Can Reform Waves Turn the Tide? Some Case Studies using the Synthetic Control Method

A number of advanced economies carried out a sequence of extensive reforms of their labor and product markets in the 1990s and early 2000s. Using the Synthetic Control Method (SCM), this paper implements six case studies of well-known waves of reforms, those of New Zealand, Australia, Denmark, Ireland and Netherlands in the 1990s, and the labor market reforms in Germany in the early 2000s. In four of the six cases, GDP per capita was higher than in the control group as a result of the reforms. No difference between the treated country and its synthetic counterpart could be found in the cases of Denmark and New Zealand, which in the latter case may have partly reflected the implementation of reforms under particularly weak macroeconomic conditions. Overall, also factoring in the limitations of the SCM in this context, the results are suggestive of a positive but heterogenous effect of reform waves on GDP per capita.     

To fear or not to fear? Applying the social amplification of risk framework on two environmental health risks in Singapore

Abstract

Smoke haze and dengue fever seasons were nationwide environmental health risk events that plagued Singapore between April and June 2013. Although relatively harmless compared to dengue fever, people in Singapore were visibly more disturbed by smoke haze. They engaged in preventive behaviors such as frantic purchasing of protective masks or staying indoors most of the time. Such reactions hint at the possibility of the social amplification of risk, a term coined to explain irrationally high public concerns over relatively minor risk issues, due to the visible nature of the risk event or people’s reactions to it. The current study aims to confirm the social amplification of risk for the haze event, as well as to test for the underlying reasons behind this phenomenon. Among the antecedents explored were the influence of information channels (traditional media and social media) on risk perception, negative affect, information seeking, and information sharing on the enactment of preventive behaviors. Data were collected from a sample of 343 college students through an online questionnaire. Results supported the presence of social amplification of risk for the haze event, and social media exposure was found to overshadow the influence of traditional media exposure on risk perception, negative affect, information seeking, information sharing, and preventive behaviors.     

The supply of female part-time labour over the life cycle

The debate that expenditure on new or existing roads induces more traffic has intensified during the 1990s in most developed countries. In this paper the controversy is readdressed from a UK perspective, using the method of Granger noncausality. Results indicate that aggregate expenditure on new and existing roads does not induce additional traffic in the Granger sense. Conversely, the results found that traffic Granger causes road expenditure. The importance of these results, along with issues concerning the selection and specification of dynamic models, are discussed.     

The Desirability of forgiveness in regulatory enforcement

I present a model that explains two common features of regulatory enforcement: selective forgiveness of noncompliance, and the collection of information on a firm’s compliance activities and not just its compliance status. I show that forgiving noncompliance is optimal if the information on a firm’s compliance activities constitutes sufficiently strong evidence of the firm having exerted a high level of compliance effort. The key benefit of forgiving noncompliance is a reduction in the probability with which the firm needs to be monitored.     

United Nations Global Compact: The Promise–Performance Gap

Organizational deviance represents a costly behavior to many organizations. While some precursors to deviance have been identified, we hope to add to our predictive capabilities. Utilizing social cognitive theory and psychological contract theory as explanatory concepts, we explore the role of moral disengagement and turnover intentions, testing our hypotheses using two samples: a sample of 44 nurses from a hospital system in the Southwestern United States (Study 1), and a sample of 52 working adults collected from an online survey system (Study 2). Results strongly supported our hypotheses in both samples, indicating that the self-regulatory deactivation inherent in moral disengagement led to increased organizational deviance; effects that were much more pronounced when turnover intentions were high. Our findings support the increased role of cognition in determining behavior when environmental pressures stemming from the psychological contract have been altered, leading to a number of theoretical and practical implications, particularly in industries with high turnover rates.     

Reluctant employees and felt stress: The moderating impact of manager decisiveness

Job stress is an integral part of the organizational landscape and particularly severe in the sales profession. A host of studies have looked at felt stress, its antecedents, and consequences. This research examines how employee resistance to change and a manager's decisiveness affect the salesperson's felt stress and turnover intentions. This study shows that the salesperson's resistance to change is positively associated with felt stress. Study results also show that the impact of an employee's resistance to change on felt stress is moderated by a manager's decisiveness. Model hypotheses are tested with responses from 255 bank salespeople in India.     

Financial Sector Reforms in Developing Countries: The Indian Experience

This study is based on the premise that the success/failure of financial sector reforms depends heavily on country specific factors and makes an attempt to examine these factors in the Indian context. The financial sector reforms analysed in this paper include the deregulation of interest rates, increasing competition and foreign ownership, and the introduction of financial supervision. We argue that an economic rationale for a gradualist approach to financial reform is that it is stability enhancing. Furthermore, we suggest that India’s complex political economy has resulted in a gradual approach to reform, and this approach has been successful along the dimension of banking stability.     

Capital Flight from Russia

This paper documents the scale of capital flight from Russia, compares it with that observed in other countries, and reviews policy options. The evidence from other countries suggests that capital flight can be reversed once reforms take hold. The paper argues that capital flight from Russia can only be curbed through a medium‐term reform strategy aimed at improving governance and macroeconomic performance, and strengthening the banking system. Capital controls result in costly distortions and should gradually be phased out as part of that medium‐term strategy.