On efficient estimation with panel data: An empirical comparison of instrumental variables estimators

This paper attempts a replication of the Cornwell and Rupert (1988) study—hereafter CR. The CR study investigated the efficiency gains in a returns to schooling example by applying alternative sets of instrumental variables estimators for panel data regressions proposed by Hausman and Taylor (1981), Amemiya and MaCurdy (1986), and Breusch, Mizon, and Schmidt (1989). Corrections on the CR data set lead to changes in the legitimate set of instruments, when the time dummies are excluded from the regression, and to much lower empirical gains in efficiency than those reported in CR. If the time dummies are retained in the wage equation, the experience coefficient is not estimable by the within regression, and the empirical gains in efficiency from using the IV procedures are not limited to the time-invariant education coefficient.     

“Offshoring”: How big an issue?

Spurred by the political debate in the US and several high-profile corporate moves, "offshoring" has become a lively topic of discussion. This paper by Grant Colquhoun, Keith Edmonds and David Goodger tries to put recent developments in context and argues that "offshoring" should be seen as part of a long-standing and largely beneficial trend of international specialisation. In the short term at least, the transfer of service sector activities abroad is likely to involve relatively small numbers of jobs when compared to overall UK employment and labour market turnover. However, specific areas — such as call centres, back office functions and software programming — are expected to be increasingly affected, impacting upon regions of the UK with heavy exposure to those activities and giving rise to adjustment costs. In contrast, retailing, hotels and catering and personal services could well benefit from the move of low value-added jobs abroad. Overall, the impact of "offshoring" on the UK economy in terms of output and productivity should be positive.     

“Agreeing to disagree” type results: a decision-theoretic approach

This paper explores interactive epistemology within Morris’ [S. Morris, Alternative definitions of knowledge, in: M.O.L. Bacharach, L.-A. Gerard-Varet, P. Mongin, H.S. Shin (Eds.), Epistemic Logic and the Theory of Games and Decisions, Kluwer Academic Publishers, Amsterdam, 1997, pp. 217–233] framework of knowledge. Specifically, this paper proves a generalized “agreeing to disagree” result. The major features of this formalization are: (i) non-expected utility receives a unified treatment; (ii) the information structure is not necessarily partitional; (iii) Aumann’s celebrated result of “agreeing to disagree” and Milgrom and Stokey’s well-known result of “no trade” are derived as special cases. This paper also presents some new extensions of the “no trade theorem”.     

“What does the word ‘inflation’ mean to you?” and “What is the connexion between wage claims and rices?” Findings from two national sample surveys in 1966 and 19711

Even in 1971 it is evident that a large proportion of Britain's population does not understandthe process of inflation and sees no connexion between wage claims and prices.     

“100% EDI-connected suppliers” projects: An empirical investigation of success factors

Electronic Data Interchange (EDI) is becoming increasingly important, and new organizational forms based on EDI suppliers’ capabilities are emerging. Therefore, taking advantage of recent technological changes, especially the development of Web-based EDI systems, many big industrial buyers are seeking to get all their suppliers EDI-connected. Based on previous research on EDI adoption, we conducted a survey to study the opportunities of success of such a “100% EDI-connected suppliers” policy using data from the vehicle industry. Findings from our survey helped us to understand suppliers’ responses to such a policy and to provide recommendations to industrial buyers who are seeking to succeed in a “100% EDI-connected suppliers” project. This includes employing tailored communication strategies and selecting appropriate incentives that take into account different levels of suppliers’ EDI-capabilities and suppliers’ dependence.     

On B-robust instrumental variable estimation of the linear model with panel data

The aim of this paper is to demonstrate how to acquire robust consistent estimates of the linear model when the fundamental orthogonality condition is not fulfilled. With this end in view, we develop two estimation procedures: Two stage generalized M (2SGM) and robust generalized method of moments (RGMM). Both estimators are B-robust, i.e. their associated influence function is bounded, consistent and asymptotic normally distributed. Our simulation results indicate that the relatively efficient RGMM estimator (in regressions with heteroskedastic and/or autocorrelated errors) provides accurate parameter estimates of a panel data model with all variables subject to measurement errors, even if a substantial portion of the data is contaminated with aberrant observations. The traditional estimation techniques such as 2SLS and GMM break down when outliers corrupt the data.     

“Want to” Versus “Have to”: Intrinsic and Extrinsic Motivators as Predictors of Compliance Behavior Intention

“Worthless,” “money burning,” or “black holes” is how media and professionals describe compliance practices today. Practitioners are unenthusiastic about control systems, codes of conducts, and systems for compliance management that are increasing in volume but not in effectiveness. In order to help practitioners clarify what actually makes employees comply with their compliance program, this study examines intrinsic and extrinsic motivators of 119 employees from procurement and sales. We contribute to the existing motivation literature, testing the self‐determination theory in low and high hierarchical levels. Our findings show that intrinsic motivators are more strongly and positively related to compliance intention on higher hierarchical levels than the lower ones. However, employees from higher hierarchies show overall less compliance intention than employees from lower hierarchies. © 2015 The Authors. Human Resource Management published by Wiley Periodicals, Inc.     

Demise of “permanent employment” in Japan

The increasing volatility of industrial business cycles is forcing Japanese companies to institute a variety of human resource management methods which are eroding the principle of permanent employment. The transition from permanent employment to more flexible employment practices reviewed here is an example of how human resources can be managed to maximize a firm's competitiveness and effectiveness.     

Spatial strategies of the “haredi” population in Jerusalem

The purpose of this article is to discuss the strategic behavior—spatial and social—of the “Haredi” (ultra-orthodox) Jewish population. This behavior is associated, in essence, with self-segregation and social isolation accompanied by spatial expansion.

This study deals with these processes in one of the largest concentrations of the ultra-orthodox Jewish community—the northern neighborhoods of Jerusalem. The Jewish ultra-orthodox community is characterized by its special interpretation of Jewish law (halacha) and by its high degree of cohesiveness. It tends to segregate itself from the Israeli population for two main motives. The positive one is the desire to create and maintain “cultural dominance” in a specific area in which the community lives and functions. This includes considerations of scale economies and concentration economies in the provision of the special goods and services which it consumes. The second motive, a negative one, is the desire to avoid some kinds of contacts and interactions with the various groups which do not observe Jewish law according to the orthodox conception. This is done in order to prevent the transfer of secular cultural values of western society into their domain.

The high communal cohesiveness, coupled with high population growth and a strong desire for self-territorial segregation, results in increased pressure on the urban residential space. The fear of social relationship—which may serve as agents for transferring social or cultural values—results in a high degree of intolerance toward the non-religious Israeli population. The contact lines between the two populations have become, therefore, confrontation areas which are characterized by territorial conflicts.

Study of the directions of the territorial expansion suggests what the spatial strategy of the ultraorthodox community is: to gain control of a whole, well-defined urban space in order to maintain cultural dominance in it, while assuring potential directions for expansion in the future. The relationships with the outside, non-religious population is built on a modus operandi principle: i.e. minimal and culturally neutral interactions.

This strategy is carried out through penetration and expansion tactics in a well-known process. These processes present important challenges for planning areas in which ultra-orthodox communities reside.     

Flexibility at different stages in the life cycle of projects: An empirical illustration of the “freedom to maneuver”

Many textbooks on project management present illustrations concerning the relative size of project attributes during different project phases. The derived models all have attributes in common, such as uncertainty, significance of decisions, and degree of freedom to maneuver, that are typically high in the beginning of the project and low in the end. At the same time, variables such as the accumulated cost and available information begin at low levels and end up at a high level at the end of the project. Based on empirical data from projects, this paper illustrates and quantifies one of these attributes, the freedom to maneuver, in different project phases.