Dependence is dead,long live dependence and the class struggle: An answer to critics

The philosophers have only interpreted the world in various ways; the point, however, is to change it. —Karl Marx, Theses on Feurbach.The mark of an important contribution, whether in the hard or the social sciences, is not that it reveals some eternal truth. It is, rather, that existing knowledge and analysis are put together in new ways, raising questions and offering conclusions which allow and force friends and enemies alike to push their own research and analysis into different areas. —Doug Dowd, refering to C. Wright Mills.For social scientist it is a sobering and useful exercise in self-understanding to attempt to see clearly how the direction of our scientific exertions, particularly in economics, is conditioned by the society in which we live, and most directly by the political climate (which, in turn, is related to all other changes in society). Rarely if ever, has the development of economics by its own force blazed the way to new perspectives. The cue to the continual reorientation of our work has normally come from the sphere of politics. Responding to the cue, students turn to research on issues that have attained political importance … So it has always been. The major recasting of economic thought .... were all responses to changing political conditions and opportunities. —Gunnar Myrdal, in Asian Drama.     

Coping with sales call anxiety: The role of sale perseverance and task concentration strategies

The authors study how salespeople cope with social anxiety during customer contacts and find that two tactics, sale perseverance and task concentration, ultimately reduce dysfunctional protective actions. Both coping tactics, however, are differentially moderated by strength of felt physiological sensations and strength of negative expectations and thoughts. Salespeople experiencing anxiety cognitions should distract themselves by concentrating on their task to free up their thinking in relation to the task at hand. Engaging in behaviors to modify the situation by persevering on the sale, on the other hand, occupies action space and should be the coping strategy of choice for those salespeople confronting physiological sensations in relation to felt anxiety. Hypotheses are tested on a sample of 171 salespersons. Frank Belschak (f.d.belschak@uva.nl) is an assistant professor of marketing and organizational behavior in the Business School at the University of Amsterdam, the Netherlands. He received his PhD from the University of Cologne in Germany. His current research interests include personal selling, emotions, and emotion regulation in organizations and across cultures. Willem Verbeke (verbeke@few.eur.nl) is a chaired professor of sales and account management at Erasmus University in Rotterdam, the Netherlands. He received his PhD from the University of Pennsylvania. His area of research interests includes personal selling, sales management, emotions and emotion regulation, and knowledge management. Richard P. Bagozzi (bagozzi@umich.edu) is a professor of marketing in the Ross School of Business and a professor of social and administrative sciences in the College of Pharmacy at the University of Michigan. He received his PhD from Northwestern University. He conducts research on human emotions, the theory of action, goal setting and goal striving, and structural equation methods.     

Micro-dispersion of performance across industry lines

Classical industrial organization suggests that profitability differences are caused by industry-specific factors. Revisionist and managerial approaches, however, are stressing the predominant importance of firm-specific factors. Empirical evidence is more pronounced for firm-related factors, but recent inquiry also found support for the superiority of industry effects. The present paper examines the discriminating power of the industry variable to separate a German firm sample into homogeneous industry subgroups. The finding is that the industry does not have a significant influence on the dispersion of firm profit rates. Thus, the firm-effect approach to profitability is corroborated.     

Option Pricing With V. G. Martingale Components1

European call options are priced when the uncertainty driving the stock price follows the V. G. stochastic process (Madan and Seneta 1990). the incomplete markets equilibrium change of measure is approximated and identified using the log return mean, variance, and kurtosis. an exact equilibrium interpretation is also provided, allowing inference about relative risk aversion coefficients from option prices. Relative to Black-Scholes, V. G. option values are higher, particularly so for out of the money options with long maturity on stocks with high means, low variances, and high kurtosis.     

Henry George's Theory of State's Agenda: The Origins of His Ideas on Economic Policy in Adam Smith's Moral Theory

Abstract . The tension between Henry George's reformism and his laissezfaire liberalism was resolved through a system of natural liberty George derived from the relation between Adam Smith's ethics and economics. Crucial for George's nonutilitarian philosophy of government was the interdependence between the moral sense (sympathy) and the prevailing socioeconomic order. In the appropriate institutional environment, the role of the government was diminished since the pervasive moral sense insured justice by monitoring the individual's pursuit of economic self-interest. In contrast, a defective socio economic order required government intervention. For example, land monopoly and the maldistribution of income undermined the role of sympathy, promoted excessive self interest and the breakdown of the system of natural liberty. Government action through the single tax eliminated the “fear of want,” restored an operative moral sense and guaranteed justice in society. Under these conditions, government can provide additional services for a growing society without being susceptible to “corrupt and tyrannous” behavior.