Why has Income Inequality in Germany Increased From 2002 to 2011? A Behavioral Microsimulation Decomposition

This paper proposes a method to decompose changes in income inequality into the contributions of policy changes, wage rate changes, and population changes while considering labor supply reactions. Using data from the Socio‐Economic Panel (SOEP), this method is applied to decompose the increase in income inequality in Germany from 2002 to 2011, a period that saw tax reductions and a controversial overhaul of the transfer system. The simulations show that tax and transfer reforms have had an inequality‐reducing effect as measured by the mean log deviation and the Gini coefficient. For the Gini, these effects are offset by labor supply reactions. In contrast, policy changes explain part of the increase in the ratio between the 90th and the 50th income percentiles. Changes in wage rates have led to a decrease in income inequality. Thus, the increase in inequality was due to changes in the population.     

The temporal dynamics of technology promises in government and industry partnerships for digital innovation: the case of the Copyright Hub

What is the expectation work required to ensure that technological innovation initially supported by government funding is subsequently taken up by market actors? This paper explores this question by applying a linked ecologies framework to the study of the Copyright Hub, a digital infrastructure for Intellectual Property trading developed in the UK. We draw our analysis from a five year long study, including forty-six interviews and six weeks of participant observation. We found that expectation work in policy-led infrastructural communities entails (1) leveraging technology to reshape the position of actors in the innovation space; (2) exploiting the different temporalities of expectation work in allied ecologies and (3) mobilising ‘slow’ expectations to provide momentum to the newly arranged innovation space. Highlighting difference in temporal dynamics for the various partners involved as a ‘hinging’ factor, our analysis contributes to clarifying the complex temporal alignment of policy and innovation processes in technology projects.     

Hours risk and wage risk: repercussions over the life cycle*

We decompose earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks, modeled as innovations to the marginal disutility of work, and labor supply reactions to wage shocks, we formulate a life-cycle model of consumption and labor supply. For estimation, we use data on married American men from the Panel Study of Income Dynamics. Permanent wage shocks explain 31 percent of total risk, permanent hours shocks 21 percent. Progressive taxation attenuates cross-sectional earnings risk, but its life-cycle insurance impact is much smaller. At the mean, a one-standard-deviation hours shock raises lifetime income by 11 percent, a wage shock by 13 percent.     

Testing hypothetical bias in a framed field experiment

Hypothetical bias is tested based on inter- and intra-respondent comparisons of choice behavior, applying a hypothetical and real choice experiment. The inter-respondent comparison commonly applied in the environmental and agricultural economics literature consists of a control group of buyers who are asked to hypothetically choose between conventional and organic beans and an experimental group of buyers who are endowed to purchase the same beans using an identical experimental design. Hypothetical bias is tested by comparing inter- and intra-respondents’ (i) hypothetical and real choices, (ii) preference parameters of the estimated choice models related to hypothetical and real choices, and (iii) hypothetical and real willingness to pay (WTP). Choices in the experimental group are highly consistent when switching from hypothetical to real choices for this study's homegrown goods. However, after being endowed, the price sensitivity of lower income households drops, suggesting a house money effect. WTP derived from actual purchases is higher than WTP based on hypothetical choices, indicating a negative hypothetical bias, but differences are only significant in the case of the inter-respondent comparison. Actual prices paid by respondents in the field experiment appear to be considerably lower than the estimated WTP values and yield a mixed picture of hypothetical bias.     

Organizational buying behaviour for perishable-food packaging in grocery retail

This qualitative study investigates the structure of the buying centre, the buying process, and the factors that influence buying decisions for perishable-products packaging. This empirical investigation is based on the case study of a major Quebec food retailer. We show that the purchase of packaging changes significantly depending on whether the product is considered more or less strategic for the organization, which determines the required level of packaging customization. Buying centre structure becomes more complex as packaging customization increases. Given the multi-functionality and the interdisciplinarity of packaging, we propose a multi-criteria analysis grid to improve buying decision efficiency and to streamline communication between the various levels of the buying centre.     

Share repurchases and accounting conservatism

Review of Quantitative Finance and Accounting - The prior literature indicates that financial policy (e.g., payout policy) as well as accounting policy (e.g., conservatism) can be used to address...