Turning from crime: A dynamic perspective

This paper examines criminal choice using a variant of the human capital model. The innovation of our approach is that it attempts to disaggregate individual capital, not unlike production-based studies which disaggregate physical capital into equipment and structures. We disaggregate an individual’s capital stock into the standard human capital component as well as a utility generating component that we call social capital. In our set-up, social capital is used to account for the influence of social norms on the decision to participate in crime. This is done by modeling the stigma of arrest as a reduction in the individual’s social capital stock. We also allow individuals to account for the impact of their criminal actions on their probability of arrest. In order to estimate the structural parameters underlying the model, we make use of computationally intensive methods involving simulated generalized method of moments and value function approximation. The empirical results, based on panel data from the Delinquency in a Birth Cohort II Study, support the social capital model of crime and reveal significant state dependence in the decision to participate in crime.     

Corporate governance and disclosures on the transition to International Financial Reporting Standards

For reporting periods ending on or after 30 June 2004, Australian companies were required to disclose the expected impact of applying Australian equivalents of International Financial Reporting Standards effective from 1 January 2005. The objective of this paper is to examine the association between the level of disclosure and corporate governance quality. Using a sample of listed companies with 30 June balance dates, we find that the quantity of disclosure was positively related to some aspects of superior corporate governance, such as the frequency of board and audit committee meetings and the choice of auditor.     

Assessing public leadership styles for innovation: a comparison of Copenhagen,Rotterdam and Barcelona

This article explores which leadership qualities public managers regard as important for public innovation. It is based on a survey of 365 senior public managers in Copenhagen, Rotterdam and Barcelona. Five perspectives on leadership were identified and tested using a number of items. Some of these proved to be more robust than others. Analysis of the three cities reveals a nuanced set of leadership styles, which include a transformational style, and one that is more dedicated to motivating employees, risk-taking and including others in decision-making. This suggests the need for more research on leadership and public-sector innovation.     

Critically Interrogating Eco‐Homes

Eco‐homes have only been researched in fragmented and partial ways, which fail to adequately examine their complexities and possibilities. Numerous myths about eco‐homes persist in the public imagination and policy support has been mixed with, in practice, little change to the construction of contemporary homes. The ecological and social potential of eco‐homes are being undermined by a technocratic focus, the capacity and behaviour of occupants, and a weakening of design as developments are scaled up. This intervention identifies five ways in which eco‐homes need to be more robustly interrogated to strengthen their potential, through their breadth and diversity, dynamic nature, socio‐material interdependencies, place, and understanding of their political economies. Crucially these interrogations need to be researched simultaneously to ensure that the full diversity of eco‐homes is understood through their multiple interdependencies, multi‐scalar practices and materialities.     

Neighborhood effects of concentrated mortgage foreclosures

As the national mortgage crisis has worsened, an increasing number of communities are facing declining housing prices and high rates of foreclosure. Central to the call for government intervention in this crisis is the claim that foreclosures not only hurt those who are losing their homes to foreclosure, but also harm neighbors by reducing the value of nearby properties and in turn, reducing local governments’ tax bases. The extent to which foreclosures do in fact drive down neighboring property values has become a crucial question for policy-makers. In this paper, we use a unique dataset on property sales and foreclosure filings in New York City from 2000 to 2005 to identify the effects of foreclosure starts on housing prices in the surrounding neighborhood. Regression results suggest that above some threshold, proximity to properties in foreclosure is associated with lower sales prices. The magnitude of the price discount increases with the number of properties in foreclosure, but not in a linear relationship.     

What are the consequences of board destaggering?

In this paper, we examine the consequences of the decision to destagger the election of directors using a sample of firms that switched from a staggered to a destaggered board structure from 2002 through 2010. We find that the likelihood of destaggering increases in shareholder activism, firm size, and poor prior accounting performance. Furthermore, we find that firms that destagger tend to have larger boards and a lower entrenchment index prior to destaggering. We then use our determinants model to identify a sample of control firms that maintained a staggered board structure. Employing a difference-in-differences research design, we find that, relative to our control firms, firms that destaggered experience declines in Tobin’s q and accounting performance, measured by ROA. In addition, the negative effect on Tobin’s q is most pronounced in firms with greater advisory needs, consistent with the notion that destaggering results in worse performance when the advisory role of boards is more important. Contrary to claims made by proponents of destaggered boards, we find no evidence that CEOs are less entrenched after destaggering. We also provide some evidence suggesting that investment in R&D falls in the post-destaggering period, consistent with the view that after destaggering board members have shortened incentive horizons. Taken together, our evidence is contrary to the earlier studies that claim that destaggered boards are generally optimal and value-increasing.     

Trade policy in majoritarian systems: the case of the U.S.

Abstract We provide a theory of trade policy determination that incorporates the protectionist bias inherent in majoritarian systems, suggested by Grossman and Helpman (2005) . The prediction that emerges is that in majoritarian systems, the majority party favours industries located disproportionately in majority districts. We test this prediction using U.S. data on tariffs, Congressional campaign contributions, and industry location in districts represented by the majority party over the period 1989–97. We find evidence of a significant majority bias in trade policy: the benefit to being represented by the majority party appears at least as large in magnitude as the benefit to lobbying.     

Dial “A” for agriculture: a review of information and communication technologies for agricultural extension in developing countries

Agriculture can serve as an important engine for economic growth in developing countries, yet yields in these countries have lagged far behind those in developed countries for decades. One potential mechanism for increasing yields is the use of improved agricultural technologies, such as fertilizers, seeds, and cropping techniques. Public sector programs have attempted to overcome information‐related barriers to technological adoption by providing agricultural extension services. While such programs have been widely criticized for their limited scale, sustainability, and impact, the rapid spread of mobile phone coverage in developing countries provides a unique opportunity to facilitate technological adoption via information and communication technology (ICT)‐based extension programs. This article outlines the potential mechanisms through which ICT could facilitate agricultural adoption and the provision of extension services in developing countries. It then reviews existing programs using ICT for agriculture, categorized by the mechanism (voice, text, internet, and mobile money transfers) and the type of services provided. Finally, we identify potential constraints to such programs in terms of design and implementation, and conclude with some recommendations for implementing field‐based research on the impact of these programs on farmers’ knowledge, technological adoption, and welfare.     

Does Social Software Support Service Innovation?

Recent Internet technologies and web‐based applications, such as social software, are being increasingly applied in firms. Social software can be employed for knowledge management and for external communication enabling access to internal and external knowledge. Knowledge, in turn, constitutes one of the main inputs to service innovation. Hence, social software has the potential to support service innovation. Using data from German IT and knowledge‐intensive service firms, this is the first paper that empirically analyses whether the use of social software applications triggers innovation. It refers to a knowledge production function in which social software use constitutes the knowledge sourcing activity. The results reveal a positive relationship between social software and service innovation. Since this result is robust when controlling for former innovative activities and the previous propensity to adopt new technologies and to change processes, the analysis suggests that the causality runs from social software to innovation.