Land Invasions,Insecure Property Rights and Production Decisions

This paper investigates empirically the effect of land invasions on farm production decisions. The main hypothesis is that more invasions in a region are associated with lower investment, and in particular a bias towards annual crops as opposed to long‐term crops. We use a county‐level dataset for the state of Paraná, Brazil, from 2003 to 2007, with 1,995 observations. The panel data structure allows us to control for fixed effects, such as the formalisation of land titles and land concentration, which might be correlated with the intensity of invasions. An instrumental variable fixed effects model was estimated to avoid other sources of bias. Our main finding is that land invasions are associated with lower long‐term crop production and a higher percentage of annual crops, which could accelerate land degradation, and undermine environmental sustainability.     

Dividends from unrealized earnings and default risk

Review of Accounting Studies - Using hand-collected data on Israeli firms’ unrealized earnings and debt restructurings following adoption of the International Financial Reporting Standards...     

The positive externalities of IFRS R&D capitalization: enhanced voluntary disclosure

Studies comparing IFRS with U.S. GAAP generally focus on differences in the attributes and consequences of the recognized financial items. We, in contrast, focus on voluntary disclosure resulting from arguably the most significant difference between IFRS and GAAP: the capitalization of development costs—the “D” of R&D—required by IFRS but prohibited by GAAP. Using a sample of Israeli high-technology and science-based firms, some using IFRS and others U.S. GAAP, we document a significant externality of IFRS development cost capitalization in the form of extensive voluntary disclosure of forward?looking information on product pipeline development and its expected consequences. We show that this disclosure is value-relevant over and above the mandated financial information, including the capitalized R&D asset. We also show that the capitalized development costs (an asset) is highly significant in relation to stock prices, and enhances the relevance of the voluntary disclosures.     

Are voters rationally ignorant? An empirical study of Portuguese local elections

The application of the rational choice postulate to a political context invariably leads to the conclusion that most voters are ill informed when making the decision on whom to vote for. In this paper, the authors conduct an empirical evaluation of the rational ignorance theory, based on the model developed by (Rogoff and Sibert Rev Econ Stud LV:1–16, (1988) and by considering that better informed voters reward political candidates who show better performances. The levels of performance are established through the construction of an empirical frontier using the Data Envelopment Analysis (DEA) methodology. According to our results, based on the 1997 Portuguese local elections, even though swing voters do not necessarily behave as rationally ignorant voters, a large majority of voters are rationally ignorant.

Genuine Wealth Per Capita as a Measure of Sustainability and the Negative Impact of Corruption on Sustainable Growth in Sub‐Sahara Africa

In this paper, we argue that the answer to the question of whether the impact of corruption on development is homogenous, is no. Our optimism rest on how development may be conceptualised. When equated to a narrow measure in economic‐wise which fundamentally ignores critical issues, then there is a possibility the outlook could be positive. But when conceptualised using a broad‐based approach such as sustainable development, then the outlook could be negative. We assess a panel of 22 economies in Sub‐Sahara Africa with the most recent dataset (1996–2013) from the World Bank and other reputable agencies. Our finding is quite robust. It holds in pooled OLS, Fixed effects and GMM within IV settings; and it also holds for different measures of institutions and different measures of development using growth per capita GDP and genuine wealth per capita, respectively. Taking stock of major policy blue‐prints of selected countries in the region on the fight against corruption, we are able to point out that institutions play important role in insulating citizens against the devastation caused by corruption. Overall, through this comparison, we are able to signal that both incidental and systematic corruption poses a long‐term threat to sustainable development.     

A Façade of Collaboration

Abstract

The study presented in this article examined the relationship between philanthropic foundations (PFs) and the government in social policy-making. The Yaniv Project, which aimed to establish collaboration between PFs and the Israeli government in the field of children and youth at risk in Israel, is analysed as a case in point. The findings reveal that the collaboration that emerged was ceremonial and symbolic. The government and the PFs perceived the collaboration more as a technical means of achieving their own goals and gaining control than as a relationship that benefits both parties. The article discusses the implications of those relationships for PFs and the government.     

Customer‐oriented employees: Blessing or curse for firms?

I investigate whether the presence of customer‐oriented employees benefits firms in a competitive environment. Employees are defined as customer‐oriented if they are interested not only in their wage but also in the well‐being of their customers. I find that firms may obtain higher profits by hiring self‐interested rather than customer‐oriented employees. This is because the employees' customer orientation has opposing effects on the profits obtained by the firms. On the one hand, customer‐oriented employees provide a given level of quality for a lower wage. On the other hand, the employees' customer orientation increases competition reducing prices. If the second effect dominates, firms find themselves trapped in a prisoners' dilemma as the strategy of hiring self‐interested employees is strictly dominated by that of hiring customer‐oriented employees. Hence, the very presence of customer‐oriented employees may hurt firms. If motivated employees are merely interested in the quality of the good provided, the effect on the price outlined before disappears.     

Innovation activity in the hotel industry: Evidence from Balearic Islands

The paper provides empirical evidence on technological activity in the Spanish service sector, in particular for the tourist accommodation in the Balearics. The study wants to fulfil the lack of analyses in the field of tourism. Commonly, the study of innovation activity has been carried out from a manufacture perspective, for that reason the paper discusses the precise definition of innovation in accommodation services. The data refer to a large representative sample of hotels in Balearic Islands (Spain), providing a homogeneous set of information. The results show as higher-categories hotels are more innovative than lower-categories hotels; an aggregated measure of technological innovation presents a rate over the average for hotels that belong to a chain, and that for hotels under management contract. Half of innovative companies adjust the human capital skills and abilities. The hotel industry is a supplier-driven sector that innovates introducing R&D embodied technology rather than undertaking internal R&D activities.     

Erroneous detection of nonuniform DIF using the Breslow-Day test in a short test

This paper studies the Type I error rate obtained using the Breslow-Day (BD) test to detect Nonuniform Differential Item Functioning (NUDIF) in a short test when the average ability of one group is significantly higher than that of the other. The performance is compared with the logistic regression (LR) and the standard Mantel-Haenszel procedure (MH). Responses to a 20-item test were simulated without Differential Item Functioning (DIF) according to the three-parameter logistic model. The manipulated factors were sample size and item parameters. The design yielded 40 conditions that were replicated 50 times and the false positive rate at a 5% significance level obtained with the three methods was recorded for each condition. In most cases, BD performed better than LR and MH in terms of proneness to Type I error. With the BD test, the Type I error rate was similar to the nominal one when the item with the highest discrimination and difficulty parameters in the case of equally sized groups was excluded from the goodness-of-fit to the binomial distribution (number of false positives among the fifty replications of a Bernoulli variable with parameter equal to 0.05).