Shaping long-run expectations in problems of coordination

When far-sighted agents may adjust their behavior only gradually, the issue of equilibrium selection becomes one of tension between history and expectations. This paper analyzes whether, in this context, a government policy maker may intervene successfully and redirect expectations away from the inertia of undesired history. The possibilities and limitations of such an approach to `expectation management' are studied within a game-theoretic framework which involves both the government and the population.     

Contributions of HRM throughout the stages of environmental management: methodological triangulation applied to companies in Brazil

The purpose of this research is to analyze the contribution of human resources management throughout the evolutionary stages of environmental management in Brazilian companies. A theoretical framework concerning environmental management and its evolution and the ‘greening’ of the functional and competitive dimensions of human resource management were developed. A methodological triangulation was developed in two complimentary phases. In the first phase, data were collected from 94 Brazilian companies with ISO 14001 certification. The data collected were analyzed and processed using statistical techniques. The conclusions of the first phase supported the second phase of this empirical research. The second phase consisted of a study of multiple cases in four Brazilian companies. The results show evidence of the first known empirical study of contributions of human resource dimensions throughout the stages of environmental management in Brazilian manufacturing companies.     

Revealing the screening: organisational factors influencing the recruitment of immigrant professionals

Little attention has been paid to factors that influence employers in their recruitment behaviour, especially as it affects immigrants. In order to address this gap in the literature, a case study of regional Australian employers is used to examine how organisation-based factors influence the employer screening and recruitment of immigrant professionals. The findings indicate that employers are not primarily driven by a human capital lens during the recruitment process. Rather they seem to be influenced by the place and specificity of the process. Some of the key factors which can either favourably or unfavourably influence employers include the organisational size, type, resource availability, ethnic diversity of clients, level of role criticalness, industry-based culture and management style.     

Socio-cultural factors and female entrepreneurship

The purpose of this paper is to analyze the main socio-cultural factors that influence women entrepreneurship in Catalonia, using institutional economics as a theoretical framework. The empirical research employs logistic regression models (rare events logit), utilizing data obtained from the Global Entrepreneurship Monitor project (GEM). The main findings highlight that ‘fear of failure’ and ‘perceived capabilities’ are the most important socio-cultural factors on the probability of becoming a woman entrepreneur. The research contributes both theoretically, advancing knowledge of the socio-cultural factors that affect female entrepreneurship, and practically, helping in the development of educational programmes and support policies to promote entrepreneurial activity.     

Entrepreneurs or employees: a cross-cultural cognitive analysis

This study examines the influence of the cultural-cognitive dimension - measured through creativity, risk taking and independence - on the probability of becoming an entrepreneur or an employee. Institutional economics is used as theoretical framework of the research. The empirical research uses binomial and multinomial probit models, when controlling for socio-demographic factors and macro variables. Data was obtained from the World Values Survey, for the period 2005-2008, considering a sample of 41 countries and 56,875 individuals. The main findings demonstrate that creativity, risk taking and independence increase the probability of becoming entrepreneur, and decrease the probability of becoming employee. Given that these characteristics facilitate the birth of new ideas, processes, products, and services, it is crucial to learn from entrepreneurs, and to foster such characteristics within organizations. The results have contributions for both researchers and policymakers on new firm creation (entrepreneurship) and on the generation of innovation within organisations (intrapreneurship).     

Stock market cycles, financial liberalization and volatility

In this paper we analyze the cycles of the stock markets in four Latin American and two Asian countries, and we compare their characteristics. We divide our sample in two subperiods in order to account for differences induced by the financial liberalization processes of the early 1990s. We find that cycles in emerging countries tend to have shorter duration and larger amplitude and volatility than in developed countries. However, after financial liberalization Latin American stock markets have behaved more similarly to stock markets in developed countries whereas Asian countries have become more dissimilar. Concordance of cycles across markets has increased significantly over time, especially for Latin American countries after liberalization.     

General equilibrium analysis of the Eaton-Kortum model of international trade

We study a variation of the Eaton-Kortum model, a competitive, constant-returns-to-scale multicountry Ricardian model of trade. We establish existence and uniqueness of an equilibrium with balanced trade where each country imposes an import tariff. We analyze the determinants of the cross-country distribution of trade volumes, such as size, tariffs and distance, and compare a calibrated version of the model with data for the largest 60 economies. We use the calibrated model to estimate the gains of a world-wide trade elimination of tariffs, using the theory to explain the magnitude of the gains as well as the differential effect arising from cross-country differences in pre-liberalization tariff levels and country size.     

Interpreting and Testing the Scaling Property in Models where Inefficiency Depends on Firm Characteristics

Let u ≥ 0 be technical inefficiency, let z be a set of variables that affect u, and let δ be the parameters of this relationship. The model satisfies the scaling property if u(z, δ) can be written as a scaling function h(z, δ) times a random variable u* that does not depend on z. This property implies that changes in z affect the scale but not the shape of u(z,δ). This paper reviews the existing literature and identifies models that do and do not have the scaling property. It also discusses practical advantages of the scaling property. The paper shows how to test the hypothesis of scaling, and other interesting hypotheses, in the context of the model of Wang, Journal of Productivity Analysis, 2002. Finally, two empirical examples are given.     

Takeover Timing, Implementation Uncertainty, and Embedded Divestment Options

We design a compound real options model, which determines the timing of takeovers and characterizes the distribution of the associated surplus. We delineate a relation between the bargaining power of the acquiring firm and the takeover incentives. The takeover threshold is decreasing as a function of the expected primary takeover gain and the embedded divestment gain. Decreased implementation uncertainty stimulates takeover activity. This uncertainty concerns the delay until either primary takeover synergies or subsequent divestment gains are realized. We demonstrate how the relation between volatility and takeover timing depends on the functional form of the profit flow with implementation uncertainty.Financial support from the Foundation for the Promotion of the Actuarial Profession and the Finnish Insurance Society to Luis H. R. Alvarez is gratefully acknowledged. Both authors acknowledge the financial support from the Yrj? Jahnsson Foundation and the Research Unit of Economic Structures and Growth (RUESG) at the University of Helsinki. The authors are grateful to Josef Zechner and two anonymous referees for their constructive comments and suggested improvements on an earlier version of this study.