Reliable Inference in Categorical Regression Analysis for Non‐randomly Coarsened Observations

In most surveys, one is confronted with missing or, more generally, coarse data. Traditional methods dealing with these data require strong, untestable and often doubtful assumptions, for example, coarsening at random. But due to the resulting, potentially severe bias, there is a growing interest in approaches that only include tenable knowledge about the coarsening process, leading to imprecise but reliable results. In this spirit, we study regression analysis with a coarse categorical‐dependent variable and precisely observed categorical covariates. Our (profile) likelihood‐based approach can incorporate weak knowledge about the coarsening process and thus offers a synthesis of traditional methods and cautious strategies refraining from any coarsening assumptions. This also allows a discussion of the uncertainty about the coarsening process, besides sampling uncertainty and model uncertainty. Our procedure is illustrated with data of the panel study ‘Labour market and social security' conducted by the Institute for Employment Research, whose questionnaire design produces coarse data.     

Conducting Mode 2 research in HRM: A phase‐based framework

Recent studies in the field of human resource management (HRM) have highlighted that current research is mostly performed and consumed by academics, and is driven by theoretical and disciplinary concerns rather than practical ones. This debate has invoked the need to produce more Mode 2 research in the HRM field, that is, research driven by practical problems that integrate collaborative efforts by academics and practitioners. Yet, guidelines on how academics and practitioners may implement Mode 2 research remain disjointed and incomplete. Our study provides a phase‐based collaborative‐based framework for the implementation of Mode 2 research in the HRM field, in ways that both academic rigor and practical relevance are achieved. Our framework is informed by a comprehensive review of previous Mode 2 research, within and outside the HRM field. The proposed framework details four macro‐phases: the codevelopment of research questions with practitioners; the design of collaborative spaces and mechanisms; the design and management of double‐loop iterative research processes; and finally the academic and practice legitimization of Mode 2 outcomes. Our framework has the objective to support HRM researchers and practitioners, as well as relevant institutions and gatekeepers in the design, implementation, education, and assessment of Mode 2 research.     

The effects of economic news on commodity prices

We assess how commodity prices respond to macroeconomic news and show that commodities have been relatively insensitive to such news over daily frequencies between 1997 and 2009 compared to other financial assets and major exchange rates. Where commodity prices are influenced by news, there is a pro-cyclical bias and these sensitivities have risen as commodities have become increasingly financialized. However, models based on news still do a relatively poor job of forecasting commodity prices at daily frequencies. We also find some asymmetries in how commodity prices respond to news, most notably for gold, which alone among commodities acts as a safe-haven when “bad” economic news emerges.     

Understanding employee preferences for investing in employer stock: evidence from France

In this article, we broaden the focus of existing research on employee stock purchase plans by analysing employee preferences for investing in employer stock as a construct distinct from actual investment behaviour. In our analysis of original survey data in a sample of 900 employees in four French companies, we find that employee preferences are influenced by two common cognitive heuristics (representativeness and familiarity), organisational commitment, the perceived quality of corporate communications about these plans and perceived managerial commitment to employee ownership. We did not find, however, that risk aversion, turnover intentions or perceived employee involvement in decision making influenced preferences for investing in employer stock. Our findings have both theoretical and practical implications for understanding and operating these types of employee benefit plans, which are becoming more common across the globe.     

EXTREME VALUE THEORY IN FINANCE: A SURVEY

Extreme value theory is concerned with the study of the asymptotic distribution of extreme events, that is to say events which are rare in frequency and huge in magnitude with respect to the majority of observations. Statistical methods derived from it have been employed increasingly in finance, especially for risk measurement. This paper surveys some of those main applications, namely for testing different distributional assumptions for the data, for Value‐at‐Risk and Expected Shortfall calculations, for asset allocation under safety‐first type constraints, and for the study of contagion and dependence across markets under conditions of stress.     

Bids as a Vehicle of (Mis)Information: Collusion in English Auctions with Affiliated Values

In an English auction, a bidder’s strategy depends on the prices at which his competitors drop out, because these convey information on the value of the object on sale. A ring of colluding bidders can strategically manipulate the information transmitted through its members’ bids, in order to mislead other bidders into bidding less aggressively and thus allow a designated bidder to bid more aggressively. Collusion increases the probability that the ring wins the auction and reduces the price it pays. The presence of a ring harms other bidders (as well as the seller) and reduces efficiency.     

Peer punishment in teams: expressive or instrumental choice?

A key question about human societies is how social norms of cooperation are enforced. Subjects who violate norms are often targeted by their peers for punishment. In an experiment with small teams we examine whether subjects treat punishment itself as a second-order public good. Results do not support this view and rather suggest a hard-wired taste for punishment; subjects are engaged in a cooperative task but ignore the public good characteristics of punishment.     

Innovation and ICT use in the EU: an analysis of regional drivers

Innovation and the use of information and communication technologies (ICT) are key areas for the European Cohesion Policy. Studies available at the regional level explore innovation and ICT use incorporating different variables, while those investigating ICT use mainly focus on that of households. This paper investigates the existence of common factors for innovation and ICT at the regional level, considering not only ICT use by households but also that of firms. Using factorial and spatial regression analysis, we find that although ICT use and innovation are mainly explained by different variables, knowledge-intensive services and the percentage of population aged 15–64 are common to all of them. In addition, ICT use by households and ICT use by firms are basically driven by different factors. Government quality is the main factor explaining ICT use at home, while ICT use by firms is mostly driven by employment in knowledge-intensive services. R&D is the main variable explaining innovation. We also find positive spatial effects, which are particularly notable in ICT use by households. The results stress the importance of promoting specialization strategies based on the knowledge economy that may contribute to creating synergies between innovation and ICT use in different environments.     

The impact of peer ratings on cooperation: The role of information and cost of rating

In this study, we experimentally analyze the effectiveness of payoff‐irrelevant peer‐to‐peer ratings as a cooperation enforcement device in a finitely repeated public goods game setting. We run two treatments that differ in the amount of information on own and others' received rating points provided to the players, whereas, in a third treatment, we analyze peer approval when assigning ratings to others is costly. In particular, we wonder whether, even under anonymity and in the absence of reputational concerns, (a) players rate others' contribution decisions in the expected direction and (b) the peer rating mechanisms under study foster cooperation and welfare. Our findings reveal that, in the two costless rating treatments, peer rating concerns lead to higher contributions and efficiency, compared to our control. Introducing a small fixed cost for assigning rating points results in a very high percentage of subjects deciding not to rate others' behavior, so that cooperation cannot be enforced.