Factors of Immobility: Why the Unemployment Rate is Slow to Adjust

During the recent recession and the continuing recovery, the national unemployment rate has maintained a level that has only been observed one other time since the Great Depression. While the initial causes of the increased unemployment rate are documented, the adjustment process and reduction of unemployment rates back toward some natural rate has not been addressed empirically. In this paper, the authors analyze labor supply side factors that may cause unemployment rates to remain high for a longer period than the typical recession. The authors focus on the impact of unemployment insurance extensions, housing market contractions and the general breadth of the economic downturn as factors that slow the labor supply adjustment process and lead to prolonged high rates of unemployment.     

Beyond technical skills training: The impact of credit counseling on the entrepreneurial behavior of Ugandan youth

There is low take‐up of financial credit among youth in Uganda because potential beneficiaries perceive associated risks as high. This study assesses the determinants of entrepreneurial risk tolerance among Ugandan youth using experimental data from a randomized control trial and a real‐life investment‐risk experiment. Credit counseling was provided to young men and women aged 18–35 who owned a business to educate them about the obligations and commitments associated with financial credit. The intervention had a significant impact on demand for credit and related intermediate outcomes such as ownership of a bank account and investment in assets. The study finds that youth exhibited lower demand for credit after business training because of increased awareness regarding the actual risks associated with receiving credit. Our findings reinforce national strategies to promote soft skills for business entrepreneurship that extend beyond standard business training.     

Home bias in divestment decisions of multinational corporations in the EU

We empirically investigate the claim that multinational corporations (MNCs) suffer from a “home bias” in divestment decisions: MNCs prefer to divest from foreign subsidiaries because the “emotional involvement” and the commitment in divesting from domestic subsidiaries is larger. This issue has not been yet empirically explored in the economic literature, although it is quite recurrent in the political debate on MNCs and FDI. Using detailed company‐level data on the EU corporate groups during the economic crisis (2008–2014), we show that, in spite of prima facie empirical evidence of a home bias, the bias disappears when firm‐, country‐, and sector‐specific factors are accounted for.     

Forging new relationships: Social capital in the transistion

A theory of transitional economies is now emerging, much of which is evolutionary-institutional in nature and hence very critical of the naïveté of socalled shock therapy and the economic reasoning that supported it. Indeed it has become apparent that changing the formal rules of the game, difficult as this may be, is far from sufficient. The informal rules of the game, the customs and norms of the social order, are critical to the operation of the economy. These informal rules are often implicit or tacit, and therefore very difficult to reach on a policy level. This paper seeks to apply the concept of social capital to the transitional economic process using the former Soviet republic of Russia to draw attention to the complex issues of governance and legitimacy that are too often neglected in economic discourse.     

Investment Frictions and the Aggregate Output Loss in China

Investment frictions reduce, delay or protract investment expenditure that is necessary for firms to capture growth opportunities. Using a capital adjustment costs framework, this article estimates the gap between China's actual and frictionless aggregate output. It applies the method of simulated moments to a fully structural investment model on a panel of Chinese firms and takes into account potential unobserved heterogeneities and measurement error in the data. The estimated capital adjustment costs imply that if Chinese firms had faced a lower level of adjustment costs such as in the US, China's aggregate output would be 25% higher.     

Healthcare resource utilization and direct medical costs associated with index and recurrent Clostridioides difficile infection: a real-world data analysis

Abstract

Aims: This study aimed to evaluate all-cause economic outcomes, healthcare resource utilization (HRU), and costs in patients with Clostridioides difficile infection (CDI) and recurrent CDI (rCDI) using commercial claims from a large database representing various healthcare settings.

Materials and methods: A retrospective analysis of commercial claims data from the IQVIA PharMetrics Plus database was conducted for patients aged 18–64 years with CDI episodes requiring inpatient stay with CDI diagnosis code or an outpatient medical claim for CDI plus a CDI treatment. Index CDI episodes occurred between 1 January 2010 and 30 June 2017, including only those where patients were observable 6 months before and 12 months after the index episode. Each CDI episode was followed by a 14-d claim-free period. rCDI was defined as another CDI episode within an 8-week window following the claim-free period. HRU, all-cause direct medical costs and time to rCDI were calculated over 12 months and stratified by number of rCDI episodes.

Results: A total of 46,571 patients with index CDI were included. Mean time from one CDI episode to the next was approximately 1 month. In the 12-month follow-up period, those with no recurrence had 1.4 inpatient visits per person and those with 3 or more recurrences had 5.8. Most patients with 3 or more recurrences had 2 or more hospital admissions. The mean annual, total all-cause direct medical costs per patient were $71,980 for those with no recurrence and $207,733 for those with 3 or more recurrences.

Limitations: The study included individuals 18–64 years only. A stringent definition of rCDI was used, which may have underestimated the incidence of rCDI.

Conclusions: CDI and rCDI are associated with substantial healthcare resource utilization and direct medical costs. Timing of recurrences can be predictable, providing a window of opportunity for interventions. Prevention of multiple rCDI appears essential to reduce healthcare costs.     

Does alignment matter? The performance implications of HR roles connected to organizational strategy

For the HR function to have a positive impact on performance and thus strategically add value to the organization, it has been suggested to redefine its traditional operational role. However, to gain a deeper understanding of the relationship between these HR roles and performance, their alignment with the organizational strategy should not be ignored. In this paper, we therefore focus not only on whether the operational and strategic HR roles are linked to performance, but also on the extent to which their alignment with the applied organizational strategy actually matters for performance. We carried out a survey study among 336 respondents either holding an HR function or being responsible for HR-related tasks in various organizations. We found a positive effect of the strategic role on performance, and also how it might substitute a lack of innovation strategy. Further, we found an alignment effect between a cost strategy and the operational HR role in relation to organizational performance. We discuss these findings based on the literature and provide some practical recommendations for further developing the role of HR.     

Food Deserts and Real‐Estate‐Led Social Policy

Since the early 2000s in the United States, food deserts—neighborhoods in which households have limited geographic access to full‐service supermarkets or grocery stores— have become conceptually central in public policy research on food security. Analyzing this phenomenon from a ‘policy mobility’ perspective, this article traces the food desert's emergence in policy discourse, locating it within an entrepreneurial social policy paradigm that privileges real estate development over direct economic relief. In the context of property‐led anti‐poverty efforts, the identification and mapping of food deserts catalyzes a logic that leads to subsidy to grocery store development in low‐income areas (or ‘fresh food financing’), while at the same time officials are cutting programs such as the Supplemental Nutrition Assistance Program (food stamps), which directly supplements household food budgets. The article contributes to widening critical discussion of the food desert paradigm and the policy interventions with which it is associated. It calls on urban researchers and practitioners to reframe discussions of food access and nutrition around the shortage of basic income and a need for higher wage floors.     

Comparative management accounting in Europe: an undergraduate education perspective

The article reports the results of a survey conducted in 86 undergraduate education institutions in 16 countries in Europe. The primary goals of the analysis are to provide information on management accounting courses in Europe and to investigate whether the most innovative topics in management accounting are taught. The survey targeted accounting professors across Europe, mainly members of the European Accounting Association. Data evidence similarities across countries inasmuch a very similar pool of topics is taught in different institutions in different countries. However, differences outweigh similarities when comparing the relative importance attributed to various topics within a course.     

TIME‐VARYING DYNAMICS OF THE REAL EXCHANGE RATE: AN EMPIRICAL ANALYSIS

We use a time‐varying structural vector autoregression to investigate evolving dynamics of the real exchange rate for the UK, euro area and Canada. We show that demand and nominal shocks have a substantially larger impact on the real exchange rate after the mid 1980s. Real exchange rate volatility, relative to fundamentals, also shows a marked increase after this point in time. However, there is some evidence suggesting a closer business cycle co‐movement of the real exchange rate and fundamentals. Simulations from an open‐economy DSGE model show that these results are consistent with a decline in exchange rate pass‐through. Copyright © 2012 John Wiley & Sons, Ltd.