The effect of environmental information on investment allocation decisions – an experimental study

This paper focuses on the use of environmental information in investment decision making. The research approach employed is based on an experiment where three groups of final year finance students were asked to allocate investment funds between two companies based on financial accounts and information material from these companies in which environmental information was included in varying degrees. The overall conclusion is that the qualitative environmental information affects short term allocation decisions, hence indicating a risk reduction potential of environmental information comparable to the classic interpretation of financial information. The quantitative environmental information included in the experiment seems to mitigate rather than extend the directional effect of more environmental information. The evidence also seems to indicate that decision makers are not always aware which information categories affect their decision making. Hence, this has implications for how the potential value of environmental information is to be assessed. Finally, experimental studies as a methodology seem to be better suited to indicate actual effects of different types of information on decision making than attitude surveys. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Graduates' reactions to recruitment process outsourcing: A scenario‐based study

This study examines how successive outsourcing of recruitment activities to an external provider—also known as recruitment process outsourcing (RPO)—affects graduates' reactions. Using an experimental scenario technique, a total of 158 graduates participated in four hypothetical scenarios that have been developed as an experimental between‐subject design. Results provide support for negative effects of the extent of RPO on graduates' satisfaction with the recruitment process and company attractiveness. More‐over, mediated by graduates' satisfaction with the recruitment process and company attractiveness, an increasing extent of RPO negatively influences job‐acceptance intentions. © 2012 Wiley Periodicals, Inc.     

Lower Tax Progression, Longer Hours and Higher Wages

The impact of tax reforms that decrease income tax progression is analysed in an equilibrium search model with wage bargaining and endogenous individual working hours. Working hours are either bargained together with the hourly wage (case 1) or determined solely by workers after bargaining over the wage (case 2). In both cases reducing tax progression increases working hours of employed and, more interestingly, unambiguously increases wages and unemployment. Wages and unemployment rise more and working hours and production less in case 1 compared to case 2, probably making case 2 countries best suited for such tax reforms.
JEL Classification : H 24; J 22; J 41     

Wohlstand — keine Alternative zum BIP

In der Dezemberausgabe 2009 ver?ffentlichte der Wirtschaftsdienst ein Zeitgespr?ch mit dem Thema „Wie l?sst sich Wohlstand messen?“. Dazu ?u?ern sich Peter Michael von der Lippe und Claus Christian Breuer kritisch. Roland Zieschank und Hans Diefenbacher sowie Hans Wolfgang Brachinger stellen ihre Sichtweisen jeweils in einer Erwiderung dar.     

Empirical Modelling of Trade Union Growth in Germany, 1956—1986: Traditional versus Cointegration and Error Correction Methods

Ein empirisches Modell des Wachstums der deutschen Gewerkschaften 1956—86: Traditionelle Methoden versus Kointegrations- und Fehlerkorrekturtechniken. — Dieser Aufsatz liefert eine Erkl?rung für den Anstieg und Rückgang der Zahl der Gewerkschaftsmitglieder in der Bundesrepublik Deutschland von 1956 bis 1986. Darin wird für die empirische Modellierung ein alternativer Ansatz gew?hlt, der auf der in jüngster Zeit entwickelten Kombination von Kointegrations- und Fehlerkorrekturtechniken beruht. Das einfache empirische Modell kann die kurzfristige Dynamik und die langfristigen Trends der Mitgliedschaft w?hrend dieser Periode in einer sehr befriedigenden Weise erkl?ren. Es enth?lt ein Konjunkturzyklusmodell, das zur Analyse der Zu- und Abnahme deutscher Gewerkschaften entwickelt wurde, und liefert Sch?tzungen der Elastizit?t von Faktoren, die die Zahl der Mitglieder langfristig beeinflussen. Un modèle empirique de l’expansion des syndicats ouvriers en RFA pendant les années 1956—86: Les méthodes traditionnelles contre les méthodes de cointégration et de correction d’erreurs. — Cette étude doit expliquer l’expansion et le déclin de l’affiliation aux syndicats en RFA pendant les années 1956—86. On propose un cadre alternatif pour un modèle empirique basé sur la combinaison actuellement prouvée entre les techniques de cointégration et des méchanismes de la correction d’erreurs. Le modèle simple empirique est en mesure d’expliquer d’une manière satisfaisante les dynamismes à court terme et les tendances à long terme de l’affiliation pendant cette période. Le modèle contient un modèle développé auparavant pour expliquer les variations dans le nombre des membres en termes du cycle économique en RFA et fournit des estimations pour l’élasticité des facteurs qui influencent l’affiliation à long terme. Modelando empíricamente el crecimiento de sindicatos en Alemania (1956—86): métodos tradicionales versus métodos de cointegración y de corrección de errores. — En este trabajo se provee una explicación para el crecimiento y la reductión del numéro de miembros de sindicatos en la República Federal de Alemania en el periodo 1956—86. Se propone un enfoque alternativo para modelar empíricamente, basado en la relación recientemente establecida entre técnicas de cointegración y mecanismos de corrección de errores. El modelo empírico parsimonioso es capaz de explicar la dinámica del corto plazo y la tendencia de largo plazo observada en el número de miembros durante este periodo de manera muy satisfactoria. Comprende un modelo “nested” representando al ciclo económico, construido para Alemania, y provee estimaciones para las elasticidades de los factores que influencian al número de miembros en el largo plazo.     

Fixed price equilibria in a multifirm model

In a simple temperary equilibrium model with three commodities (labour, goods and money) and two sectors, there are different firms, each having its own production function. There now exist four types of fixed price equilibria (Keynesian, classical, repressed inflation, undercounsumption). In the last type, consumers are not rationed, some producers are rationed on the goods market, and other producers on the labour market. There exist three different aggregate production functions, that have to be applied in Keynesian, classical, and repressed inflation situations respectively. For the fourth case no aggregate production function exists.     

Portfolio management with stochastic interest rates and inflation ambiguity

We solve, in closed form, a stock-bond-cash portfolio problem of a risk- and ambiguity-averse investor when interest rates and the inflation rate are stochastic. The expected inflation rate is unobservable, but the investor can learn about it from observing realized inflation and stock and bond prices. The investor is ambiguous about the inflation model and prefers a portfolio strategy which is robust to model misspecification. Ambiguity about the inflation dynamics is shown to affect the optimal portfolio fundamentally different than ambiguity about the price dynamics of traded assets, for example the optimal portfolio weights can be increasing in the degree of ambiguity aversion. In a numerical example, the optimal portfolio is significantly affected by the learning about expected inflation and somewhat affected by ambiguity aversion. The welfare loss from ignoring learning or ambiguity can be considerable.     

Drop Rawls?

Business ethicists disagree on whether John Rawls’s political philosophy can be applied to their questions and concerns. They concur, however, that, if warranted, such an application of his theory would be highly instructive for the field. This article scrutinizes that assumption. The paper examines to what extent a normative import of Rawls’s philosophy into business ethics would indeed render adequate results. Highlighting shortcomings of Rawls in regard to several pressing concerns of contemporary business ethics, the paper ponders whether, for purposes of normative guidance and conceptual orientation, Rawls’s theory can meet the expectations that its adherents foster.