BARGAINING OVER TAXES AND ENTITLEMENTS IN THE ERA OF UNEQUAL GROWTH

Entitlements have become an increasing component of total government spending in the United States over the last six decades. Using a political-economy model where parties bargain over taxes and entitlements, we argue that such dynamics can be explained by two factors: “unequal growth,” where top earners became richer while the income of the bottom 50% stagnated, and budget rules that provide bargaining power to low-income earners through a “status quo effect.” In a model calibrated to the United States, we show that sustained bargaining power by a party representing the poor results in a rising share of entitlements consistent with the data.     

HR managers stereotyping frontline managers

This study explored how human resource (HR) leaders' biased perceptions of frontline manager (FLM) effectiveness influence HR ratings of FLM competencies, resulting in insufficient training and job preparation for these critical employees. The literature review examined FLM research, ratings of supervisory competencies and the underlying theoretical frameworks of implicit leadership theory and leadership categorization theory, and their relationship to informal learning. The research used mixed methods, with a qualitative critical incident study to identify competencies, followed by a quantitative survey to compare ratings, followed by qualitative in-person interviews to confirm survey findings. Results revealed a significant difference between HR and other raters of FLMs, including the FLMs themselves, with regard to FLM effectiveness, and these differences are informed by HR stereotypes of FLMs. Recommendations and implications suggest HR's role in providing unbiased assessment could lead to essential FLM training and development.     

Effects of social distancing policy on labor market outcomes

US workers receive unemployment benefits if they lose their job, but not for reduced working hours. In alignment with the benefits incentives, we find that the labor market responded to COVID-19 and related closure-policies mostly on the extensive (12 pp outright job loss) margin. Exploiting timing variation in state closure-policies, difference-in-differences (DiD) estimates show, between March 12 and April 12, 2020, employment rate fell by 1.7 pp for every 10 extra days of state stay-at-home orders (SAH), with little effect on hours worked/earnings among those employed. Forty percentage of the unemployment was due to a nationwide shock, rest due to social-distancing policies, particularly among “non-essential” workers.     

Leader selection and why it matters: Education and the endogeneity of favouritism in 11 African countries

A large literature on favouritism argues that leaders favour their own ethnicity or administrative birthplace. We question the assumption that these leaders are exogenously selected for office. Using historical censuses from 11 African countries, we show that leaders are selected from more advanced regions. In other words, our sample shows that African leaders were created by colonial (and pre-colonial) institutions, which often meant large educational differences between regions. Our paper's historical perspective shows that these often-overlooked institutions can account for much of the variation in post-colonial outcomes. Favouritism was at least partially endogenous.     

Are different entrepreneurship-promotion activities equally effective? an analysis by academic year and gender

International Entrepreneurship and Management Journal - Entrepreneurial education (EE) has proliferated in recent years, however, while previous research has extensively analyzed the impact of EE...     

Pharmaceutical regulation under market integration through parallel trade

In this paper, I study the effect of parallel trade (cross-border resale of goods without the authorization of the manufacturer) on pharmaceutical regulation. Governments may restrict prices directly (price caps) or limit third-party payer reimbursement for the drug (reimbursement limits). I find that parallel trade may relax regulation in the source country of parallel imports under both instruments and intensify regulation in the destination country under a reimbursement limit. I also find that parallel trade may change regulatory preferences: under no parallel trade, both the source and destination country set price caps, and under parallel trade, the source country sets a price cap but the destination country sets a reimbursement limit, thereby enforcing a higher price cap in the South. This implies that drug prices are higher under parallel trade in both source and destination countries.     

Developing critical thinking: An examination of contemporary practices in accounting

Employers and professional bodies call for higher education accounting courses to emphasise the importance of critical thinking skills. This study provides an in-depth assessment of how critical thinking is currently taught and assessed across an entire accounting degree. Our study contributes to our understanding of how teaching and assessment can support students in developing their critical thinking. Using a case study approach, we identify resource restraints and disruptions to traditional forms of engagement as key challenges to developing critical thinking skills in accounting education. We conclude with suggestions for teaching practice, such as formative scaffolds and teacher-led discussions.     

Vaccination under pessimistic expectations in clinical trials and immunization campaigns

We provide one of the first formalizations of a vaccination campaign in a decision-theoretic framework. We analyze a model where an ambiguity-averse individual must decide how much effort to invest into prevention in the context of a rampant disease. We study how ambiguity aversion affects the effort and the estimation of the vaccine efficacy in clinical trials and immunization campaigns. We find that the behaviors of individuals participating in a clinical trial differ from individuals not participating. Individuals who are more optimistic toward vaccination participate more in trials. Their behaviors and efforts are also affected. As a result, because vaccine efficacy depends on unobserved behaviors and efforts, the biological effect of the vaccine becomes difficult to evaluate. During the scale-up phase of a vaccination campaign, provided that vaccine efficacy is established, we show that vaccine hesitancy may still be rational.     

Trust and trustworthiness after a land restitution program: lab-in-the-field evidence from Colombia

Constitutional Political Economy - We assess the impact on trust and trustworthiness of a governmental program to compensate victims of forced displacement. All our subjects were eligible to apply...