Disaggregating input–output tables in time: the temporal input–output framework

The input–output framework has evolved dramatically since its initial formulation. New analytical techniques and extensions have allowed a more comprehensive assessment of the economy and expanded its applicability. Nonetheless, the core of the framework has remained unchanged: an annually compiled input–output table, which conveys monetary flows between sectors in a region in a particular year. Hence, the technical coefficients derived from it are ‘average’ input compositions, neglecting fluctuations in production capacity, seasonality and temporal shocks within that period. This paper develops a consistent methodology to disaggregate the annual input–output table in its time dimension in order to estimate intra-year input–output matrices with distinct technical structures for a particular year. The main advantages in relation to the annual model are to allow seasonal effects to be studied within the input–output framework, to better understand the process of coefficient change and to offer a more comprehensive dynamic view of production.     

To change or not to change–antecedents and outcomes of strategic renewal in SMEs

Companies need to constantly renew themselves to remain competitive in rapidly changing market environments, regardless of their size or age. Even though strategic renewal is a crucial factor for sustainable success of organizations, it is only an emergent area in literature. This article examines potential antecedents of strategic renewal and impact on firm performance. Based on 104 companies’ responses to a structured questionnaire, the empirical findings demonstrate that strategic renewal positively impacts firm performance, and that entrepreneurial orientation and organizational learning are antecedents. From a practical managerial viewpoint, our results suggest that firms following a strategic renewal approach can increase the long-term success of their organizations: Firms that are entrepreneurially oriented and willing to learn can successfully manage strategic renewal.     

To pool or not to pool: What is a good strategy for parameter estimation and forecasting in panel regressions?

This paper considers estimating the slope parameters and forecasting in potentially heterogeneous panel data regressions with a long time dimension. We propose a novel optimal pooling averaging estimator that makes an explicit trade‐off between efficiency gains from pooling and bias due to heterogeneity. By theoretically and numerically comparing various estimators, we find that a uniformly best estimator does not exist and that our new estimator is superior in nonextreme cases and robust in extreme cases. Our results provide practical guidance for the best estimator and forecast depending on features of data and models. We apply our method to examine the determinants of sovereign credit default swap spreads and forecast future spreads.     

Energy and CO2 emission relationships in the NAFTA trading bloc: a multi-regional multi-factor energy input–output approach

The North-America Free Trade Agreement (NAFTA) has brought together the economies of Canada, Mexico, and the US into forming one of the largest trading blocs worldwide (within the top CO₂ emitters). However, the current global protectionist discourse threatens the agreement. This paper analyzes the energy and energy-related CO₂ emission relationships between NAFTA countries in 2014 to gain insights into the climate change implications of current integration and the possible cancelation of the agreement. The analysis is performed with a multi-regional version of the multi-factor energy input–output model. The results show that NAFTA has not built a single integrated energy system, though it has helped reduce energy-related CO₂ emissions. Moreover, if NAFTA is not revoked, further integration would depend on the capacity of the Mexican energy sector to converge to the performance of its trade partners’ energy sectors. Conversely, a broken deal would induce negative environmental externalities.     

Using input–output models to estimate sectoral effects of carbon tax policy: Applications of the NGFS scenarios

The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) has engaged in scenario analysis that estimates a $200/ton carbon tax would be required to transition to net zero carbon by 2050. Using a $200/ton carbon tax as a base, this paper uses input–output (IO) modeling to generate price and revenue effects of a carbon tax. Results from these models, which can only be interpreted as the short-run, upper-bound effects of the carbon tax policy, imply that in response to a $200/ton tax on CO₂e emissions, carbon-intensive industries, such as agriculture, extraction, transportation, utilities, and chemicals, may experience price increases in the range of 10-30 percent. Other industries will also experience price increases, but to a lesser degree, due to increased input costs associated with the tax. In addition, modeling results also suggest that industries facing elastic pricing regimes may face similar-sized declines in revenues as a consequence of the carbon tax. Rank-ordered impact results from these models can be utilized by bank supervisors and firms to adequately plan for sectoral-level transition risk within their lending and/or investment portfolios.     

To dissent or not to dissent? Informative dissent and parliamentary governance

Legislative dissent has detrimental effects for both party and legislator, i.e., legislators depend on their party label for re-election, which value in turn depends in part on the party’s reputation of cohesiveness. Commonly dissent has been attributed to “extreme” preferences. I provide an informational rationale for dissent. Costly dissent allows the legislator to credibly signal information about his constituency’s preferences to the Cabinet. As a result the Cabinet can better calibrate its policies with the electorate’s preferences. Dissent is shown to depend on policy preferences as well a the legislators’ electoral strength, electoral volatility, and the cost of dissent. Finally, the results suggests that parties may sometimes benefit from tolerating some level of dissent. I am grateful to Christopher Kam, Randall Calvert, John Duggan, Mark Fey, Eduardo Leoni, Sona Golder, and the anonymous referees for their helpful comments and suggestions. I also wish to thank the Political Institutions and Public Choice Program at Michigan State University for its support. All remaining errors are mine.     

Bayesian selection of technology assumptions for the transformation from supply-use to input–output tables

ABSTRACT

In the construction of input–output models from supply-use tables, technology assumptions disambiguate how an industry uses inputs in the production recipe of multiple outputs. This paper uses Bayes' theorem to select technology assumptions, taking into account empirical observations. The paper presents a formulation to explore hybrids between product and industry technology assumptions in product-by-product tables. We then present Markov chain Monte-Carlo techniques to implement the Bayesian method for selecting technology assumptions. We apply the method in a case study using Eurostat supply-use tables of 2004 and 2005, exhibiting a volume of secondary products of less than 13%, and 59 products and industries per country. The results show that the choice of technology is not important, given that there is no strong evidence in favour of any of them.     

What is (or should be) the difference between competency modeling and traditional job analysis?

We argue that Competency Modeling (CM) has the potential to fill an important void in Traditional Job Analysis (TJA), specifically the infusion of strategic concerns in day-to-day employee behavior. Moreover TJA and CM pursue fundamentally different goals, which those who argue for and against either of these human resource methods at times may overlook. To buttress this point we compare TJA and CM along six dimensions: purpose (describe versus influence behavior), view of the job (an object to be described versus a role to be enacted), focus (job versus organization), time orientation (past versus future), performance level (typical versus maximum), and measurement approach (latent trait versus clinical judgment). We conclude with a series of recommendations regarding ways in which TJA can be joined with CM so that an organization may achieve, among other outcomes, the critical purpose of directing employee behavior toward the accomplishment of its strategic objectives.     

Do we estimate an input or an output distance function? An application of the mixture approach to European railways

In this paper, we estimate parametric input and output distance functions and discuss how to estimate a mixture/latent class model (LCM) involving the output and input distance functions in the context of multi-input and multi-output production technology. The proposed technique is applied to a panel data on European Railways (1971–1994). This model allows us to identify determinants of the efficiency orientation, thereby providing useful information that can help researchers to choose between the input and the output-oriented approaches. In addition, we develop cross-indices that can be used to compute input (output) technical inefficiency from the estimates of output (input) distance function.

To merge or not to merge? The impact of union merger decisions on workers' representation in Germany

Union mergers have been widely studied in a variety of countries; however, little is known about their impact on union effectiveness. This article draws on in‐depth interviews with officials and works councillors from four German unions, as well as on a representative survey of German works councils, to analyse how a union's merger status shapes its effectiveness in three spheres of activity: political lobbying, collective bargaining and establishment‐level interest representation. We compare two cases of merger with two cases of continued organisational independence, finding that merger outcomes for individual unions vary considerably across our three union functions.     

To eat or to be eaten–on the role of entrepreneurship in the Norwegian telecom access sector

The purpose of this paper is to analyse mechanisms of evolution by studying a population of firms involved in the provision of telecom access in Norway after the liberation of the telecom sector during the 1990s. The approach is based on a combination of theory on entrepreneurship and theories on sectoral innovation systems, in particular the role of entrepreneurship under different technological regimes. By analysing the role of different actors in the market for telecom access, the relationship between the previous state monopolist Telenor and other companies entering the market is discussed. The main conclusion is that Telenor, in spite of the liberalization of the telecom market, still is in a very dominant position in the markets for access provision. To the extent that Telenor is challenged, it is basically by other existing telecom companies. By the time of finalizing this paper (2006), none of the entrepreneurial firms have survived as independent firms. The main conclusion deriving from this analysis, is that the telecom access sector is characterized by the routinized regime, in which the larger, established firms are the dominant players. However, this does not mean that entrepreneurs do not play important roles. By starting their new ventures, entrepreneurs are challenging the positions of the incumbents; they are contributing to more competition and innovation. Without the pressure from the entrepreneurial entrants, the level of innovation in the sectoral system would have been significantly lower.     

Choosing among alternative technologies: conditions for assuring the feasibility of an input–output database or scenario

The conceptual reach of the basic input–output modeling framework is substantially extended by new models that incorporate the economic logic of comparative advantage as the basis for the endogenous choice among alternative production technologies. This paper establishes procedures that define the conditions under which the database used for scenario analysis in this extended framework assures the existence of an economically feasible solution. We provide a criterion for structural feasibility, the property established by the Hawkins–Simon condition for the basic input–output model, and introduce a criterion for scale feasibility. The logic underlying the tests is illustrated by numerical examples based on the Rectangular Choice-of-Technology model and database. These procedures can be particularly useful for incorporating engineering and other technical sources of information into multi-regional input–output databases; they can also provide substantial underlying detail about individual technologies, sectors, and factors of production for both feasible and infeasible scenarios.     

What is the best way to impede a central bank?

Recent work has found several ways of restricting central bank behavior to achieve much of the gain of commitment over discretion. This paper compares three such impediments: A quadratic penalty on interest rate changes, a fixed penalty on any rate change, and forced infrequency of rate change. All three achieve significant improvement over discretion, and often come close to interest rate rule commitment. The fixed penalty is frequently the best performing restriction, although the quadratic penalty does best in certain alternative parameterizations. Combinations are found to provide no improvement over the individual impediments alone.     

To be entrepreneurial,or not to be entrepreneurial? Explaining differences in franchisee entrepreneurial behavior within a franchise system

Although franchising scholars largely acknowledge that franchisees may behave like entrepreneurs, little is known about whether and why franchisees differ in their entrepreneurial behaviors. Franchisees are semi-autonomous entrepreneurs running geographically dispersed units within established organizations. We therefore use corporate entrepreneurship (CE) literature to define and measure franchisee entrepreneurial behavior, and we build on an entrepreneurial motivation framework to develop an integrative set of hypotheses that explain differences in franchisee entrepreneurial behavior. We test these hypotheses using survey data on 119 franchisees within a single Dutch franchise system. Our results show that the extent of franchisee entrepreneurial behavior varies considerably, even within a single franchise system. The differences in franchisees’ entrepreneurial behaviors can be explained by differences in franchisees’ intrinsic goals, relational satisfaction and local competition.     

To Screen or Not to Screen? Using the Internet for Selection Decisions

Organizations are increasingly relying on Internet searches and social networking websites to uncover detailed and private information about job applicants. Such Internet screening techniques have the potential to provide additional information beyond that found using traditional screening approaches. However, questions regarding the legality and appropriateness of this practice, as well as issues regarding the standardization, reliability, and validity of the information obtained, need to be addressed. The current work describes these issues associated with Internet screening and provides recommendations to help ensure this practice is used appropriately in organizations. Suggestions for future research on Internet screening are also discussed.     

To be or not to be unionized? A social dilemma perspective on worker decisions to support union organizing

A worker's decision whether or not to support union organizing remains a critical and timely issue for American workers. We draw on the union organizing, organizational psychology, and social dilemma literatures to offer new insight into a worker's decision whether or not to support union organizing efforts. In particular, we highlight three specific conditions – social uncertainty, environmental uncertainty, and exposure – that make the decision whether or not to support union organizing a social dilemma, and describe how these should be expected to vary by union organizing stage. We also examine the effects of key contingencies: management opposition that exacerbates, and strategic union efforts that counteract, the effects of social dilemmas. Finally, we discuss the theoretical and practical implications of viewing union organizing from a social dilemma perspective.     

To belong or not to belong,that is the question?! Explorative insights on liminal gender states within women’s STEMpreneurship

Scientific discourses about entrepreneurialism have long been dominated by neo-liberal thinking that categorizes it as gender-neutral. The last two decades however have seen entrepreneurship research develop a more nuanced understanding of gender. Taking the recent findings of entrepreneurial belonging (EB) as dynamic and relational as a starting point, this article aims to better understand how women entrepreneurs are affected by the challenges and chances of defining and negotiating the genderedness of EB. The concept of liminality is used as a critical perspective to gain insights on how women entrepreneurs accomplish entrepreneurial belonging in what is considered a predominantly masculine field like STEM (science, technology, engineering, mathematics). Insights into explorative interviews question the need for a linear or static “fixed” approach of (un)doing gender to foster belonging. More precisely, the data reveal that liminal gender states (LGSs) of EB are linked to the situational perception of dissonance between the subjective ideas of womanhood and a disciplinary as well as entrepreneurial masculine normative frame. And indeed, the data indicate that women STEMpreneurs are continuously triggered by the genderedness of their EB as being a state “betwixt and between” normative frames. One the one hand, they feel challenged by the dissonance of LGSs. On the other hand, the interviews also reveal that this challenge turns into an opportunity in situations where LGSs are strategically used to build upon new entrepreneurial routines and roles that foster a state of uniqueness.

     

Committed to the organization or the job? Effects of perceived HRM practices on employees' behavioral outcomes in the Japanese healthcare industry

This paper attempts to document how employees' perceptions of organizations' human resource management (HRM) practices influence their work behavior and outcomes, including the level of turnover intentions and job quality improvement, in a Japanese organizational and management context. In particular, an examination was made to clarify the mediating role of person–environment (P–E) fit and multiple aspects of work commitment to reach possible explanations of the relationships between perceived HRM practices and employees' behavioral outcomes, following recent work that studied the above linkages. The results of structural equation modeling using a sample of 1052 healthcare service employees in Japan provided basic support for the idea that the effects of HRM practices and employees' behavioral outcomes are neither direct nor unconditional. Moreover, employees' evaluations of their fit and commitment to their organizations were found to be the important mediators of the relationships between perceived HRM practices, while their evaluations of their fit to and involvement in their jobs were not. The findings are used to discuss why the specific forms of P–E fit and work commitment appear salient in Japanese organizations. The generalizability of the findings and the limitations of the study are discussed.     

What is the role of perceived leadership capacity in presidential politics?

The relevance of leadership models in presidential leadership, and principally the role of perceived leadership in presidential election years, is an area of study with limited development but increasing importance. This study explores the relationship between young voters' leadership assessment of presidential candidates, Barack Obama and John McCain, and their reports of voting behavior during the 2008 presidential election. Leadership perceptions were collected from 812 respondents prior to the election. Results indicate that candidate leadership assessments have a significant effect on candidate preference after controlling for the impact of party identification and self‐perceived political efficacy. Further, political efficacy significantly impacted respondents' intent to vote in the election after controlling for these same variables. Party affiliation produced significant differences across the political ideology, leadership ratings, political efficacy, and likelihood of voting variables. The study concludes with a discussion of the implications as they pertain to political leadership.