Term Structure Models Driven by General Lévy Processes

As a generalization of the Gaussian Heath–Jarrow–Morton term structure model, we present a new class of bond price models that can be driven by a wide range of Lévy processes. We deduce the forward and short rate processes implied by this model and prove that, under certain assumptions, the short rate is Markovian if and only if the volatility structure has either the Vasicek or the Ho–Lee form. Finally, we compare numerically forward rates and European call option prices in a model driven by a hyperbolic Lévy motion with those in the Gaussian model.     

Drivers of sales performance: a contemporary meta-analysis. Have salespeople become knowledge brokers?

It has been 25 years since the publication of a comprehensive review of the full spectrum of sales-performance drivers. This study takes stock of the contemporary field and synthesizes empirical evidence from the period 1982–2008. The authors revise the classification scheme for sales performance determinants devised by Walker et al. (1977) and estimate both the predictive validity of its sub-categories and the impact of a range of moderators on determinant-sales performance relationships. Based on multivariate causal model analysis, the results make two major observations: (1) Five sub-categories demonstrate significant relationships with sales performance: selling-related knowledge (β = .28), degree of adaptiveness (β = .27), role ambiguity (β = −.25), cognitive aptitude (β = .23) and work engagement (β = .23). (2) These sub-categories are moderated by measurement method, research context, and sales-type variables. The authors identify managerial implications of the results and offer suggestions for further research, including the conjecture that as the world is moving toward a knowledge-intensive economy, salespeople could be functioning as knowledge-brokers. The results seem to back this supposition and indicate how it might inspire future research in the field of personal selling.     

Deregulation, Mergers, and Cost Savingsin Class I U.S. Railroads, 1974-1986

In this paper we attempt to disentangle the effects of deregulation on rail costs from those directly attributable to mergers. We estimate that cost reductions obtained from mergers ranged from a high of 33% for the Burlington Northern to a low of a 3% cost increase for the CSX. However, firms not engaged in significant merger activities experienced similar cost differentials indicating that consolidation was not a prerequisite for cost savings. We conclude that although mergers did confer some benefits on the participating firms, they were not a prerequisite for railroads being able to achieve substantial cost savings.     

Does Learning Matter for Knee Replacement Surgeries? Data Evidence from a German Hospital

In 2003, Germany will be the first country in the world to adopt a fully prospective payment system for the reimbursement of all inpatient hospital services. To face the increasing competition, hospitals can pursue either a specialization or a cost and quality leadership strategy. It stands to reason that organizational and individual learning will play an important role for both strategies. This paper raises the question, whether results from traditional learning curve theory can be applied to surgical procedures despite the latter's heterogeneity. We develop a theoretical model of surgical learning and test it using detailed operating room data from the first 601 total knee replacement surgeries of a small German hospital between 1994–2000. Our results suggest that classical learning curve theory can indeed be applied to this high cost high volume procedure.     

Erwiderung und Protest

Ohne Zusammenfassung     

Human Resources Management Innovation

Guided by a general manager's perspective of human resources management (HRM), this paper identifies key factor affecting the introduction of HRM innovations in organizations. Because the essence of market and technological leadership is the development of the organizational capacity to carry out inventive ideas, it is critical to understand the main forces influencing HRM innovation. Following a definition of HRM innovation, six propositions are discussed using current and historical examples. Since HRM innovation also involves change in the social system of the organization, the adoption and diffusion of these innovations can be attributed not only to external environmental forces but also to social processes.     

Explicit solution of a general consumption/portfolio problem with subsistence consumption and bankruptcy

This paper solves a general continuous-time single-agent consumption and portfolio decision problem with subsistence consumption in closed form. The analysis allows for general continuously differentiable concave utility functions. The model takes into consideration that consumption must be no smaller than a given subsistence rate and that bankruptcy can occur. Thus the paper generalizes the results of Karatzas, Lehoczky, Sethi, and Shreve (1986).