The Amsterdam rent index: The housing market and the economy, 1550–1850

The paper investigates the long run historic development of the Amsterdam rental housing market (1550–1850). Using rent data on a large cross section of residential properties in Amsterdam we are able to develop an annual constant-quality rent index for the entire time period. Whereas nominal rents nearly tripled over the considered sample period, average Amsterdam house rents, in real terms, had approximately the same level in 1850 as they exhibited in 1550. Otherwise stated, nominal rents and goods prices rose at the same pace. Over these 301 years, the real index moves between a minimum level of 45.6 and a maximum of 162.4. As concerns the relation between the housing market and the real economy, we find empirical evidence that fluctuations in rents and fluctuations in proxies of business cycle activity comove, both in nominal and in real terms.     

Regulating Audit in Europe: The Case of the Implementation of the EU Eighth Directive in Denmark 1984–2006

This paper examines the extent of financial information disclosure on the Internet by the largest companies in the UK in 1998. Companies were surveyed to establish whether they had a website and if so whether financial information was available. We also investigated whether that information was in summary form or whether the full annual report was available. This study finds a statistically significant positive relationship between the size of a company and the use and extent of disclosure on the Internet. There was no significant association between industry type and disclosure.     

The evolution of the US family income–schooling relationship and educational selectivity

We estimate a dynamic model of schooling on two cohorts of the National Longitudinal Survey of Youth and find that, contrary to conventional wisdom, the effects of real (as opposed to relative) family income on education have practically vanished between the early 1980s and the early 2000s. After conditioning on a cognitive ability measure (AFQT), family background variables and unobserved heterogeneity (allowed to be correlated with observed characteristics), income effects vary substantially with age and have lost between 30% and 80% of their importance on age-specific grade progression probabilities. After conditioning on observed and unobserved characteristics, a $300,000 differential in family income generated more than 2 years of education in the early 1980s, but only 1 year in the early 2000s. Put differently, a $70,000 differential raised college participation by 10 percentage points in the early 1980s. In the early 2000s, a $330,000 income differential had the same impact. The effects of AFQT scores have lost about 50% of their magnitude but did not vanish. Over the same period, the relative importance of unobserved heterogeneity has expanded significantly, thereby pointing toward the emergence of a new form of educational selectivity reserving an increasing role to noncognitive abilities and/or preferences and a lesser role to cognitive ability and family income.     

Bridging the cultural divide: Trust formation in university–industry research collaborations in the US,Japan, and South Korea

Academia and industry increasingly work together, but this is not always an easy endeavor. In this article we investigate how relational mechanisms facilitate trust formation in university–industry research collaborations (UICs) in three countries and contribute to the understanding of international similarities and differences in UICs by considering institutional factors, specifically, the strength and maturity of UICs in each country. Analyzing survey data of 618 recent UICs in the US, Japan, and South Korea, we identify the activities of innovation champions as a critical trust building mechanism between firms and universities that complements initial trust formation through tie strength, partner reputation, and contractual safeguards. We find that partner reputation and champion behavior are more important for trust formation in South Korea than in the US and Japan, indicating that in ‘emerging UIC countries’ where most firms and universities have little collaboration experience, reputation and the leadership by innovation champions are more important for trust formation in UICs than in ‘advanced UIC countries’ with strong and mature UIC networks. From a public policy perspective, our findings suggest that networks between firms and universities should be generally strengthened and collaboration partners should be provided with effective contractual safeguards to enhance trust formation in UICs.     

The role of interpersonal affect in performance appraisal: evidence from two samples – the US and India

The interpersonal affect, a li ke–dislike relationship between a supervisor and his/her subordinate, has traditionally been conceptualized as a source of bias in performance appraisals. However, some researchers have argued that the interpersonal affect may not be a bias, especially where it develops as a result of past performance. In this field study, using data from 190 supervisors in the US, and 113 supervisors in India, we delineate the relationship between interpersonal affect and performance ratings. In both samples, interpersonal affect and performance level were found to have significant effects on performance ratings. Results from the US sample indicated that raters are able to separate their liking for a subordinate from actual performance when a ssigning performance ratings, suggesting that the interpersonal affect does not operate as a bias in the appraisal process. Results from the Indian sample, however, suggest that supervisors inflate ratings of low performers, suggesting that local cultural norms may be operating as a moderator.     

Blockholders’ Ownership and Audit Fees: The Impact of the Corporate Governance Model

This paper examines how two prominent corporate governance models, namely the shareholder and stakeholder models, have different effects on the relation between agency conflicts and the supply, and demand of audit services. Shareholder (stakeholder) countries rely heavily on public (private) information to reduce information asymmetry for outside investors in the context of high (low) litigation risk. We expect audit fees to reflect the level of agency conflicts in shareholder countries as well as the needs for information of the major blockholders in stakeholder countries. Using a sample of 7982 firm-year observations from 19 countries, we find a U-shaped relation between controlling shareholding and audit fees for shareholder countries and an inverted U-shaped relation between controlling shareholding and audit fees for stakeholder countries. These results are consistent across different firm-level governance arrangements.     

Non-structural and structural models in productivity analysis: study of the British Isles during the 2007–2009 financial crisis

Journal of Productivity Analysis - The paper compares unrestricted and restricted reduced-form estimates of productivity and efficiency performance constructed from non-structural stochastic...     

The role of the public sector in the provision of housing supply in Turkey, 1950–2009

This study examines the changing role of the public sector in Turkey with regard to housing provision since 1950, and particularly since 2000, and seeks to clarify how public intervention has affected housing provision and urban development dynamics in major cities. Three periods may be identified, with central government acting as a regulator in a first period characterized by a ‘housing boom’. During the second period, from 1980 to 2000, a new mass housing law spurred construction activity, although the main beneficiaries of the housing fund tended to be the middle classes. After 2000, contrary to emerging trends in both Northern and Southern European countries, the public sector in Turkey became actively involved in housing provision. During this process, new housing estates were created on greenfield sites on the outskirts of cities, instead of efforts being made to rehabilitate, restore or renew existing housing stock in the cities. Meanwhile, the concept of ‘urban regeneration’ has been opportunistically incorporated into the planning agenda of the public sector, and — under the pretext of regenerating squatter housing areas — existing residents have been moved out, while channels for community participation have been bypassed.     

Service Quality,Administrative Process,and Citizens’ Evaluation of Local Government in the US

Abstract

It is often assumed that citizens evaluate government based on service quality or outcomes (such as safe neighbourhoods or good schools), but aspects of administrative process (such as fairness and respect) are also important. Using data from two US surveys, this study examines how service quality and administrative process influence citizens’ evaluations of government. Results indicate that service quality matters most to ratings of the community; in contrast, administrative process is the dominant driver of trust; and both quality and process have large effects on judgements about government’s overall job performance. Implications for public management research and practice are discussed.     

Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input–Output Tables

Estimating intermediate trade using conventional non-survey methods produces biased results. This problem has led to a methodological recommendation that emphasizes the accurate estimation of intermediate trade flows. This paper argues for a qualification of the consensus view: when simulating input–output (IO) tables, analysts need also to consider spillover effects driven by wage and consumption flows. In particular, for metropolitan economies, capturing wage and consumption flows is essential to obtain accurate Type II multipliers. This is demonstrated by constructing an interregional IO table that captures the interdependence between a city and its commuter belt, nested within the wider regional economy.     

Cultural boundaries of self-justification and prospect theories in escalation of commitment: a US–Mexico comparison

The interplay among managers' cultural origin (i.e. Mexican vs. the USA), decision context and framing was investigated to test the cultural boundaries of self-justification and prospect theories in escalation of commitment. An experimental design indicated that, although a negative decision frame had a greater impact on escalation of commitment among Mexican managers, a positive frame had a greater impact on escalation of commitment among American managers. Moreover, a pattern indicating that framing had an opposite effect in each country emerged when the decision context was negative. Specifically, when the incoming information is positive, US decision-makers escalate their commitment to a failing course of action, whereas it is negative incoming information that leads to escalation for Mexican decision-makers.     

The roles of implementation and organizational culture in the HR–performance link

This article attempts to (1) explore the process by which a high-performance work system (HPWS) affects firm performance and (2) demonstrate the mediating role of implementation and organizational culture in the HPWS-performance link. The proposed model was tested using a sample of 243 Hong Kong and Taiwanese firms operating in Guangdong, China. The results from the present study supported the hypothesized mediation of implementation and organizational culture on the HR–performance relationship. This study offers important insights into the mediating mechanism of the HPWS-performance research. Implications for research and managerial practices are provided.     

Transmission of US financial and trade shocks to Asian economies: Implications for spillover of the 2007–2009 US financial crisis

This paper describes an investigation of the transmission of US shocks to Asian economies with consideration of financial linkages and trade linkages. Using the sign restriction vector autoregression (VAR) approach during 2000–2012, our empirical results can be summarized as follows. First, both US financial and trade linkages exert a significant impact on production in Asian economies. Second, through both financial and trade linkages, US spillover shocks account for around 50% of the production fluctuation in Asian economies. Third, during the episodes of 2007–2009 US financial crisis, the impact of financial shocks is greater than that of trade shocks. Results suggest that (i) Asian economies are not decoupled with US; and (ii) different from conventional findings, financial linkages between US and Asian economies are strong, especially for highly developed Asian economies. Therefore, investors and policymakers of Asian economies should take account of US financial conditions.     

A Strategic Choice–resource Dependence Analysis of Union Mergers in the British and Australian Broadcasting and Film Industries

Since the late 1980s there has been a marked increase in the rate of union restructuring and merger in both Britain and Australia. This has been particularly prevalent in the film and broadcasting industries in both countries. This organizational change has largely been triggered by environmental turbulence which has altered the availability and control of resources required for organizational survival. Accepting the concept from strategic choice theory that trade unions are able to exercise a degree of choice over the way in which they manage and adapt to changes in their external and internal environments, the paper demonstrates how an integration of strategic choice and resource dependence perspectives can explain why organizations behave in different ways and, in particular, why trade union mergers in the film and broadcasting industries have occurred. Further, the perspective also explains why some trade unions chose not to merge. An integration of resource dependence theory with strategic choice theory explains why trade unions make particular strategic decisions. Conversely, strategic choice explains how organizations acquire resources and manage dependencies. The paper concludes by making the case for an integration of the two perspectives for future studies of organizational behaviour and change.     

The measurement of the economic performance of the US Nonfinancial Corporate Business Sector 1946–1990: an application of the shareholder value creation concept

This paper is based upon a juxtaposition of the cash flow-market value performance (alias SVC performance) and historic cost accounting (HC) performance of the US Nonfinancial Corporate Business sector 1946–90. It has two principal objectives: 1. To determine whether, judged on return and variability dimensions, the HC accounting model is an operationally acceptable surrogate for a multiperiod market-based accounting model. 2. To analyse the consequences of HC income-based distributions, i.e., corporate tax, interest and dividend payments based on conventionally-measured corporate income. Three principal conclusions are drawn: i. Notwithstanding their common cash flow component, HC performance indices are not reliable surrogates for SVC performance criteria. The former apparently do not accurately capture changes in corporate valuation and generally understate the variability of market-based returns. ii. The multiperiod HC income of a going concern characteristically overstates its coterminous multiperiod cash flows to a considerable degree. Contrary to common supposition, the former does not therefore constitute a ‘normalized’ or ‘smoothed’ version of a firm's ‘primitive’ cash flows in the sense that the cumulative (multiperiod) values of the two measures tend to converge. iii. As a consequence of ii, HC income and its near relation, taxable earnings, are dubious bases for measuring interest-paying, tax-paying and dividend-paying capacities. Corporate income-distribution decisions based on HC accruals-based profit measures frequently trigger external financing which may cause shareholder wealth losses and wealth transfers from shareholders to lenders. However, ‘fiscal drag’ appears to be the most serious consequence of HC accruals-based income distribution decisions.     

Capital flows and the boom–bust cycle: The case of Estonia

During 2000–2007, Estonia was among the fastest growing emerging market economies, but in late-2008 entered a deep recession. This paper examines shocks, institutions, and policies that have made Estonia's boom–bust cycle so severe. It finds that an open capital account, the prospect for EU entry, and the currency board facilitated massive capital inflows, which led to credit and real estate booms. In late-2008 a domestic slowdown was greatly amplified by the global financial and economic crisis. To resume sustainable growth, the country will need to regain competitiveness and rebalance resources to exports. Estonia's experience underscores the importance for other emerging market economies to retain some flexibility in their macroeconomic frameworks and approach capital account liberalization cautiously.     

The use–make framework and the derivation of functional forms in production theory

The use–make framework is employed to explain functional forms in production theory, including Cobb–Douglas and Leontief. Productivity and efficiency are interrelated by augmenting the framework with a linear program that determines the frontier output.