New Directions: Cambridge–Maastricht Symposium 2001

The Journal of Real Estate Finance and Economics -     

Politics of free trade areas: tariffs versus quotas

In this paper we compare and contrast the political viability of bilateral Free Trade Area (FTA) Agreements in the presence of tariffs and quotas. Assuming that the government maximizes a weighted sum of welfare and producer profits, we show that the political viability of FTAs varies according to whether trade restrictions take the form of tariffs or quotas. A key result is that whereas an FTA is unambiguously rejected by one of the countries under a tariff, it may be endorsed by both trading partners under a voluntary export quota or import quota that provides equal protection as the tariff.     

Organizationally-relevant configurations: the value of modeling local dependence

Configurations are important across all levels of organizations. Despite the interest in and importance of configurations in research for organizations, the empirical methods for assessing and classifying configurations has not kept pace with the theoretical advancements. Theory suggests that configurations must include aligned elements that have local dependence. Local dependence is defined as the interrelationships among variables necessary to form an internally consistent configuration. We explain how latent class cluster analysis (LCCA) enables modeling for local dependence and provides theoretical and methodological value for configurations researchers. Using primary data from two samples, we demonstrate that LCCA with local dependence outperforms traditional cluster analysis-based approaches. Our method can be used for detecting configurations at a variety of organizational levels (e.g. nation, industry, firm, and group).     

How information systems help create OM capabilities: Consequents and antecedents of operational absorptive capacity

In contemporary business environments, the ability to manage operational knowledge is an important predictor of organizational competitiveness. Organizations invest large sums in various types of information technologies (ITs) to manage operational knowledge. Because of their superior storage, processing and communication capabilities, ITs offer technical platforms to build knowledge management (KM) capabilities. However, merely acquiring ITs are not sufficient, and organizations must structure information system (IS) designs to leverage ITs for building KM capabilities. We study how technical and strategic IS designs enhance operational absorptive capacity (OAC) – the KM capability of an operations management (OM) department. Specifically, we use a capabilities perspective of absorptive capacity to examine potential absorptive capacity (POAC) and realized absorptive capacity (ROAC) capabilities – the two OAC capabilities that create and utilize knowledge, respectively. Our theory proposes that integrated IS capability, – an aspect of technical IS design – is an antecedent of POAC and ROAC capabilities, and business-IT alignment – an aspect of strategic IS design – moderates the relationship between integrated IS capability and ROAC capability. Combining data gleaned from a multi-respondent survey with archival data from COMPUSTAT, we test our hypotheses using a dataset from 153 manufacturing organizations. By proposing that IS design enables an OM department's KM processes, i.e., the POAC and ROAC capabilities, our interdisciplinary theoretical framework opens the “black box” of OAC and contributes to improved understanding of IS and OM synergies. We offer a detailed discussion of our contributions to the literature at the IS-OM interface and implications for practitioners.     

Overall justice,work group identification and work outcomes: Test of moderated mediation process

This study examined an integrated model of the antecedents and outcomes of organisational and overall justice using a sample of Indian Call Centre employees (n = 458). Results of structural equation modelling (SEM) revealed that the four organisational justice dimensions relate to overall justice. Further, work group identification mediated the influence of overall justice on counterproductive work behaviors, such as presenteeism and social loafing, while conscientiousness was a significant moderator between work group identification and presenteeism and social loafing. Theoretical and practical implications are discussed.     

Growth and Election Outcomes in a Developing Country

We offer the first test of the hypothesis that rapid growth helps incumbents win elections for a developing country, India. We generalize the Fair (1978) model to allow for multiple candidates and test it using cross‐state data on 422 candidates in the 2009 parliamentary elections. We find quantitatively large and statistically robust effect of growth on the prospects of the candidates of the state incumbent parties to win elections.     

Skin Tone and Self-Employment: is there an Intra-Group Variation among Blacks?

The purpose of this paper is to formally evaluate whether odds of entry into self-employment decrease as skin tone darkens for Blacks in the United States. Extending past work on inter-group differences in Black-White self-employment, based on data from National Longitudinal Survey of Youth 1997, with darker skin tone the odds of self-employment decline. Having spent more time in labor force further decreases the likelihood of self-employment for darker skin tone Blacks, and being a high-school graduate, scoring high on Armed Services Vocational Aptitude Battery (ASVAB), or higher past year income are not associated with self-employment of darker skin tone Blacks. While darker skin tone Blacks who are self-employed derive lower income, those who are self-employed and with more human capital (longer time spent in the labor force, scoring high on ASVAB or being a high school graduate) have a higher income.     

Effectiveness comparison and incremental cost-per-responder analysis of calcipotriene 0.005%/betamethasone dipropionate 0.064% foam vs. halobetasol 0.01%/tazarotene 0.045% lotion for plaque psoriasis: a matching-adjusted indirect comparative analysis

Abstract

Background: The fixed-dose combination foam formulation of calcipotriene 0.005% plus betamethasone dipropionate 0.064% (Cal/BD) has demonstrated efficacy and a favorable safety profile for the treatment of plaque psoriasis. Recently, a topical lotion of the combination of halobetasol 0.01% plus tazarotene 0.045% (HP/TAZ) was approved for treating adult plaque psoriasis. Currently, no head-to-head studies have compared Cal/BD foam with HP/TAZ lotion.

Objective: Compare the effectiveness and drug incremental cost per responder (ICPR) of Cal/BD foam vs. HP/TAZ lotion in moderate-to-severe plaque psoriasis.

Methods: An anchor-based, matching-adjusted indirect comparison was conducted for PGA treatment success (Physician’s Global Assessment of “clear” or “almost clear,” [PGA 0/1] with at least a 2-point improvement) using individual patient data from 3 randomized clinical studies of Cal/BD foam and published data from 2 randomized, Phase 3 clinical studies of HP/TAZ lotion. The number needed to treat and ICPR were also calculated.

Results: After reweighting of patients in the Cal/BD foam studies to match summary baseline characteristics of the HP/TAZ lotion study patients and anchoring to vehicle effect, 4?weeks of Cal/BD foam produced a significantly greater rate of treatment success than 8?weeks of HP/TAZ lotion treatment (51.4 vs. 30.7%; treatment difference = 20.7%, p?<?.001). The number needed to treat with Cal/BD foam was also less than HP/TAZ lotion (1.9 vs. 3.3). Using US wholesale acquisition costs and equal weekly consumption rates, the incremental cost per PGA 0/1 responder relative to vehicle for Cal/BD foam was $3,988 and was 37% lower compared with HP/TAZ lotion ($6,294).

Conclusions: The indirect comparison analyses showed that Cal/BD foam was associated with a greater rate of treatment success, lower ICPR, and quicker treatment response than HP/TAZ lotion in adult patients with moderate-to-severe plaque psoriasis.