Farmland prices, structural breaks and panel data

Previous time series evidence has indicated that farmland pricesand cash rents are not cointegrated, a finding at odds withthe present value model of farmland prices. We argue that thisfailure to find cointegration may be due to low power of testsand to the presence of structural change representing a shiftingrisk premium on farmland investments. To accommodate this possibility,we use panel unit root and cointegration methods that are morepowerful than conventional time series methods and allow forbreaks in the cointegration relationship. Our results, basedon a large panel covering 31 US states between 1960 and 2000,suggest that the present value model of farmland prices cannotbe rejected.     

A simple test for nonstationarity in mixed panels with incidental trends

Ng (2008) shows how the cross-sectional variance of the observed panel data can be used to construct a simple test for the proportion of non-stationary units. However, in the case with incidental trends the test is distorted. The present note shows how the distortions can be substantially reduced by the use of bias-adjustment. It also investigates the local power of the bias-adjusted test, which is shown to suffer from the same incidental trends problem previously only documented for conventional t$t$-tests.     

Wage Effects of Labour Migration with International Capital Mobility

Wage effects of immigration are investigated in a setting with international capital mobility, which eliminates two‐thirds of the native wage effects of immigration. Without international capital mobility, overall gains from migration in the immigration region are only a small fraction of total losses to native workers, but with perfect international capital adjustment, overall gains are larger than total losses to native workers. Two alternative tax policies to eliminate the negative wage effects of immigration on low‐skilled native workers are evaluated.     

Quality of Leadership and Workplace Bullying: The Mediating Role of Social Community at Work in a Two-Year Follow-Up Study

The theoretical and empirical link between leadership and workplace bullying needs further elaboration. The aim of the study is to examine the relationship between quality of leadership and the occurrence of workplace bullying 2 years later. Furthermore, we aim to examine a possible mechanism from leadership to bullying using social community at work as mediator. Using survey data that were collected at two different points in time (2006–2008) among 1664 workers from 60 Danish workplaces, we examined the total, direct and indirect effects between quality of leadership and workplace bullying. Our results indicate that quality of leadership plays a role in establishing working conditions that lead to workplace bullying. Furthermore, social community at work fully mediates the effect of poor quality of leadership on workplace bullying. This longitudinal study adds to previous cross-sectional studies on the substantial role played by leaders in the bullying process. Within the leadership–bullying relationship, social community at work acts as a full mediator, adding a significant contribution to the discussion of mechanisms involved in the bullying process. Plausible explanations of this mechanism and practical implications are discussed.     

Exotic unit-linked life insurance contracts

This article integrates aspects of traditional insurance with advances in financial economics, yielding proper valuation and premium assessments of insurance benefits linked to various financial assets. Several new types of unit-linked life insurance contracts are discussed, with substantial potential for real-life applications. Compared to usual unit-linked products, these contracts offer added flexibility and/or altered exposure to financial risk for the insured and/or the insurer. The single premiums of these policies are calculated as expectations under a risk-adjusted probability measure (equivalent martingale measure), satisfying no-arbitrage conditions in financial markets.     

Housing prices and tenure choice with asymmetric taxes and progressivity

This paper studies the effects of tax schedule changes on prices and tenure choice in the housing market. It is shown that, given the present asymmetric treatment of owner-occupants vs. renters, an increase in the degree of progressivity is likely to lead to an increasein the prices of both owner-occupied and rental housing. A numerical example indicates that the effects may be quite large. Equilibrium prices are calculated based on the actual Swedish income tax schedules for 1971 and 1979. According to these simulations the tax changes that took place between these years caused the price of owner-occupied houses to increase by around 30 percent, and the rent level to increase by 2 or 3 percent.     

The Contract of Employment - Ethical Dimensions

A review of the literature indicates that faculty, students, and employers recognize the importance of professional behaviors for a successful career. These professional behaviors were defined by business school faculty to include honesty and ethical decision making, regular attendance and punctuality, professional dress and appearance, participation in professional organizations, and appropriate behavior during meetings. This paper presents the results of a survey administered to managers, faculty, and students about how business school professors can teach these professional behaviors. A hypothesis was tested that managers, professors, and students differ in their perceptions about what is appropriate professional behavior. Using a scale of strongly agree to strongly disagree to respond to critical incidents, one-way ANOVA indicated no group differences for items about cheating, plagiarism, and helping students to work projects on schedule. Group differences were found for ethics items (raising course grade for the purpose of tuition reimbursement, stopping excessive use of school printers, simplifying course work to accommodate weaker students), time management items (making accommodations for students unable to regularly attend class, refusing to admit late students), appearance items (requiring students to dress in suits for major presentations, counseling a student with facial piercing), and for items about required activities inside and outside of the classroom. Allen Hall received his Ph.D. in education from the University of Iowa. Currently he is an associate professor at the State University of New York (SUNY) Institute of Technology. His research projects center around surveys designed to measure changes in ethical awareness. His teaching area is Business & Society. He currently studies management issues in non-profit organizations. Lisa Berardino received her Ph.D. in management from Virginia Tech. Currently she is an associate professor at the State University of New York (SUNY) Institute of Technology and coordinator for the Master of Business Administration program. Her publications focus on identifying, measuring and building the critical skills that business students need in today’s workplace. Her teaching area is human resource management and compensation. Her current research projects center on how to build the competency of professional behavior and how to teach ethics.     

The Heterogeneity of Socially Responsible Investment

Many writers have commented on the heterogeneity of the socially responsible investment (SRI) movement. However, few have actually tried to understand and explain it, and even fewer have discussed whether the opposite – standardisation – is possible and desirable. In this article, we take a broader perspective on the issue of the heterogeneity of SRI. We distinguish between four levels on which heterogeneity can be found: the terminological, definitional, strategic and practical. Whilst there is much talk about the definitional ambiguities of SRI, we suggest that there is actually some agreement on the definitional level. There are at least three explanations which we suggest can account for the heterogeneity on the other levels: cultural and ideological differences between different regions, differences in values, norms and ideology between various SRI stakeholders, and the market setting of SRI. Discussing the implications of the three explanations for the SRI market, we suggest that there is reason to be sceptical about the possibilities of standardisation if not standardisation is imposed top-down. Whether this kind of standardisation is desirable or not, we argue, depends on what the motives for it would be. To the extent that standardisation may facilitate the mainstreaming of SRI, it could be a good thing – but we entertain doubts about whether mainstreaming really requires standardisation.     

Government consumption smoothing in a balanced budget regime

I investigate government consumption smoothing (sensitivity) under a balanced budget rule in Swedish municipalities. In general, I find Swedish municipalities to be highly consumption sensitive. Municipalities consume 87.6 % out of predicted current revenues in the time period leading up to the implementation of the balanced budget rule, and they consume 76.3 % out of predicted current revenue in the time period following the implementation. Fiscally weak municipalities are found to be more consumption sensitive than fiscally strong municipalities. Very weak municipalities have become more consumption sensitive compared with very strong municipalities since the implementation of the balanced budget rule. Thus, I find indicative evidence that both credit market constraints and formal budget rules such as balanced budget rules increase municipal consumption sensitivity.