Econometric modelling with non-normal disturbances

This paper analyzes a general class of non-normal density functions (dubbed Sargan densities) in the context of the ordinary regression model and the simple one-market disequilibrium model. Use of the normal density in disequilibrium models is unwieldy, especially for multimarket models, since the application of maximum likelihood methods requires numerical evaluation of multiple integrals. These difficulties are avoided with the Sargan densities, and based on both asymptotic results and limited sampling experiments, these densities appear to offer a promising alternative to the normal in disequilibrium models.     

IX. Geld und Kapital

Ohne Zusammenfassung     

Managers can drive their subordinates mad

This article explores the phenomenon of "folie à deux"--an aberrant relationship between manager and subordinates that is characterized by shared delusions. Though most visible among public figures like Adolf Hitler, J. Edgar Hoover and Jim Jones, the problem also surfaces among private managers and their associates with dangerous implications for the firm. In folie à deux, the unusual behavior patterns of a manager in an isolated setting become mirrored by dependent subordinates, and the organization loses touch with its original goals and strategies. The author describes the dynamics of this phenomenon and details steps to remedy the situation. Once recognized, he suggests that the manager establish a trusting relationship with the instigator as a prelude to altering the behavior patterns, then transfer the subordinates and reorient the work climate so that independence and responsibility are encouraged. If the instigator is a powerful executive, the author suggests enlisting the support of a countervailing force, such as the government or a union, to guide the organization away from possible self-destructive adventures.