Capability matters: Relating student achievement on the comprehensive business exam to skill and effort

This study is the first to explore how skill and effort drive student achievement using a framework developed by Duckworth, Eichstaedt, and Unger (2015). A statistically significant achievement difference, as measured by Comprehensive Business Exam score during the last semester in college, was identified when students were separated by standard deviations from the ACT score mean, a measure of college entry-level skill. Implications for assurance of learning assessment are presented and possible avenues of remediation are considered.     

Motivating Employees with Goal-Based Prosocial Rewards*

A recent trend in organizations is to motivate employees with goal-based prosocial rewards, whereby employees must donate their rewards to charities upon goal attainment. We examine the motivational effects of goal-based prosocial rewards versus cash rewards under different levels of goal difficulty. We develop our hypotheses based on affective valuation theory, which posits that when valuing uncertain outcomes by affect rather than calculation, individuals are largely insensitive to changes in probability of the outcomes, including probability of goal attainment. Experiment results support our hypotheses. Specifically, we find that employees who are rewarded with prosocial (vs. cash) goal-based rewards are more likely to adopt an affective valuation approach. Consequently, when employees are assigned either an easy goal or a stretch goal, their effort is higher when incentivized with a goal-based prosocial reward than a cash reward. Furthermore, there is a less curve-linear relationship between goal difficulty and effort with prosocial (vs. cash) goal-based rewards. These findings highlight for incentive system designers the motivational advantage of goal-based prosocial rewards relative to traditional cash rewards. Furthermore, we extend the academic literature by showing how affect-rich rewards such as prosocial rewards can influence employees' assessment of the probability of goal attainment.     

Sub-Saharan Africa's rising public debt stock: Is there a cause for concern?

The study investigated public debt sustainability in sub-Saharan Africa (SSA) by testing the reaction of the primary balance to positive and negative shocks in public debts in a panel of 45 SSA countries. The study adopts the innovative nonlinear fiscal reaction function and the dynamic panel threshold model to account for the potential asymmetric phenomenon in the public debt series. In line with extant studies, the study found that public debts in SSA are weakly sustainable and there is a highly procyclical fiscal policy bias in SSA countries, particularly in resource-rich countries, indicating that governments' fiscal policy responses are expansionary during economic upturns and contractionary during recessions, which may aggravate recessions and worsen debt situations across SSA. For robustness, the study compares the results with emerging and developed economies. The results indicate that in advanced economies, public debt is sustainable and that fiscal policy response is countercyclical. The research and policy implications are discussed.     

When Less is More: Consumers Prefer Brands that Donate More in Relative versus Absolute Terms

Marketing Letters - When trying to make a good impression on consumers through charitable giving, is it better for brands to maximize the overall dollars they donate or how much they give in...     

Dynamic mean–variance problem with frictions

Finance and Stochastics - We study a dynamic mean–variance portfolio selection problem with return predictability and trading frictions from price impact. Applying mean-field type control...     

To sell public or private goods

Review of Economic Design - Traditional analysis takes the public or private nature of goods as given. However, technological advances, particularly related to digital goods such as non-fungible...