Can sustainable consumption be learned? A model of cultural evolution

This paper shows how sustainable consumption patterns can spread within a population via processes of social learning even though a strong individual learning bias may favor environmentally harmful products. We present a model depicting how the biased transmission of different behaviors via individual and social learning influences agents' consumption behavior. The underlying learning biases can be traced back to evolved cognitive dispositions. Challenging the vision of a permanent transition toward sustainability, we argue that “green” consumption patterns are not self-reinforcing and cannot be “locked in” permanently.     

Difference in difference meets generalized least squares: Higher order properties of hypotheses tests

We investigate the estimation and inference in difference in difference econometric models used in the analysis of treatment effects. When the innovations in such models display serial correlation, commonly used ordinary least squares (OLS) procedures are inefficient and may lead to tests with incorrect size. Implementation of feasible generalized least squares (FGLS) procedures is often hindered by too few observations in the cross-section to allow for unrestricted estimation of the weight matrix without leading to tests with similar size distortions as conventional OLS based procedures. We analyze the small sample properties of FGLS based tests with a formal higher order Edgeworth expansion that allows us to construct a size corrected version of the test. We also address the question of optimal temporal aggregation as a method to reduce the dimension of the weight matrix. We apply our procedure to data on regulation of mobile telephone service prices. We find that a size corrected FGLS based test outperforms tests based on OLS.     

CES and Translog parameter estimates in a SAM-based regional general equilibrium framework

The computation of General Equilibrium models crucially depends on Social Accounting Matrix (SAM)-based calibration and on how estimation/imputation are performed to reproduce the benchmark dataset as an equilibrium solution. In this paper, theoretical contributions are provided by suggesting a new procedure in which the production function parameters and the elasticity of substitution are estimated by resorting to the data contained in the SAM. To this aim, the Generalized Cross-Entropy estimator is used. Application of this self-contained procedure to the regional SAM for the Italian region Tuscany leads to empirical results consisting of the estimates of the elasticities of substitution of Constant Elasticity of Substitution and Translog production functions consistent with the theoretical background. This yields a more efficient and effective solution of Computable General Equilibrium models.     

Stimulating Strategically Aligned Behaviour Among Employees

Strategically aligned behaviour (SAB), i.e. employee action that is consistent with the company's strategy, is of vital importance to companies. This study provides insights into the way managers could promote such behaviour among employees (who can be managers as well) by stimulating employee motivation, by informing employees, and by stimulating the development of their capabilities. The results of surveys conducted in three organizations suggest that, first, perceived efforts by management aimed at motivating and informing employees (both managers and non-managers), and at developing their capabilities, each are related to SAB. Second, among the perceived efforts to stimulate motivation among employees, providing a rationale for the strategy and an open communication climate have a stronger relationship with SAB than participation in decision making and supportiveness. Third, the perceptions of the different types of managerial effort are related to each other. For this reason, the efforts have direct as well as indirect relationships to SAB. Fourth, each of the perceived efforts seems to be complementary to the others, in the sense that the relationship of one type of effort to SAB is stronger when other types of effort are perceived to be higher.     

Managing Legitimacy in Complex and Heterogeneous Environments: Sustainable Development in a Globalized World

The sustainability problems with regard to the production, distribution, and consumption of goods and services increasingly challenge the legitimacy of corporations. The literature distinguishes three strategies that corporations commonly employ to respond to legitimacy problems: adapt to external expectations, manipulate the perception of their stakeholders, or engage in a discourse with those who question their legitimacy. We discuss three approaches to determine the appropriate response strategy: one‐best‐way approach, contingency approach, and paradox approach. We argue that in the face of heterogeneous environments with conflicting demands, corporations that follow a paradox approach are likely to be more successful in preserving their legitimacy than those that adopt one of the other two approaches. We develop a theoretical framework for the application of different response strategies and explore the management of paradoxes by way of structural, contextual, or reflective means.     

Does it Pay to Work for Free? Negative Selection and the Wage Returns to Volunteer Experience

This paper offers the first instrumental variables estimates of the wage returns to volunteer experience. The returns are substantial and differ considerably by gender. The results imply that the unequal valuation of volunteer experience by gender is more important in explaining the gender earnings gap than is the unequal valuation of part‐time paid work experience. The results also indicate negative selection into unpaid work. In a simple model of optimal volunteering, negative selection implies that a lower cost of volunteering would produce both an expanded and higher‐skilled pool of volunteers, and greater societal benefits from volunteer work.     

Economic growth and poverty traps in sub-Saharan Africa: The role of education and TFP shocks

This paper investigates the “education-total factor productivity trade-off” in explaining income per worker differences between sub-Saharan (unlucky) and G7 (lucky) economies. First, we examine the dynamics of average years of schooling (i.e. education), capital per worker, income per worker, and total factor productivity (TFP) across sub-Saharan and G7 countries. We confirm that physical capital and education levels partially explain income per worker differences between lucky and unlucky economies. Second, we undertake a novel examination of the impact of technology shocks on income per worker, with the goal of understanding the role of technology variation in causing cross-country income per worker differences, and as a potential contributor to overall slow growth in the sub-Saharan region. In a vector autoregressive (VAR) framework, we show that the impact of “ad hoc” TFP shocks on income per worker is larger in unlucky economies than in lucky ones. We observe that average TFP volatility in the “unlucky world” is eight times higher than in the “G7 world”. We argue that the order of magnitude of the impact heavily depends on the level of the TFP volatility. Last, we suggest that the documented differences in the amount of physical capital and in the productivity of human capital between these two regions add conceptual support for the existence of poverty traps for sub-Saharan Africa.     

Exporting firms and the demand for skilled tasks

This paper explores the link between exports and the demand for skilled tasks. Using the Chilean Encuesta Nacional Industrial Anual (ENIA), an annual census of manufacturing firms, we first show that Chilean exporters utilize more skills than Chilean non‐exporters. More importantly, we establish a distinct pattern of task differentiation among exporters both within skilled and unskilled tasks. Exporting firms demand the services of skilled specialized workers (engineers) as opposed to skilled administrative workers and managers. In addition, exporters demand less unskilled labour, especially blue‐collar operatives. This suggests that exporters substitute skilled engineers for unskilled blue‐collar workers to perform export‐related tasks.