Aggressive oil extraction and precautionary saving: Coping with volatility

The effects of stochastic oil demand on optimal oil extraction paths and tax, spending and government debt policies are analyzed when the oil demand schedule is linear and preferences quadratic. Without prudence, optimal oil extraction is governed by the Hotelling rule and optimal budgetary policies by the tax and consumption smoothing principle. Volatile oil demand brings forward oil extraction and induces a bigger government surplus. With prudence, the government depletes oil reserves even more aggressively and engages in additional precautionary saving financed by postponing spending and bringing taxes forward, especially if it has substantial monopoly power on the oil market, gives high priority to the public spending target, is very prudent, and future oil demand has high variance. Uncertain economic prospects induce even higher precautionary saving and, if non-oil revenue shocks and oil revenue shocks are positively correlated, even more aggressive oil extraction. In contrast, prudent governments deliberately underestimate oil reserves which induce less aggressive oil depletion and less government saving, but less so if uncertainty about reserves and oil demand are positively correlated.     

Eco-efficient choice of cropping system for reducing nitrate-N leaching in an agricultural watershed

Eco-efficiency analysis framework was used to evaluate joint economic and environmentally optimal N application rates for alternative cropping systems managed in a watershed in Atlantic Canada. Eco-efficiency indexes were estimated as the ratio of economic returns from N fertilizer application to groundwater-N leaching associated with crop production. Trade-offs between crop yield and associated reduction in groundwater-N leaching were also estimated. Data for the analysis were generated using the soil and water analysis tool modeling, and allowed for evaluating crop yield and groundwater-N leaching effects for a given crop in rotations assumed to be managed at varying N fertilizer application rates. The cropping systems evaluated included: (i) corn-based cropping systems involving corn–corn–alfalfa–alfalfa–alfalfa (CCAAA, and CCCAA) rotations; (ii) potato-based cropping systems involving potato–corn–barley–potato–corn (PCBPC and PBWPC); and (iii) vegetable-horticulture cropping system involving potato–winter wheat–carrot–corn. Cropping systems were compared under conventional tillage (CT) and no-till (NT) systems. Estimated eco-efficient N fertilizer rates were substantially lower than current provincial nutrient management plan (NMP)-recommended rates, and estimated maximum economic rate of nitrogen fertilizer. However, the actual amounts depended on the crop and rotation system. CCAAA-CT was the eco-efficient choice of rotation system among the corn-based cropping systems considered. Similarly, PCBPC-CT was the eco-efficient choice among the potato-based production systems. In addition, when the NMP-recommended N rate was replaced by the eco-efficient rate for the vegetable horticulture cropping system, the eco-efficient cropping system shifted from a rotation involving CT to a NT system.     

Lone wolves reciprocate less deviance: a moral identity model of abusive supervision*

Abstract

Although previous studies provide diverse perspectives on the influences of abusive supervision, the moral perspective receives little attention in the literature. We rely on social cognitive theory to present a moral identity model of abusive supervision that accounts for the influences of perceiving abusive supervision on organizational and interpersonal deviance. In particular, we propose that employee moral identity mediates the positive relations between abusive supervision, as perceived by followers, and their subsequent organizational and interpersonal deviance. We also test the extent to which lone wolf tendencies alleviate the main negative impact of abusive supervision on moral identity and the indirect effect of abusive supervision on organizational and interpersonal deviance through moral identity. More specifically, when the level of lone wolf tendencies is high, the relationship between abusive supervision and moral identity, and the magnitude of the moral identity mediating mechanism will be weaker. Using multi-wave, multiple-source data collected in China, our findings support most of our hypotheses and offer insightful theoretical directions for mistreatment, morality, and disposition research. Our moderated mediation model serves as a springboard for future research to understand the social cognitive processes that link abusive supervision and deviant behavior from the moral perspective.     

Enhancing the Ability of Business Students to Recognize Ethical Issues: An Empirical Assessment of the Effectiveness of a Course in Business Ethics

This paper presents the results of a study of the effect of a business ethics course in enhancing the ability of students to recognize ethical issues. The findings show that compared to students who do not complete such a course, students enrolled in a business ethics course experience substantial improvement in that ability.