Individual responses to firm failure: Appraisals,grief, and the influence of prior failure experience

This paper provides a systematic assessment of how entrepreneurs react to firm failure. We use appraisal theory as an overarching theoretical framework and hypothesize that the more the failure experience is appraised as stressful in terms of its implications for harm or loss, the greater the feelings of grief. To test this hypothesis we developed a unique database of entrepreneurs who recently filed for firm bankruptcy. Our results support that there is great variation in responses to firm failure, and we provide theoretically valid explanations to why this is the case. These findings have substantial implications for how scholars conceive and theorize about entrepreneurial failure.     

The impact of credit scoring on consumer lending

We study the adoption of automated credit scoring at a large auto finance company and the changes it enabled in lending practices. Credit scoring appears to have increased profits by roughly a thousand dollars per loan. We identify two distinct benefits of risk classification: the ability to screen high‐risk borrowers and the ability to target more generous loans to lower‐risk borrowers. We show that these had effects of similar magnitude. We also document that credit scoring compressed profitability across dealerships, and provide evidence consistent with the view that credit scoring may have substituted for varying qualities of local information.     

Nominal inertia and shock persistence in UK business cycles

A structural VAR methodology is used for UK data to identify and map out the effects of innovations in the money supply, employment, output, wages and prices. Moreover, bands of two standard errors are computed for the impulse response functions so that comment may be made on the significance of the dynamic responses of the variables to the simulated shocks. This allows conclusions to be drawn on the persistence of shocks. Results suggest that output variation is largely determined by aggregate demand shocks over the business cycle frequency. Importantly, evidence is also found of rigidities in the form of price inertia and nominal wage stickiness.     

Rising top-income persistence in Australia: Evidence from income tax data

Using income tax administrative data for Australia, we examine levels and trends in the persistence in top-income group membership, focusing on the top 1 percent. Top-income persistence increased markedly between 1991 and 2018, with most of the increase occurring in the mid-2000s and early 2010s. In the mid- to late-2010s, Australian top-income persistence rates were near the top of the range of tax-data estimates for other countries. We decompose the increase into factors associated with (i) changes in the composition of the top-income group and (ii) increases in persistence rates for specific population subgroups. We find that the rise in top-income persistence is accounted for by changes in subgroup persistence rates, notably for individuals aged 35–64, and especially those aged 55–64. We suggest that these effects are partially related to increases in the effective retirement age over the relevant period.     

Global critical leadership: Educating global leaders with critical leadership competencies

Global critical leadership competency means espousing critical thinking skills in all aspects of leadership decision making in the global context. This paper reviews the actions of critical thinking, argues that global leaders too must lead critically, and draws attention to the deficiency of critical thinking curricula in higher education and subsequent lack of recent graduates with critical thinking competencies. Leading critically is defined as applying critical thinking skills to decisions about leadership actions in different situations and is a challenge for leaders, followers, and educators. Nevertheless, global leaders, stakeholders, and educators in global leadership programs must embrace this challenge in order to make informed decisions in global contexts.     

What is digital possession and how to study it: a conversation with Russell Belk,Rebecca Mardon,Giana M. Eckhardt,Varala Maraj,Will Odom,Massimo Airoldi,Alessandro Caliandro,Mike Molesworth and Alessandro Gandini

ABSTRACT

The platformisation of digital consumption, means that increasingly many of the things that we call ours – our messages, photos, music, achievements – are entangled in complex socio-technical arrangements which require ongoing market mediation. In this context, refining our understanding of what digital possessions are and how to study them is vital. This requires refocusing research away from existing comparative analyses between digital and material possessions. To do so, we organised an interdisciplinary roundtable discussion with critical marketers and digital media scholars, consumer researchers, digital sociologists and researchers in Human Computer Interaction (HCI) at the 11^th Interpretive Consumer Research Conference held in Lyon in May 2019. The result of that discussion is this curation of comments which deal with theoretical, methodological and critical issues and a bold agenda for future research.     

POVERTY, TNEQUALTTY, AND FAMTLY LIVING STANDARDS IMPACTS ACROSS SEVEN NATIONS: THE EFFECT OF NONCASH SUBSIDIES FOR HEALTH, EDUCATION AND HOUSING

The main aim of this paper has been to summarize the impact of noncash income–health and health education benefits, and imputed rent-on living standards, income distribution and poverty in seven nations at the beginning of the 1980s using the Luxembourg Income Study database. Our results do not give rise to a pattern of national differences in poverty rates or income inequality which are markedly different from that which emerges from previous LIS research based on cash income alone. While these results may be sensitive to the techniques used to measure and value noncash benefits in this paper, it appears that noncash income reinforces the redistributive impact or conventional (cash) tax-transfer mechanisms rather than acting to offset them in any major way.     

Markets, Materialism and Messages

Lord Harris's critical review of the Bishop of Durham's book 'God, Politics and the Future', in the February/March issue of Economic Affairs, inspired the following reply from the author. Readers must fudge for themselves.     

THE IMPLICATIONS OF STOCHASTIC DEMOGRAPHIC ASSUMPTIONS FOR MODELS OF THE DISTRIBUTION OF INHERITED WEALTH

The paper extends existing distributional models to incorporate two sets of 'stochastic' demographic assumptions: (a) where the number of heirs is randomly determined, and (b) where the gender of a given child is randomly determined (but the total number of heirs is non-stochastic). The consequent increase in heterogeneity of family types might be expected to increase the inequality of family wealth and reduce the degree of intergenerational inheritance, relative to the 'deterministic' case, but it is shown that this conclusion is very much conditional on the other assumptions made; about the pattern of marriage and estate division in particular.