Impact of high‐growth start‐ups on entrepreneurial environment based on the level of national economic development

In this paper, we examine the relationship between the conditions of the entrepreneurial environment and high‐potential entrepreneurship according to the stage of economic development of the country. A structural equation model was designed based on data from the Global Entrepreneurship Monitor project, which contains information about 62 countries. Our results suggest that economic development and high‐potential entrepreneurship have a greater impact on the entrepreneurial ecosystem than entrepreneurial activity in general—with special effects on government programs, R&D transfer, and access to the domestic market. Notably, the level of influence of sustainable economic development and high‐potential entrepreneurship depends on the level of economic development of the country.     

Optimal Capital Allocation Principles

This article develops a unifying framework for allocating the aggregate capital of a financial firm to its business units. The approach relies on an optimization argument, requiring that the weighted sum of measures for the deviations of the business unit's losses from their respective allocated capitals be minimized. The approach is fair insofar as it requires capital to be close to the risk that necessitates holding it. The approach is additionally very flexible in the sense that different forms of the objective function can reflect alternative definitions of corporate risk tolerance. Owing to this flexibility, the general framework reproduces several capital allocation methods that appear in the literature and allows for alternative interpretations and possible extensions.     

Impatience and Inconsistency in Intertemporal Choice: An Experimental Analysis

In this article the experiment carried out by Takahashi et al. [2009 Takahashi, T., T. Hadzibeganovic, S. A. Cannas, T. Makino, H. Fukui, and S. Kitayama. “Cultural Neuroeconomics of Intertemporal Choice.” Neuroendocrinology Letters, 30, (2009), pp. 185–191.[PubMed], [Web of Science ®] , [Google Scholar]] is replicated to analyze the influence of culture, gender, origin (urban or rural), and socioeconomic level on the impulsivity and consistency of decision-making processes concerning monetary gains and losses. The results indicate that Spanish students show inconsistency, and more impulsivity over gains (i.e., more impatience, as they discount delayed outcomes more rapidly) than do Japanese and American students. Additionally, participants from urban areas show more impatience over gains than do participants from rural ones, women are more impatient than men are over losses, and participants of different socioeconomic levels show differences in their impulsivity parameters.     

Optimal mixed taxation,public goods and the problem of high-skilled emigration

The optimal income tax model under the threat of migration of Simula and Trannoy (J Public Econ 94:163–173, 2010; Soc Choice Welf 39(4):751–782, 2012) is extended to include indirect taxes and public goods. This enables us to conclude that: (1) optimal income tax rates are higher than in the absence of indirect taxation, and may be positive at the top of the skills distribution; (2) indirect taxes, à la Corlett and Hague, may help mitigate the loss of redistributive capacity arising from income taxation caused by migration threats; (3) migration encourages the provision of the public goods preferred by the most productive workers; (4) optimal tax and public goods provision policies against the emigration of the highly-skilled are connected through the conditions for Pareto efficiency; (5) if the number of potential migrators is large, it may be desirable to violate classical tax rules to retain the most able in the home country; (6) when migration costs are exogenously given and utility is weakly separable, Simula and Trannoy’s results are restored; (7) if migration costs are endogenous, the Atkinson and Stiglitz theorem breaks down and the taxation of country-specific goods becomes desirable, even if utility is strongly separable.     

Gaining residents' support for tourism and planning

This research analyses residents' perceptions of the effects of tourism. Economic, cultural and environmental effects are identified as determinants of residents' attitudes towards tourism development and planning. Authors speculate that there are different patterns of resident's support depending on their differential benefits obtained from tourism. A conceptual model is developed and empirically tested in Santiponce, a small community in southern Spain. Our results support our basic hypothesis: resident's level of personal benefits obtained from tourism influence their perceptions regarding tourism impacts, and in consequence, their support for tourism development and for tourism planning. Copyright © 2007 John Wiley & Sons, Ltd.     

The Simple Analytics of a Pooled Annuity Fund

This article provides a formal analysis of payout adjustments from a longevity risk‐pooling fund, an arrangement we refer to as group self‐annuitization (GSA). The distinguishing risk diffusion characteristic of GSAs in the family of longevity insurance instruments is that the annuitants bear their systematic risk, but the pool shares idiosyncratic risk. This obviates the need for an insurance company, although such instruments could be sold through a corporate insurer. We begin by deriving the payout adjustment for a single entry group with a single annuity factor and constant expectations. We then show that under weak requirements a unique solution to payout paths exists when multiple cohorts combine into a single pool. This relies on the harmonic mean of the ratio of realized to expected survivorship rates across cohorts. The case of evolving expectations is also analyzed. In all cases, we demonstrate that the periodic‐benefit payment in a pooled annuity fund is determined based on the previous payment adjusted for any deviations in mortality and interest from expectations. GSA may have considerable appeal in countries which have adopted national defined contribution schemes and/or in which the life insurance industry is noncompetitive or poorly developed.     

Experimenting to Learn about Demand in Duopoly with Forward‐Looking Consumers

Using a two‐period model, I show that competition between two symmetric duopolists trying to learn about unknown features of demand results in an informationally suboptimal process. Because a firm’s marginal return to price experimentation equals zero if the rival’s price is matched in the first period, myopic symmetric pricing arises in equilibrium even though a firm’s expected second‐period profit attains a local minimum. Furthermore, forward‐looking consumers suffer from ratcheting because their first‐period purchase decisions partly reveal their preferences, which exacerbates the informational suboptimality of the firms’ experimentation process without affecting their pricing. The role of firm asymmetries is also analyzed.     

Carrying capacity assessment for tourist destinations. Methodology for the creation of synthetic indicators applied in a coastal area

The growth and expansion of tourism is a complex phenomenon and its study requires multiple disciplines. When related to sustainability, the growth limits and carrying capacity of destinations must also be considered. The objective of this article is to develop a methodology to assess the growth limits of tourist destinations, and this method is then applied to the management and planning of an open tourist resort. The limits to growth are established using a mathematical formulation (i.e., multicriteria analyses, based on the reference point methodology) based on synthetic indicators applied to two scenarios: weak and strong sustainability. There are two developments in this type of research. The first is that the application of this method is neither restricted to a natural protected area, which has its own rules and management, nor to an island possessing geographically controlled entry and exit points. Rather, this study focuses on an open coastal area with an economy based on mass tourism. Second, this new way of assessing growth limits uses a flexible formula – adaptable to other coastal areas, e.g., rural, natural, and urban – depending on the impacts generated by the tourism and the objectives specified by destination managers.     

Impacts of peers’ unethical behavior on employees’ ethical intention: Moderated mediation by Machiavellian orientation

Research suggests a direct negative relationship between peers’ unethical behavior and employees’ ethical intention. But several possible mechanisms might explain this relationship in more detail. For example, Machiavellianism is a personality trait characterized by interpersonal manipulation and the use of unethical means to achieve certain self‐interested ends, whether useful or pleasant. This article adopts an Aristotelian understanding of philia, related to three goods on which human relationships rest: useful, pleasant, and honest. We propose that Machiavellianism, a self‐interested, pragmatic personality orientation, might explicate the relationship between peers’ unethical behavior and ethical intention. The results of a structural equation model applied to a sample of 436 banking employees in Spain reveals that Machiavellianism partially mediates the relationship between peers’ unethical behavior and employees’ ethical intention. We also find that with a greater level of peers’ unethical behavior, the negative effect of Machiavellianism on ethical intention increases, and that when peers’ unethical behavior is nonexistent, the negative effect of Machiavellianism on ethical intention disappears. These findings advance current literature by revealing that unethical peers can indirectly influence ethical intention, through shaping Machiavellianism. Our study is also the first to show that pairing high Machiavellians with ethical peers can help to cancel out the negative influence of Machiavellianism on ethical intention.     

Counterfactual inference for consumer choice across many product categories

Quantitative Marketing and Economics - This paper proposes a method for estimating consumer preferences among discrete choices, where the consumer chooses at most one product in a category, but...