Is skill more important than luck in explaining fish catches?

The study of productive efficiency has not been a traditional field of research in fisheries economics. However, recent papers have dealt with testing what it is known as “the good captain hypothesis”, according to which differences in catches among vessels can be explained in terms of skipper skill (efficiency). These papers introduce an interesting research issue: the distinction between luck and efficiency. In this paper, we try to shed more light on this topic using a panel data set on the hake fishery in Northern Spain. In particular, we are interested in separating efficiency not only from luck but also from other time invariant variables, such as vessel characteristics, which sometimes are confounded with efficiency. In contrast to the other papers that deal with this topic, we find that luck is more important than technical efficiency in explaining catches. We argue this can be explained by the fact that other papers use data at a higher level of temporal aggregation. Over longer periods of time, skill persists while luck averages away.

Are venture capitalist-backed IPOs more innovative? Evidence from an emerging market

This study examines whether venture capital (VC)-backed IPOs are more innovative than otherwise equivalent non-VC-backed IPOs. Using manually collected R&D records from annual reports and patent data from the Chinese State Intellectual Property Office (CSIPO) from 2007 to 2012, we find that VC-backed IPOs have higher R&D expenditures and more patents granted in the three years after IPOs. More specifically, they have more invention, application, and design patents in post-IPO. We use a two-stage instrumental variable, propensity score matching, difference-in-differences approach to mitigate selection biases and find our results to be consistent with our hypothesis. We conclude that VCs can positively influence IPO firms to increase R&D expenditures and innovative output levels in China. In addition, we document that the government ownership adversely affects innovation of VC-backed firms. Policy implications are discussed.     

Are exchange rates less important for trade in a more globalized world? Evidence for the new EU members

We evaluate the effect of exchange rate misalignments on the balance of trade and the role that global value chain participation plays in this effect for 11 new European Union member states. Using heterogeneous panel cointegration methods, we first estimate the real equilibrium exchange rate and detect episodes of currency misalignment. We find asymmetric effects of real currency misalignments: overvaluation has a negative effect, but undervaluation has no effect on the trade balance. Additionally, we find that global value chain participation weakens the effect of currency misalignments on the balance of trade. Therefore, our results suggest that globalization reduces the role of exchange rates in stimulating the domestic economy.     

Are athletes more cooperative than nonathletes? A laboratory experiment

Former athletic employees receive a better wage when hired than other employees because recruiters associate positive values to athletic participation. Whereas athletes are considered as more cooperative than others, this assumption lacks empirical support. We implement a laboratory experiment in order to examine whether athletes (i.e., individuals engaged in intense athletic participation) exhibit more cooperative behaviours than nonathletes. We compare the cooperative behaviours of athletes and nonathletes in a single‐shot public good game using a variant of the strategy method. We find that athletes exhibit significantly more conditional cooperative behaviours than nonathletes but no significant differences in unconditional behaviours.     

Systematic literature review on entrepreneurial orientation in nonprofit organizations – Far more than business-like behavior

While entrepreneurial orientation (EO) in nonprofit organizations (NPOs) is often considered as another business-like behavior, the present systematic literature review changes this perspective by revealing that the construct refers to several specific third sector organizations' qualities and leverages financial and mission goals simultaneously. EO as a strategic posture of organizations is already well established in management and strategy literature whereas corresponding insights in NPOs are indeed expanded, but fragmented. To develop this research stream, a systematic literature review was conducted, that analyses the results of 76 studies about EO in NPOs. Besides describing current findings, this paper generates a comprehensive overview of applied constructs, drivers influencing EO, and goals promoted by this strategic posture. The context-specific modification of the construct leads to the presumption that EO does not predominantly target business-like initiatives, but holds a lot of potential meeting NPO's core challenges, such as the fulfillment of various stakeholders' expectations or diverse resources acquisition. The discussion elaborates to what extent EO serves as a viable alternative to highly discussed third sector developments of business approximation.     

Are Catholic primary schools more effective than public primary schools?

This paper assesses the causal effects of Catholic primary schooling on student outcomes such as test scores, grade retention, and behavior. Catholic school students have substantially better average outcomes than do public school students throughout the primary years, but we present evidence that selection bias is entirely responsible for these advantages. Estimates based on several empirical strategies, including an approach developed by Altonji et al. (2005a) to use selection on observables to assess the bias arising from selection on unobservables, imply that Catholic schools do not appreciably boost test scores. All of the empirical strategies point to sizeable negative effects of Catholic schooling on mathematics achievement. Similarly, we find very little evidence that Catholic schooling improves behavioral and other non-cognitive outcomes once we account for selection on unobservables.     

Why are some graduate entrepreneurs more innovative than others? The effect of human capital,psychological factor and entrepreneurial rewards on entrepreneurial innovativeness

This study investigates the innovation behaviour of graduate start-ups at the individual level. It bridges the graduate enterprise literature and innovative entrepreneurship literature to put forward three arguments that ascertain why highly educated graduate entrepreneurs are not always innovative in starting new businesses. First, anchoring on the individual opportunity costs–entrepreneurial rewards nexus, it argues that graduate entrepreneurs will exploit opportunities innovatively if they expect the levels of entrepreneurial rewards that match their high human capital and high opportunity costs. Second, it is argued that entrepreneurial innovativeness is conditional on psychological factors such as students’ managerial self-efficacy and overconfidence. Third, it is also argued that the nonlinear relationship between entrepreneurial innovativeness and entrepreneurial rewards will drive graduate entrepreneurs to exploit even riskier opportunities in search for high rewards. This study operationalizes the theoretical framework with an empirical model and estimates it using a graduate entrepreneur sample from a questionnaire survey in China. Our results suggest that innovation behaviour of graduate start-ups is influenced by the quantity of human capital, psychological make-up and expectations of entrepreneurial rewards.     

How important is family background for labor-economic outcomes?

This paper uses Swedish register data to examine four classical outcomes in empirical labor economics: IQ, noncognitive skills, years of schooling and long-run earnings. We estimate sibling correlations – and the variance components that define the sibling correlation – in these outcomes. We also estimate correlations for MZ-twins, who share all genes. We also extend the variance-component decomposition by accounting for birth order. We find that conventional intergenerational approaches severely underestimate the role of family background, and that future research should follow a more multidimensional approach to the study of family background.     

Are migrants in/from emerging economies more entrepreneurial than natives?

International Entrepreneurship and Management Journal - The academic debate in migrant entrepreneurship has mainly focused on movements from emerging economies into developed economies. Anecdotal...     

Listen to the market: Do its complexity and signals make companies more innovative?

This paper analyzes four modes of innovation that differ in their scope of newness (innovation generation and adoption) and in their degree of change (radical and incremental). Building a theoretical model based on the market orientation (MO) and contingency theory literature and using a sample of innovative firms, we find that MO positively influences the numbers of incremental generation and adoption of innovations. We also find that environmental complexity moderates the relationship between MO and radical and incremental innovation generation and the number of incremental innovation adoption. That is, we have found that highly complex environments enhance the introduction of radical and incremental internally generated innovations and harm the adoption of incremental innovation for market-oriented firms. These findings add to the innovation and MO literatures. Our results also have important implications for both the commercial activities and R&D policies of firms.     

Is energy security really too important to leave to markets?

Involvement by government in the energy sector has historically been extensive. Generally, however, regulation and direct ownership have involved secondary sectors such as electricity generation and transport on the grounds that these are natural monopolies exhibiting increasing returns to scale. With some exceptions, primary energy production has been left in private hands. But security of energy supply, particularly of petroleum, has been held to justify investment by governments in maintaining strategic reserves and other initiatives. This article argues, however, that petroleum markets are resilient and that the probability of disruptions is slight. Markets can be trusted to satisfy demand without shortages, at affordable prices. In light of structural changes and innovations in petroleum markets, unless the large strategic reserves held by almost all developed countries are actively used to reduce market volatility as a form of public good, maintaining them is difficult to justify.     

Is Hungary ready for inflation targeting?

This paper considers whether the adoption of inflation targets for Hungary, an emerging market economy, is a desirable option. We consider the qualitative and quantitative pre-conditions required for the successful adoption of inflation control objectives. Although it is found that the National Bank of Hungary appears to possess a reaction function with some of the main features found in those estimated for industrial economies, there remain certain aspects of the relationship between the government and the central bank that require clarification and further evolution.     

When is it efficient to treat juvenile offenders more leniently than adult offenders?

This paper provides a rationale for two characteristics of juvenile justice systems. First, juvenile justice systems tend to be more lenient in terms of both incarceration rates and time incarcerated. Second, higher expenditures are made to incarcerate a juvenile offender than an adult prisoner. It does this by examining the effect juvenile incarceration has on human capital acquisition and in turn, later incentives to commit crime as adults. In the process, it also offers an explanation of the empirical finding that individuals arrested as juveniles are more likely to be arrested as adults.     

How important can bank lending shocks be for economic fluctuations?

We analyze the quantitative importance of bank lending shocks on real activity fluctuations in Norway and the UK, using structural VARs estimated on quarterly data from 1988 to 2010. We find that an adverse bank lending shock causes output to contract, and that such shocks can account for a substantial share of output volatility. This suggests that financial intermediation is an important source of shocks. The empirical analysis comprises the Norwegian banking crisis (1988–1992) and the recent period of banking failures in the UK. However, the results are also non-trivial when omitting periods of systemic banking distress from the sample.     

In what ways do Chinese employees speak up? An exchange approach to supervisor–subordinate guanxi and voice behavior

Few studies have investigated the effect of supervisor–subordinate guanxi (s–s guanxi) on employee voice behavior. From a social exchange perspective, the current study sheds light on the effect of s–s guanxi on employee voice behavior through the mediating roles of psychological ownership and psychological empowerment. A theoretical model is developed and empirically tested with a sample of 299 supervisor–subordinate dyads. The results generally support our hypothesis that s–s guanxi can influence employee voice through the mediating roles of psychological ownership and psychological empowerment. However, counter to our hypothesis, we find no support for psychological ownership mediating between s–s guanxi and promotive voice. Implications and contributions are discussed.     

Who is more important,parents or children? Economic and environmental factors and health insurance purchase

The existing research indicates that insurance demand is affected by the policyholder’s occupation, family economy, urbanization level, and insurance coverage. Using micro data of insurance purchase at the individual level, this study investigates the influence of economic and environmental factors on the priorities of health insurance purchase decision. The results reveal that the more developed the economy and the more financial knowledge people possess, the more the latter tend to prioritize health insurance for their children. Furthermore, the study investigates the influence of air pollution on the decision to purchase health insurance. If the air pollution level is high, policyholders prioritize obtaining insurance for their children. Our research on the order of insurance purchase indicates that Chinese families have a lack of support from their children, and the function of family pension is gradually weakening. Our research also reveals that families are willing to spend money on the insurance of their children. Therefore, to solve the problem of health and old-age security for the elderly, it is more effective to promote health insurance by considering families as a unit     

Is There a Winning Formula for Union Organizing?

Between 1995 and 2004, Kate Bronfenbrenner wrote several studies arguing that union organizing would be more successful if certain tactics were used. Bronfenbrenner’s methodology seemed unassailable and her opinions were influential among union leaders, but organizing outcomes did not improve. To understand why, this study asked highly successful union organizers for their views. Their responses point to an entirely different conceptualization of the organizing process. Rather than follow a certain recipe, respondents saw their first priority as building relationships of trust with workers. Then, organizers and workers together could develop tactics tailored to the particular situation. If organizing success most requires relation-building skills and creativity, then it is more important for unions to hire the right organizers than to employ a given tactical formula.     

Self‐employment among women: Do children matter more than we previously thought?

This paper presents an estimation approach that addresses the problems of sample selection and endogeneity of fertility decisions when estimating the effect of young children on women's self‐employment. Using data from the National Longitudinal Survey of Youth 1979, 1982–2006, we find that ignoring self‐selection and endogeneity leads to underestimating the effect of young children. Once both sources of biases are accounted for, the estimated effect of young children roughly triples when compared to uncorrected results. This finding is robust to several changes in the specification and to the use of a different dataset.