INTERNATIONAL WELFARE AND EMPLOYMENT LINKAGES ARISING FROM MINIMUM WAGES*

We formulate a two‐country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor market imperfections arise by virtue of country‐specific real minimum wages. Abstracting from selection of just the best firms into export status, standard effects on marginal and average firm productivity are reversed in our model, yet there are significant gains from trade arising from employment expansion. In addition, we show that with firm heterogeneity an increase in one country’s minimum wage triggers firm exit in both countries and thus harms workers at home and abroad.     

Preventing HIV in injection drug users: exploring the tradeoffs between interventions

Injection drug users (IDUs) transmit the human immunodeficiency virus (HIV) via both needle sharing and sex. Available interventions for this population have varying costs and effectiveness and focus on different risk behaviors. In this analysis, we look at two interventions. One is inexpensive, broad-based and provides modest risk reductions (street outreach (SO)); the other is narrowly focused, expensive and relatively effective (methadone maintenance). This analysis explores the effects of population risk behavior, intervention effectiveness, intervention costs, and decision constraints when allocating funds between these two interventions to maximize effectiveness. We develop a model of the spread of HIV, dividing IDUs into susceptibles (uninfected) and infectives, and separately portraying sex and injection risk. We simulate the epidemic in New York City for time periods from the mid-1980s to the early 1990s, and incorporate the behavioral effects of two interventions performed singly or in combination to find the allocation that maximizes the number of infections averted in the IDUs and their noninjecting sex partners, assuming interventions have increasing marginal costs. We find that the optimal allocation nearly always involves spending the maximum allowable amount on SO. This result is largely insensitive to variations in risk parameters, intervention efficacy, or cost. The model's structure, however, makes clear that many factors contribute to this insensitivity, namely the scope of the interventions, the dual drug/sex nature of HIV risk in the population, the asymmetry of sexual risk for men and women, and the potential benefits to nonIDUs.     

Organizational form and environment: an analysis of between‐form and within‐form responses to environmental change

This study extends previous research on organizational adaptation to major environmental shifts by empirically examining the potential constraining effects of organizational form, operationalized using the Miles and Snow typology, on the type of responses enacted as well as the performance effects of the responses. Results indicate that a fit between environmental contingencies and organizational form relates to superior performance. The results also provide support for the idea that organizations systematically move toward the higher‐performing forms for a given environment. Consistent with organizational configuration logic, while these responses lead to performance improvements when a between‐form change is made, they do not necessarily lead to performance improvements when a within‐form change is made. Copyright © 2000 John Wiley & Sons, Ltd.     

Testing subgame perfection apart from fairness in ultimatum games

We present an experiment designed to separate the two commonplace explanations for behavior in ultimatum games—subjects’ concern for fairness versus the failure of subgame perfection as an equilibrium refinement. We employ a tournament structure of the bargaining interaction to eliminate the potential for fairness to influence behavior. Comparing the results of the tournament game with two control treatments affords us a clean test of subgame perfection as well as a measure fairness-induced play. We find after 10 iterations of play that about half of all non-subgame-perfect demands are due to fairness, and the rest to imperfect learning. However, as suggested by models of learning, we also confirm that the ultimatum game presents an especially difficult environment for learning subgame perfection. Electronic Supplementary Material Supplementary material is available in the online version of this article at . JEL Classification C91, D64, J52     

Foreign direct investment and its impact on the Thai economy: the role of financial development

This paper examines the roles of foreign direct investment and financial development in the process of economic development using Thailand as the case study. We argue that better developed financial systems allow an economy to exploit the benefits of foreign direct investment more efficiently. The estimation draws upon an unrestricted error-correction model to avoid omitted lagged variable bias, and an instrumental variable estimator to correct for endogeneity bias. Using annual time series data from 1970 to 2004, the results show that financial development stimulates economic development whereas foreign direct investment impacts negatively on output expansion in the long run. However, an increased level of financial development enables Thailand to gain more from foreign direct investment, suggesting that the impact of foreign direct investment on output growth can be enhanced through financial development. The results are robust to different measures of financial development.      

Large‐Scale Buy‐to‐Rent Investors in the Single‐Family Housing Market: The Emergence of a New Asset Class

In 2012, several large firms began purchasing single‐family homes, creating large portfolios of rental property, and securitizing these investments in capital markets. We present the first systematic evidence on this new investor activity in order to shed light on the factors that have supported its emergence. Three key factors were the ample supply of property for sale, tight mortgage financing and a decrease in acquisition and managerial costs brought about by technological advances. In addition, we show that buy‐to‐rent investors appear to have supported house prices in the neighborhoods where they concentrated.     

Knowledge seeking in going abroad

Based on knowledge theories, this study examines the impact of client‐following and market‐seeking entry strategies on foreign market entry by firms. The article also explores the subsequent development of knowledge in firms. Using data from 116 firms, we test three hypotheses using logistic regression. Our hypotheses are supported in the data. Our analysis shows that significant differences exist between client‐following firms and market‐seeking firms. Client followers are both supported and trapped by their international network, whereas market seekers, though not supported, are much freer to pursue higher‐order learning. Due to differences in their network ties, these two types of firms learn at different speeds and learn different things. We also found that firms with proactive knowledge‐seeking strategies learn more. Thus, learning strategies have consequences for exploration and exploitation of international markets, what is learned and how much is learned, and proactive internationalization strategies for firms. © 2009 Wiley Periodicals, Inc.     

An analysis of air mass effects on rail ridership in three US cities

This paper examines whether daily weather affects ridership in urban transportation systems. When examining human–weather relationships, it is often advantageous to examine air masses, which take into account the entire parcel of air over a region. Spatial synoptic classification characterizes air masses based upon numerous meteorological variables at a given location. Thus, rather than examining temperature or precipitation individually, here we compare daily ridership to synoptic air mass classifications for three urban rail systems: Chicago Transit Authority (CTA), Bay Area Rapid Transit (BART), and the Hudson–Bergen light-rail line in northern New Jersey. Air masses are found to have a significant impact on daily rail ridership, with usage typically increasing on dry, comfortable days and decreasing on moist, cool ones, particularly on weekends. Although the comfort of a particular air mass changes throughout the year, seasonality is not a significant factor with respect to the air mass–ridership relationship. The results of this study can benefit rail system managers who must predict daily ridership or in the development of cost-benefit analyses for station improvements.     

Disciplining: A question of ethics?

The importance of evaluating a discipline system from an ethical perspective is considered. Disciplinary practices in contemporary organizations are frequently characterized by managers having to choose from among alternative courses of corrective action. Since the selected alternative may have serious consequences for the individuals involved, its rightness or wrongness is of concern. The pattern of these choices reflects the overall disciplinary practice of the organization, and is an issue that warrants attention from an ethical perspective. Basic schools of thought that influence contemporary discipline practices are discussed and suggestions are made for conducting an evaluation of the ethical nature of a discipline system.