Learning and communication in sender‐receiver games: an econometric investigation

This paper compares stimulus response (SR) and belief‐based learning (BBL) using data from experiments with sender–receiver games. The environment, extensive form games played in a population setting, is novel in the empirical literature on learning in games. Both the SR and BBL models fit the data reasonably well in games where the preferences of senders and receivers are perfectly aligned and where the population history of the senders is known. The test results accept SR and reject BBL in games without population history and in all but one of the games where senders and receivers have different preferences over equilibria. Estimation is challenging since the likelihood function is not globally concave and the data become uninformative about learning once equilibrium is achieved. Copyright © 2002 John Wiley & Sons, Ltd.     

CHANGE–OVER TRIALS WITH BINARY DATA: ESTIMATION

Abstract. Estimation of success rates in the two–period change–over clinical trial with binary responses is considered under a mixed model for the design.     

Pilot CEOs and corporate innovation

We find evidence that chief executive officers’ (CEOs’) hobby of flying airplanes is associated with significantly better innovation outcomes, measured by patents and citations, greater innovation effectiveness, and more diverse and original patents. We rule out alternative explanations, leading us to conclude that CEO pilot credentials capture the personality trait of sensation seeking. Sensation seeking combines risk taking with a desire to pursue novel experiences and has been associated with creativity. Our evidence highlights sensation seeking as a valuable personality trait that can be used to identify CEOs who are likely to drive innovation success.     

Critical human and behavioral factors on the adoption of sustainable supply chain management practices in the context of automobile industry

Built upon the resource-based view, the study examines the critical human and behavioral factors (HBFs) on adopting sustainable supply chain practices in the automobile sector (AS). The Interpretive Structural Modeling (ISM) and Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is applied to understand the causeeffect relationships between (HBFs), evidenced by a case study in the automobile industry of India. The causeeffect relationships are informed by an expert team consisting of 18 members working in academia, the automobile industry, and professional consulting companies. The experts provided their inputs based on their direct experience and expertise in this subject matter. The research findings highlight that sustainable supply chain cost (end to end) is a critical success factor. Mangers in the AS should prioritize and focus on sustainable supply chain costs (end to end) to pursue sustainable practices because such critical success factors can foster information sharing behavior. The firms could develop both hard and soft critical HBFs such as Information technology (IT) infrastructure and employee training to build up HBFs to integrate a supply chain. The study provides insight to academicians, policymakers, and practitioners about critical HBFs and develops sustainability goals and policies accordingly.     

Efficiency of the office properties market

This paper reports the results of an efficient markets test of the Dallas-Fort Worth office properties market. ARIMA models using a comprehensive data set did not produce superior forecasts. The results provide further evidence of the efficiency of real estate markets.     

SPECIAL INTERESTS AND FINANCIAL LIBERALIZATION: THE CASE OF MEXICO

Financial liberalization is often believed to enhance economic growth. Yet in many cases a few powerful incumbents seem to capture most of the gains from the reform. In this paper, I construct a model with endogenous formation of special interest groups that could reap most of the benefits of financial liberalization. In particular, these groups lobby to limit entry by other firms, while taking advantage of improved borrowing opportunities. I then use the model to study the Mexican financial liberalization of 1988. Analysis of firm‐level panel data on manufacturing plants reveals patterns suggested by the model. Specifically, large firms in more concentrated or more corrupt sectors benefit more from liberalization. In addition, domestically owned firms gain more than firms with foreign ownership. I also propose a new way to measure corruption at the industry level based on the Mexican 10% profit sharing rule.     

MEASURING HEALTH INSURANCE BENEFITS: THE CASE OF PEOPLE WITH DISABILITIES

Since 2012, the Congressional Budget Office has included an estimate of the market value of government‐provided health insurance coverage in its measures of household income. We follow this practice for both public and private health insurance to capture the impact of greater access to government‐provided health insurance for working‐age people with disabilities, whose market value rose in 2010 dollars from $11.7 billion in 1980 to $114.3 billion in 2012. We then consider the more general implications of incorporating estimates of the market price of insurance, equivalent to that provided by the government, into policy analyses in a post‐Affordable Care Act world. (JEL D31, H24, I18, J31)     

Commonalities Between Added Value Ratios and Traditional Return on Capital Employed

This paper provides an empirical comparison between two versions of a new accounting ratio devised by Kay and Davis (1990a, 1990b) and Kay (1993) and the traditional capital employed (ROCE) ratio. The new measures, ‘added value on inputs employed’ (AVIE) and ‘added value on net output’ (AVNO), are both based on a version of residual income they label ‘added value’, but differ in choice of scaling variable. Empirical evidence is provided in this paper on AVIE and AVNO, including cross-sectional patterns, distributional properties, sensitivity to alternative specifications, and rank-ordering and serial-correlation performance compared with ROCE. AVIE and AVNO differ markedly from ROCE in terms of absolute levels and account for at most half of the latter's cross-sectional variation. On the other hand, the results indicate that both the rank orderings and rank predictions of the different measures are very similar. The distributional properties of the added value ratios are sensitive to choice of scaling variable, suggesting that considerable care has to be exercised in drawing conclusions from the absolute rankings of these measures. The new added value ratios provide signals about firm rankings that differ only to a limited degree from those rendered by the traditional ROCE ratio.     

The impact of market liberalisation on food security in Zambia

The main elements in agricultural market liberalisation have been the dismantling of the state institutions for marketing and distribution of agricultural produce, the abolition of subsidies, the liberalisation of import and export trade, and the market determination of input and output prices. Economic policy reforms on the monetary, fiscal and other fronts also impinged on the variables influencing production, trade and consumption. This paper highlights some of the undesirable offshoots of the previous policy regime and enumerates the specific policies that have been introduced since 1992. It describes the positive and negative outcomes witnessed so far. Finally, it suggests what needs to be done to eliminate the prevailing major constraints to growth in food production and consumption.