Commitment and the adoption of a common currency*

In contrast to Mundell's inquiry on the optimality of currency areas, this article aims to understand under what circumstances a Pareto‐dominant monetary union will be established. Using a multicountry overlapping generations model, we highlight gains from monetary union arising from reduced transactions costs and lower inflation. Despite these gains, countries acting independently will impose barriers to exchange through local currency restrictions, thereby creating transactions costs and providing an incentive for inflation. Therefore, the gains from monetary union are most likely to be lost without collective effort.     

Capital indivisibility and tax competition: Are there too many business areas when some of them are empty?

In this paper, we propose a model where local jurisdictions must engage a development cost before competing for hosting a firm with uncertain preferences among possible sites. We first show that even an optimizing central planner managing all the jurisdictions develops more sites than there are plants to host. Doing so, he diversifies his supply and has a higher probability of hosting the firm. Then, we show that, if every jurisdiction is managed by a local government, there are more developed sites than with the central planner, which implies excess supply.     

Which HRM practices enhance employee outcomes at work across the life-span?

Abstract

Based on the social exchange theory and on ageing and life-span theories, this paper aims to examine: (1) the relationships between perceived availability and use of HRM practices, and employee outcomes (i.e. work engagement and employability); and (2) how employee age moderates these relationships. Using a sample of Nmaximum = 1589 employees, correlational analyses and multiple hierarchical regression analyses were conducted. First, confirming our hypotheses, results showed predominantly positive relationships between work engagement and both perceived availability and use of development HRM practices, such as HRM practices related to learning, development, and incorporating new tasks. The study outcomes opposed, however, our hypotheses with predominantly negative relationships between work engagement and perceived availability and use of maintenance HRM practices. Predominantly positive relationships were furthermore found, as was hypothesized, between employability and perceived availability and use of development as well as maintenance HRM practices. Generally speaking, these results were not more pronounced for any of the age groups. That is, age appeared to not play any significant moderating role. Research limitations, implications for practice and directions for future work are also discussed.     

The role of coworker support in the relationship between moral efficacy and voice behavior: The case of hospitality students in Ecuador

ABSTRACT

This article explores the relationships among employee moral efficacy, coworker emotional support, coworker instrumental support, and employee voice behavior regarding abusive supervision in the hospitality industry in Ecuador: a high power distance culture. The results indicate that employees’ moral efficacy predicted their voice behavior with regards to abusive supervision and that coworker emotional support strengthened this relation. However, an interaction effect between moral efficacy and coworker instrumental support on voice behavior was not found. This study provides a theoretical extension of the voice literature by introducing the roles of moral efficacy and coworker support, and has practical implications for the hospitality workplace.     

Who drives climate-relevant policies in the rising powers?

The future of human life on our planet is influenced increasingly by what goes on in the rising powers. This paper provides a political economy analysis of the climate-relevant policies of China, India, Brazil and South Africa. It shows that alliances play a key role in driving such policies. However, most actors who support such policies have priorities other than climate change mitigation. Their support for such policies comes from concerns with securing energy, building competitive green industries, creating jobs or providing a basis for future public revenue. This insight is not just of analytical but also of political importance. It means that climate-relevant policies can draw on support from a wide constituency – not just those with green convictions. Such analysis provides the stepping-stone for understanding the political feasibility of low-carbon transformations.