Investigation of institutional changes in the UK housing market using structural break tests and time-varying parameter models

This paper investigates the effects of institutional changes within the UK housing market in recent decades using structural break tests and time-varying parameter models. This approach is motivated by models of institutional change drawn from the political science literature which focus on the existence of both fast-moving and slow-moving institutional changes and the interactions between them as drivers of the dynamics of asset prices. As a methodological contribution, we use several time-varying parameter models for the first time in investigations of institutional change. Our findings support the existence of both structural breaks and continuous variance in parameters. This contributes to our understanding of the housing market in two respects. Firstly, the dates of structural breaks appear to better match unexpected market shocks rather than remarkable political events, and this supports prior institutional theory. Secondly, assessment of the effect of slow-moving institutional changes shows that people’s biased expectations rather than the economic fundamentals have increasingly played an important role in driving housing prices in the short run although fundamentals continue to drive house prices to converge to their long-run equilibrium.     

The enduring allure of objective probability

Probability measures are properly considered subjective, if only as a result of the knowledge limitations of human experience. Even if objective probability can be demonstrated as an unambiguously verifiable property of the physical world, our necessarily imperfect access to such aspects of reality would necessitate the construction of subjective probability measures for examinations of human behavior. This paper will explore the distinction between subjective and purportedly objective probability in principle, and demonstrate that actual probabilities can only be subjective, at least ex ante. The paper will next examine the persistent efforts of philosophers, mathematicians, and particularly quantitatively-inclined social scientists, to construct and employ mistaken conceptions of purportedly objective probability. The neo-indeterminist interpretation of sub-atomic particle physics is addressed next, with its attempt to construct an objective-probabilistic account of reality based on the Heisenberg uncertainty principle. An explanation is suggested for the persistent allure of objective probability in the social sciences, which purports to offer a more economical and parsimonious basis for human behavior and the formation of expectations. The view that there are ontologically privileged, objectively-verifiable probabilities and expectations, will be examined and criticized. It appears to be one source of the discredited, though nonetheless widespread and persistent, belief in the efficacy and feasibility of central economic planning.     

Consumer autonomy in integrated health services

The author contrasts the traditional role of the patient as a passive receiver of health services with newer tendencies towards a more active, autonomous role. It is important that the medical profession itself changes its paradigms and develops new models of patient-doctor relationships which better correspond to changed structures of illness. There are chances for consumer autonomy if curative medicine is further developed and the dominating somatic-scientific approach to the treatment of psychosocial diseases is unremittingly questioned.

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Patientenautonomie im integrierten Gesundheitssystem

Zusammenfassung Der Autor stellt die traditionelle Beziehung des Kranken als passiver Klient im Gesundheitssystem neuen Tendenzen gegenüber, die eine aktivere, autonomere Rolle für ihn vorsehen. Es ist wichtig, daß die Angehörigen der medizinischen Profession selbst neue Paradigmen ihres Tuns entwickeln, die den veränderten Krankheitsbildern entsprechen. Es gibt Möglichkeiten für mehr Patientenautonomie (im Sinne einer weit verstanden Verbraucherselbstbestimmung) im Gesundheitswesen, wenn die Strukturen kurativer Medizin fortentwickelt und herrschende somatisch-wissenschaftliche Ansätze in der Behandlung psychosozialer Krankheiten kontinuierlich infrage gestellt werden.

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Robert Francke is Professor in the Faculty of Law, University of Bremen, Universitätsallee, D-2800 Bremen 33, FRG.     

Justifying wrongful employee behavior: The role of personality in organizational sabotage

The role that personality plays in the justification of organizational sabotage behavior was examined. In a two phase study, 120 business students were first surveyed to create a list of 51 methods of sabotage. In the second phase, 274 other business students rated justifiability of the 51 methods and completed Machiavellian and hostility scales. A factor analysis of the justification ratings yielded four factors: (1) methods of sabotaging company profits and production, (2) informational sabotage, (3) violent and illegal methods, and (4) traditional labor methods of sabotage. A 2 (high versus low Machiavellianism) ×2 (high versus low hostility) ANOVA upon factor scores for justifiability revealed significant main effects for hostility and significant interactive effects on Factors 1 and 2. Results were discussed in terms of differences in management and blue collar methods of sabotage and in terms of a self-presentational approach to justification of sabotage. Robert A. Giacalone is currently Assistant Professor of Management Systems at the E. Claiborne Robins School of Business, University of Richmond. Dr. Giacalone has published a variety of articles in the areas of organizational impression management, organizational sabotage and business ethics. His book, Impression Management in the Organization, co-edited with Paul Rosenfeld, is due out in 1989.Stephen B. Knouse is currently Associate Professor of Management at the University of Southwestern Louisiana. Dr. Knouse has published numerous articles on the letter of recommendation and impression management.     

The CEO and the external environment

This study confirms other studies and public choice microeconomic theory: CEOs spend more time on issues external to their firms in today's volatile business environment.