Stochastic modelling of herd behaviour indices

This paper proposes different diffusion processes to model herd behaviour indices such as the Herd Behaviour Index (HIX). These models arise by combining popular mean-reverting processes with simple algebraic functions mapping the definition domain of the underlying mean-reverting process to the unit interval. The so obtained Itô processes preserve, to some extent, the mean-reverting trend of the underlying process while satisfying the fundamental properties of the so-called herd behaviour indices. In a numerical study, we calibrate the different model settings to time series data for a period spanning from January 2000 until October 2009 and investigate their ability to predict the future behaviour of herd behaviour indices.     

Personalization has a Price,Controllability is the Currency: Predictors for the Intention to use Personalized eGovernment Websites

Content personalization on government websites provides individuals with a personal selection of information. In this study, we determine the role of trust in a government organization, trust in the technology, and perceived controllability on the intention to use content personalization for eGovernment websites. A total of 1141 participants were presented with scenarios describing a nonpersonalized webpage and one of four approaches to online content personalization, followed by an online survey. Results were analyzed by means of structural equation modeling. Perceived controllability is the most important antecedent of the intention to use online content personalization for eGovernment; trust in the technology also has a considerable influence. Trust in the government organization plays a minor role. The adaptable approach to online content personalization has the highest likelihood of citizen acceptance. When designing personalized eGovernment information services, designers should instill a feeling of controllability over the coming about of tailored content and trust in the technology.     

How do dimensions of proximity relate to the outcomes of collaboration? A survey of knowledge-intensive networks in the Dutch water sector

There is a growing body of literature on the importance of proximity for innovation and other knowledge-related outcomes. We examine the impact of geographical, social, organisational, and cognitive proximity for a heterogeneous population, including people from academia, knowledge institutes, industry, and government. We analyse data on 1020 ego–alter relationships, derived from a survey among water professionals in the Netherlands. The use of survey data allows for more refined indicators of proximity and more diverse collaboration outcomes than those common in the literature. Social and cognitive proximity have a positive effect for all outcomes examined. Geographical and organisational proximity have a negative effect on hard (tangible) outcomes yet a weak positive (if any) effect on soft (intangible) outcomes. We do not find evidence for the suggestions in the conceptual literature that proximity follows an inverted U-curve where most outcomes are achieved in relations with some but not too much proximity.     

Product Market Reforms and Productivity: A Review of the Theoretical and Empirical Literature on the Transmission Channels

Product market reforms are microeconomic structural reforms that aim to improve the functioning of product markets by increasing competition amongst producers of goods and services. Theoretical models suggest that regulation and reforms which liberalise or improve the functioning of markets can positively affect productivity through three different channels, namely a reallocation of scarce resources (allocative efficiency), an improvement in the utilisation of the production factors by firms (productive efficiency) and an incentive for firms to innovate to move to the modern technology frontier (dynamic efficiency). This paper reviews the theoretical and empirical literature on these three channels and discusses policy implications for the European Union.     

Do Not-For-Profits Make a Difference in Social Services? A Survey Study

Summary This paper provides a survey of the empirical literature on the relative performance of not-for-profit (NFP) organisations for three specific sectors. In particular, we compare the quality and accessibility of services that are provided by hospitals, child care organisations and welfare-to-work (WTW) organisations. Various mechanisms may explain the comparative advantages and disadvantages of not-for-profit organisations, as well as the origins of NFPs. We link these explanations to the actual relative performance of NFPs and discuss the implications for the government in mixed markets, where both for-profit (FP) and NFP organisations are. Our general finding is that NFPs do not make a difference on performance outcomes vis-à-vis FP organisations. It seems that the degree of competition, as well as regulatory policies are more important determinants of market performance.      

Dynamic Analysis of Income and Independence Effect of African American Female Labor Force Participation on Divorce

Despite a continuous increase in dissolution of marriages among African American females over time, no researchers have documented and published dynamic linkages among factors that cause African American family disruption. Using a contemporary time-series methodology, the study explores the dynamic impacts of African American female labor force participation rates (LFPR), incomes, and birth rates on divorce rates or vice versa. The study found that African American female divorce rates increase permanently as labor force participation rates increase, documenting a dominant independence effect of African American LFPR on divorce rates. The study also found that as more African American females participate in the labor market, birth rates decline over times.      

PAYG pension systems with capital mobility

This paper studies the design of an optimal pension scheme in an OLG and open economy model. The pension scheme provides a flat rate benefit and is based on the PAYG principle. It thus combines inter- and intra-generational redistribution. In this setting a number of symmetric economies are connected by an open and perfect capital market. When this number is very large, we have the small open economy case; when it is reduced to one, we have the case of autarky or perfect coordination. As the number of countries increases, there is more intragenerational redistribution, but less capital accumulation. JEL Code H55 · H87