Of Course We Can Bootstrap DEA Scores! But Does It Mean Anything? Logic Trumps Wishful Thinking

Journal of Productivity Analysis -     

Can We Develop Measures of Hypothetical Constructs?

A rational approach to item development and scoring was used to assess six dimensions considered relevant to a law enforcement position. Factor analysis, reliability analysis, and correlations with various other measures indicated reasonable “construct validity” for three of the six original measures. All six final measures were easily interpretable, but three were inconsistent with our original concepts or were much more narrow representations of the intended construct. All measures displayed low correlations with job performance measures.     

Women Entrepreneurs: Can We Remove the Barriers?

Entrepreneurial activity among women continues to attract attention world wide. However, despite obvious gains, women lag behind men in business ownership and economic independence on every continent. This paper will review the research on entrepreneurship as a career choice for women, the motivations and career paths followed by women entrepreneurs, the attitudes and behaviors associated with successful ventures, the problems that persist and policies that conspire to keep women’s businesses few and small. A discussion of legislation and practices that have helped and hindered women’s entrepreneurship will follow, with suggestions for reframing the issues and reforming policies.     

What Can We Learn From Great Business Leaders?

There are many leadership lessons that can be extracted from the lives of great business leaders like John D. Rockefeller, Henry Ford, Alfred Sloan, Sam Walton, Jack Welch, A. G. Lafley, Steve Jobs, and Bill Gates. Although different in personality and style, these leaders showed talent at a very young age, persevered in achieving their goals, surrounded themselves with the best people they could, worked hard and with great discipline, had great confidence in themselves, and were creative and innovative in managing their businesses.     

Real Asset Valuation under Imperfect Competition: Can We Forget About Market Fundamentals?

Real assets are usually valued by computing the stream of profits they can bring to a price‐taking firm in a liquid market. This method ignores market fundamentals by assuming that all the relevant information is included in the spot price. Our article analyses the bias resulting from such an approach when the market is imperfectly competitive. We propose a stylised two‐period model of the natural gas market with no uncertainty, focusing on strategic interactions between two types of oligopolistic players—pure traders and suppliers with downstream customers—who have access to storage. We show that the true value of storage capacity is not the same for traders and for suppliers. Comparing the latter value with the traditional price‐taking valuation reveals a systematic bias that tends to induce underinvestment.     

Accounting for Employee Stock Options: What Can We Learn from the Market's Perceptions?

The scope of this is paper is to provide new empirical evidence on the value relevance of employee stock options (ESOs) in Europe. We show, empirically, that the market participants when pricing a firm's equity place approximately the same valuation weights on the ESO‐deferred compensation expense (the so called “ESO asset”) and the compensation option liability (the so called “ESO liability”). Our empirical findings support the theoretical work of Ohlson and Penman who suggest that the deferred compensation expense be treated as a contra‐liability. The second contribution of our work rests on the nature of the ESO expense. We show that the distinction between persistent and non‐persistent ESO expenses is of critical importance for the market participants. Accordingly, an improved accounting disclosure should assist the investors in assessing the long‐term goals of the ESO plans at the firm level.     

Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?

Why are some places more entrepreneurial than others? We use Census Bureau data to study local determinants of manufacturing startups across cities and industries. Demographics have limited explanatory power. Overall levels of local customers and suppliers are only modestly important, but new entrants seem particularly drawn to areas with many smaller suppliers, as suggested by Chinitz (1961) . Abundant workers in relevant occupations also strongly predict entry. These forces plus city and industry fixed effects explain between 60% and 80% of manufacturing entry. We use spatial distributions of natural cost advantages to address partially endogeneity concerns.     

Forecasting Macroeconomic Labour Market Flows: What Can We Learn from Micro‐level Analysis?

Forecasting labour market flows is important for budgeting and decision‐making in government departments and public administration. Macroeconomic forecasts are normally obtained from time series data. In this article, we follow another approach that uses individual‐level statistical analysis to predict the number of exits out of unemployment insurance claims. We present a comparative study of econometric, actuarial and statistical methodologies that base on different data structures. The results with records of the German unemployment insurance suggest that prediction based on individual‐level statistical duration analysis constitutes an interesting alternative to aggregate data‐based forecasting. In particular, forecasts of up to six months ahead are surprisingly precise and are found to be more precise than considered time series forecasts.     

Can We Still be Friends? The Role of Exit Conversations in Facilitating Post‐Exit Relationships

Organizations might benefit from maintaining relationships with former employees, who could be rehired later or encouraged to refer job applicants and customers. We integrate the management literature on voluntary resignations and the communication literature on relationship dissolution to explore how conversations between an exiting employee and his or her manager facilitate (or constrain) post‐exit relationships. Employees who had recently resigned from full‐time jobs described their exit experiences in semistructured interviews with the research team. The results suggest two dominant patterns. When employees exited for external reasons (e.g., to pursue a program of study), they engaged in very direct communication strategies, elicited positive responses from their managers, and left with high interest in a post‐exit relationship. But when employees exited for internal reasons (problems within the employment relationship), they engaged in multiple exit cycles and moved from indirect communication strategies toward increasingly direct ones. Managerial responses to these strategies failed to capitalize on opportunities to nurture post‐exit relationships and sometimes generated a “vendetta effect” among exiting employees. The results suggest that managers might benefit from training in how to conduct effective exit conversations, particularly with employees who are leaving for internal reasons. © 2014 Wiley Periodicals, Inc.     

Can European Union survive?

The Treaty of Rome promised European economic integration through free trade in goods, services and capital. Instead, Brussels has imposed ever-increasing regulation, which must weaken adaptation to global competition.     

Can oil-rich countries encourage entrepreneurship?

This study provides the first empirical investigation to test one of transmission channels of resource curse, i.e. marginalized entrepreneurship activities. Our panel data analysis of 65 countries from 2004 to 2011 shows a negative and statistically significant association between oil rents dependency and entrepreneurship indicator. This finding is robust to control of other major drivers of entrepreneurship, unobservable country- and time-fixed effects and a different measurement of oil rents dependency. In addition, our main results show that government effectiveness among other dimensions of good governance has a statistically significant moderating effect in entrepreneurship–oil rents nexus.     

Can Emotional Intelligence be developed?

This paper explores approaches to the development of Emotional Intelligence (EI) and to the critical question ‘can EI be developed?’ Technical data on the instruments used to measure EI, the Emotional Intelligence Questionnaire (EIQ) devised by Dulewicz and Higgs (2000c) and the EQ-i designed by Bar-On (1997), are reported. Findings from three studies involving managers, team leaders and the skippers and crews from a round-the-world yacht race are presented to explore whether Emotional Intelligence scores change after training and other experiences. A revised model to explain how the elements of Emotional Intelligence are related to each other is presented and tested, and possible explanations of why some elements are more amenable to development actions are proposed.     

Can not-for-profits learn from for-profits?

Marketing management will help you maintain service quality, keep donors satisfied and generate a dependable source of income. For-profits survive on these activities.     

Theory and Empirics of Democracy and Crime Revisited: How Much Further Can We Go with Existing Data and Methodologies?

The vast empirical work on the criminogenic nature of democracies has produced strong—albeit suspiciously wide‐ranging—claims. This article reviews existing evidence and methodologies that link crime and democracies. It asks three questions: Do theories generate separable and exclusionary predictions enabling their identification and testing? Could results be more conclusive given existing data limitations and the current methodological state of the art? How far are we from obtaining such results? We conclude that there are far too many arguments with blurry lines predicting just about any result. Data are more likely to constitute the binding constraint rather than methodology issues, despite the fact that the estimation of causality between democracy and crime can still be improved. Finally, the priority should be the harmonization of existing information sources, which will require overcoming externalities associated with the public good nature of global information generation.     

The World Technology Frontier: What Can We Learn from the US States?*

We re‐estimate the world technology frontier non‐parametrically using a dataset covering OECD country‐level data and US state‐level data on GDP per worker and the stocks of physical capital, unskilled labour and skilled labour. The auxiliary use of US state‐level data significantly reduces the upward bias in cross‐country estimates of technical efficiency, and so does allowing for imperfect substitutability between skilled and unskilled labour. We then use our adjusted estimate of the world technology frontier in a series of decompositions of productivity differences and sources of economic growth in the OECD in 1970–2000, including also ‘appropriate technology vs. efficiency’ decompositions.     

What do We Know About Investment Under Uncertainty?

Recent theoretical developments relating to investment under uncertainty have highlighted the importance of irreversibility for the timing of investment expenditures and their expected returns. This has subsequently stimulated a growing empirical literature which examines uncertainty and threshold effects on investment behaviour. This paper presents a review of this literature. A variety of methods have been used to investigate the empirical implication of irreversibility in investment, the majority focusing on the relationship between investment flows and proxy measures of uncertainty. A general conclusion is that increased uncertainty, at both aggregate and disaggregate levels, leads to lower investment rates. This suggests that there is an irreversibility effect, under which greater uncertainty raises the value of the 'call option' to delay a commitment to investment. This effect appears to dominate any positive impact on investment arising from the fact that greater uncertainty, under certain circumstances, increases the marginal profitability of capital. The methods used raise a number of issues which call into question the reliability of the findings, and these are addressed in the paper. However, if such irreversibility effects are present, then their omission from traditional investment models casts doubt on the efficacy of such specifications. JEL Classification: D81, D92, E22