HEGY Tests in the Presence of Moving Averages*

We analyze the asymptotic distributions associated with the seasonal unit root tests of Hylleberg et al. (1990) for quarterly data when the innovations follow a moving average process. Although both the t‐ and F‐type tests suffer from scale and shift effects compared with the presumed null distributions when a fixed order of autoregressive augmentation is applied, these effects disappear when the order of augmentation is sufficiently large. However, as found by Burridge and Taylor (2001) for the autoregressive case, individual t‐ratio tests at the semi‐annual frequency are not pivotal even with high orders of augmentation, although the corresponding joint F‐type statistic is pivotal. Monte Carlo simulations verify the importance of the order of augmentation for finite samples generated by seasonally integrated moving average processes.     

The impact of coding time on the estimation of school effects

Multilevel growth curve models are becoming invaluable in educational research because they model changes in student outcomes efficiently. The coding of the time variable in these models plays a crucial role as illustrated in this study for the case of a three-level quadratic growth curve model. This paper shows clearly how the choice of a time coding affects school effects estimates and their interpretation. A new definition for school effects for growth curve models with random intercepts and slopes is proposed. This study recommends that the choice of a time coding should not only be based on the ease of interpretation and model convergence but also on its consequences on the student status and growth parameter estimates. The current application illustrates that in general the school effects for student growth in well-being and language achievement in secondary school, are greater for student growth than for student status.     

Performance Implications of IJV Boards: A Contingency Perspective

This study draws from the corporate governance literature to investigate the implications of board involvement for international joint ventures (IJVs). We extend recent corporate governance research on the value of board involvement by investigating unique sources of complexity related to the nature of the IJV. We argue and find that board involvement can enhance the performance of IJVs, particularly for collaborations that are complex in nature due to their broad functional scope as well the level of market overlap between IJV parents. We complement recent research on joint venture control that has focused on the antecedents and types of control, as well as studies on formal (e.g. contractual safeguards and monitoring) and informal governance mechanisms (e.g. trust) by providing empirical evidence that IJV board involvement is valuable when directors undertake their control and coordination responsibilities. We advance corporate governance research by providing evidence that joint ventures possess several unique characteristics that shape the value of board involvement, thereby showing that applications of corporate governance theory to joint ventures are useful, but should be made with care.     

Assessment and selection of management consultants: A comparative cognitive study between small- and large-scale companies

This paper explores alternative ways of evaluating and ultimately hiring a generalist consultancy for short- and medium-term projects, and how this is shaped by the size of the clients’ company. What buying factors do managers of small and large firms have in mind when hiring consultants for their projects?Instead of employing surveys incorporating predefined buying factors based on what the researchers think would be important, a cognitive mapping methodology - the repertory grid technique - is applied to investigate the underlying phenomena. Using the repertory grid technique to draw mental models is a novel research technique within the supply management field. Recent behavioral supply chain management research found the behavior of managers to be critically influenced by mental models: the lenses through which managers perceive, simplify and interpret the world.Results show differences between the buying factors used in small- and large-scale companies: managers of large companies are more ‘reputation and outcome-oriented’ and managers of small businesses are more concerned with ‘how the services are rendered’. However, both constituents stressed the importance of expertise, quality and the relationship between the client and the management consultancy, although the character of such a relationship differed between small- and large-scale firms. Results also point out criteria that managers of small and large companies employ to discriminate between good and poor performing consultancies and to judge service delivery. The practical implications for both companies hiring consultancies and the consultancy companies are discussed. For consultancies, our findings can help tailoring their efforts to a differing clientele when marketing and selling their services. For companies hiring consultancies, fixating too much on particular buying factors may lead to biased decisions.     

Information processing and leadership styles: Constructive thinking and transformational leadership

Transformational leaders increase job satisfaction and well‐being among workers. According to the cognitive‐experiential self‐theory (CEST), all behavior is guided by two information‐processing systems: a rational and an experiential system. Study 1 examined the relationship between information processing and transformational leadership among experienced school leaders (N = 183). The rational system had a strong positive correlation with transformational leadership, whereas the experiential system was weakly correlated. Study 2 (N = 126) examined constructive thinking and transformational leadership. Global constructive thinking, emotional coping, and behavioral coping all had strong positive correlations with transformational leadership. These results suggest that improving leaders' awareness of their own information‐processing and thinking systems might encourage more productive transformational‐leadership techniques.     

A change management perspective on public sector cutback management: towards a framework for analysis

The financial crisis forces public managers to implement cutbacks within their organization. We argue that adopting a change management perspective contributes to our understanding of cutback management by adding a focus on managerial behaviour regarding cutback-related organizational changes. Relying on change management literature, this paper develops a framework for the analysis of cutback management connecting the context, content, process, outcomes and leadership of cutback-related change. From this it follows that managers can be positioned at the intersection of various imperatives, both externally and internally, such as their political leaders and their own subordinates. A research agenda is proposed.     

Model selection in random effects models for directed graphs using approximated Bayes factors

With the development of an MCMC algorithm, Bayesian model selection for the p ₂ model for directed graphs has become possible. This paper presents an empirical exploration in using approximate Bayes factors for model selection. For a social network of Dutch secondary school pupils from different ethnic backgrounds it is investigated whether pupils report that they receive more emotional support from within their own ethnic group. Approximated Bayes factors seem to work, but considerable margins of error have to be reckoned with.     

A critical test of the choice questionnaire for collecting informed public opinions

In the Choice Questionnaire (Neijens et al. 1992) respondents have to choose between several policy options. Within this questionnaire they are provided with information about the consequences of each option. Until now, only indirect evidence as to whether or not respondents base their preferences on the information provided was available and plausible alternative explanations for the Choice Questionnaire's effect could not be ruled out. In the present study, we demonstrate that Choice Questionnaire respondents do base their preferences on the information provided: different information resulted in significantly different choices.     

VORACIOUS TRANSFORMATION OF A COMMON NATURAL RESOURCE INTO PRODUCTIVE CAPITAL*

I analyze a power struggle where competing factions have private financial assets and deplete a common stock of natural resources with no private property rights. I obtain a feedback Nash equilibrium to the dynamic common‐pool problem and obtain political variants of the Hotelling depletion rule and the Hartwick saving rule. Resource prices and depletion occur too fast, so substitution away from resources to capital occurs too fast and the saving rate is too high. The power struggle boosts output, but depresses sustainable consumption. Genuine saving is nevertheless zero in a fractionalized society. World Bank estimates may be too optimistic.