 245 communities in the sample.     

注册会计师如何出具非标准审计报告

本文从带强调事项段的无保留意见的审计报告和非无保留意见的审计报告两个方面来论述应如何出具非标．准审计报告。     

Equity block transfers in transition economies: Evidence from Poland

This paper investigates valuation effects of share block transfers and employs agency theory to explain the determinants of equity block premia. A sample of transactions from Poland is used to measure benefits and costs of ownership concentration. Block premia are found to be remarkably low and comparable with those for the most developed economies. Shareholders expect to benefit from intensified monitoring and from corporate restructuring resulting from block acquisitions. Still, shareholders are wary of expropriation stemming from the extraction of private benefits of control by block holders. The opportunities to extract such benefits depend on relative power of investors.     

Action embedded in social structure: A systematic theory Part I,theory and evidence

This research develops a systematic theory, which premises a responsible and reasonable actor, of how social structure can affect rational social action, applies this general theory to explain 29 specific empirical findings about voting, and illustrates how deductive theories can synthesize prior empirical findings and provide a focus for subsequent empirical research. Part II, Explanations applies the systematic theory to account for specific empirical propositions that relate social statuses to the decisions voters make. Voters are classified by such graduated social statuses as socioeconomic class, age, and education; and by such nominal social statuses as religion, urban or rural residence, region, gender, race, and ethnicity. Positions on two key issues affect voting choice, the desire for economic equity and the desire for social equality. The members of the various social groups interpret these issues as they affect their own self-interest, and align with the party they perceive as furthering their interests. To corroborate aspects of the theory and to quantify the effects of the variables, survey data are analyzed.     

对促进我国企业跨地区收购的思考--欧盟内跨国兼并的启示

文章讨论了跨地区兼并对打破我国行政区经济的垄断和建设具有国际化大企业的作用,通过分析欧盟在上个世纪90年代出现跨国兼并浪潮的原因、障碍和措施,尝试提出了促进我国跨地区收购的措施与建议.     

Cross function transfers: Rates and patterns

This nationwide survey of managerial transfer practices in 250 large manufacturing firms studies the patterns of transfer, the departments most commonly providing personnel for subsequent assignment to other functional areas, various organizational variables which affect the frequency and pattern of managerial transfers, and the implications for career planning.     

Ownership structure and board composition: A multi-country test of agency theory predictions

Patterns of corporate governance and control differ significantly across countries because of national differences in structures of ownership and composition of boards of directors. Based on agency theory, we examine the relationship between ownership structure and the composition of the board of directors of 390 large manufacturing firms based in Japan, Western Europe and the United States. In particular, we examine how ownership concentration, bank control and state ownership affect the percentage of outside directors on the corporate boards. The results show that, consistent with predictions of agency theory, ownership structure has significant effects on board composition.     

Corruption: Theory and evidence from the Russian Federation

In this paper, we provide theory and evidence on the problem of corruption in the Russian Federation. Our theoretical model indicates that in the presence of official corruption, the numbers of tax inspection (collection) employees could be inversely related to per capita tax collection. Our empirical analysis supports our theoretical model, shedding light on one of the most intractable problems in the Russian Federation.     

Determinants of moral hazard in research and development supply relations: Empirical results beyond the agency‐theory explanation

Moral hazard can hinder both the realization and the effectiveness of research and development (R&D) supply relations. However, to the best of our knowledge, there have been no empirical studies investigating the determinants of moral hazard under the specific circumstances of R&D supply relations. Based on a study on 104 cases, this article will help to fill that gap. The results not only confirm information asymmetries as determinants, as predicted by principal‐agent theory, but also reveal surprising effects of additional factors. Thus, we show that the general explanation of moral hazard needs to be adapted to the specifics of a concrete exchange situation.     

Toward a theory of entrepreneurial behaviour; empirical evidence from Israel,Italy and Sweden

Translated versions of the Miner Sentence Completion Scale-Form T and of the Differential Attribution Questionnaire were administered to entrepreneurs and to managers, in Israel, Northern and Southern Italy and Sweden. The results of this research yield strong support for a framework that integrates affective and cognitive motivational factors. In particular, it found: (1) that the way entrepreneurs deal with negative outcomes explains their perseverance and affects their self-achievement; (2) a risk-avoidance rather than a risk-taking preference distinguishes them; (3) Self-Achievement; Risk-Avoidance and Personal Innovation appear to be major components of Task Motivation. This research appears to move closer toward a more parsimonious and clearer understanding of the behaviour of the central figure in wealth formation, thus providing a framework for the designing of entrepreneurial development programmes.     

Science,technology, innovation,theory and evidence: the new institutionality in Colombia

Quality & Quantity - It is widely recognized that the design and application of suitable and robust science, technology and innovation (STI) policies and appropriate STI institutions promote...     

Agents interaction and price dynamics: evidence from the laboratory

Journal of Economic Interaction and Coordination - Using data collected from an experimental double auction market, we study the dynamics of interaction among traders. Our focus is on the effect...     

Efficiency and stock returns: evidence from the insurance industry

This study investigates whether the capital market values the efficiency of firms. After tracing stock returns and efficiency changes of 399 listed insurance firms in 52 countries during the 2002–2008 period, the paper reports a positive and statistically significant relationship between profit efficiency change and market adjusted stock returns. However, there is no robust evidence that cost efficiency change is associated with stock returns.