Local human capital formation and optimal FDI

This paper lends both theoretical and empirical support to the notion of optimal foreign direct investment (FDI) levels. It does so by uncovering an inverted-U-shaped relationship between FDI and human capital formation. The optimality of a particular FDI inflow depends on the educational incentives induced by FDI on the local, heterogeneous population. Our estimates confirm the significance of a positive (linear) and a negative (non-linear) impact of FDI stocks on tertiary schooling, which are exclusively relevant in developing countries.     

Cobden's stance on the currency and the political forces behind the approval of the Bank Charter Act of 1844

Contemporary scholars consider the banking legislation of the first half of the nineteenth century, to have inhibited the development of British industry, However, some doubts about this conception should have arisen due to Richard Cobden's stance on the currency question in general and on the Bank Charter Act of 1844 in particular. Cobden, who is usually viewed as a representative of industrial interests, was expected to oppose the Bank Act. However, he did not.

This paper attempts to show how can Cobden's views regarding monetary policy be reconciled with his stand as one of the most prominent leaders of industry at the time.     

Demand for cash with intra-period endogenous consumption

We extend the literature on the demand for money by relaxing the assumption of a constant rate of consumption. Although total consumption is still fixed over the period, agents can choose more than one rate of consumption and cash depletion in the period to minimize the cost of money management. Consistent with empirical evidence, we find that agents do not smooth intra-period consumption. Instead, their rate of consumption will be positively related to their cash position. This positive correlation depends on the volatility of the consumption process.     

Identity and in-group/out-group differentiation in work and giving behaviors: Experimental evidence

We investigate the existence and relative strength of favoritism for in-group versus out-group along multiple identity categories (body type, political views, nationality, religion, and more) in four alternative contexts: (1) giving money in a dictator game, (2) sharing an office, (3) commuting, and (4) work. We carried out two studies. The first study entailed hypothetical situations and imaginary people; the second study was similar to the first, but the dictator game component was incentivized (actual money) and involved actual receivers. Our subjects’ behavior towards others is significantly affected by their respective identities. (1) Those that belong to the in-group are treated more favorably than those who belong to the out-group in nearly all identity categories and in all contexts. (2) Family and kinship are the most powerful source of differentiation, followed by political views, religion, sports-team loyalty, and music preferences, with gender being basically insignificant. (3) The hierarchy of identity categories is fairly stable across the four contexts. (4) Subjects give similar amounts and discriminate between in-group and out-group to similar degrees in the hypothetical and incentivized dictator games.     

A COMPARATIVE STUDY OF ALLOCATION OF DECISION‐MAKING ACROSS STAKEHOLDER GROUPS: THE CASE OF PERSONAL CARE INDUSTRIES

ABSTRACT 1 : The article compares the allocation of decision‐making across stakeholder groups in for‐profit, nonprofit and local government personal care facilities in one state in the United States. We analyze detailed survey data on nursing homes, childcare centers and group homes. We find that in comparison to nonprofit and government organizations, for‐profit firms delegate more decision‐making power to executives and owners, and less to their employees, consumers, families, boards of directors, and community representatives. The differences, although generally small, support the hypothesis that decision‐making is allocated to different groups in accord with the broad objectives of the organization.