Personal Attachment to the Union in Small Bargaining Units

Union member attachment research has generally examined large unions organizing large employers. The present study presents a conceptual model and related data concerning various aspects of the union attachment expressed by individuals in small bargaining units. The results show differences among individuals in commitment based on their union experiences and demographic characteristics. Résumé Les études traitant de la loyatué qu'éprouvent les membres envers leur syndicats examinent généralement des syndicats importants au sein d'entreprises de taille. La présente étude offre un modèle conceptuel et les données relatives aux divers aspects de la loyauté exprimée par des individus appartenant à de petites unités de négociations. Les résultats démontrent les différences de loyauté chez les membres selon leur experience syndicale et les caractéristiques démographiques.     

Hierarchy vs. partnership

Simple organizations, composed of operatives and one manager, may be organized as a hierarchy with the manager appropriating all profits or as a partnership with (say) equal shares of profits. Conditions on profitability and the optimal span of control are analyzed. Next, partnerships are considered and alternative incentives and distributions are compared. When partners are free to choose their time inputs, then a sufficiently high preference for leisure as against income will make a partnership more attractive even though it is less profitable.     

The financial health of voluntary hospitals in interwar Britain

This article re–evaluates the gravity of the financial problems facing British voluntary hospitals in the interwar period. A relational database of statistics on hospital provision, finance (at both current and constant prices), and activity is used to derive consistent sets of hospitals for reporting purposes. The article presents novel analyses of the extent and pattern of hospital surpluses and deficits; of the capital accounts of selected individual hospitals; of trends in hospital expenditure; of the diversification of hospital income, emphasizing the declining importance of traditional philanthropy; and of the effect of these changes on hospital provision and utilization.     

Economics at the FTC: Office Supply Retailers Redux,Healthcare Quality Efficiencies Analysis,and Litigation of an Alleged Get-Rich-Quick Scheme

We discuss in this essay three of the matters on which economists in the Bureau of Economics (BE) at the Federal Trade Commission have worked this past year. BE revisited familiar ground in the first matter, a proposed merger of office supply retailers. The second part of the essay considers efficiency claims in health care mergers, with focus on the acquisition of a physician group by a health care system in Idaho. The final part of the essay discusses empirical work that was undertaken by the Bureau to investigate claims made by marketers of an alleged get-rich-quick scheme.     

Funding Modes of German Banks: Structural Changes and their Implications

We investigate the funding modes of German banks and the implications for lending and profitability during 1992–2002. We find that at many banks, deposits from customers decrease in relative terms while interbank liabilities increase as a source of funding. We cannot detect a negative impact of the relative decline in deposits on lending. The decreasing ability of banks to collect deposits and the substitution of deposits by interbank liabilities unfavorably affects the net interest result of banks that exhibit a deposit deficit, especially savings banks. Our findings indicate a structural lengthening of the intermediation chain, which has broader implications for the functioning and stability of the financial system.     

Real Estate Brokerage Earnings: The Role of Choice of Compensation Scheme

One of the more interesting characteristics about the real estate brokerage industry is that workers are presented with a choice regarding the sort of compensation scheme under which they want to work. An overwhelming majority of workers choose what is referred to as a commission split scheme in which the salesperson splits any commission that they earn with a supervising broker that they generally are required to work under. In this case the firm provides office support and administrative services to the salesperson and, in return, the salesperson must split any commissions that they earn with the firm. Under the alternative compensation scheme, workers pay a substantial up-front “desk” fee to the firm and then are allowed to keep 100% of any commissions that they earn. In spite of the large volume of research on the determinants of real estate salesperson earnings, to our knowledge there are no studies analyzing the choice of compensation scheme and its impact on the earnings of real estate salespersons. This study uses data from the 2001 and 2003 Membership Surveys of the National Association of REALTORs® to analyze the impact of the real estate salespersons’ choice of compensation scheme on their earnings.     

Do foreign institutional investors destabilize China’s A-share markets?

This paper investigates the effect of foreign institutional investors on the stability of Chinese stock markets. Previous literature views this investor group as destabilizing feedback traders. We use the abolition of ownership restrictions on A shares as a natural experiment. There is strong evidence that foreign institutions have a stabilizing effect on Chinese stock markets and contribute to market efficiency. This finding is robust across exchanges, sample periods, size quintiles and alternative model specifications. By contrast, domestic investors appear to engage in positive feedback trading. Our results have important implications for market regulation.