The Signal of Applying for a Job Under a Vacancy Referral Scheme

We investigate the signalling effect related to participation in active labor‐market programs. To this end, we conduct an experiment in which human resources professionals make hiring decisions concerning fictitious job candidates who apply either under a job‐vacancy referral system or directly. We provide first causal evidence for a substantial adverse effect of referral on the probability of being hired. In addition, we find that employers perceive referred candidates as being less motivated than other candidates.     

Trade Elasticity,Gravity and Trade Liberalisation: Evidence from the Food Industry

We present an econometric investigation of the trade effect produced by the elimination of tariffs in 18 food sectors for a large sample of developing and developed countries. The standard CES monopolistic competition trade model and the gravity equation were used to estimate trade substitution elasticities, exploring their sensitivity to different estimation methods. Using these elasticities, we simulate the trade effect of the elimination of tariffs, dealing with the problem of uncertainty in the estimated values. Results point to a significant variation in the elasticities estimated by different econometric methods, suggesting that the Poisson pseudo‐maximum‐likelihood estimator significantly inflates their magnitude. Simulation results indicate that trade liberalisation will strongly increase food exports especially from high income and emerging countries, leading to a general loss of market share by developing countries. The simulated trade flows obtained from the econometric approach are quite close to current evidence based on computable general equilibrium models.     

Macroeconomic determinants of stock volatility and volatility premiums

How does stock market volatility relate to the business cycle? We develop, and estimate, a no-arbitrage model, and find that (i) the level and fluctuations of stock volatility are largely explained by business cycle factors and (ii) some unobserved factor contributes to nearly 20% to the overall variation in volatility, although not to its ups and downs. Instead, this “volatility of volatility” relates to the business cycle. Finally, volatility risk-premiums are strongly countercyclical, even more than stock volatility, and partially explain the large swings of the VIX index during the 2007–2009 subprime crisis, which our model captures in out-of-sample experiments.     

Different approaches to measure ego-centered social support networks: a meta-analysis

Survey indicators of social networks usually measure a certain function of social networks, for example exchange of social support. Social support is a multidimensional construct. The most comprehensive definition distinguishes among sources of social support (social support networks), supportive acts and appraisal of given support. Generally, two main hypotheses can be given with regard to the role social support plays in quality of life of individuals: that social support is beneficial as such (main effects), or that social support is beneficial at occasions of stressful events (buffer effect). In this paper we are dealing with survey measurement of ego-centered social support networks. Three methods to social network measurement are compared: the name generator method, the role generator method and the event-related approach. In a meta-analysis of several studies done on convenient quota samples the effects of method, type of calculation, response format and limitation of support providers on network composition indicators are studied.     

Corporate governance and regulation: Can there be too much of a good thing?

We investigate how company-level corporate governance practices and country-level legal investor protection jointly affect company performance. We find that in any legal regime there are a few specific governance practices that improve performance. Companies with good governance practices operating in stringent legal environments, however, show a valuation discount relative to similar companies operating in flexible legal environments. At the same time, a stronger country-level regime does not reduce the valuation discount of companies with weak governance practices. Our analysis suggests a threshold level of country development above which stringent regulation hurts the performance of well governed companies or has a neutral effect for poorly governed companies.     

Value stream mapping implementation in the third sector

An analysis of the development of non-profit organizations highlights critical issues related to the efficiency and strategic capacity of many organizations. To do this, it is necessary to use management models that combine the effectiveness of social solidarity with acceptable levels of efficiency. This study focuses on the application of Value Stream Mapping (VSM) to reorganize the work placement service in one of Italy??s major third sector organizations. A telephone survey, administered to 184 diocesan counseling services, provided an exhaustive overview of the macro-environment and the work placement service features. The process re-engineering is dealt with by an interdisciplinary approach. Implementing the Allison and Kaye model provides an approach specific to non-profit organizations. Furthermore, the use of VSM in the strategic planning enriches the model itself and provides a practical and pragmatic approach typical of re-engineering that focuses on the organization??s objectives. VSM allows the identification of the critical points in the value flow chain, and the suggested actions support the development of the work placement service.     

The effect of data transformation on common cycle,cointegration, and unit root tests: Monte Carlo results and a simple test

Cointegration, common cycle, and related tests statistics are often constructed using logged data, even without clear reason why logs should be used rather than levels. Unfortunately, it is also the case that standard data transformation tests, such as those based on Box–Cox transformations, cannot be shown to be consistent unless assumptions concerning whether variables I(0)$I(0)$ or I(1)$I(1)$ are made. In this paper, we propose a simple randomized procedure for choosing between levels and log-levels specifications in the (possible) presence of deterministic and/or stochastic trends, and discuss the impact of incorrect data transformation on common cycle, cointegration and unit root tests.