Growth with or without Equity? The distributional impact of Indonesian development

This paper surveys articles that have examined and sought to explain the distributional change experienced in Indonesia during the past 30 years of rapid economic development. The literature is critically evaluated, and methodological difficulties and current data limitations are highlighted and point the way for advances in future research.     

Determining the economic gains from regulation at the extensive and intensive margins

Among the second-best approaches for the regulation of pollution,little attention has been paid to the distorting effect of intensivemargin policies on the extensive margin. This article shows,within a dynamic framework, that regulation of the intensivemargin has to be complemented by regulation of the extensivemargin. Depending on the elasticity of the pollution functionwith respect to nitrogen use, the appropriate regulation atthe extensive margin is zero, a tax or a subsidy. We show empiricallythat combining a nitrogen tax with land-use taxes is about 18per cent more cost efficient than a nitrogen tax alone and 58per cent more efficient than off-site abatement in the formof groundwater treatment.     

State dependency in youth unemployment: A lost generation?

Utilizing a job search framework and survey data on both completed and uncompleted spells of unemployment we present in this paper maximum likelihood estimates of the determinants of re-employment probabilities of young workers in Britain. The model used allows us to examine the importance of state dependency in youth unemployment as well as ethnicity, educational qualifications, and unemployment income. Results suggest that there is strong evidence of negative duration dependence in the transition from unemployment to employment for young workers in Britain.     

Product Market Competition,Managerial Incentives and Firm Valuation

This paper contributes to the very small empirical literature on the effects of competition on managerial incentive schemes. Based on a theoretical model that incorporates both strategic interaction between firms and a principal agent relationship, we analyse the relationship between product market competition, incentive schemes and firm valuation. The model predicts a nonlinear relationship between the intensity of product market competition and the strength of managerial incentives. We test the implications of our model empirically based on a unique and hand‐collected dataset comprising over 600 observations on 200 Swiss firms over the 2002–2005 period. Our results suggest that, consistent with the implications of our model, the relation between product market competition and managerial intensive schemes is convex indicating that above a certain level of intensity in product market competition, the marginal effect of competition on the strength of the incentive schemes increases in the level of competition. Moreover, competition is associated with lower firm values. These results are robust to accounting for a potential endogeneity of managerial incentives and firm value in a simultaneous equations framework.     

Roles, role performance, and radical innovation competences

Despite the importance of radical innovations (RI), few firms have the capability to develop such innovations internally; success is increasingly linked with relationships and networks. However, the way(s) in which relationships and networks support RI is less clear. Successfully launching RIs requires the development of four distinctive competences; discovery, incubation, acceleration and commercialization. This paper examines how networks support the development of RIs, focusing on when and how network partners become involved and how their role performances support the development of the four competences. The study context is the automotive industry, which is heavily dependent upon RI and complex interrelationships. Data were collected through in-depth interviews with network participants involved in developing several RIs. Five task-oriented and three network-oriented roles are uncovered and the performance of these roles supports the development of different competences, with some roles being exclusively connected with particular competences and others supporting several competences. Focusing on role performance offers a useful means for distinguishing between acontextual actors, and the activities and resources they bring. In doing so, the paper enhances understanding of the links between network participants, role performances and the development of RI competences, and identifies a number of important implications for theory and practice.     

The heterogenous relationship of food stamp participation with body mass: Quantile regression model

This study explores the heterogenous relationship between Food Stamp Program (FSP) participation and body mass index (BMI) for low income individuals whose per capita family income falls in the bottom two quintiles. We estimate changes in the dispersion of the entire distribution of BMI following FSP participation using a quantile regression model in both cross-sectional and longitudinal analyses. For women, we find that the mean OLS estimate of FSP participation underestimates the extent of the positive association with BMI at the top quantiles in both cross-sectional and longitudinal individual fixed effects models. Controlling for individual fixed effects in the quantile regression model reduces the estimated magnitude of the association by a factor of three to four, although the estimates remain statistically significant for women. For men, a marginally statistically significant positive association of FSP participation with BMI is found at the top quantiles compared to no statistically significant mean estimate although the association is no longer statistically significant when time-constant individual heterogeneity is adjusted for in the individual fixed effect models.     

The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary’s business network

Within business literature in general, capabilities have advanced to the prime determinant of the corporation’s economic rents. Within international business literature, it is further assumed that multinational corporations can enhance their pool of capabilities through foreign subsidiaries. Foreign subsidiaries are seen as means to assimilate new capabilities from their local, external network and integrate these capabilities into the multinational corporation. Data from more than 2000 foreign subsidiaries shows that some foreign units actually are endowed with superior capabilities which are useful for other corporate entities. It is argued that the development of critical capabilities within these subsidiaries is driven not only by internal corporate actors, but also by external actors. The analysis provides evidence that the role of different internal and external network partners for capability development varies according to the functional activity under consideration. Thus, subsidiaries benefit from various internal and external network actors in very different ways. The contribution ends with some conclusions and some avenues for future research.     

An outlier test for linear processes — II. Large contamination

In Flak/Schmid (1993) an outlier test for linear processes was introduced. The test statistic bases on a comparison of each observation with a one-step predictor. It was assumed that an upper bound for the total number of outlierss _n is known, wheren denotes the sample size. The asymptotic distribution of the test statistic was derived under the assumption thats _n/n → 0 ands _n → ∞ asn → ∞. This note deals with the asymptotic behaviour of this quantity, ifs _n/n →p ₀ ∈ (0, 1).     

Maternal Depression and the Production of Infant Health

Depression is most prevalent among women of childbearing age and among low-income women, and the medical literature shows it to have adverse effects on infant health. Yet maternal depression has been overlooked in economic studies of infant health production. This research incorporates maternal depressive symptoms into a standard infant health production model and estimates both structural and reduced-form birth weight equations using samples of non-Hispanic white and black women from the National Maternal and Infant Health Survey. A byproduct of this research is an empirical investigation into factors associated with maternal depressive symptoms. All results show that depressive symptoms have a negative effect on birth weight and that they may operate through several channels such as smoking and prenatal care.