Data Feature: Earnings Biases in the United Kingdom Regional Accounts: Some Economic Policy and Research Implications

Between the late 1970s and late 1980s, the UK Regional Accounts data suggest a much smaller rise in the South East earnings premium and consequently a much smaller increase in the regional dispersion of earnings than do the other sources of data. We discuss several possible explanations for this discrepancy and conclude it was probably due to problems at the Inland Revenue in allocating tax records across the regions. The historical unreliability of the Regional Accounts has implications for economic research on regional consumption and convergence and may have caused the poorest regions to miss out on EU Structural Funds.     

From R&D to strategic knowledge management: transitions and challenges for national laboratories

The past two decades have witnessed unprecedented changes to national laboratories as they have adjusted to globalized and technology based competition. These transitions are reviewed in the context of how Canada's National Research Council has progressed from an internally oriented R&D organization into a more externally focused innovation organization, now coping with the challenges of strategic knowledge management. The paper traces the steps and paradigms involved in this transition and offers some commentary on the extent of the corporate cultural learning that has been required to effect these changes.     

Comparisons of factor structures in separate consumer behavior studies

Three methods of comparing factor structures among separate factor analytic studies are examined. Examples are developed for each of the three methods, illustrating typical uses in different research settings. Major characteristics of the methods are compared and summarized. The article is essentially a non-technical and nonexhaustive overview of comparison methods directed to researchers not fully acquainted with the function and utility of these comparatively new techniques. The examples used are developed from a large-scale consumer study, but applications obviously extend to a much broader group of business research situations.     

Commentary on Janet Landa's Paper

In her paper, Janet Landa argues that the key behind the success of the ethnically homogeneous Chinese middleman group (EHMG) is their highly developed in-group cooperation. She places the EHMG phenomenon within the framework of evolutionary biology by calling it 'a cultural transmission unit' subject to the influence of both genes and culture. Landa suggests that the individual members of the EHMG comprise the units of selection for EHMG groups much like the genes comprise the units of selection for individual organisms. However, evolution occurs through the differential survival and reproduction of individual organisms. In order to meet the criteria of biological group selection, it would have to be demonstrated that groups in competition with EHMGs had gone extinct. The fact that the EHMGs are simply faring better than their competitors is not evidence for group selection. The other reason biological group selection is not really applicable to EHMGs is that there are no physical/biological barriers to exogamous mating, and cultural barriers are intrinsically unstable.     

The Endowment Effect and Repeated Market Trials: Is the Vickrey Auction Demand Revealing?

The difference between people's valuations of gains and losses has been widely observed in both single trial and repeated trial experiments, as well as in survey responses and in commonplace behavior. However, the results of some Vickrey auction experiments indicate that the disparity may decrease, or even disappear, over repeated trials. This paper reports the results of two further repeated Vickrey auction experiments that test the impact of both a second price and a ninth price auction rule on valuations. Although valuations should be independent of this variation in the exchange price rule, the manipulation had a dramatic impact on subjects' stated values of a common market good. The results suggest that the endowment effect remains robust over repeated trials, and that contrary to common understanding, the Vickrey auction may elicit differing demands dependent on the context of the valuation.     

What Makes a New Business Start-Up Successful?

This paper seeks a good measure of new business performance, and then explains this measure by various dimensions of business strategy. Three criteria are used to create a one dimensional ordinal ranking of high, medium and low performance for new business starts: employment growth; return on capital employed; and labour productivity. It is shown that statistical cluster analysis provides a convincing separation of a sample of new business starts into high, medium and low performance categories, using a minimum distance criterion for clustering. An ordinal logit model (with selection) is then used to explain this performance ranking. The results indicate that many widely discussed features of small business strategy have little, or even negative, impact on performance. Of the numerous aims that owner managers may adopt (survival, growth etc.), only one appears to have a major impact on performance; the pursuit of the highest rate of return on investment. Many entrepreneurial perceptions of their own capabilities appear false or unimportant, with the exception of organisational features and systems.