The employment dynamics of different population groups over the business cycle

We examine differences in employment dynamics across population groups using Bayesian vector autoregressions. We document that groups who are particularly strongly affected by business-cycle fluctuations (males, young people, non-whites, the less educated, and workers in blue-collar occupations) also tend to be affected early in the build-up of a boom or bust. We further identify the drivers of the different cyclicalities across population groups. Supply shocks seem to be most important for the heterogeneous employment fluctuations and particularly for the early effects of recessions and booms on the most affected groups. Dynamics in sectoral activity and in hiring rates can help to understand our findings.     

Consumer Standards as a Strategic Device to Mitigate Ratchet Effects in Dynamic Regulation

Strategic delegation to an independent regulator with a pure consumer standard improves dynamic regulation by mitigating ratchet effects associated with short‐term contracting. A pure consumer standard alleviates the regulator's myopic temptation to raise output after learning the firm is inefficient. Anticipating this tougher regulatory behavior, efficient firms find it less attractive to exaggerate costs. This reduces the need for long‐term rents and mitigates ratchet effects. A welfare standard biased toward consumers entails, however, allocative costs arising from partial separation of the firms' cost types. A trade‐off results, which favors strategic delegation when efficient firms are relatively likely.     

Accessibility of Computer-based Simulation Models in Inherently Conflict-Laden Negotiations

The use of computer-based simulation models has a long history in areas such as environmental planning and policy-making, and particularly in water management. Policy making in these areas is often characterized by inherent conflict among diverse stakeholders with divergent interests. Although simulation models have been shown to be helpful for such problems, they are typically under the control of a technical analyst or governmental agency and are not available to negotiators in real time. Recent trends in computer technology and user expectations raise the possibility of real-time, user-controlled models for supporting negotiation. But is such accessibility likely to be helpful? This study used a "compressed" longitudinal experiment to investigate the impacts of different scenarios of accessibility of computer-based simulation models. The task was based on a real-life problem in Colorado River water management. Results revealed no significant differences among conditions for either solution quality or satisfaction. These results suggest that the common notion of "more is better" may be inappropriate, and resources for improving computer support of negotiation might best be focused elsewhere.     

“Small” Lies, Big Trouble: The Unfortunate Consequences of Résumé Padding, from Janet Cooke to George O'Leary

Lying and dysfunctional impression management have been identified as two serious forms of deviant behavior in organizations. One manifestation of such behavior is distortion of one's résumé. In 1981, Janet Cooke lost American journalism's highest honor, the Pulitzer Prize, and her job when her work was exposed as a hoax. The revelation surfaced after it was discovered that she had lied on her résumé and her biographical record. Twenty years later, football coach George O'Leary resigned from one of the most coveted jobs in college sports when it was discovered that he had falsified his academic and athletic accomplishments decades earlier. This paper summarizes the two cases — their similarities and differences — and places them in the context of organizational deviance. The case studies provide discussion points, practical advice and instructional material for students in business ethics and management classes. Lessons include the importance of preparing accurate, unvarnished résumés and the morally bankrupt nature of allegedly minor distortions that can later cause huge trouble for the individuals and the institutions involved.     

Cellular phones in Mozambique: Who has them and who doesn't?

Cellular phones are considered one of the success stories of contemporary technology diffusion: there are three billion cellular telephones globally, and just over six billion people. This article describes the distributional boundary of the cellular telephone enterprise, as we see it in data from Mozambique. A telephone survey of mobile phone users there revealed that men outnumbered women, especially at higher levels of service and that most were urban, with a particular concentration in the capital city. Thus while pre-paid telephone plans have made basic cellular service affordable to many Mozambicans, the lack of rural infrastructure stills puts access out of the reach of a majority. In addition, pre-paid users pay more per minute for their service—probably not a fair situation for the poor families that tend to take this route to telecommunications.     

On the (de)stabilizing effects of news shocks

This paper shows that news shocks amplify macroeconomic volatility in any purely forward-looking model, whereas results are ambiguous when including a backward-looking component. We also investigate numerically the volatility effects of news shocks within the Smets and Wouters (2003) model.     

Innovative international strategies

The analysis of practitioners’ narratives in four industries—cables and wires, paint, footwear chocolate, and sugar confectionery—shows that innovative international strategies drive the dynamics of international competition. The four industry case studies suggest an empirical classification of innovative international strategies based on four main dimensions: nature of the firm’s competitive advantage, process of internationalization, segment scope, and level of coordination across borders. From these dimensions derive six types of innovative international strategies that change the rules of competition. The findings support a proactive view of economic development and strategic management. This framework can inspire decision makers in charge of crafting consistent and effective international strategies, as it shows that strategic choice can transform industry structure.     

An institutional perspective of public policy and network effects in the renewable energy industry: enablers or disablers of entrepreneurial behaviour and innovation?

This study extends theory on the effects of public policies stimulating technology demand and of industry network ties on firm-level entrepreneurial behaviour. We take an institutional perspective to develop a theoretical model examining the mechanisms through which public policies, regulatory uncertainty, and industry network ties affect firm-level entrepreneurial decision-making processes and the ability to introduce highly innovative products and to sustain superior performance. We focus on firm-level effects, which enables the study of the tension between institutional pressures of homogeneity and competitive pressures of heterogeneity for entrepreneurial decision-making processes in environments characterized by policy-induced market demands. To test our hypotheses, we draw on data from a large-scale survey among German renewable energy firms. Our results show that public policies can constrain firm innovativeness and risk-taking behaviour because they steer firms towards a more conservative attitude and discourage the pursuit of high-risk innovation projects. However, firms can counteract these influences and enhance their innovativeness by maintaining close network ties with research associations as we find that innovativeness and a highly innovative product portfolio are key success factors. In summary, these findings provide important implications for the study of public policy effects, industry network ties and entrepreneurial behaviour.     

Energiewende und Übertragungsnetzausbau: Sind Erdkabel ein Instrument zur Steigerung der gesellschaftlichen Akzeptanz des Leitungsbaus? Eine empirische Untersuchung auf Basis der Kontingenten Bewertungsmethode

Transmission network development has led to protests throughout Germany. Many studies present underground cables as a means to increase public agreement to transmission line construction and network development. This paper verifies this thesis analyzing the willingness-to-pay of private households for underground cable employment, which allows for a distinct analysis of strategic behavior and opportunity costs that is omitted in classic questionnaire designs. The results of a contingent valuation study conducted in November and December 2012 in four regions of Germany, which are affected by transmission line development in different ways, are presented. At first glance, an analysis of 1.003 household responses confirms common findings with a majority of households favoring underground cables (about 60 %), albeit preferences vary strongly between sample regions. Willingness-to-pay, however, relativizes this result. A near share of 50 % of households voting for underground cables is not willing to accept an increase in electricity prices to finance respective projects (free riders). The fact that positive willingness-to-pay does not correlate positively with increasing lengths of underground cables in 60 % of cases underlines that underground cables are not supported unconditionally. All-in-all, a flat public approval of underground cable technology cannot be presumed based on WTP-evaluation. Preferences about underground cables and corresponding WTP are explained with demographic characteristics and attitudes using regression models. Fundamental thoughts on energy- and environmental policies do not serve to explain responses. Instead, regional factors and subjective opinions on how to finance such kind of infrastructure measures influence preferences for underground cables.