Reconsidering social capital: a latent class approach

Social capital has proven to be a useful concept, but has not been well-measured in the economics literature. We motivate and demonstrate the application of latent class models to measure social capital, based on the idea that social capital is an unobservable multidimensional construct. We explain and show the construction of latent classes that measure an individual’s social capital using data from the General Social Survey. Our method generates meaningfully different conclusions about the accumulation of social capital than those obtained by previous research. We present evidence that higher income influences social capital accumulation because of a higher opportunity cost of time. We also find evidence of complementarities in social capital accumulation within an individual’s peer group. Finally, we show that community heterogeneity influences the likelihood that individuals adhere to certain social norms independent of their propensity to participate in voluntary organizations.     

Partner nationality, market-focus and IJV performance: A contingent approach

This study examines how Taiwanese firms engaging in various types of international joint ventures (IJVs) have performed in China, and how different types of market-focus affect IJVs’ performance. Based on the IJV classification scheme suggested by [Makino S., & Beamish P. W. (1998). Performance and survival of joint ventures with non-conventional ownership structures. Journal of International Business Studies, 29(4): 797–818], this study outlines and examines three categories of IJVs, according to partner nationality: Taiwan-Taiwan (T-T) JVs, Taiwan-Local (T-L) (China) JVs, and Taiwan-Foreign (T-F) (third-country) JVs. We propose two hypotheses, with associated sub-hypotheses, to examine the major effects of partner nationality on performance, as well as the moderating effects of local market-focus on the relationship between partner nationality and performance. Through the analysis of 236 Taiwanese JVs in China, we find that (1) T-L JVs perform better than T-T JVs and T-F JVs; (2) T-L JVs focusing on the local market do not perform better than those focusing on foreign markets; and (3) T-F JVs focusing on foreign markets perform better than those focusing on the local market.     

Medication adherence and discontinuation of long-acting injectable versus oral antipsychotics in patients with schizophrenia or bipolar disorder

Aims: To examine medication adherence and discontinuation in two separate groups of patients with schizophrenia or bipolar disorder (BD), who began receiving a long-acting injectable antipsychotic (LAI) versus those who changed to a different oral antipsychotic monotherapy.

Materials and methods: The Truven Health Analytics MarketScan Multi-State Medicaid claims database was used to identify patients with schizophrenia; Truven Health Analytics MarketScan Commercial and Medicaid claims databases were used to identify patients with BD. The analyses included adult patients (≥18 years) who either began receiving an LAI (no prior LAI therapy) or changed to a different oral antipsychotic (monotherapy). The first day of initiating an LAI or changing to a new oral antipsychotic was the index date. Linear and Cox regression models were conducted to estimate medication adherence (proportion of days covered [PDC]) and time to medication discontinuation (continuous medication gap ≥60 days), respectively. Models adjusted for patient demographic and clinical characteristics, baseline medication use, and baseline ED or hospitalizations.

Results: Patients with schizophrenia (N?=?5638) who began receiving LAIs had better medication adherence (5% higher adjusted mean adherence) during the 1 year post-index period and were 20% less likely to discontinue their medication during the entire follow-up period than patients who changed to a different oral antipsychotic monotherapy, adjusting for differences between LAI users and oral users. Similarly, patients with BD (N?=?11,344) who began receiving LAIs also had 5% better medication adherence and were 19% less likely to discontinue their medication than those using oral antipsychotics.

Limitations: Clinical differences unmeasurable in this database may have been responsible for the choice of LAI versus oral antipsychotics, and these differences may be responsible for some of the adherence advantages observed.

Conclusions: This real-world study suggests that patients with schizophrenia or BD who began receiving LAIs had better medication adherence and lower discontinuation risk than those who changed to a different oral antipsychotic monotherapy.     

Distributional Preferences and the Incidence of Costs and Benefits in Climate Change Policy

We explore the relationship between willingness to pay (WTP) for climate change mitigation and distributional preferences, by which we mean individuals’ opinions about who should be responsible for climate change prevention and whether the share of climate change impacts borne by the poor is a cause for concern. We use 1,770 responses to an online stated preference survey. The domestic costs in our survey’s policy choice scenarios are expressed as a set of randomized shares across four different payment vehicles, and the international cost shares are randomized across four groups of countries. We also elicit respondents’ perceptions of the likely regressivity of climate change impacts under a policy of business-as-usual. WTP is higher when larger cost shares are borne by parties deemed to bear a greater responsibility for mitigation, and when respondents believe (and care) that the impacts of climate change may be borne disproportionately by the world’s poor. That WTP for an environmental policy depends on the distributional consequences of the policy is an unsettling result: efficiency assessments are typically assumed to be separate from equity considerations in most benefit-cost analyses.     

Modeling the Economics of Biodiversity and Environmental Heterogeneity

It has long been recognized that major drivers of biodiversity loss include both the harvest of wild species and the conversion of habitat for productive purposes. Land that is converted may or may not be lost as habitat for many species. In some cases, monoculture production for example, land conversion reduces the number niches and hence the level of biodiversity. In other cases, it has the opposite effect. We address the problem of anthropogenic biodiversity change due to the effects of both harvest rates and land use decisions on landscape heterogeneity. If the optimal structure of the landscape is extremely homogeneous, forces of competitive exclusion will lead to a single surviving species. If it is extremely heterogeneous, multiple species will coexist, with each species exclusively dominating the patch type to which it is best suited. Where changes in biodiversity due to changes in landscape heterogeneity are not taken into account in land use decisions, they are external effects of those decisions. We identify measures of these effects.     

The importance of the institutional environment on multifunctional farming systems in the peri-urban area of Brussels

The influence of local and regional policies on the uptake of multifunctional farming systems is analysed. The conceptual framework of how regional and local policies can influence farmers’ behaviour is empirically verified by analysing data on uptake of diversification and environmental management by farmers located in the Brussels’ peri-urban area. In a two-stage model, farmers’ participation and behaviour to influence local policy-makers is also examined. It has been found among other things that, in a municipality that attaches greater importance to environmental issues, the uptake of agri-environmental measures is higher and that promotion of local agriculture will encourage farmers to start processing or selling products on their farms.     

Improving marketing channel control through power and exchange

Effective channel management control is necessary to marketing planning. The flow of power and exchange in distribution systems has received extensive attention in the literature in recent years, however, internal structuring patterns precipitating these interactions have received cursory attention. This paper presents an initial conceptualization of a social systems model which illustrates why power phenomena exist and how these phenomena flow through role interactions among members of a channel of distribution. Implications for managerial action are presented in which managers utilize sources of power which have the greatest possibility of achieving control.     

WEALTH EFFECTS FROM ACQUIRING FAILED THRIFTS SINCE FIRREA

This study investigates the market reaction to acquisitions of failed thrifts since the passage of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The study also assesses the influence of various factors on the share price response across acquirers. In general, the market reaction to the acquisitions is negative. Cross-sectional regression analysis reveals that acquisitions are likely to be more beneficial when they reflect industry diversification, a higher degree of government assistance, and less intense bidding for failed target thrifts. Our findings differ from previous studies which have documented a favorable share price response to assisted aquisitions. Apparently, the change in the amount and type of government assistance in the post-FIRREA period has affected the market reaction. Since the Resolution Trust Corporation controls the government assistance and the intensity of bidding for failed thrifts, its actions have a significant impact on the share price response to acquisitions. The results of the analysis are relevant to potential acquirers of failed thrifts, regulatory agencies, and taxpayers.     

The new landscape: a fresh look at long-term incentives for corporate America

Today's environment presents us with a torrent of issues surrounding the design and management of long-term and equity-related incentives, both for top executives and employees at large. This article reviews, at a conceptual level, the most important characteristics, advantages and disadvantages of the various principal long-term incentive types as they appear from key perspectives. The authors conclude with predictions about the future of long-term and equity-related incentives.