Economic impact of a private sector micro-financing scheme in South Dakota

While poverty rates on Native American Indian reservations are triple the US average. Small business incubation programs, available elsewhere in the US, scarcely exist on the Native American Indian Reservations (NAIRs). Our unique study tests the effects of the Lakota Fund (LF), a private sector small business development initiative on the Pine Ridge Reservation in South Dakota, on the economic development of the NAIRs. Our objective is to determine whether the SBA-like programs (loans, training, and consulting) can improve economic conditions. The 1980–2006 annual county-level (Shannon Co. is ‘treatment,’and Todd Co. is ‘control’) data are a natural experiment. Results indicate that the LF inception and duration significantly raised real per capita income (RPCI)—suggesting not only the success of the LF, but support for the broader notion that privately funded small business initiatives can be used to support economic development of isolated impoverished groups within the US economy.     

The war against drug producers

This paper develops a model of a war against illegal drug producers. This war occurs on two fronts. First, to prevent the cultivation of crops the state engages the drug producers in conflict over the control of land. Second, to impede further the production and exportation of drugs the state attempts to eradicate crops and to interdict drug shipments. The model includes an interested outsider who uses both a stick and a carrot to strengthen the resolve of the state in its war against drug producers. We use numerical calibrations of the model to evaluate the effectiveness and efficiency of Plan Colombia. The authors wish to thank an anonymous referee, Michelle Garfinkel, Jean Hindriks, Carlos Esteban Posada, and Marc St-Pierre for helpful comments and suggestions, as well as seminar participants at Brown, Yale, the CEPR conference on Crime and Conflicts, Marseilles, October 2004, LACEA, San José, November 2004, the AEA meetings, Philadelphia, January 2005, the ESWC, London, August 2005, and Banco de la República. Herschel Grossman died on October 9, 2004 in Marseilles during a conference where we were presenting this paper.     

Learning to lead: Segmentation of attendees to a Christian leadership conference

Christian leadership conferences are religious events in which attendees can improve their leadership skills in their current or potential area of ministry. Despite considerable anecdotal evidence, there is limited empirical research that has determined why attendees are motivated to attend these events and if they can be differentiated based on their personal characteristics and year of event attendance. To address these research gaps, 335 questionnaires were collected at an Australian Christian leadership conference during the 2013 and 2014 events. To better equip me in my current leadership role and to feel encouraged to learn more about God were the two dominant motivations identified by respondents, regardless of the year of data collection. Motivational differences also existed based on respondents' personal characteristics. This study has provided theoretical and practical implications for religious nonprofit organizations relating to these issues and provides future research opportunities.     

Decomposing the effects of financial liberalization: Crises vs. growth

We present a new empirical decomposition of the effects of financial liberalization on economic growth and on the incidence of crises. Our empirical estimates show that the direct effect of financial liberalization on growth by far outweighs the indirect effect via a higher propensity to crisis. We also discuss several models of financial liberalization and growth whose predictions are consistent with our empirical findings.     

Fear and greed: The evolution of double liability in American banking, 1865-1930

This paper examines the pattern and timing of the enactment of double liability for state banks in the United States prior to the Great Depression. Under double liability, shareholders of failing banks could lose, in addition to the initial purchase price of shares, an amount equal to the par value of shares owned. The results suggest that double liability was adopted by states subject to greater economic risks, where bank failures were more likely, or where the economy and banking sector were more advanced and bank failures would be more costly (i.e., fear), and that single liability was adopted by more rapidly growing states, where the payoff to greater risk-taking was higher (i.e., greed).     

Partially overlapping time series: a new model for volatility dynamics in commodity futures

In commodity futures markets, contracts with various delivery dates trade simultaneously. Applied researchers typically discard the majority of the data and form a single time series by choosing only one price observation per day. This strategy precludes a full understanding of these markets and can induce complicated nonlinear dynamics in the data. In this paper, I introduce the partially overlapping time series (POTS) model to model jointly all traded contracts. The POTS model incorporates time‐to‐delivery, storability, seasonality and GARCH effects. I apply the POTS model to corn futures at the Chicago Board of Trade and the results uncover substantial inefficiency associated with delivery on corn futures. The results also support two theories of commodity pricing: the theory of storage and the Samuelson effect. Copyright © 2005 John Wiley & Sons, Ltd.     

Generalized long memory processes,failure of cointegration tests and exchange rate dynamics

This paper presents evidence that the equilibrium relationship in a system of nominal exchange rates is best described as a stationary GARMA process. The implementation of the GARMA methodology helps explain conflicting and puzzling results from the use of linear cointegration and fractional cointegration methods. Furthermore, we use Monte Carlo analysis to document problems with standard cointegration tests when the attraction process is distributed as a long memory GARMA process. Copyright © 2006 John Wiley & Sons, Ltd.     

Commitment before and after: An evaluation and reconceptualization of organizational commitment

A review of the organizational commitment literature has pointed out several advantages as well as some limitations of the approach advanced by Meyer and Allen (Meyer, P.J. and Allen, J.N. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage.). The advantages include good psychometric properties of the current scales, acceptable discriminant validity of the three dimensions, and research findings that showed the usefulness and acceptable content validity of the three-dimensional approach. Some of the limitations are limited predictive validity, conceptual ambiguity of continuance commitment, and concept redundancy between normative and affective commitment. This paper suggests a conceptualization that builds upon the strengths of the current approaches and minimizes their limitations. The proposed theory contends that organizational commitment is two-dimensional. One dimension is instrumental in nature and the second is affective. In addition, a sharp difference needs to be made between commitment propensity that develops before one's entry into the organization and commitment attitudes that develop after one's entry into the organization. The advantages of the suggested theory and its implications for the understanding of organizational commitment and future research on it are discussed.