Economic and capital market antecedents of venture capital commitments (1960–2010)

Using vector autoregression technique, we examine the interrelation between venture capital flows, economic development, capital market fund-raising activities, and capital market valuation, based on annual data of the United States over the past half-century. We find that venture capital commitments appear to be correlated with GDP and capital market valuation. While capital market fund-raising activities (Initial Public Offerings and Seasoned Equity Offerings) are also correlated with venture capital flows, these effects are subsumed by GDP, indicating that the overall economy drives both venture capital flows and capital market financing activities. Analyses from impulse response functions suggest that shocks to GDP have a permanent effect on venture capital flows, while the impact of capital market valuation (Standard & Poor 500 returns) on venture capital flows is rather short lived. Overall, both economy-wide development and financial market fluctuations seem to impact venture capital flows.     

THE EXTENDED ECONOMETRIC INPUT–OUTPUT MODEL WITH HETEROGENEOUS HOUSEHOLD DEMAND SYSTEM

This paper proposes an extension to the regional econometric input–output model (REIM) [Conway, R.S. (1990) The Washington Projection and Simulation Model: A Regional Interindustry Econometric Model. International Regional Science Review, 13, 141–165; Israilevich, P.R., G.J.D. Hewings, M. Sonis and G.R. Schindler (1997) Forecasting Structural Change with a Regional Econometric Input–Output Model. Journal of Regional Science, 37, 565–590]. We integrate a demand system with age and income parameters into the REIM. The extended model thus addresses concerns about the effects of household heterogeneity. The initial testing is conducted with a model for the Chicago metropolitan area. First, using aggregate expenditure data by income and age groups, the almost ideal demand system with group fixed effects is constructed. Next, the estimated demand system is linked to the REIM to reflect long-term changes in the age and income distribution of households. The long-range simulation from the extended model takes into account structural changes in expenditure type stemming from changing demographic composition. The extended model further broadens the scope of impact analysis under various scenarios associated with age and income changes.     

Purchasing Power Parity and the Taylor Rule

It is well known that there is a large degree of uncertainty around Rogoff's consensus half‐life of the real exchange rate. To obtain a more efficient estimator, we develop a system method that combines the Taylor rule and a standard exchange rate model to estimate half‐lives. Further, we propose a median unbiased estimator for the system method based on the generalized method of moments with non‐parametric grid bootstrap confidence intervals. Applying the method to real exchange rates of 18 developed countries against the US dollar, we find that most half‐life estimates from the single equation method fall in the range of 3–5 years, with wide confidence intervals that extend to positive infinity. In contrast, the system method yields median‐unbiased estimates that are typically shorter than 1 year, with much sharper 95% confidence intervals. Our Monte Carlo simulation results are consistent with an interpretation of these results that the true half‐lives are short but long half‐life estimates from single‐equation methods are caused by the high degree of uncertainty of these methods. Copyright © 2014 John Wiley & Sons, Ltd.     

Individual entrepreneurial orientation,value congruence,and individual outcomes: Does the institutional entrepreneurial environment matter?

Although entrepreneurial orientation (EO) at the firm-level is often conceptualized as a direct antecedent of performance, the findings of previous studies lending support to this association are inconsistent. Consequently, drawing on the attraction/selection/attrition and institutional theories and employing the moderated mediation analysis approach, this study conceptualizes the individual perception of a firm's EO or individual entrepreneurial orientation (IEO). It examines the direct and indirect effects of IEO on individual outcomes measured in terms of performance expectation, job involvement, and organizational commitment. More specifically, it examines whether these effects are mediated by value congruence and moderated by the institutional entrepreneurial environment to understand these inconsistent findings better. Using a sample of 398 environmentally concerned small and medium-sized enterprises (SMEs) in South Korea, partial least squares structural equation modeling (PLS-SEM), and the PROCESS macro were employed to analyzed the research model. This study finds that value congruence mediates the association between IEO and performance expectation, job involvement, and organizational commitment. The moderated mediation model analysis also suggests that the mediating role of value congruence increases as the level of the institutional entrepreneurial environment increases. These findings offer useful theoretical and managerial implications of the IEO on individual outcomes.     

Can German vocational training combat skill shortages in developing countries? Evidence from dual training system in the Philippines

This paper examines the labor market impacts of the Philippine Dual Training System (DTS), a vocational training program that combines firm-based on-the-job training (OJT) and conventional institution-based training, using a recent survey that tracked graduates from DTS and regular institution-based programs. The estimation results using fuzzy regression discontinuity design show a significantly positive impact on the most recent monthly earnings. The impact significantly increases with the OJT intensity, measured by the number of hours a week in OJT. The above results imply that vocational training has to be aligned with actual production technologies and work practices to narrow skill gaps and create positive returns.     

Price discrimination via information provision

We study price discrimination where different prices are offered as a bundle with different levels of information about a product. The seller’s price discrimination induces high valuation buyers to purchase a good without information and low valuation buyers to purchase with information. Our analysis highlights several interesting results about price discrimination: (i) the seller’s choice of information provision is the combination of full information and no information, (ii) products can be cheaper without information provision than with information provision, (iii) as a result of price discrimination, prices can be more dispersed as buyers’ valuations become largely similar, and (iv) the high valuation buyers purchase a damaged good and may earn negative surplus. Furthermore, we investigate under which circumstances price discrimination is more profitable than uniform pricing. We show that a decline in transportation costs which facilitate price discrimination can be welfare reducing.     

When Do Employees Cyberloaf? An Interactionist Perspective Examining Personality,Justice, and Empowerment

Cyberloafing—using the Internet for non‐work‐related activities—is a prevalent counterproductive work behavior in the workplace, but researchers have not yet paid sufficient attention to this issue, especially related to the role of personality in cyberloafing. Recognizing such a research gap, and using a trait activation theory framework, this study examines whether conscientiousness and emotional stability negatively relate to cyberloafing. We further investigate how organizational justice perceptions and psychological empowerment moderate the negative relationship between these personality traits and cyberloafing. Based on a sample of 247 employees, we find that those high in conscientiousness cyberloaf less when they perceive greater levels of organizational justice. In addition, highly conscientious individuals cyberloaf less when they have low, rather than high, levels of psychological empowerment. Implications for research and practice as well as future research directions are discussed. © 2015 Wiley Periodicals, Inc.     

The Effects of the President’s Emergency Plan for AIDS Relief on the Economies and Domestic Politics of Focus Countries

President G.W. Bush’s Emergency Plan for AIDS Relief (PEPFAR) has been rated as one of the successful US aid interventions of recent decades. We investigate the impact of PEPFAR on economic development, democracy, and human rights by comparing focus countries that received PEPFAR with other countries that did not receive PEPFAR from 2003 to 2008. Moreover, we examine specific changes made within focus countries after the implementation of PEPFAR using Difference-in-Difference estimation. Our results show that PEPFAR did improve economic conditions in focus countries but had a limited impact on political conditions, that is, on democracy and human rights.     

Dynamic management view: logic of profit seeking based on adaptation to technological change and needs evolution through needs-focused innovation

Scrutinising well-known models/theories in strategic management, this paper proposes dynamic management view (DMV) on the premise profit comes from adaptation to technological change and needs evolution through needs-focused innovation in a dynamic world. It firstly sets up the theoretical framework of DMV by taking business model to embrace explicit needs (the ultimate source of profit) and needs-focused innovation (the ultimate driver of profit seeking) as the very causal mechanism at the micro-foundations level, and technological change and needs evolution as the direct causal mechanisms of profit at the macro-foundations level from which it draws the universal and contingency rules of needs-focused innovation, derives the propositions about the adaptive goodness between explicit needs and needs-focused innovation, shows it works as the determinant of profit with the industrial experiences, and concludes DMV provides the rationale for a firm’s sustainability, the strategic decision rules for business model innovation and the theoretical foundation to build dynamic theory of profit seeking.