Rent Sharing and the Compensation of Head Coaches in Power Five College Football

The monopoly and monopsony power of intercollegiate sports create significant rents, but previous studies of intercollegiate football coaches’ salaries implicitly assume that coaches are paid their marginal revenue products. In a two-stage estimation, we show that coaches share in these rents. The first stage shows that several common measures of coaches’ productivity do not affect an athletic department’s variable revenue. When we include these measures in the second-stage salary equation, their impact on pay reflects bargaining power, not productivity. We also find that several measures of fixed revenue, which are independent of the coach’s performance, increase the coach’s pay.     

Preventives Versus Treatments Redux: Tighter Bounds on Distortions in Innovation Incentives with an Application to the Global Demand for HIV Pharmaceuticals

Kremer and Snyder (Q J Econ 130:1167–1239, 2015) show that demand curves for a preventive and treatment may have different shapes though they target the same disease, biasing the pharmaceutical manufacturer toward developing the lucrative rather than the socially desirable product. This paper tightens the theoretical bounds on the potential deadweight loss from such biases. Using a calibration of the global demand for HIV pharmaceuticals, we demonstrate the dramatically sharper analysis achievable with the new bounds, allowing us to pinpoint potential deadweight loss at 62% of the global gain from curing HIV. We use the calibration to perform policy counterfactuals, assessing welfare effects of government policies such as a subsidy, reference pricing, and price-discrimination ban. The fit of our calibration is good: we find that a hypothetical drug monopolist would price an HIV drug so high that only 4% of the infected population worldwide would purchase, matching actual drug prices and quantities in the early 2000s before subsidies in low-income countries ramped up.     

Pro‐Social or Pro‐Management? A Critique of the Conception of Employee Voice as a Pro‐Social Behaviour within Organizational Behaviour

For many years, the employment relations (ER) literature took the perspective that employee voice via trade unions could channel discontent and reduce exit, thereby improving productivity. In organizational behaviour (OB) research voice has also emerged as an important concept, and a focus of this research has been to understand the antecedents of the decision of employees to engage or not engage in voice. In OB research, however, voice is not viewed as it is in ER as a mechanism to provide collective representation of employee interests. Rather, it is seen as an expression of the desire and choice of individual workers to communicate information and ideas to management for the benefit of the organization. This article offers a critique of the OB conception of voice, and in particular highlights the limitations of its view of voice as a pro‐social behaviour. We argue that the OB conception of voice is at best partial because its definition of voice as an activity that benefits the organization leaves no room for considering voice as a means of challenging management, or indeed simply as being a vehicle for employee self‐determination.     

When Less is More: Distinguishing Between Entrepreneurial Choice and Performance

This paper uses NCDS data on individual characteristics to distinguish determinants of entrepreneurial choice, income and job generation. A new model of utility from self-employment shows that relaxing liquidity constraints could inhibit performance. Empirically, we find that a range of inheritance enhances the performance of the self-employed and increases self-employment; while higher education also increases self-employment income and job creation, but reduces the probability of self-employment. Combining these choice and performance effects, we find that education has a positive net effect on job creation, as does inheritance up to a certain threshold.     

Multivariate contemporaneous-threshold autoregressive models

This paper proposes a contemporaneous-threshold multivariate smooth transition autoregressive (C-MSTAR) model in which the regime weights depend on the ex-ante probabilities that latent regime-specific variables exceed certain threshold values. A key feature of the model is that the transition function depends on all the parameters of the model as well as on the data. Since the mixing weights are also a function of the regime-specific noise covariance matrix, the model can account for contemporaneous regime-specific co-movements of the variables. The stability and distributional properties of the proposed model are discussed, as well as issues of estimation, testing and forecasting. The practical usefulness of the C-MSTAR model is illustrated by examining the relationship between US stock prices and interest rates.     

Bridging the research-practice divide: Harnessing expertise collaboration in making a wider set of contributions

Understanding how we develop research contributions which go beyond conversations in the academic field is an enduring challenge. While much has been written on the importance of academic-practitioner relationships in the research process more is needed on conceptualizing how we develop a wider set of contributions. In this paper, we call for researchers to be reflective as to how different forms of expertise can be drawn on during collaborative relationships to bridge the research – practice divide. We develop a framework which combines different levels of expertise with varying forms of academic-practitioner collaboration to widen the impact of our research. Four strategies are proposed by which academics may leverage their expertise in collaborative relationships with practitioners to develop Research Impact and Contributions To Knowledge (RICK). These include: maintaining critical distance, promoting deeper engagement, developing prescience, and achieving hybrid practices. We discuss implementation approaches for each of these RICK strategies and suggest writing genres to help increase engagement by practitioners in research contributions.     

Innovation and HRM: Absences and politics

This article analyses the role of HRM practices in the implementation of an innovative cross-functional approach to new product development (concurrent engineering, CE) in Eurotech Industries. Contrary to CE methodology stipulations, and despite supportive conditions, HRM received scant attention in the implementation process. Organizational power and politics were clearly involved in this situation, and this article explores how their play created such HRM ‘absences’. The article builds on a four-dimensional view of power in order to provide a deeper understanding of the embedded, interdependent and political nature of HRM practice and innovation.     

How accurate are government forecasts of economic fundamentals? The case of Taiwan

A government’s ability to forecast key economic fundamentals accurately can affect business confidence, consumer sentiment, and foreign direct investment, among others. A government forecast based on an econometric model is replicable, whereas one that is not fully based on an econometric model is non-replicable. Governments typically provide non-replicable forecasts (or expert forecasts) of economic fundamentals, such as the inflation rate and real GDP growth rate.In this paper, we develop a methodology for evaluating non-replicable forecasts. We argue that in order to do so, one needs to retrieve from the non-replicable forecast its replicable component, and that it is the difference in accuracy between these two that matters. An empirical example to forecast economic fundamentals for Taiwan shows the relevance of the proposed methodological approach. Our main finding is that the undocumented knowledge of the Taiwanese government reduces forecast errors substantially.