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.     

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.     

Managed care and the near-elderly: effects of plan enrollment on functionality

This paper examines the effects of enrollment in a health maintenance organization (HMO) or a preferred provider organization (PPO) on the functional status of near-elderly adults (aged 55–64), compared to traditional fee-for-service (FFS) plans. A sample of 1306 near-elderly adults with employer-sponsored health insurance are drawn from the 2000–2002 waves of the Health and Retirement Study, a nationally representative panel survey of community-dwelling adults. Regression models are estimated to assess the effects of different types of insurance plans on functionality, as measured by whether or not the individual has any functional limitations. The potential influence of selection bias into alternative types of plans is addressed by limiting the sample to near-elders without a choice of health plans. The effects of HMOs on functionality are shown to be comparable to those of FFS plans among the general near-elderly population. However, significant adverse effects of HMO enrollment on functional status are observed among near-elders with chronic conditions. PPO enrollees have similar functional outcome to FFS enrollees, even among those with chronic conditions. The observed differences in functional outcome across plans have important implications for the practicality of managed care plans serving older adults.     

Evidence on the purchasing power parity in a panel of cities

Evidence is provided on the PPP hypothesis using a sample of 50 Spanish cities for a long time period through the application of panel data unit root tests. Although results suggest non-rejection of the PPP, short-run deviations – as measured by half-lives – indicate that real factors might be causing a slow rate of convergence to a common price index, even in highly integrated economies.     

Identity, intended image, construed image, and gnreputation: An interdisciplinary framework and suggested terminology

Many scholars across various academic disciplines are investigating the following questions: What do individuals know or believe about an organization? How does a focal organization (and/or other interested entity) develop, use, and/or change this information? and How do individuals respond to what they know or believe about an organization? Cross-disciplinary research that centers on these questions is desirable and could be enhanced if researchers identify and develop consistent terminology for framing these questions. The authors work toward that end by identifying four central ‘viewpoints’ of an organization and proposing labels to represent each of these viewpoints:identity, intended image, construed image, andreputation.