Further Evidence on the Labor Market Effects of Addiction: Chronic Drug Use and Employment in Metropolitan Miami

This study used data collected from 1996 to 1997 in low-income and high-crime neighborhoods in Miami, Florida, to analyze the effects of chronic drug use on employment. Given the significant gender differences in substance use patterns and labor market behavior, separate models were estimated for males and females. The analysis estimated univariate probit models of employment and bivariate probit models that allow for possible correlation among missing or unobserved determinants of drug use and employment. The key finding was that regardless of gender and specification, chronic drug use significantly reduced the probability of being employed. (JEL I12 , J22 , J24 )     

BUBBLES IN EXCHANGE RATES AND MONETARY POLICY

We evaluate the macroeconomic performance of different monetary policy rules when there are bubbles in the exchange rate. We do this in the context of a non‐linear rational expectations model. The exchange rate is allowed to deviate from its fundamental value and the persistence of the deviation is modeled as a Markov switching process. Our results suggest that reacting to exchange rate movements does not significantly improve welfare. However, taking into account the switching nature of the economy may be more beneficial.     

LINKING STRATEGY,STRUCTURE, PROCESS,AND PERFORMANCE IN INTEGRATED LOGISTICS

The current research was undertaken to present and test a framework of supply chain logistics integration that synthesizes current logistics thought with an established theory of organizational design. The framework portrays performance as an outcome of appropriate alignment between strategy, structure, and processes. The results support the contention that a firm that pursues a relational strategy, develops information and measurement structures to support relational processes, and then uses these tools to implement and execute integrated operations will experience high levels of logistical performance. In addition, the results indicate that superior logistics performance is related to simultaneous integration of internal and external operational processes.     

Asymmetric information about workers' productivity as a cause for inefficient long working hours

In this paper, a model of labor contracting with asymmetric information is developed in order to explain the existence of inefficient long working hours. Since firms cannot observe workers' true productivity, they use long working hours as a mechanism to sort productive workers. The model therefore predicts that workers with a high productivity will tend to work inefficient long hours. An empirical analysis confirms this prediction: high-productivity workers are more likely to experience hours constraints in the form of overemployment than low-productivity workers. Moreover, the extent of overemployment is positively related to productivity.     

Banking Relationships and Syndicated Loans during the 2008 Financial Crisis

The research shows that banking relationships are important to lending. However, few studies focus on the banking relationships in syndicated loans, although these loans have became a major source of financing. The last financial crisis clearly shows the impacts of credit rationing and tightening credit conditions, even in the syndicated loans market. We investigate whether banking relationships help firms to benefit from better terms for syndicated loans in a chaotic financial environment. Using a sample of syndicated loans arranged from 2003 to 2008 in North America and Europe, we find that firms with a previously developed relationship with a lead bank obtained a lower spread and a longer maturity during the financial crisis but did not benefit from larger loan facilities.     

The Land Use Impacts of the EU Biodiesel Policy: Assessing the Direct,Indirect and Induced Effects

This paper deals with the controversial measure of indirect land use changes of the European biodiesel policy. Two studies sponsored by the European Commission find significant, but contrasted, land use impacts for the different vegetable oils used for biodiesel production. The first study uses an aggregate computable general equilibrium model capturing direct, indirect and induced effects. The second more recent study uses a biotechnical partial equilibrium model providing a detailed representation of the indirect effects occurring through the livestock sectors. We develop an original economic emulator to understand the diverging key results of these studies and test their sensitivity. We find that the direct and indirect effects on vegetable oil and land markets explain most of the differences. We also find that indirect effects on the feed markets and the induced effects have less influence on the biodiesel results. We finally argue that the development of emulators as done here can help to understand complex policy assessments.     

Interculturality as a source of organisational positivity in expatriate work teams: An exploratory study

This study explored the issues related to interculturality and organisational positivity in culturally diverse teams (CDTs). The findings showed that interculturality in the expatriate settings of the Arabian Gulf is linked to organisational positivity, the manifestations of which include enjoyment, relationship building through concerted efforts to learn about others, and family‐like work environments. Interculturality‐driven organisational positivity is posited to encourage humanistic management, the attributes of which are sensitivity to human suffering, open‐mindedness, fairness, and respect. Organisational positivity is also theorised to improve CDT performance and stimulate professional and personal learning. Theoretical and practical implications of the findings are discussed.     

Influence of virtual communities in purchasing decisions: The participants' perspective

This study intended to fill some gaps in knowledge about virtual communities and their influence on consumers' purchasing decisions. A Brazilian Orkut community, whose central theme is preparing for wedding ceremonies, was investigated to reveal relationships among members and group influences on purchasing decisions. Twenty-one interviews were conducted by telephone. Results unveil a basic code of conduct, suggesting that the community can also act as a normative reference group, with strong identification among participants. Although the central interest – the wedding ceremony and party – could be considered as episodic, many members actively stay in the community after being married, just to help others. Group leaders seemed to be active participants, those with more experience with products related to the group's interests, or those perceived as having refined tastes. There was evidence that purchasing intentions and behavior can be altered as a result of interactions among members.     

Reducing estimation risk in optimal portfolio selection when short sales are allowed

The issue of estimation risk is of particular interest to the decision‐making processes of portfolio managers who use long–short investment strategies. Accordingly, our paper explores the question of whether a VaR constraint reduces estimation risk when short sales are allowed. We find that such a constraint notably decreases errors in estimates of the expected return, standard deviation, and VaR of optimal portfolios. Furthermore, optimal portfolios in the presence of the constraint are substantially closer to the ‘true’ efficient frontier than those in its absence. Finally, we provide VaR bounds and confidence levels for the constraint that lead to the best out‐of‐sample performance. Copyright © 2008 John Wiley & Sons, Ltd.     

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

The rise of e‐commerce over the past 20 years has created an increased need for responsive omnichannel distribution to meet the last mile challenge. Some companies are experimenting with the use of the sharing economy business model to augment distribution strategies. The use of so‐called “Crowdsourced Logistics” (CSL) is becoming more prevalent in practice, but the role in logistics strategy of this new phenomenon has not been thoroughly investigated and understood. Using a contingency theory lens, this research contributes a nascent understanding of how CSL performs in terms of logistics effectiveness by simulating same‐day delivery services from a distribution center to 1,000 customer locations throughout New York City under dynamic market conditions and by comparing the results to those of a traditional dedicated fleet of delivery drivers. The findings are analyzed to suggest how firms may find strategic benefit using CSL. An agenda for future research is provided to explore these strategic implications and to deepen knowledge about the CSL phenomenon.