Simplified Implementation of the Heckman Estimator of the Dynamic Probit Model and a Comparison with Alternative Estimators*

This paper presents a convenient shortcut method for implementing the Heckman estimator of the dynamic random effects probit model and other dynamic nonlinear panel data models using standard software. It then compares the estimators proposed by Heckman, Orme and Wooldridge, based on three alternative approximations, first in an empirical model for the probability of unemployment and then in a set of simulation experiments. The results indicate that none of the three estimators dominates the other two in all cases. In most cases, all three estimators display satisfactory performance, except when the number of time periods is very small.     

A Meta-Analysis of Achievement Motivation Differences between Entrepreneurs and Managers*

As a result of conflicting conclusions in primary studies, most narrative reviews have questioned the role of personality in explaining entrepreneurial behavior. We examine one stream of this research by conducting a meta-analysis of studies that contrast the achievement motivation of entrepreneurs and managers. The results indicate that entrepreneurs exhibit higher achievement motivation than managers and that these differences are influenced by the entrepreneur's venture goals, by the use of U.S. or foreign samples, and, to a less clear extent, by projective or objective instrumentation. Moreover, when the analysis is restricted to venture founders, the difference between entrepreneurs and managers on achievement motivation is substantially larger and the credibility intervals do not include zero.     

The international debt situation and North-South relations

The paper analyses the debt problem and possible solutions from the perspective of the major interests involved. It is shown that the emergence of a negative basic transfer — with resources flowing from South to North — is an inevitable consequence of heavy borrowing and high interest rates. In such a situation, borrowing countries are likely to consider a variety of default options. The banks, and major financial centres, have a strong interest in avoiding 100% default. Consequently, each of the powerful interests needs an alternative solution. Any lasting solution would need to reverse the negative basic transfer, and reduce the net present value of debt. Proposed solutions are discussed in the light of these requirements. Finally, the paper provides some statistical evidence on the bargaining position of different borrowing countries.