A proposed set of nine regions for the United States and the inequality of population densities

A nine-region division of the United States is discussed and compared with the U.S. Census and BEA (Bureau of Economic Analysis) regional groupings. The discussion includes the population density of the regions as well as the inequality of the population densities between and within regions. First version received: October 1999/Final version received: February 2000     

The contingent effects of differentiation and integration on corporate entrepreneurship

This paper develops a contingency view regarding the effects of structural differentiation and integration on levels of corporate entrepreneurship. Integrating notions of benefits and costs resulting from integration with structural contingency theory, we argue that the joint effects of structural differentiation and integration on corporate entrepreneurship levels are moderated by organizational size and environmental dynamism. Our findings from a time‐separated sample demonstrate that in smaller organizations and more dynamic environments, the positive effects of integration on the structural differentiation‐corporate entrepreneurship relationship strongly diminish. As such, with this research we begin to identify contingencies that influence the corporate entrepreneurship levels observed among firms striving to balance the needs for structural differentiation and integration. Copyright © 2014 John Wiley & Sons, Ltd.     

Discounting Indices Proposed for Capital Investment Evaluation: A Further Examination

A recent publication [2 Bernhard , Richard H. , “ A Comprehensive Comparison and Critique of Discounting Indices Proposed for Capital Investment Evaluation ,” The Engineering Economist , Volume 16 , Number 3 , Spring 1971 .[Taylor &; Francis Online] , [Google Scholar]] in this journal presented a comprehensive comparison and critique of discounting indices proposed for (i) the examination of whether a proposed independent project should be accepted and (ii) selection of a project from a set of mutually exclusive projects. The present paper examines procedures available in the literature of engineering and managerial economics and in practice for selecting projects from a given number of proposed capital investment projects, if a given capital constraint does not permit the undertaking of all proposed projects. It appears that the present state of the art is subject to much controversy and confusion. The ensuing presentation intends to rectify this situation. In addition, a procedure for the above selection problem is developed. Usage of this procedure is recommended for the many policy makers who are continually faced with the trade-off between elaborate methods on the one hand and cursory /approximations on the other.     

A differential approach to U.S. import demand

We apply the differential production theory approach to U.S. import data (1921-70) without imposing restrictions on Divisia elasticities. The estimates of these elasticities are 0.58 for the imports of foods, 0.95 for those of crude materials, 1.34 for semi-manufactures, and 1.16 for finished manufactures.     

Microeconomic uncertainty and macroeconomic indeterminacy

We propose a stylized intertemporal macroeconomic model wherein the combination of decentralized trading and microeconomic uncertainty (taking the form of privately observed and uninsured idiosyncratic shocks) creates an information problem between agents and generates indeterminacy of the macroeconomic equilibrium. For a given value of the economic fundamentals, the economy admits a continuum of equilibria that can be indexed by the sales expectations of firms at the time of investment. The Walrasian equilibrium is one of these possible equilibria but it is reached only if firms are optimistic enough. With a weaker degree of optimism, equilibrium output, employment and real wages will be lower than in the Walrasian equilibrium. Moreover, the range of possible equilibria will depend positively on the wage elasticity of the labour supply and on the magnitude of the information problem between buyers and sellers (in our case, the variance of the idiosyncratic shocks).Stochastic simulations performed on a calibrated version of the model show that pure demand expectation shocks may generate business cycle statistics that are not inconsistent with the observed ones.     

Match Specific Gains to Marriage: A Random Effects Ordered Response Model

A random effects ordered response model is used to analyze individuallife satisfaction. It is found that a substantial part of the unexplained variance in theindividual's life satisfaction can be ascribed to the household or marriage. It is further found thatthe age variable should be considered as a random effect on life satisfaction, i.e., an effectthat varies between households.     

Insurance Fraud: What makes a case look suspicious?

By many, insurance fraud is believed to be widespread, but little is known about how to detect it. In recent years, some attempts have been made to find indicators for fraud. They are, however, probably hampered when relying on characteristics of established fraud, since the majority of fraudulent cases then remains excluded, leaving many white spots on the map. In choosing a different approach, we let subjects reason freely about insurance fraud, recording and analysing their clues, and comparing them to indicators found in previous research. Our findings show that not only much of available information is largely ignored, subjects tend to concentrate on other aspects than supposedly reliable fraud characteristics and experts fail to fare better than laypeople.     

Portfolio manager ownership and fund performance

This paper documents the range of portfolio manager ownership in the funds they manage and examines whether higher ownership is associated with improved future performance. Almost half of all managers have ownership stakes in their funds, though the absolute investment is modest. Future risk-adjusted performance is positively related to managerial ownership, with performance improving by about 3 basis points for each basis point of managerial ownership. These findings persist after controlling for various measures of fund board effectiveness. Fund manager ownership is higher in funds with better past performance, lower front-end loads, smaller size, longer managerial tenure, and funds affiliated with smaller families. It is also higher in funds with higher board member compensation and in equity funds relative to bond funds. Future performance is positively related to the component of ownership that can be predicted by other variables, as well as the unpredictable component. Our findings support the notion that managerial ownership has desirable incentive alignment attributes for mutual fund investors and indicate that the disclosure of this information is useful in making portfolio allocation decisions.     

Creativity in Design Engineering and the Role of Knowledge: Modelling the Expert

The present study focuses on the relationship between the acquisition of design knowledge by novice design students and the quality of their designs. Design learning is typically based on action and reflection. Knowledge of solution processes, being part of this reflection, is found to be crucial in monitoring and controlling the design process and in reaching an optimal, creative result. The studies described in this article suggest a close relationship between the amount of process knowledge – knowledge of managing and monitoring the solution finding process – reported by novice designers, and the creativity of the designed product.